Delaware | 000-50404 | 36-4215970 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||
500 West Madison Street, Suite 2800 Chicago, IL | 60661 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description of Exhibit | |
99.1 | LKQ Corporation Press Release dated October 27, 2016. |
LKQ CORPORATION | |
By: | /s/ DOMINICK ZARCONE |
Dominick Zarcone | |
Executive Vice President and Chief Financial Officer |
• | Revenue growth of 30.3% to $2.4 billion |
• | Organic revenue growth for parts and services of 3.7% |
• | Net income growth of 21.1%; adjusted net income growth of 26.8% |
• | Diluted EPS of $0.40; adjusted diluted EPS of $0.45 |
• | Annual guidance updated |
Updated Guidance | Prior Guidance | |
Organic revenue growth (parts & services) | 4.5% to 5.0% | 5.5% to 7.0% |
Adjusted net income* | $551 million to $569 million | $555 million to $580 million |
Adjusted diluted EPS* | $1.78 to $1.84 | $1.79 to $1.87 |
Cash flow from operations | $575 million to $600 million | $585 million to $635 million |
Capital expenditures | $200 million to $225 million | $200 million to $225 million |
• | changes in economic and political activity in the U.S. and other countries in which we are located or do business, including the U.K. withdrawal from the European Union, and the impact of these changes on our businesses, the demand for our products and our ability to obtain financing for operations; |
• | increasing competition in the automotive parts industry; |
• | fluctuations in the pricing of new original equipment manufacturer (“OEM”) replacement products; |
• | changes in the level of acceptance and promotion of alternative automotive parts by insurance companies and auto repairers; |
• | changes to our business relationships with insurance companies or changes by insurance companies to their business practices relating to the use of our products; |
• | our ability to identify sufficient acquisition candidates at reasonable prices to maintain our growth objectives; |
• | our ability to integrate, realize expected synergies, and successfully operate acquired companies and any companies acquired in the future, and the risks associated with these companies; |
• | restrictions or prohibitions on selling certain aftermarket products to the extent OEMs seek and obtain more design patents than they have in the past and are successful in asserting infringement of these patents and defending their validity; |
• | variations in the number of vehicles manufactured and sold, vehicle accident rates, miles driven, and the age profile of vehicles in accidents; |
• | fluctuations in the prices of fuel, scrap metal and other commodities; |
• | changes in laws or regulations affecting our business; |
• | higher costs and the resulting potential inability to service our customers to the extent that our suppliers decide to discontinue business relationships with us; |
• | price increases, interruptions or disruptions to the supply of vehicles or vehicle parts from aftermarket suppliers and from salvage auctions; |
• | changes in the demand for our products and the supply of our inventory due to severity of weather and seasonality of weather patterns; |
• | the risks associated with operating in foreign jurisdictions, including foreign laws and economic and political instabilities; |
• | declines in the values of our assets; |
• | additional unionization efforts, new collective bargaining agreements, and work stoppages; |
• | our ability to develop and implement the operational and financial systems needed to manage our operations; |
