Kar Auction Services (NYSE: KAR) reported Q1 EPS of $0.09, $0.07 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $689.6 million versus the consensus estimate of $649.22 million.

Impact of COVID-19 on Company Operations

On March 16, 2020, in response to the COVID-19 pandemic, the company announced that it was modifying its North American auction processes and would be holding auctions online only via Simulcast to protect the health and well-being of its workforce and customers. On March 20, 2020, the company announced that it was suspending physical sale operations across North America at all ADESA auction locations, including Simulcast-only sales, for at least two weeks. All non-essential auction employees were sent home and were paid during the two week closure. On April 6, 2020, the company reopened Simulcast-only sales in select markets and has continued to expand the Simulcast-only sales each week, where possible and as permitted. The company has altered its processes to comply with all local, state and provincial directives, including social distancing guidelines, which have materially limited ADESA's ability to provide its full scope of services until the guidelines are eased or terminated. As a result, the company has taken certain measures to help protect the business and its liquidity while its operations are negatively impacted. Some of these measures include the following:

2020 Outlook Withdrawn

The company has withdrawn its 2020 outlook and financial guidance previously provided on February 18, 2020 given the uncertainty of the business climate as impacted by COVID-19 and the unpredictable timeline of market recovery.

Quarterly Dividend Temporarily Suspended

The company has temporarily suspended its quarterly dividend in light of the impact of the COVID-19 pandemic on its operations.

For earnings history and earnings-related data on Kar Auction Services (KAR) click here.