Quarterly revenue up over 16% and full year revenue up more than 8% compared to 2022.
LKQ Corporation (NASDAQ:LKQ) today reported fourth quarter revenue of $3.5 billion, a 16.6% increase compared to $3.0 billion for the same period of 2022. Annual revenue was $13.9 billion, an 8.4% increase compared to $12.8 billion for the full year of 2022.
Parts and services organic revenue increased 2.8%, and 3.4% on a per day basis, during the quarter. The parts and services annual increase was 4.7%, and 5.1% on a per day basis, compared to 2022.
“The fourth quarter was a strong finish to a successful year for LKQ. I am proud of how the entire team worked through challenging macroeconomic conditions, persistent inflation and declining commodity prices to deliver solid organic revenue growth, year over year improvement in Segment EBITDA, and strong cash flow generation. I look forward to collaborating with Justin Jude, my successor as Chief Executive Officer, over the coming months to continue enhancing LKQ’s industry leading business,” stated Dominick Zarcone, President and Chief Executive Officer.
“Operational excellence will remain at the forefront in 2024 as we look to drive organic revenue growth, productivity, strong margins and excellent free cash flow,” said Justin Jude, Executive Vice President and Chief Operating Officer.
On an adjusted basis, net income in the fourth quarter of 2023 was $226 million compared to $209 million for the same period of 2022, an increase of 7.9%. Adjusted diluted earnings per share was $0.84 for the fourth quarter of 2023 compared to $0.78 for the same period of 2022, an increase of 8.0%.
Net income for the full year of 2023 was $0.94 billion compared to $1.14 billion for the same period of 2022. Diluted earnings per share for the full year of 2023 was $3.51 compared to $4.11 for the same period of 2022, a decrease of 14.6%.
On an adjusted basis, net income for the full year of 2023 was $1.03 billion compared to $1.07 billion for the same period of 2022, a decrease of 4.0%. Adjusted diluted earnings per share was $3.83 for the full year of 2023 compared to $3.85 for the same period of 2022, a decrease of 0.5%.
According to the company, its Uni-Select integration is ongoing with roughly half of the FinishMaster locations converted or consolidated into LKQ locations to date and the remainder scheduled for completion by the end of the first quarter.
Jude, who officially succeeds Zarcone on July 1, commented, “Our Wholesale – North America team’s agility and integration experience has the Uni-Select plan ahead of schedule, and we are confident in our ability to exceed the $55 million of synergies previously disclosed.”