• | interruptions, outages or breaches of our operational systems, security systems, or infrastructure as a result of attacks on, or malfunctions of, our systems; |
• | product liability claims by the end users of our products or claims by other parties who we have promised to indemnify for product liability matters; |
• | costs associated with recalls of the products we sell; |
• | inaccuracies in the data relating to our industry published by independent sources upon which we rely; |
• | currency fluctuations in the U.S. dollar, pound sterling and euro versus other currencies; |
• | our ability to obtain financing on acceptable terms to finance our growth; |
• | our ability to satisfy our debt obligations and to operate within the limitations imposed by financing agreements; and |
• | other risks that are described in our Form 10-K filed February 25, 2016 and in other reports filed by us from time to time with the SEC. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 2,386,830 | $ | 1,831,732 | $ | 6,758,999 | $ | 5,443,714 | |||||||
Cost of goods sold | 1,503,418 | 1,118,953 | 4,193,203 | 3,307,512 | |||||||||||
Gross margin | 883,412 | 712,779 | 2,565,796 | 2,136,202 | |||||||||||
Facility and warehouse expenses | 183,048 | 143,918 | 519,323 | 412,954 | |||||||||||
Distribution expenses | 172,566 | 158,768 | 509,240 | 450,521 | |||||||||||
Selling, general and administrative expenses | 263,372 | 207,887 | 735,843 | 616,924 | |||||||||||
Restructuring and acquisition related expenses | 8,412 | 4,578 | 32,303 | 12,729 | |||||||||||
Depreciation and amortization | 53,016 | 30,883 | 137,233 | 90,118 | |||||||||||
Operating income | 202,998 | 166,745 | 631,854 | 552,956 | |||||||||||
Other expense (income): | |||||||||||||||
Interest expense, net | 27,059 | 14,722 | 68,032 | 44,250 | |||||||||||
Loss on debt extinguishment | — | — | 26,650 | — | |||||||||||
Gains on foreign exchange contracts - acquisition related | — | — | (18,342 | ) | — | ||||||||||
Other income, net | (3,279 | ) | (2,928 | ) | (4,829 | ) | (912 | ) | |||||||
Total other expense, net | 23,780 | 11,794 | 71,511 | 43,338 | |||||||||||
Income before provision for income taxes | 179,218 | 154,951 | 560,343 | 509,618 | |||||||||||
Provision for income taxes | 56,797 | 52,475 | 182,751 | 177,255 | |||||||||||
Equity in earnings of unconsolidated subsidiaries | 267 | (1,130 | ) | 52 | (4,200 | ) | |||||||||
Net income | $ | 122,688 | $ | 101,346 | $ | 377,644 | $ | 328,163 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.40 | $ | 0.33 | $ | 1.23 | $ | 1.08 | |||||||
Diluted | $ | 0.40 | $ | 0.33 | $ | 1.22 | $ | 1.07 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 307,190 | 305,059 | 306,690 | 304,453 | |||||||||||
Diluted | 310,036 | 307,728 | 309,671 | 307,326 |
September 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and equivalents | $ | 271,851 | $ | 87,397 | |||
Receivables, net | 959,321 | 590,160 | |||||
Inventories, net | 1,912,568 | 1,556,552 | |||||
Prepaid expenses and other current assets | 151,801 | 106,603 | |||||
Total Current Assets | 3,295,541 | 2,340,712 | |||||
Property, Plant and Equipment, net | 1,023,707 | 696,567 | |||||
Intangible Assets: | |||||||
Goodwill | 3,117,150 | 2,319,246 | |||||
Other intangibles, net | 619,246 | 215,117 | |||||
Other Assets | 148,308 | 76,195 | |||||
Total Assets | $ | 8,203,952 | $ | 5,647,837 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 682,719 | $ | 415,588 | |||
Accrued expenses: | |||||||
Accrued payroll-related liabilities | 106,544 | 86,527 | |||||
