Insurance Auto Auctions, Inc., reported higher net earnings for the quarter ended June 27, 2004. The company recorded net earnings of $2.6 million, or $0.22 per diluted share, versus net earnings of $1.3 million, or $0.11 per diluted share, for the same quarter a year ago. Revenues for the quarter were $60.0 million compared with $53.3 million in the second quarter of 2003. Fee income in the second quarter increased to $51.8 million versus $43.1 million in the second quarter of last year.
Providing an update on the company's technology platform, Tom O'Brien, CEO said, "Following the completion of our system development last year, we remain focused on using our new IT system to create further efficiencies and drive additional visibility for both the management team and our customers. One particular area of focus was the rollout of our recently developed real-time bidding platform, I-bid LIVE, to a number of our major branches. Following a successful testing period in the early part of the quarter, we were able to fully roll it out into ten branches by the end of the second quarter. We plan to complete the rollout of I-bid LIVE by the end of the year."
The company also continued its expansion strategy with the addition of a new greenfield facility in El Paso, Texas, and a strategic acquisition in Jackson, Miss.
O'Brien concluded, "In our industry, the volumes in the third and fourth quarters are typically lower than those in the first half of the year. That said, our improved cost structure combined with recent market share gains give us reason to anticipate improved year-over-year earnings results. Assuming no material changes in current volume and pricing expectations, we anticipate earnings per share to be approximately 75 to 80 cents for the full year, representing a significant improvement over the prior year.”