Slide 1: Third Quarter 2024 Earnings Call Presentation
OCTOBER 24, 2024 Third Quarter 2024 Earnings Call Presentation
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures Statements and information in this presentation that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such A
Slide 3: Opening Remarks
Opening Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 4: Key Strategic Priorities
Key Strategic Priorities Maximize Total Operational Excellence Stockholder Return Simplify Business Portfolio and Invest in Organic Growth Operations Expand Lean Operating Model Disciplined Acquisitions of High Synergy Globally Drive Cash Flow Tuck-in Businesses Grow Organically Return of Cash to St
Slide 5: Q3 2024 Summary
Q3 2024 Summary Highlights Q3 2024 Performance YoY Change ($ in millions, except per share data) Total Revenue $3,584 0.5% ■ Returned over $200 million to our stockholders in p Q3, including $125 million of share repurchases Organic Parts and Services Revenue Growth (Decline) q (2.8)% and $79 millio
Slide 6: Q3 2024 Results
Q3 2024 Results RICK GALLOWAY Senior Vice President and Chief Financial Officer
Slide 7: Consolidated Operating Results – Q3 2024
Consolidated Operating Results – Q3 2024 ($ in millions, except per share data) Parts & Services Organic Total Revenue Segment EBITDA(1) Growth (Decline) $422 $434 $3,568 $3,584 1.8% 12.1% 11.8% (2.8)% $3,407 $3,427 (6.1)% (8.5)% (10.5)% Q3 2023 Q3 2024 Wholesale Europe Specialty Self Total Q3 2023
Slide 8: Wholesale – North America – Q3 2024
Wholesale – North America – Q3 2024 ($ in millions) Total Revenue Commentary $1,387 $1,423 Parts and Services Revenue Change • Organic Decline: 6.1% (7.5% decline per day) • Acquisitions / Divestitures: 9.1% $1,312 $1,349 • Foreign Exchange: (0.2)% Organic Decline Drivers: Decline in paint revenue r
Slide 9: Europe – Q3 2024
Europe – Q3 2024 ($ in millions) Total Revenue Commentary $1,584 $1,613 Parts and Services Revenue Change • Organic Growth: 1.8% (0.1% growth per day) • Acquisitions / Divestitures: 1.0% decline $1,581 $1,609 • Foreign Exchange: 0.9% Organic Growth Drivers: Driven by an increased number of selling Q
Slide 10: Specialty and Self Service – Q3 2024
Specialty – Q3 2024 ($ in millions) Self Service – Q3 2024 ($ in millions) Total Revenue Segment EBITDA Total Revenue Segment EBITDA $457 $40 $10 $419 $141 $131 $31 8.6% $58 $52 (0.6)% 7.3% 7.3% $456 $417 $83 $79 $(1) Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Parts & services r
Slide 11: Capital Allocation, Leverage & Liquidity
Capital Allocation, Leverage & Liquidity YTD 2024 Capital Deployment Key Metrics(1) ($ and shares in millions) Cash $353 Total Debt(2) $4,371 Dividends Effective Interest Rate(3) 5.5 % Capex Total Leverage Ratio(4) 2.4x Available Liquidity $1,524 $240M $225M Share Repurchase Program $796 Capacity Re
Slide 12: Outlook 2024
Outlook 2024(1) (effective only on the date issued: October 24, 2024) 2024 Full Year Outlook Other Assumptions (balance of year): Organic P&S Revenue Growth (Decline) (2.75%) to (1.75)% • Tax Rate: 27.0% Prior Outlook(5) (1.25%) to 0.25% • FX Rates: $1.10 EUR, $1.29 GBP, $0.73 CAD • Scrap & Precious
Slide 13: Closing Remarks
Closing Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 14: Appendix
Appendix LKQ
Slide 15: Appendix 1: Constant Currency Reconciliation
Appendix 1 Constant Currency Reconciliation The following unaudited table reconciles revenue and revenue growth for parts & services and total revenue to constant currency revenue and revenue growth for the same measures: Three Months Ended Three Months Ended September 30, 2024 September 30, 2024 (i
Slide 16: Appendix 2: Revenue and Segment EBITDA by segment
Appendix 2 Revenue and Segment EBITDA by segment Three Months Ended September 30 % of % of (in millions) 2024 revenue 2023 revenue Revenue Wholesale - North America $1,423 $1,387 Europe 1,613 1,584 Specialty 419 457 Self Service 131 141 Eliminations (2) (1) Total Revenue $3,584 $3,568 Segment EBITDA
Slide 17: Appendix 3: Reconciliation of Net Income to Segment EBITDA
Appendix 3 Reconciliation of Net Income to Segment EBITDA Three Months Ended September 30 We have presented Segment EBITDA solely as a (in millions) 2024 2023 supplemental disclosure that offers investors, securities analysts and other interested parties useful Net income $192 $208 information to ev
Slide 18: Appendix 4: Reconciliation to Adjusted Net Income and Adjusted Diluted EPS
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Three Months Ended September 30 (in millions, except per share data) 2024 2023 Net income $192 $208 Less: net income attributable to continuing noncontrolling interest 1 — Net income attributable
Slide 19: Appendix 4: Adjusted Net Income and Adjusted Diluted EPS definitions
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business acros
Slide 20: Appendix 5: Forecasted EPS and Free Cash Flow Reconciliation
Appendix 5 Forecasted EPS and Free Cash Flow Reconciliation Forecasted Fiscal Year 2024 (in millions, except per share data) Minimum Outlook Maximum Outlook (1) Net income $686 $723 Adjustments: Amortization of acquired intangibles 147 147 Restructuring and transaction related expenses 121 121 Tax e
Slide 21: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
Appendix 6 Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA Nine Months Ended September 30 (in millions) 2024 2023 Net cash provided by operating activities $886 $1,144 Less: purchases of property, plant and equipment 225 233 Free cash
Slide 22: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
Appendix 6 Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA We have presented free cash flow solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our
Slide 23: Appendix 7: Metals Prices & Foreign Exchange
Appendix 7: Metals Prices & Foreign Exchange Q3 2024 vs Q3 2023 Segment EBITDA Impact Average Metals Prices Wholesale - North ($ in millions) Self Service America Total Scrap Steel $5 $(3) $2 $239 $227 $229 Precious Metals $(1) $(1) $(2) $200 $209 $203 $151 $196 $196 Total $4 $(4) $— $138 $126 $110