Insurance Auto Auctions Inc. (NASDAQ: IAAI), the leading provider of automotive salvage services in the United States, today reported that net sales for the quarter ended Dec. 31, 1996 were $64.4 million.
Mr. Alampi, president and CEO said, "Linda Larrabee, Senior Vice President and Chief Financial Officer and I have completed our first six months with Insurance Auto Auctions. Both of us have been able to get familiar with the Company's operations, its strengths and its weaknesses. We evaluated various agreements that the company made in the past in relation to our current focus and strategic plans. As a result of these evaluations, we decided to recognize, as a special charge, the expense related to the termination of pre-existing agreements that no longer have value to our current strategy.
"We also entered into an agreement with Bradley S. Scott, former Chief Executive Officer and Chairman of the Board that terminates his employment agreement with the Company and provides that he will serve as an outside Director and Chairman of the Board. We will complete the centralization of our corporate groups at our corporate headquarters in Illinois by mid-summer, and we negotiated a buyout of a long-term lease for property in Woodland Hills, California. The net of these terms recognized as special charges is $1,395,000. Now, we are ready to focus on implementing our strategic plans."
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