LKQ diluted earnings per share increases 11 percent

LKQ Corporation reported diluted earnings per share of $0.20 for the third quarter ended September 30, 2009, an 11.1 percent increase from $0.18 for the third quarter of 2008. Revenue for the third quarter of 2009 was $494.8 million, an increase of 2.7 percent as compared to $481.6 million in the third quarter of 2008. Net income in the third quarter of 2009 was $29.2 million as compared to $25.1 million in the third quarter of 2008. Excluding restructuring expenses from continuing operations and excluding a fixed asset impairment from discontinued operations, diluted earnings per share was $0.22 in the third quarter of 2009 as compared to $0.19 in the third quarter of 2008.

As previously announced, LKQ entered into an agreement to divest certain self-service recycling businesses, and LKQ has classified these divestitures as discontinued operations in its three and nine month statements ended September 30, 2008 and September 30, 2009.

Income from continuing operations was $30.1 million in the third quarter of 2009, an increase of 26.0 percent as compared to the third quarter of 2008.

Organic revenue growth, excluding Other Revenue, was 5.5 percent for the third quarter of 2009. Aftermarket, other new and refurbished products organic revenue growth was 11.3 percent for the third quarter of 2009 as compared to the same period of the prior year.

During the third quarter of 2009, the company had restructuring expenses of $0.9 million in continuing operations related to its Keystone acquisition and a fixed asset impairment of $3.5 million included in discontinued operations related to a divested self-service business. For the third quarter of 2008, the company reported restructuring expenses of $2.4 million. These expenses reduced diluted earnings per share by $0.02 in the third quarter of 2009, and $0.01 in the third quarter of 2008. Earnings per share from discontinued operations excluding the fixed asset impairment was approximately $0.01 in both the third quarter of 2009 and the third quarter of 2008.

For the nine months ended September 30, 2009, revenue was $1,492 million, an increase of 3.3 percent as compared to $1,443.8 million in the same period of the prior year. Year to date 2009 net income was $90.3 million as compared to $86.9 million for the prior year. Year to date 2009 diluted earnings per share was $0.63 as compared to $0.62 in the prior year. Diluted earnings per share before restructuring expenses and the fixed asset impairment was $0.65 for both the year to date 2009 period and the same period of the prior year.

During the third quarter of 2009, the company made two acquisitions: Superior Collision Parts, an aftermarket supplier with annualized revenue of $11.0 million and with operations in Atlanta, Georgia; Pittsburgh, Pennsylvania; Columbus, Ohio; and Allentown, Pennsylvania; and a heavy-duty truck business with historical annual revenue of $2.0 million in Maryland.

LKQ announced on October 2, 2009, the acquisition of Greenleaf Auto Recyclers, LLC from Schnitzer Steel Industries.

LKQ also announced on October 2, 2009 the sale to SSI of four self-service facilities and certain business assets at three other facilities with plans to close two of the sites and to convert the remaining location to a wholesale recycling business. In addition, subject to customary closing conditions, LKQ agreed to sell to SSI two other self-service recycling facilities in Dallas, Texas with an anticipated closing date in mid-January 2010. The results of the facilities sold, to be sold or closed and the related restructuring expenses and the fixed asset impairment have been classified as discontinued operations by LKQ.

As of September 30, 2009, LKQ’s balance sheet reflected cash and equivalents of $166.0 million as compared to $79.1 million as of December 31, 2008. Debt as of September 30, 2009 was $635.6 million as compared to $642.9 million at the end of 2008.