LKQ announces 2008 financial results

LKQ Corporation announced results for its fourth quarter and full year ended December 31, 2008.

Net income for the fourth quarter of 2008 was $13.0 million and diluted earnings per share were $0.09. For the full year of 2008, net income was $99.9 million and diluted earnings per share were $0.71. Excluding the effect of restructuring expenses totaling $1.9 million in the fourth quarter of 2008 and $8.6 million in the full year of 2008, diluted earnings per share would have been $0.10 and $0.75 for the quarter and full year, respectively.

For the fourth quarter of 2008, revenue totaled $470.3 million compared with $414.7 million for the fourth quarter of 2007, an increase of 13.4 percent. Organic revenue growth for the quarter was 0.7 percent. Net income for the fourth quarter of 2008 was $13.0 million compared with $21.5 million in the fourth quarter of 2007, a decline primarily attributable to $11.8 million in operating losses in LKQ’s self-service recycle operations as a result of a steep decrease of commodity prices over a short time frame.

For the full year of 2008, revenue totaled $1.9 billion compared with $1.1 billion for the prior year, an increase of 71.9 percent. The majority of the revenue growth during 2008 was attributable to LKQ’s purchase of Keystone on October 12, 2007. Net income for the full year of 2008 was $99.9 million compared with $65.9 million for the prior year, an increase of 51.6 percent.

During 2008, LKQ acquired three separate heavy-duty truck recycled parts businesses in Houston, Chicago and Toledo, a large multi-location self-service auto recycler in California, and two wholesale automobile recyclers in Ontario, Canada. Collectively, the businesses acquired had approximately $152 million of historical annual revenue.

Additionally, in early 2009, the company acquired a heavy-duty truck recycled parts business in Tampa and a wholesale automobile salvage business in the Raleigh/Durham market with combined historical annual revenue of $13 million.

In light of current conditions and excluding any restructuring expenses, LKQ anticipates full year 2009 net income will be in the range of $114 million to $123 million and earnings per share will be in the range of $0.80 to $0.86.

Net cash provided by operating activities for 2009 is projected to be over $145 million. The company estimates capital expenditures related to property and equipment, excluding expenditures for acquisitions, will be between $75 million to $80 million. Maintenance or replacement capital expenditures are expected to be slightly less than 20 percent of the total for 2009.