Insurance Auto Auctions Announces First Quarter Results
Press Release
Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today announced record vehicle returns for the first quarter 2006. These results were driven by increased buying activity as a result of IAA’s live auctions combined with Internet bidding capability.
The Company recorded revenues for the quarter of $77.7 million compared to $70.9 million in the first quarter of 2005, an increase of 10 percent year-over-year. Fee income in the first quarter increased to $66.8 million versus $61.1 million in the first quarter of last year. IAA reported Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), consistent with the definition in our senior credit agreement, of $14.3 million during the quarter. Consolidated EBITDA is a non-GAAP measure that the Company uses as a primary measurement of its financial results because it is indicative of the relative strength of the Company’s operating performance.
“During the first quarter, we continued to experience rapid sales growth, solid profitability and excellent cash flow due to our ability to add many new buyers to our customer network, which has translated into the best returns in the industry for our suppliers,” said Tom O’Brien, CEO. “We have stayed committed to our dual bidding strategy that combines live physical auctions with a real-time Internet bidding capability using our state-of-the-art I-bid LIVE product.”
O’Brien added, “We have also identified several opportunities to expand our business through acquisitions and greenfields, which will support our ongoing commitment to improving our service offering and adding new buyers to our base, ultimately allowing us to provide even better returns to our suppliers. We once again made significant improvement on the expansion front during the quarter, including our acquisition of NW Penn Auction Sales/Warren County Salvage in Erie, Pennsylvania, which leverages the Company’s existing regional coverage in this market. Since the close of the quarter we have also acquired Indiana Auto Storage Pool’s two locations in Indiana and moved into a new, larger facility in Kansas City, Kansas. All four of these new facilities are already up-and-running on our technology platform and are allowing us to meet the demands of our growing buyer base.”
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[...] Auction Info Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today announced record vehicle returns for the first quarter 2006. These results were driven by increased buying activity as a result of IAA’s live auctions combined with Internet bidding capability. [...]
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