KAR Auction Services, Inc. (NYSE:KAR) Q2 2022 Earnings Conference Call August 3, 2022 8:30 AM ET

Company Participants

Mike Eliason - VP, IR & Treasurer

Peter Kelly - CEO

Eric Loughmiller - CFO

Conference Call Participants

John Murphy - Bank of America

Bob Labick - CJS Securities

Bret Jordan - Jefferies

Daniel Imbro - Stephens

Operator

Good morning, and welcome to the Q2 FY2022 Earnings Conference Call of KAR Auction Services, Inc. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Mr. Mike Eliason. Thank you. And over to you, sir.

Mike Eliason

[Technical Difficulty] 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.

Let me also mention that throughout this conference call, we will be referencing 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 we issued yesterday, which is also available in the Investor Relations section of our website.

Now, I'd like to turn this call over to KAR Global CEO, Peter Kelly. Peter?

Peter Kelly

Thank you, Mike, and good morning, everybody.

I'm delighted to be here this morning to provide you with an update on KAR Global. During today's call, I will provide you with additional information and detail in three areas: first, our capital allocation strategy following the completion of our recent divestiture of the ADESA U.S. physical auction business; second, our view of the current market factors that continue to impact the automotive industry; and third, our second quarter performance and outlook for the remainder of this year.

Consistent with our earnings release last night, the results that Eric and I will discuss here this morning generally excludes the divested ADESA U.S. physical auction business, which is treated as a discontinued operation in our financial reports.

And as I did on our last call, I'm going to speak about our business in two segments, a Marketplace segment, which we formally call the ADESA segment, and a Finance segment, which we formally called the AFC segment.

To begin, Q2 was an important quarter in the history of our company as we completed the divestiture of the ADESA U.S. physical auction business. This was a significant and historic milestone in KAR's history, and a transaction that will be transformative for our company, our customers, our employees, and our stockholders.