CHICAGO -- LKQ has announced results for its third quarter ended Sept. 30, with revenue of $197.7 million, net income of $10.5 million and diluted earnings per share of 19 cents.

"We exceeded our previously issued earnings estimates for the third quarter, reported a record revenue quarter, and delivered impressive revenue growth of approximately 48%. Our net income increased by just over 58 percent and our earnings per share increased by nearly 36 percent. We were particularly pleased with the expansion of our operating income margin to 9 percent compared to 8.6 percent in the third quarter of 2005, despite the negative impact by the aluminum smelter operation of our Transwheel subsidiary acquired early this year," said Joe Holsten, president and chief executive officer.

All earnings per share amounts, stock price amounts and share counts discussed herein reflect the company’s January 2006 two-for-one stock split.

For the third quarter of 2006, revenue increased 47.9 percent to $197.7 million compared with $133.6 million for the third quarter of 2005. LKQ’s organic revenue growth for the quarter was 12.2 percent. Net income for the quarter increased 58.4 percent to $10.5 million compared with $6.6 million for the third quarter of 2005. As a result of the statutory closing of certain previous income tax years, net income included a tax benefit of approximately $688,000 from the reversal of accrued income tax liabilities that are no longer deemed necessary. Diluted earnings per share was 19 cents for the quarter compared with 14 cents for the third quarter of 2005.

For the nine months, revenue increased 45 percent to $584.8 million compared with $403.5 million for the same period in 2005. This included organic revenue growth of 11.8 percent. For the nine months, net income increased 51.1 percent to $34.2 million compared with $22.6 million for the same period in 2005. Diluted earnings per share was 61 cents for the nine months compared with 48 cents for the same period a year ago.

LKQ’s results for the nine months include approximately $1.5 million of expenses related to the expensing of stock options in accordance with Statement of Financial Accounting Standard No. 123R "Share-Based Payment" ("SFAS 123R"). SFAS 123R became effective for LKQ Corporation on Jan. 1. These expenses had the effect of lowering net income by approximately $880,000 and diluted earnings per share by approximately 2 cents for the nine month period.

The company’s consolidated aftermarket collision replacement parts revenue for the third quarter was $39.1 million and for the nine months ended September was $120.6 million.

The weighted average diluted shares outstanding for the third quarter was 55.9 million compared to 47.7 million for the third quarter of 2005 and for the nine months was 55.7 million compared to 47 million for the nine months ended Sept. 30, 2005. The number of weighted average diluted shares of common stock outstanding in 2006 changed from 2005 due to the issuance of 6.4 million new shares in the company’s October 2005 public offering, exercises of stock options and warrants and the increase in its stock price.

The company expects that 2006 organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2005 business acquisitions and the nine acquisitions that LKQ has completed so far in 2006. We expect net income to be within a range of $43.7 million to $44.7 million and diluted earnings per share to be between 78 cents and 80 cents. Included in the guidance is an estimated $0.03 per share effect of expensing stock options for the first time.

The company anticipates that net cash provided by operating activities for 2006 will be more than $40 million. It estimates full year 2006 capital expenditures related to property and equipment, excluding expenditures for acquiring businesses, will be approximately $41 million. This includes approximately $6 million in property and equipment related to businesses the company has acquired to date in 2006. As of Oct. 25, we had outstanding debt under our bank credit facility of $93 million.

The company estimates the weighted average diluted shares outstanding for the full year 2006 will be approximately 56 million. These share numbers are estimates and will be affected by factors such as any future stock issuances, the number of options exercised in subsequent periods, and changes in stock price.

For more information about LKQ, go to: http://www.lkqcorp.com.