Other accrued expenses | 238,302 | 162,225 | |||||
Other current liabilities | 46,814 | 31,596 | |||||
Current portion of long-term obligations | 74,829 | 56,034 | |||||
Total Current Liabilities | 1,149,208 | 751,970 | |||||
Long-Term Obligations, Excluding Current Portion | 3,189,345 | 1,528,668 | |||||
Deferred Income Taxes | 226,682 | 127,239 | |||||
Other Noncurrent Liabilities | 211,440 | 125,278 | |||||
Commitments and Contingencies | |||||||
Stockholders’ Equity: | |||||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 307,487,198 and 305,574,384 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 3,074 | 3,055 | |||||
Additional paid-in capital | 1,110,841 | 1,090,713 | |||||
Retained earnings | 2,504,028 | 2,126,384 | |||||
Accumulated other comprehensive loss | (190,666 | ) | (105,470 | ) | |||
Total Stockholders’ Equity | 3,427,277 | 3,114,682 | |||||
Total Liabilities and Stockholders’ Equity | $ | 8,203,952 | $ | 5,647,837 |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 377,644 | $ | 328,163 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 150,370 | 94,688 | |||||
Stock-based compensation expense | 17,062 | 16,291 | |||||
Loss on debt extinguishment | 26,650 | — | |||||
Gains on foreign exchange contracts - acquisition related | (18,342 | ) | — | ||||
Other | 6,711 | 6,580 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Receivables, net | (46,376 | ) | (6,304 | ) | |||
Inventories, net | 27,070 | 22,345 | |||||
Prepaid income taxes/income taxes payable | 4,134 | 39,639 | |||||
Accounts payable | (12,412 | ) | (11,139 | ) | |||
Other operating assets and liabilities | (8,360 | ) | 14,732 | ||||
Net cash provided by operating activities | 524,151 | 504,995 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property, plant and equipment | (152,746 | ) | (99,573 | ) | |||
Acquisitions, net of cash acquired | (1,301,127 | ) | (157,357 | ) | |||
Other investing activities, net | 29,183 | 3,174 | |||||
Net cash used in investing activities | (1,424,690 | ) | (253,756 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of stock options | 7,525 | 7,534 | |||||
Taxes paid related to net share settlements of stock-based compensation awards | (4,440 | ) | (7,423 | ) | |||
Proceeds from issuance of Euro notes | 563,450 | — | |||||
Repayment of Rhiag debt and related payments | (543,347 | ) | — | ||||
Net borrowings (payments) of long-term and other obligations, excluding Rhiag debt repayments and issuance of Euro notes | 1,081,698 | (226,728 | ) | ||||
Debt issuance costs | (16,404 | ) | — | ||||
Net cash provided by (used in) financing activities | 1,088,482 | (226,617 | ) | ||||
Effect of exchange rate changes on cash and equivalents | (3,489 | ) | (2,141 | ) | |||
Net increase in cash and equivalents | 184,454 | 22,481 | |||||
Cash and equivalents, beginning of period | 87,397 | 114,605 | |||||
Cash and equivalents, end of period | $ | 271,851 | $ | 137,086 |
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
(In thousands) | ||||||||||||||
Included in Unaudited Condensed Consolidated | ||||||||||||||
Statements of Income of LKQ Corporation | ||||||||||||||
North America | $ | 935,959 | $ | 914,956 | $ | 21,003 | 2.3 | % | ||||||
Europe | 769,332 | 510,279 | 259,053 | 50.8 | % | |||||||||
Specialty | 311,621 | 283,456 | 28,165 | 9.9 | % | |||||||||
Glass | 258,411 | — | 258,411 | n/m | ||||||||||
Parts and services | 2,275,323 | 1,708,691 | 566,632 | 33.2 | % | |||||||||
Other | 111,507 | 123,041 | (11,534 | ) | (9.4 | )% | ||||||||
Total | $ | 2,386,830 | $ | 1,831,732 | $ | 555,098 | 30.3 | % |
