JULY 28, 2022
- Revenue of $3.3 billion; revenue on a constant currency basis of $3.5 billion
- Parts and services organic revenue growth of 3.8% (4.2% on a per day basis)
- Diluted EPS of $1.49 (up 47.5%); adjusted diluted EPS of $1.09 (down 3.5%)
- Second quarter operating cash flow of $328 million; free cash flow of $288 million
- Repurchased 8.1 million shares for $404 million in the quarter
- Dividend of $0.25 per share approved to be paid in the third quarter of 2022
- Full year 2022 guidance range updated
CHICAGO — LKQ Corporation (Nasdaq:LKQ) reported second quarter 2022 financial results. “We had a solid second quarter delivering strong organic growth, and I am extremely proud of the results the LKQ team achieved in a challenging operating environment, which included significant inflationary pressures, supply chain disruptions, and volatile commodity and currency markets. Despite these challenges, we continued to drive our strategic initiatives forward,” noted Dominick Zarcone, President and Chief Executive Officer. “As we enter the back half of the year, we are well positioned with our market leading businesses, experienced management teams, strong balance sheet, and balanced capital allocation strategy, giving us the confidence to maintain our full year 2022 guidance.”
Second Quarter 2022 Financial Results
Revenue for the second quarter of 2022 was $3.3 billion, a decrease of 2.7% as compared to $3.4 billion in the second quarter of 2021. On a constant currency basis2, second quarter revenue grew by 2.5% to $3.5 billion. Parts and services organic revenue increased 3.8%, while the net impact of acquisitions and divestitures decreased revenue by 1.0% and foreign exchange rates decreased revenue by 5.6%, for a total parts and services revenue decrease of 2.7%. Other revenue fell 2.9% owing to changes in commodity prices relative to the same period in 2021.
Net income for the quarter was $420 million as compared to $305 million for the same period in 2021. Diluted earnings per share for the quarter was $1.49 as compared to $1.01 for the same period of 2021, an increase of 47.5%. On April 18, 2022, the Company completed the sale of PGW Auto Glass, which generated a pretax gain of $155 million ($127 million after tax), or $0.45 per share.
On an adjusted basis, net income in the quarter was $307 million as compared to $340 million for the same period of 2021, a decrease of 9.6%. Adjusted diluted earnings per share for the quarter was $1.09 as compared to $1.13 for the same period of 2021, a decrease of 3.5%.
Cash Flow and Balance Sheet
For the second quarter, cash flow from operations and free cash flow were $328 million and $288 million, respectively. Cash flow from operations and free cash flow were $737 million and $638 million, respectively, for the six months ended June 30, 2022. As of June 30, 2022, the balance sheet reflected total debt of $2.4 billion and net debt of $2.1 billion. Net leverage, as defined in the credit facility, was 1.2x EBITDA.
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 website.