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.