Revenue Change Attributable to: | |||||||||||
Organic | Acquisition | Foreign Exchange | Total Change (1) | ||||||||
North America | 2.1 | % | 0.2 | % | 0.0 | % | 2.3 | % | |||
Europe | 6.7 | % | 54.6 | % | (10.6 | )% | 50.8 | % | |||
Specialty | 3.7 | % | 6.2 | % | 0.0 | % | 9.9 | % | |||
Glass | n/m | n/m | n/m | n/m | |||||||
Parts and services | 3.7 | % | 32.6 | % | (3.2 | )% | 33.2 | % | |||
Other | (10.1 | )% | 0.8 | % | (0.2 | )% | (9.4 | )% | |||
Total | 2.8 | % | 30.5 | % | (3.0 | )% | 30.3 | % |
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
(In thousands) | ||||||||||||||
Included in Unaudited Condensed Consolidated | ||||||||||||||
Statements of Income of LKQ Corporation | ||||||||||||||
North America | $ | 2,884,169 | $ | 2,745,448 | $ | 138,721 | 5.1 | % | ||||||
Europe | 2,137,998 | 1,505,106 | 632,892 | 42.0 | % | |||||||||
Specialty | 934,955 | 807,401 | 127,554 | 15.8 | % | |||||||||
Glass | 468,515 | — | 468,515 | n/m | ||||||||||
Parts and services | 6,425,637 | 5,057,955 | 1,367,682 | 27.0 | % | |||||||||
Other | 333,362 | 385,759 | (52,397 | ) | (13.6 | )% | ||||||||
Total | $ | 6,758,999 | $ | 5,443,714 | $ | 1,315,285 | 24.2 | % |
Revenue Change Attributable to: | |||||||||||
Organic | Acquisition | Foreign Exchange | Total Change (1) | ||||||||
North America | 3.3 | % | 2.0 | % | (0.3 | )% | 5.1 | % | |||
Europe | 7.2 | % | 41.1 | % | (6.3 | )% | 42.0 | % | |||
Specialty | 7.3 | % | 8.9 | % | (0.4 | )% | 15.8 | % | |||
Glass | n/m | n/m | n/m | n/m | |||||||
Parts and services | 5.1 | % | 24.0 | % | (2.1 | )% | 27.0 | % | |||
Other | (17.2 | )% | 3.8 | % | (0.2 | )% | (13.6 | )% | |||
Total | 3.5 | % | 22.6 | % | (2.0 | )% | 24.2 | % |
Three Months Ended September 30, | ||||||||||||||||||||
Operating Highlights | 2016 | 2015 | ||||||||||||||||||
% of Revenue (1) | % of Revenue (1) | Change | % Change | |||||||||||||||||
Revenue | $ | 2,386,830 | 100.0 | % | $ | 1,831,732 | 100.0 | % | $ | 555,098 | 30.3 | % | ||||||||
Cost of goods sold | 1,503,418 | 63.0 | % | 1,118,953 | 61.1 | % | 384,465 | 34.4 | % | |||||||||||
Gross margin | 883,412 | 37.0 | % | 712,779 | 38.9 | % | 170,633 | 23.9 | % | |||||||||||
Facility and warehouse expenses | 183,048 | 7.7 | % | 143,918 | 7.9 | % | 39,130 | 27.2 | % | |||||||||||
Distribution expenses | 172,566 | 7.2 | % | 158,768 | 8.7 | % | 13,798 | 8.7 | % | |||||||||||
Selling, general and administrative expenses | 263,372 | 11.0 | % | 207,887 | 11.3 | % | 55,485 | 26.7 | % | |||||||||||
Restructuring and acquisition related expenses | 8,412 | 0.4 | % | 4,578 | 0.2 | % | 3,834 | 83.7 | % | |||||||||||
Depreciation and amortization | 53,016 | 2.2 | % | 30,883 | 1.7 | % | 22,133 | 71.7 | % | |||||||||||
Operating income | 202,998 | 8.5 | % | 166,745 | 9.1 | % | 36,253 | 21.7 | % | |||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 27,059 | 1.1 | % | 14,722 | 0.8 | % | 12,337 | 83.8 | % | |||||||||||
Other income, net | (3,279 | ) | (0.1 | )% | (2,928 | ) | (0.2 | )% | (351 | ) | 12.0 | % | ||||||||
Total other expense, net | 23,780 | 1.0 | % | 11,794 | 0.6 | % | 11,986 | n/m | ||||||||||||
Income before provision for income taxes | 179,218 | 7.5 | % | 154,951 | 8.5 | % | 24,267 | 15.7 | % | |||||||||||
Provision for income taxes | 56,797 | 2.4 | % | 52,475 | 2.9 | % | 4,322 | 8.2 | % | |||||||||||
Equity in earnings of unconsolidated subsidiaries | 267 | 0.0 | % | (1,130 | ) | (0.1 | )% | 1,397 | n/m | |||||||||||
Net income | $ | 122,688 | 5.1 | % | $ | 101,346 | 5.5 | % | $ | 21,342 | 21.1 | % | ||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.40 | $ | 0.33 | $ | 0.07 | 21.2 | % | ||||||||||||
