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Jun 30, 2020

LKQ Q2 2020 Earnings Report

LKQ's financial performance reflected improved revenue trends, operational productivity, balance sheet strength, and continued debt reduction.

Key Takeaways

LKQ Corporation reported a decrease in revenue by 19.1% year-over-year, reaching $2.6 billion. Net income decreased by 21.2% to $119 million, with a diluted EPS of $0.39. However, operating cash flow increased by 56% to $718 million, and free cash flow increased by 66% to $686 million. The company reduced borrowings by $552 million and maintained liquidity of $2.5 billion as of June 30, 2020.

Second quarter 2020 revenue was $2.6 billion, a decrease of 19.1% year-over-year.

Parts and services organic revenue declined 16.8%.

Net income was $119 million, a decrease of 21.2% year-over-year, with diluted EPS of $0.39, down 18.8%.

Operating cash flow increased by 56% to $718 million, and free cash flow increased by 66% to $686 million.

Total Revenue
$2.63B
Previous year: $3.25B
-19.2%
EPS
$0.53
Previous year: $0.65
-18.5%
Gross Profit
$1.01B
Previous year: $1.25B
-18.9%
Cash and Equivalents
$476M
Previous year: $376M
+26.6%
Free Cash Flow
$686M
Total Assets
$12B
Previous year: $12.7B
-5.3%

LKQ

LKQ

LKQ Revenue by Segment

LKQ Revenue by Geographic Location

Forward Guidance

The operating environment continues to evolve, and while the Company's second quarter performance exceeded expectations, there remains a high degree of uncertainty about the ongoing rate and shape of the COVID-19 recovery. As a result, the Company is not providing new fiscal 2020 guidance at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income