IAA Inc (IAA) 2022 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for attending today's IAA Second Quarter Earnings Conference Call. My name is Jaquita, and I will be your moderator for today's call. (Operator Instructions)

女士們，先生們，早安！感謝各位出席今天的IAA第二季業績電話會議。我叫Jaquita，將擔任今天電話會議的主持人。 （接線生指示）

I would now like to pass the conference over to your host, Caitlin Churchill with Investor Relations. Caitlin, please go ahead.

現在，我想將會議交給主持人，投資者關係部門的凱特琳·邱吉爾。凱特琳，請開始吧。

Good morning, everyone, and thanks for joining us today for IAA's Second Quarter Fiscal 2022 Earnings Conference Call. Speaking today are John Kett, Chief Executive Officer and President and Susan Healy, our Chief Financial Officer. After John and Susan have made their formal remarks, we will open the call to questions.

大家早安，感謝大家今天參加IAA 2022財年第二季財報電話會議。今天的演講嘉賓是執行長兼總裁John Kett和財務長Susan Healy。 John和Susan致詞後，我們將開始問答環節。

Before we begin, I would like to remind you that certain comments made during this call regarding our plans, strategies and goals and our anticipated financial performance constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from such statements.

在我們開始之前，我想提醒您，本次電話會議中關於我們的計劃、策略和目標以及預期財務業績的某些評論構成前瞻性陳述，並且是根據 1995 年《私人證券訴訟改革法》的安全港條款做出的。此類前瞻性陳述是基於管理階層目前的假設和預期，並受可能導致實際結果與此類陳述有重大差異的風險和不確定性的影響。

Those important factors are referred to in IAA's press release issued today and in the Risk Factors section included in our annual report on Form 10-K filed with the SEC on February 28, 2022, and in our quarterly report on Form 10-Q filed with the SEC on May 10, 2022. The forward-looking statements made today are as of the date of this call, and IAA does not undertake any obligation to update these forward-looking statements.

這些重要因素在 IAA 今天發布的新聞稿、我們於 2022 年 2 月 28 日向美國證券交易委員會提交的 10-K 表年度報告和 2022 年 5 月 10 日向美國證券交易委員會提交的 10-Q 表季度報告中的「風險因素」部分均有提及。今天所做的前瞻性陳述截至本次電話會議之日有效，IAA 不承擔更新這些前瞻性聲明的任何義務。

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

最後，在本次電話會議中，發言者將提及部分調整後或非公認會計準則 (non-GAAP) 財務指標。非公認會計準則 (non-GAAP) 財務指標與最直接可比較的公認會計準則 (GAAP) 指標的對帳表可在 IAA 今天發布的新聞稿中找到。您可以造訪公司網站 www.iaai.com 的投資者關係頁面以取得今天的新聞稿副本。

I will now turn the call over to John. John?

我現在將電話轉給約翰。約翰？

Thanks, Caitlin. Good morning, everyone, and welcome to IAA's Second Quarter earnings call. My plan today is to first provide some highlights from our performance in the quarter and then review our continued progress against our strategic initiatives. I will then turn the call over to Susan to discuss our financial results and outlook in greater detail.

謝謝，凱特琳。大家早安，歡迎參加IAA第二季財報電話會議。今天我的計劃是先介紹本季業績的一些亮點，然後回顧一下我們根據策略舉措所取得的持續進展。之後，我將把電話交給蘇珊，她將更詳細地討論我們的財務表現和前景。

Let me begin by telling you how pleased I am with our team's focus on serving our customers at the highest level, even in a period of economic uncertainty. As we reported this morning, organic revenue grew by approximately 9% in the quarter, and as expected, adjusted EBITDA declined. Despite some top line headwinds, which I'll discuss in more detail, our U.S. volume grew nearly 5% in the second quarter versus the second quarter of last year, excluding the loss from the top customer that we've talked about in the past. We are encouraged that our overall market share not only remains stable throughout the period, but our efforts to increase share also continue to build positive momentum.

首先，我要告訴大家，即使在經濟不確定的時期，我們的團隊仍然專注於為客戶提供最高水準的服務，這讓我感到非常高興。正如我們今天上午報告的那樣，本季有機收入成長了約9%，而調整後的EBITDA（息稅折舊攤提前利潤）也如預期般下降。儘管面臨一些營收方面的不利因素（我將在下文詳細討論），但我們第二季的美國業務銷量較去年同期增長了近5%，這還不包括我們之前提到的來自最大客戶的損失。我們感到鼓舞的是，我們的整體市場份額不僅在整個期間保持穩定，而且我們提升市場份額的努力也持續形成了積極的勢頭。

That said, we were impacted by several industry headwinds in Q2, including a decline in the percentage of vehicles declared a total loss, driven primarily by high retail used car prices as well as lower non-cat weather-related volumes compared to what we normally experience in the second quarter of the year. Outside of insurance, our dealer, commercial and consumer-facing volume was also soft during the period, driven primarily by the continued low inventory in wholesale markets.

儘管如此，我們在第二季度還是受到了行業諸多不利因素的影響，包括被宣布全損的車輛比例下降，這主要歸因於二手車零售價格高企，以及非災害天氣相關險種的銷量低於往年第二季度的正常水平。除保險業務外，我們的經銷商、商業和麵向消費者的險種銷售在此期間也表現疲軟，這主要歸因於批發市場庫存持續低迷。

Switching to the cost side of our business. Like most companies in today's market, we continue to experience inflationary cost pressures, primarily in towing and branch labor. While these costs -- these higher costs were anticipated, we are actively working to offset them by further driving operational efficiency and improved service levels throughout the organization. And as we've previously mentioned, we have established an operations committee of our Board -- the committee is active meeting on a regular basis and providing guidance to us on these initiatives.

談談我們業務的成本方面。與當今市場上的大多數公司一樣，我們持續面臨通膨成本壓力，主要體現在拖車和分支機構的人工成本方面。雖然這些成本——這些更高的成本是可以預見的——但我們正在積極努力，透過進一步提高整個組織的營運效率和改善服務水準來抵消這些成本。正如我們之前提到的，我們已經成立了董事會運營委員會——該委員會定期召開會議，並就這些舉措為我們提供指導。

We continue to invest in automation of manual tasks throughout the vehicle life cycle from vehicle release through towing and titling, streamlining the process to achieve efficiency gains and enhanced service levels. In one example, we recently implemented title automation in our West Coast title center and have seen greater levels of accuracy and speed at a reduced cost. And while tow costs are still elevated, we are encouraged to see rates stabilize.

我們持續投資於車輛生命週期內從車輛放行到拖車和產權登記的全流程手動任務的自動化，簡化流程，從而提高效率並提升服務水準。例如，我們最近在西海岸產權中心實施了產權自動化，在降低成本的同時，提高了準確性和速度。儘管拖車成本仍然較高，但我們對費率趨於穩定感到欣慰。

We remain focused on leveraging data analytics to optimize routing and improve truck utilization to offset higher towing rates. Identifying and driving operational efficiencies is a way of life at IAA and will continue to be a focus regardless of the economic environment. Moving now to talk about the macro pricing environment, both retail and wholesale used car prices have remained high despite some sequential moderation over the last few months.

我們將繼續專注於利用數據分析來優化路線並提高卡車利用率，以抵消更高的拖車費率。識別和提升營運效率是IAA的生存之道，無論經濟環境如何，我們都會繼續關注。現在談談宏觀定價環境，儘管過去幾個月二手車零售和批發價格有所回落，但仍然保持高位。

This provides a favorable backdrop for continued strength in RPU. And as noted, total loss frequency was lower during the quarter than in Q1. The industry also continues to feel the impact of the higher cost of fuel, towing and labor. Despite these macro challenges and the potential for a broader economic downturn, I remain bullish on the near- and long-term outlook for both IAA and the industry as a whole.

