LKQ Corp. (LKQX, Financial) filed Quarterly Report for the period ended 2012-09-30.
Lkq Corp. has a market cap of $2.33 billion; its shares were traded at around $0 with a P/E ratio of 24.7.
Cost of Goods Sold. Our cost of goods sold increased to 59.7% of revenue in the three months ended September 30, 2012 from 57.4% of revenue in the comparable period of 2011. The higher cost of goods sold during the third quarter of 2012 is partially a result of the continued decline in scrap metal prices that began in the second quarter of 2012. During the third quarter of 2012, the prices we received for scrap metal declined relative to the cost of the scrap component of the cars that we crushed, while in the comparative prior year quarter scrap metal prices increased. The resulting margin compression in our Self Service and Wholesale - North America segments contributed 0.8% of the gross margin decrease. Our cost of goods sold for the three months ended September 30, 2012 also reflects a 0.4% increase as a result of the lower gross margins generated by our precious metals refining and reclamation business that we acquired in the second quarter of 2012. Higher warranty claims experience during the three months ended September 30, 2012, primarily related to our remanufactured engines, increased cost of goods sold by 0.4% of revenue. Our cost of goods sold for the third quarter of 2012 also reflects lower levels of revenue from high margin, crush-only vehicles compared to the prior year quarter, which increased cost of goods sold by 0.3%. In our Wholesale - North America segment, lower core contribution compared to the prior year quarter increased our cost of goods sold by 0.2%.
Revenue. Our revenue increased 31.1% to $3.1 billion for the nine months ended September 30, 2012 from $2.3 billion for the comparable period of 2011. The increase in revenue was due to 28.4% acquisition related revenue growth and 2.9% organic growth, offset by 0.1% unfavorable impact from foreign exchange in our Canadian operations. Acquisition related revenue growth for the first nine months of 2012 totaled $661.8 million, which included $481.6 million from our fourth quarter 2011 acquisition of ECP. Our organic revenue from the sale of recycled and remanufactured products grew 6.6% primarily as a result of higher volumes, which resulted from higher inventory purchases that contributed to a greater volume of parts available for sale. Our organic revenue growth in aftermarket, other new and refurbished products of 4.0% for the nine months ended September 30, 2012 is primarily a result of higher sales volumes beginning late in the second quarter and
Cost of Goods Sold. Our cost of goods sold increased to 58.1% of revenue in the nine months ended September 30, 2012 from 57.1% of revenue in the comparable period of 2011. The higher cost of goods sold during the nine months ended September 30, 2012 is partially a result of the continued decline in scrap metals prices beginning in the second quarter of 2012. During the second and third quarters of 2012, the prices we received for scrap metal declined relative to the cost of the scrap component of the cars that we crushed, while in the comparative prior year period scrap metal prices increased. The resulting margin compression in our Self Service and Wholesale - North America segments contributed 0.9% of the gross margin decrease. Our acquisition of ECP, which generates lower gross margins than our North American business because of a greater weighting on lower margin mechanical products, increased our costs of goods sold as a percentage of revenue by 0.4%. These increases in our cost of goods sold were partially offset by a gain on lawsuit settlements with certain of our aftermarket product suppliers totaling $17.2 million, which reduced cost of goods sold by 0.6% of revenue. Refer to Note 7, "Commitments and Contingencies" to the unaudited consolidated condensed financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on the lawsuit settlements.
Net cash provided by operating activities totaled $182.1 million for the nine months ended September 30, 2012, compared to $159.2 million for the same period of 2011. In 2012, our EBITDA increased by $75.7 million compared to the prior year period, due to both acquisition related growth and organic growth. The increase in EBITDA was partially offset by $27.3 million in higher income tax payments compared to income tax payments made in the first nine months of 2011 as a result of greater pretax earnings. The first nine months of 2012 reflected higher bonus payments of $1.8 million compared to the prior year as well as $5.9 million of payments under our long term incentive plan. Due to higher outstanding debt levels, cash payments for interest exceeded payments in the prior year period by $5.2 million. Insurance policy payments in the first nine months of 2012 were $3.7 million higher than the prior year period primarily as a result of additional insurance policies for our European operations acquired in the fourth quarter of 2011. Other operating cash outflows during the first nine months of 2012 exceeded the prior year period primarily due to the timing of payments of various accrued liabilities.
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Lkq Corp. has a market cap of $2.33 billion; its shares were traded at around $0 with a P/E ratio of 24.7.
