LKQ Files Shelf Registration Statements for Future Offerings and for Acquisitions
CHICAGO, May 9, 2006 -- LKQ Corporation has filed two shelf registration statements with the Securities and Exchange Commission (SEC), one on Form S-3 and another on Form S-4.
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The registration statement on Form S-3 becomes automatically effective under SEC rules and allows us to sell from time to time debt securities, common stock or warrants for capital raising purposes. These securities may be offered separately or together and in amounts, at prices and on terms to be determined by us at the time of an offering if we choose to do one.
We will determine the use of proceeds of any offering of securities at the time of the offering, but we currently expect to use any proceeds to develop and acquire recycling businesses, redistribution facilities, aftermarket businesses, and self-service retail facilities, to expand and improve existing facilities, to purchase property, equipment and inventory, and for working capital.
The registration statement on Form S-4, after it becomes effective with the SEC, will allow us to issue our common stock as consideration in connection with acquisitions of businesses. The number of shares and the prices and other terms of the share issuances would be determined at the time we decide to use our common stock for acquisition purposes.
The S-4 registration statement has been filed with the SEC but has not become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of any such state.
Mark T. Spears, our Executive Vice President and Chief Financial Officer, said: "While we currently do not have immediate plans to offer the securities that we are registering, we believe it is prudent for a company our size to maintain such registration statements on file. With these registration statements, we will be able to move quickly to take advantage of any capital raising or strategic acquisition opportunities that may become available to us."
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 and refurbished wheels. 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, 2006
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.
A copy of the prospectus for either offering may be obtained from: LKQ Corporation Mark T. Spears, Executive Vice President and Chief Financial Officer 312-621-1950 irinfo@lkqcorp.comPhoto: NewsCom: http://www.newscom.com/cgi-bin/prnh/20051017/LKQLOGO
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