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OPENLANE, Inc. Reports 2024 Financial Results

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CARMEL, Ind., Feb. 19, 2025 /PRNewswire/ — OPENLANE, Inc. (NYSE: KAR), today reported its fourth quarter and annual financial results for the period ended December 31, 2024.

“OPENLANE delivered positive fourth quarter and full-year 2024 results, driven by another strong quarter in our marketplace business,” said Peter Kelly, CEO. “The Marketplace grew year-over-year volume for the seventh straight quarter, including 15% growth in dealer volumes, and grew Adjusted EBITDA by an impressive 30%. Our customers are clearly responding to our unique offerings and our differentiated value proposition that delivers ease, speed and improved outcomes. We remain focused on our strategy – delivering the best marketplace, technology and customer experience, and are well positioned for continued growth.”

“OPENLANE’s consistent growth and financial performance clearly demonstrate the strong scalability characteristics of our asset-light, digital model,” said Brad Lakhia, Chief Financial Officer. “Our culture of innovation, growth and financial discipline increased revenue, reduced cost and delivered $293 million in Adjusted EBITDA. We will continue to lean into our marketplace go-to-market investments to drive growth while leveraging our leading, high-performing finance business.”

Fourth Quarter Highlights

Marketplace total volume YoY growth of 9%, with dealer YoY growth of 15%Consolidated revenue of $455 million, representing 12% YoY growth, driven by 18% YoY Marketplace growthConsolidated income from continuing operations of $52 million, with Marketplace contributing $26 millionConsolidated Adjusted EBITDA of $73 million, representing 18% YoY growthMarketplace Adjusted EBITDA of $31 million, representing 30% YoY growth

Full Year Highlights

Marketplace total volume YoY growth of 9%Consolidated revenue of $1,789 million, representing 5% YoY growth, driven by 8% YoY Marketplace growthConsolidated income from continuing operations of $110 million, with Marketplace contributing $2 millionConsolidated Adjusted EBITDA of $293 million, representing 8% YoY growthCash flow from operating activities of $293 millionMarketplace Adjusted EBITDA of $135 million, representing 24% YoY growthGross Merchandise Value (GMV) of approximately $27 billion, representing 12% YoY growth

2025 Guidance

Annual

Guidance

Income from continuing operations (in millions)

$100 – $114

Adjusted EBITDA (in millions)

$290 – $310

Income from continuing operations per share – diluted *

$0.38 – $0.48

Operating adjusted net income from continuing operations per share – diluted

$0.90 – $1.00

*

The company uses the two-class method of calculating income from continuing operations per diluted share.

Under the two-class method, income from continuing operations is adjusted for dividends and undistributed

earnings (losses) to the holders of the Series A Preferred Stock, and the weighted average diluted shares do

not assume conversion of the preferred shares to common shares.

The December 2024 divestiture of the company’s automotive key business is reflected in the 2025 guidance.

Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments, adverse changes in the value of foreign currencies relative to the U.S. dollar, changes in applicable laws and regulations (including significant accounting and tax matters) and intangible impairments. The timing and amounts of these items are highly variable, difficult to predict, and of a potential size that could have a substantial impact on the company’s reported results for any given period. Prospective quantification of these items is generally not practicable. Operating adjusted net income from continuing operations per share excludes amortization expense associated with acquired intangible assets, as well as one-time charges, net of taxes. See reconciliations of the company’s guidance included below.

Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Wednesday, February 19, 2025 at 5:00 p.m. ET. The call will be hosted by OPENLANE Chief Executive Officer Peter Kelly and Chief Financial Officer Brad Lakhia. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE’s fourth quarter 2024 results is available at the investor relations section of corporate.openlane.com.

The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.

About OPENLANE
OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.

Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts (including but not limited to statements regarding our growth opportunities and strategies, industry outlook, competitive position, business and investment plans and initiatives, and 2025 financial guidance) may be forward-looking statements. Words such as “should,” “may,” “will,” “would,” “anticipate,” “expect,” “project,” “intend,” “contemplate,” “plan,” “believe,” “seek,” “estimate,” “assume,” “can,” “could,” “continue,” “of the opinion,” “confident,” “is set,” “is on track,” “outlook,” “target,” “position,” “predict,” “initiative,” “goal,” “opportunity” and similar expressions identify forward-looking statements. Such statements are based on management’s current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled “Risk Factors” in the company’s annual and quarterly periodic reports, and in the company’s other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.

 

OPENLANE, Inc.
Condensed Consolidated Statements of Income 
(In millions) (Unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Operating revenues

Auction fees

$      112.0

$        90.0

$      443.8

$      395.3

Service revenue

141.2

144.5

586.6

619.7

Purchased vehicle sales

95.6

60.2

327.0

236.7

Finance revenue

106.2

111.4

431.1

444.0

Total operating revenues

455.0

406.1

1,788.5

1,695.7

Operating expenses

Cost of services (exclusive of depreciation and amortization)

244.5

204.8

956.3

867.6

Finance interest expense

28.3

34.0

123.5

130.6

Provision for credit losses

12.1

17.2

54.3

59.2

Selling, general and administrative

99.7

101.4

408.6

421.8

Depreciation and amortization

23.0

25.3

95.2

101.5

Gain on sale of business

(31.6)

(31.6)

Goodwill and other intangibles impairment

250.8

Total operating expenses

376.0

382.7

1,606.3

1,831.5

Operating profit (loss)

79.0

23.4

182.2

(135.8)

Interest expense

4.6

5.3

21.8

25.2

Other expense (income), net

5.4

(3.1)

2.5

(15.6)

Loss on extinguishment of debt

1.1

Income (loss) from continuing operations before income taxes

69.0

21.2

157.9

(146.5)

Income taxes

16.7

7.6

48.0

8.3

Income (loss) from continuing operations

52.3

13.6

109.9

(154.8)

Income from discontinued operations, net of income taxes

0.7

0.7

Net income (loss)

$        52.3

$        14.3

$      109.9

$    (154.1)

Net income (loss) per share – basic

Income (loss) from continuing operations

$        0.29

$        0.02

$        0.46

$      (1.83)

Income from discontinued operations

0.01

Net income (loss) per share – basic

$        0.29

$        0.02

$        0.46

$      (1.82)

Net income (loss) per share – diluted

Income (loss) from continuing operations

$        0.29

$        0.02

$        0.45

$      (1.83)

Income from discontinued operations

0.01

Net income (loss) per share – diluted

$        0.29

$        0.02

$        0.45

$      (1.82)

 

OPENLANE, Inc.
Condensed Consolidated Balance Sheets
(In millions) (Unaudited)

December 31, 
2024

December 31, 
2023

Cash and cash equivalents

$                143.0

$                 93.5

Restricted cash

40.7

65.4

Trade receivables, net of allowances

248.2

291.8

Finance receivables, net of allowances

2,322.7

2,282.0

Other current assets

96.9

109.2

Total current assets

2,851.5

2,841.9

Goodwill

1,222.9

1,271.2

Customer relationships, net of accumulated amortization

117.7

136.1

Operating lease right-of-use assets

67.1

75.9

Property and equipment, net of accumulated depreciation

149.3

169.8

Intangible and other assets

213.8

231.4

Total assets

$             4,622.3

$             4,726.3

Current liabilities, excluding obligations collateralized by

     finance receivables and current maturities of debt

$                682.7

$                692.3

Obligations collateralized by finance receivables

1,660.3

1,631.9

Current maturities of debt

222.5

154.6

Total current liabilities

2,565.5

2,478.8

Long-term debt

202.4

Operating lease liabilities

60.4

70.4

Other non-current liabilities

41.2

35.2

Temporary equity

612.5

612.5

Stockholders’ equity

1,342.7

1,327.0

Total liabilities, temporary equity and stockholders’ equity

$             4,622.3

$             4,726.3

 

