LKQ Corp. (NASDAQ:LKQ) Q3 2015 Earnings Conference Call - Final Transcript
Oct 29, 2015 • 10:00 am ET
Greetings and welcome to the LKQ Corporation Third Quarter 2015 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Joe Boutross, Investor Relations for LKQ Corporation. Thank you, Mr. Boutross. You may begin.
Thank you, Devin. Good morning, everyone, and welcome to LKQ's third quarter 2015 earnings conference call. With us today are Rob Wagman and Nick Zarcone. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for the call.
(Forward-Looking Cautionary Statements)
With that, I'm happy to turn the call over to Rob Wagman.
Thank you, Joe. Good morning and thank you for joining us on the call today. We are pleased with the results we reported this morning. And before I provide an update on our operations, let me briefly highlight a few key financial metrics from the quarter.
Turning to slide 3, Q3 revenue reached $1.83 billion, an increase of 6.4% as compared to $1.72 billion in the third quarter of 2014. Net income for the third quarter of 2015 was $101.3 million, an increase of 10.7% as compared to $91.5 million for the same period of 2014.
Diluted earnings per share of $0.33 for the third quarter ended September 30, 2015, increased 10% from $0.30 for the third quarter of 2014. Please note that adjusted diluted earnings per share for the third quarter of 2015 would have been $0.34 compared to $0.31 for the third quarter of 2014 after adjusting each of the periods for net losses resulting from restructuring and acquisition related expenses and the change in fair value of contingent consideration liabilities.
Organic revenue growth for parts and services was 6.8% for the quarter, and on a constant currency basis, total growth for parts and services was 14.9%. I am particularly pleased with our EPS performance, given the effect from FX and soft scrap steel prices, which, combined, negatively impacted the year-over-year change in EPS by $0.02.
On a nine-months year-to-date basis, revenue was $5.44 billion, an increase of 7.7% from $5.1 billion for the comparable period of 2014. Parts and services organic revenue growth for the first nine months of 2015 was 7.3%. Net income for the first nine months of 2015 was $328.2 million as compared to $301.1 million for the first nine months of 2014. Diluted earnings per share was $1.07 for the first nine months of 2015 as compared to $0.98 for the comparable period of 2014. On an adjusted basis, year-to-date 2015 EPS was $1.10 versus $1.01 for the last year.
Now a brief update on our operations, which are highlighted on slide 6 and 7. During the quarter, our North American operations continued to benefit from various macro trends. According to the U.S. Department of Transportation, miles driven was up 4.2% in July, the latest