IAA - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the IAA, Inc.

First Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Arif Ahmed, Vice President, Treasury. ahead. go Please

Arif Ahmed

morning, for Good Call. thanks joining for Thanks, First everyone, Quarter today IAA's Conference Fiscal us Cole. and XXXX Earnings

Speaking to Financial Chief Vance today formal remarks, Vance Kett, and open their are and the will President; call have Executive made Johnston, After Officer. Officer Chief we John questions. and our John

forward-looking strategies safe certain of statements meaning financial this call during Before I like would made pursuant anticipated made we are of Reform of our to our and comments Private and plans, to begin, performance the Act and Securities Litigation constitute remind harbor you that within the goals regarding XXXX. and provisions the

report current statements. IAA's press Forward-looking are results cause the and and with these year our in forward-looking actual expectations today to annual Those referred section for the differ update to XX, are today not XXXX. that issued call, statements Risk on IAA undertake as to SEC date statements are from does February materially important Factors the XXXX, obligations any The could made are in to management's and of statements. factors the XX, such December ended this assumptions in on of forward-looking and risks based release subject and on Form XX-K uncertainties filed

GAAP most www.iaai.com. now the copy comparable A John. this Relations of be by Finally, to of Investor obtained issued will the John? directly speakers will page today. may is turn A the at website visiting press to today's of refer or IAA's non-GAAP over release press release call reconciliation the schedule call. the the I financial to measures on available certain financial adjusted non-GAAP in measures measures

John Kett

about to We the for a talk morning, Good you generated quarter thank initiatives. sales [Technical going Difficulty] pleased with start brief first our Arif. to quarter. We year. Thanks, X% strong for quarter a before very couple comments call. I I'm our the were the joining us on make all for organic and

first came for assignments, we volumes As good we prior the noted of in with XXXX unit. call, in revenue quarter sold per and our momentum

quarter pace. continued revenue continued each increase steady at assignments per unfolded, As a the to month unit and

represented the month the fact, began. strong to growth the industry Along Buyer year. be the that from seen In another that to we continues over our has BDT unit first experienced year-over-year past have Digital of the we in our to increases assignment pandemic tailwinds, revenue March key generated driver benefits since Transformation. results with significant contributed per

me our let to initiatives. turn strategic now So

make seeing our to continue good are progress We and positive plan. from margin results expansion

remain on spring, all discussed our of call, track. of Optimization we turned Process the to plan. Improvement completion other Branch and last with BDT Pricing As our the the elements Optimization, has focus last Towing our on

in towing by Our service restricting improved We're is markets of transitions several end terms dividends, these beginning on and of and costs. to consolidation complete to in target XXXX. pay resources of the both lower

Optimization both progress Improvement. to Branch Process now good also We initiatives. the made Shifting on other Pricing in quarter and

progress initiatives the making payoff of with our support in with to that excited be we our to offering. continue We service are broaden loan

financial quarter, our and quarter to our XXX platform, lenders we During the institutions payoff over ended added first we loan with new the portal. X,XXX over on

in our expanded DDI, registration electronic our title out building expertise footprint Indiana. both Michigan with and also We and national processing

loans of vehicles market, be loan the pre-crash with differentiator, of equity unequaled capabilities payoff, continuing their increase an in exceed are the given the size. which continue percentage negative important that in particularly Our to

using days payoff. Our customers to significant in of loan are up cycle in XX continuing times and situations, see some reductions, to

successful. buyer we've expand product and offerings, be of and and our our to we the global very buyers, enhancements expansion to growth continues tools continue made that For our to network

and with first buyers the digital basis. international making domestic from search quarter-over-quarter partnerships, that we This optimization marketing broker we and network is growth great to and and a are engine both buyers to strides reinforces on quarter, alliance both our year-over-year our attract traditional XX% buyer over by grew market XX% sequentially platform. and During the global

