WESTCHESTER, IL – Insurance Auto Auctions (IAA), a provider of automotive salvage and claims processing services, announced improved financial results and record vehicle returns during both the fourth quarter and full-year 2005. 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 $69.9 million compared to $62.2 million in the fourth quarter of 2004. Fee income in the fourth quarter increased to $59.6 million versus $53.7 million in the fourth quarter of last year. IAA reported consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) consistent with the definition in IAA’s senior credit agreement of $10.1 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.
“In the fourth quarter, we were once again able to significantly grow sales and earnings over the prior year as our enhanced service offering continued to deliver our suppliers with industry-leading returns,” said Tom O’Brien, CEO. “Our dual bidding strategy of supplementing live physical auctions with a real-time Internet bidding capability through our I-bid LIVE product, which now includes additional state-of-the-art technology enhancements such as a multi-screen bidding option, has allowed us to generate a significantly higher average selling price than the prior year.”
The company recorded full-year 2005 revenues of $280.9 million compared to $240.2 million in 2004. Fee income for the year increased to $240.1 million versus $208.7 million during the prior full year. IAA reported consolidated EBITDA of $52.6 million for the full year.