WESTCHESTER, IL – Insurance Auto Auctions, Inc., (IAA) a provider of salvage and claims processing services, announced record vehicle returns during the third quarter. These results were driven by increased buying activity as a result of IAA’s live auctions with Internet bidding.
The company recorded revenues for the quarter of $68.1 million compared to $60.8 million in the third quarter of 2004. Fee income in the third quarter increased to $58 million versus $53.3 million in the third quarter of last year. IAA reported Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $11 million during the quarter compared to $9 million in the year-ago period. 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. A table reconciling this measure to the appropriate GAAP measurement is included in the Form 8-K, filed by the company.
“Improvements were driven by our ability to generate an average per unit selling price that was more than $300 higher than it was only two years ago, producing a significantly better return for both our insurance company suppliers and IAA,” said Tom O’Brien, CEO. “Our combined offering of live auctions and Internet bidding capability has generated continued buying activity growth and, consequently, much higher average selling prices.”