這為RPU的持續強勁提供了有利背景。如前所述，本季的總損失頻率低於第一季。該行業也持續受到燃油、拖車和人工成本上漲的影響。儘管存在這些宏觀挑戰以及更廣泛的經濟衰退的可能性，我仍然對IAA以及整個行業的近期和長期前景持樂觀態度。

While ongoing OEM supply shortages have reduced new vehicle sales, used car values remain near record highs, creating significant demand for the vehicles we sell and their corresponding parts. We continue to see secular long-term growth in repair costs as both parts and labor are impacted by increasing technology complexity. This should bode well for future long-term growth in total loss rates and in turn, industry volumes, especially if used car prices continue to moderate. In addition to the positive industry dynamics, it is important to emphasize that throughout our history, IAA has performed well throughout a variety -- a wide variety of economic cycles. While currently, we're managing through higher labor and towing costs, our primarily consignment-based revenue model helps mitigate their impact.

儘管持續的原始設備製造商供應短缺導致新車銷量下降，但二手車價格仍接近歷史高位，對我們銷售的車輛及其相應零件的需求巨大。由於零件和人工都受到技術複雜性日益增加的影響，我們預計維修成本將長期持續成長。這預示著未來總損失率將長期成長，進而推動產業銷售成長，尤其是在二手車價格持續走低的情況下。除了積極的行業動態外，值得強調的是，縱觀我們的發展歷程，IAA 在各種經濟週期中都表現良好。雖然目前我們正努力應對人工和拖車成本的上漲，但我們主要以代銷為主的收入模式有助於緩解這些成本的影響。

Our business is resilient, and our team has the experience and the knowledge to continue to navigate the dynamic macro environment. The continued execution of our strategic initiatives, particularly in the areas of technology and innovation further differentiate us. Every day, our team is focused on improving our digital marketplace through data analytics and enhanced vehicle merchandising.

我們的業務韌性十足，我們的團隊擁有豐富的經驗和知識，能夠持續應對不斷變化的宏觀環境。我們持續執行策略計劃，尤其是在技術和創新領域，這進一步提升了我們的競爭力。我們的團隊每天都致力於透過數據分析和強化汽車行銷來改善我們的數位市場。

With that in mind, let me update you now on the strategic increasing technology complexity. This should bode well for future long-term growth in total loss rates and in turn, industry volumes, especially if used car prices continue to moderate. In addition to the positive industry dynamics, it is important to emphasize that throughout our history, IA has performed well throughout a variety -- a wide variety of economic cycles. While currently, we're managing through higher labor and tolling costs, our primarily consignment-based revenue model helps mitigate their impact. Our business is resilient, and our team has the experience and the knowledge to continue to navigate the dynamic macro environment.

考慮到這一點，現在讓我向您介紹一下戰略性技術複雜性的不斷提升。這預示著未來總損失率將長期成長，進而推動產業銷售成長，尤其是在二手車價格持續走低的情況下。除了積極的行業動態之外，值得強調的是，縱觀我們的發展歷程，IA 在各種經濟週期中都表現良好。雖然目前我們正努力應對更高的勞動力和過路費成本，但我們主要以代銷為主的收入模式有助於減輕這些成本的影響。我們的業務具有韌性，我們的團隊擁有豐富的經驗和知識，能夠繼續應對不斷變化的宏觀環境。

The continued execution of our strategic initiatives, particularly in the areas of technology and innovation further differentiate us. Every day, our team is focused on improving our digital marketplace through data analytics and enhanced vehicle merchandising. With that in mind, let me update you now on the strategic initiatives on the supply side, starting with the data analytics work that delivers such significant value to our customers.

我們持續執行的策略性舉措，尤其是在技術和創新領域，進一步提升了我們的競爭力。我們的團隊每天都致力於透過數據分析和強化汽車行銷來改善我們的數位市場。考慮到這一點，現在讓我向大家介紹我們在供應方面的策略性舉措，首先從為客戶帶來巨大價值的數據分析工作開始。

With better data, our selling customers are making improved decisions and optimizing the channels where their assets are sold, resulting in higher net returns for them while translating into additional benefit to IAA as well. Unique to the industry, we provide buyers with 4 ways to bid, proxy, times, live bidding and by now. This gives our buyers greater flexibility while helping us and our sellers understand buyer behavior, resulting in maximizing the value of the assets that we sell in our marketplace.

憑藉更優質的數據，我們的銷售客戶能夠做出更明智的決策，優化資產銷售管道，從而提高他們的淨回報，同時也為 IAA 帶來額外收益。我們為買家提供四種競價方式，即代理競價、計時競價、即時競價和即時競價，在業界獨樹一幟。這不僅為買家提供了更大的靈活性，也幫助我們和賣家了解買家行為，從而最大限度地提升我們在平台上銷售的資產價值。

The IAA adviser portal, our industry-leading seller analytics platform uses the data that we gather to highlight key opportunities for sellers to increase proceeds and reduce cycle time. In another example, we collaborated with one of our largest providers after we jointly identified an opportunity to improve results.

IAA 顧問入口網站是我們行業領先的賣家分析平台，利用我們收集的數據，為賣家挖掘關鍵機會，從而提高收益並縮短週期。另一個例子是，我們與最大的供應商之一共同發現了提升績效的機會，並與之展開合作。

By modifying their reserve setting and auction channel strategy, we unlock significant improvements in their returns. This example serves to reinforce our continued efforts to collaborate with both existing customers and prospects on additional opportunities and potential pilots. We also continue to successfully drive revenue through enhancements to the seller experience. We further expanded IAA loan payoff, processing nearly $1.2 billion of transaction value through the portal year-to-date, up 70% versus the second quarter of last year. This growth is driven by greater adoption by insurance companies and increased penetration of financial institutions. Our lender coverage is now essentially 100% with 80% of all means written nationally covered by lenders with digital direct integrations to loan payoff.

透過調整他們的底價設定和拍賣通路策略，我們大幅提升了他們的回報。這個案例進一步鞏固了我們與現有客戶和潛在客戶持續合作，以拓展更多機會和潛在試點計畫的努力。我們也透過提升賣家體驗，持續成功提升收入。我們進一步擴大了 IAA 貸款還款規模，年初至今透過該入口網站處理的交易額已近 12 億美元，較去年第二季成長 70%。這一增長得益於保險公司的廣泛採用和金融機構滲透率的提升。我們的貸款機構覆蓋率現已基本達到 100%，全國 80% 的貸款機構已透過數位化直接整合貸款還款涵蓋所有已開立的貸款。

Top carriers are using the platform nationally and are realizing 12 to 15 days of savings in addition to the efficiencies of ACH transfer. In fact, with carriers who are directly integrated, we're seeing some assignments submitted to the portal and fund it in less than 24 hours.

頂級承運商正在全國範圍內使用該平台，除了 ACH 轉帳的高效性之外，還節省了 12 至 15 天的時間。事實上，對於直接整合該平台的承運商，我們看到一些任務提交到入口網站後，不到 24 小時就能完成資金到帳。

We believe our broader solution set, including unique innovations such as loan payoff, continue to resonate with sellers and provide the winning formula for IAA to deliver long-term customer value. On the demand side of our market, IAA buyers continue to benefit from an improved experience on our Interact merchandising platform through enhanced digital trust, created by our custom features, including vehicle score, engine start and feature tour, all of which promote an in-person experience while researching vehicles digitally. Further driving an improved experience IAA Transport which we launched last year, to assist buyers in sourcing and scheduling to transport of their vehicles has been a remarkable success. Year-to-date volume of IAA Transport has more than doubled from last year and Q2 volume was up nearly 80%.

我們相信，我們更廣泛的解決方案組合，包括貸款還款等獨特的創新，將繼續引起賣家的共鳴，並為 IAA 提供實現長期客戶價值的製勝法寶。在市場需求方面，IAA 買家繼續受益於我們 Interact 行銷平台的改進體驗，這得益於我們透過車輛評分、引擎啟動和功能導覽等客製化功能增強的數位信任，所有這些功能都有助於在數位化研究車輛的同時提供身臨其境的體驗。我們去年推出的 IAA Transport 進一步提升了體驗，旨在幫助買家採購和安排車輛運輸，並取得了顯著成功。年初至今，IAA Transport 的銷量較去年增長了一倍多，第二季度銷量增長了近 80%。

In May, we launched the IAA Transport mobile app, empowering buyers to shop for quotes, arrange transport and track deliveries from anywhere, all within the app. In addition to enhancing our buyers' experience through expanded or improved services, we're also continuing to expand our overall network of international buyers, which grew by 5% year-over-year.

