LKQ Corporation (NASDAQ:LKQ) today reported Revenue for the third quarter of 2022 was $3.1 billion, a decrease of 5.9% as compared to $3.3 billion in the third quarter of 2021. On a constant currency basis1, third quarter revenue grew by 1.0% to $3.3 billion. Parts and services organic revenue increased 4.8% on a reported basis (5.3% on a per day basis), while the net impact of acquisitions and divestitures decreased revenue by 2.3% and foreign exchange rates decreased revenue by 7.4%, for a total parts and services revenue decrease of 5.0%. Other revenue fell 17.4% primarily due to weaker commodity prices relative to the same period in 2021.
Wholesale North America organic revenue for parts and services increased 10.9%; primarily driven by input cost inflation being passed through. Aftermarket collision parts volumes increased slightly year-over-year due to reduced pressures on supply chain and were mainly offset by decreases in collision and mechanical parts volumes from the salvage business. Wholesale – North America acquisition and divestiture revenue was a net decrease due to the divestiture of PGW in the second quarter of 2022.
Net income for the quarter was $261 million as compared to $284 million for the same period in 2021. Diluted earnings per share for the quarter was $0.95 as compared to $0.96 for the same period of 2021, a decrease of 1.0%.
On an adjusted basis, net income in the quarter was $266 million as compared to $300 million for the same period of 2021, a decrease of 11.4%. Adjusted diluted earnings per share1 for the quarter was $0.97 as compared to $1.02 for the same period of 2021, a decrease of 4.9%.
“We are pleased with our third quarter results as they once again highlight our ongoing ability to combine best-in-class customer service with operational excellence. Our strong same day organic revenue growth and segment EBITDA margins in Wholesale – North America and Europe demonstrate our ability to serve our stakeholders in any environment,” noted Dominick Zarcone, President and Chief Executive Officer. “I want to thank our global teams for delivering another quarter of strong performance in a challenging macro environment, including commodities and foreign exchange volatility as well as other inflationary pressures that impacted our reported earnings. Additionally, we remain committed to returning capital to our stockholders, as evidenced by the 10% increase of the quarterly dividend and the expansion of our stock repurchase program.”
For the third quarter, cash flow from operations and free cash flow1 were $273 million and $224 million, respectively. Cash flow from operations and free cash flow1 were $1.01 billion and $862 million, respectively, for the nine months ended September 30, 2022. As of September 30, 2022, the balance sheet reflected total debt of $2.4 billion and net debt1 of $2.2 billion. Net leverage, as defined in the credit facility, was 1.3x EBITDA.