LKQ Corporation Acquires Recycled Parts Businesses
CHICAGO, July 10 -- LKQ Corporation today announced that it recently acquired several recycled parts businesses with aggregate revenue in 2005 of approximately $24 million. Terms of these transactions were not disclosed.
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We believe these businesses will generate approximately $13 million of revenue and $0.02 of diluted earnings per share for LKQ during our period of ownership in 2006.
These business acquisitions consist of two facilities in Houston, Texas with a total footprint of approximately 46 acres, a 10 acre facility in Aurora, Colorado (a suburb of Denver) and a 12 acre facility in Daytona Beach, Florida. These businesses consist of operations that sell primarily into the retail market. The Houston facilities also include some operations that sell into the professional repair market.
"We are very pleased to be entering these large and important new geographical markets," said Joe Holsten, LKQ's President and Chief Executive Officer. "The acquired business in Houston sells primarily to the retail public with a small amount of revenue coming from the professional repair market. While we will merge the wholesale professional repair business into our existing Houston operations, the retail self service operations provide for an important market entry in the fourth largest city in the country. Similarly, we have been evaluating the Denver market for a considerable period of time, and believe this retail business operation is an excellent market entry for us. While the Daytona Beach facility is a new market for us as well, this operation will complement our current base in Orlando. Finally, we are highly impressed with the quality of management that we gain through these transactions."
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.
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