CARMEL, Ind. -

The AFC unit of KAR Auction Services enjoyed a solid third quarter, with volumes climbing 13 percent and profitability remaining strong.

According to the parent company’s quarterly earnings information, AFC had 405,116 loan transactions in Q3, up from 358,800 in the same period of 2014,  pushing the year-to-date sum above 1 million (1,198,473).

AFC revenue came in at $69.1 million, against $63.5 million in Q3 2014. Through nine months, revenue has totaled $200.2 million, up from $184.2 million through three quarters of 2014.

Revenue per loan transaction, excluding "other service revenue," was down $5 on both a year-to-date and quarterly level. 

Operating profit for Q3 increased from $31 million to $34.4 million, with the year-to-date sum at $98 million (up from $87.6 million). 

EBITDA reached $42.1 million for the quarter (up from $38.7 million) and $122.7 million year-to-date (up from $110.3 million).

When adjustments are made per the credit agreement, the EBITDA becomes $37.9 million for the quarter (up from $36.3 million) and $110.6 million for the nine-month period (up from $104.9 million).

A transcript of KAR’s quarterly call by FactSet CallStreet was posted to KAR’s website. In that, KAR chairman and chief executive officer Jim Hallett goes over the success in the various business units (ADESA, IAA, etc.) and calls AFC “ another very good story. ”

He also mentions the market’s appreciation of AFC’s business model and the services it is providing customers. 

“No question, we've seen increased competition,” Hallett said. “There has been pressure on fees, but I can tell you, that this still remains a very profitable business, and I think that the AFC management team has been able to respond to the competition and grow our market share in this space.”

Hallett goes on to add: “The average revenue per loan transaction is down approximately $5 dollars overall, just to put that in perspective for you. So, I think we're in a good spot there.”

In regards to impact from interest rates, Hallett said AFC is “very well-positioned.”