今年五月，我們推出了 IAA Transport 行動應用程序，讓買家能夠隨時隨地透過該應用程式查詢報價、安排運輸和追蹤配送情況。除了透過擴展或改進服務來提升買家體驗外，我們還在持續擴展我們的國際買家網絡，該網絡的規模同比增長了 5%。

This growth is driven in part from our focus on improving the overall experience for our customers. Our demand side NPS score continues to improve, and we are on target to exceed our goals for 2022. We've now leveraged that framework and implemented an improved CX discipline across our entire organization. This will provide all customers, both on the demand and the supply side with a consistent industry-leading level of service. Our next initiative strategically building real estate capacity throughout our global footprint remains one of our most important commitments to servicing our clients and meeting growing demand.

這一成長部分源自於我們專注於提升客戶的整體體驗。我們需求面的淨推薦值 (NPS) 持續提升，我們有望超越 2022 年的目標。我們現已利用該框架，並在整個組織內實施了改進的客戶體驗 (CX) 準則。這將為所有客戶（包括需求側和供應側）提供一致的行業領先服務水準。我們的下一個舉措是策略性地在全球佈局中提升房地產容量，這仍然是我們服務客戶和滿足不斷增長的需求的最重要承諾之一。

During the quarter, we expanded our capacity in Central California, a key rapidly growing market for IAA and acquired our location in the Washington, D.C. area. In the United Kingdom, we opened a new facility in Bristol to provide additional coverage in the southwest of that country. These additions reflect our continued focus on strategically investing in properties where we see a long-term benefit and an attractive return on capital.

本季度，我們擴大了在加州中部（IAA 的關鍵快速成長市場）的產能，並收購了位於華盛頓特區的辦公地點。在英國，我們於布里斯托爾開設了一家新辦公地點，以擴大其在該國西南部地區的服務覆蓋範圍。這些新增辦公地點反映了我們持續專注於對具有長期效益和可觀資本回報率的物業進行策略性投資。

In addition to satisfying our ongoing customer demand, we've committed to prepare for cat season by expanding our footprint and resources in those areas at the greatest risk for stream weather. And we've completed thorough reviews with all of our clients for 2022. In Southern Louisiana, we recently expanded 2 locations, permanently converting these facilities to support IAA's long-term flexible land and capacity strategy in this hurricane prone region. While we cannot predict the timing or severity of catastrophic events, servicing and supporting our customers in their time of need is a high priority.

除了滿足持續的客戶需求外，我們還致力於為颶風季節做好準備，在溪流天氣風險最高的地區擴大我們的業務範圍並增加資源。我們已與所有客戶完成了2022年的全面評估。在路易斯安那州南部，我們最近擴建了兩個地點，並永久改造了這些設施，以支持IAA在這個颶風多發地區的長期彈性土地和容量策略。雖然我們無法預測災難性事件發生的時間和嚴重程度，但在客戶需要時提供服務和支援是我們的首要任務。

We will continue to expand our presence and capabilities across cat prone regions in preparation for any significant weather event. Lastly, turning to our international business. Q2 marked the first full quarter since we obtained full clearance from the U.K. Competition and Markets Authority for our acquisition of SYNETIQ. The integration process is progressing as planned, including cross-pollination of historic SYNETIQ buyers onto IAA's platform, greater utilization of real estate and savings in towing and technology costs.

我們將繼續在易受貓科動物侵襲的地區拓展業務，提升能力，以應對任何重大天氣事件。最後，談談我們的國際業務。第二季是我們收購 SYNETIQ 獲得英國競爭與市場管理局全面批准以來的第一個完整季度。整合過程正在按計劃推進，包括將 SYNETIQ 的老買家整合到 IAA 的平台上，提高房地產利用率，並節省拖車和技術成本。

As we've said from the beginning, the goal of this transaction was to create a long-term sustainable growth platform in the U.K. IAA state-of-the-art auction platform and SYNETIQ's capability in used parts and dismantling, expands the product offering and provides the broadest options to maximize proceeds for customers. While synergies between our legacy U.K. business and SYNETIQ are creating efficiencies, our forecast for SYNETIQ is trailing our prior expectations. Subsequent to our acquisition, SYNETIQ secured an exclusive agreement from one of the top 5 U.K. insurance providers.

正如我們從一開始就強調的，這筆交易的目標是在英國打造一個長期可持續的成長平台。 IAA 先進的拍賣平台與 SYNETIQ 的二手零件和拆解能力相結合，將擴大產品線，並提供最廣泛的選擇，從而最大限度地提高客戶的收益。雖然我們原有的英國業務與 SYNETIQ 之間的協同效應正在提高效率，但我們對 SYNETIQ 的預測低於先前的預期。收購完成後，SYNETIQ 已與英國五大保險公司之一簽訂了獨家協議。

The cost of onboarding this additional volume, which comes ahead of revenues, will reduce SYNETIQ's 2022 EBITDA. The transition of the new volume is also taking longer than expected, but our view of the long-term benefits remain unchanged. In addition, certain market dynamics in the U.K., which Susan will discuss have also impacted SYNETIQ -- we do remain confident in the long-term growth opportunity in this business. In addition, we believe SYNETIQ's market-leading focus on sustainability and the circular economy for vehicles is a true differentiator and a model for the future, given that insurance or insurance companies in the U.K. market are further embracing sustainability.

新增業務量的成本高於收入，這將降低SYNETIQ 2022年的息稅折舊攤提前利潤（EBITDA）。新增業務量的過渡時間也比預期要長，但我們對其長期效益的看法保持不變。此外，英國的某些市場動態（Susan將對此進行討論）也對SYNETIQ產生了影響——我們仍然對該業務的長期成長機會充滿信心。此外，鑑於英國市場的保險公司正在進一步擁抱永續發展，我們相信SYNETIQ在永續發展和汽車循環經濟方面的市場領先地位，是真正的差異化優勢和未來典範。

Demonstrating this importance to the business in May SYNETIQ achieved its new ISO accreditation. -- which requires an ongoing sustained improvement in energy efficiency and reduction in greenhouse gas emissions. This is a good example of IAA's overall progress on our ESG goals, which culminated in the publication of our first comprehensive sustainability report this last April. The report highlights the critical role we play in the circular economy and our sustainability initiatives push us to be more efficient and develop innovative solutions for our customers.

SYNETIQ 在 5 月獲得了新的 ISO 認證，彰顯了這項認證對業務的重要性。該認證要求持續提升能源效率並減少溫室氣體排放。這充分體現了 IAA 在 ESG 目標方面取得的全面進展，並最終於去年 4 月發布了首份全面的永續發展報告。該報告強調了我們在循環經濟中發揮的關鍵作用，我們的永續發展措施推動我們提高效率，並為客戶開發創新解決方案。

Furthering this goal, we are leveraging carbon literacy education training from the U.K. and starting to roll it out globally. Through our ESG efforts, we also remain focused on building a stronger, more diverse and engaging workplace for all our employees. Lastly, while our market-leading Canadian business has recovered more slowly from COVID in the U.S. We continue to see positive momentum during the second quarter. Although it will take some time for assignments in Canada to come back to 2019 levels, we are excited with the progress that we've seen year-to-date.

為了進一步實現這一目標，我們正在利用英國的碳素養教育培訓，並開始在全球推廣。透過我們的ESG工作，我們也將持續致力於為所有員工打造一個更強大、更多元化、更具吸引力的工作環境。最後，雖然我們市場領先的加拿大業務在美國從新冠疫情中復甦的速度較慢，但我們在第二季度仍然保持著積極的勢頭。雖然加拿大的業務量需要一段時間才能恢復到2019年的水平，但我們對今年迄今為止的進展感到興奮。

So before I hand it over to Susan, I want to thank all our employees for their continued dedication to further strengthening our operational execution and providing industry-leading customer service. We have overcome many of the headwinds emanating from today's unique macro environment, and our people are a big reason why I'm confident in our ability to adapt to any market conditions going forward.

