LKQ Corporation Announces Financial Results for Third Quarter 2017

October 26, 2017

Revenue growth of 11.7% to $2.47 billion
Organic revenue growth for parts and services of 3.2%; 4.7% on a per day basis
Income from continuing operations growth of 11.4% to $122 million
Third quarter 2017 diluted EPS from continuing operations of $0.39; adjusted diluted EPS of $0.45
Annual guidance updated

CHICAGO, Oct. 26, 2017 (GLOBE NEWSWIRE) — LKQ Corporation (Nasdaq:LKQ) today reported revenue for the third quarter of 2017 of $2.47 billion, an increase of 11.7% as compared to $2.21 billion in the third quarter of 2016. Income from continuing operations for the third quarter of 2017 was $122 million, an increase of 11.4% as compared to $110 million for the same period of 2016. On an adjusted basis, income from continuing operations was $140 million, an increase of 11.1% as compared to the $126 million for the same period of 2016. Diluted earnings per share from continuing operations for the third quarter of 2017 was $0.39, an increase of 11.4% as compared to the $0.35 for the same period of 2016. On an adjusted basis, diluted earnings per share from continuing operations was $0.45 in the third quarter of 2017, as compared to the $0.41 for the same period of 2016.

“We had solid operating results across all of our segments during the quarter,” stated Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “Our North American segment generated organic revenue growth for parts and services of 2.5% on a reported basis and 4.0% on a per day basis, while increasing segment EBITDA margin by 40 basis points year over year. We also delivered strong parts and services organic revenue growth during the quarter in our European segment of 4.4% on a reported basis and 5.6% on a per day basis. Additionally, our Specialty segment realized organic revenue growth of 2.7% on a reported basis and 4.4% on a per day basis.”

On a nine month year-to-date basis, revenue was $7.27 billion, an increase of 13.0% from $6.43 billion for the comparable period of 2016. Parts and services organic revenue growth for the first nine months of 2017 was 3.8%. Income from continuing operations for the first nine months of 2017 was $414 million, an increase of 15.1% as compared to $360 million for the first nine months of 2016. Diluted earnings per share from continuing operations was $1.33 for the first nine months of 2017, reflecting a 14.7% increase as compared to $1.16 for the comparable period of 2016. On an adjusted basis, diluted earnings per share from continuing operations was $1.47 in the first nine months of 2017 reflecting a 9.7% increase over $1.34 for the same period of 2016.

During the third quarter of 2017, LKQ acquired 11 businesses to complement the Company’s business lines, including two in the U.S. and nine in Europe. Also in the third quarter, LKQ’s European operations opened two new branches in the United Kingdom and four new branches in Eastern Europe.

Balance Sheet and Liquidity

Cash flow from operations totaled $449 million on a nine month year-to-date basis, of which approximately $132 million was invested in capital expenditures and other long term assets for continuing operations and $253 million was used for acquisitions. As of September 30, 2017, LKQ’s balance sheet reflected cash and equivalents of $275 million and outstanding debt of $3.1 billion. Total availability under the Company’s credit facility at September 30, 2017 was approximately $1.3 billion.

Other Events

Varun Laroyia joined the Company as Executive Vice President and Chief Financial Officer effective as of October 1, 2017. Mr. Laroyia brings an extensive array of diverse financial experience to LKQ, including a background with global public companies in corporate finance, operations management, systems, and mergers and acquisitions.

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