Health and Safety Update COVID-19
UPDATED: March 27, 2020
Dear Valued Client,
As a global community, we are navigating an unprecedented time in our history. Each and every one of us is feeling the effects of COVID-19. I want to assure you that my focus remains on the health and safety of our customers, IAA employees, and the communities where we operate. As we have consistently done throughout our history, the IAA team has come together to fully support our clients and maintain the continuity of our business. While many things are changing every day, there are a few key points I’d like to emphasize.
IAA is deemed an essential business. In an abundance of caution, we have implemented strict guidelines and best practices outlined by the Centers for Disease Control (CDC) and the World Health Organization (WHO) to prioritize the health and safety of our customers and employees.
IAA is financially secure and fully equipped to manage the potential negative implications of this global pandemic. This includes a significant assignment volume decline due to major shifts in miles driven – which will affect the entire industry. You may have been given inaccurate information regarding our financial foundation; therefore, I want to share with you with several key facts.
- IAA recently reported strong results for Q4 and full year 2019. We generated EBITDA (earnings before interest, taxes, depreciation, and amortization) of $411.7 million and free cash flow of $202.7 million for fiscal year 2019.The financial community strongly praised our results and financial strength.
- IAA has paid down debt at a consistent and regular pace since our spinoff from KAR.
- IAA has no debt maturities in 2020.
- IAA currently has sufficient cash on our balance sheet as well as access to $225 million of liquidity in revolving credit facilities, which is currently undrawn.
- IAA continues to have great relationships in the financial community and a very supportive bank group.
IAA continues to have an industry leading buyer base spanning over 137 countries. With in-person auctions closing around the county, we are proud to support an exceptionally strong domestic buyer base through our digital auction platform. For dealers attempting to sell inventory, our auctions are operating every day and returns remain strong at this time. 30% of IAA’s inventory is “run and drive”, contact IAA today about selling your vehicles and moving inventory.
IAA is monitoring critical components including state specific DMV and Title Processing Center Status. In conjunction with DDI, we are continuously monitoring the status of these facilities as they could affect our ability to process and sell vehicles in a timely fashion. We are the DMV and Title Processing Center status information resource for the American Property and Casualty Insurance Association website.
I am truly proud of how we, as an IAA team of nearly 4,000, have demonstrated resilience and a commitment to the buyer and seller clients we serve. I will continue to frequently communicate with you as I want to provide a direct line of information to our valued clients. The goal is that these updates give you the information and clarity you need to continue your day to day business.
Our thoughts are with those individuals and families affected by the COVID-19 virus. My hope remains that our collective, focused attention and swift actions will be part of a positive global effort to flatten the curve and potentially halt its spread.
President & CEO
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