European also make our in a supplier good building an We continue network, our in alliance access progress strategic key market. out buyers which most to CAROMOTO, experienced providing that we export growing is in in recently announcing the element to based market added Eastern Moldova,

to features vehicles. and confidence We Key platform, to also merchandising details, Engine IAA and creating additional value-added Image. vehicle IAA our U.K. tools purchase give buyers introduced X Start bid These greater new will

in We also in platform, we after reception received that positive our the merchandising year quarter U.S. the Interact, expanded Canada the in last

at ahead expect as we industry of tailwinds to make look that benefit unit progress in continue and we well continue year, strategic to remainder the to to our we As per made have the initiatives with revenue trends. support strong the as continue

perform first continues also year-over-year the by to volume driven part business in growth quarter, volume. in in dealer growth with double-digit noninsurance well Our

noninsurance we Our new to has and base nice opportunities. additional pursue prospects will and attractive both continue growing identifying business this of in our a done team closing job space, and

with will Vance in for revenue growth ongoing respect EBITDA for to to the in are detail, year. pandemic, As position, provide discuss also more and our a we despite the guidance expectations

XX% range and year, the expect in organic we EBITDA to XX% organic growth XX% of growth XX%. adjusted the to For of revenue

also the are partially both aforementioned from overall, these top negative volume customer. additional shift customer a quarters wins of Our expectations shift. volume date X strong differently, from incorporate but incorporates currently top a will included impact of expect to offset away some a that negative timing volume known expected positive, individual we The shifts and to XXXX including which shifts, a

and revenue our progress in in we performance of unit strong very forward driven. per are as our drive higher going well well continued enormous expect also market believe expand IAA improvement and continued and position. We miles as has I enhancing offerings, to improving levels positioned made trends vehicles

minutes within to It IAA, initiative Inclusion honor Action within advance to this CEO-driven important the on a focus close, business earlier the the I So Pledge, and for largest that CEO before sign in inclusion inclusion to coalition my continued equity diversity, on are I a serve us equity seller buyer year was putting also We've also another We create vigor these also want will involvement with Diversity strong we program each and our organization. greater diversity spend IAA addressing customers. established few of with and and workplace. formal and within employee only across that inclusion different satisfaction, diversity the the our transparency allow to better to issues X with allow not and us focus, but areas firmly believe organization. from

over closing, all all Vance our our dedication And in thank and I to turn outlook teams want to now IAA. So and results for in review the work detail. call of their will Vance? more to to I hard

Vance Johnston

just from results. adjusted press Thanks, and on results on when key John. Please financial for fiscal see I for details and more first discussion touch will outlook on more highlights our non-GAAP release performance our today's methodology calculating XXXX. non-GAAP our today quarter before performance providing our focus our my detail on financial

quarter million a XX.X% increased in Service in currency, vehicle quarter to XX.X% million increased revenue, which increase of prior vehicle quarter, to the For consolidated period. $XXX.X increased year XX.X% increased XXXX. and $XX.X in prior XX.X% XXXX, increased the sales of to the total million foreign of first first consolidated million revenue compared to XX.X% as from compared period. loss fiscal X.X% the revenues XX% revenues than decrease excludes more per impact $XXX.X The Organic compared to offset to the XX.X% ratio year volume. to $XXX.X to the the

level $XXX.X SG&A plan. year. year million, with noting revenue even prior prior expenses in achieved Adjusted of higher of quarter year. Looking also $XXX.X higher to an from to and in as XX% for due due the from period, higher expenses $XXX million were compensation-related of much during to per first a to as quarter as of fiscal of prior It's to a from $XXX.X our Gross in revenue compared benefited were the increased fiscal points costs. from million were million percentage increase higher a volume. margin a basis improvement million this Gross unit in geographic compared XXXX. margin Revenues mix vehicle gross purchased million the accounting margin of quarter, increased providers expansion vehicles increased SG&A international of benefits vehicle at increased XX.X% XXXX. profit model unit, in sales revenue both XXX well our by revenue higher performance. consignment quarter $XX.X to offset worth by lower model one $XX to our the International $XX.X compared our of the purchased to Adjusted million switched driven primarily we the that per EBITDA the mainly U.S. $XX.X million from segments first by in XXXX. fourth

