CHICAGO, Feb. 1 /PRNewswire-FirstCall/ -- LKQ Corporation today announced that it expects its 2006 earnings per share after the recent two-for-one stock split and after including its recent acquisition of Transwheel Corporation, to be in the range of $0.72 to $0.76 on a fully diluted basis. This estimate includes approximately a $0.03 per share effect of expensing stock options.
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Our 2006 guidance does not include any additional 2006 business acquisitions. However, we do have a solid backlog of candidates to review for potential acquisitions and intend to aggressively pursue businesses that will contribute to long-term stockholder value.
Company Outlook
On March 2, 2006 we are scheduled to report our 2005 revenue and net income, which is expected to be consistent with our previously issued 2005 earnings guidance.
We expect that 2006 organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2005 business acquisitions and our Transwheel Corporation acquisition that closed at the end of January 2006. We expect net income to be within a range of $40.5 million to $42.5 million and diluted earnings per share to be between $0.72 and $0.76. Included in the guidance is an estimated $0.03 per share effect of expensing stock options for the first time.
We anticipate that net cash provided by operating activities for 2006 will be approximately $40.0 million. We estimate our full year 2006 capital expenditures, excluding any future acquisitions we may do, will be approximately $33.0 million. This includes approximately $3.5 million of 2005 planned capital projects that we previously reported to you in our projected 2005 capital, but were not completed by year end and will instead be expended in early 2006. The 2006 capital expenditure budgets also include four major facility expansions, which we believe will contribute to continued strong organic growth in the related markets in 2007 and beyond. Finally, the 2006 capital expenditures include approximately $2.0 million related to consolidating two recycling operations and converting one of these locations to a self-service start up operation.
We estimate the weighted average diluted shares outstanding for the full year 2006 to be approximately 56.0 million, which takes into account our recent two-for-one stock split. These share numbers are estimates and as such will be affected by factors such as any future stock issuances, the number of our options and warrants exercised in subsequent periods, and changes in our stock price.
Annual Conference Call
We will host an audio webcast to discuss our fourth quarter 2005 actual results and our first quarter 2006 financial guidance on Thursday, March 2, 2006 at 10:30 a.m. Eastern Time. The live audio webcast can be accessed on the internet at http://www.lkqcorp.com/ in the Investor Relations section. An online replay of the webcast will be available on the website approximately two hours after the live presentation and will remain on the site until April 2, 2006.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of recycled light vehicle OEM products and related services and the second largest nationwide provider of aftermarket collision replacement products. LKQ operates over 100 facilities offering its customers a broad range of replacement systems, components, and parts to repair light vehicles.
Forward Looking Statements
The statements in this press release that are not historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including 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:
-- the availability and cost of inventory;
-- pricing of new OEM replacement parts;
-- variations in vehicle accident rates;
-- changes in state or federal laws or regulations affecting our
business;
-- fluctuations in fuel prices;
-- changes in the demand for our products and the supply of our inventory
due to severity of weather and seasonality of weather patterns;
-- changes in the types of replacement parts that insurance carriers will
accept in the repair process;
-- the amount and timing of operating costs and capital expenditures
relating to the maintenance and expansion of our business, operations
and infrastructure;
-- declines in asset values;
-- uncertainty as to changes in U.S. general economic activity and the
impact of these changes on the demand for our products;
-- uncertainty as to our future profitability;
-- increasing competition in the automotive parts industry;
-- our ability to increase or maintain revenue and profitability at our
facilities;
-- 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
arrangements;
-- our ability to obtain financing on acceptable terms to finance our
growth;
-- our ability to integrate and successfully operate recently acquired
companies and any companies acquired in the future and the risks
associated with these companies;
-- our ability to develop and implement the operational and financial
systems needed to manage our growing operations; and
-- other risks that are described in our Form 10-K filed March 8, 2005
and in other reports filed by us from time to time with the Securities
and Exchange Commission.
You should not place undue reliance on the forward looking statements. We assume no obligation to update any forward looking statement to reflect events or circumstances arising after the date on which it was made.
CONTACT: LKQ Corporation
Mark T. Spears, Executive Vice President and
Chief Financial Officer
312-621-1950
First Call Analyst:
FCMN Contact: wphanley@lkqcorp.com
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