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KAR announces $283M acquisition, quarterly profit

February 17, 2016

KAR Auction Services Inc. on Wednesday reported slightly lower quarterly earnings that missed analyst expectations.

The Carmel-based company also announced plans to spend $283 million in cash to acquire Brasher's Auto Auctions, a group of eight auctions in Idaho, Oregon, Nevada, Utah and California.

In 2015, Brasher's sold about 190,000 vehicles, generating revenue of about $140 million and earnings of about $34 million. Brasher's also provides financing to its customers and has a loan portfolio of nearly $55 million.

The transaction is expected to close in the first quarter.

KAR reported fourth-quarter earnings of $48.3 million, or 35 cents per share, a decrease of 4 percent from $50.3 million, or 35 cents per share, in the fourth quarter of 2014.

The company reported revenue of $682.2 million, compared with $606 million in the year-ago quarter, an increase of 13 percent.

Adjusted earnings of 40 cents per share missed the average estimate of six analysts surveyed by Zacks Investment Research of 43 cents per share.

For the year, the company reported profit of $214.6 million, or $1.51 per share. Revenue was reported as $2.64 billion.

KAR expects full-year earnings in 2016 in the range of $2.05 to $2.20 per share.

KAR shares closed $at 33.99 each Wednesday, up 2.9 percent on the day.

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