OPENLANE, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions) (Unaudited)

Year Ended
December 31,

2024

2023

Operating activities

Net income (loss)

$         109.9

$       (154.1)

Net income from discontinued operations

(0.7)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

95.2

101.5

Provision for credit losses

54.3

59.2

Deferred income taxes

1.7

(29.8)

Amortization of debt issuance costs

9.1

8.7

Stock-based compensation

14.7

16.5

Contingent consideration adjustment

1.3

Investment and note receivable impairment

10.3

Gain on sale of property

(31.6)

Goodwill and other intangibles impairment

250.8

Loss on extinguishment of debt

1.1

Other non-cash, net

(0.3)

1.0

Changes in operating assets and liabilities, net of acquisitions:

Trade receivables and other assets

44.4

(66.0)

Accounts payable and accrued expenses

(4.6)

39.8

Payments of contingent consideration in excess of acquisition-date fair value

(2.6)

Net cash provided by operating activities – continuing operations

292.8

237.0

Net cash used by operating activities – discontinued operations

(1.4)

(1.6)

Investing activities

Net (increase) decrease in finance receivables held for investment

(96.7)

64.8

Acquisition of businesses (net of cash acquired)

(103.0)

Purchases of property, equipment and computer software

(53.0)

(52.0)

Investments in securities

(2.8)

(1.3)

Proceeds from sale of investments

0.9

Proceeds from note receivable

0.7

Proceeds from the sale of business

79.8

Proceeds from the sale of property and equipment

0.9

0.3

Net cash used by investing activities – continuing operations

(70.9)

(90.5)

Net cash provided by investing activities – discontinued operations

7.0

Financing activities

Net increase (decrease) in book overdrafts

0.8

(2.3)

Net (repayments of) borrowings on lines of credit

(131.7)

5.9

Net increase (decrease) in obligations collateralized by finance receivables

49.5

(55.9)

Payments for debt issuance costs/amendments

(15.1)

(6.7)

Payment for early extinguishment of debt

(140.1)

Payments on finance leases

(0.9)

(1.9)

Payments of contingent consideration and deferred acquisition costs

(12.4)

Issuance of common stock under stock plans

1.4

2.7

Tax withholding payments for vested RSUs

(3.5)

(2.6)

Repurchase and retirement of common stock

(30.0)

(22.2)

Dividends paid on Series A Preferred Stock

(44.4)

(44.4)

Net cash used by financing activities – continuing operations

(173.9)

(279.9)

Net cash provided by financing activities – discontinued operations

Net change in cash balances of discontinued operations

Effect of exchange rate changes on cash

(21.8)

9.2

Net increase (decrease) in cash, cash equivalents and restricted cash

24.8

(118.8)

Cash, cash equivalents and restricted cash at beginning of period

158.9

277.7

Cash, cash equivalents and restricted cash at end of period

$         183.7

$         158.9

Cash paid for interest

$         140.7

$         145.2

Cash paid for taxes, net of refunds – continuing operations

$           36.6

$           35.8

Cash paid for taxes, net of refunds – discontinued operations

$           (1.8)

$             1.5

OPENLANE, Inc.
Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). They are not measurements of our financial performance under GAAP and should not be considered as substitutes for net income (loss), operating profit (loss) or any other performance measures derived in accordance with GAAP. Management believes that these measures provide investors additional meaningful methods to evaluate certain aspects of the company’s results period over period and for the other reasons set forth below.

EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.

Depreciation expense for property and equipment and amortization expense of capitalized internally developed software costs relate to ongoing capital expenditures; however, amortization expense associated with acquired intangible assets, such as customer relationships, software, tradenames and noncompete agreements are not representative of ongoing capital expenditures, but have a continuing effect on our reported results. Non-GAAP financial measures of operating adjusted net income (loss) and operating adjusted net income (loss) per share, in the opinion of the company, provide comparability of the company’s performance to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. In addition, operating adjusted net income (loss) and operating adjusted net income (loss) per share may include adjustments for certain other charges.

EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These measures may not be comparable to similarly titled measures reported by other companies.

The following tables reconcile EBITDA and Adjusted EBITDA to income (loss) from continuing operations for the periods presented:

Three Months Ended

December 31,

Year Ended

December 31,

(In millions), (Unaudited)

2024

2023

2024

2023

Income (loss) from continuing operations

$      52.3

$      13.6

$     109.9

$   (154.8)

Add back:

Income taxes

16.7

7.6

48.0

8.3

Finance interest expense

28.3

34.0

123.5

130.6

Interest expense, net of interest income

4.1

4.9

20.2

21.7

Depreciation and amortization

23.0

25.3

95.2

101.5

EBITDA

124.4

85.4

396.8

107.3

Non-cash stock-based compensation

1.1

3.6

15.9

17.4

Loss on extinguishment of debt

1.1

Acquisition related costs

0.1

2.0

0.6

3.1

Securitization interest

(25.7)

(31.4)

(112.7)

(120.4)

Gain on sale of business

(31.6)

(31.6)

Severance

2.4

2.1

11.6

5.5

Foreign currency (gains)/losses

6.5

(2.1)

5.8

(2.9)

Goodwill and other intangibles impairment

250.8

Contingent consideration adjustment

1.3

(Gain) loss on investments

(0.4)

(0.4)

(0.4)

Professional fees related to business improvement efforts

2.1

1.5

6.6

Impact for newly enacted Canadian DST related to prior years

(4.6)

5.4

Other

0.5

0.5

0.5

2.2

  Total addbacks/(deductions)

(51.7)

(23.6)

(103.4)

164.7

Adjusted EBITDA

$      72.7

$      61.8

$     293.4

$     272.0

 

Three Months Ended December 31, 2024

(Dollars in millions), (Unaudited)

Marketplace

Finance

Consolidated

Income from continuing operations

$           25.9

$           26.4

$           52.3

Add back:

Income taxes

7.3

9.4

16.7

Finance interest expense

28.3

28.3

Interest expense, net of interest income

4.1

4.1

Depreciation and amortization

20.0

3.0

23.0

EBITDA

57.3

67.1

124.4

Non-cash stock-based compensation

0.9

0.2

1.1

Acquisition related costs

0.1

0.1

Securitization interest

(25.7)

(25.7)

Gain on sale of business

(31.6)

(31.6)

Severance

2.3

0.1

2.4

Foreign currency (gains)/losses

6.4

0.1

6.5

(Gain)/loss on investments

(0.4)

(0.4)

Impact for newly enacted Canadian DST related to prior years

(4.6)

(4.6)

Other

0.5

0.5

  Total addbacks/(deductions)

(26.4)

(25.3)

(51.7)

Adjusted EBITDA

$           30.9

$           41.8

$           72.7

 

Year Ended December 31, 2024

(Dollars in millions), (Unaudited)

Marketplace

Finance

Consolidated

Income from continuing operations

$             1.7

$          108.2

$          109.9

Add back:

Income taxes

11.3

36.7

48.0

Finance interest expense

123.5

123.5

Interest expense, net of interest income

20.2

20.2

Depreciation and amortization

83.3

11.9

95.2

Intercompany interest

13.3

(13.3)

EBITDA

129.8

267.0

396.8

Non-cash stock-based compensation

12.9

3.0

15.9

Acquisition related costs

0.6

0.6

Securitization interest

(112.7)

(112.7)

Gain on sale of business

(31.6)

(31.6)

Severance

10.5

1.1

11.6

Foreign currency (gains)/losses

5.8

5.8

(Gain)/loss on investments

(0.4)

(0.4)

