- Revenue growth of 30% to $760 million
- Organic revenue growth of 12%
- Diluted EPS from continuing operations increases
23%
LKQ Corporation (Nasdaq:LKQX) today reported revenue for the second
quarter of 2011 of $759.7 million, an increase of 29.9% as compared
to $584.7 million in the second quarter of 2010. Income from
continuing operations for the second quarter of 2011 was $46.7
million, an increase of 23.2% as compared to $37.9 million for the
same period of 2010. Diluted earnings per share from continuing
operations of $0.32 for the second quarter ended June 30, 2011
increased 23.1% from $0.26 for the second quarter of 2010.
"All of the operating groups performed well during the quarter,"
stated Robert Wagman, President and Co-Chief Executive Officer of
LKQ Corporation. Mr. Wagman continued, "We believe higher fuel
prices and lower miles driven created some challenges for certain
segments of our business. Despite those challenges, the Company
delivered total organic growth of 12.2% in the quarter, including
8.4% for parts and services."
Joseph Holsten, Vice Chairman and Co-Chief Executive Officer of
LKQ Corporation added, "We continued our acquisition plans which
contributed 17.5% to our revenue growth year-over-year. While
realizing the full potential of these businesses will take some
time, we are on pace with our plans for integration."
On a six month year-to-date basis, revenue was $1.55 billion, an
increase of 30.1% from $1.19 billion for the same six month period
of 2010. Income from continuing operations for the first six months
of 2011 was $104.9 million, as compared to $89.9 million for the
first half of 2010. Diluted earnings per share from continuing
operations was $0.71 for the first six months of 2011, as compared
to $0.62 for the same six month period of 2010.
Organic revenue growth on a six month year-to-date basis was
12.9%. Parts and services revenue grew organically by 9.4%.
Acquisition revenue growth on a six month year-to-date basis was
17.0%.
Robert Wagman added: "Overall, we are excited about the industry
dynamics we see today. Alternative parts usage continues to grow,
our fill rates are at historical highs, and we continue to see
strong insurance support as we explore alternative salvage
solutions outside of the traditional auction environment."
Balance Sheet and Liquidity
As of June 30, 2011, LKQ's balance sheet reflected cash and
equivalents of $42.3 million, and the outstanding obligations under
the Company's credit facilities were $574.6 million ($246.9 million
of term loans and $327.7 million of revolver borrowings).
Availability under the revolver at June 30, 2011, including the
impact of outstanding letters of credit of $33.7 million, was
$388.6 million.
Other Events
During the second quarter, LKQ acquired three businesses: the
U.S. paint distribution business of Akzo Nobel Coatings Inc., a
wheel refinishing business in Ohio, and an aftermarket parts
distributor in Ohio.
On May 25, 2011 Standard & Poor's raised LKQ's corporate
credit rating to BB+ from BB reflecting the Company's increasingly
improved credit ratios.
The Company noted that on July 20, 2011 Robert M. Devlin retired
from the Company's Board of Directors. Mr. Devlin had been a
director since 2007.
Regarding Mr. Devlin's retirement, Mr. Donald F. Flynn, Chairman
of the Board of Directors stated: "The Board of Directors wishes to
acknowledge the significant contributions made by Bob during his
tenure and thank him for his service. Bob's vast experience in the
insurance industry and extensive career in management played a key
role in LKQ's success and growth."
Company Outlook
The Company announced that it is revising earnings guidance for
2011. Income from continuing operations and diluted earnings per
share from continuing operations are anticipated to be within the
range of $201 million to $211 million and $1.36 to $1.42,
respectively. LKQ's previous guidance was $197 million to $211
million for income from continuing operations, and $1.33 to $1.42
for diluted earnings per share.
In addition, the Company left unchanged its guidance of
approximately $195 million for cash flows from continuing
operations, $85-$95 million in capital expenditures, and organic
growth of 6-8% from parts and services revenue.
The Company noted that it does not include sales of scrap or
cores in its definition of parts and services revenue.
Additionally, all guidance comments exclude restructuring expenses
and any gains or losses or capital expenditures related to
acquisitions or divestitures.
Quarterly Conference Call
LKQ will host a conference call and Webcast on July 28, 2011 at
10:00 a.m. Eastern Time (9:00 a.m. Central Time) with members of
senior management to discuss the Company's results.
