KAR Auction reports first quarter 2013 results
KAR Auction Services, Inc. reported its first quarter financial results for the period ended March 31, 2013.
For the first quarter of 2013, the company reported revenue of $557.6 million as compared with revenue of $506.9 million for the first quarter of 2012, an increase of 10 percent. Adjusted EBITDA for the quarter ended March 31, 2013 increased 1 percent to $136.2 million, as compared with Adjusted EBITDA of $134.9 million for the quarter ended March 31, 2012. Net income for the first quarter of 2013 increased 12 percent to $29.1 million, or $0.21 per diluted share, as compared with net income of $26.0 million, or $0.19 per diluted share, in the first quarter of 2012. Adjusted net income per share for the quarters ended March 31, 2013 and 2012 was $0.31. Adjusted net income for the first quarter 2013 excludes a $6.4 million net loss ($10.8 million pre-tax) due to costs incurred for processing vehicles damaged in Superstorm Sandy.
KAR’s board of directors also declared a cash dividend of $0.19 per share on the company’s common stock. The dividend is payable on July 3, 2013, to stockholders of record as of the close of business on June 24, 2013.
In the first quarter of 2013, IAA incurred a non-recurring pre-tax net loss of $10.8 million related to the processing of Superstorm Sandy vehicles. These losses are net of auction services revenue realized or to be realized upon the sale of the vehicles. The significantly higher tow costs incurred in order to respond to the requirements of customers, increased occupancy costs due to the leasing of temporary locations to process Superstorm Sandy vehicles and increased labor costs for the temporary work force brought into the New York and New Jersey area resulted in a net loss on the sale of the Superstorm Sandy vehicles. In addition, as a result of adverse weather conditions experienced in the United States and the volume of Sandy vehicles sold by IAA in the first quarter of 2013, the inventory of IAA’s total loss vehicles has increased over 10 percent at March 31, 20 13 compared to the prior year.