IAA's dual bidding strategy has continued to drive more buyersto the Company's auctions than ever before, resulting inincreased bidding activity and higher vehicle returns for itsinsurance company suppliers.
"Combining the feedback we have been receiving from ourcustomers with our internal data, we believe our vehicle returnswere the highest in the industry during the quarter, which wefeel is a direct result of our dual bidding platform andimproved levels of customer service," said Tom O'Brien, CEO. "Onaverage, our returns have increased more than $300 per unitcompared to 2003, providing a significantly better return forour insurance company suppliers. Our live auctions, most ofwhich feature Run & Drive(R) auction lanes, are supplementedwith our state-of-the-art Internet bidding capability, givingour growing customer base the flexibility to see and bid on ourvehicles up close or through the Internet from anywhere in theworld in a real-time setting. Enthusiastic buyer support of ourauction model is clearly evident from the increase in buyerparticipation we have experienced, both at live auctions and viathe Internet. By encouraging more buyers to come on to ourbidding platform than ever before, we believe that during thequarter we were able to generate more bidding activity and thehighest vehicle returns in the industry."
Commenting further on the Company's recent operatingperformance, O'Brien said, "We haven't missed a beat throughoutthe organization since the close of the Kelso & Companyacquisition in late May. The transaction has allowed us to focuseven more of our time and energy on improving our operations andservice levels to our customers, translating into much higherreturns for our suppliers and higher profits for IAA. TheCompany generated revenues of $71.9 million in the secondquarter, compared with $60.0 million in the same quarter of2004. Gross profit margins improved to 26% in the secondquarter, up from 22% in the same quarter of last year. We alsocontinued to strategically expand during the quarter,specifically in Jacksonville, Altoona and Charleston, providingIAA with a greater geographic reach to meet the needs of ourcurrent and potential customers. Going forward we will continueto target new strategic opportunities that will further increaseour buyer base and maintain our momentum of generatingsignificantly higher returns."
S-4 Filing: Insurance Auto Auctions also filed an S-4 today thatprovides supplemental financial information to the resultsprovided herein. Please refer to this document for additionalfinancial information about the Company and its quarterlyresults.
About Insurance Auto Auctions, Inc.: Insurance Auto Auctions,Inc., founded in 1982, a leader in automotive total loss andspecialty salvage services in the United States, providesinsurance companies with cost-effective, turnkey solutions toprocess and sell total-loss and recovered-theft vehicles. TheCompany currently has 80 sites across the United States.
Additional information about Insurance Auto Auctions isavailable on the World Wide Web at:
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