floating organic impact million in income fiscal was XX.X% rate of the by debt. The income compared effective fiscal The XXXX. EBITDA was million of $XX $XX.X our increased Adjusted in to million of the the $X.XX rate by Interest year. or compared first per rate Excluding by share currency, million million the in $XX.X fiscal expense to XX.X% rates interest $XX increased the XXXX. XXXX. to XX.X% interest in versus Net first $XXX.X tax quarter foreign declined to fiscal the primarily our to first The or net million was on share $XX.X for diluted of million term per XXXX. $XX.X $X.XX quarter lower increased $X first of loan quarter on adjusted million to driven decline by X.XX%. XX.X% from quarter diluted prior

turn the in cash ended total the in at in $XX.X to was to a with with is million nearly flows. by early were quarter of below Turning of which investments ratio X.Xx, and a quarter We and a the part sheet of land full technology. increase compared level quarter X.Xx for prior increased our driven purchase expenditures million the a year. leverage in $XX.X Capital spin. $XXX.X the time the the liquidity million and balance The

cash we period, million first $XX.X flow of fiscal free the to XXXX. $XX of the generated million in quarter compared During

outlook now our to for Turning fiscal XXXX.

we John are an outlook fiscal As XXXX. mentioned, providing for

XX% adjusted of from expect to fiscal $X,XXX.X from to revenues XX% organic million to revenue the increase XX% we adjusted increase For to organic $XXX.X XXXX fiscal year, EBITDA and XXXX million. XX% our EBITDA of

benefits discussed, remain realize as expect of supportive which As the incorporates industry to trends. unit per revenue initiatives as strategic this strong from well to continue we tailwinds, outlook our

volume these our also which customers. a including John additional As as well as top expectations from wins, volume including from known losses top partially volume reviewed, losses be of gains, offset by X will include customer, known some

of rate shift the expect run we XXXX. the occur volume this of these expect to shifts and in in to net be quarter months, over We a at fourth few next full

a consisting $XX existing term we be our secured quarter senior $XXX and on facility. $XXX million For fiscal the our subsequent credit to and XX% also for credit XX.X% range our end, and amortization April to noted April A executed loan million. million of tax revolving to effective in expect as XXXX. range new to we both of XXXX, million facility term a on the rate $XXX in be credit depreciation loan maturing a replaces today, million $XXX in $XX facility, And release press to million and B XX, of XX, This revolving

with liquidity to We strong up will debt rate on rate the additional for basis after that, attractive grid us market were support point leverage. next on interest capitalize the the conditions which rate depending reduction we that tied This to interest pleased able provides and potential XX.X X terms and execute a an future to with our to growth. facility rate basis reduce to this the transaction, for pricing points by floating on XX in quarters are

both approximately year, to as approximately includes the balance. we of debt full a million million, new write-off of result of lower fees which due On the XXXX rate expense for capital savings we basis, a cash noncash a financing a For lower of $XX in structure $XX expect remainder as to deferred well million. of approximately $X.X our interest expect

we have We With offering that, we will that up principal the this to elevate questions. comments on the open very experience. the improve seller payments want of buyer in are reiterate our XXXX. proud made In closing, no call to we'll progress and new and have mandatory competitive required I facility to Operator? John's

Operator

question first Daniel with our today Imbro Instructions]. Inc. [Operator come from And will Stephens

Daniel Imbro

start Congrats the to on year. the

John Kett

Thanks, Daniel.

Vance Johnston

you, Thank Daniel.

Daniel Imbro

the or has quarter cadence want from cadence -- the backdrop. I you I start color Vance, with bit to more bit last sequentially. for and lap miles-driven a on volume know provide assignment volume then just a recover? John stepped the It can how begin both said March on of maybe growth? Can down up April have talk was through to wrapped about easier and as And you trended we week, here April comps good assignments. assignments

Vance Johnston

is Yes. Daniel, Vance. in sure, as go I'm first add I'll will well. and this then John,

miles So quarter more we traveled from a levels. a certainly first pre-pandemic yes, overall slightly the of of X% seeing somewhat of to is relative in see assignments relates traveled of still the it kind through the the -- vehicle U.S. we're continue of lot. from for kind pre-pandemic pickup that in It's range is year, to continue down not the levels, down to increase kind vehicle as to What but miles

to see. continuing that's so And of we're what kind

year. expectation are We're continuing open restrictions better in that to to more place. the lifted That's see Now to Internationally, we continuing throughout and be the of markets the restrictions rest as up. expect get

traveled vehicle more assignments bulk in U.S. our by and But as know, miles internationally. So down far the are the of business you is

