KAR’s Q2 net income approaches $60M
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CARMEL, Ind. –
Fueled by double-digit improvements year-over-year within three of its largest divisions, KAR Auction Services finished the second quarter with a 17-percent jump in net income.
KAR officials said this week that their Q2 revenue came in 12 percent higher at $658.3 million, up from $585.6 million in the same quarter a year ago. For the quarter that ended June 30, the company’s adjusted EBITDA climbed 10 percent to $170.0 million, up from $154.1 million.
And that 17-percent jump in net income propelled KAR to a figure of $0.41 per diluted share or $59.5 million. That’s higher than the year-ago marks of $50.8 million, or $0.36 per diluted share.
Looking at the company’s top-line metrics at the halfway point of 2015, KAR reported these year-over-year gains:
— Revenue of $1.291 billion, up 10 percent from $1.169 billion
— Adjusted EBITDA of $332.2 million, up 10 percent from $301.2 million
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— Net income of $114.0 million, or $0.79 per diluted share, up 59 percent from $71.5 million, or $0.51 per diluted share
Company officials also highlighted the second-quarter performance of its three main divisions, ADESA, Insurance Auto Auctions and Automotive Finance Corp. Those results included:
ADESA
— 14 percent volume and revenue growth and 17 percent growth in adjusted EBITDA
— 13 percent physical volume sold growth
— 0.5 percent expansion in adjusted EBITDA margins to 25.5 percent
IAA
— 14 percent growth in volume
— 11 percent growth in revenue
— 8 percent growth in adjusted EBITDA
— Inventory increased approximately 18 percent year-over-year
AFC
— Achieved growth in volumes, revenue and adjusted EBITDA of 13 percent, 8 percent and 3 percent, respectively
— Amended U.S. and Canadian securitization facilities resulting in a $225 million increase in committed liquidity and extension of facilities’ maturity dates to June 2018
— Managed receivables at June 30 stood at $1.477 billion, an increase of 26 percent year-over-year
Editor’s note: For more details about KAR’s recent performance including commentary from management, watch for a report in an upcoming edition of Auto Remarketing Today.
