LKQ Corporation Announces 2008 First Quarter Net Income Results Up Over 95% With Record Revenue, Record Earnings and Increased Annual Earnings Guidance
biz.yahoo.com
Thursday May 1, 5:45 am ET
CHICAGO, May 1 /PRNewswire-FirstCall/ -- LKQ Corporation (Nasdaq: LKQX) today announced results for its first quarter ended March 31, 2008, with revenue of $491.9 million, net income of $30.9 million and diluted earnings per share of $0.22.
"We reported record revenue and earnings for the quarter with revenue growth at 109% and net income growth at just over 95%. Our operating margin improved this quarter over the first quarter of 2007 by 90 basis points and, excluding restructuring expenses, by 110 basis points. Our diluted earnings per share for the quarter puts us on track to exceed the earnings guidance that we previously issued by approximately $0.02 per share," said Joe Holsten, President and Chief Executive Officer.
Commenting on business acquisitions, Holsten said, "We continue to be pleased with our progress to date related to combining our aftermarket businesses with Keystone Automotive Industries, Inc. In addition we acquired a heavy truck recycling business in Houston, TX that gives us a solid platform from which to expand into a new type of product line."
2008 Reported Results
All earnings per share amounts, stock price amounts and share counts discussed herein reflect our December 2007 two-for-one stock split.
For the first quarter of 2008, revenue increased 109.0% to $491.9 million compared with $235.3 million for the first quarter of 2007. Our organic revenue growth for the quarter was 9.0% and was calculated assuming we owned Keystone for the first quarter of 2007. Net income for the quarter increased 95.5% to $30.9 million compared with $15.8 million for the first quarter of 2007. Diluted earnings per share was $0.22 for the quarter compared with $0.14 for the first quarter of 2007.
Revenue from aftermarket collision replacement parts, paint, shop supplies, refurbished bumpers, refurbished wheels and refurbished lighting for the first quarter was $272.3 million.
During the quarter, we recorded $1.2 million of restructuring expenses which were included in operating expenses and are all related to our Keystone acquisition in October 2007.
The weighted average diluted shares outstanding for the first quarter of 2008 was 139.7 million compared to 112.0 million for the first quarter of 2007. The number of weighted average diluted shares of common stock in 2008 increased from 2007 due to the issuance of 23.6 million new shares in our September 2007 follow-on public offering, the issuance of 838,073 new shares related to the acquisition of a business on March 4, 2008, exercises of stock options, and the increase in our stock price.
Business Acquisitions in 2008
On February 15, we acquired a retail oriented recycled parts business located in Orlando, FL, that operates on 3.5 acres of property adjoining our existing retail oriented recycled parts business.
On March 4, we acquired Texas Best Diesel, a heavy duty truck recycled parts business in Houston, TX that operates on an approximately 18 acre facility.
These two businesses reported approximately $10.6 million in trailing annual revenue just prior to our acquisition of them.
Company Outlook
We expect that 2008 organic revenue growth will be approximately 10%, with the balance of revenue growth being the full year impact of 2007 and 2008 business acquisitions. Excluding the effect of any 2008 restructuring expenses we may record related to the Keystone acquisition, we expect full year 2008 net income to be within a range of $106.0 million to $111.0 million and diluted earnings per share to be between $0.75 and $0.79.
We anticipate that net cash provided by operating activities for 2008 will be over $85.0 million. We estimate our full year 2008 capital expenditures related to property and equipment, excluding expenditures for acquiring businesses, will be between $65.0 million to $75.0 million. This includes approximately $10.0 million related to capital expenditures planned for late 2007 on projects that were delayed and approximately $4.8 million related to restructuring our aftermarket business as a result of the Keystone acquisition.
We estimate the weighted average diluted shares outstanding for the full year 2008 will be approximately 141.0 million. These share numbers are estimates and will be affected by factors such as any future stock issuances, the number of our options exercised in subsequent periods, and changes in our stock price. |
