LKQ Corp. Reports Q1 Double-Digit Revenue Increase
LKQ Corp. reported $2.72 billion in revenue in the first quarter of 2018 for an increase of 16.1 percent compared to $2.34 billion in the first quarter of 2017. LKQ Corp. is the ownership group of Keystone Automotive Operations.
LKQ Corp.’s parts and services organic revenue growth for the first quarter was 3.7 percent, while acquisition revenue growth was 6.6 percent. Impact of exchange rates was 5.4 percent and for total parts and services revenue growth was up 15.7 percent.
Net income from continuing operations attributable to LKQ stockholders for the first quarter of 2018 was $153 million, an increase of 9 percent as compared to $141 million for the same period of 2017. On an adjusted basis, net income from continuing operations attributable to LKQ stockholders was $170 million, an increase of 11 percent as compared to the $153 million for the same period of 2017.
Diluted earnings per share from continuing operations attributable to LKQ stockholders for the first quarter of 2018 was $0.49, an increase of 9 percent as compared to the $0.45 for the same period of 2017. On an adjusted basis, diluted earnings per share from continuing operations attributable to LKQ stockholders for the first quarter of 2018 was $0.55, an increase of 12 percent as compared to the $0.49 for the same period of 2017.
“I am very pleased with the 6.5 percent organic parts and services growth in our North America segment,” said Dominick Zarcone, president and CEO of LKQ Corp. “Although we faced a few revenue headwinds in Europe and our Specialty business and experienced certain near-term cost pressures in the quarter, we are actively addressing the issues and I am confident that we have solid plans to quickly return to our historical levels of growth and profitability.”
Balance Sheet and Liquidity
Cash flow from operations totaled $145 million during the first quarter of 2018, and the company invested approximately $62 million in capital expenditures and other long-term assets for continuing operations. As of March 31, LKQ’s balance sheet reflected cash and equivalents of $246 million and outstanding debt of $3.3 billion.
