LKQ Corporation (LKQ), parent company of PGW Auto Glass, reported growth in its fourth quarter in 2019 and the year as a whole, according to its latest financial report. The company’s annual revenue increased by 5.3%, which is an increase of $12.5 billion. Meanwhile, the company reported a 0.2% increase, which represents a $3.01 billion increase, in its fourth quarter.
“Looking back on 2019, our team worked hard to deliver on our three key initiatives of focusing on profitable revenue growth, sustainable margin expansion, and enhancing levels of cash flow. In 2019, our effective working capital management allowed us to produce the highest annual operating and free cash flow figures in the company’s history,” said Dominick Zarcone, LKQ Corporation CEO and president.
The company’s annual organic revenue growth for parts and services went up by 0.3% for the year, while also seeing an increase of 0.9% at the end of its fourth quarter. According to the financial report, LKQ’s annual operating cash flow increased by 50%, or $1.06 billion when compared to its 2018 results. Following the company’s most recent results, its president focuses on continued success for 2020.
“In fiscal 2020, we will continue to focus on our productivity initiatives across each operating segment while managing the ongoing macro headwinds in Europe and the uncertainties relating to other geopolitical events,” said Zarcone.
LKQ also released its current guidance in the chart below.
|Organic revenue growth for parts & services||0.5% to 2.5%|
|Net income attributable to LKQ stockholders||$678 million to $714 million|
|Adjusted net income attributable to LKQ stockholders||$757 million to $793 million|
|Diluted EPS attributable to LKQ stockholders||$2.20 to $2.32|
|Adjusted diluted EPS attributable to LKQ stockholders||$2.46 to $2.58|
|Cash flows from operations||$1.0 billion to $1.15 billion|
|Capital expenditures||$250 million to $300 million|
“Our 2020 annual guidance reflects our emphasis on profitable revenue growth, accretive margins and free cash flow generation. Our operational focus and active working capital management are expected to sustain our cash conversion near the heightened 2019 level,” said Varun Laroyia, LKQ Corporation executive vice president and chief financial officer.