Exhibit 99.1
LKQ Corporation Announces 2006 Fourth Quarter and Full Year Results and 2007 Financial Guidance
Chicago, IL—February 27, 2007—LKQ Corporation (NASDAQ: LKQX) today announced results for its fourth quarter ended December 31, 2006, with revenue of $204.5 million, net income of $10.2 million and diluted earnings per share of $0.18. For the full year ended December 31, 2006, revenue was $789.4 million, net income was $44.4 million and diluted earnings per share was $0.80.
“We finished the year at $0.80 diluted earnings per share, which was the high end of the range of our earnings guidance. We reported record revenue for the fourth quarter, and delivered impressive revenue growth of approximately 42.1%, with organic revenue growth at 11.2% for the quarter. We are particularly pleased to announce several acquisitions that have been completed since our last earnings call, including a recycled parts operation with facilities in Maryland and Florida, an aftermarket business based in Denver, and finally, a business that refurbishes recycled OE headlights which will allow us to obtain value from lights we formerly would have discarded,” said Joe Holsten, President and Chief Executive Officer.
2006 Reported Results
All earnings per share amounts, stock price amounts and share counts discussed herein reflect our January 2006 two-for-one stock split.
For the fourth quarter of 2006, revenue increased 42.1% to $204.5 million compared with $143.9 million for the fourth quarter of 2005. Our organic revenue growth for the quarter was 11.2%. Net income for the quarter increased 23.4% to $10.2 million compared with $8.3 million for the fourth quarter of 2005. Diluted earnings per share was $0.18 for the quarter compared with $0.15 for the fourth quarter of 2005.
For the full year ended December 31, 2006, revenue increased 44.2% to $789.4 million compared with $547.4 million for the same period in 2005. Organic revenue growth for the year was 11.6%. For the year ended December 31, 2006, net income increased 43.7% to $44.4 million compared with $30.9 million for the same period in 2005. Diluted earnings per share was $0.80 for the year ended December 31, 2006 compared with $0.63 for the same period a year ago.
Our results for the year ended December 31, 2006 include approximately $2.4 million of expenses related to the expensing of stock options in accordance with Statement of Financial Accounting Standard No. 123R “Share-Based Payment” (“SFAS 123R”). SFAS 123R became effective for LKQ Corporation on January 1, 2006. These expenses had the effect of lowering our net income by approximately $1.4 million and our diluted earnings per share by approximately $0.03 for the year.
Our consolidated aftermarket collision replacement parts revenue and wheel refurbishing revenue for the fourth quarter was $53.7 million and for the year ended December 31,
2006 was $192.5 million. In addition to wheel revenue, a subsidiary operates an aluminum smelter that melts damaged and unusable wheel cores as means of product disposal. For the eleven months of 2006 that LKQ owned the smelter, the smelter’s aluminum revenue was $28.2 million at a gross margin of approximately 7.1%.
The weighted average diluted shares outstanding for the fourth quarter was 56.2 million compared to 54.6 million for the fourth quarter of 2005 and for the year ended December 31, 2006 was 55.8 million compared to 48.7 million for year ended December 31, 2005. The number of weighted average diluted shares of common stock outstanding in 2006 changed from 2005 due to the issuance of 6.4 million new shares in our October 2005 public offering, exercises of stock options and warrants, and the increase in our stock price.
Business Acquisitions
During the first nine months of 2006, we acquired nine businesses. They consisted of seven recycle businesses, one aftermarket business and a wheel refurbishing business that also operates an aluminum smelter. These businesses had approximately $87.5 million of revenue in 2005, excluding the aluminum smelter revenue.
In addition we acquired three businesses during the fourth quarter of 2006 and through the date of this release: Eagle Industries, an aftermarket business; Northern Light Refinishing, a small light refurbishing business; and Potomac German Auto, a recycling business that serves the professional repair market. These three businesses had approximately $12.1 million in trailing annualized revenue prior to our acquisition of them.
