LKQ Corp Q2 2024: Sales and Net Income Decline
Ticker: LKQ · Form: 10-Q · Filed: Jul 25, 2024 · CIK: 1065696
Sentiment: bearish
Topics: earnings, financials, revenue-decline
TL;DR
LKQ sales down to $2.97B for H1 2024, net income also dipped to $317M. Tougher times ahead?
AI Summary
LKQ Corp filed its 10-Q for the period ending June 30, 2024. The company reported total net sales of $2,973 million for the six months ended June 30, 2024, compared to $3,283 million for the same period in 2023. Net income attributable to LKQ Corporation for the first six months of 2024 was $317 million, a decrease from $338 million in the prior year's comparable period.
Why It Matters
This filing provides insight into LKQ Corp's financial performance, indicating a downturn in sales and profitability which could impact investor confidence and future strategic decisions.
Risk Assessment
Risk Level: medium — The decline in sales and net income suggests potential headwinds for the company, warranting a medium risk assessment.
Key Numbers
- $2.97B — Net Sales (H1 2024) (Represents a decrease compared to the prior year's period.)
- $3.28B — Net Sales (H1 2023) (Prior year comparable period for sales.)
- $317M — Net Income (H1 2024) (Reflects a decrease from the previous year.)
- $338M — Net Income (H1 2023) (Prior year comparable period for net income.)
Key Players & Entities
- LKQ Corp (company) — Filer of the 10-Q
- 20240630 (date) — End of reporting period
- $2,973 million (dollar_amount) — Total net sales for the six months ended June 30, 2024
- $3,283 million (dollar_amount) — Total net sales for the six months ended June 30, 2023
- $317 million (dollar_amount) — Net income for the six months ended June 30, 2024
- $338 million (dollar_amount) — Net income for the six months ended June 30, 2023
FAQ
What were LKQ Corp's total net sales for the second quarter of 2024?
The filing indicates total net sales of $2,973 million for the six months ended June 30, 2024. Specific quarterly breakdown is not detailed in the provided snippet.
How did LKQ Corp's net income for the first half of 2024 compare to the first half of 2023?
Net income attributable to LKQ Corporation for the first six months of 2024 was $317 million, down from $338 million for the same period in 2023.
What is LKQ Corp's fiscal year end?
LKQ Corp's fiscal year ends on December 31.
What is the ticker symbol for LKQ Corp?
The filing indicates LKQ Corp is listed on Nasdaq.
What was the company's reported net sales for the six months ended June 30, 2023?
For the six months ended June 30, 2023, LKQ Corp reported total net sales of $3,283 million.
Filing Stats: 4,844 words · 19 min read · ~16 pages · Grade level 15.1 · Accepted 2024-07-25 15:20:31
Key Financial Figures
- $0.30 — Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 80 ) — — ( 80 )
- $0.275 — Dividends declared to LKQ stockholders ($0.275 per share) — — — — — ( 74 ) — — ( 74 )
- $0.60 — Dividends declared to LKQ stockholders ($0.60 per share) — — — — — ( 161 ) — — ( 161
- $0.55 — Dividends declared to LKQ stockholders ($0.55 per share) — — — — — ( 148 ) — — ( 148
Filing Documents
- lkq-20240630.htm (10-Q) — 2082KB
- lkq-ex41_20240630.htm (EX-4.1) — 1852KB
- lkq-exx42_20240630.htm (EX-4.2) — 1084KB
- lkq-ex101_20240630.htm (EX-10.1) — 163KB
- lkq-ex221_20240630.htm (EX-22.1) — 36KB
- lkq-ex311_20240630.htm (EX-31.1) — 10KB
- lkq-ex312_20240630.htm (EX-31.2) — 10KB
- lkq-ex321_20240630.htm (EX-32.1) — 5KB
- lkq-ex322_20240630.htm (EX-32.2) — 5KB
- image_3.jpg (GRAPHIC) — 17KB
- image_61forexhibits.jpg (GRAPHIC) — 136KB
- image_2.jpg (GRAPHIC) — 18KB
- 0001065696-24-000112.txt ( ) — 13444KB
- lkq-20240630.xsd (EX-101.SCH) — 59KB
- lkq-20240630_cal.xml (EX-101.CAL) — 57KB
- lkq-20240630_def.xml (EX-101.DEF) — 369KB
- lkq-20240630_lab.xml (EX-101.LAB) — 620KB
- lkq-20240630_pre.xml (EX-101.PRE) — 522KB
- lkq-20240630_htm.xml (XML) — 1757KB
FINANCIAL INFORMATION
PART I FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements: Unaudited Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 4 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30 , 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 9
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 50
Controls and Procedures
Item 4. Controls and Procedures 51
OTHER INFORMATION
PART II OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 52
Risk Factors
Item 1A. Risk Factors 52
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 52
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 52
Other Information
Item 5. Other Information 52
Exhibits
Item 6. Exhibits 53 SIGNATURES 54 2 PART I FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Income (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue $ 3,711 $ 3,448 $ 7,414 $ 6,797 Cost of goods sold 2,270 2,034 4,521 4,011 Gross margin 1,441 1,414 2,893 2,786 Selling, general and administrative expenses 976 938 2,020 1,869 Restructuring and transaction related expenses 49 8 79 26 Depreciation and amortization 87 61 176 119 Operating income 329 407 618 772 Other expense (income): Interest expense 66 52 130 88 Gains on foreign exchange contracts - acquisition related (1) — ( 23 ) — ( 46 ) Interest income and other income, net ( 3 ) ( 11 ) ( 9 ) ( 20 ) Total other expense, net 63 18 121 22 Income before provision for income taxes 266 389 497 750 Provision for income taxes 82 109 153 203 Equity in earnings of unconsolidated subsidiaries 2 2 — 5 Net income 186 282 344 552 Less: net income attributable to noncontrolling interest 1 1 1 1 Net income attributable to LKQ stockholders $ 185 $ 281 $ 343 $ 551 Basic earnings per share: Net income $ 0.70 $ 1.05 $ 1.29 $ 2.06 Less: net income attributable to noncontrolling interest — — — — Net income attributable to LKQ stockholders $ 0.70 $ 1.05 $ 1.29 $ 2.06 Diluted earnings per share: Net income $ 0.70 $ 1.05 $ 1.29 $ 2.06 Less: net income attributable to noncontrolling interest — — — — Net income attributable to LKQ stockholders $ 0.70 $ 1.05 $ 1.29 $ 2.06 (1) Related to the Uni-Select Inc. ("Uni-Select") acquisition. Refer to Note 2, "Business Combinations" and Note 13, "Derivative Instruments and Hedging Activities" for further information. The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements. 3 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Comprehensive Income (In millions) Three Months Ended June 3