In this issue ...
Fenix Parts, Inc. has recently added two new auto recycling businesses. Tri-City Auto Salvage, Inc. in Greensboro, N.C. and Butler Auto Sales & Parts in Forest City, N.C. Both announcements were made last week. Tri-City Auto Salvage was acquired for $6.6 million in cash and 42, 363 in shares of Fenix common stock. Butler Auto Sales & Parts was bought for $8.3 million in cash and 106,918 in stock. Both companies are full-service facilities.
Butler Auto Sales & Parts was the first location the company bought in North Carolina. According to Fenix Parts CEO Kent Robertson, it fills the key position on the East Coast between its Jacksonville, Fla. locations and its Northeastern U.S. location. Tri-City Auto Salvage serves central North Carolina.
“Tri-City builds off of our recent acquisition of Butler Auto Sales and Parts in Forest City, NC, establishing Fenix as a leader in the state's strong automotive recycling industry,” said Robertson. “In addition, with 16 facilities strategically located throughout the East Coast and a strong pipeline of acquisition candidates, Fenix Parts remains well positioned to execute our long-term growth strategy.”
Fenix was founded in January 2014 to combine eight founding companies and create a network that offers sales, fulfillment and distribution in key regional markets in the United States and Canada. The Fenix companies have been in business an average of more than 25 years and operate from 16 locations.
Insurance Auto Auctions, Inc. (IAA), a business unit of KAR Auction Services, has launched two new product lines as part of its Total Loss Solutions™, IAA Inspection Services and IAA Title Services.
“Our customers are consistently focused on providing the best possible experience for their insureds while increasing the efficiency of their claims process,” said John Kett, CEO and president, IAA. “The total loss claims process has become a more important success factor for our property and casualty carrier clients, as well as a primary influencer of customer satisfaction and retention.”
“These are the first products IAA is bringing to market within our Total Loss Solutions strategy,” commented Pat Walsh, senior vice president of business development, IAA. “We completed extensive research on the total loss claims process and our results clearly indicate that opportunity exists to help our clients improve customer satisfaction and gain economic benefits.”
IAA Inspection Services was developed to reduce the cycle time from date-of-loss to total loss determination. Three offerings are included: Enhanced Images, Condition Report and Appraisal. These offerings are designed to allow direct towing to the salvage auction, where high-resolution imagery can support virtual inspection of vehicles, resulting in faster cycle time and reduced claims cost. Efficiencies within the inspection process can be further leveraged by IAA providing a pre-loss vehicle condition and option report, and a vehicle valuation to provide a comprehensive solution to the total loss claims process.
IAA Title Services includes three offerings, all designed to suit the specific needs of the customer, including: Title Procurement, Title Solutions and Title Direct. Title Procurement is a seamless offering that can be used by carriers to manage the document procurement process on all total loss claims. Title Solutions can be utilized on those complex claims with unresolved title and document issues. Title Direct is a service that allows documents from multiple sources, typically the insured and lienholder, to be sent directly to an IAA Branch, reducing cycle time and cost for the carrier.
Visit www.iaai.com for more information.
Schnitzer Steel Industries, Inc. announced the completion of the integration of its Auto Parts Business and Metals Recycling Business into a single Auto and Metals Recycling Business (AMR).
AMR is expected to generate operating income of approximately $16 million, which includes an estimated adverse impact from average inventory accounting of $5 million. Ferrous and nonferrous sales volumes are expected to be in line sequentially, while car purchase volumes for auto parts stores are expected to be approximately 10 percent higher than third quarter levels. In its steel manufacturing business, slightly higher sales volumes combined with higher utilization rates are expected to generate operating income in the range of $5 to $6 million.
Schnitzer expects fourth quarter of fiscal 2015 adjusted earnings per share from continuing operations to be in the range of $0.27 - $0.30 which excludes restructuring charges of approximately $0.05. Reported earnings per share from continuing operations are expected to be in the range of $0.37 - $0.40. Reported earnings per share are expected to be higher than adjusted earnings per share due to the allocation of full year tax benefits to the fourth quarter, partly offset by restructuring charges.
The company also expects to report total debt of approximately $228 million as of August 31, 2015, its lowest level since 2011.
The company will report the financial results for its fourth quarter and fiscal year ended August 31, 2015, on October 27, 2015.
The Texas Automotive Recyclers Association (TARA) will hold its 2015 Trade Show & Conference on Oct. 23 - 24 at American Auto Salvage in Fort Worth, Texas.
The event will feature a night of bowling, food, drinks and live music at the Cowtown Bowling Palace that will support the TARA PAC fund. The weekend also includes a trade show, auction, cash raffle and dinner at American Auto Salvage.
Attendees and exhibitors can register online at www.texasara.com.
The Automotive Recyclers Association of New York (ARANY) will hold its 54th Annual Convention & Tradeshow on Nov. 5 - 8, 2015 in Buffalo, N.Y. at the Adam’s Mark Hotel.
Lou Piccone, a former wide receiver for the Buffalo Bills will be the convention keynote speaker. The event is also open to Canadian auto recyclers at ARANY member rates. There will be several sessions, presentations and banquet with an auction.
Go to www.arany.com to register.
The 72nd ARA Convention & Exposition just wrapped up in Charlotte, N.C. and The Locator was there! The event was held at the Charlotte Convention Center on October 7 - 10 with the expo being open on Thursday, Oct. 8 - Saturday, Oct. 10.
We had a great time catching up with old friends and meeting new ones. We also took a lot of photos of those friends. You can view them all at www.partslocator.com/Galleries/. Thank you to everyone who stopped by our booth. We look forward to seeing you next year in Baltimore, Md.
October 28, 2015: Listings for The Locator Magazine.
November 2, 2015: Display ads for The Locator Magazine.
November 5, 2015: The Locator Magazine goes to press.