John Kett

Yes.

think said well, Daniel. I Vance it

we assignment levels. expect result to going in to continue greater result think which improving reduced or do which limited, travel, I to will is in restrictions be miles that

Daniel Imbro

Yes. Vance, That's margin And helpful. the moving side, Got then margin a gross to service nice it. gross leverage. really

byproduct basis playing? Is just over Can of core think what XXX a margin margin up drove out maybe revenue that parse points unit? that per Is that you year-over-year. leverage? I your expansion stronger

Vance Johnston

on the it. really is of primary strong per think, Daniel, really, driver that be revenue Yes. No, to I going unit. hit you The

And part platform. Buyer we Digital so going as to to auction of biggest that. that, away, and But far the the an in of see element Transformation by and be impact of that's, to addition all-digital cost to moving continue our reductions the

as certainly So is also well. that contributing

Daniel Imbro

that. And on quick follow-up then just a

assuming kind assuming through of the core remainder in remains of your it the year? you per Should that you're unit stronger noted revenue to we gross You interpret margins elevated. that raised guide assumption as the

Vance Johnston

think and based minds. kind also unit seeing in revenue do of really we're XXXX. the that, index, higher that continue given But are. done high per point, model is seeing I from to thought guidance our on in the the we we, terms which here, are we that of see used The do top we continues clearly that levels. think, expect per least and per there's used unit, stay price haven't benefit and those we largest driving car see expect remainder at elevated to trends that an sustainable But expectations higher Well, the made is revenue to our Manheim prices. in of elevated for throughout our And we've at higher. we go that to all-time believe the in all by information example, we've at of And one, the car own we unit, on, we're things anything terms revenue quarter and what of this as changes we about we

Operator

question Kennison from Baird. with Craig And will come our next

Craig Kennison

that Just last per on unit. revenue related follow to to point up

on you are You've face do remain is it But seen these think some we rates little difficult or phenomenal partly a a these growth that year-over-year your as think that comps sustainable? rates you Or could bit? growth might guidance elevated you up flat be such basis. more of

Vance Johnston

seen, other that's based continuing XXX all-digital of as then more and as things to due trends impact as done we're that, what first and growth to platform. such I'll what talked bigger say we've the and percentage on think part that it's contributor. said is doing in do global set things from Feature the things John merchandising significant; our is we tools internally, has this are largest Tour; -- of to color format; I that we've really macro-driven. seen the go is completely add believe we've We such due coming which our Interact the buyer that an Having done point, as -- may that things to well, things that, buyers with the bifurcate that providing internally View, we've as tough is the been to going that percentage innovation, we've in and at that auction information want we're network, about think

have car Now than for do an seeing our and we think impact more. we done from an do drive We change going think that we've because, are for that elevated it has results. operating less it's than point, the if kind all this prices probably think willing used -- that, to we're sell car to better at that's considered, internal of they certainly things what people can impact. pay be model more more things And to less a

come So over at read expect what gather, don't used information time, the some point see very XXXX. index and the one will in and happening from We much that car price would in that time. down we see necessarily we

high it levels. to see expect a very We elevated

Craig Kennison

just And That's on that. up follow really to helpful.

going that within you in impact platform If you of that on the to make Can the on stack just year. same are again magnitude isolate kind and last you charge happening the of gains the innovations success allow on Are year further in control forward? there that that many the fee? things the extra ARPU your and

John Kett

Yes.

the add to feature and able capabilities continuing are platform. to we're charge We that for to

do sellers. And the to the to, remarks, my charge services and to for But offering, I've it of continue in seen described it's So the of terms not, just both macro be at pace in we can was and to believe as or be we to our that broaden Whether products. we remains going that do to some can we extent for things grow. we said that, our continue Vance buyers factors. that service the the

we can we way. So ARPU sustainable grow in continue think a to

Vance Johnston

to just add And John what to saying. was

we The And of our buyer network. of we that progress the certainly, a of believe gain opportunity to lot a a of -- other additional we've is large global there, to it we lot believe growth thing still a have lot but is, contributor there. made

