LKQ (LKQ) 8-K Results of Operations and Financial Condition

Exhibit 99.1

LKQ Corporation Announces 2005 Third Quarter Net Income Results Up 45%

          CHICAGO, Oct. 27 /PRNewswire-FirstCall/ -- LKQ Corporation (Nasdaq: LKQX) today reported results for its third quarter ended September 30, 2005, with revenue of $133.6 million, net income of $6.6 million and diluted earnings per share of $0.28.

          “For the third quarter we exceeded our previously issued earnings estimates.  We had revenue growth of approximately 26%.  This included very strong organic revenue growth of 11% in a quarter that has historically been the weakest season for us.  Our net income increased by almost 45% and our diluted earnings per share increased by 40%.  We were particularly pleased with the expansion of our operating income margin to 8.6% compared to 7.5% in the third quarter of 2004, which was largely attributable to improved gross margin,” said Joe Holsten, President and Chief Executive Officer.

          2005 Reported Results
          For the third quarter of 2005, revenue increased 26.0% to $133.6 million compared with $106.0 million for the third quarter of 2004.  Approximately $15.9 million in revenue growth for the quarter was from businesses we acquired.  For the quarter, net income increased 44.7% to $6.6 million compared with $4.6 million for the third quarter of 2004.  Diluted earnings per share was $0.28 for the quarter compared with $0.20 for the third quarter of 2004.

          For the nine months ended September 30, 2005, revenue increased 29.7% to $403.5 million compared with $311.0 million for the same period in 2004.  This included organic revenue growth of 12.3%.  For the nine months ended September 30, 2005, net income increased 45.6% to $22.6 million compared with $15.5 million for the same period in 2004.  Diluted earnings per share was $0.96 for the nine months ended September 30, 2005 compared with $0.69 for the same period a year ago.

          Our consolidated aftermarket collision replacement parts revenue for the quarter was $19.2 million and for the nine months ended September 30, 2005 was $58.9 million.

          The weighted average diluted shares outstanding for the quarter was 23.8 million compared to 22.5 million for the third quarter of 2004 and for the nine months ended September 30, 2005 was 23.5 million compared to 22.4 million for the nine months ended September 30, 2004.  The number of weighted average diluted shares of common stock in 2005 changed from 2004 due primarily to the effect of stock options and warrants and the increase in our stock price.

          2005 Acquisitions
          On February 1, 2005, we acquired for approximately $15.4 million net of acquired cash, Bodymaster Auto Parts, Inc. and a related company that operate in the aftermarket collision automotive replacement parts business.  This business operates from two locations near Philadelphia and Washington, D.C. The revenue of this business in 2004 was approximately $19.5 million.

          On April 1, 2005, we acquired A&R Auto Parts, Inc., a recycled OEM automotive replacement parts company.  This business is located between Spartanburg and Greenville, South Carolina.  A&R’s revenue for 2004 was approximately $11.0 million.

          In late August 2005, we acquired two businesses that operate in the aftermarket collision automotive replacement parts business.  Independent Auto Parts is headquartered in Pennsylvania and Mid-State Aftermarket Parts, Inc. and a related company are headquartered in Arkansas.  These businesses operate from six locations serving customers throughout the state of Arkansas, and markets in Tulsa, Memphis, central Pennsylvania and the southeastern portion of New York State.  Revenue of these businesses for 2004 was approximately $16.6 million.  We paid approximately $13.4 million, net of acquired cash, for these businesses.

          Stock Offering
          On October 4, 2005, we completed our public offering of 3,967,500 shares of our common stock at a price per share to the public of $29.00.  The offering included 3,217,500 primary shares sold by us and 750,000 secondary shares sold by selling stockholders.  The number of shares sold by us included 517,500 shares sold pursuant to the exercise of the underwriters’ over-allotment option.  We received approximately $88.0 million in net proceeds from the sale of the shares by us in the offering, after deducting underwriting discounts and commissions and the estimated expenses of the offering.

          Company 2005 Outlook
          We expect that full year 2005 revenue will be within a range of $542.0 million to $544.5 million and that organic revenue growth will be in the low double digits, with the balance of the growth from the full year impact of 2004 business acquisitions and the 2005 business acquisitions we have completed to date.  We expect net income to be within a range of $29.2 million to $30.0 million and diluted earnings per share to be between $1.19 and $1.22.

          Our 2005 guidance does not include the impact from SFAS No. 123R, Share-Based Payment, which is now scheduled to become effective in our fiscal year beginning January 1, 2006.  Our 2005 guidance also does not include the effect of any future business acquisitions.

