IBJNews

KAR Auction revenue up, profit down

Back to TopCommentsE-mailPrintBookmark and Share

Carmel-based KAR Auction Services Inc. saw revenue climb but profit shrink in the first quarter, the company said Monday afternoon.

Revenue for the quarter ended March 31 reached $506.9 million, up 5 percent from $484.7 million in the first quarter of 2011.

The revenue slightly exceeded analyst estimates.

KAR reported first-quarter earnings of $26 million, or 19 cents per share, compared to $39.8 million, or 29 cents per share, in the same quarter a year ago.

Adjusted earnings for quarter fell 24 percent, to 31 cents per share, in line with analyst expectations.

Earnings dropped, KAR said, because it paid an effective tax rate of 41.4 percent in the most recent quarter compared to a rate of 2.5 percent in the first quarter of 2011. The 2011 period benefitted from the reversal of $14.4 million in tax reserves, the company said.

Adjusted earnings before interest, taxes, depreciation and amortization rose 6 percent from a year ago, to $134.9 million.

For all of 2012, KAR said it expects earnings in a range of 75 cents to 80 cents per share.

KAR stock fell 60 cents, or 3.4 percent, to $16.87 per share in early trading Tuesday.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
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
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

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