Insurance Auto Auctions Announces Improved Fourth Quarter and Full-Year Results
Published March 31st, 2006
Press Release
Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today 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 our senior credit agreement of $10.1 million during the quarter. A table reconciling this measure to the appropriate GAAP measurement is included in the Form 8-K that the Company filed today. 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.