To access the investor conference call, please dial (877)
407-0315. International access to the call may be obtained by
dialing (201) 689-8501. The audio webcast can be accessed via the
Company's website at www.lkqcorp.com in the Investor Relations
section.
A replay of the conference call will be available by telephone
at (877) 660-6853 or (201) 612-7415 for international calls. The
telephone replay will require you to enter account: 286 #,
conference ID: 374935 #. An online replay of the audio webcast will
be available on the Company's website. Both formats of replay will
be available through August 26, 2011. Please allow approximately
two hours after the live presentation before attempting to access
the replay.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of
aftermarket and recycled collision replacement parts and
refurbished collision replacement products such as wheels, bumper
covers and lights, and a leading provider of mechanical replacement
parts including remanufactured engines, all in connection with the
repair of automobiles and other vehicles. LKQ also has operations
in Canada, Mexico and Central America. LKQ operates more than 340
facilities, offering its customers a broad range of replacement
systems, components and parts to repair automobiles and light,
medium and heavy-duty trucks.
Forward Looking Statements
The statements in this press release that are not historical in
nature are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These include
statements regarding our expectations, beliefs, hopes, intentions
or strategies. Forward-looking statements involve risks and
uncertainties, some of which are not currently known to us. Actual
events or results may differ materially from those expressed or
implied in the forward looking statements as a result of various
factors.
These factors include:
- uncertainty as to changes in U.S. general economic activity and
the impact of these changes on the demand for our products and our
ability to obtain financing for operations;
- fluctuations in the pricing of new original equipment
manufacturer ("OEM") replacement parts;
- the availability and cost of our inventory;
- variations in vehicle accident rates or miles driven;
- changes in state or federal laws or regulations affecting our
business;
- changes in the types of replacement parts that insurance
carriers will accept in the repair process;
- changes in the demand for our products and the supply of our
inventory due to severity of weather and seasonality of weather
patterns;
- increasing competition in the automotive parts industry;
- uncertainty as to the impact on our industry of any terrorist
attacks or responses to terrorist attacks;
- our ability to operate within the limitations imposed by
financing agreements;
- our ability to obtain financing on acceptable terms to finance
our growth;
- declines in the values of our assets;
- fluctuations in fuel and other commodity prices;
- fluctuations in the prices of scrap metal and other
metals;
- our ability to develop and implement the operational and
financial systems needed to manage our operations;
- our ability to integrate and successfully operate acquired
companies and any companies acquired in the future and the risks
associated with these companies;
- claims by OEMs or others that attempt to restrict or eliminate
the sale of aftermarket products:
- termination of business relationships with insurance companies
that promote the use of our products;
- product liability claims by the end users of our products or