Eagle Industries operated three aftermarket warehouses in Denver, CO, Gray, TN and Greensboro, NC. Since this acquisition we have consolidated the Gray and Greensboro operations into two of our existing business locations.
Northern Light Refinishing is a head and tail lamp refurbishing company that operates out of a facility near Grand Rapids, MI. While currently a small business, we believe our vast quantity of light cores can be refurbished back into high quality replacement lights than can be sold to our collision repair customers. This business provides us with the know-how and the technology to refurbish used lighting products.
Potomac German operates on two recycling properties totaling 13 acres. One facility is in Frederick, MD and the other in St. Augustine, FL. These locations specialize in Mercedes Benz and BMW vehicles.
Company Outlook
We expect that 2007 organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2006 business acquisitions and the two acquisitions that we have completed so far in 2007. We expect net income to be within a range of $53.5 million to $56.5 million and diluted earnings per share to be between $0.95 and $1.00.
For the first quarter of 2007, we expect net income to be within a range of $14.2 million to $15.2 million and diluted earnings per share to be between $0.25 and $0.27.
We anticipate that net cash provided by operating activities for 2007 will be over $55.0 million. We estimate our full year 2007 capital expenditures related to property and equipment, excluding expenditures for acquiring businesses, will be between $45.0 to $50.0 million. This includes approximately $5.0 million related to capital planned in late 2006 on projects that became delayed. As of February 26, 2007, we had outstanding debt under our bank credit facility of $97.0 million.
We estimate the weighted average diluted shares outstanding for the full year 2007 will be approximately 56.5 million. These share numbers are estimates and will be affected by factors such as any future stock issuances, the number of our options exercised in subsequent periods, and changes in our stock price.
2006 Earnings Results and 2007 Financial Guidance Conference Call
We will host an audio webcast to discuss our 2006 earnings results and our 2007 financial guidance on Tuesday, February 27, 2007 at 10:30 a.m. Eastern Time. The live audio webcast can be accessed on the internet at www.lkqcorp.com in the Investor Relations section. An online replay of the webcast will be available on our website approximately two hours after the live presentation and will remain on the site until March 14, 2007.
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.
CONTACT: LKQ Corporation
Mark T. Spears, Executive Vice President and Chief Financial Officer
312-621-1950
irinfo@lkqcorp.com
Financial Tables To Follow
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
| $ | 204,546 |
| $ | 143,922 |
| $ | 789,381 |
| $ | 547,392 |
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of goods sold |
| 112,960 |
| 76,390 |
| 431,832 |
| 289,788 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross margin |
| 91,586 |
| 67,532 |
| 357,549 |
| 257,604 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Facility and warehouse expenses |
| 23,273 |
| 15,917 |
| 86,298 |
| 60,113 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Distribution expenses |
| 19,967 |
| 16,263 |
| 80,088 |
| 61,480 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Selling, general and administrative expenses |
| 26,929 |
| 19,596 |
| 102,174 |
| 74,495 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
| 3,059 |
| 2,485 |
| 11,823 |
| 8,574 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
| 18,358 |
| 13,271 |
| 77,166 |