Professional fees related to business improvement efforts

1.2

0.3

1.5

Impact for newly enacted Canadian DST related to prior years

5.4

5.4

Other

0.3

0.2

0.5

  Total addbacks/(deductions)

4.7

(108.1)

(103.4)

Adjusted EBITDA

$          134.5

$          158.9

$          293.4

The following table reconciles operating adjusted net income and operating adjusted net income per diluted share to net income (loss) from continuing operations for the periods presented:

Three Months Ended

December 31,

Year Ended

December 31,

(In millions, except per share amounts), (Unaudited)

2024

2023

2024

2023

Net income (loss) from continuing operations

$      52.3

$      13.6

$     109.9

$   (154.8)

Acquired amortization expense

8.3

9.5

35.7

37.8

Impact for newly enacted Canadian DST related to prior years

(4.6)

5.4

Gain on sale of business

(31.6)

(31.6)

Loss on extinguishment of debt

1.1

Contingent consideration adjustment

1.3

Goodwill and other intangibles impairment

250.8

Income taxes (1)

6.1

(0.1)

3.3

(32.5)

Operating adjusted net income from continuing operations

$      30.5

$      23.0

$     122.7

$     103.7

Operating adjusted net income from discontinued operations

$          —

$        0.7

$          —

$        0.7

Operating adjusted net income

$      30.5

$      23.7

$     122.7

$     104.4

Operating adjusted net income from continuing operations per
share – diluted (2)

$      0.21

$      0.16

$      0.85

$      0.72

Operating adjusted net income from discontinued operations per
share – diluted

Operating adjusted net income per share – diluted

$      0.21

$      0.16

$      0.85

$      0.72

Weighted average diluted shares – including assumed conversion
of preferred shares

144.1

144.7

145.0

144.8

(1)

For the three months and years ended December 31, 2024 and 2023, each tax deductible item was booked to the applicable statutory rate. The deferred tax benefits of $52.5 million and $6.5 million associated with the goodwill and tradename impairments in 2023, respectively, resulted in the U.S. being in a net deferred tax asset position. Due to the three-year cumulative loss related to U.S. operations, we currently have a $35.8 million valuation allowance against the U.S. net deferred tax asset.

(2)

The Series A Preferred Stock dividends and undistributed earnings allocated to participating securities have not been included in the determination of operating adjusted net income for purposes of calculating operating adjusted net income per diluted share.

The following table reconciles EBITDA and Adjusted EBITDA to income from continuing operations for the 2025 guidance presented:

2025 Guidance

(In millions), (Unaudited)

Low

High

Income from continuing operations

$              100

$              114

Add back:

Income taxes

47

53

Finance interest expense

103

103

Interest expense, net of interest income

12

12

Depreciation and amortization

95

95

EBITDA

357

377

  Total addbacks/(deductions), net

(67)

(67)

Adjusted EBITDA

$              290

$              310

The following table reconciles operating adjusted net income from continuing operations and operating adjusted net income from continuing operations per diluted share to income from continuing operations for the 2025 guidance presented:

2025 Guidance

(In millions, except per share amounts), (Unaudited)

Low

High

Income from continuing operations

$              100

$              114

   Total adjustments, net

31

31

Operating adjusted net income from continuing operations

$              131

$              145

Operating adjusted net income from continuing operations per share – diluted

$             0.90

$             1.00

Weighted average diluted shares – including assumed conversion of preferred
shares

145

145

 

Analyst Inquiries:

Media Inquiries:

Itunu Orelaru

Laurie Dippold  

(317) 249-4559

(317) 468-3900

investor_relations@openlane.com 

laurie.dippold@openlane.com 

 

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SOURCE OPENLANE, Inc.