claims by other parties who we have promised to indemnify for
product liability matters;
- currency fluctuations in the U.S. dollar versus the Canadian
dollar, the Mexican peso and the Taiwan dollar;
- instability in regions in which we operate, such as Mexico,
that can affect our supply of certain products; and
- other risks that are described in our Form 10-K filed February
25, 2011 and in other reports filed by us from time to time with
the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking
statements. All of these forward-looking statements are based on
our expectations as of the date of this press release. We undertake
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
|
|
|
LKQ CORPORATION AND
SUBSIDIARIES |
Unaudited Consolidated
Condensed Statements of Income |
(In thousands, except
per share data) |
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Revenue |
$ 759,684 |
$ 584,681 |
$ 1,546,332 |
$ 1,188,197 |
|
|
|
|
|
Cost of goods sold |
437,448 |
323,415 |
880,450 |
643,641 |
|
|
|
|
|
Gross margin |
322,236 |
261,266 |
665,882 |
544,556 |
|
|
|
|
|
Facility and warehouse expenses |
69,183 |
55,358 |
139,001 |
113,134 |
|
|
|
|
|
Distribution expenses |
69,048 |
51,168 |
134,859 |
102,357 |
|
|
|
|
|
Selling, general and administrative
expenses |
91,395 |
75,679 |
181,156 |
150,766 |
|
|
|
|
|
Restructuring expenses |
2,377 |
290 |
2,423 |
370 |
|
|
|
|
|
Depreciation and amortization |
11,747 |
9,162 |
22,586 |
18,391 |
|
|
|
|
|
Operating income |
78,486 |
69,609 |
185,857 |
159,538 |
|
|
|
|
|
Other expense (income): |
|
|
|
|
Interest expense, net |
4,671 |
7,155 |
11,080 |
14,431 |
Loss on debt extinguishment |
-- |
-- |
5,345 |
-- |
Other income, net |
(1,997) |
(138) |
(2,103) |
(299) |
|
|
|
|
|
Total other expense, net |
2,674 |
7,017 |
14,322 |
14,132 |
|
|
|
|
|
Income from continuing
operations before provision for income taxes |
75,812 |
62,592 |
171,535 |
145,406 |
|
|
|
|
|
Provision for income taxes |
29,106 |
24,686 |
66,647 |
55,517 |
|
|
|
|
|
Income from continuing
operations |
46,706 |
37,906 |
104,888 |
89,889 |
|
|
|
|
|
Discontinued operations: |
|
|
|
|
Income from discontinued operations, net
of taxes |
-- |
-- |
-- |
224 |
Gain on sale of discontinued operations,
net of taxes |
-- |
-- |
-- |
1,729 |
|
|
|
|
|
Income from discontinued operations |
-- |
-- |
-- |
1,953 |
|
|
|
|
|
Net income |
$ 46,706 |
$ 37,906 |
$ 104,888 |
$ 91,842 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (1): |
|
|
|
|
Income from continuing operations |
$ 0.32 |
$ 0.27 |
$ 0.72 |
$ 0.63 |
Income from discontinued operations |
-- |
-- |
-- |
0.01 |
|
|
|
|
|
Total |
$ 0.32 |
$ 0.27 |
$ 0.72 |
$ 0.64 |
|
|
|
|
|
Diluted earnings per share (1): |
|
|
|
|
Income from continuing operations |
$ 0.32 |
$ 0.26 |
$ 0.71 |
$ 0.62 |
Income from discontinued operations |
-- |
-- |
-- |
0.01 |
|
|
|
|
|
Total |
$ 0.32 |
$ 0.26 |
$ 0.71 |
$ 0.63 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
145,917 |
142,842 |
145,765 |
142,520 |
|
|
|
|
|
Diluted |
148,131 |
145,496 |
148,007 |
145,307 |
|
|
|
|
|
(1) The sum of the individual
earnings per share amounts may not equal the total due to
rounding. |
|
|
LKQ CORPORATION AND
SUBSIDIARIES |
Unaudited Consolidated
Condensed Balance Sheets |
(In thousands, except
share and per share data) |
|
|
|
|
June 30, |
December 31, |
|
2011 |
2010 |
Assets |
|
|
|
|
|
Current Assets: |
|
|
Cash and equivalents |
$ 42,256 |
$ 95,689 |
Receivables, net |
236,628 |
191,085 |
Inventory |
556,541 |
492,688 |
Deferred income taxes |
35,039 |
32,506 |
Prepaid income taxes |
-- |
10,923 |
Prepaid expenses |
19,912 |
13,985 |
Total Current Assets |
890,376 |
836,876 |
|
|
|
Property and Equipment, net |
358,443 |
331,312 |
Intangibles |
1,131,723 |
1,102,275 |
Other Assets |
37,172 |
29,046 |
|
|
|
Total Assets |
$ 2,417,714 |
$ 2,299,509 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 77,951 |
$ 76,437 |
Accrued expenses |
88,075 |
84,028 |
Income taxes payable |
690 |
-- |
Deferred revenue |
8,869 |
9,224 |
Current portion of long-term
obligations |
15,520 |
52,888 |
Liabilities of discontinued
operations |
2,364 |
2,744 |
|
|
|
Total Current Liabilities |
193,469 |
225,321 |
|
|
|
Long-Term Obligations, Excluding Current
Portion |
570,841 |
548,066 |
Deferred Income Tax Liabilities |
64,827 |
66,059 |
Other Noncurrent Liabilities |
52,875 |
45,902 |
|
|
|
Commitments and Contingencies |
|
|
|
|
|
Stockholders' Equity: |
|
|
Common stock, $0.01 par value,
500,000,000 shares authorized, 146,170,800 and 145,466,575
shares issued and outstanding at June 30, 2011 and December
31, 2010, respectively |
1,462 |
1,455 |
Additional paid-in capital |
885,555 |
869,798 |
Retained earnings |
643,418 |
538,530 |
Accumulated other comprehensive
income |
5,267 |
4,378 |
|
|
|
Total Stockholders' Equity |
1,535,702 |
1,414,161 |
|
|
|
Total Liabilities and Stockholders'
Equity |
$ 2,417,714 |
$ 2,299,509 |
|
|
LKQ CORPORATION AND
SUBSIDIARIES |
Unaudited Consolidated
Condensed Statements of Cash Flows |
(In
thousands) |
|
|
|
Six Months
Ended |
|
June
30, |
|
2011 |
2010 |
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
Net income |
$ 104,888 |
$ 91,842 |
Adjustments to reconcile net income to
net cash provided by operating activities: |
|
|
Depreciation and amortization |
24,797 |
20,011 |
Stock-based compensation expense |
6,602 |
5,112 |
Deferred income taxes |
(6) |
(1,097) |
Excess tax benefit from share-based
payments |
(4,053) |
(5,953) |
Gain on sale of discontinued
operations |
-- |
(2,744) |
Loss on debt extinguishment |
5,345 |
-- |
Other |
(498) |
1,376 |
Changes in operating assets and
liabilities, net of effects from acquisitions and
divestitures: |
|
|
Receivables |
(24,769) |
(1,484) |
Inventory |
(19,578) |
(24,672) |
Prepaid income taxes/income taxes
payable |
14,786 |
18,223 |
Accounts payable |
(4,525) |
(393) |
Other operating assets and
liabilities |
(1,909) |
970 |
|
|
|
Net cash provided by operating
activities |
101,080 |
101,191 |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
Purchases of property and equipment |
(42,540) |
(20,847) |
Proceeds from sales of property and
equipment |
162 |
236 |
Proceeds from sale of businesses, net of
cash sold |
-- |
11,992 |
Cash used in acquisitions, net of cash
acquired |
(95,591) |
(13,742) |
|
|
|
Net cash used in investing
activities |
(137,969) |
(22,361) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
Proceeds from exercise of stock
options |
5,109 |
5,136 |
Excess tax benefit from share-based
payments |
4,053 |
5,953 |
Debt issuance costs |
(8,190) |
-- |
Borrowings under line of credit |
401,753 |
-- |
Repayments under line of credit |
(74,328) |
-- |
Borrowings under term loan |
250,000 |
-- |
Repayments under term loans |
(594,214) |
(7,476) |
Repayments of other long-term debt |
(716) |
(1,105) |
|
|
|
Net cash (used in) provided by financing
activities |
(16,533) |
2,508 |
|
|
|
Effect of exchange rate changes on cash and
equivalents |
(11) |
233 |
|
|
|
Net (decrease) increase in cash and
equivalents |
(53,433) |
81,571 |
|
|
|
Cash and equivalents, beginning of
