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LKQ Corporation Announces Results for Third Quarter 2022

October 27, 2022

  • Revenue of $3.1 billion; revenue on a constant currency basis of $3.3 billion
  • Parts and services organic revenue growth of 4.8% (5.3% on a per day basis)
  • Diluted EPS of $0.95 (down 1.0%); adjusted diluted EPS of $0.97 (down 4.9%)
  • Third quarter operating cash flow of $273 million; free cash flow of $224 million
  • Deployed $343 million in the quarter to repurchase 6.8 million shares
  • Stock repurchase program expanded by a further $1 billion through October 2025
  • Dividend increased by 10%; $0.275 per share approved to be paid in the fourth quarter of 2022
  • Full year 2022 guidance range updated

CHICAGO — LKQ Corporation (Nasdaq:LKQ) today reported third quarter 2022 financial results. “We are pleased with our third quarter results as they once again highlight our ongoing ability to combine best-in-class customer service with operational excellence. Our strong same day organic revenue growth and segment EBITDA margins in Wholesale – North America and Europe demonstrate our ability to serve our stakeholders in any environment,” noted Dominick Zarcone, President and Chief Executive Officer. “I want to thank our global teams for delivering another quarter of strong performance in a challenging macro environment, including commodities and foreign exchange volatility as well as other inflationary pressures that impacted our reported earnings. Additionally, we remain committed to returning capital to our stockholders, as evidenced by the 10% increase of the quarterly dividend and the expansion of our stock repurchase program.”

Third Quarter 2022 Financial Results

Revenue for the third quarter of 2022 was $3.1 billion, a decrease of 5.9% as compared to $3.3 billion in the third quarter of 2021. On a constant currency basis, third quarter revenue grew by 1.0% to $3.3 billion. Parts and services organic revenue increased 4.8% on a reported basis (5.3% on a per day basis), while the net impact of acquisitions and divestitures decreased revenue by 2.3% and foreign exchange rates decreased revenue by 7.4%, for a total parts and services revenue decrease of 5.0%. Other revenue fell 17.4% primarily due to weaker commodity prices relative to the same period in 2021.

Net income for the quarter was $261 million as compared to $284 million for the same period in 2021. Diluted earnings per share for the quarter was $0.95 as compared to $0.96 for the same period of 2021, a decrease of 1.0%.

On an adjusted basis, net income in the quarter was $266 million as compared to $300 million for the same period of 2021, a decrease of 11.4%. Adjusted diluted earnings per share for the quarter was $0.97 as compared to $1.02 for the same period of 2021, a decrease of 4.9%.

Cash Flow and Balance Sheet

For the third quarter, cash flow from operations and free cash flow were $273 million and $224 million, respectively. Cash flow from operations and free cash flow were $1.01 billion and $862 million, respectively, for the nine months ended September 30, 2022. As of September 30, 2022, the balance sheet reflected total debt of $2.4 billion and net debt of $2.2 billion. Net leverage, as defined in the credit facility, was 1.3x 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.

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