LKQ Corporation Announces Financial Results and Another Acquisition

LKQ_Logo LKQ Corporation has announced results for its fourth quarter and full year ended December 31, 2015. For the fourth quarter of 2015, net income was $95.1 million, an increase of 18.1% compared to the fourth quarter of 2014, and diluted earnings per share was $0.31, a 19.2% increase year over year. For the full year 2015, net income was $423.2 million, an increase of 10.9% compared to 2014, and diluted earnings per share was $1.38, a 10.4% increase over the $1.25 reported for 2014. On an adjusted basis, EPS increased 11.8% to $1.42 in 2015 compared to $1.27 in 2014.

“We reached a major milestone in 2015 by surpassing $7 billion in annual revenue for the first time. I am particularly proud of the 19.2% growth in our diluted earnings per share in the fourth quarter, and the strong increase in the EBITDA margins of our European segment to 10.1% for full year 2015. These results are a testament to the hard work and dedication of our 31,000 plus employees,” stated Robert Wagman, President and Chief Executive Officer of LKQ Corporation.

Highlights of LKQ’s announcement include:

Annual revenue growth of 6.7% to $7.19 billion
Annual organic revenue growth for parts and services of 7.0%
Annual net income growth of 10.9% to $423.2 million

LKQ to Acquire Pittsburgh Glass Works

In other news, LKQ announced that it has signed a definitive agreement to acquire Pittsburgh Glass Works LLC (“PGW”) from private equity firm Kohlberg & Company LLC (“Kohlberg”) and PPG Industries, Inc. (“PPG”) for an enterprise value of $635 million. PGW is a leading global distributor and manufacturer of automotive glass products. PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing, and retailer alliance partnerships. PGW operates approximately 120 distribution branches serving over 7,000 automotive glass retailer shops across North America. In addition, PGW operates 12 automotive glass fabrication facilities in North America, Europe and China.

The transaction is expected to be completed in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.