因此，在將工作交給Susan之前，我想感謝所有員工，感謝他們持續的奉獻，進一步加強我們的營運執行力，並提供業界領先的客戶服務。我們克服了當今獨特的宏觀環境所帶來的許多不利因素，而我們的員工正是我對我們未來適應任何市場環境的能力充滿信心的重要原因。

In close collaboration with our Board, we remain focused on running a world-class operation that delivers the most innovative and effective offering in our industry for all of our stakeholders. We have built a differentiated digital marketplace with unique capabilities and will continue to create additional products and services that deliver value to our buyers and sellers. And with that, I'll turn the call over to Susan to review our second quarter financial performance and our 2022 guidance. Susan?

我們與董事會密切合作，致力於打造世界級的營運模式，為所有利害關係人提供業界最具創新性和效率的產品。我們已建立了一個具有獨特功能的差異化數位市場，並將繼續創造更多產品和服務，為買家和賣家創造價值。接下來，我將把電話交給蘇珊，她將回顧我們第二季度的財務表現和2022年的業績指引。蘇珊？

Thank you, John. I will focus my discussion today on our adjusted non-GAAP results and touch on some key highlights. Please see today's press release for more details on our financial performance and our methodology when calculating non-GAAP results. Overall, during the first half of 2022, we continue to benefit from industry tailwinds related to elevated used car prices, which, along with our strategic initiatives, drove organic revenue growth of 14.4% for the period.

謝謝，約翰。今天我將重點討論我們調整後的非公認會計準則 (Non-GAAP) 業績，並談及一些關鍵亮點。有關我們財務表現和計算非公認會計準則 (Non-GAAP) 業績方法的更多詳情，請參閱今天的新聞稿。整體而言，在2022年上半年，我們持續受惠於二手車價格上漲帶來的產業利好，這加上我們的策略舉措，推動了當期有機收入成長14.4%。

Organic adjusted EBITDA declined 3.6% for the first half of this year, including an expected decline in Q2, driven by the margin headwinds we previously outlined, partially offset by continued strength in ARPU. For Q2 specifically, consolidated revenues increased 16.9% year-over-year to $520.3 million, including $38.2 million from the acquisition of SYNETIQ. Organic consolidated revenue, which excludes the impact of foreign currency and revenue from the auto exchange and SYNETIQ acquisitions increased 8.9% to $484.9 million coming from an increase in ARPU of 12.6% and a volume decrease of 3.2%. Service revenue increased by 8.9%, while vehicle and parts sales increased by 65.7%.

今年上半年，有機調整後息稅折舊攤銷前利潤 (EBITDA) 下降 3.6%，其中包括第二季度的預期下降，這主要受我們先前概述的利潤率下行壓力影響，但 ARPU 的持續強勁增長部分抵消了這一影響。具體到第二季度，合併收入年增 16.9%，達到 5.203 億美元，其中包括收購 SYNETIQ 帶來的 3,820 萬美元。有機合併收入（不包括外匯影響以及汽車交易和 SYNETIQ 收購收入）成長 8.9%，達到 4.849 億美元，這得益於 ARPU 成長 12.6%，銷量下降 3.2%。服務收入成長 8.9%，汽車及零件銷售額成長 65.7%。

The growth in ARPU was driven by an increased mix of purchased vehicles, the impact of internal initiatives, which includes our ability to pass on higher costs through an increase in service fees and a continuing strong backdrop for used car prices. As a reminder, despite sequential month-over-month softening this year, the Manheim Index was up approximately 10% at the end of June versus the prior year.

ARPU 的成長得益於購車組合的增加、內部措施的影響（包括我們透過提高服務費轉嫁成本的能力），以及二手車價格持續走強的利多因素。需要提醒的是，儘管今年環比有所回落，但截至 6 月底，曼海姆指數仍較去年同期上漲了約 10%。

With respect to volume, we had expected it to decline sequentially in Q2 due to volume loss from one customer and as John reviewed, the period was also negatively impacted by certain macro headwinds, including a decline in the insurance industry total loss ratio lower non-cat weather-related volume and softness in the dealer commercial and consumer-related markets. Regarding the total loss ratio, which declined to 16.8% from 18.2% last quarter and 19.7% in the prior year. We believe this has been impacted by higher used car prices, which affect the insurers equation whether to declare a vehicle a total loss. On the flip side, we see the benefits of strong used car prices in our ARPU. Despite the volume challenges, our U.S. volume grew 5% year-over-year, excluding the impact of the loss of the one customer we've mentioned.

就交易量而言，我們原本預計第二季交易量將季減，原因是失去一位客戶。正如 John 所評論的，這段時期也受到某些宏觀不利因素的負面影響，包括保險業總損失率下降、非巨災天氣相關交易量下降以及經銷商商業和消費相關市場疲軟。總損失率從上季的 18.2% 和去年的 19.7% 下降至 16.8%。我們認為這是受到二手車價格上漲的影響，二手車價格上漲影響了保險公司是否宣布車輛全損的決定。另一方面，我們看到二手車價格強勁為我們的 ARPU 帶來了好處。儘管面臨交易量挑戰，但我們在美國的交易量同比增長了 5%，這不包括我們提到的失去一位客戶的影響。

Gross profit was $182 million compared to $195.9 million in Q2 last year, and gross margin was 35% compared to 36.1% last quarter and 44% in Q2 2021. Year-over-year, 200 basis points of the decline came from an increase in the mix of purchased vehicles and parts sales, which increased to 20% of total revenue in the quarter compared to 14% in the prior year period. As a reminder, purchased vehicle revenues and expenses are accounted for on a gross basis as opposed to consignment, which is accounted for on a net basis.

毛利為1.82億美元，去年第二季為1.959億美元；毛利率為35%，而上季為36.1%，2021年第二季為44%。年減200個基點，主要由於購車及零件銷售佔比上升，該部分佔比在本季度上升至總收入的20%，而去年同期為14%。需要提醒的是，購車收入和支出以總額計算，而代銷收入和支出以淨額計算。

The remaining impact came from the factors we have mentioned on our last few calls, namely higher costs and towing labor and occupancy. -- and by market dynamics in the U.K. that adversely impacted purchased vehicle spreads. In the U.K., purchased vehicle contracts are set based on the vehicles pre-accident value, which does not always move in tandem month-to-month with used vehicle selling prices. While over the long term, we expect PABs to normalize with used car values, we are expecting this to impact our combined U.K. business profitability for the rest of the year.

其餘影響來自我們在過去幾次電話會議中提到的因素，即成本上漲、拖車人工成本上升和入住率上升，以及英國市場動態對購車價差的不利影響。在英國，購車合約是根據車輛事故前的價值確定的，而車輛事故前的價值並不總是與二手車售價同步月度變動。雖然從長期來看，我們預計PAB（個人車輛租賃合約）將與二手車價值趨於正常化，但我們預計這將影響我們今年剩餘時間英國業務的綜合盈利能力。

Partly offsetting these margin headwinds were the efficiency improvements John described and continued improvement in ARPU. SG&A expenses increased by 8.7% to $47.5 million. Adjusted SG&A expenses were $45.4 million, an increase of 4.8% compared to the prior year due mainly to the incremental SG&A of SYNETIQ, higher headcount and higher spending on information technology, partially offset by lower incentive compensation expense. SG&A for SYNETIQ for the quarter was approximately $1.9 million.

John 所述的效率提升和 ARPU 的持續改善部分抵消了這些利潤率方面的不利因素。銷售、一般及行政費用 (SG&A) 成長 8.7%，至 4,750 萬美元。調整後銷售、一般及行政費用為 4,540 萬美元，較上年增長 4.8%，主要原因是 SYNETIQ 銷售、一般及行政費用增加、員工人數增加以及資訊科技支出增加，但激勵性薪酬支出的降低部分抵消了這一增長。 SYNETIQ 本季銷售、一般及行政費用約 190 萬美元。

Adjusted EBITDA was $136.2 million for the second quarter of 2022 compared to $152.6 million in the prior year. Excluding the impact of foreign currency and acquisitions, organic adjusted EBITDA decreased by 12.9%, driven by the factors we discussed earlier, namely the volume and margin headwinds offset by higher ARPU.

2022年第二季調整後EBITDA為1.362億美元，去年同期為1.526億美元。剔除外匯和收購的影響，有機調整後EBITDA下降12.9%，這主要受我們先前討論的因素影響，即銷售和利潤率的不利因素被更高的ARPU值所抵消。

Interest expense declined to $11.5 million compared to $21.9 million in the second quarter last year. The decline was primarily driven by the $10.3 million loss on early extinguishment of debt that was recognized in the second quarter of 2021. The effective tax rate was 10.9% versus 24.7% in the second quarter last year. The tax rate benefited from favorable adjustments of $13.3 million, resulting from a change in the estimate for foreign-derived intangible income.