And so and the well. more units that as proceeds up to bidders obviously more to and unit, unique continues per bidding platform, continue buyer we they're more more add on as global unit network, drive bidding per grow times, to revenue that bidders

Operator

Labick with come And Bob our next question will CJS Securities. from

Lee Jagoda

for Lee Bob It's Jagoda actually morning. this

Just a very cars, a noninsurance talk What how large just anything a or repos maybe you're dealer most pandemic? or bit whether attractive, a of Obviously, And couple for during market. then Can if non-insured it me. little your progress? about you changed little the cars. attacking it's which you areas end-of-life find bit

John Kett

like or rental, digital our of features their opportunities. in have, that to Yes. that Thanks. whether which happened all help the We in And was us I of was kind some lower in capitalize enormous market. the the an think we've it's build on gave pandemic the through to the really Still car one that, the market. that. growth we on platform, growth embracing. in you disruption the -- cars in areas in to put those continue really things the there's merchandising The believe do dealer sellers the whole noninsurance just they're and market, fleet we of some in We end and there that they opportunity really described, customization built

nice that think we continue that again, So yes, continued above today. it's we it's opportunities on. we and growth. some see where focus at we've to to had grow And area business beyond an And

Lee Jagoda

then me. And for Got one it. just more

of has that or the for goals all And at your changed how been last have has at So year, given volumes land? your the reduced basically down your land around efficiency the volume philosophy expansion any impacted yards? your the

Vance Johnston

answer that Yes. This question. have is an I Vance. to

pointed cost we So if we you about the structure, -- out before our think this and in I think yards.

labor. So that certainly, a is portion of

the hours. so when was hours of, align of we beginning just the talked kind we level XXXX reduced ourselves employees. reduced as have at certainly with appropriately reduce kind We assignments, kind pandemic We more of And volume as to kind that coming we've of of the reduced had about, of didn't in. we in

ability rent the think we're of We So the very that thing that, we of the didn't an of clearly, just the was a more costs we fact important of that. of we some have -- that nature. outside fixed But reduced if And hours. U.S., kind and kind in we of to a rent is cost have do. think to flex you reduce the employees and other proud rent, are about

of then deleveraging costs, if the unit. So kind as of one kind there's and is costs variable clearly not tow are the or other on will. you to that, flex And much ability tow

you're your towed, to tow that So cost that with not because flux as unit have down, completely units go paying helps. that if

John Kett

land, add just on. growth, we about in We and growth on do decisions. would take I the our customers' a land view think making And longer market

sure got our So to we support we've capacity continue term. make to long sellers the for

Operator

And with from Truist. next Stephanie will our Benjamin question come

Stephanie Benjamin

and I commentary on both negative. touch the shifts positive wanted about X to from in customers, volumes some just top

I occur as But love think in understanding hear little can on period. shifts. back a behind these you bit, as story that to the throughout a some maybe the is year the much I'd of give, shifts given

those this do have just been the experience with made same improve top the with do the with has on and over the view as And insurance something now? investments shift front, you year to have Just particularly, tools the -- that, the volumes that the the carriers is side to course of X the on that away that overall positive well customers. the that on of the flip

So of as as driving you these what us? is best some think moves can tell do you

John Kett

Yes. Stephanie. Sure,

their at look this their metrics. before, So making They differently. portion at as we've They operation claims criteria of talked different have decisions. for own look about carriers

good last That I had about one some that long improve in to away. getting that the really being we really of good carriers, said, in market business together. we we're said And that And comments, as a occur. I about to as positioned so the our number swings in the there services I we've to But of and talked move years, traction over feel volume small. again, are again, we continue And but and with made of term, believe couple suite a we the gotten position. we be -- put my big -- are products that in have to decision going well -- very

So at yes, -- is company it differently. really very a each of kind it's this decision-making looks --

Stephanie Benjamin

Great. the helpful. I you're lot maybe Absolutely. And expansion? would to Can then be best broad-based? expansion to Europe. maybe follow-up the a called a international speak your opportunity out, can Is geographic just about you commentary. you it in where some You think, particular seeing And regions commentary an of any Eastern