Highlight of Business Operations:
Revenue. Our revenue increased 29.7% to $1.0 billion for the three months ended September 30, 2012 from $783.9 million for the comparable period of 2011. The increase in revenue was due to 28.2% acquisition related revenue growth and 1.6% organic growth, offset by 0.1% unfavorable impact from foreign exchange in our Canadian operations. Acquisition related revenue growth for the quarter totaled $221.0 million, which included $166.2 million from our fourth quarter 2011 acquisition of ECP. Our organic revenue from the sale of aftermarket, other new and refurbished products grew 7.5% primarily as a result of higher volumes. Incremental sales volume from ECP's new branches, which we include in organic revenue, contributed 4.1% of the growth. The remaining volume increase is primarily attributable to the effect of greater alternative parts usage in North America in the third quarter of 2012 compared to the prior year quarter. Our organic revenue from the sale of recycled and remanufactured products grew 3.1% primarily as a result of higher volumes, which resulted from higher inventory purchases that contributed to a greater volume of parts available for sale. The organic growth in parts and services revenue was partially offset by a 17.8% reduction in other revenue primarily due to declining scrap steel and other metals prices.Cost of Goods Sold. Our cost of goods sold increased to 59.7% of revenue in the three months ended September 30, 2012 from 57.4% of revenue in the comparable period of 2011. The higher cost of goods sold during the third quarter of 2012 is partially a result of the continued decline in scrap metal prices that began in the second quarter of 2012. During the third quarter of 2012, the prices we received for scrap metal declined relative to the cost of the scrap component of the cars that we crushed, while in the comparative prior year quarter scrap metal prices increased. The resulting margin compression in our Self Service and Wholesale - North America segments contributed 0.8% of the gross margin decrease. Our cost of goods sold for the three months ended September 30, 2012 also reflects a 0.4% increase as a result of the lower gross margins generated by our precious metals refining and reclamation business that we acquired in the second quarter of 2012. Higher warranty claims experience during the three months ended September 30, 2012, primarily related to our remanufactured engines, increased cost of goods sold by 0.4% of revenue. Our cost of goods sold for the third quarter of 2012 also reflects lower levels of revenue from high margin, crush-only vehicles compared to the prior year quarter, which increased cost of goods sold by 0.3%. In our Wholesale - North America segment, lower core contribution compared to the prior year quarter increased our cost of goods sold by 0.2%.
Revenue. Our revenue increased 31.1% to $3.1 billion for the nine months ended September 30, 2012 from $2.3 billion for the comparable period of 2011. The increase in revenue was due to 28.4% acquisition related revenue growth and 2.9% organic growth, offset by 0.1% unfavorable impact from foreign exchange in our Canadian operations. Acquisition related revenue growth for the first nine months of 2012 totaled $661.8 million, which included $481.6 million from our fourth quarter 2011 acquisition of ECP. Our organic revenue from the sale of recycled and remanufactured products grew 6.6% primarily as a result of higher volumes, which resulted from higher inventory purchases that contributed to a greater volume of parts available for sale. Our organic revenue growth in aftermarket, other new and refurbished products of 4.0% for the nine months ended September 30, 2012 is primarily a result of higher sales volumes beginning late in the second quarter and
Cost of Goods Sold. Our cost of goods sold increased to 58.1% of revenue in the nine months ended September 30, 2012 from 57.1% of revenue in the comparable period of 2011. The higher cost of goods sold during the nine months ended September 30, 2012 is partially a result of the continued decline in scrap metals prices beginning in the second quarter of 2012. During the second and third quarters of 2012, the prices we received for scrap metal declined relative to the cost of the scrap component of the cars that we crushed, while in the comparative prior year period scrap metal prices increased. The resulting margin compression in our Self Service and Wholesale - North America segments contributed 0.9% of the gross margin decrease. Our acquisition of ECP, which generates lower gross margins than our North American business because of a greater weighting on lower margin mechanical products, increased our costs of goods sold as a percentage of revenue by 0.4%. These increases in our cost of goods sold were partially offset by a gain on lawsuit settlements with certain of our aftermarket product suppliers totaling $17.2 million, which reduced cost of goods sold by 0.6% of revenue. Refer to Note 7, "Commitments and Contingencies" to the unaudited consolidated condensed financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on the lawsuit settlements.
Net cash provided by operating activities totaled $182.1 million for the nine months ended September 30, 2012, compared to $159.2 million for the same period of 2011. In 2012, our EBITDA increased by $75.7 million compared to the prior year period, due to both acquisition related growth and organic growth. The increase in EBITDA was partially offset by $27.3 million in higher income tax payments compared to income tax payments made in the first nine months of 2011 as a result of greater pretax earnings. The first nine months of 2012 reflected higher bonus payments of $1.8 million compared to the prior year as well as $5.9 million of payments under our long term incentive plan. Due to higher outstanding debt levels, cash payments for interest exceeded payments in the prior year period by $5.2 million. Insurance policy payments in the first nine months of 2012 were $3.7 million higher than the prior year period primarily as a result of additional insurance policies for our European operations acquired in the fourth quarter of 2011. Other operating cash outflows during the first nine months of 2012 exceeded the prior year period primarily due to the timing of payments of various accrued liabilities.
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