利息支出降至 1,150 萬美元，而去年第二季為 2,190 萬美元。下降的主要原因是 2021 年第二季確認的提前清償債務損失 1,030 萬美元。有效稅率為 10.9%，而去年第二季為 24.7%。稅率受益於 1330 萬美元的有利調整，該調整源於對外國衍生無形收入估計的變更。

These adjustments were recorded as an $8.6 million discrete item related to prior periods and a $4.7 million benefit related to income in the first half of 2022. Net income was relatively flat at $82.7 million compared to $82.9 million in the prior year. Adjusted net income decreased by 11.4% to $82.7 million or $0.62 per diluted share. Turning now to our cash flow and balance sheet. Capital expenditures were $44.2 million for the quarter compared to $27.5 million in the prior year. The year-over-year increase in capital expenditures was primarily driven by the acquisition of our Washington, D.C. location. During the second quarter, we spent $18.8 million to repurchase approximately 521,000 shares at a weighted average price of $36.19.

這些調整被記錄為與前期相關的 860 萬美元的單獨項目和與 2022 年上半年收入相關的 470 萬美元的收益。淨收入相對持平於 8,270 萬美元，而去年同期為 8,290 萬美元。調整後淨收入下降 11.4% 至 8,270 萬美元或每股攤薄收益 0.62 美元。現在談談我們的現金流和資產負債表。本季資本支出為 4,420 萬美元，而去年同期為 2,750 萬美元。資本支出年增主要是因為收購了我們在華盛頓特區的辦事處。在第二季度，我們花費 1,880 萬美元以 36.19 美元的加權平均價格回購了約 521,000 股。

We continue to balance existing and potential opportunities to invest capital in the business with the ability to selectively employ repurchases as a method of returning capital to shareholders. Our balance sheet remains very strong, and we ended the quarter with total liquidity of approximately $657.1 million. We ended the period with a leverage ratio of 1.9x compared to 1.8x at the end of the second quarter of 2021.

我們持續平衡現有及潛在的業務資本投資機會，並選擇性地運用回購作為股東資本回報方式。我們的資產負債表依然強勁，本季末的總流動性約為6.571億美元。本季末的槓桿率為1.9倍，而2021年第二季末為1.8倍。

Net cash provided by operating activities during the first half of 2022 was $230.3 million, down 8.1% from the prior year, primarily due to the timing of lease and incentive compensation payments, partially offset by increased collections of accounts receivable. Free cash flow was $193.9 million, relatively in line with the prior year period of $193.3 million. Turning now to our outlook for 2022. As a reminder, with the exception of the organic growth percentages, all figures in this outlook include the impact of currency and acquisitions. For 2022, we have narrowed our expectations for revenue and now expect total revenues of $2.02 billion to $2.07 billion -- sorry, $2.075 billion. This range includes a $14 million to $16 million headwind from currency and SYNETIQ revenues of $160 million to $170 million. We expect organic revenue growth of 3.5% to 6%.

2022 年上半年經營活動產生的淨現金為 2.303 億美元，較上年下降 8.1%，主要原因是租賃和激勵薪酬支付時間安排不當，但應收帳款收回增加部分抵消了這一影響。自由現金流為 1.939 億美元，與去年同期的 1.933 億美元基本持平。現在談談我們對 2022 年的展望。提醒一下，除了有機成長百分比外，本展望中的所有數字都包含貨幣和收購的影響。對於 2022 年，我們縮窄了對收入的預期，現在預計總收入為 20.2 億美元至 20.7 億美元——抱歉，是 20.75 億美元。這一範圍包括 1,400 萬至 1,600 萬美元的貨幣逆差和 SYNETIQ 收入 1.6 億美元至 1.7 億美元。我們預計有機收入成長率為 3.5% 至 6%。

We have also narrowed our range for adjusted EBITDA. We now expect total adjusted EBITDA of $540 million to $560 million, including $15 million to $18 million for SYNETIQ and a negative impact from currency of $2 million to $3 million. Our adjusted EBITDA range takes into account our results to date and the impact of continuing inflationary pressures as well as the market dynamics we are experiencing in the U.K.

我們也縮減了調整後EBITDA的區間。我們目前預計調整後EBITDA總額為5.4億至5.6億澳元，其中包括SYNETIQ的1,500萬至1,800萬澳元，以及200萬至300萬澳元的匯率負面影響。我們的調整後EBITDA區間已考慮我們迄今為止的業績、持續的通膨壓力以及我們在英國經歷的市場動態的影響。

The outlook for SYNETIQ reflects the cost of onboarding the additional volume from the new client, market dynamics in the U.K. and the impact of currency. We expect organic adjusted EBITDA to be flat to down 5% compared to the prior year. As a reminder, fiscal 2021 was a 53-week year, whereas fiscal 2022 is a 52-week year. We expect adjusted SG&A expense of $195 million to $205 million, including approximately $8 million to $9 million of adjusted SG&A associated with SYNETIQ. We expect interest expense of $50 million to $52 million, reflective of the recent increase in borrowing rates and an effective tax rate of 22% to 23%, excluding the beneficial impact from discrete items.

SYNETIQ 的前景反映了新客戶新增業務量所帶來的成本、英國市場動態以及匯率影響。我們預計有機調整後息稅折舊攤提前利潤 (EBITDA) 將與上年持平或下降 5%。需要提醒的是，2021 財年為 53 週，而 2022 財年為 52 週。我們預計調整後的銷售、一般及行政管理費用 (SG&A) 為 1.95 億至 2.05 億美元，其中包括與 SYNETIQ 相關的約 800 萬至 900 萬美元的調整後銷售、一般及行政管理費用 (SG&A)。我們預計利息支出為 5,000 萬至 5,200 萬美元，這反映了近期借款利率的上升以及 22% 至 23% 的有效稅率（不包括單項項目的有利影響）。

Finally, depreciation and amortization are expected to be $105 million to $110 million. As it relates to the expected quarterly cadence of our revenue and adjusted EBITDA this year, I'd like to reiterate some of the comments I made last quarter. We continue to view Q1 as our highest quarter for both revenue and adjusted EBITDA for the year.

最後，預計折舊和攤銷費用為1.05億美元至1.1億美元。鑑於我們今年營收和調整後EBITDA的季度預期成長節奏，我想重申我上個季度的一些評論。我們仍然認為第一季是今年營收和調整後EBITDA最高的一個季度。

Given our previously discussed volume and ARPU expectations, we still expect revenue and EBITDA to decline sequentially in Q3 before increasing in Q4, although not up to the level of Q1. So we still expect overall revenue and adjusted EBITDA to be lower in the back half of the year, and this is incorporated in our full year guidance range. We still expect that adjusted EBITDA margin deleverage year-over-year was the most significant in the second quarter with an improving trend expected in the back half of the year. With that, we'll open up the call to questions. Operator?

鑑於我們之前討論過的銷售量和每位用戶平均收入 (ARPU) 預期，我們仍然預計第三季營收和 EBITDA 將環比下降，然後在第四季度回升，但回升幅度不會達到第一季度的水平。因此，我們仍然預計下半年總收入和調整後 EBITDA 將有所下降，這已納入我們的全年預期範圍。我們仍預計，第二季調整後 EBITDA 利潤率的年比去槓桿率最為顯著，預計下半年將呈現改善趨勢。接下來，我們將開始提問。接線生？

(Operator Instructions) The first question comes from the line of Daniel Imbro with Stephens.

（操作員指示）第一個問題來自史蒂芬斯的丹尼爾·伊姆布羅。

Want to start a little higher level. I think in your prepared remarks, you talked more about some of your initiatives, whether it's data analytics, lender coverage, transport. I guess I'd love to hear why the increased detail. And I'd also love to hear what is early customer feedback? How long would you expect for these kind of initiatives to manifest into share wins? Just any kind of thoughts around customer feedback and potential share impacts from all the initiatives you've discussed?

