LKQ Corp. (NASDAQ:LKQ) Q2 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 08:00 am ET
Good morning, everyone, and welcome to LKQ's Second Quarter 2018 Earnings Conference Call. With us today are Nick Zarcone, LKQ's President and Chief Executive Officer, and Varun Laroyia, Executive Vice President and Chief Financial Officer. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for this call.
Now, let me quickly cover the safe harbor. Some of the statements that we make today may be considered forward-looking. These include statements regarding our expectations, beliefs, hopes, intentions, or strategies. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. We assume no obligation to update any forward-looking statements. For more information, please refer to the risk factors discussed in our Form 10-K and subsequent reports filed with the SEC. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's slide presentation.
And, with that, I'm happy to turn the call over to Mr. Nick Zarcone.
Thank you, Joe, and good morning to everybody on the call. We certainly appreciate your time and attention at this early hour as we adjusted the timing of our call. We are pleased to share both the results of our most recent quarter and the progress made on the various initiatives we've implemented since our first quarter call. I will provide some high-level comments and then Varun will dig in a bit further into the segments and related financial details before I come back to discuss our updated 2018 guidance and make a few closing remarks.
Overall, we had an excellent second quarter, highlighted by exceptional revenue growth in each of our segments, progress on improving margins and a successful closing of the Stahlgruber acquisition. As noted on slide four, consolidated revenue was a record $3.031 billion, reflecting a 23% increase over the $2.458 billion recorded in the second quarter of last year. This is the first time the company has crossed the $3 billion threshold in a quarter. Total revenue growth from parts and services was 22.8% during the second quarter, while organic revenue growth in parts and services on a global basis came in at a robust 7.2%. As mentioned over the past several quarters, very few companies in our sector are generating organic growth anywhere close to our level. Diluted earnings per share attributable to LKQ stockholders for the second quarter of 2018 was $0.50, as compared to $0.49 for the same period of 2017, an increase of 2%. On an adjusted basis, diluted earnings per share attributable to LKQ stockholders for the second quarter of 2018 was $0.61 a share, an increase of 15% as compared to the $0.53 for the same period of 2017. These EPS results were slightly above our expectations and due largely to the strong revenue growth and progress on the profit enhancement plans discussed last quarter.
Let's turn to the