CHICAGO — LKQ Corp. has reported revenues of $133.8 million, net income of $8.4 million and diluted earnings per share of 37 cents for its first quarter of 2005, which ended on March 31.
According to Joe Holsten, president and CEO of LQK, the company exceeded its previous revenue and earnings estimates for this quarter.
“We achieved a record quarter with impressive revenue growth of approximately 34 percent that included organic revenue growth of 11 percent,” said Holsten. “Our net income increased by 49 percent and our earnings per share increased by 48 percent. We were particularly pleased with the expansion of our EBITDA margin to 12.3 percent, which was largely attributable to gaining leverage from our distribution network, as well as our G&A costs. We acquired an Eastern seaboard based aftermarket company during the quarter, which performed in line with expectations, and acquired a South Carolina based automotive parts recycling company in April of 2005, as we continued our geographic expansion of these product lines.”
For the first quarter of 2005, revenue increased 33.7 percent to $133.8 million compared with $100.1 million for the first quarter of 2004. Approximately $22.6 million in revenue growth for the quarter was from businesses we acquired. For the quarter, net income increased 49.1 percent to $8.4 million compared with $5.6 million for the first quarter of 2004. Diluted earnings per share was 37 cents for the quarter compared with 25 cents for the first quarter of 2004.
The company’s consolidated aftermarket collision replacement parts revenue for the quarter was $20.3 million.
The weighted average diluted shares outstanding for the quarter was 22.7 million compared to 22.2 million for the first quarter of 2004. The number of outstanding shares of common stock in 2005 changed from 2004 due primarily to the effect of the exercise of stock options and warrants.
On February 1, LQK acquired Bodymaster Auto Parts, Inc. and a related company that operates in the aftermarket collision automotive replacement parts business for approximately $15.5 million, net of acquired cash. This business operates from two locations near Philadelphia and Washington, D.C. The revenue of this business in 2004 was approximately $19.5 million.
On April 1, the company also acquired A&R Auto Parts, Inc., a recycled OEM automotive replacement parts company. This business is located between Spartanburg and Greenville, SC. A&R’s revenue for 2004 was approximately $11 million.
The company estimates full year 2005 revenue will be within a range of $536 million to $541 million and that organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2004 business acquisitions and the 2005 business acquisitions we have completed to date. LQK expects net income to be within a range of $26.7 million to $27.7 million and diluted earnings per share to be between $1.16 and $1.20.
For the second quarter of 2005, the company expects revenue to be between $133.5 million and $135 million, net income to be between $6.7 million and $7.1 million, and diluted earnings per share to be between 29 cents and 31 cents.
For more information about LQK, go to: www.lkqcorp.com.
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