July 29, 2021
- Second quarter 2021 revenue of $3.4 billion (up 30.8% year-over-year)
- Diluted EPS 1 of $1.01 (up 159.0%); adjusted diluted EPS 1 of $1.13 (up 113.2%)
- Second quarter 2021 Segment EBITDA margin of 20.8% for North America; 14.9% for Specialty; and 10.7% for Europe
- Second quarter operating cash flow of $411 million; free cash flow of $365 million
- Net leverage decreased to 1.2x EBITDA
- Repurchased 6.2 million shares for $304 million in the quarter
- Stock repurchase program expanded by a further $1 billion, raising aggregate authorization to $2 billion
- 2021 outlook raised
CHICAGO — LKQ Corporation (Nasdaq:LKQ) today reported second quarter 2021 results that reflect strength for the Company in a number of key metrics including total revenue, segment margins and free cash flow. In other second quarter developments, MSCI increased the Company’s ESG rating from A to AA, and Fitch Ratings, Inc. assigned LKQ an initial rating of ‘BBB-’ (outlook stable).
“We were able to produce yet another record performance in the second quarter. This performance marks two key milestones as the first quarterly period with EPS of over $1 and the highest quarterly Segment EBITDA in the Company’s history. The North America and Specialty segments achieved record Segment EBITDA margins in the quarter, and Europe delivered a double-digit margin for the first time since the second quarter of 2016. The European performance further validates the margin targets provided at the start of the 1 LKQ Europe program and gives us confidence that we are on track with the overall goals of the program,” noted Dominick Zarcone, President and Chief Executive Officer.
Second Quarter 2021 Financial Results
Revenue for the second quarter of 2021 was $3.4 billion, an increase of 30.8% as compared to $2.6 billion in the second quarter of 2020, reflecting the annualization of the pandemic impact during the second quarter of 2020. For the second quarter of 2021, parts and services organic revenue increased 21.9%, while the net impact of acquisitions and divestitures decreased revenue 0.3% and foreign exchange rates increased revenue 5.4%, for a total parts and services revenue increase of 27.0%. Other revenue grew 108.5% in the second quarter of 2021, driven by higher scrap steel and precious metals prices.
Net income1 for the second quarter of 2021 was $305 million as compared to $119 million for the same period in 2020, an increase of 157.0%. Diluted earnings per share1 for the second quarter was $1.01 as compared to $0.39 for the same period of 2020, an increase of 159.0%.
On an adjusted basis, net income1 in the second quarter was $340 million compared to $161 million in the same period of 2020, a 110.7% increase. Adjusted diluted earnings per share1 for the second quarter was $1.13 as compared to $0.53 for the same period of 2020, a 113.2% increase.
¹ References in this release to Net income and Diluted earnings per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
Cash Flow and Balance Sheet
Cash flow from operations totaled $411 million during the second quarter of 2021, and free cash flow in the quarter was $365 million. Cash flow from operations for the six months ended June 30, 2021 was $933 million, and free cash flow for the six months ended June 30, 2021 was $845 million. Net repayments on borrowings totaled $264 million during the quarter and, as of June 30, 2021, net debt was $2.1 billion. Net leverage, as defined in our credit facility, decreased to 1.2x EBITDA.
On April 1, 2021, the €750 million 3.625% Senior Notes due 2026 were redeemed. The redemption was financed by lower cost revolver borrowings and cash on hand.
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
For additional details, including financial and supplementary data, view the full Press Release on the LKQ Investor Relations website.