This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

KAR Auction Services, Inc. Reports Fourth Quarter And Full Year 2011 Results

KAR Auction Services, Inc. (NYSE: KAR), today reported its fourth quarter and annual financial results for the period ended December 31, 2011. For the fourth quarter of 2011, the company reported revenue of $479.8 million as compared with revenue of $443.2 million for the fourth quarter of 2010, an increase of 8%. Adjusted EBITDA for the quarter ended December 31, 2011 increased 9% to $112.1 million as compared with Adjusted EBITDA of $103.0 million for the quarter ended December 31, 2010. Net income for the fourth quarter of 2011 increased 99% to $14.5 million, or $0.11 per diluted share, as compared with net income of $7.3 million, or $0.05 per diluted share, in the fourth quarter of 2010. As shown on the attached reconciliation table, adjusted net income per share for the fourth quarter of 2011 was $0.21 versus adjusted net income per share of $0.20 for the fourth quarter of 2010, an increase of 5%.

For the year ended December 31, 2011, the company reported revenue of $1,886.3 million as compared with revenue of $1,822.6 million for the year ended December 31, 2010, an increase of 3%. Adjusted EBITDA for the year ended December 31, 2011 increased 3% to $487.2 million as compared with Adjusted EBITDA of $475.2 million for the year ended December 31, 2010. Net income for the year ended December 31, 2011 increased 4% to $72.2 million, or $0.52 per diluted share, as compared with net income of $69.6 million, or $0.51 per diluted share for the year ended December 31, 2010. As shown in the attached reconciliation table, adjusted net income per share for the year ended December 31, 2011 was $1.16 versus adjusted net income per share of $1.05 for the year ended December 31, 2010, an increase of 10%.

2012 Outlook

KAR Auction Services, Inc. expects 2012 Adjusted EBITDA of approximately $515 million. The company also expects net income per share of $0.85 - $0.90 and adjusted net income per share of $1.15 - $1.20, both assuming an effective tax rate of between 30% and 35%. Adjusted net income per share represents GAAP net income per diluted share excluding excess depreciation and amortization and stock-based compensation, both resulting from the 2007 merger, net of taxes, as well as other items shown on the attached reconciliation table. Additionally, the company expects 2012 cash taxes of approximately $70 million, cash interest expense on corporate debt of approximately $95 million and capital expenditures of approximately $90 million. This would result in free cash flow of approximately $260 million.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs