LKQ Corporation (LKQ) today reported revenue for the third quarter of 2016 of $2.39 billion, an increase of 30.3 percent as compared to $1.83 billion in the third quarter of 2015. Net income for the third quarter of 2016 was $122.7 million, an increase of 21.1 percent as compared to $101.3 million for the same period of 2015.
On an adjusted basis, net income was $139.3 million, an increase of 26.8 percent as compared to the $109.9 million for the same period of 2015. Diluted earnings per share for the third quarter of 2016 was $0.40, an increase of 21.2 percent as compared to $0.33 for the same period of 2015. On an adjusted basis, diluted earnings per share was $0.45 in the third quarter of 2016 reflecting a 25.0 percent increase over $0.36 for the same period of 2015.
“The results we achieved in the third quarter reflect the benefits of our increasingly diverse and global operations. We had impressive revenue growth in parts and services of 33.2 percent and growth in adjusted diluted earnings per share of 25 percent in the third quarter. We also continued to realize the benefits associated with the productivity initiatives implemented this year,” stated Robert Wagman, President and Chief Executive Officer of LKQ Corporation. “While there was softness across parts of the global auto industry during the quarter, the Company delivered positive organic revenue growth for parts and services of 3.7 percent.”
On a nine month year-to-date basis, revenue was $6.76 billion, an increase of 24.2 percent from $5.44 billion for the comparable period of 2015. Parts and services organic revenue growth for the first nine months of 2016 was 5.1 percent. Net income for the first nine months of 2016 was $377.6 million, as compared to $328.2 million for the same period of 2015. Diluted earnings per share was $1.22 for the first nine months of 2016, reflecting a 14.0 percent increase as compared to $1.07 for the comparable period of 2015. On an adjusted basis, diluted earnings per share was $1.41 in the first nine months of 2016 reflecting a 22.6 per increase over $1.15 for the same period of 2015.
Acquisitions
During the third quarter of 2016, LKQ acquired a distributor of aftermarket automotive products in the Netherlands, a distributor of recreational vehicle products and accessories in the United Kingdom, a distributor of aftermarket automotive products in Ireland, and a heavy-duty truck salvage business in Minnesota. Also, in the third quarter, LKQ’s European operations opened three new branches in the United Kingdom and eight new branches in Eastern Europe.
On October 4, 2016, the Company announced that its United Kingdom subsidiary, Euro Car Parts, acquired Andrew Page Limited’s 102 automotive parts distribution locations in the United Kingdom. The Andrew Page transaction is being reviewed by the UK Competition and Markets Authority.
