Net income at KAR Auction Services Inc., parent of ADESA auctions, jumped 30 percent in the first quarter largely on a sharp drop in income taxes.
Revenue rose 9.7 percent to $950.5 million, the Carmel, Ind., company said Tuesday after markets closed.
Net jumped to $90.0 million, while operating profit rose 10 percent to $157.8 million. Income taxes fell 23 percent to $26.4 million.
"We are pleased with our solid first quarter performance and consolidated results," CEO Jim Hallett said in a statement. KAR will hold a conference call to discuss the financial results on Wednesday.
At ADESA, KAR's largest unit, operating profit fell 11 percent to $82.1 million, as revenue rose 6 percent to $528.1 million. Excluding acquisitions, revenue rose 4.6 percent.
The revenue gain was mainly due to a 7.3 percent increase in vehicles sold -- a 5 percent gain excluding acquisitions -- partially offset by a decrease in average revenue per vehicle sold. That decrease came as the number of vehicles sold at physical auctions fell 5.6 percent to 569,000 units, while vehicles sold online climbed 44 percent to 309,000.
Revenue per vehicle sold rose $65, or 8.6 percent, to $820 for those sold at physical auctions, and rose $6, or 5.4 percent, to $117 for those sold online.
At Insurance Auto Auctions, KAR's salvage-auction arm, operating profit grew 28 percent to $76 million on a 13 percent rise in revenue to $337.3 million.
Both the number of vehicles sold at IAA auctions, and the revenue per vehicle sold, grew. On Feb. 27, KAR said it plans to spin off IAA within a year.