          We estimate the weighted average diluted shares outstanding for the full year 2005 to be approximately 24.5 million and for the fourth quarter to be approximately 27.2 million.  These share numbers are estimates and as such will be affected by factors such as any future stock issuances, the number of our options and warrants granted and exercised in subsequent periods, and changes in our stock price.

          Quarterly Conference Call
          We will host an audio webcast to discuss our third quarter results on Thursday, October 27, 2005 at 10:30 a.m. Eastern Time.  The live audio webcast can be accessed on the internet at http://www.lkqcorp.com in the Investor Relations section.  An online replay of the webcast will be available on the website approximately two hours after the live presentation and will remain on the site until November 27, 2005.

          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.  LKQ operates over 95 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, 2005 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.

Financial Tables To Follow

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)

	Three Months Ended  September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
Revenue	$	133,640		$	106,045		$	403,470		$	310,996
Cost of goods sold		70,696			57,362			213,398			165,876
Gross margin		62,944			48,683			190,072			145,120
Facility and warehouse expenses		15,240			12,055			44,196			34,584
Distribution expenses		15,724			12,525			45,217			34,952
Selling, general and administrative expenses		18,455			14,333			54,899			43,580
Depreciation and amortization		2,060			1,795			6,089			5,017
Operating income		11,465			7,975			39,671			26,987
Other (income) expense:
Interest expense		734			318			2,041			1,130
Interest income		(30	)		(7	)		(88	)		(28	)
Other (income) expense, net		(361	)		117			(601	)		(30	)
Total other expense		343			428			1,352			1,072
Income before provision for income taxes		11,122			7,547			38,319			25,915
Provision for income taxes		4,519			2,985			15,688			10,375
Net income	$	6,603		$	4,562		$	22,631		$	15,540
Net income per share:
Basic	$	0.31		$	0.23		$	1.08		$	0.78
Diluted	$	0.28		$	0.20		$	0.96		$	0.69
Weighted average common shares outstanding:
Basic		21,245			20,203			20,913			19,966
Diluted		23,839			22,492			23,480			22,381

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Condensed Statements of Cash Flows
(In thousands)

	Nine Months Ended September 30,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	22,631		$	15,540
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,089			5,017
Deferred income taxes		1,198			2,614
Writeoff of debt issuance costs		—			346
(Gain) loss on sale of property and equipment		(161	)		115
Gain on sale of investment securities		(335	)		—
Other adjustments		42			(106	)
Changes in operating assets and liabilities, net of effects from purchase transactions:
Receivables		66			(1,630	)
Inventory		(461	)		(1,544	)
Other operating assets and liabilities		6,182			(167	)
Net cash provided by operating activities		35,251			20,185
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(11,111	)		(21,360	)
Proceeds from sale of property and equipment		877			77
Expenditures for intangible assets		(3	)		(4	)
Purchase of investment securities		—			(650	)
Proceeds from conversion of escrow		2,561			—
Decrease in restricted cash in escrow		132			—
Cash used in acquisitions		(37,278	)		(43,514	)
Net cash used in investing activities		(44,822	)		(65,451	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the sale of common stock and warrant exercises		7,387			3,705
Debt issuance costs		(302	)		(249	)
Net borrowings of long-term debt		4,712			28,811
Net cash provided by financing activities		11,797			32,267
Net increase (decrease) in cash and equivalents		2,226			(12,999	)
Cash and equivalents, beginning of period		1,612			16,082
Cash and equivalents, end of period	$	3,838		$	3,083

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Condensed Balance Sheets
(In thousands, except share data)

	September 30, 2005		December 31, 2004
Assets
Current Assets:
Cash and equivalents	$	3,838	$	1,612
Restricted cash		467		—
Receivables, net		30,818		28,305
Inventory		84,610		74,150
Prepaid expenses and other current assets		3,441		3,375
Total Current Assets		123,174		107,442
Property and Equipment, net		77,696		70,730
Intangibles
Goodwill		126,049		100,319
Other intangibles, net		94		45
Deferred Income Taxes		3,256		4,621
Other Assets		6,466		5,118
Total Assets	$	336,735	$	288,275
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	10,885	$	8,374
Escrow liability		2,613		50
Accrued expenses
Accrued payroll-related liabilities		7,930		6,731
Accrued procurement liability		2,678		1,989
Other accrued expenses		10,577		8,249
Income taxes payable		315		1,251
Deferred revenue		3,495		2,602
Current portion of long-term obligations		409		317
Total Current Liabilities		38,902		29,563
Long-Term Obligations, Excluding Current Portion		55,198		49,945
Other Noncurrent Liabilities		4,134		4,079
Redeemable Common Stock, $0.01 par value, 50,000 shares issued		617		617
Commitments and Contingencies
Stockholders’ Equity:
Common stock, $0.01 par value, 500,000,000 shares authorized, 21,361,073 and 20,565,413 shares issued at September 30, 2005 and December 31, 2004, respectively.		214		206
Additional paid-in capital		212,568		201,484
Warrants		239		261
Retained earnings		23,771		1,140
Accumulated other comprehensive income		1,092		980
Total Stockholders’ Equity		237,884		204,071
Total Liabilities and Stockholders’ Equity	$	336,735	$	288,275

