LKQ Corporation today 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," said Joe Holsten, president and chief executive officer. "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."
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, Texas that gives us a solid platform from which to expand into a new type of product line."
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, LKQ recorded $1.2 million of restructuring expenses which were included in operating expenses and are all related to its Keystone acquisition in October 2007.
On February 15, LKQ acquired a retail-oriented recycled parts business located in Orlando, Fla., that operates on 3.5 acres of property adjoining LKQ’s existing retail-oriented recycled parts business. On March 4, LKQ acquired Texas Best Diesel, a heavy duty truck recycled parts business in Houston, Texas that operates on an 18-acre facility. These two businesses reported approximately $10.6 million in trailing annual revenue just prior to LKQ’s acquisition of them.
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 it may record related to the Keystone acquisition, LKQ expects full year 2008 net income to be within a range of $106.0 million to $111.0 million and diluted earnings per share to be between $0.75 and $0.79.
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 offering its customers a broad range of replacement systems, components, and parts to repair light vehicles and trucks.
For more information, visit www.lkqcorp.com.
