LKQ Corp. has reported $3.15 billion revenue for the third quarter of 2019, an increase of 0.8 percent as compared to $3.12 billion in the third quarter of 2018. For the third quarter of 2019, parts and services organic revenue increased 2.3 percent, and acquisition revenue growth was 0.8 percent, while the impact of exchange rates was 2.3 percent, for total parts and services revenue growth of 0.8 percent.
Net income for the third quarter of 2019 was $152 million, an increase of 13 percent year-over-year.
“Our focus on profitable revenue, margin expansion and cash conversion continued to yield positive results this quarter,” said Dominick Zarcone, president and CEO. “Despite soft macroeconomic conditions in Europe and declining scrap prices, the Company was able to generate segment EBITDA expansion, driven by a 60-basis point improvement in our North American segment. I am particularly pleased with the ongoing growth in cash flows as the Company added $327 million in operating cash flows this quarter.”
On a nine-month year-to-date basis, revenue was $9.5 billion, an increase of 7 percent from $8.9 billion for the comparable period of 2018.
Net income for the first nine months of 2019 was $400 million, a decrease of 10 percent as compared to $444 million for the first nine months of 2018 owing to the non-cash impairment charges in the first and second quarters of 2019. On an adjusted basis, net income for the first nine months of 2019 was $569 million, an increase of 5 percent as compared to the $539 million for the same period of 2018.
Cash flow from operations totaled $965 million on a nine-month year-to-date basis, up 85 percent from a year ago. Free cash flow totaled $800 million, up 129 percent year-over-year. The company paid down $109 million of borrowings during the quarter, and as of Sept. 30, the company’s balance sheet reflected net debt of $3.5 billion.
Since initiating the share repurchase program in October 2018, the company has repurchased 13.2 million shares for a total of $352 million. On Oct. 25, the board of directors authorized a $500 million increase to the repurchase program, raising the aggregate authorization to $1 billion and thus making available an aggregate balance of $648 million for potential additional repurchases anytime through October 2022.
