ADESA sales volumes up 17%
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CARMEL, Ind. –
KAR Auction Services reported a 14-percent year-over-year increase in first-quarter net income, pulling in $69.2 million, with operating revenues climbing from $758.2 million to $866.6 million.
“Our first quarter 2017 results reflect a solid start to the year with contributions from across our diversified platform of businesses,” KAR chairman and chief executive officer Jim Hallett said in Tuesday’s earnings release.
“We are well-positioned for continued growth, and our development and acquisition of new capabilities like DRIVIN will enhance the products, services and value we deliver to our customers.”
The company’s busy acquisition activity over the past year certainly seems to be benefiting the ADESA auction arm of its business. Its physical auctions sold 603,000 units during the quarter, which is up 17 percent from Q1 2016, but static when acquisitions are excluded.
KAR announced ADESA’s acquisition of the Brasher’s auctions in February 2016, a deal that closed at the end of that quarter. ADESA also bought Sanford Auto Dealers Exchange and Flint Auto Auction in 2016.
ADESA’s online-only volume in Q1 was at 215,000 units, up from 188,000 in the same period of 2016.
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ADESA reported revenue of $498 million, up from $414.8 million in Q1 2016. Gross profits were at $207.1 million, up from $176.4 million.
The Insurance Auto Auctions business unit of KAR increased revenue from $269.6 million to $297.4 million, with AFC dipping from $73.9 million to $71.2 million.
