LKQ Corporation Announces 2008 Second Quarter Net Income Results Up Over 121% and Increases Annual Earnings Guidance
biz.yahoo.com
Thursday July 31, 5:45 am ET
CHICAGO, July 31 /PRNewswire-FirstCall/ -- LKQ Corporation (Nasdaq: LKQX) today announced results for its second quarter ended June 30, 2008, with revenue of $484.4 million, net income of $31.0 million and diluted earnings per share of $0.22.
"Our second quarter results demonstrate the strength of our diversified business model. Both our revenue and our net income more than doubled compared to the second quarter of 2007, and we achieved 13.2% overall organic revenue growth in the quarter. Our operating margin improved this quarter over the second quarter of 2007 by close to 65 basis points, and would have been an additional 65 basis points higher without restructuring expenses. Our diluted earnings per share for the quarter puts us on track to exceed the earnings guidance that we previously issued by approximately $0.09 per share," said Joe Holsten, President and Chief Executive Officer.
Commenting on the strong recycled products revenue growth, Holsten said, "We believe higher fuel prices this quarter contributed to lower reported insurance claim activity which in turn adversely affected our growth on aftermarket, other new and refurbished parts revenue, which still grew by about 1% despite difficult market conditions. Organic revenue growth exceeded that of our first quarter as our recycled parts and other related revenue growth expanded significantly due to our processing of increased volumes of vehicles, along with higher demand for the commodities that we separate in our recycling processes."
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 second quarter of 2008, revenue increased 107.6% to $484.4 million compared with $233.3 million for the second quarter of 2007. Our organic revenue growth for the quarter was 13.2%, and was calculated on a pro forma basis assuming we owned Keystone Automotive Industries, Inc. during the second quarter of 2007. Net income for the quarter increased 121.1% to $31.0 million compared with $14.0 million for the second quarter of 2007. Diluted earnings per share was $0.22 for the quarter compared with $0.12 for the second quarter of 2007.
For the six months ended June 30, 2008, revenue increased 108.3% to $976.3 million compared with $468.6 million for the same period in 2007. This included pro forma organic revenue growth of 11.2%. For the six months ended June 30, 2008, net income increased 107.5% to $61.9 million compared with $29.8 million for the same period in 2007. Diluted earnings per share was $0.44 for the six months ended June 30, 2008 compared with $0.27 for the same period a year ago.
For the second quarter of 2008 we recorded $3.1 million and for the six months ended June 30, 2008 we recorded $4.3 million of restructuring expenses, which were included in operating expenses and were all related to our Keystone acquisition in October 2007.
The weighted average diluted shares outstanding for the second quarter of 2008 was 140.3 million compared to 112.5 million for the second quarter of 2007, and for the six months ended June 30, 2008 was 140.0 million compared to 112.2 million for the six months ended June 30, 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, 2008 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, 2008 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 again be in the low double digits, with the balance of revenue growth being the full year impact of 2007 business acquisitions and the business acquisitions we have completed to date in 2008. Excluding the effect of any 2008 restructuring expenses related to the Keystone acquisition, we expect full year 2008 net income to be within a range of $120.0 million to $124.0 million and diluted earnings per share to be between $0.85 and $0.88. |
