For the fourth quarter of 2014, revenue was $1.68 billion compared with $1.32 billion for the fourth quarter of 2013. Net income during the period was $80.5 million compared with $77.9 million in the prior year while diluted earnings per share was 26 cents, flat year-over-year. For the fourth quarter, total organic revenue growth was 7.1%, including parts and services revenue growth of 8.7%. Acquisition revenue growth for the fourth quarter was 22.2%, which included the purchase of Stag-Parkway Inc.
For the full year of 2014, revenue was $6.74 billion compared with $5.06 billion in 2013, an increase of 33.1%. Net income for the full year was $381.5 million compared with $311.6 million for the prior year, an increase of 22.4%. Diluted earnings per share was $1.25, representing a 22.5% increase over the $1.02 reported for 2013. For the full year, total organic revenue growth was 7.1%, including parts and services revenue growth of 9.0%. Acquisition revenue growth for 2014 was 25.5%.
“Despite the worse than expected headwinds of deteriorating scrap prices and currency devaluations we faced during the fourth quarter and their negative effects on our fourth quarter earnings, we delivered solid results for full year 2014 with double digit revenue and diluted earnings per share growth. I am particularly pleased with our parts and services growth of 8.7% for the fourth quarter and 9% for the full year. We also reached a major milestone in 2014 by surpassing $6 billion in annual revenue for the first time,” stated Robert Wagman, President and CEO of LKQ Corp.
In a conference call, Wagman noted, “Our specialty segment continued its strong performance by posting year-over-year growth of 35.4% in the quarter, including the benefit of Stag-Parkway, a distributor we acquired in October. Full-year organic growth for our specialty segment was 12% against pre-acquisition results. In 2014 Keystone’s management team made tremendous progress on synergy and cost-saving initiatives by closing 12 of their cross-docks and adding 26 new cross-docks into existing LKQ locations.”
Wagman added, “The Keystone team continued to deliver on synergy initiatives with the previously announced Stag-Parkway Holding Co. acquisition. During the quarter, four of the 13 Stag-Parkway locations were closed and relocated into existing Keystone locations.”
For the full report click here.