CHICAGO — LKQ Corp. has announced results for its fourth quarter and full year ended Dec. 31, 2010.
Income from continuing operations for the fourth quarter was $41.3 million, and diluted earnings per share from continuing operations was 28 cents. For the full year, income from continuing operations was $167.1 million, and diluted earnings per share from continuing operations was $1.15.
"I am very pleased with the quarter and the year, as we continued our stellar financial performance, with revenue for the year growing 20.6 percent to $2.5 billion," said Joseph Holsten, vice chairman and co-CEO. "We continued to see increased usage of alternative collision parts in 2010, which has allowed us to grow despite challenging economic conditions. Our organic revenue growth rate for parts and services was 7 percent during the fourth quarter."
Holsten added, "We also continued to grow through acquisitions. In 2010 we completed 20 acquisitions, which helped us to continue to build out our North American footprint and to add depth and breadth to our product offering. Revenue growth attributable to acquisitions was 10.7 percent in the fourth quarter of 2010. I expect 2011 will be another busy year for acquisitions."
For the fourth quarter of 2010, revenue was $674 million compared with $556 million for the fourth quarter of 2009, an increase of 21.3 percent. Income from continuing operations for the quarter was $41.3 million compared with $36.5 million in the prior year, an increase of 13.2 percent. The results of the fourth quarter of 2009 included an after tax gain on bargain purchase of $4.3 million.
For the full year of 2010, revenue was $2.47 billion compared with $2.05 billion for the full year of 2009, an increase of 20.6 percent. Income from continuing operations for the full year was $167.1 million compared with $127.1 million for the prior year, an increase of 31.4 percent. Income from continuing operations for the full year included $0.7 million, or $0.4 million after tax, of restructuring expenses compared to $2.6 million, or $1.6 million after tax, for the prior year. The results of 2009 also included an after tax gain on bargain purchase of $4.3 million.
During the fourth quarter of 2010, LKQ acquired a total of eight businesses including a wholesale recycled products business in Arkansas and a self-serve business with two facilities in southern California. These acquisitions were in addition to the previously announced fourth quarter acquisitions of Cross Canada, PROFormance Power Train, SPI Distribution, Best Bumper, a wholesale recycling business in Virginia and a self-service recycling operation in Colorado. Since the beginning of 2011, the company has completed four additional acquisitions including ATK Vege, an engine remanufacturing business headquartered in Texas; an aftermarket distributor of heating and cooling products located in the Midwest; a heavy duty truck recycling business located in Texas; and a recycled parts business in Milwaukee, Wis.
"We continue to see opportunities for organic growth through increased use of alternative parts, an improving economy, additional geographic expansion and an enhanced product offering," said Robert Wagman, president and co-CEO. "Revenue from parts and services is anticipated to grow organically in 2011 at a rate of 6 percent to 8 percent."
Based on current conditions and excluding restructuring expenses and any gains or losses related to acquisitions or divestitures, LKQ anticipates full year 2011 income from continuing operations will be in the range of $194 million to $208 million and diluted earnings per share from continuing operations will be in the range of $1.31 to $1.39.
