LKQ Corporation released its second quarter 2020 revenue of $2.6 billion today which is down 19.1% year-over-year, according to the company. Other results include a net income of $119 million (down 21.2%), an adjusted net income of $161 million (down 20.9%), and reduced borrowings by $552 million, which equates to a year-to-date debt paydown of $782 million.
“The momentum we gained in April and May continued through June, and we finished the quarter solidly,” said Dominick Zarcone, president and CEO. “During the quarter, we delivered on our key initiatives of driving higher levels of cash flow and driving higher EBITDA margins. Operating cash flows were $718 million, a 56% increase over the same period in 2019. Additionally, despite the decline in revenue, our North American team delivered Segment EBITDA margin of 14.8%. Our European segment demonstrated continuous improvements from a revenue and margin perspective each month as we migrated through the quarter. I am particularly pleased with the performance of our Specialty segment, which saw only a slight decline in organic revenue of 1.4%, well above our expectations.”
He did add however, that “there remains a high degree of uncertainty about the ongoing rate and shape of the COVID-19 recovery. As a result, the Company is not providing new fiscal 2020 guidance at this time. That said, our teams across the globe are committed to effective operational execution and protecting our business in this uncharted environment as they have thus far. Importantly, despite these headwinds, our long-term strategic and financial objectives, and capital allocation priorities, are unchanged.”