period |
95,689 |
108,906 |
|
|
|
Cash and equivalents, end of period |
$ 42,256 |
$ 190,477 |
|
|
LKQ CORPORATION AND
SUBSIDIARIES |
Unaudited Supplementary
Data |
(In thousands, except
per share data) |
|
|
|
|
|
|
|
|
Three Months
Ended June 30, |
Operating
Highlights |
2011 |
2010 |
|
|
|
|
% of |
|
% of |
|
|
|
|
Revenue |
|
Revenue |
Change |
% Change |
Revenue |
$ 759,684 |
100.0% |
$ 584,681 |
100.0% |
$ 175,003 |
29.9% |
|
|
|
|
|
|
|
Cost of goods sold |
437,448 |
57.6% |
323,415 |
55.3% |
114,033 |
35.3% |
|
|
|
|
|
|
|
Gross margin |
322,236 |
42.4% |
261,266 |
44.7% |
60,970 |
23.3% |
|
|
|
|
|
|
|
Facility and warehouse expenses |
69,183 |
9.1% |
55,358 |
9.5% |
13,825 |
25.0% |
|
|
|
|
|
|
|
Distribution expenses |
69,048 |
9.1% |
51,168 |
8.8% |
17,880 |
34.9% |
|
|
|
|
|
|
|
Selling, general and administrative
expenses |
91,395 |
12.0% |
75,679 |
12.9% |
15,716 |
20.8% |
|
|
|
|
|
|
|
Restructuring expenses |
2,377 |
0.3% |
290 |
0.0% |
2,087 |
719.7% |
|
|
|
|
|
|
|
Depreciation and amortization |
11,747 |
1.5% |
9,162 |
1.6% |
2,585 |
28.2% |
|
|
|
|
|
|
|
Operating income |
78,486 |
10.3% |
69,609 |
11.9% |
8,877 |
12.8% |
|
|
|
|
|
|
|
Other expense (income): |
|
|
|
|
|
Interest expense, net |
4,671 |
0.6% |
7,155 |
1.2% |
(2,484) |
-34.7% |
Loss on debt extinguishment |
-- |
0.0% |
-- |
0.0% |
-- |
n/m |
Other income, net |
(1,997) |
-0.3% |
(138) |
0.0% |
(1,859) |
n/m |
|
|
|
|
|
|
|
Total other expense, net |
2,674 |
0.4% |
7,017 |
1.2% |
(4,343) |
-61.9% |
|
|
|
|
|
|
|
Income from continuing
operations before provision for income taxes |
75,812 |
10.0% |
62,592 |
10.7% |
13,220 |
21.1% |
|
|
|
|
|
|
|
Provision for income taxes |
29,106 |
3.8% |
24,686 |
4.2% |
4,420 |
17.9% |
|
|
|
|
|
|
|
Income from continuing
operations |
46,706 |
6.1% |
37,906 |
6.5% |
8,800 |
23.2% |
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
Income from discontinued operations, net
of taxes |
-- |
0.0% |
-- |
0.0% |
-- |
n/m |
Gain on sale of discontinued operations,
net of taxes |
-- |
0.0% |
-- |
0.0% |
-- |
n/m |
|
|
|
|
|
|
|
Income from discontinued operations |
-- |
0.0% |
-- |
0.0% |
-- |
n/m |
|
|
|
|
|
|
|
Net income |
$ 46,706 |
6.1% |
$ 37,906 |
6.5% |
$ 8,800 |
23.2% |
|
|
|
|
|
|
|
Basic earnings per
share (1): |
|
|
|
|
|
Income from continuing operations |
$ 0.32 |
|
$ 0.27 |
|
$ 0.05 |
18.5% |
Income from discontinued operations |
0.00 |
|
0.00 |
|
0.00 |
n/m |
|
|
|
|
|
|
|
Total |
$ 0.32 |
|
$ 0.27 |
|
$ 0.05 |
18.5% |
|
|
|
|
|
|
|
Diluted earnings per
share (1): |
|
|
|
|
|
Income from continuing operations |
$ 0.32 |
|
$ 0.26 |
|
$ 0.06 |
23.1% |
Income from discontinued operations |
0.00 |
|
0.00 |
|
0.00 |
n/m |
|
|
|
|
|
|
|
Total |
$ 0.32 |
|
$ 0.26 |
|
$ 0.06 |
23.1% |
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
Basic |
145,917 |
|
142,842 |
|
3,075 |
2.2% |
|
|
|
|
|
|
|
Diluted |
148,131 |
|
145,496 |
|
2,635 |
1.8% |
|
|
|
|
|
|
|
(1) The sum of the individual
earnings per share amounts may not equal the total due to
rounding. |
|
|
LKQ CORPORATION AND
SUBSIDIARIES |
Unaudited Supplementary
Data |
(In thousands, except
per share data) |
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
Operating
Highlights |
2011 |
2010 |
|
|
|
|
% of |
|
% of |
|
|
|
|
Revenue |
|
Revenue |
Change |
% Change |
|
|
|
|
|
|
|
Revenue |
$ 1,546,332 |
100.0% |
$ 1,188,197 |
100.0% |
$ 358,135 |
30.1% |
|
|
|
|
|
|
|
Cost of goods sold |
880,450 |
56.9% |
643,641 |
54.2% |
236,809 |
36.8% |
|
|
|
|
|
|
|
Gross margin |
665,882 |
43.1% |
544,556 |
