LKQ Corporation Announces Financial Results for Second Quarter 2017

July 27, 2017

Revenue growth of 6.7% to $2.46 billion
Organic revenue growth for parts and services of 3.8%; 4.9% on a same day basis
Income from continuing operations growth of 9.5% to $151 million
Second quarter 2017 diluted EPS from continuing operations of $0.49; adjusted diluted EPS of $0.53
Annual guidance updated

CHICAGO, July 27, 2017 (GLOBE NEWSWIRE) — LKQ Corporation (Nasdaq:LKQ) today reported revenue for the second quarter of 2017 of $2.46 billion, an increase of 6.7% as compared to $2.30 billion in the second quarter of 2016. Income from continuing operations for the second quarter of 2017 was $150.9 million, an increase of 9.5% as compared to $137.8 million for the same period of 2016. On an adjusted basis, income from continuing operations was $163.3 million, an increase of 2.1% as compared to the $159.9 million for the same period of 2016. Diluted earnings per share from continuing operations for the second quarter of 2017 was $0.49, an increase of 8.9% as compared to the $0.45 for the same period of 2016. On an adjusted basis, diluted earnings per share from continuing operations was $0.53 in the second quarter of 2017, as compared to the $0.52 for the same period of 2016.

“We had solid operating results during the quarter,” stated Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “We were particularly pleased to see our North American segment report an improvement in organic revenue growth for parts and services to 2.8%, despite the ongoing headwinds of the mild weather witnessed in the first quarter of 2017. We also delivered strong parts and services organic revenue growth during the quarter in our European segment of 4.1% on a reported basis and 7.1% on a same day basis. Additionally, our Specialty segment continued to show solid improvement in the second quarter, realizing organic growth of 5.9% while its segment EBITDA margins increased 80 basis points year-over-year.”

On a six month year-to-date basis, revenue was $4.80 billion, an increase of 13.6% from $4.23 billion for the comparable period of 2016. Parts and services organic revenue growth for the first six months of 2017 was 4.1%. Income from continuing operations for the first six months of 2017 was $291.7 million, an increase of 16.7% as compared to $250.0 million for the first half of 2016. Diluted earnings per share from continuing operations was $0.94 for the first six months of 2017, reflecting a 16.0% increase as compared to $0.81 for the comparable period of 2016. On an adjusted basis, diluted earnings per share from continuing operations was $1.02 in the first six months of 2017 reflecting a 9.7% increase over $0.93 for the same period of 2016.

During the second quarter of 2017 LKQ acquired seven companies, including a full service salvage yard in Pennsylvania, a remanufactured transmission business in Georgia, distributors of automotive aftermarket parts in Ireland and Northern Ireland, a distributor of motorcycle parts in Italy, a paint distributor in Sweden, and a specialty products business in the United Kingdom. Also, in the second quarter, LKQ’s European operations opened one new branch in the United Kingdom and 12 new branches in Eastern Europe.

Balance Sheet and Liquidity

Cash flow from operations totaled $362 million on a six month year-to-date basis, of which approximately $88 million was invested in capital expenditures and other long term assets for continuing operations and $101 million was used for acquisitions. As of June 30, 2017, the balance sheet reflected cash and equivalents of $304 million and outstanding debt of $3.0 billion. Total availability under the Company’s credit facility at June 30, 2017 was approximately $1.4 billion.

For additional details, including financial and supplementary data, view the full Press Release on the LKQ Investor Relations website.