NEW YORK: KAR Auction Services Inc., parent company of ADESA, reported third-quarter net income increased 10 percent to $52.3 million on revenue that rose 13 percent to $666.7 million.
The company said fluctuations in the Canadian exchange rate negatively impacted revenue by $15.2 million. Fifteen of ADESA’s 66 auction sites are in Canada, according to a map on KAR Auction’s website.
Revenue at ADESA grew 14 percent to $351.4 million in the quarter; its gross profit increased 14 percent to $152.2 million.
The revenue increase was primarily attributable to a 15 percent increase in the number of vehicles sold by companies such as captive finance companies. The increase was partially offset by a 1 percent decrease in revenue per vehicle sold, which included the impact of a decrease in revenues of $11.3 million, as a result of fluctuations in the Canadian exchange rate.
The increase in ADESA’s vehicle volume also included a 10 percent rise in the number of vehicles owned by dealers.
Online sales volume at ADESA totaled approximately 38 percent of all vehicles sold in the quarter, up from approximately 36 percent in the same quarter last year.
Vehicles sold at ADESA’s brick-and-mortar sites increased 13 percent in the quarter compared to the same quarter last year.
Total revenue per vehicle sold at ADESA during the quarter decreased $4 to $561 and included the impact of a decrease of $18 per vehicle sold because of fluctuations in the Canadian exchange rate.
Online-only auction revenue per vehicle sold increased $13 to $110. Revenue per vehicle sold at ADESA’s physical auction grew $2 to $699 for the quarter.
Per vehicle revenue at physical auctions is much higher than that of online sales because it includes buyer and seller auction fees, ancillary and other related services and non-auction services.
