KAR Auction Services Inc., parent company of ADESA, said its net income more than doubled to $54.5 million on revenues that increased 8.3 percent to $632.4 million in the first quarter.
KAR Auction’s net surged when compared against a year-earlier quarter net of $20.7 million, when it took a $20.6 million hit as a result of refinancing activities, according to earning results released by company Tuesday.
Citing a $30 million to $35 million investment in a greenfield auction site it is building in Chicago, KAR Auction CEO Jim Hallett today said the company is well-positioned for future growth.
He also noted the Carmel, Ind., company’s desire to acquire well-run independent auction houses such as one it purchased in March in the Pittsburgh area.
“We feel that acquiring selective independent auctions allows us to expand our buyer base, introduce the KAR suite of digital services as well as provide us with a good mix of commercial and dealer consignment sellers,” Hallett said today during the company’s quarterly earnings conference call.
Revenue at KAR Auction’s ADESA unit, the nation’s second-largest wholesale auto auction, grew 10 percent to $328.0 million in the first quarter, KAR Auction said. ADESA’s net income grew 42 percent to $22.5 million.