CHICAGO -- LKQ Corp. has reported revenue for the first quarter of 2011 of $786.6 million, an increase of 30.3 percent 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 percent as compared to $52 million for the same period of 2010.

Diluted earnings per share from continuing operations of 39 cents for the first quarter ended March 31, increased 8.3 percent from 36 cents 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 2 cents 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 10 percent," said Joseph Holsten, vice chairman and Co-CEO. "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."

Robert Wagman, president and Co-CEO added, "Despite a continued difficult buying environment for salvage cars, the company improved its margins compared to the fourth quarter of 2010."

As of March 31, 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 million of term loans and $297.5 million of revolver borrowings). Availability under the revolver at March 31, including the impact of outstanding letters of credit of $25.7 million, was $426.8 million.

During the quarter, 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, the company announced that it entered into a definitive credit agreement with several lenders to borrow up to $1 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. Wagman commented that the revised guidance reflects the company’s 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 percent to 8 percent from parts and services revenue. LKQ 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.