| 52,942 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other (income) expense: |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| 1,743 |
| 187 |
| 5,955 |
| 2,228 |
| ||||
Interest income |
| (38 | ) | (253 | ) | (131 | ) | (341 | ) | ||||
Other income, net |
| (307 | ) | (27 | ) | (1,479 | ) | (628 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total other expense |
| 1,398 |
| (93 | ) | 4,345 |
| 1,259 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income before provision for income taxes |
| 16,960 |
| 13,364 |
| 72,821 |
| 51,683 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Provision for income taxes |
| 6,770 |
| 5,108 |
| 28,426 |
| 20,796 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
| $ | 10,190 |
| $ | 8,256 |
| $ | 44,395 |
| $ | 30,887 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net income per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | 0.19 |
| $ | 0.16 |
| $ | 0.84 |
| $ | 0.70 |
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted |
| $ | 0.18 |
| $ | 0.15 |
| $ | 0.80 |
| $ | 0.63 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 53,331 |
| 50,530 |
| 52,827 |
| 44,019 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Diluted |
| 56,168 |
| 54,574 |
| 55,817 |
| 48,715 |
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Condensed Statements of Cash Flows
(In thousands)
|
| Year Ended December 31, |
| ||||
|
| 2006 |
| 2005 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
| ||
Net income |
| $ | 44,395 |
| $ | 30,887 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 12,086 |
| 8,574 |
| ||
Share-based compensation expense |
| 2,461 |
| 42 |
| ||
Deferred income taxes |
| 3,618 |
| 1,667 |
| ||
Excess tax benefit from share-based payment arrangements |
| (7,101 | ) | — |
| ||
Gain on sale of property and equipment |
| (20 | ) | (159 | ) | ||
Gain on sale of investment securities |
| (719 | ) | (335 | ) | ||
Changes in operating assets and liabilities, net of effects from purchase transactions: |
|
|
|
|
| ||
Receivables |
| (4,133 | ) | (2,429 | ) | ||
Inventory |
| (8,671 | ) | (8,554 | ) | ||
Income taxes payable |
| 7,071 |
| 5,431 |
| ||
Other operating assets and liabilities |
| 3,394 |
| 2,409 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
| 52,381 |
| 37,533 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
| ||
Purchases of property and equipment |
| (36,152 | ) | (26,218 | ) | ||
Proceeds from sale of property and equipment |
| 250 |
| 825 |
| ||
Proceeds from sale of investment securities |
| 848 |
| 433 |
| ||
Expenditures for intangible assets |
| — |
| (3 | ) | ||
Repayment of escrow |
| (2,561 | ) | — |
| ||
Proceeds from conversion of escrow |
| — |
| 2,561 |
| ||
Decrease in restricted cash in escrow |
| 450 |
| 149 |
| ||
Cash used in acquisitions |
| (73,492 | ) | (103,769 | ) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
| (110,657 | ) | (126,022 | ) | ||
|
|
|
|
|
| ||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
| ||
Proceeds from the sale of common stock |
| — |
| 87,898 |
| ||
Proceeds from exercise of stock options and warrants |
| 6,262 |
| 11,797 |
| ||
Excess tax benefit from share-based payment arrangements |
| 7,101 |
| — |
| ||
Debt issuance costs |
| — |
| (302 | ) | ||
Net borrowings of long-term debt |
| 45,771 |
| (9,343 | ) | ||
|
|
|
|
|
| ||
Net cash provided by financing activities |
| 59,134 |
| 90,050 |
| ||
|
|
|
|
|
| ||
Net increase in cash and equivalents |
| 858 |
| 1,561 |
| ||
|
|
|
|
|
| ||
Cash and equivalents, beginning of period |
| 3,173 |
| 1,612 |
| ||
|
|
|
|
|
| ||
Cash and equivalents, end of period |
| $ | 4,031 |
| $ | 3,173 |
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
(In thousands, except share and per share data)
|
| December 31, |
| ||||
|
| 2006 |
| 2005 |
