KAR Auction Services' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Before Jim kicks off our discussion, I would like to remind you that this conference call contains forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may affect KAR's business, prospects, and results of operations, and such risks are fully detailed in our SEC filings.

In providing forward-looking statements, the company expressly disclaims any obligation to update these statements.

Also let me mention that throughout this conference call, we will be representing both GAAP and non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the applicable GAAP financial measure can be found in the press release that was issued yesterday, which is also available in the Investor Relations section of our website.

Now I'll turn the call over to Jim.

James P. Hallett

Great. Thank you, Eric, and good morning, ladies and gentlemen, and thank you for joining us today.

Really 3 topics that I would like to cover. First, I'd like to give you an overview of our first quarter performance outlook on the wholesale used vehicle market. And then following Eric's comments, I would like to come back to you and give you an update on the OPENLANE integration process and how that's going.

First taking a look at KAR's first quarter performance, KAR was able to achieve 5% revenue growth and all of our segments were up over last year. We continue to maintain very strong gross margins, and Eric will provide more detail on that in his commentary. And I believe that the company is well positioned for growth. We've done a good job of controlling our direct cost and holding our SG&A line steady other than the SG&A costs that are associated with the integration of OPENLANE.

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