CHICAGO — LKQ Corp. has announced results for its first quarter ended March 31. Revenue for the first quarter of 2009 was $518 million, an increase of 5.3 percent from $491.9 million in the first quarter of 2008. Net income for the first quarter of 2009 was $32.3 million, an increase of 4.6 percent from $30.9 million in the first quarter of 2008. Diluted earnings per share was 23 cents for the first quarter of 2009, as compared to 22 cents for the same period of last year.
"With most of the Keystone integration behind us, we began to see the benefits during the quarter of our earlier efforts to capture the ‘first call’ for replacement parts and realized organic revenue growth in both the aftermarket and recycled revenue categories," said Joseph Holsten, president and chief executive officer. "As demand, although still weak, for scrap metal improved, we were able to stabilize our self-service retail business and return it to profitability. The results for the quarter reinforce the resiliency of our businesses, despite the weak economic trends and continued declines in miles driven and insurance claims."
Holsten added, "Our settlement with Ford Motor Company was a major milestone for LKQ. It lifts a cloud of concern held by some of our vendors, partners and investors and gives us exclusive rights to sell aftermarket parts that correspond to Ford-patented collision repair parts. We will continue to promote the use of aftermarket, recycled and refurbished parts as cost-effective, quality alternatives to new OEM parts for collision repair."
For the first quarter of 2009, consolidated revenue, excluding “Other Revenue,” was $469.3 million, an increase of 9.1 percent as compared to $429.9 million for the first quarter of 2008. Organic revenue growth, excluding Other Revenue, was 5.1 percent. Organic revenue growth, including Other Revenue, was essentially flat because of the impact of lower commodity prices, primarily affecting our self-service retail operations.
As of March 31, LKQ’s balance sheet reflected cash and equivalents of $92.8 million as compared to $79.1 million as of Dec. 31, 2008. Debt as of March 31 was $638.6 million as compared to $642.9 million at the end of 2008. As of April 29, liquidity available under LKQ’s revolving credit agreement was $66.8 million.
During the quarter, LKQ acquired a heavy-duty truck parts recycling operation in Tampa, Fla., and wholesale automobile salvage businesses in the Raleigh/Durham, N.C., area and the Montreal, Quebec, Canada, area. Historical annual revenue for the acquired businesses was approximately $18 million.
The outlook for 2009 remains unchanged from the company’s guidance provided in late February. Organic revenue growth, excluding "Other Revenue," which will continue to be impacted by weak commodity prices, is projected to grow at a rate of 6 percent to 8 percent. Excluding the impact of any restructuring expenses, LKQ anticipates full year 2009 net income will be in the range of $114.5 million to $123.5 million and diluted earnings per share will be in the range of 80 to 86 cents.
Net cash provided by operating activities for 2009 is projected to be approximately $145 million. Capital expenditures related to property and equipment, excluding expenditures for acquiring businesses, are projected to be in the range of $75 million to $80 million. Maintenance or replacement capital expenditures are expected to be less than $15 million.