想從更高層次開始。我想您在準備好的發言中更多地談到了一些您的舉措，無論是數據分析、貸款機構覆蓋還是運輸。我想聽聽您為什麼增加了細節。我還想聽聽早期的客戶回饋是什麼？您預計這些舉措多久才能轉化為市場佔有率的成長？關於客戶回饋以及您討論的所有舉措對市場份額的潛在影響，您有什麼看法嗎？

Yes. Thanks, Daniel. Yes. I mean, I probably talked more than usual because I am excited about what we're doing in these areas. And I think it's resonating well with our clients, both, as I said, both our existing and as we look to expand our market position, whether it's the data analytics where we really are -- I gave that example, but we really are unlocking ways and helping sellers find better ways to market their vehicles. And really, we've got tools now that we're using in a way that we've never used before.

是的。謝謝，丹尼爾。是的。我的意思是，我可能比平常說得更多，因為我對我們在這些領域的工作感到興奮。而且我認為這與我們的客戶產生了良好的共鳴，正如我所說，無論是我們現有的客戶，還是我們尋求擴大市場地位的客戶，無論是數據分析——我舉了那個例子——我們確實在開拓新途徑，幫助賣家找到更好的方法來行銷他們的車輛。而且，我們現在擁有了一些工具，並且正在以前所未有的方式使用它們。

And we're also, again, with the data that we have on our buyers really understand the kind of the cohorts of different types of buyers that we have and how they behave so that we can target to them and make sure we're getting the right value. I mean, those are just kind of both sides of the demand and the supply. And then certainly, loan payoff as we continue to add lenders and now we've got this solution where we basically could handle 100% of liens. It really is resonating well, and I think carriers are recognizing now that we've got the critical mass that we need to really help them solve that persistent issue they have in trying to obtain the right paperwork so that we can sell a vehicle. So yes, I am excited about all those. The timing of when stuff comes. I wish I had that crystal ball, but I do think we are moving in the right direction and the feedback that I'm getting and seeing gives me confidence.

再次強調，憑藉我們掌握的買家數據，我們能夠真正了解不同類型的買家群體及其行為方式，從而精準定位他們，確保獲得合適的價值。我的意思是，這就像需求和供應的結合。當然，隨著貸款方不斷增加，貸款的償還情況也會隨之改善，現在我們擁有的解決方案基本上可以處理所有留置權。這確實引起了良好的反響，我認為承運商現在也意識到，我們已經達到了幫助他們解決長期存在的車輛銷售相關文件問題所需的臨界規模。所以，是的，我對所有這些都感到興奮。但事情發生的時機也很重要。我希望自己能有水晶球，但我確實認為我們正朝著正確的方向前進，我收到的和看到的回饋讓我充滿信心。

That's helpful color, John. And then Susan, as a follow-up, can you dig a little more to the total loss rate dynamic? First off, did you say it was 16.8% in the quarter did we hear you right? And then if so, curious why you think it dipped down sequentially? I guess, used vehicle prices were relatively stable sequentially. I think the year-over-year increases were smaller. Just curious what would drive that down further? Is it lower accident severity? Is it a lack of replacement vehicle, it's just making insurance companies repair more accidents? Is it something else? Can you just talk about why the step down if that was the number?

約翰，這很有幫助。然後蘇珊，作為後續問題，您能否進一步深入探討總損失率的動態？首先，您剛才說的是本季是16.8%，我們沒聽錯吧？如果是這樣，您覺得為什麼它會比去年同期下降？我想，二手車價格比上季相對穩定。我認為同比漲幅較小。我只是好奇是什麼原因導致它進一步下降？是事故嚴重程度降低嗎？是替代車輛不足，導致保險公司需要修復更多事故車輛嗎？還是其他原因？如果是這個數字，您能談談它下降的原因嗎？

Yes. So you're correct, we're quoting industry data on our total loss ratio just to make that clear. But John, why don't you give some more comments.

是的。所以你說得對，我們引用行業數據來計算總損失率只是為了說明這一點。不過，約翰，你能否再多說幾句？

Yes, Daniel. So I mean one of the other phenomenon that we saw was while used -- while wholesale pricing kind of flattened, retail pricing really hasn't fallen off a lot, at least it had through the second quarter. And the ACV, which is what the carriers use, the actual cash value, that's really based on retail pricing. So as retail pricing has sort of held that ratio of repair cost to retail price has continued to reduce that percentage. So it is an important distinction to think about retail prices relative to wholesale prices when you're -- when we're talking about this.

是的，丹尼爾。所以，我的意思是，我們看到的另一個現像是，雖然批發價格趨於平穩，但零售價格實際上並沒有大幅下降，至少在第二季是如此。而ACV，也就是營運商使用的實際現金價值，實際上是基於零售價格的。因此，隨著零售價格的穩定，維修成本與零售價格的比率一直在下降。所以，當我們討論這個問題時，比較零售價格和批發價格是一個重要的區別。

And I think related to that, it's kind of a lag effect, right? -- because insurers trying to decide based again on the retail prices, whether something is a total loss, and then that's what's going to create the additional volume for us. we're not surprised to see a lag effect there on the prices sort of moderating and when the volume kicks. You kind of see it on the front side of it, right? So we saw increasing used car prices and total loss ratio remains high. So it seems like a disconnect. But if you look at it on a lag basis, it probably makes a lot more sense.

我認為與此相關的是，這是一種滯後效應，對吧？ ——因為保險公司試圖再次根據零售價格來判斷某件商品是否全損，而這又會為我們帶來額外的保量。我們並不驚訝於價格在下降、保量開始上升時所出現的滯後效應。你似乎看到了它的正面影響，對吧？我們看到二手車價格上漲，而全損率仍然很高。所以這似乎是一種脫節。但如果從滯後的角度來看，這可能更有意義。

Got it. And so your expectation would be what you've seen this summer with a slight moderation would be all else equal to the back half of the year, that's a tailwind to volume growth relative to the relative to the second quarter?

明白了。所以，您預計今年夏天的銷售會略有回落，其他方面與下半年持平，相對於第二季而言，銷售成長會順風順水嗎？

Well, like John said, we can't predict exact timing on that. But we would expect over the long term that the total loss ratio is going to go back towards that 20, 20, 20 plus that we saw. And as John mentioned, all of the factors that are there that increase the total loss ratio like vehicle complexity are not abating.

嗯，就像約翰說的，我們無法預測確切的時間。但我們預計，從長遠來看，總賠付率將回落到我們之前看到的20%、20%甚至20%以上。正如約翰所提到的，所有導致總賠付率上升的因素，例如車輛的複雜性，都沒有減弱的跡象。

That's right.

這是正確的。

The next question comes from the line of Bob Labick with CJS Securities.

下一個問題來自 CJS Securities 的 Bob Labick。

I want to talk about the cost to process a car. You obviously discussed labor and towing as the headwinds there, and they've been persistent. I guess maybe if we could dig in a little more on those. How much of the increased costs are permanent? When might they start to go back down? Is it in labor? Is it just higher wages? Or is there maybe a higher turnover in your branches that could dissipate as the labor market improves? And in towing, is it like just fuel and labor? Or have the towing distances changed for whatever reason? I'm just trying to get a sense of when kind of cost to process a car may come down as well.

我想談談處理汽車的成本。您顯然提到了人工和拖車是這方面的不利因素，而且它們一直存在。我想我們或許可以更深入地探討一下。增加的成本有多少是永久性的？什麼時候會開始下降？是人工成本嗎？僅僅是薪資上漲嗎？還是說，你們各部門的人員流動率較高，但隨著勞動市場的改善，這種影響可能會逐漸消失？至於拖車成本，只是燃油和人工成本嗎？還是拖車距離因為某些原因改變了？我只是想了解一下，處理汽車的成本什麼時候也會下降。

Yes. Great. So let me start with labor. It has been primarily around rate, so paying -- having to pay more, just given what's happening in the overall labor market.

是的，太好了。那我先從勞動力說起。主要問題在於工資，考慮到整體勞動市場的情況，工資不得不更高。

Turnover has abated. We certainly saw in the -- what was called the great resignation last year. In particular, we did see higher levels of turnover than we had experienced ever. But we have certainly seen that begin to calm down.

