LKQ Corporation recently announced results for its fourth quarter and full year ended Dec. 31, 2011. Income from continuing operations for the fourth quarter was $56.1 million and diluted earnings per share was $0.38, a 36 percent increase over the $0.28 reported for 2010. For the full year 2011, income from continuing operations was $210.3 million and diluted earnings per share was $1.42, a 23 percent increase over the $1.15 reported for 2010.

"We completed a successful 2011 with a solid fourth quarter," stated Robert Wagman, President and Chief Executive Officer of LKQ Corporation. "In 2011, the Company surpassed $3 billion in revenue for the first time, and achieved double digit total organic revenue growth and diluted EPS growth despite the headwinds of high fuel costs, the high cost of salvage vehicles and the reduction in miles driven that we faced throughout the year.”

Wagman added, “We made 21 acquisitions in 2011 including the purchase of Euro Car Parts. The financial performance of these businesses and their integration into our existing operations is progressing as expected.”

Fourth Quarter 2011 Reported Results

For the fourth quarter of 2011, revenue was $939.6 million compared with $674.1 million for the fourth quarter of 2010, an increase of 39.4%. Income from continuing operations for the fourth quarter was $56.1 million compared with $41.3 million in the prior year, an increase of 35.9%. For the fourth quarter, organic revenue growth was 6.4%, and parts and services revenue grew organically by 5.6%. Acquisition revenue growth for the fourth quarter was 33.1%.

Full Year 2011 Reported Results

For the full year of 2011, revenue was $3.27 billion compared with $2.47 billion in 2010, an increase of 32.4%. Income from continuing operations for the full year was $210.3 million compared with $167.1 million for the prior year, an increase of 25.8%. For the full year of 2011, organic revenue growth was 10.7%, and parts and services revenue grew organically by 7.9%. Acquisition revenue growth for 2011 was 21.5%.

Balance Sheet and Liquidity

As of December 31, 2011, LKQ’s balance sheet reflected cash and equivalents of $48.2 million, and the outstanding obligations under the Company’s credit facilities were $901.4 million ($240.6 million of term loans and $660.7 million of revolver borrowings). Total availability under the credit agreement at December 31, 2011 was $453.9 million, composed of $253.9 million on its revolving credit facility and $200.0 million of delayed draw term loan under its credit facility. On January 31, 2012, the Company borrowed the full $200 million available term loan and used those proceeds to repay a portion of its revolver debt.

Other Events

During the fourth quarter, LKQ acquired four businesses including the previously announced Euro Car Parts acquisition, the largest automotive aftermarket parts distributor in the United Kingdom. In North America, the Company acquired a heavy duty truck business in Colorado, a wholesale salvage business in Idaho, and a classic vehicle restoration parts and accessories distribution business in Georgia.

On November 7, 2011, the Board of Directors elected Joseph M. Holsten as the Chairman of the Board of Directors and elected Robert L. Wagman as a member of the Board of Directors.

In January 2012, Wagman was appointed LKQ’s President and Chief Executive Officer, succeeding Mr. Holsten who retired as an employee effective January 1, 2012. Mr. Holsten will continue as a consultant to the Company and Chairman of the Board of Directors.

Company Outlook

Based on current conditions and excluding restructuring expenses and any gains or losses related to acquisitions or divestitures (including changes in the fair value of contingent consideration liabilities), LKQ anticipates full year 2012 organic revenue growth from parts and services will be in the range of 5.5% to 7.5%, income from continuing operations will be in the range of $258 million to $278 million and diluted earnings per share from continuing operations will be in the range of $1.72 to $1.85.

Cash flow from operations for 2012 is projected to be in the range of $250 million to $280 million. The Company estimates capital expenditures related to property and equipment (excluding any acquisition related expenditures) will be between $100 million to $115 million.