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Before we begin our discussion, I would like to remind everyone that the statements made in this call that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include 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. We assume no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made except as required by law.Please refer to our Form 10-K and other subsequent documents filed with the SEC and the press release we issued this morning for more information on potential risk. Hopefully, everyone has had a chance to look at our 8-K, which we filed with the SEC earlier today. As normal, we are planning to file our 10-Q in the next few days. And with that, I am happy to turn the call over to Mr. Rob Wagman. Robert L. Wagman Thank you, Joe. Good morning, and thank you for joining us on the call today. We are very pleased with the results we reported this morning. Diluted earnings per share in Q1 was a record $0.54, an increase of 38% as compared to $0.39 for the first quarter of 2011. Please note that the first quarter 2012 diluted earnings per share included a gain equal to $0.04 per share that resulted from a favorable legal settlement of $0.03 a share in a change in fair value of contingent consideration liabilities of $0.01 a share. Earnings per share in the first quarter of 2011 included a charge of $0.02 per share as a result of loss on debt extinguishment. Revenue reached a record quarterly high of $1.03 billion in the quarter, an increase of 31.2% as compared to Q1 2011.
As we mentioned on our last call, during the first quarter, we witnessed a very mild winter, which created some headwind for the collision parts side of our business, and we also faced tough comp for the first quarter of 2011 when the winter weather was very severe.Based on dialogue with some insurance carriers, insurance claim volume was down 5% to 6% year-over-year in the first quarter of 2012 with some regional carriers reporting claims reductions in the high teens. Despite the mild winter and high gas prices, the company reported 3.2% organic -- total organic growth and 3.6% organic growth for products and services. Revenue growth from acquisitions was 28% in the quarter. We are particularly pleased with the organic growth of our recycled, remanufactured and related products and services revenue. In the quarter, sales from those products grew organically 8.5% compared to the same period in 2011. We encountered softness in our collision product sales, primarily due to the mild winter and the subsequent drop in reported claims. The continued growth in organic parts and services revenue in 2012 is a result of the increased use by insurers in their direct repair program networks of alternate quality replacement parts to reduce claims costs. Although we are only through one quarter, our channel checks have indicated improved penetration of alternative part usage, and it appears we are trending at our historical averages of about 100 basis point improvement in alternative part usage. We anticipate these gains to continue for the balance of the year. Next, I'd like to share some operational statistics. During the quarter, we purchased over 59,000 vehicles for dismantling by our wholesale operations, which is a 7% increase over Q1 2011. As for volume at the auctions, the outlook for supply remains good starting out in 2012. With inventory already on hand and a continuation of our current run rate for acquiring cars, we should have sufficient inventory to grow our recycled parts operations. Read the rest of this transcript for free on seekingalpha.com