人員流動率已經下降。我們確實看到了——去年所謂的「大規模辭職」。具體來說，我們確實看到了比以往任何時候都更高的人員流動率。但我們確實看到這種情況開始逐漸平息。

So we do -- but that's the near term. Again, as what I talked about is are consistently looking at ways to take labor costs out to find ways to automate and simplify processes. So we need fewer people to do some of those tasks from the people we have and focus on the higher value ones.

確實如此——但這只是短期目標。正如我之前所說，我們一直在尋找降低勞動成本的方法，以實現流程的自動化和簡化。因此，我們需要減少現有人員來完成某些任務，從而專注於更高價值的任務。

So that's our approach. That's the phenomenon over the last year and then what we're doing about it going forward.

這就是我們的方法。這是過去一年出現的現象，也是我們未來因應的措施。

In terms of towing, it was a similar situation is that a year ago or 18 months ago, the tow companies that we use couldn't find drivers. They had trucks and no drivers because they either -- just they weren't interested in driving a tow truck. That is again beginning to stabilize, as I talked about.

就拖車而言，情況類似，一年前或一年半前，我們使用的拖車公司找不到司機。他們有拖車，卻找不到司機，因為他們對駕駛拖車不感興趣。正如我之前提到的，這種情況現在又開始穩定下來了。

In the core rates, really distances haven't changed to your specific question. Again, given our footprint and our vast network of facilities, we, to a certain extent, control for how far we have to go to get cars.

在核心費率中，距離實際上並沒有根據您提出的具體問題而改變。同樣，鑑於我們的覆蓋範圍和龐大的設施網絡，我們在一定程度上可以控制取車距離。

Fuel is a phenomenon right now obviously. With diesel prices, while they're coming down, they're still very, very high. So we are incurring fuel surcharge that we would expect to abate as fuel prices come back to some normalized level. So there's a portion of it that we certainly see in the near term from a fuel price perspective.

燃料顯然是當下的一個現象。柴油價格雖然正在下降，但仍然非常高。因此，我們承擔了燃油附加費，預計隨著燃油價格恢復到正常水平，這些附加費會減少。所以，從燃油價格的角度來看，短期內我們一定會看到部分燃油附加費的上漲。

And then again, our towing rates have stabilized. The tow companies we use have been able to start to fill their trucks. And again, we're deploying technology and some of our analytics to help mitigate those costs to find ways to more effectively route, to not have to go through a release center to get a vehicle release to dispatch truck right away because our data tells us that it's likely going to be easy to pick up those kinds of things.

我們的拖車費率已經穩定下來。我們合作的拖車公司已經開始裝滿拖車了。此外，我們正在部署技術和一些分析工具，以幫助降低這些成本，找到更有效的路線，無需透過放行中心獲得車輛放行並立即調度卡車，因為我們的數據告訴我們，這類物品很容易被拖走。

So those are short-term phenomenon. But we certainly are focused on finding ways to reduce those per unit costs going forward.

所以這些都是短期現象。但我們肯定會致力於尋找未來降低單位成本的方法。

Okay. Great. That's certainly helpful color. I guess just one other quick one, unrelated to that. But in terms of the dollar strength, obviously, you called out in FX and what's going on there. How is it impacted, if at all, the international bidders or buying on the U.S. salvage cars at auction? Has that impacted the -- I mean obviously, ARPU is still very high. So it hasn't been too negative there. But what are you seeing in terms of international bidding activity and building your international buyer base? And has the dollar impacted that right now?

好的。太好了。這當然很有幫助。我想再問一個與此無關的快速問題。但就美元走強而言，您顯然提到了外匯市場以及那裡的情況。它對國際競標者或在拍賣會上購買美國報廢汽車有何影響（如果有的話）？這是否影響了——我的意思是，顯然，每個用戶平均收入 (ARPU) 仍然很高。所以那裡的影響還不算太負面。但是，就國際競標活動和建立國際買家群體而言，您看到了什麼？美元目前是否對此產生了影響？

Yes. I mean I guess I would, at a high level, expected some of what you described, but really, we haven't seen it. Again, we continue to grow our borrower base. We're finding new markets and new ways to bring those buyers to our marketplace.

是的。我的意思是，我大概預料到了一些你所描述的情況，但實際上，我們還沒看到。再說一次，我們的借款人基礎仍在持續擴張。我們正在尋找新的市場和新的方式，將這些買家引入我們的市場。

And again, the robustness of our marketplace, even if they're operating in a currency that's not as strong, they're going to have to bid in dollars to buy the vehicle. So they're going to need to compete with the domestic base buyers to get that vehicle. So we really have not seen a negative impact on the bidding side from the strength of the dollar.

再說一次，鑑於我們市場的強勁，即使他們使用的貨幣不那麼強勢，他們也必須用美元競價購買汽車。所以他們需要與國內買家競爭才能買到汽車。因此，我們並沒有看到美元走強對競價方產生負面影響。

The next question comes from the line of Bret Jordan with Jefferies.

下一個問題來自 Jefferies 的 Bret Jordan。

On the comment continue to grow the buyer base, the international bidder for North American cars, is there any way to quantify that? I mean you've done some push into North Africa and developing sort of marketing offices over there. But is there a way that we can sort of look at that, maybe how much volume is going over there or what the change is?

關於繼續擴大買家群體，即北美汽車的國際買家，有什麼方法可以量化這一點嗎？我的意思是，你們已經進軍北非市場，並在那裡設立了行銷辦公室。但是，我們能不能用某種方式來觀察一下，例如那裡的銷量有多少，或者變化如何？

Yes. We've always been hesitant to try and put a percentage on just because of the nature of the U.S.-based export buyers that we have that are shipping vehicles out of the country. So it's -- but -- so we are measuring and the growth we're talking about is our foreign-based buyers.

是的。我們一直猶豫著是否要確定一個百分比，因為我們的出口買家主要是美國本土的，他們會把車輛運出美國。所以，我們正在衡量的，以及我們所說的成長，是來自海外買家的成長。

So it continues to be strong in West Africa, the Middle East, Central and South America, Eastern Europe. You've seen where we have opened some of these -- established these market partners. It continues to be strong. And I think as I've said before, there's still a lot of room to grow. There's a lot of places in the world that we still think we can target or more deeply target to continue to grow that portion of our buyer base.

因此，我們在西非、中東、中南美洲和東歐市場的業務持續強勁。如您所見，我們已經在其中一些市場開拓了業務，並建立了合作夥伴。業務持續強勁。正如我之前所說，我們仍然有很大的成長空間。我們認為，世界上還有很多地方可以作為目標，或更深入地進行定位，以繼續擴大我們買家群體的份額。

Okay. And then you commented earlier that market share is stable, I think, and then increasing the bottom end of the revenue growth rate guide. Does that imply that the large insurer who was shifting volume has stabilized? Or is the market share gains with others offsetting that loss?

好的。您之前提到市佔率穩定，我想這是事實，而且收入成長率指引的下限也在上升。這是否意味著之前一直在轉移業務量的大型保險公司已經穩定下來了？還是說市佔率的增加抵銷了其他公司的損失？

I would say it's some of both, Bret. So I think we are stabilized with that carrier, and we continue to do well, kind of up and down the Tier 1, Tier 2 and Tier 3 carriers.

布雷特，我想說兩者都有。所以我認為我們和這家運營商的合作已經穩定下來，而且我們繼續表現良好，在一級、二級和三級運營商之間來回切換。

Okay. And then I guess one final question. On the SYNETIQ acquisition trailing expectations -- and then you've also mentioned that the U.K. purchased vehicle spreads were going against you. Is SYNETIQ impacted by that purchased vehicle spread? Or is it just the cost of bringing in the new customer in the U.K. that's impacting SYNETIQ?

好的。我想還有最後一個問題。關於SYNETIQ收購案的表現低於預期－您之前也提到英國的購車價差對您不利。 SYNETIQ會受到購車價差的影響嗎？還是只是引進英國新客戶的成本影響了SYNETIQ？

It's a bit of both, Bret.

兩者都有，布雷特。

The next question comes from the line of Gary Prestopino with Barrington Research.

下一個問題來自 Barrington Research 的 Gary Prestopino。

Susan, John, could you maybe just explain some of those market dynamics in the U.K. again, just so I'm clear on that, what's going on?

