Adesa parent increases revenue, profit

May 6, 2010

Carmel-based KAR Auction Services Inc. on Wednesday reported a first-quarter profit of $8.1 million, reversing a $3.5 million loss in the same period last year.

Total revenue increased 4 percent, to $458.4 million.

Earnings before interest, taxes, depreciation and amortization amounted to $120.1 million, up 24 percent from $97.1 million in the first quarter of 2009.

Last year, the company raised $300 million through its initial public offering, paid down $250 million of term loan debt and added two new facilities. KAR is the holding company for Adesa Auction Services, the nation’s second-largest used-vehicle auction chain.

Adesa’s first-quarter revenue fell about 5 percent, to $273.6 million. Profit was $117.6 million, down slightly from $119.3 million. The company attributed the revenue decline to a 10 percent drop in the number of vehicles sold, but said it was partially offset by a 5 percent increase in revenue per vehicle sold.


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