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KAR Auction Reports 10 Percent Boost in Q3

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KAR

KAR Auction Services Inc., parent company of ADESA, reported third-quarter net income increased 10 percent to $52.3 million on revenue that rose 13 percent to $666.7 million Thursday.

The company said fluctuations in the Canadian exchange rate negatively impacted revenue by $15.2 million, Auto News reports. Fifteen of ADESA’s 66 auction sites are in Canada, according to a map on KAR Auction’s website.

Revenue at ADESA grew 14 percent to $351.4 million in the quarter; its gross profit increased 14 percent to $152.2 million.

The revenue increase was primarily attributable to a 15 percent increase in the number of vehicles sold by companies such as captive finance companies. The increase was partially offset by a 1 percent decrease in revenue per vehicle sold, which included the impact of a decrease in revenues of $11.3 million, as a result of fluctuations in the Canadian exchange rate.

The increase in ADESA’s vehicle volume also included a 10 percent rise in the number of vehicles owned by dealers.

Online sales volume at ADESA totaled approximately 38 percent of all vehicles sold in the quarter, up from approximately 36 percent in the same quarter last year.

http://www.autonews.com/article/20151105/RETAIL04/151109884/adesa-profits-revenue-grow-in-q3?cciid=email-autonews-daily

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