LKQ Corporation Announces Results For Third Quarter 2023 – RVBusiness – Breaking RV Industry News

CHICAGO – LKQ Corporation (Nasdaq:LKQ), parent company of Keystone Automotive and its NTP-STAG RV Distribution division, today reported third quarter 2023 financial results.

“Our third quarter results reflected some tailwinds and headwinds. On the positive side, we experienced strong organic growth in our Wholesale – North America and Europe segments, drove excellent margins in Wholesale – North America, and generated robust free cash flow. Unfortunately, these strengths were offset by a combination of unusual, transitory items in Europe, continued softness in commodity prices, and difficult market conditions impacting our Specialty and Self Service segments. Our success since implementing the operational excellence strategy in 2019 gives us confidence in our ability to take decisive actions and drive improved execution. We have great assets and an exceptional team, which we believe will enable long-term growth and value creation. The fundamentals of our business remain strong,” noted Dominick Zarcone, President and Chief Executive Officer.

Third Quarter 2023 Financial Results

Revenue for the third quarter of 2023 was $3.6 billion, an increase of 15.0% as compared to $3.1 billion for the third quarter of 2022. For the third quarter of 2023, parts and services organic revenue increased 3.0% (4.3% on a per day basis), foreign exchange rates increased revenue by 3.6% and the net impact of acquisitions and divestitures increased revenue by 10.5% year over year, for a total parts and services revenue increase of 17.1%. Other revenue for the third quarter of 2023 fell 17.5% primarily due to weaker commodity prices relative to the same period in 2022.

Net income for the third quarter of 2023 was $207 million as compared to $261 million for the same period in 2022. Diluted earnings per share for the third quarter of 2023 was $0.77 as compared to $0.95 for the same period of 2022, a decrease of 18.9%.

On an adjusted basis, net income in the third quarter of 2023 was $231 million as compared to $266 million for the same period of 2022, a decrease of 13.2%. Adjusted diluted earnings per share was $0.86 for the third quarter of 2023 as compared to $0.97 for the same period of 2022, a decrease of 11.3%.

Diluted earnings per share decreased in the third quarter of 2023 with negative effects from: (i) unusual items in Europe related to a legacy value-added tax issue related to our Italian operations and strikes in Germany, which had an estimated $0.06 impact, (ii) fluctuations in commodity prices, which had a $0.04 effect, (iii) higher interest rates and average debt balances in the third quarter, which drove a year-over-year increase in net interest expense, excluding the effect of Uni-Select borrowings, of $0.04 and (iv) continued underperformance of our Specialty segment of $0.03. As a partial offset to these factors, the lower share count and favorable foreign currency translation provided a combined $0.10 year over year benefit ($0.04 on an adjusted basis), and our North America operations, excluding Uni-Select, performed favorably compared to the prior year period.

Click here to read the report in full.

Source: https://rvbusiness.com/lkq-corporation-announces-results-for-third-quarter-2023/