Keystone Automotive Holding Company Posts Big Q3 Gains
LKQ Corp., the parent company to Keystone Automotive Operations, reported record revenue for the third quarter in. The company’s revenue reached $3.12 billion, an increase of 26.6 percent compared to $2.47 billion in the third quarter of 2017.
The company’s parts and services organic revenue growth was 4.3 percent in the fourth quarter, while acquisition revenue growth was 23.2 percent.
Net income attributable to LKQ stockholders for the third quarter of 2018 was $134 million, up 9.6-percent year-over-year. On an adjusted basis, net income attributable to LKQ stockholders was $177 million, an increase of 26.9 percent as compared to the $140 million for the same period of 2017.
“I am pleased with the trajectory of our operational initiatives that are focused on a more balanced approach of delivering organic growth while simultaneously optimizing productivity and profitability,” said Dominick Zarcone, president and CEO of LKQ Corp.
On a nine-month year-to-date basis, revenue was $8.88 billion, an increase of 22.1 percent from $7.27 billion for the comparable period of 2017. Parts and services organic revenue growth for the first nine months of 2018 was 5.1 percent.
Net income from continuing operations attributable to LKQ stockholders for the first nine months of 2018 was $444 million, an increase of 7.2 percent as compared to $414 million for the comparable period of 2017.
Company Outlook
LKQ Corp. updated its guidance for 2018.
“The updated guidance reflects the reality that our initiatives to deliver sustained growth and increased profit margins are working, though offset by the continued cost headwinds impacting our industry,” said Varun Laroyia, executive vice president and chief financial officer of LKQ Corp. “While the initial results of our actions are positive, we believe that these cost pressures will not abate in the near term and have adjusted our guidance to address the economic headwinds related to freight, fuel and wage inflation and declining scrap prices. We are committed to protecting our margins, driving higher levels of free-cash flow conversion, and believe our actions will position us well for achieving higher levels of sustainable and profitable growth in the future.”
