LKQ Corporation Q1 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 1

2009-05-01 16:18:17.0

Tags: Call Transcript, Quarter, Earnings, Seeking Alpha, LKQ Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question comes from the line of Tony Cristello with BB&T.

Anthony Cristello – BB&T Capital Markets

Thanks. Good morning, gentlemen.

Joseph M. Holsten

Hi, good morning, Tony.

Mark T. Spears

Good morning.

Anthony Cristello – BB&T Capital Markets

First question I had was, when you look at what’s going on in the aftermarket side of the business, and you went from sort of a down almost negative to in the fourth quarter and it looks like organic growth almost is up 2.4% this quarter, so a nice sequential improvement there. And I’m assuming this. One, this was the toughest comparison year-over-year. Joe, can you sort of give us some color on, was this a sequential acceleration as the quarter progressed. Did you start-off at a level of aftermarket business and that was sort of at this run rate and maintained and, as we moved forward and you sort of anniversary some easing comparisons as the year progresses and then along with, and then I guess what you talked about your, going to a single screen for recycled and aftermarket. Should we expect continued positive growth in the aftermarket in spite along the macro backdrop?

Joseph M. Holsten

Maybe just I, looking maybe what’s happened in the industry in the quarter. I’d say, we started out the quarter fairly strong and January was, and early February was stronger than the back half of the quarter. I would say that we probably had some weather assist, especially in some of the great legs, traditional rustbelt, New England market. Coming on a more macro level, one thing I would point out, I think it help the business and the industry overall is the fact that the latest data that have come out of both estimating companies Mitchell and CCC, both of those put out reports within the last thirty days that would suggest alternative part usage gained another point to two points of market share on the collision crash parts. So, in terms of going into the balance of the year, obviously, we’ve put out same-store sales growth guidance of 6% to 8%. We’re a little short of that for the first quarter. So I think somewhat implied in those numbers would be a belief that as we get into the second half of the year and as you pointed out maybe the comparisons get slightly easier on our aftermarket parts, that we might see a little more acceleration from the first quarter.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here