| ||
Assets |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and equivalents |
| $ | 4,031 |
| $ | 3,173 |
|
Restricted cash |
| — |
| 450 |
| ||
Receivables, net |
| 49,254 |
| 39,500 |
| ||
Inventory |
| 124,541 |
| 103,655 |
| ||
Deferred income taxes |
| 2,619 |
| 2,122 |
| ||
Prepaid expenses |
| 3,369 |
| 2,437 |
| ||
|
|
|
|
|
| ||
Total Current Assets |
| 183,814 |
| 151,337 |
| ||
|
|
|
|
|
| ||
Property and Equipment, net |
| 127,084 |
| 97,218 |
| ||
Intangibles |
|
|
|
|
| ||
Goodwill |
| 246,232 |
| 181,792 |
| ||
Other intangibles, net |
| 68 |
| 88 |
| ||
Deferred Income Taxes |
| — |
| 2,146 |
| ||
Other Assets |
| 7,157 |
| 6,845 |
| ||
|
|
|
|
|
| ||
Total Assets |
| $ | 564,355 |
| $ | 439,426 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 19,192 |
| $ | 15,496 |
|
Escrow liability |
| 50 |
| 2,611 |
| ||
Accrued expenses |
|
|
|
|
| ||
Accrued payroll-related liabilities |
| 10,939 |
| 10,115 |
| ||
Accrued procurement liability |
| 1,414 |
| 2,537 |
| ||
Other accrued expenses |
| 17,151 |
| 11,062 |
| ||
Income taxes payable |
| 304 |
| 819 |
| ||
Deferred revenue |
| 3,859 |
| 3,440 |
| ||
Current portion of long-term obligations |
| 8,485 |
| 1,481 |
| ||
|
|
|
|
|
| ||
Total Current Liabilities |
| 61,394 |
| 47,561 |
| ||
|
|
|
|
|
| ||
Long-Term Obligations, Excluding Current Portion |
| 91,962 |
| 45,996 |
| ||
Deferred Income Tax Liability |
| 1,848 |
| — |
| ||
Other Noncurrent Liabilities |
| 7,332 |
| 4,032 |
| ||
|
|
|
|
|
| ||
Redeemable Common Stock, $0.01 par value, 100,000 shares issued |
| 617 |
| 617 |
| ||
|
|
|
|
|
| ||
Commitments and Contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Stockholders’ Equity: |
|
|
|
|
| ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 53,299,827 and 51,414,314 shares issued at December 31, 2006 and 2005, respectively. |
| 533 |
| 514 |
| ||
Additional paid-in capital |
| 323,189 |
| 307,304 |
| ||
Warrants |
| — |
| 80 |
| ||
Retained earnings |
| 76,422 |
| 32,027 |
| ||
Accumulated other comprehensive income |
| 1,058 |
| 1,295 |
| ||
|
|
|
|
|
| ||
Total Stockholders’ Equity |
| 401,202 |
| 341,220 |
| ||
|
|
|
|
|
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 564,355 |
| $ | 439,426 |
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Supplementary Data
($ in thousands)
|
| Three Months Ended December 31, |
| |||||||||||||
Operating Highlights |
| 2006 |
| 2005 |
|
|
|
|
| |||||||
|
|
|
| % of |
|
|
| % of |
|
|
|
|
| |||
|
|
|
| Revenue |
|
|
| Revenue |
| $ Growth |
| % Growth |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Revenue |
| $ | 204,546 |
| 100.0 | % | $ | 143,922 |
| 100.0 | % | $ | 60,624 |
| 42.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Cost of goods sold |
| 112,960 |
| 55.2 | % | 76,390 |
| 53.1 | % | 36,570 |
| 47.9 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Gross margin |
| 91,586 |
| 44.8 | % | 67,532 |
| 46.9 | % | 24,054 |
| 35.6 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Facility and warehouse expenses |
| 23,273 |
| 11.4 | % | 15,917 |
| 11.1 | % | 7,356 |
| 46.2 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Distribution expenses |
| 19,967 |
| 9.8 | % | 16,263 |
| 11.3 | % | 3,704 |
| 22.8 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Selling, general and administrative expenses |
| 26,929 |
| 13.2 | % | 19,596 |
| 13.6 | % | 7,333 |
| 37.4 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Depreciation and amortization |
| 3,059 |
| 1.5 | % | 2,485 |
| 1.7 | % | 574 |
| 23.1 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating income |
| 18,358 |
| 9.0 | % | 13,271 |
| 9.2 | % | 5,087 |
| 38.3 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Interest expense |
| 1,743 |
| 0.9 | % | 187 |
| 0.1 | % | 1,556 |
| 832.1 | % | |||
