Illinois-based Insurance Auto Auctions Inc., a provider of automotive salvage and claims processing services in the United States, reported higher net earnings for the quarter ended June 27, 2004.
The company recorded net earnings of $2.6 million, or $0.22 per diluted share, versus net earnings of $1.3 million, or $0.11 per diluted share, for the same quarter a year ago. Revenues for the quarter were $60.0 million compared with $53.3 million in the second quarter of 2003. Fee income in the second quarter increased to $51.8 million versus $43.1 million in the second quarter of last year.
“For the second consecutive quarter we are pleased to announce financial results that exceeded our expectations,” Tom O’Brien, CEO, commented. “Our overall goal has been to drive customer service and continued improvements in our operating model, and we were able to accomplish that goal during the quarter. We continued to increase our market share for the second quarter, demonstrated by a double-digit growth in volumes sold. We also continue to generate higher average returns for our customers compared to the prior year. Our business model focuses on providing our customers with live auctions complemented with an Internet bidding capability, which we believe offers the optimal solution for both our insurance company suppliers and our buyers.”
Providing an update on the company’s technology platform, O’Brien said, “Following the completion of our system development last year, we remain focused on using our new IT system to create further efficiencies and drive additional visibility for both the management team and our customers. One particular area of focus was the rollout of our recently developed real-time bidding platform, I-bid LIVE(SM), to a number of our major branches.
“Following a successful testing period in the early part of the quarter, we were able to fully roll it out into ten branches by the end of the second quarter. We plan to complete the rollout of I-bid LIVE by the end of the year.”
The company also continued its expansion strategy with the addition of a new greenfield facility in El Paso, Texas and a strategic acquisition in Jackson, Mississippi.
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