Indiana-based ADESA Inc., a publicly traded provider of wholesale vehicle auctions and used vehicle dealer floorplan financing, reported its first quarter financial results for the period ended March 31, 2005.
For the first quarter 2005, the company reported net income of $35.0 million or $0.38 per share, on revenue of $244.0 million. For the first quarter of 2004, ADESA reported net income of $33.3 million or $0.38 per share, on revenue of $247.3 million. Per share amounts for the first quarter of 2005 are based upon a weighted average share count of 91.2 million shares versus 88.6 million shares in the first quarter of 2004.
First quarter and recent highlights:
* Achieved Q1 2005 operating profit of $52.3 million for Auction and Related Services segment and $17.0 million for Dealer Financing segment (AFC);
* Strengthened management team via promotions of Brad Todd to chief operating officer of ADESA Corporation LLC (ADESA’s U.S. used vehicle auction subsidiary) and Paul Lips to senior vice president of Operations of ADESA Corporation LLC. Todd will continue to serve as president of AFC;
* Continued growth of ADESA’s real-time interactive Internet bidding system, LiveBlock. As compared to the first quarter of 2004, nearly tripled the number of LiveBlock dealers while achieving greater than a five- fold increase in number of LiveBlock auctions;
* Achieved record first quarter 2005 volume at AFC of 278,977 loan
* Repurchased approximately 0.3 million shares during the first quarter and an additional 1.0 million shares through April 26, 2005, for a combined cost of approximately $31.1 million;
* Declared third consecutive quarterly dividend of $0.075 per share.
“As demonstrated by our first quarter 2005 performance, ADESA generated solid growth in earnings despite the constraints in institutional vehicle supply,” said ADESA Chairman, President and Chief Executive Officer, David Gartzke.
As discussed on the company’s February, 2005 conference call, ADESA continues to expect 2005 income from continuing operations to be approximately $1.37 to $1.43 per share.
This guidance includes expected increases in interest expense and corporate expenses resulting from a full year of ADESA as an independent public company as well as expected increases in depreciation and amortization.
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