LKQ (US:LKQ)2024-02-22 11:42Revenue Performance - Fourth quarter 2023 revenue was $3.5 billion, a 16.6% increase compared to $3.0 billion in Q4 2022[3] - Full year 2023 revenue reached $13.9 billion, an 8.4% increase from $12.8 billion in 2022[4] - Revenue for Q4 2023 was $3,501 million, a 16.6% increase from $3,001 million in Q4 2022[26] - Full year 2023 revenue reached $13,866 million, an 8.4% increase from $12,794 million in 2022[28] - The company reported a total of $4,974 million in wholesale revenue for North America for the year 2023, an 18.2% increase from $4,207 million in 2022[34] - Wholesale revenue in North America for Q4 2023 was $1,393 million, a 35.9% increase from $1,025 million in Q4 2022[33] - Parts & Services revenue for Q4 2023 was reported at $3,356 million, with a year-over-year growth of 18.7%[35] - Revenue growth at constant currency for Parts & Services was 16.0% in Q4 2023, while total revenue growth at constant currency was 14.0%[35] Profitability Metrics - Net income for Q4 2023 was $184 million, down from $193 million in Q4 2022, while adjusted net income increased by 7.9% to $226 million[4] - Full year 2023 net income was $0.94 billion, a decrease of 14.6% from $1.14 billion in 2022[5] - Operating income decreased to $277 million in Q4 2023, down 5.5% from $293 million in Q4 2022[26] - Full year 2023 operating income was $1,357 million, down 14.2% from $1,581 million in 2022[28] - Net income attributable to LKQ stockholders for Q4 2023 was $177 million, an 8.8% decrease from $194 million in Q4 2022[26] - Net income attributable to LKQ stockholders for the full year 2023 was $936 million, an 18.5% decrease from $1,149 million in 2022[28] - Basic earnings per share for Q4 2023 was $0.66, down 9.6% from $0.73 in Q4 2022[26] - Diluted earnings per share (EPS) from continuing operations attributable to LKQ stockholders for FY 2023 was $3.51, down from $4.11 in FY 2022[41] Cash Flow and Capital Management - Operating cash flow for 2023 was $1.4 billion, with free cash flow of $1.0 billion[7] - The company repurchased 0.7 million shares for $30 million in Q4 2023, totaling 0.8 million shares for $35 million in 2023[8] - The board declared a quarterly cash dividend of $0.30 per share, payable on March 28, 2024[9] - Free cash flow for FY 2023 was $998 million, slightly down from $1,028 million in FY 2022[44] - Forecasted free cash flow for FY 2024 is projected to be $1,000 million[46] Future Outlook - For 2024, the company anticipates organic revenue growth of 3.5% to 5.5% and adjusted diluted EPS of $3.90 to $4.20[13] - Forecasted net income from continuing operations attributable to LKQ stockholders for FY 2024 is projected to be between $918 million and $998 million[43] - Forecasted adjusted net income from continuing operations attributable to LKQ stockholders for FY 2024 is expected to range from $1,045 million to $1,125 million[43] Integration and Restructuring - The integration of Uni-Select is ongoing, with half of the FinishMaster locations converted ahead of schedule, expecting to exceed $55 million in synergies[11] - Restructuring and transaction-related expenses increased to $65 million in 2023 from $20 million in 2022[28] - Restructuring and transaction-related expenses for FY 2024 are expected to be $30 million[43] Balance Sheet Highlights - Total assets increased to $15,079 million as of December 31, 2023, up from $12,038 million in 2022, representing a growth of 25.4%[30] - Cash and cash equivalents at the end of the period were $299 million, up from $278 million at the beginning of the year, reflecting a net increase of $21 million[32] - The company’s retained earnings increased to $7,290 million as of December 31, 2023, compared to $6,656 million in 2022, marking a growth of 9.5%[30] - The total current liabilities rose to $3,318 million in 2023, up from $2,271 million in 2022, indicating a significant increase of 46.1%[30] - The company’s total stockholders' equity increased to $6,181 million in 2023, compared to $5,467 million in 2022, reflecting a growth of 13.0%[30] Segment Performance - Segment EBITDA for Q4 2023 reached $396 million, representing 11.3% of total revenue, compared to 12.4% in Q4 2022[36] - Segment EBITDA for the year ended December 31, 2023, was $1,759 million, which is 12.7% of total revenue[37] Other Notable Items - The company incurred $214 million in interest expense for the full year 2023, significantly up from $78 million in 2022[28] - The company experienced a decline in specialty revenue, which fell to $1,665 million in 2023, down 6.9% from $1,788 million in 2022[34] - The impact of currency fluctuations on Parts & Services revenue was a reduction of $76 million in Q4 2023[35] - The company noted adjustments related to the Uni-Select acquisition and the ongoing impacts of the Ukraine/Russia conflict[39] - Adjusted net income from continuing operations attributable to LKQ stockholders for Q4 2023 was $226 million, up 8.1% from $209 million in Q4 2022[41] - Amortization of acquired intangibles for FY 2024 is estimated at $144 million[43]