45.8% |
121,326 |
22.3% |
|
|
|
|
|
|
|
Facility and warehouse expenses |
139,001 |
9.0% |
113,134 |
9.5% |
25,867 |
22.9% |
|
|
|
|
|
|
|
Distribution expenses |
134,859 |
8.7% |
102,357 |
8.6% |
32,502 |
31.8% |
|
|
|
|
|
|
|
Selling, general and administrative
expenses |
181,156 |
11.7% |
150,766 |
12.7% |
30,390 |
20.2% |
|
|
|
|
|
|
|
Restructuring expenses |
2,423 |
0.2% |
370 |
0.0% |
2,053 |
554.9% |
|
|
|
|
|
|
|
Depreciation and amortization |
22,586 |
1.5% |
18,391 |
1.5% |
4,195 |
22.8% |
|
|
|
|
|
|
|
Operating income |
185,857 |
12.0% |
159,538 |
13.4% |
26,319 |
16.5% |
|
|
|
|
|
|
|
Other expense (income): |
|
|
|
|
|
|
Interest expense, net |
11,080 |
0.7% |
14,431 |
1.2% |
(3,351) |
-23.2% |
Loss on debt extinguishment |
5,345 |
0.3% |
-- |
0.0% |
5,345 |
n/m |
Other income, net |
(2,103) |
-0.1% |
(299) |
0.0% |
(1,804) |
n/m |
|
|
|
|
|
|
|
Total other expense, net |
14,322 |
0.9% |
14,132 |
1.2% |
190 |
1.3% |
|
|
|
|
|
|
|
Income from continuing
operations before provision for income taxes |
171,535 |
11.1% |
145,406 |
12.2% |
26,129 |
18.0% |
|
|
|
|
|
|
|
Provision for income taxes |
66,647 |
4.3% |
55,517 |
4.7% |
11,130 |
20.0% |
|
|
|
|
|
|
|
Income from continuing
operations |
104,888 |
6.8% |
89,889 |
7.6% |
14,999 |
16.7% |
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
Income from discontinued operations, net
of taxes |
-- |
0.0% |
224 |
0.0% |
(224) |
-100.0% |
Gain on sale of discontinued operations,
net of taxes |
-- |
0.0% |
1,729 |
0.1% |
(1,729) |
-100.0% |
|
|
|
|
|
|
|
Income from discontinued operations |
-- |
0.0% |
1,953 |
0.2% |
(1,953) |
-100.0% |
|
|
|
|
|
|
|
Net income |
$ 104,888 |
6.8% |
$ 91,842 |
7.7% |
$ 13,046 |
14.2% |
|
|
|
|
|
|
|
Basic earnings per share (1): |
|
|
|
|
|
|
Income from continuing operations |
$ 0.72 |
|
$ 0.63 |
|
$ 0.09 |
14.3% |
Income from discontinued operations |
0.00 |
|
0.01 |
|
(0.01) |
-100.0% |
|
|
|
|
|
|
|
Total |
$ 0.72 |
|
$ 0.64 |
|
$ 0.08 |
12.5% |
|
|
|
|
|
|
|
Diluted earnings per share (1): |
|
|
|
|
|
|
Income from continuing operations |
$ 0.71 |
|
$ 0.62 |
|
$ 0.09 |
14.5% |
Income from discontinued operations |
0.00 |
|
0.01 |
|
(0.01) |
-100.0% |
|
|
|
|
|
|
|
Total |
$ 0.71 |
|
$ 0.63 |
|
$ 0.08 |
12.7% |
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
Basic |
145,765 |
|
142,520 |
|
3,245 |
2.3% |
|
|
|
|
|
|
|
Diluted |
148,007 |
|
145,307 |
|
2,700 |
1.9% |
|
|
|
|
|
|
|
(1) The sum of the individual
earnings per share amounts may not equal the total due to
rounding. |
|
|
|
|
The following
unaudited table reconciles income from continuing operations to
EBITDA: |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In
thousands) |
|
|
|
|
|
Income from continuing operations |
$ 46,706 |
$ 37,906 |
$ 104,888 |
$ 89,889 |
Depreciation and amortization |
12,871 |
10,031 |
24,797 |
20,011 |
Interest expense, net |
4,671 |
7,155 |
11,080 |
14,431 |
Loss on debt extinguishment (1) |
-- |
-- |
5,345 |
-- |
Provision for income taxes |
29,106 |
24,686 |
66,647 |
55,517 |
|
|
|
|
|
Earnings before interest, taxes, depreciation
and amortization (EBITDA) from
continuing operations |
$ 93,354 |
$ 79,778 |
$ 212,757 |
$ 179,848 |
|
|
|
|
|
EBITDA as a percentage of
revenue |
12.3% |
13.6% |
13.8% |
15.1% |
|
|
|
|
|
(1) Loss on debt extinguishment
is considered a component of interest in calculating EBITDA, as the
write-off of debt issuance costs is similar to the treatment of
debt issuance cost amortization. |
|
We provide a reconciliation of
Income from Continuing Operations to EBITDA as we believe it offers
