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KAR Auctions reports $14M quarterly loss

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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. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

  2. 85 feet for an ambitious project? I could shoot ej*culate farther than that.

  3. I tried, can't take it anymore. Untill Katz is replaced I can't listen anymore.

  4. Perhaps, but they've had a very active program to reduce rainwater/sump pump inflows for a number of years. But you are correct that controlling these peak flows will require spending more money - surge tanks, lines or removing storm water inflow at the source.

  5. All sewage goes to the Carmel treatment plant on the White River at 96th St. Rainfall should not affect sewage flows, but somehow it does - and the increased rate is more than the plant can handle a few times each year. One big source is typically homeowners who have their sump pumps connect into the sanitary sewer line rather than to the storm sewer line or yard. So we (Carmel and Clay Twp) need someway to hold the excess flow for a few days until the plant can process this material. Carmel wants the surge tank located at the treatment plant but than means an expensive underground line has to be installed through residential areas while CTRWD wants the surge tank located further 'upstream' from the treatment plant which costs less. Either solution works from an environmental control perspective. The less expensive solution means some people would likely have an unsightly tank near them. Carmel wants the more expensive solution - surprise!

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