LKQ Corporation (LKQ), parent company of PGW Auto Glass, reported a decrease in its revenue in the third quarter, which ended September 30, 2020. According to the financial report, which was released today, the company’s revenue is $3.0 billion; a decrease of 3.2% when compared to last year’s third quarter financial report.
For the third quarter of 2020, parts and services organic revenue decreased by 4.5% year-over-year, while the net impact of acquisition and divestitures revenue was (1%) and foreign exchange rates was 2.1%, for a total parts and services revenue decline of 3.4%. According to the financial report, the net income for LKQ’s third quarter was $193 million. This is an increase of 27.4% year-over-year, according to the report.
“We delivered exceptionally strong third quarter results owing to the resilience and dedication of the entire LKQ organization. I couldn’t be prouder of what our global team accomplished during these unprecedented times,” said Dominick Zarcone, CEO and president.
Zarcone also noted how the company’s employees have handled recent demands.
“Our team maintained their sharp focus on the cost structure, and we achieved the highest quarterly earnings in the company’s history and delivered year-over-year margin improvements in each of our operating segments, with North America also achieving its highest level of segment EBITDA margin in the company’s history,” said Zarcone. “These metrics validate the continued focus of our team on our key operating initiatives of profitable revenue growth, enhanced margins and free cash flow generation.”
Cash flow from operations totaled $222 million during the third quarter of 2020, for a year-to-date total of $1.1 billion, according to the report. Free cash flow in the quarter totaled $189 million, bringing the total to $1 billion in the first nine months of 2020.
“At the onset of the pandemic, we prioritized cash flow and a strong balance sheet, and during the quarter we maintained that focus by yet again delivering strong operating cash flow pushing the year to date total to over $1.1 billion,” said Varun Laroyia, LKQ executive vice president and chief financial officer. “We continue to monitor market conditions to manage cash flow and liquidity so that we have the flexibility to deploy capital into the highest return opportunities, including resuming our share repurchase program.”