Monday March 2
LKQ Corporation Announces 2008 Financial ResultsLKQ Corporation has announced results for its fourth quarter and full year ended December 31, 2008.
Net income for the fourth quarter of 2008 was $13.0 million. For the full year of 2008, net income was $99.9 million. Restructuring expenses totaled $1.9 million in the fourth quarter of 2008 and $8.6 million in the full year of 2008.
"I am proud of the results we were able to achieve in 2008, given the impact the economic downturn had on collision repairs and the extreme volatility we saw in commodity prices. We increased 2008 earnings per share by 36 percent, excluding the effect of restructuring expenses, despite very challenging economic trends," commented Joseph Holsten, President and Chief Executive Officer. "Our results demonstrate the strength of our market position as the leading provider of alternative collision repair parts for passenger vehicles."
For the fourth quarter of 2008, revenue totaled $470.3 million compared with $414.7 million for the fourth quarter of 2007, an increase of 13.4 percent. Net income for the fourth quarter of 2008 was $13.0 million compared with $21.5 million in the fourth quarter of 2007, a decline primarily attributable to $11.8 million in operating losses in LKQ's self-service recycle operations as a result of a steep decrease of commodity prices over a short time frame.
For the full year of 2008, revenue totaled $1.9 billion compared with $1.1 billion for the prior year, an increase of 71.9 percent The majority of the revenue growth during 2008 was attributable to LKQ's purchase of Keystone on October 12, 2007. Net income for the full year of 2008 was $99.9 million compared with $65.9 million for the prior year, an increase of 51.6 percent.
During 2008, LKQ acquired three separate heavy-duty truck recycled parts businesses in Houston, Chicago, and Toledo, a large multi-location self-service auto recycler in California, and two wholesale automobile recyclers in Ontario, Canada. Collectively, the businesses acquired had approximately $152 million of historical annual revenue. Additionally, in early 2009, the company acquired a heavy-duty truck recycled parts business in Tampa and a wholesale automobile salvage business in the Raleigh/Durham market with combined historical annual revenue of $13 million.
Holsten commented, "While the economy will likely dampen our near-term growth rates, the long-term trends are positive and are likely to lead to an increase in the usage rates of alternative parts, in general, and LKQ's market share. Our strong balance sheet and positive free cash flow will support our leadership position."
In light of current conditions and excluding any restructuring expenses, LKQ anticipates full year 2009 net income will be in the range of $114 million to $123 million.
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