John Kett

terms Sure. fairly -- in is of Yes. buyer broad-based No, growth. we're broad-based. talking is It growth, about it international our buyer and fairly

Eastern grow -- in We improve be and strong West and those South East, And Europe, the markets. Africa, continue then continue Central to Middle America. are all to

SEO that tools over I deployed has the around strategy, evenly. think point I our really this think, Again, digital our another. drive one fairly to So we've and I helped growth wouldn't acquisition

Operator

And our question from Exane with Bottiglieri Paribas. BNP will Chris come next

Christopher Bottiglieri

course reasonable you the volumes a the with pretty seems and then as the unpack It a estimate. of to purchased you -- about guidance is share Is losses? CAGR, Or just strong it bit. specifically revenue right you was going do on fair stay now. the that FX to seems to think think like how like volume are over of the year assume helpful because move like worse vehicle the like count year? I pricing a get the throughout forward ARPU you hoping It rates mix could does net basis like pre-COVID little that X-year that

Vance Johnston

Yes.

this is Chris, speaking. So Vance

guidance by So we're providing not quarter.

you to elevated of intact remainder talked sense for the we So We -- unit to we about, elevated do help. some stay what just as of -- I revenue per -- levels XXXX. give expected do expect

impact. of of did those. will talk that the shifts of and impact downside share be the So biggest the We positive of through kind net kind kind

if of some of to the of of coming the considered obviously, bit volume, get and specifics And have would little the XXXX pandemic of really net little kind things the quite to all -- pandemic can't compare kind we bit that and of that, So a were And volume then out ARPU XXXX, you'd then have into well. as impact. due equal, versus happening a movements share a but to around higher a less a by XXXX of shifting bit with amount significant some then what's some the you in have volume XXXX. volume and by given the you

Christopher Bottiglieri

Got you.

to helpful. That's then just costs. Okay. really get towing sense a for And wanted

I offset a think us have take know that? just would what kind for a own now. initiatives inflationary are very costs what that to give of optimizing those sense I if hoping costs this I And to two, true? earlier, Is a you sense of out mentioned like can you those costs? terms Is you that but you're seeing? then helping you in optimization think there? are like you're that inning big plan And could of you are us give your towing.

Vance Johnston

Yes.

probably will John well. then want and in start, I'll as to So jump

there's Chris, some and things are well within anchor which a underway. as excessive have, there's the Towing model model such it's not of Obviously, there, but What redistricting, not your costs. seeing towing stretch. out a other so from an we're of not one, going a about of initiatives we any variety by to from Those inflationary Optimization are to ton initiatives. point, markets, more that And we going away -- talk distributed --

is -- the and related the inflationary, some to with degree some more on remain way with And this related it. would the to to is I benefits And some, of the comfortable that to feel then we so there those track and describe those, is we outlined. timing degree that offsetting kind that we

John Kett

to And to it. just Yes. add

of tow cost. component when about prices think that think fuel biggest probably I the you cost, are

prices it's structure. So we extent the really element -- costs. change, variable that the cost could to impact fuel tow see in that some biggest to the But is

Operator

next with Jordan our question come from Bret And Jefferies. will

Bret Jordan

are Or outlook, impact revenue any is pretty higher vehicles? mix organic the purchased that and we the apples-to-apples? it's from On there much lapping of

Vance Johnston

there a consignment customer -- the agreement is because XXXX, in in from markets. to impact abnormal So customer to model a model, an switched Bret, alluded those their quarter we that a is did not fourth that have that went of we an purchased vehicle which international

have And XXXX, effectively of in haven't so the we lapped so didn't first that. quarter we that

So a from standpoint benefit we that. revenue are of because getting some

Bret Jordan

I percentage those the those maybe question, at Could talked you your from about of rate Okay. foreign from of volume the foreign about growth global the buyer And the then that buyers impact are bids talk coming network a guess markets? you maybe program. or all

John Kett

to I about past Bret, we've and talked in Well, -- continues the be strong. grow it the think, again,

