LKQ Corporation (LKQ), parent company of PGW Auto Glass, had a first quarter that was right on par with its expectations, according to the company’s latest financial results released today. LKQ reported a 14% or $3.1 billion increase in its revenue. This is compared to its $2.7 billion revenue for last year’s first quarter.
“The business performed in-line with our expectations and we continue to make progress with our key productivity initiatives, despite tough revenue growth comparisons in North America, a challenging macro-economic environment in Europe, and the negative year-over-year impact of scrap and exchange rates, said Dominick Zarcone, LKQ Corporation president and chief executive officer.
Acquisition revenue growth was 18.3%, according to the report. Another notable point was the company’s operating cash flow, it totaled $177 million during 2019’s first quarter. This shows an increase of 22%, when directly compared to 20018’s first quarter results.
Other notable highlights from LKQ’s financial report include:
- In North America the company entered into the diagnostics and calibration repair business on April 1, 2019 through the acquisition of Elite Electronics;
- Its free cash flow totaled $124 million, which is up 50%, year-over-year;
- LKQ paid down $60 million of borrowings on its credit facilities during the quarter, as of March 31, 2019, the company’s balance sheet reflected a net debt of $3.9 billion; and
- LKQ repurchased approximately 2.6 million shares of its common stock at an average price per share of $26.66, returning approximately $70 million of capital to its stockholders.
Within the report, the company acknowledged several businesses it intends to sell over the course of the next year. LKQ aims to simplify its operating model and improve margins by getting rid of the small “non-core businesses.” The report did not disclose any completed transactions.