LKQ CORPORATION ANNOUNCES RESULTS FOR FIRST QUARTER 2019
Revenue growth of 14% to $3.1 billion
Organic revenue growth for parts and services of 0.1%; 1.3% on a per day basis
Non-cash impairment charges of $52 million including assets held for sale
Net income attributable to LKQ stockholders of $98 million (down 36%); adjusted net income of $176 million (up 4%)
Diluted EPS attributable to LKQ stockholders of $0.31; adjusted diluted EPS of $0.56
Operating cash flow of $177 million (up 22%); free cash flow of $124 million (up 50%)
Repurchased 2.6 million shares for $70 million; paid down $60 million of debt
Chicago, IL (April 25, 2019) -- LKQ Corporation (Nasdaq:LKQ) today reported record revenue for the first quarter of 2019 of $3.1 billion, an increase of 14% as compared to $2.7 billion in the first quarter of 2018. For the first quarter, parts and services organic revenue growth was 0.1% and acquisition revenue growth was 18.3%, while the impact of exchange rates was a negative 3.2%, for total parts and services revenue growth of 15.2%. When adjusting for one fewer selling day in the quarter, organic revenue growth for parts and services was 1.3%.
Net income attributable to LKQ stockholders for the first quarter of 2019 was $98 million, a decrease of 36% year-over-year. Diluted earnings per share attributable to LKQ stockholders for the first quarter of 2019 was $0.31 as compared to $0.49 for the same period of 2018, a decrease of 37%. The first quarter 2019 results included non-cash impairment charges (net of tax) of $40 million related to the Company’s equity investment in Mekonomen AB and $12 million for net assets held for sale. These impairment charges reduced diluted earnings per share for the first quarter of 2019 by $0.17. On an adjusted basis net income attributable to LKQ stockholders was $176 million, an increase of 4% as compared to the $170 million for the same period of 2018. On an adjusted basis, diluted earnings per share attributable to LKQ stockholders for the first quarter of 2019 was $0.56, an increase of 2% as compared to $0.55 for the same period of 2018.
Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation, stated, “The business performed in-line with our expectations and we continue to make progress with our key productivity initiatives, despite tough revenue growth comparisons in North America, a challenging macro-economic environment in Europe, and the negative year-over-year impact of scrap and exchange rates. I am particularly pleased with the 90 basis points year-over-year improvement in our North America gross margins, a direct result of our ongoing margin enhancement and pricing initiatives to offset inflationary pressures. Additionally, during the quarter, Euro Car Parts continued to make progress towards optimizing the T2 distribution center, which had a positive impact on year-over-year European organic revenue growth and margins.”
The following information was filed by Lkq Corp (LKQ) on Thursday, April 25, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: LKQ CIK: 1065696 Form Type: 10-Q Quarterly Report Accession Number: 0001065696-19-000033 Submitted to the SEC: Wed May 01 2019 4:22:18 PM EST Accepted by the SEC: Thu May 02 2019 Period: Sunday, March 31, 2019 Industry: Wholesale Motor Vehicles And Motor Vehicle Parts And Supplies