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Technology

Marquis Who’s Who Honors Rupin Chothani for Engineering Leadership

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UNIONDALE, N.Y., July 23, 2026 /PRNewswire/ — Marquis Who’s Who honors Rupin Chothani for his leadership in engineering and project management. With more than two decades of professional experience to his credit, Mr. Chothani leverages a unique expertise in fire and petrochemical solutions to find success in his field. As project manager, project engineer and proposal manager at Technip Energies N.V., Mr. Chothani ensures effective results.

Drawn to Engineering

Coming from a family of engineers, Mr. Chothani was naturally drawn to the profession. This inclination was reinforced by comprehensive aptitude and attitude tests administered at the age of 14, which highlighted his strengths in engineering and architecture. Ultimately, this direction reinforced his determination to pursue a degree in mechanical engineering.

By 2003, Mr. Chothani earned a Bachelor of Science in Mechanical Engineering at the University of Mumbai. After a brief role as a junior manufacturing engineer at Artech Cooling Tower Pvt. Ltd., he completed a Master of Science in Mechanical Engineering at the University of Bridgeport in 2006. In addition to these degrees, Mr. Chothani later achieved AutoCAD certification.

Following his graduation in 2006, Mr. Chothani joined CB&I Lummus / ABB Lummus Heat Transfer (now Lummus Technology) as a thermal engineer. Though his work at Lummus Technology lasted only three years, Mr. Chothani was greatly influenced by mentor figures at the company. These mentors, including Ken Catala, Peter Harvard, Chin Dang and Miller Alanath Carter, provided essential guidance.

Building a Family

In December 2008, Mr. Chothani married his wife, Cathy. Along with his son and daughter, his family has contributed richly to his success in engineering and they continue to inspire him to excel. In addition to their support, Mr. Chothani recognizes that there is no alternative to hard work and dedicated learning.

From Lummus Technology to Technip Energies N.V.

Following his work at Lummus Technology, Mr. Chothani worked with Maco Corporation India Pvt. Ltd. By 2011, he joined Complete Heat Transfer Solutions – Environ Energy Systems as a thermal and mechanical engineer. By 2013, Mr. Chothani became a part of Technip Energies N.V. as a furnace mechanical engineer. By 2023, he added to this role and became a project manager, project engineer and proposal manager at the company.

In his current role at Technip Energies N.V., Mr. Chothani is responsible for a variety of essential duties. He manages and executes on engineering projects for ethylene cracking furnaces and heaters, and oversees proprietary technologies. Additionally, he actively coordinates with procurement, logistics, mechanical engineering and process engineering teams to ensure effective results.

Plans for the Future

Moving forward, Mr. Chothani hopes to advance his project management skills, particularly within the firejet industry. At the same time, he aims to share his knowledge of the industry with the next generation of professionals. Outside of his professional ambitions, Mr. Chothani intends to prepare his children to find success, inspiring them and their peers with hands-on experiments and full-day events.

About Marquis Who’s Who®:

Since 1899, when A. N. Marquis printed the First Edition of Who’s Who in America®, Marquis Who’s Who® has chronicled the lives of the most accomplished individuals and innovators from every significant field, including politics, business, medicine, law, education, art, religion and entertainment. Who’s Who in America® remains an essential biographical source for thousands of researchers, journalists, librarians and executive search firms worldwide. The suite of Marquis® publications can be viewed at the official Marquis Who’s Who® website, www.marquiswhoswho.com.

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COALITION OF INDEPENDENT INTERNET PROVIDERS ASKS CRTC TO FIX ERRORS IN WHOLESALE FIBRE RATES

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Coalition of competitive ISPs say current fibre rates make competition impossible and threatens to harm millions of Canadian consumers

CHATHAM, ON, July 23, 2026 /CNW/ — A coalition of independent internet service providers (the Coalition) led by TekSavvy Solutions Inc. (TekSavvy) today applied to the Canadian Radio-Television and Telecommunications Commission (CRTC) to review and vary Telecom Order 2026-77, which set final wholesale rates for fibre internet services. In that decision, the CRTC approved wholesale rates for fibre internet services that are higher than the retail prices charged by the large carriers. This makes competition impossible, as independent providers are forced to either sell at a loss or set prices above the large carriers, leaving millions of Canadian consumers without competitive options for essential internet services.

