Adesa parent turns profit on lower revenue

Back to TopCommentsE-mailPrintBookmark and Share

Carmel-based KAR Auction Services Inc. on Monday said the company turned a profit in the third quarter, although revenue decreased slightly from last year's third period.

The holding company for Adesa Auction Services, the nation’s second-largest used-vehicle auction chain, reported a profit of $8.6 million, compared with a loss of $169.9 million in the same time frame last year. KAR's big third quarter loss in 2008 was the result of subsidiary Automotive Finance Corp., which lends money to car dealers to buy used vehicles at auction, taking a $161.5 million charge due to the declining value of its loan portfolio.

In the most recent quarter, KAR's revenue fell 3 percent, to $430.1 million, from $444.6 million in the third quarter of 2008.

Adjusted earnings before interest, taxes depreciation and amortization increased 12 percent, to $114 million, in the most recent quarter.

KAR didn't  comment on its performance.

The company last week announced that it changed its name from KAR Holdings Inc. to KAR Auction Services Inc.

“This name more accurately reflects the businesses and services that we as a company provide,” CEO Jim Hallett said in a written release.

Adesa operates 62 used-vehicle auction sites across North America. KAR also is the holding company for Insurance Auto Auctions, a salvage auto auction company, and Automotive Finance Corp., a provider of financing to independent and franchised used-vehicle dealers.

Insurance Auto Auctions has 152 locations and Automotive Finance Corp. has 87.



  • Say anything they want
    This company just says anything they think you might believe. They are so corrupt it makes a lot of us sick. They are going broke - you will see.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