investors, securities analysts and other interested parties useful
information regarding our results of operations because it assists
in analyzing our performance and the value of our business. EBITDA
provides insight into our profitability trends, and allows
management and investors to analyze our operating results with and
without the impact of depreciation, amortization, interest and
income tax expense. We believe EBITDA is used by securities
analysts, investors, and other interested parties in evaluating
companies, many of which present EBITDA when reporting their
results. EBITDA should not be construed as an alternative to
operating income, net income or net cash provided by (used in)
operating activities, as determined in accordance with accounting
principles generally accepted in the United States. In addition,
not all companies that report EBITDA information calculate EBITDA
in the same manner as we do and, accordingly, our calculation
is not necessarily comparable to similarly named measures of other
companies and may not be an appropriate measure for performance
relative to other companies. |
|
|
The following unaudited
tables compare certain revenue categories: |
|
|
|
|
|
|
Three Months
Ended |
|
|
|
June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
|
(In
thousands) |
|
|
|
|
|
|
|
Included in Unaudited Consolidated
Condensed |
|
|
|
|
Statements of Income of LKQ
Corporation |
|
|
|
|
|
|
|
|
|
Aftermarket, other new and refurbished
products |
$ 356,202 |
$ 290,271 |
$ 65,931 |
22.7% |
Recycled, remanufactured and related products
and services |
269,700 |
214,159 |
55,541 |
25.9% |
Parts and services |
625,902 |
504,430 |
121,472 |
24.1% |
Other |
133,782 |
80,251 |
53,531 |
66.7% |
Total |
$ 759,684 |
$ 584,681 |
$ 175,003 |
29.9% |
|
|
|
|
|
Revenue changes by
category for the three months ended June 30, 2011 vs.
2010: |
|
|
|
|
|
|
Revenue Change
Attributable to: |
|
|
Acquisition |
Organic |
Foreign
Exchange |
% Change |
|
|
|
|
|
Aftermarket, other new and refurbished
products |
16.1% |
6.4% |
0.2% |
22.7% |
Recycled, remanufactured and related products
and services |
14.5% |
11.0% |
0.4% |
25.9% |
Parts and services |
15.4% |
8.4% |
0.3% |
24.1% |
Other |
30.1% |
36.5% |
0.1% |
66.7% |
Total |
17.5% |
12.2% |
0.2% |
29.9% |
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
|
|
June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
|
(In
thousands) |
|
|
|
|
|
|
|
Included in Unaudited Consolidated
Condensed |
|
|
|
|
Statements of Income of LKQ
Corporation |
|
|
|
|
|
|
|
|
|
Aftermarket, other new and refurbished
products |
$ 737,318 |
$ 602,644 |
$ 134,674 |
22.3% |
Recycled, remanufactured and related products
and services |
545,482 |
429,382 |
116,100 |
27.0% |
Parts and services |
1,282,800 |
1,032,026 |
250,774 |
24.3% |
Other |
263,532 |
156,171 |
107,361 |
68.7% |
Total |
$ 1,546,332 |
$ 1,188,197 |
$ 358,135 |
30.1% |
|
|
|
|
|
Revenue changes by
category for the six months ended June 30, 2011 vs.
2010: |
|
|
|
|
|
|
Revenue Change
Attributable to: |
|
|
Acquisition |
Organic |
Foreign
Exchange |
% Change |
|
|
|
|
|
Aftermarket, other new and refurbished
products |
13.9% |
8.2% |
0.2% |
22.3% |
Recycled, remanufactured and related products
and services |
15.8% |
10.9% |
0.3% |
27.0% |
Parts and services |
14.7% |
9.4% |
0.2% |
24.3% |
Other |
32.0% |
36.6% |
0.1% |
68.7% |
Total |
17.0% |
12.9% |
0.2% |
30.1% |
CONTACT: Joseph P. Boutross
Director, Investor Relations
(312) 621-2793
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