LKQ Corp. today (April 27) reported record revenue for the first quarter of 2017 of $2.34 billion, an increase of 21.9% as compared to $1.92 billion in the first quarter of 2016. LKQ is parent company of Keystone Automotive and its NTP-STAG RV distribution division.
Income from continuing operations for the first quarter of 2017 was $140.8 million, an increase of 25.5% as compared to $112.2 million for the same period of 2016. Diluted earnings per share from continuing operations for the first quarter of 2017 was 45 cents, an increase of 25% as compared to 36 cents for the same period of 2016. On an adjusted basis, diluted earnings per share from continuing operations was 49 cents, an increase of 16.7% as compared to 42 cents for the same period of 2016.
“I am proud of our ability to deliver excellent top line and bottom line growth, achieving record revenue and earnings in the first quarter of 2017,” stated LKQ President and CEO Robert Wagman. “I am particularly pleased with the margin improvement in the quarter, notably North America which increased segment EBITDA margin by 210 basis points sequentially and 110 basis points year-over-year. Global revenue growth in parts and services was a strong 24.5% on a constant currency basis. Also, despite the mild weather we again faced in North America during the first quarter, global organic revenue growth for parts and services was 4.5%, consistent with our annual guidance.”
Balance Sheet and Liquidity
Cash flow from operations totaled $172 million during the first quarter, and the company invested approximately $41 million in capital expenditures and other long term assets for continuing operations and paid $77 million for acquisitions. Proceeds from the divestiture of PGW’s automotive glass manufacturing business were used to pay down debt. As of March 31, 2017, LKQ’s balance sheet reflected cash and equivalents of $265 million and outstanding debt of $3.0 billion. Total availability under the Company’s credit facilities at March 31, 2017 was approximately $1.4 billion.
In addition to finalizing the previously announced divestiture of PGW’s automotive glass manufacturing business, during the first quarter of 2017 LKQ acquired parts recycling businesses in Michigan and Sweden, and a specialty products business in Pennsylvania. Also, in the first quarter, LKQ’s Rhiag operations opened 12 new Elit and Auto Kelly operations in Eastern Europe.
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