CHICAGO, April 28, 2011 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq:LKQX) today reported revenue for the first quarter of 2011 of $786.6 million, an increase of 30.3% as compared to $603.5 million in the first quarter of 2010. Income from continuing operations for the first quarter of 2011 was $58.2 million, an increase of 11.9% as compared to $52.0 million for the same period of 2010. Diluted earnings per share from continuing operations of $0.39 for the first quarter ended March 31, 2011 increased 8.3% from $0.36 for the first quarter of 2010. The Company noted that the 2011 diluted earnings per share results included a loss on debt extinguishment equal to $0.02 for the write-off of debt issuance costs in conjunction with the previously announced refinancing of its credit facility.
The Company attributed the high revenue growth to a combination of acquisition activity and improved organic growth in its core lines of business. "I am particularly pleased that our wholesale parts and services organic growth exceeded ten percent," stated Joseph Holsten, Vice Chairman & Co-Chief Executive Officer of LKQ Corporation. "The quarter includes an additional $100 million of acquisition revenue compared to the same quarter last year and we are starting to see leverage in our results as we integrate those transactions," commented Mr. Holsten.
Robert Wagman, President and Co-Chief Executive Officer of LKQ Corporation added, "Despite a continued difficult buying environment for salvage cars, the Company improved its margins compared to Q4 2010."
Balance Sheet and Liquidity
As of March 31, 2011, LKQ's balance sheet reflected cash and equivalents of $64.5 million, and the outstanding obligations under the Company's credit facilities were $547.5 million ($250.0 million of term loans and $297.5 million of revolver borrowings). Availability under the revolver at March 31, 2011, including the impact of outstanding letters of credit of $25.7 million, was $426.8 million.
During the quarter ended March 31, 2011, LKQ acquired four businesses: an engine remanufacturer, an automotive heating and cooling component distributor, a wholesale recycled products business and a recycled heavy-duty truck business.
On March 25, 2011 the Company announced that it entered into a definitive credit agreement with several lenders to borrow up to $1.0 billion. The new facility replaced the Company's $750 million facility that would have expired in October 2013.
The Company also announced that it is raising earnings guidance for 2011. Mr. Wagman commented "The revised guidance reflects our strong first quarter results."
Income from continuing operations and diluted earnings per share from continuing operations are anticipated to be within the range of $197 million to $211 million and $1.33 to $1.42, respectively. LKQ's previous guidance was $194 million to $208 million for income from continuing operations, and $1.31 to $1.39 for diluted earnings per share.
The Company left unchanged its previous guidance of approximately $195 million for cash flows from continuing operations, $85-$95 million in capital expenditures, and organic growth of 6-8% from parts and services revenue. The Company noted that it does not include sale of scrap or cores in its definition of parts and services revenue. Additionally, the guidance provided excludes restructuring expenses and any gains or losses or capital expenditures related to acquisitions or divestitures.
Quarterly Conference Call
LKQ will host a conference call and Webcast on April 28, 2011 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) with members of senior management to discuss the Company's results.
To access the investor conference call, please dial (877) 407-0315. International access to the call may be obtained by dialing (201) 689-8501. The audio webcast can be accessed via the Company's website at in the Investor Relations section.
A replay of the conference call will be available by telephone at (877) 660-6853 or (201) 612-7415 for international calls. The telephone replay will require you to enter account: 286 #, conference ID: 371279 #. An online replay of the audio webcast will be available on the Company's website. Both formats of replay will be available through May 27, 2011. Please allow approximately two hours after the live presentation before attempting to access the replay.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of aftermarket and recycled collision replacement parts, refurbished collision replacement products such as wheels, bumper covers and lights, and a leading provider of mechanical replacement parts including remanufactured engines, all in connection with the repair of automobiles and other vehicles. LKQ operates more than 325 facilities, offering its customers a broad range of replacement systems, components and parts to repair automobiles and light, medium and heavy-duty trucks. LKQ's operations include locations in Canada, Mexico and Central America.
Forward Looking Statements
The statements in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding our expectations, beliefs, hopes, intentions or strategies. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward looking statements as a result of various factors.
These factors include:
- uncertainty as to changes in U.S. general economic activity and the impact of these changes on the demand for our products and our ability to obtain financing for operations;
- fluctuations in the pricing of new original equipment manufacturer ("OEM") replacement parts;
- the availability and cost of our inventory;
- variations in vehicle accident rates or miles driven;
- changes in state or federal laws or regulations affecting our business;
- changes in the types of replacement parts that insurance carriers will accept in the repair process;
- changes in the demand for our products and the supply of our inventory due to severity of weather and seasonality of weather patterns;
- increasing competition in the automotive parts industry;
- uncertainty as to the impact on our industry of any terrorist attacks or responses to terrorist attacks;
- our ability to operate within the limitations imposed by financing agreements;
- our ability to obtain financing on acceptable terms to finance our growth;
- declines in the values of our assets;
- fluctuations in fuel and other commodity prices;
- fluctuations in the prices of scrap metal and other metals;
- our ability to develop and implement the operational and financial systems needed to manage our operations;
- our ability to integrate and successfully operate acquired companies and any companies acquired in the future and the risks associated with these companies;
- claims by OEMs or others that attempt to restrict or eliminate the sale of aftermarket products:
- termination of business relationships with insurance companies that promote the use of our products;
- product liability claims by the end users of our products or claims by other parties who we have promised to indemnify for product liability matters;
- currency fluctuations in the U.S. dollar versus the Canadian dollar, the Mexican peso and the Taiwan dollar;
- instability in regions in which we operate, such as Mexico, that can affect our supply of certain products; and
- other risks that are described in our Form 10-K filed February 25, 2011 and in other reports filed by us from time to time with the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements. All of these forward-looking statements are based on our expectations as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Joseph P. Boutross Director, Investor Relations (312) 621-2793