The parent company of the Adesa auto auction firm more than quadrupled its first-quarter profit on revenue that increased 5 percent.
KAR Auction Services Inc. reported financial results Tuesday for the quarter ended March 31. The company pulled in revenue of $482.7 million, up from $458.4 million in the same period last year.
Profit was $39.8 million, or 29 cents per share, compared with $8.1 million, or 6 cents per share, in the first quarter of 2010, when the company took a $25.3 million charge on the extinguishment of debt.
KAR is the holding company for Adesa Auction Services, the nation’s second-largest used-vehicle auction chain.
Adesa brought in $268.3 million during the quarter, down slightly from the $273.6 reported last year.
Sister company Insurance Auto Auctions Inc., a salvage auto auction firm, posted revenue of $175.9 million, up $17.1 million. Revenue at KAR's Automotive Finance Corp. improved to $38.5 million, compared to $26 million in the prior-year period.