Auto Recycling E Newsletter

Auto Recycling eNewsletter

For immediate release -February 2006

Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to email Mike Gibson

To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.

This Month’s News

LKQ Corporation Acquires Wheel Business CHICAGO, Feb. 1, 2006, The Auto Channel

LKQ Corporation today announced that it acquired Transwheel Corporation, an aluminum alloy wheel refurbishing and distribution business. Terms of the transaction were not disclosed. Transwheel currently operates refurbishing and distribution facilities in Huntington, IN; Manchester, CT; Williamsport, MD; and Tampa, FL and distribution locations in Ferndale, MI and Bensenville, IL. Transwheel's third party revenue for 2005 was approximately $28.5 million from the sale or restoration of wheels.

LKQ Corporation Announces 2006 Financial Guidance, Chicago, Feb 1, 2006, The Auto Channel

LKQ Corporation today announced that it expects its 2006 earnings per share after the recent two-for-one stock split and after including its recent acquisition of Transwheel Corporation, to be in the range of $0.72 to $0.76 on a fully diluted basis. This estimate includes approximately a $0.03 per share effect of expensing stock options. Our 2006 guidance does not include any additional 2006 business acquisitions. However, we do have a solid backlog of candidates to review for potential acquisitions and intend to aggressively pursue businesses that will contribute to long-term stockholder value.

Copart, Inc. (NASDAQ:CPRT) Announces Strategic Investment in Dallas, Texas Based lanelogic, LLC; lanelogic and Copart/VB2 Have Partnered to Bring Dealers the First National Used Vehicle Market Maker, Business Wire, Feb. 6, 2006

Lanelogic and Copart/VB2 (NASDAQ:CPRT) today jointly announced that Copart has made a strategic private equity investment in lanelogic, the nation's first used vehicle market maker. lanelogic acts like a Wall Street trading floor that electronically facilitates vehicle trading between automotive dealerships nationwide. Offering bids in minutes on fresh trade vehicles or aged units, lanelogic will leverage real-time market data to instantly value vehicles. VB2's virtual auction-style sales platform compliments the lanelogic platform ensuring that a dealer can receive a bid on any fresh trade vehicle by offering an alternative auction for vehicles that cannot be redistributed to a franchised dealership. Willis J. Johnson, Founder/CEO of Copart, which owns VB2, stated, "VB2 powers the sale of over one million vehicles annually. We can offer lanelogic a fluid instant auction platform that allows them to tap into our 103,000 buyers. lanelogic's utilization of VB2 enables bidders to purchase franchise dealers' trades, creating the first fresh trade online auction." Stated Bruce Thompson, Founder/CEO of lanelogic, "Our exclusive relationship with VB2 gives us an alternative platform to liquidate vehicles in minutes. People don't realize that VB2 sells a vehicle online every 8 seconds to buyers all over the world. Our model is to sell vehicles to dealers where they are most likely to retail in 28 days or less. However, many vehicles simply won't work for a franchised store. These vehicles will instantly be launched to our VB2 sale for our dealers ensuring they get top dollar for all types of vehicles."

How’s Business?

“ To succeed in business, to reach the top, an individual must know all it is possible to know about that business.” J. Paul Getty

AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience in 3 staff members, the group is THE definitive source for recyclers’ management and training needs. Mike Gibson and Tammy Sturgeon joined the team in 2003, and bring a wealth of experience to the team, plus more resources, as there have been more requests for help than Ron could meet. The founder, Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted and published in Chinese. In June 2003, he joined the new ownership and management team of GreenLeaf. He also manages his real estate holdings and investments. You can learn more about how to help your business at www.autosalvageconsultant.com. Mike can be reached at 1409 Carson, Haltom City, TX 76117, (preferably) email Mike Gibson, or 817-925-8430.