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Supplementary Data
($ in thousands)

	Three Months Ended September 30,
	2005						2004
Operating Highlights				% of Revenue						% of Revenue			$ Growth			% Growth
Revenue	$	133,640			100.0	%	$	106,045			100.0	%	$	27,595			26.0	%
Cost of goods sold		70,696			52.9	%		57,362			54.1	%		13,334			23.2	%
Gross margin		62,944			47.1	%		48,683			45.9	%		14,261			29.3	%
Facility and warehouse expenses		15,240			11.4	%		12,055			11.4	%		3,185			26.4	%
Distribution expenses		15,724			11.8	%		12,525			11.8	%		3,199			25.5	%
Selling, general and administrative expenses		18,455			13.8	%		14,333			13.5	%		4,122			28.8	%
Depreciation and amortization		2,060			1.5	%		1,795			1.7	%		265			14.8	%
Operating income		11,465			8.6	%		7,975			7.5	%		3,490			43.8	%
Other (income) expense:
Interest expense		734			0.5	%		318			0.3	%		416			130.8	%
Interest income		(30	)		0.0	%		(7	)		0.0	%		(23	)		328.6	%
Other (income) expense, net		(361	)		-0.3	%		117			0.1	%		(478	)		-408.5	%
Total other expense		343			0.3	%		428			0.4	%		(85	)		-19.9	%
Income before provision for income taxes		11,122			8.3	%		7,547			7.1	%		3,575			47.4	%
Provision for income taxes		4,519			3.4	%		2,985			2.8	%		1,534			51.4	%
Net income	$	6,603			4.9	%	$	4,562			4.3	%	$	2,041			44.7	%

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Supplementary Data
($ in thousands)

		Nine Months Ended September 30,
	��	2005						2004
Operating Highlights					% of Revenue						% of Revenue			$Growth			% Growth
Revenue		$	403,470			100.0	%	$	310,996			100.0	%	$	92,474			29.7	%
Cost of goods sold			213,398			52.9	%		165,876			53.3	%		47,522			28.6	%
Gross margin			190,072			47.1	%		145,120			46.7	%		44,952			31.0	%
Facility and warehouse expenses			44,196			11.0	%		34,584			11.1	%		9,612			27.8	%
Distribution expenses			45,217			11.2	%		34,952			11.2	%		10,265			29.4	%
Selling, general and administrative expenses			54,899			13.6	%		43,580			14.0	%		11,319			26.0	%
Depreciation and amortization			6,089			1.5	%		5,017			1.6	%		1,072			21.4	%
Operating income			39,671			9.8	%		26,987			8.7	%		12,684			47.0	%
Other (income) expense:
Interest expense			2,041			0.5	%		1,130			0.4	%		911			80.6	%
Interest income			(88	)		0.0	%		(28	)		0.0	%		(60	)		214.3	%
Other (income) expense, net			(601	)		-0.1	%		(30	)		0.0	%		(571	)		1903.3	%
Total other expense			1,352			0.3	%		1,072			0.3	%		280			26.1	%
Income before provision for income taxes			38,319			9.5	%		25,915			8.3	%		12,404			47.9	%
Provision for income taxes			15,688			3.9	%		10,375			3.3	%		5,313			51.2	%
Net income		$	22,631			5.6	%	$	15,540			5.0	%	$	7,091			45.6	%

The following table reconciles EBITDA to net income:

	Three Months Ended September 30,						Nine Months Ended September30,
	2005			2004			2005			2004
	(In thousands)
Net income	$	6,603		$	4,562		$	22,631		$	15,540
Depreciation and amortization		2,060			1,795			6,089			5,017
Interest, net		704			311			1,953			1,102
Provision for income taxes		4,519			2,985			15,688			10,375
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	13,886		$	9,653		$	46,361		$	32,034
EBITDA as a percentage of revenue		10.4	%		9.1	%		11.5	%		10.3	%

          CONTACT: LKQ Corporation
                               Mark T. Spears, Senior Vice President and Chief Financial Officer
                               312-621-1950
                               irinfo@lkqcorp.com