KAR Auction Services Inc.'s fourth-quarter earnings soared on a one-time gain related to the changes in federal corporate taxes.
Net income nearly quadrupled to $172.8 million, as the parent of used-vehicle auction giant ADESA recorded a $69.7 million gain on its taxes in the latest quarter vs. tax payments of $26.7 million a year earlier.
Operating adjusted net jumped 36 percent to $85.5 million, the company said in a statement Tuesday.
Revenue rose 9.4 percent to $890.4 million.
ADESA: Operating profit rose 8.3 percent, as revenue rose 7 percent. Sales at its physical auctions fell 3.1 percent to 507,000 vehicles, while online sales rose 34 percent to 237,000.
Insurance Auto Auctions: Operating profit climbed 12 percent, as revenue gained 11 percent. Sales rose 4.1 percent to 635,000 vehicles.
Automotive Finance Corp.: Operating profit rose 31 percent on a 19 percent revenue increase.
For 2017, KAR's revenue rose 9.8 percent to $3.46 billion. Even though the federal tax cuts applied only to the fourth quarter, it was enough to boost full-year income 63 percent to $362 million. Operating adjusted net in 2017 climbed 20 percent to $344.9 million.
KAR Auction Services, of Carmel, Ind., provides auto auctions, salvage, financing, logistics and other services, including the sale of more than 5 million vehicles valued at more than $40 billion through auctions.