Interest income |
| (38 | ) | 0.0 | % | (253 | ) | -0.2 | % | 215 |
| -85.0 | % | |||
Other (income) expense, net |
| (307 | ) | -0.2 | % | (27 | ) | 0.0 | % | (280 | ) | 1037.0 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total other expense |
| 1,398 |
| 0.7 | % | (93 | ) | -0.1 | % | 1,491 |
| -1603.2 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Income before provision for income taxes |
| 16,960 |
| 8.3 | % | 13,364 |
| 9.3 | % | 3,596 |
| 26.9 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Provision for income taxes |
| 6,770 |
| 3.3 | % | 5,108 |
| 3.5 | % | 1,662 |
| 32.5 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net income |
| $ | 10,190 |
| 5.0 | % | $ | 8,256 |
| 5.7 | % | $ | 1,934 |
| 23.4 | % |
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Supplementary Data
($ in thousands)
|
| Year Ended December 31, |
| |||||||||||||
Operating Highlights |
| 2006 |
| 2005 |
|
|
|
|
| |||||||
|
|
|
| % of |
|
|
| % of |
|
|
|
|
| |||
|
|
|
| Revenue |
|
|
| Revenue |
| $ Growth |
| % Growth |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Revenue |
| $ | 789,381 |
| 100.0 | % | $ | 547,392 |
| 100.0 | % | $ | 241,989 |
| 44.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Cost of goods sold |
| 431,832 |
| 54.7 | % | 289,788 |
| 52.9 | % | 142,044 |
| 49.0 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Gross margin |
| 357,549 |
| 45.3 | % | 257,604 |
| 47.1 | % | 99,945 |
| 38.8 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Facility and warehouse expenses | �� | 86,298 |
| 10.9 | % | 60,113 |
| 11.0 | % | 26,185 |
| 43.6 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Distribution expenses |
| 80,088 |
| 10.1 | % | 61,480 |
| 11.2 | % | 18,608 |
| 30.3 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Selling, general and administrative expenses |
| 102,174 |
| 12.9 | % | 74,495 |
| 13.6 | % | 27,679 |
| 37.2 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Depreciation and amortization |
| 11,823 |
| 1.5 | % | 8,574 |
| 1.6 | % | 3,249 |
| 37.9 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating income |
| 77,166 |
| 9.8 | % | 52,942 |
| 9.7 | % | 24,224 |
| 45.8 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Interest expense |
| 5,955 |
| 0.8 | % | 2,228 |
| 0.4 | % | 3,727 |
| 167.3 | % | |||
Interest income |
| (131 | ) | 0.0 | % | (341 | ) | -0.1 | % | 210 |
| -61.6 | % | |||
Other (income) expense, net |
| (1,479 | ) | -0.2 | % | (628 | ) | -0.1 | % | (851 | ) | 135.5 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total other expense |
| 4,345 |
| 0.6 | % | 1,259 |
| 0.2 | % | 3,086 |
| 245.1 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Income before provision for income taxes |
| 72,821 |
| 9.2 | % | 51,683 |
| 9.4 | % | 21,138 |
| 40.9 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Provision for income taxes |
| 28,426 |
| 3.6 | % | 20,796 |
| 3.8 | % | 7,630 |
| 36.7 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net income |
| $ | 44,395 |
| 5.6 | % | $ | 30,887 |
| 5.6 | % | $ | 13,508 |
| 43.7 | % |
The following table reconciles EBITDA to net income:
|
| Three Months |
| Year |
| ||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
| (In thousands) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
| $ | 10,190 |
| $ | 8,256 |
| $ | 44,395 |
| $ | 30,887 |
|
Depreciation and amortization |
| 3,171 |
| 2,485 |
| 12,086 |
| 8,574 |
| ||||
Interest, net |
| 1,705 |
| (66 | ) | 5,824 |
| 1,887 |
| ||||
Provision for income taxes |
| 6,770 |
| 5,108 |
| 28,426 |
| 20,796 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) |
| $ | 21,836 |
| $ | 15,783 |
| $ | 90,731 |
| $ | 62,144 |
|
|
|
|
|
|
|
|
|
|
| ||||
EBITDA as a percentage of revenue |
| 10.7 | % | 11.0 | % | 11.5 | % | 11.4 | % |