LKQ Corp., parent company of Keystone Automotive Operations Inc. and its NTP-STAG RV distribution subsidiary, today (Feb. 22) reported increased revenue and net income for its fourth quarter, ended Dec. 31.
During the period, revenue totaled $2.47 billion compared with $2.15 billion for the fourth quarter of 2016, an increase of 14.9%. Parts and services organic revenue growth was 4.8% and acquisition revenue growth was 6.1%, while the impact of exchange rates was 3.3%, representing total parts and services revenue growth of 14.3%.
Net income from continuing operations attributable to LKQ stockholders for the fourth quarter was $126 million, an increase of 31.2% as compared to $96 million for the same period of 2016. Diluted earnings per share from continuing operations was 41 cents, an increase of 32.3% as compared to the 31 cents for the same period of 2016.
LKQ President and Chief Executive Officer Dominick Zarcone stated, “I am particularly pleased with the 5.0% organic revenue growth for parts and services achieved by our North America segment during the fourth quarter.”
Full Year 2017 Reported Results
For the full year of 2017, revenue was $9.74 billion, an increase of 13.4% from $8.58 billion for 2016. Parts and services revenue growth was 13.1%. On a per day basis, parts and services organic revenue growth was 4.5%.
Diluted earnings per share from continuing operations attributable to LKQ stockholders for the full year 2017 was $1.74, an increase of 18.4% as compared to the $1.47 for the full year 2016. On an adjusted basis, diluted earnings per share from continuing operations attributable to LKQ stockholders for the full year 2017 was $1.88, an increase of 11.2% as compared to the $1.69 for the full year 2016.
Zarcone commented, “Our 2017 results reflect the underlying strength of our business and our ability to grow, both organically and through acquisitions, despite headwinds we faced earlier in the year. Additionally, during 2017 our North America and specialty segments reported their highest annual EBITDA margins in the past five years. I believe we entered 2018 with strong operating momentum, a clear strategy across all of our segments, and an industry leading team of over 43,000 employees dedicated to delivering on our mission.”
On Nov. 1, the company acquired the aftermarket business of Warn Industries Inc., a designer, manufacturer and marketer of high-performance vehicle equipment and accessories.
On Dec. 11, LKQ announced that it had signed a definitive agreement to acquire Stahlgruber GmbH Headquartered in Germany, Stahlgruber is a European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, Czech Republic, Italy, Slovenia, and Croatia with further sales to Switzerland. The Stahlgruber transaction is expected to be completed in the first half of 2018 and is subject to regulatory approvals.
In addition to the Warn Industries and pending Stahlgruber acquisitions, during the fourth quarter of 2017 LKQ acquired four businesses, including an aftermarket parts distributor in Bosnia and Herzegovina, an automotive glass distributor in Kansas, an aftermarket parts distributor in the Netherlands, and an automotive glass distributor in New Jersey. Also, in the fourth quarter, LKQ’s European operations opened six new branches in Western Europe and nine new branches in Eastern Europe.
Zarcone stated, “Clearly, 2017 was another very active year for our development team resulting in the completion of 26 acquisitions, which expanded our geographic footprint, broadened the depth of our product offerings, and extended our leadership position in each of our operating segments. We look forward to closing the Stahlgruber acquisition in the near term so we can get to work integrating that business into our European operations.”
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