The application identifies key errors that led the CRTC to approve severely inflated final wholesale rates, which make it economically impossible for independent providers to compete. The Coalition argues that the CRTC’s incorrect rates negate the very purpose of Canada’s wholesale framework, which is to foster competition in retail broadband markets. Specifically, the Coalition asks the CRTC to make three key changes to Telecom Order 2026-77:

Eliminate one cost factor that is inconsistent with the CRTC’s established costing principles, which artificially increased fibre wholesale rates by an estimated 25% to 30% (the Adjustment Factor).Reduce another element of the costing that is inflated above reasonable levels: The Coalition calls on the CRTC to reduce the markup applied to wholesale fibre services from 30% to 15%, reflecting declining costs, operational efficiencies, and the need to support competition.Correct technical errors relating to certain wholesale fibre speed descriptions.

“Canadians were promised greater competition for fibre internet services, but these rates make competition impossible.” said Andy Kaplan-Myrth, TekSavvy’s Vice President of Regulatory and Carrier Affairs. “The CRTC must correct these errors to ensure its wholesale rates promote broadband competition that challenges the market power of monopoly incumbents, lowers prices, and increases consumer choice.”

About the Coalition

The Coalition consists of competitive telecommunications providers and industry associations advocating for fair wholesale access to fibre networks and a competitive broadband marketplace that delivers affordable, high-quality Internet services to Canadians, including: TekSavvy Solutions Inc., BC Broadband Association (“BCBA”), Canada-Wide Internet Service Providers Association (“CanWISP”), Fibernetics Inc., ISP Telecom Inc., National Capital FreeNet Inc., Novus Entertainment Inc. and Purple Cow Internet Inc.

About TekSavvy Solution Inc.

Based in Chatham, Ontario, TekSavvy is Canada’s largest independent telecom service company. TekSavvy has been proudly delivering award-winning services and fighting for consumers’ rights for nearly 30 years. TekSavvy is committed to providing quality competitive choice and closing Canada’s digital divide.

SOURCE TekSavvy Solutions Inc.

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Monk Launches Voice Collections, Bringing AI Phone Calls and Callbacks to Accounts Receivable

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Monk’s collections agent, Julia, can now place outbound collection calls and answer inbound AR questions from a dedicated business number, so finance teams can use the channel that collects best without adding headcount.

Multimedia: Watch Voice Collections in action: https://youtu.be/w09PoN1yACE 

NEW YORK, July 23, 2026 /PRNewswire/ — Monk, the AI-native accounts receivable platform, today launched Voice Collections. Its collections agent, Julia, can now place outbound collection calls and answer inbound customer questions about invoices and payments from a dedicated phone number for each organization. The feature brings the phone, long the most effective collections channel and the hardest one to scale, into Monk’s Intelligent Collections.

Roughly $10 trillion sits in unpaid invoices worldwide, and the average invoice now takes 59 days to clear (Allianz). Most accounts receivable runs on email, and most of it waits. More than half of B2B invoices in the United States are overdue at any given time, and 92% of businesses are typically paid after their due date (Chaser, 2026). Phone calls recover overdue invoices two to three times better than email (Dunwise), yet 91% of finance teams still rely on email as their main follow-up channel and only 56% use the phone, because calling every overdue account by hand does not scale and a single human dunning call can cost $12 to $18 (HighRadius).

Voice Collections gives teams that coverage. Julia can call on the accounts a playbook flags for phone follow-up, and answer when a customer calls the same number back to ask about an invoice, a payment, or a bank detail. Businesses that follow up on 100% of overdue invoices are 76% more likely to be paid within a week (Chaser), and a voice agent is what makes full coverage possible.

