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KAR Auctions reports $14M quarterly loss

Associated Press
August 9, 2011
Keywords
Automotive, Distribution & Logistics, KAR Auction Services, Transportation, Distribution & Logistics
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Used and salvaged vehicle auctioneer KAR Auction Services Inc. said it lost $14.3 million in the second quarter due to the early payoff of debt.

The loss, of 11 cents per share, compared with a profit of $28.6 million, or 21 cents per share, in the April-June period a year ago.

Carmel-based KAR announced in May that it redeemed $450 million worth of notes using a new $1.7 billion, six-year term loan and a $250 million five-year revolving credit facility. Without the costs of premiums to redeem those notes and other charges, KAR said it would have made 32 cents per share, which was in line with Wall Street's estimates.

KAR said revenue was flat at $470.6 million. Analysts polled by FactSet expected revenue of $488 million.

KAR said it adjusted net income of $1.20 to $1.25 per share for the year. Analysts are forecasting $1.22 on that basis.

The company said it expects used car volumes to remain tight through the rest of the year thanks to the auto industry's sharp downturn three years ago.

Shares slipped 29 cents, or 1.8 percent, to $16.41 in extended trading following the release of the earnings report. They finished the regular session up 4 percent, or 70 cents, at $16.70 amid a broad rally on Wall Street.

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  1. First, the Athenaeum is going to have to get past the hurdle with the Lockerbie residents and the agreement that the parcel would be residential. Second, and in my opinion, this prime piece of property should include parking, PLUS, a black box theater(s), some market rate and affordable artist housing and a plan to renovate and reconfigure the second story theater. I would negotiate to add the DeHaan property surface parking lot into the development mix, place a one story surface parking garage on the DeHaan lot on the street level (for the Dehaan tenants use during the daytime) and add a second story to the garage that would become an addition to the current second story theater and then change the direction of the theater by moving the stage across the alley and on top of the DeHaan lot parking. You can add all the stage elements that are currently missing from the Athenaeum stage to make it more attractive for use by Ballet, Opera and traveling productions. Plus, the theater changes would probably help solve some of the soundproofing issues. Alas,it does not seem to be a part of the strategic plan to conduct a study to determine best use of the property. Seems like the current plan is a quick and easy move that ignores the property best use/potential and any strategic property planning for the effect on future generations.

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