KAR Auction Services said it had first quarter revenue of $581.6 million in the first quarter, a decrease of 10 percent from the $645.5 million in the first quarter of 2020. Net income, however, saw an increase to $50.9 million during the quarter.
“The company has been subject to numerous COVID-19-related orders and directives that have caused us to modify our business practices,” the company said. “All ADESA auction locations in the U.S. and Canada are offering vehicles for sale via ADESA Simulcast, DealerBlock and Simulcast+. Auction locations have resumed offering ancillary and related services, where possible and as permitted by government directives. However, given the evolving health, economic, social and governmental environments, the continuing impact that COVID-19 could have on our business remains uncertain. The broader implications for our business and results of operations remain uncertain and will depend on many factors outside our control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the imposition of protective public safety measures, the timing and number of people receiving vaccinations and effectiveness, and the timing to which normal economic and operating conditions resumes. Even after the COVID-19 outbreak has subsided, we may continue to experience materially adverse impacts to our business.”
