KAR Auction’s profit sinks but exceeds expectations

Carmel-based KAR Auction Services  Inc. saw profit drop 29 percent in the first quarter due to costs associated with refinancing debt, the company reported Monday afternoon.

Profit in the quarter was $20.7 million, or 15 cents per share, compared with profit of $29.1 million, or 21 cents per share, in the first quarter of 2013.

Revenue rose 5 percent over the year-ago period, to $583.8 million, topping analyst predictions of $581.95.

Adjusted earnings for the quarter were 41 cents per share, beating analyst expectations by 4 cents.

KAR also announced a cash dividend of 25 cent per share, payable on July 3.

Shares in KAR dropped 1 cent Monday before the earnings release, to $30.19 per share.

KAR is the holding company for Adesa Inc., Insurance Auto Auctions Inc.  and Automotive Finance Corp.

 

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets on
{{ count_down }}