LKQ Corp. has reported record revenue for the second quarter of 2018 of $3.03 billion, an increase of 23.3 percent as compared to $2.46 billion in the second quarter of 2017. For the second quarter of 2018, parts and services organic revenue growth was 7.2 percent and acquisition revenue growth was 12.7 percent, while the impact of exchange rates was 2.9 percent, for total parts and services revenue growth of 22.8 percent.
Net income attributable to LKQ stockholders for the second quarter of 2018 was $157 million, up 4 percent year-over-year. On an adjusted basis, net income attributable to LKQ stockholders was $192 million, an increase of 17.6 percent as compared to the $163 million for the same period of 2017. Diluted earnings per share attributable to LKQ stockholders for the second quarter of 2018 was 50 cents as compared to 49 cents for the same period of 2017, an increase of 2 percent. On an adjusted basis, diluted earnings per share attributable to LKQ stockholders for the second quarter of 2018 was 61 cents, an increase of 15.1 percent as compared to 53 cents for the same period of 2017.
Dominick Zarcone, president and CEO of LKQ Corp., stated, “I am very pleased with the 7.2 percent organic parts and services revenue growth we achieved in the quarter as it reflects a sequential organic revenue growth rate improvement in each of our North American, European and Specialty segments, which witnessed organic parts and services growth of 7.4 percent, 8.3 percent and 4.1 percent, respectively. This growth reflected a reversal of some of the transitory items noted in our commentary in the first quarter of 2018, as well as better than expected performance in each business. I am particularly proud of the ability of our European teams to address the challenges we faced in the first quarter and deliver a 130 basis point improvement in sequential segment EBITDA margin.”
On a six month, year-to-date basis, revenue was $5.75 billion, an increase of 19.8 percent from $4.8 billion for the comparable period of 2017. Parts and services organic revenue growth for the first six months of 2018 was 5.5 percent. Net income from continuing operations attributable to LKQ stockholders for the first six months of 2018 was $310 million, an increase of 6.3 percent as compared to $292 million for the first half of 2017. Diluted earnings per share from continuing operations attributable to LKQ stockholders for the first six months of 2018 was 99 cents, an increase of 5.3 percent as compared to 94 cents for the same period of 2017. On an adjusted basis, diluted earnings per share from continuing operations attributable to LKQ stockholders for the first six months of 2018 was $1.16, an increase of 13.7 percent as compared to $1.02 for the same period of 2017.
Other Events
On May 31, the company announced the closing of its acquisition of STAHLGRUBER GmbH. Headquartered in Germany, STAHLGRUBER is a leading European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, Slovenia, Croatia and with further sales to Switzerland. STAHLGRUBER’s facilities include 188 sales centers and an approximately 128,000-square-meter (approx. 1,400,000-square-foot) advanced logistics center located near Munich, Germany, serving more than 100,000 professional clients and offering more than 500,000 SKUs. The European Commission cleared the acquisition except with respect to STAHLGRUBER’s wholesale automotive parts business in the Czech Republic, which is currently being reviewed by the Czech Republic [Czechia] competition authority. The Czech Republic wholesale business represents an immaterial portion of STAHLGRUBER’s revenue and profitability.
In addition to the acquisition of STAHLGRUBER, during the second quarter of 2018 LKQ acquired four wholesale businesses in Europe for a total net consideration of approximately $7 million. Also in the second quarter, LKQ’s European operations opened two branches in Western Europe and 15 branches in Eastern Europe.
