LKQ Corp Announces Q2 2022 Results

LKQ Corp Announces Q2 2022 Results

Net income for the quarter was $420 million, as compared to $305 million for the same period in 2021.

LKQ Corporation reported second quarter 2022 financial results, spotlighting these highlights:

  • Revenue of $3.3 billion; revenue on a constant currency basis2 of $3.5 billion
  • Parts and services organic revenue growth of 3.8% (4.2% on a per day basis)
  • Diluted EPS1 of $1.49 (up 47.5%); adjusted diluted EPS1,2 of $1.09 (down 3.5%)
  • Second quarter operating cash flow of $328 million; free cash flowof $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

“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 CEO. “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

LKQ reported 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 income1 for the quarter was $420 million as compared to $305 million for the same period in 2021. Diluted earnings per share1 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 income1,2 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 share1,2 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, LKQ also reported cash flow from operations and free cash flow2 were $328 million and $288 million, respectively. Cash flow from operations and free cash flow2 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 debt2 of $2.1 billion. Net leverage, as defined in the credit facility, was 1.2x EBITDA.

Stock Repurchase and Dividend Programs

During the second quarter of 2022, the Company deployed $404 million to repurchase 8.1 million shares of its common stock. For the six months ended June 30, 2022, the Company has repurchased 10.8 million shares for $548 million, and since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 45 million shares for a total of $1.9 billion. In May 2022, the Board of Directors increased the total share repurchase authorization to $2.5 billion, effective through October 2024.

On July 26, 2022, our Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock, payable on September 1, 2022, to stockholders of record at the close of business on August 11, 2022.

2022 Outlook

“By focusing on our operational excellence initiatives, the business continues to deliver profitable growth and solid free cash flow. Notwithstanding the significant headwinds from foreign currency exchange rates and commodity price fluctuations, we are holding the midpoint of our adjusted diluted EPS range and our free cash flow guidance for the full year,” said Varun Laroyia, executive vice president and chief financial officer.

“Our outlook for the full year 2022 is based on current conditions and recent trends, and assumes current U.S. federal tax legislation remains unchanged, the prices of scrap and precious metals hold near the June average, and no further deterioration due to the Ukraine/Russia conflict. We have applied exchange rates near July spot levels, including $1.02 and $1.20 for the euro and pound sterling, respectively, for the balance of the year.

“Our outlook is also based on management’s current expectations regarding the recovery from the COVID-19 pandemic. Changes in these conditions may impact our ability to achieve the estimates. Adjusted figures exclude (to the extent applicable) the impact of restructuring and transaction related expenses; amortization expense related to acquired intangibles; excess tax benefits and deficiencies from stock-based payments; losses on debt extinguishment; impairment charges; direct impacts of the Ukraine/Russia conflict (including provisions for and subsequent adjustments to reserves for asset recoverability and expenditures to support our employees and their families) and gains and losses related to acquisitions or divestitures (including changes in the fair value of contingent consideration liabilities and the gain on the PGW Auto Glass sale).”

References in this release to Net income and Diluted earnings per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
Non-GAAP measure. See the table accompanying this release that reconciles the actual or forecasted U.S. GAAP measure to the actual or forecasted adjusted measure, which is non-GAAP.

You May Also Like

Continental Unveils Strategy for Enhanced Value Creation

Continental is focusing on business areas with high growth potential, including making its UX business organizationally independent.


Continental unveiled its new strategy for enhanced value creation at the Capital Market Day held in Hanover. The company has set a goal to reach an adjusted EBIT margin of 8 to 11 percent in the next two to three years, with further improvements expected within this range. This plan includes a series of cost-reduction measures, Continental explained in its Capital Market Day presentation. The company also raised its sales forecast, aiming for €44 billion to €48 billion in the short term and €51 billion to €56 billion in the medium term.

AutoZone Q1 Domestic Same Store Sales Increase 1.2%

The company’s same-store sales showed a 25.1% jump internationally.

Advance Looks to Spin Off Worldpac, Canadian Business

Advance is taking steps to improve its cost structure and return the business to profitable growth, company executives said.

Advance auto parts store
GPC Reports Q3 Results, Updates Full-Year Outlook

Paul Donahue, chairman and CEO, said GPC’s Q3 was highlighted by double-digit earnings growth.

AutoZone Reports 6% Increase in Fiscal Q4 Sales

Domestic same-store sales for the fourth quarter, which ended Aug. 26, were up 1.7%.

Other Posts

AMN Year in Review: Top Manufacturing News of 2023

Count down the Top 10 manufacturing stories with us in the automotive aftermarket this year.

Year in Review 2023- auto aftermarket manufacturing
LKQ Corporation Announces Leadership Appointments

The leadership changes come after Justin Jude was announced as LKQ’s new president and CEO come Jan. 1.

LKQ Corporation
LKQ Corp. Announces Leadership Succession Plan

President and CEO Dominick Zarcone will retire June 30.

LKQ leadership succession plan 2024
LKQ’s Ian Musselman Appointed to CAWA’s Board of Directors

In the aftermarket for 20+ years, Musselman has been responsible for LKQ’s policy initiatives since 2019.