David Gartzke, CEO of the Carmel, Ind., auction company, says these moves will help ADESA realize its growth objectives.
ADESA seeks to boost annual sales from just under 2 million vehicles in 2005 to 3 million by the end of the decade.
"The board and management are committed to investment for growth," Gartzke told industry analysts during a conference call last month.
Gartzke said ADESA intends to acquire independent vehicle-auction and salvage-auction sites.
The company will build facilities in areas where there are no opportunities for acquisition, he added.
"We may be announcing some greenfields in the next six months or so," Gartzke said.
ADESA plans to relocate auction sites in Dallas, Phoenix and Kansas City, Mo., he said. Several of those sites are too small and outdated, he said. The real estate would be worth more to ADESA if it were sold for another business purpose, Gartzke added.
ADESA earned net income of $23.1 million on revenue of $238.6 million in the fourth quarter of 2005. In the year-ago quarter, the company had net income of $21.9 million on revenue of $223.4 million.
For all of 2005, ADESA reported net income of $125.5 million on revenue of $968.8 million. That compared with net income of $105.3 million and revenue of $925.5 million in 2004.
The company sold about 450,000 used vehicles in the fourth quarter of 2005. That compared with sales of about 448,000 vehicles in the year-ago quarter.
ADESA sold roughly 1.93 million vehicles last year. In 2004 it sold about 1.95 million vehicles.
ADESA owns 53 vehicle-auction sites and 37 salvage-auction sites in North America.
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