Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Monday May 9
LKQ Corporation Announces Q1 Net Income Up 49%
LKQ Corporation has reported results for its first quarter ended March 31, 2005, with revenue of $133.8 million, net income of $8.4 million and diluted earnings per share of $0.37."Our company exceeded its previous revenue and earnings estimates for this quarter. We achieved a record quarter with impressive revenue growth of approximately 34 percent that included organic revenue growth of 11 percent. Our net income increased by 49 percent and our earnings per share increased by 48 percent. We were particularly pleased with the expansion of our EBITDA margin to 12.3 percent, which was largely attributable to gaining leverage from our distribution network, as well as our G&A costs. We acquired an Eastern seaboard based aftermarket company during the quarter, which performed in line with expectations, and acquired a South Carolina based automotive parts recycling company in April of 2005, as we continued our geographic expansion of these product lines," said Joe Holsten, President and Chief Executive Officer.
For the first quarter of 2005, revenue increased 33.7 percent to $133.8 million compared with $100.1 million for the first quarter of 2004. Approximately $22.6 million in revenue growth for the quarter was from businesses we acquired. For the quarter, net income increased 49.1 percent to $8.4 million compared with $5.6 million for the first quarter of 2004. Diluted earnings per share was $0.37 for the quarter compared with $0.25 for the first quarter of 2004.
LKQ's consolidated aftermarket collision replacement parts revenue for the quarter was $20.3 million.
In February the company acquired for approximately $15.5 million, net of acquired cash, Bodymaster Auto Parts, Inc. and a related company that operate in the aftermarket collision automotive replacement parts business. This business operates from two locations near Philadelphia and Washington, D.C. The revenue of this business in 2004 was approximately $19.5 million.
In April LKQ acquired A&R Auto Parts, Inc., a recycled OEM automotive replacement parts company. This business is located between Spartanburg and Greenville, South Carolina. A&R's revenue for 2004 was approximately $11.0 million.
LKQ expects that full year 2005 revenue will be within a range of $536.0 million to $541.0 million and that organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2004 business acquisitions and the 2005 business acquisitions completed to date. The company expects net income to be within a range of $26.7 million to $27.7 million and diluted earnings per share to be between $1.16 and $1.20.
LKQ Corporation is the largest nationwide provider of recycled OEM automotive replacement parts and related services, with 47 sales and processing facilities, 9 self-service retail automotive parts facilities, and 12 redistribution centers that reach most major markets in the United States. In addition, LKQ operates recycled OEM facilities in Central America.
©2005 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?