KAR Auction Services Inc.’s fourth-quarter earnings soared on a one-time gain related to the changes in federal corporate taxes.
Net income nearly quadrupled to $172.8 million, as the parent of used-vehicle auction giant ADESA recorded a $69.7 million gain on its taxes in the latest quarter vs. tax payments of $26.7 million a year earlier.
Operating adjusted net jumped 36 percent to $85.5 million, the company said in a statement Tuesday.
Revenue rose 9.4 percent to $890.4 million.
ADESA: Operating profit rose 8.3 percent, as revenue rose 7 percent. Sales at its physical auctions fell 3.1 percent to 507,000 vehicles, while online sales rose 34 percent to 237,000.
Insurance Auto Auctions: Operating profit climbed 12 percent, as revenue gained 11 percent. Sales rose 4.1 percent to 635,000 vehicles.
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