Monk’s collections agent is already proven on the accounts it handles by email. Across Monk’s first 100 customers, Julia reaches customers with a 24% higher response rate than standard dunning and resolves 88.2% of collections with zero human intervention. Voice extends that reach to the phone.

“For years the assumption was that customers would not talk to an AI on the phone,” said George Kurdin, Founder and CEO of Monk. “The evidence now points the other way. People engage with a good voice agent, and in AR the phone was always the channel that collected best. We built Voice Collections so finance teams can finally use it at the scale email gave them.”

That assumption is worth retiring. In a University of Chicago Booth field study of roughly 70,000 interviews, people interviewed by a voice AI agent were 12% more likely to receive an offer, 18% more likely to start, and 17% more likely to still be there after 30 days, and 80% chose the voice AI over a human when given the choice. The setting was recruiting rather than collections, but the finding travels: given a capable voice agent, people lean in rather than hang up. A call also does something email cannot, which is secure a verbal promise to pay in the moment.

Built for finance, with the phone agents kept with strict guardrails

Voice in finance has to be constrained, and Monk designed Voice Collections around that from the start. The agent is read-only on the phone. It answers questions, confirms details, and routes the next step. It will not rewrite an invoice, change a payment status, or accept a sensitive payment change by voice.

The agent is also reference-based. If a caller asks about an invoice, Julia asks for both the company name and the invoice number before looking anything up, and it will not search broadly from a single detail. Every inbound and outbound call is kept in the collection record alongside the email history, so a callback is part of the same thread the team already sees, and anything that needs judgment escalates to a person.

“Voice in finance has to be careful by design,” said Joe Zhou, Co-Founder and CTO of Monk. “Julia will not browse across accounts or move money over the phone. A caller has to bring the company name and invoice number before it confirms anything, and every call lands in the record. In finance a 1% mistake is still unacceptable, so we built for that first and added the reach second.”

Teams run autonomous collections on Monk

Monk runs collections for finance teams at companies like Unify, Pump, Siro, and Elate, and Voice Collections extends what those teams already do by email onto the phone.

“We chose Monk to help automate our collections, a process previously demanding several hours a week of manual, one-off outreach,” said Will Stewart, Head of Finance and BizOps at Unify. “Today, our Monk agent is always running in the background and I have a single dashboard to manage AR from.”

At Pump, which manages volume across more than 1,500 customers, Monk has helped collect over $10 million in recent months.

Voice AI is now infrastructure

The timing reflects how far voice AI has come. It has moved from demo to infrastructure: Vapi has processed more than 1 billion calls, Bland handles over 3.5 million calls a week, and ElevenLabs raised a $500 million round at an $11 billion valuation in early 2026. Monk builds Voice Collections on that foundation and adds the part finance actually needs, which is the AR context, the controls, and the audit trail.

Voice Collections is available now as an opt-in feature. Monk configures the dedicated number and call behavior with each organization before turning it on in Collections. See it in action: https://youtu.be/w09PoN1yACE.

About Monk

Monk is the AI-native accounts receivable platform that helps finance teams turn revenue into cash. Its agent, Julia, runs collections, cash application, and forecasting as one connected system. Monk resolves 88.2% of collections with zero human intervention, reaches customers with a 24% higher response rate than standard dunning, reduces DSO by more than 40%, automatically matches 80% of incoming payments with a full audit trail, and gives finance teams back roughly 26 hours a month. Teams onboard in under a week and see results in their first month. More than $1.5 billion in receivables is managed on the platform, including for customers like Profound and ElevenLabs. Monk has raised $25 million and is based in New York.

Media contact
Kendall Warson
kendall@monk.com
+1 415-827-6585

Sources: Chaser 2026 Accounts Receivable research; Dunwise dunning research; HighRadius collection call cost analysis; University of Chicago Booth field study on AI in recruiting; voice AI figures compiled by Enterprise DNA; Federal Reserve data; Allianz Worldwide DSO survey.

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