KAR Auction Services, Inc. (reported its third quarter financial results for the three months ended September 30, 2015. For the third quarter of 2015, the company reported revenue of $666.7 million as compared with revenue of $589.1 million for the third quarter of 2014, an increase of 13 percent.
Adjusted EBITDA for the quarter ended September 30, 2015 increased 9 percent to $163.1 million, as compared with Adjusted EBITDA of $149.1 million for the quarter ended September 30, 2014. Net income for the third quarter of 2015 increased 10 percent to $52.3 million, or $0.37 per diluted share, as compared with net income of $47.5 million, or $0.33 per diluted share, in the third quarter of 2014. Adjusted net income per diluted share for the quarter ended September 30, 2015 increased 5 percent to $0.42 versus adjusted net income per diluted share of $0.4 0 for the quarter ended September 30, 2014. For the quarter ended September 30, 2015, fluctuations in the Canadian exchange rate negatively impacted revenue by $15.2 million, Adjusted EBITDA by $6.0 million and adjusted net income by $3.0 million, or $0.02 per diluted share.
For the 9 months ended September 30, 2015, the company reported revenue of $1,957.4 million as compared with revenue of $1,758.5 million for the nine months ended September 30, 2014, an increase of 11 percent. Adjusted EBITDA for the nine months ended September 30, 2015 increased 10 percent to $495.3 million, as compared with Adjusted EBITDA of $450.3 million for the nine months ended September 30, 2014. Net income for the first nine months of 2015 increased 40 percent to $166.3 million, or $1.16 per diluted share, as compared with net income of $119.0 million, or $0.84 per diluted share in the first nine months of 2014. Net income for the nine months ended September 30, 2014 was negatively impacted by $19.2 million ($0.14 per diluted share) resulting from the company’s refinancing activities. Adjusted net income per diluted share for the nine months ended September 30, 2015 increased 7 percent to $1.30 versus adjusted net income per diluted share of $1.22 for the nine months ended September 30, 2014. For the nine months ended September 30, 2015, fluctuations in the Canadian exchange rate negatively impacted revenue by $34.9 million. Adjusted EBITDA by $13.2 million and adjusted net income by $6.5 million, or $0.05 per diluted share.
The company also disclosed a cash dividend of $0.27 per share on the company’s common stock. The dividend is payable on January 7, 2016, to stockholders of record as of the close of business on December 22, 2015.
Published in the January 2016 Edition of American Recycler News