CHICAGO – LKQ Corp. has reported record revenue for the first quarter of 2012 of $1.03 billion, an increase of 31 percent as compared to $786.6 million in the first quarter of 2011.
Net income for the first quarter of 2012 was $81 million, an increase of 39.2 percent as compared to $58.2 million for the same period of 2011. Diluted earnings per share of 54 cents for the first quarter ended March 31 increased 38 percent from 39 cents for the first quarter of 2011.
"We are pleased to report that our quarterly revenue was in excess of $1 billion for the first time in our history. Despite the headwinds we faced in the quarter, we were able to generate record earnings," said Robert Wagman, president and CEO. "We are particularly pleased with the organic growth of our recycled, remanufactured and related products and services revenue. In the quarter, sales from those products grew organically 8.5 percent compared to the same period in 2011. We encountered softness in our collision product sales primarily due to the mild winter and the subsequent drop in reported insurance claims. Despite the mild winter and high gas prices, the company reported 3.2 percent total organic growth and 3.6 percent organic growth for parts and services. Revenue growth from acquisitions was 28 percent in the quarter."
During the first quarter, LKQ acquired four North American businesses including a self-service operation in North Carolina, a paint distribution business in Canada, a light vehicle wholesale salvage operation with four locations in Quebec and a distributor of remanufactured engines based in California. Additionally, during the first quarter, LKQ’s European operations opened nine Euro Car Parts branches in the U.K.
The company also announced it is updating its guidance for 2012. Based on current conditions and excluding restructuring expenses and any gains or losses related to acquisitions or divestitures (including changes in the fair value of contingent consideration liabilities), LKQ anticipates full year 2012 organic revenue growth from parts and services will be in the range of 5 percent to 7 percent, net income will be in the range of $262 million to $282 million and diluted earnings per share will be in the range of $1.75 to $1.88. The revised guidance includes 3 cents per share from the legal settlement gain recognized in the first quarter 2012. LKQ’s previous guidance was 5.5 percent to 7.5 percent for organic revenue growth for parts and services, $258 million to $278 million for net income, and $1.72 to $1.85 for diluted earnings per share.
The company left unchanged its previous guidance of approximately $250 million to $280 million for cash flows from operating activities, and $100 million to $115 million in capital expenditures (excluding any acquisition-related expenditures).
