Thursday June 12
LKQ 1Q Net Income Results Up Over 95 PercentLKQ Corporation has announced results for its first quarter ended March 31, 2008, with revenue of $491.9 million, net income of $30.9 million and diluted earnings per share of $0.22.
"We reported record revenue and earnings for the quarter with revenue growth at 109 percent and net income growth at just over 95 percent. Our operating margin improved this quarter over the first quarter of 2007 by 90 basis points and, excluding restructuring expenses, by 110 basis points. Our diluted earnings per share for the quarter puts us on track to exceed the earnings guidance that we previously issued by approximately $0.02 per share," said Joe Holsten, President and Chief Executive Officer.
Commenting on business acquisitions, Holsten said, "We continue to be pleased with our progress to date related to combining our aftermarket businesses with Keystone Automotive Industries, Inc. In addition we acquired a heavy truck recycling business in Houston, TX that gives us a solid platform from which to expand into a new type of product line."
For the first quarter of 2008, revenue increased 109 percent to $491.9 million compared with $235.3 million for the first quarter of 2007. Net income for the quarter increased 95.5 percent to $30.9 million compared with $15.8 million for the first quarter of 2007.
Revenue from aftermarket collision replacement parts, paint, shop supplies, refurbished bumpers, refurbished wheels, and refurbished lighting for the first quarter was $272.3 million.
During the quarter, $1.2 million of restructuring expenses were recorded, which were included in operating expenses and are all related to the Keystone acquisition in October 2007.
On February 15, LKQ acquired a retail oriented recycled parts business located in Orlando, Florida, that operates on 3.5 acres of property adjoining our existing retail oriented recycled parts business. On March 4, the company acquired Texas Best Diesel, a heavy duty truck recycled parts business in Houston, Texas. These two businesses reported approximately $10.6 million in trailing annual revenue just prior to their acquisitions.
LKQ expects that 2008 organic revenue growth will be approximately 10 percent, with the balance of revenue growth being the full year impact of 2007 and 2008 business acquisitions. Excluding the effect of any 2008 restructuring expenses related to the Keystone acquisition, the company expect full year 2008 net income to be within a range of $106.0 million to $111.0 million.
LKQ Corporation is the largest nationwide provider of aftermarket collision replacement products, recycled OEM products, and refurbished OEM collision replacement products such as wheels, bumper covers, and lights used to repair light vehicles. LKQ operates approximately 300 facilities.
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