We specifics domestic nature of the haven't our of to export because are vehicle. of then talked about some who going the buyers

really truly is trying isolate difficult. what's that to we're international demand So

don't misstate buyers growth to But needless we it. want that growth So our participation. commensurate a relative international we that to have to seen say to in and their volume

and buying strong. So they really are bidding

Bret Jordan

cars the talk Okay. the mix. more average you of Could I ARPU the drive run about than last it's And that average? maybe your one question. and I'd economics portfolio what I you in higher in versus guess noninsurance vehicles in just assume guess or noninsurance, see

Vance Johnston

or the board, getting But maybe that are really seeing you more of that different It rental donated, -- I noninsurance not you that mileage we're that things side, in increases have in may versus be cars, includes and to cars not that bifurcate of good noninsurance of that are are not, higher have because to dealer that where we've are products necessarily they're things cars the have not because mean right, think end noninsurance nature that's going vehicles, damaged I it's includes level. to -- high really of some on skew that between are across noninsurance vehicles going seen on between like insurance. question, proceeds right? your to all, cars donated kind have interesting we're ARPU kind but -- kind life. may are of Bret, less but lower the and

noninsurance. that the seeing So is revenue insurance proceeds for we noninsurance. can for we're higher across it What sure per across higher board really varies and unit and say

Operator

Instructions]. [Operator

Prestopino Gary Research. from come Barrington will question with next Our

Gary Prestopino

When up that base, Is the said questions total is that XX%? correct? of base, international cited was XX%. Couple the up here. you Or buyer you buyer

Vance Johnston

That's XX% international on a over and network sequentially up basis. XX% year-over-year is buyer quarter-over-quarter

Gary Prestopino

translate total that has increased So that how year-over-year? buyer does your then? much base into How

Vance Johnston

that. disclosed we've that think don't I

our know the percentage much -- disclosed meaningful and international composition So the more we're our because meaningful total that of base. buyer of don't seeing. obviously, becoming time. growth It's international that we and our buyer base or I base is international over buyer But

year-over-year. it's example, XX% For grown

really strong, it would think continues really I not to year-over-year to fair and our base domestic that So grown buyer really, growth. but be it's have really, healthy XX% say

Gary Prestopino

out -- the that cars and base Is on also less cars buyer a international that this they demand by export? there's to get just buyer on hands lot there the fact the side, could be their driven can't

Vance Johnston

dealer to the citizens the looking of of be think purchase think OEM the No, every think for Yes. more some people for these areas. disposable believe network that's an we I sitting of on to economies populous automobiles yet corner for to -- more countries, you income not sitting if some are the -- There's that's their of yes, are, right. -- necessarily that or in They're vehicles, about contributing developing. even some We country. of factors their close developing there's the these

them opportunity that drivers for the reasons that one this developing the cars, And and refurbish why economics on to in the cars of do road is works so back for get get in to and out which the becomes countries these low-value, beneficial a an way buyers, it a developing which as costs. offsets And can makes repair to sell the great markets, these these they buy damaged these are it mileage, and vehicles for in arbitrage, able well. the shipping costs so that thing then society vehicles, is be higher that because those cars

Gary Prestopino

Okay.

Just here. more a couple questions

You ended this can mentioned quarter. or change started Year-over-year, sequentially idea you maybe some assignments, level you inventory us but about you of talk last the inventories as of as didn't quarter and year-over-year well? percentage give

Arif Ahmed

X.X%. Year-over-year, Gary. it's up Yes,

Gary Prestopino

Or questions. The million of is be that quarters? next in ratably quick more all going two $XX fees across three the recognized just that is refinancing, from you're then And QX? that getting to

Arif Ahmed

off. Yes. fees that old Gary, gets are the just Those from deal. written

new aren't fees incurred. those So

accounting. transaction off on get all So off those written based from get Those previous the are quarter. specific will fees this written that

Operator

the to turn back to conference this And Kett I'd question-and-answer like any session. closing the John will conclude over remarks. for

John Kett

interest a this thank you we on you, for and participation say update progress. and you continuing forward to your and have Thank morning, want look to again to Just our day. great

Operator

The conference you day. you Thank have attending has for may disconnect now concluded. today's great At a presentation. time, this and

IAA (IAA) 9 May 212021 Q1 Earnings call transcript