蘇珊、約翰，你們能否再解釋一下英國的一些市場動態，以便我清楚地了解發生了什麼事？

Sure, Gary. So it's primarily a purchased vehicle market. So we're buying vehicles based on the ACV or PAV, that they call it in the U.K. But you got to think about if a vehicle is damaged today and the insurance company establishes the value and they pay it, and then we don't sell that vehicle for 60 or 90 days, it's a different market from when it was purchased.

當然，加里。所以這主要是一個購買車輛的市場。我們是根據英國人所說的ACV或PAV來購買車輛的。但你得想想，如果一輛車今天受損，保險公司確定了價值並賠償，但我們會在60天或90天內賣掉這輛車，這和它被購買時的市場情況不一樣。

So as used car prices are moderating there, we're sort of -- we're buying and as the prices are falling. So we're having to sell at a -- the spread that we've established isn't as wide as we would have expected. So we believe it balances out over time, but we're currently in a situation where it's sort of in transition as values are starting to come down.

所以，隨著二手車價格的回落，我們買了一部分，但價格卻在下跌。所以我們只好以…我們設定的價差並沒有我們預期的那麼大。所以我們相信，隨著時間的推移，價差會逐漸平衡，但目前我們正處於過渡階段，因為價值正在開始下降。

Okay. That's good. And then why is it taking longer or there's more expense incurred from boarding this new client in the U.K.?

好的。很好。那麼，為什麼在英國接待這位新客戶需要更長的時間，或會產生更多費用呢？

Yes. So one, the volume started coming later than we expected. But then in addition, again, for some of these vehicles, because we're buying them, we're then putting them into inventory. But we're still having to incur labor and other costs that we don't capitalize at this point. And then we're not selling the dismantled parts or whatever we're going to sell. That doesn't come until later. So we've incurred the front end of the costs, but we haven't been able to realize the revenue yet.

是的。首先，銷售量開始成長比我們預期的要晚。其次，對於其中一些車輛，因為我們購買了它們，所以會將它們存入庫存。但我們仍然需要承擔人工和其他成本，而這些成本目前還沒有資本化。而且，我們還沒有出售拆解的零件或任何我們打算出售的東西。這些都要等到以後才能實現。所以我們已經承擔了前期成本，但還沒有實現收入。

Okay. So over time, this should balance.

好的。所以隨著時間的推移，這應該會達到平衡。

Yes Exactly. Yes, that's why, again, as I said, it doesn't -- my view is unchanged of our potential with this business and with that particular account. I think it's really good for us going forward.

是的，沒錯。是的，正如我之前所說，我對我們的這項業務和該特定帳戶的潛力的看法沒有改變。我認為這對我們未來的發展非常有利。

(Operator Instructions) the next question comes from the line of Chris Bottiglieri with BNP Paribas.

（操作員指示）下一個問題來自法國巴黎銀行的 Chris Bottiglieri。

The first one I want to ask about volume. So if I heard you right, it sounds like volumes are up 5% in the U.S. ex kind of top customer loss. Your total loss rates are down materially. I think miles driven are down slightly year-on-year at this point. So I guess what would you attribute the 5% volume growth? Like what's driving that? Like what are the factors that are pushing volume to be as positive ex top customer?

首先我想問的是銷量。如果我沒聽錯的話，美國地區的銷售量成長了5%，不包括頂級客戶的流失。你們的總流失率大幅下降了。我認為目前的行駛里程比去年同期略有下降。那麼，您認為5%的銷售成長是什麼原因造成的呢？是什麼推動了這項成長？除了頂級客戶之外，有哪些因素推動了銷售的正面成長？

Yes. Well, I think as I've talked about over the last couple of quarters, we have been gaining share. When you take that 1 customer out, we have been gaining share. And I think that's certainly been helpful. We're also continuing to -- even though it's a constrained market, our dealer commercial consumer-facing is another area where we continue to do well to add to volume.

是的。嗯，我想就像我過去幾個季度提到的那樣，我們的市場份額一直在增長。即使除去那一個客戶，我們的市佔率也一直在成長。我認為這當然很有幫助。儘管市場規模有限，但我們面向經銷商的商業消費者業務仍然是我們繼續保持良好成長勢頭的另一個領域。

I mean Susan, anything else? Any other factors that you think about in the second quarter that would have driven growth?

蘇珊，還有其他嗎？您認為第二季還有哪些因素會推動成長？

Those are really the 2 factors that are driving it when you strip away that 1 customer.

當你失去那 1 個客戶時，這實際上是推動事情的兩個因素。

Got you. Okay. That's helpful. And then the next question or last question will be just on SG&A, like pretty big decline in Q2. I haven't processed my model yet to see what like the guide implies for the back half. But I just wanted to get a sense of what's happening there. Are you actively cutting costs at this point? Any cost that kind of slips in the back half? Like just some context there on -- I think probably the biggest decline in SG&A, we've seen in a while, that would be helpful.

明白了。好的。這很有幫助。下一個問題，或者說最後一個問題，是關於銷售、行政及管理費用（SG&A）的，第二季的降幅相當大。我還沒有處理我的模型，看看指南對下半年的預測是什麼。但我只是想了解那裡的情況。你們現在是否在積極削減成本？下半年有任何成本下滑嗎？我想問一下這方面的背景——我認為這可能是我們一段時間以來看到的最大降幅，這將會很有幫助。

Yes. A couple of things there. So yes, we are actively managing our costs and being super selective and super rigorous about what we're going to invest in. There's also a couple of a couple of factors going on here. One is incentive compensation expense. So last year, we outperformed our budget. We booked compensation of that expense. We accrue it based on where we expect to end the year.

是的，有幾件事。沒錯，我們正在積極管理成本，對投資項目精挑細選，非常嚴格。這裡還有幾個因素。一是激勵性薪酬支出。去年，我們的業績超出了預算。我們已將這筆支出計入激勵性薪酬。我們根據預計的年末業績進行提列。

This year, we're -- that's not the case. Obviously, we reset our bar and make it at a point where we're going to have to work really hard to achieve it. So that's one thing.

今年，情況並非如此。顯然，我們重新設定了目標，並設定了一個必須非常努力才能實現的目標。這是一方面。

And then I think it depends on whether you're looking at adjusted EBITDA -- sorry, adjusted SG&A. You look at adjusted SG&A. That increased year-over-year pretty much roughly in line with the SYNETIQ addition. So we had some onetime costs last year that aren't in the number this year that aren't in adjusted SG&A.

然後，我認為這取決於你是否專注於調整後的EBITDA——抱歉，是調整後的銷售、行政和管理費用（SG&A）。你關注的是調整後的銷售、行政和管理費用。此費用的年增率與SYNETIQ的增加基本一致。所以，我們去年有一些一次性成本，今年沒有計入調整後的銷售、行政和管理費用。

Got you. Okay. Yes, I was looking quarter-on-quarter adjusted SG&A.

明白了。好的。是的，我正在查看季度環比調整後的銷售、一般及行政費用 (SG&A)。

Thanks, Chris.

謝謝，克里斯。

There are no questions waiting at this time. I would like to pass the conference back over to John for closing remarks.

目前沒有問題。我想將會議交還給約翰，請他作總結發言。

Thank you. Just to reiterate the resilient nature of our business and the industry overall. I really am confident in our ability to deliver positive results regardless of market conditions.

謝謝。我再次強調，我們業務以及整個產業的韌性。無論市場狀況如何，我都堅信我們有能力取得正面的成果。

As we further enhance our digital offering and expand our global buyer base, we'll continue to execute on our strategic initiatives, including this focus on operational excellence and sustainability. We remain well positioned to generate value for our shareholders in the quarters and years to come. Thank you for joining us, and we look forward to updating you again during our third quarter call in November.

隨著我們進一步提升數位化服務並擴大全球買家群體，我們將繼續執行各項策略舉措，包括對卓越營運和永續發展的關注。我們將繼續保持優勢，在未來幾季甚至幾年為股東創造價值。感謝您的參與，期待在11月的第三季電話會議上再次與您分享最新動態。

That concludes the IAA Second Quarter 2022 Earnings Conference Call. Thank you for your participation. You may now disconnect your lines.

IAA 2022 年第二季財報電話會議到此結束。感謝您的參與。現在您可以斷開連線了。