Diluted | $ | 0.40 | $ | 0.33 | $ | 0.07 | 21.2 | % | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 307,190 | 305,059 | 2,131 | 0.7 | % | |||||||||||||||
Diluted | 310,036 | 307,728 | 2,308 | 0.8 | % |
Nine Months Ended September 30, | ||||||||||||||||||||
Operating Highlights | 2016 | 2015 | ||||||||||||||||||
% of Revenue (1) | % of Revenue (1) | Change | % Change | |||||||||||||||||
Revenue | $ | 6,758,999 | 100.0 | % | $ | 5,443,714 | 100.0 | % | $ | 1,315,285 | 24.2 | % | ||||||||
Cost of goods sold | 4,193,203 | 62.0 | % | 3,307,512 | 60.8 | % | 885,691 | 26.8 | % | |||||||||||
Gross margin | 2,565,796 | 38.0 | % | 2,136,202 | 39.2 | % | 429,594 | 20.1 | % | |||||||||||
Facility and warehouse expenses | 519,323 | 7.7 | % | 412,954 | 7.6 | % | 106,369 | 25.8 | % | |||||||||||
Distribution expenses | 509,240 | 7.5 | % | 450,521 | 8.3 | % | 58,719 | 13.0 | % | |||||||||||
Selling, general and administrative expenses | 735,843 | 10.9 | % | 616,924 | 11.3 | % | 118,919 | 19.3 | % | |||||||||||
Restructuring and acquisition related expenses | 32,303 | 0.5 | % | 12,729 | 0.2 | % | 19,574 | n/m | ||||||||||||
Depreciation and amortization | 137,233 | 2.0 | % | 90,118 | 1.7 | % | 47,115 | 52.3 | % | |||||||||||
Operating income | 631,854 | 9.3 | % | 552,956 | 10.2 | % | 78,898 | 14.3 | % | |||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 68,032 | 1.0 | % | 44,250 | 0.8 | % | 23,782 | 53.7 | % | |||||||||||
Loss on debt extinguishment | 26,650 | 0.4 | % | — | 0.0 | % | 26,650 | n/m | ||||||||||||
Gains on foreign exchange contracts - acquisition related | (18,342 | ) | (0.3 | )% | — | 0.0 | % | (18,342 | ) | n/m | ||||||||||
Other income, net | (4,829 | ) | (0.1 | )% | (912 | ) | (0.0 | )% | (3,917 | ) | n/m | |||||||||
Total other expense, net | 71,511 | 1.1 | % | 43,338 | 0.8 | % | 28,173 | 65.0 | % | |||||||||||
Income before provision for income taxes | 560,343 | 8.3 | % | 509,618 | 9.4 | % | 50,725 | 10.0 | % | |||||||||||
Provision for income taxes | 182,751 | 2.7 | % | 177,255 | 3.3 | % | 5,496 | 3.1 | % | |||||||||||
Equity in earnings of unconsolidated subsidiaries | 52 | 0.0 | % | (4,200 | ) | (0.1 | )% | 4,252 | n/m | |||||||||||
Net income | $ | 377,644 | 5.6 | % | $ | 328,163 | 6.0 | % | $ | 49,481 | 15.1 | % | ||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 1.23 | $ | 1.08 | $ | 0.15 | 13.9 | % | ||||||||||||
Diluted | $ | 1.22 | $ | 1.07 | $ | 0.15 | 14.0 | % | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 306,690 | 304,453 | 2,237 | 0.7 | % | |||||||||||||||
Diluted | 309,671 | 307,326 | 2,345 | 0.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 122,688 | $ | 101,346 | $ | 377,644 | $ | 328,163 | |||||||
Depreciation and amortization | 59,488 | 32,974 | 150,370 | 94,688 | |||||||||||
Interest expense, net | 27,059 | 14,722 | 68,032 | 44,250 | |||||||||||
Loss on debt extinguishment (1) | — | — | 26,650 | — | |||||||||||
Provision for income taxes | 56,797 | 52,475 | 182,751 | 177,255 | |||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 266,032 | $ | 201,517 | $ | 805,447 | $ | 644,356 | |||||||
EBITDA as a percentage of revenue | 11.1 | % | 11.0 | % | 11.9 | % | 11.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | 122,688 | $ | 101,346 | $ | 377,644 | $ | 328,163 | |||||||
Adjustments: | |||||||||||||||
Restructuring and acquisition related expenses | 8,412 | 4,578 | 32,303 | 12,729 | |||||||||||
Loss on debt extinguishment | — | — | 26,650 | — | |||||||||||
Amortization of acquired intangibles | 25,040 | 8,233 | 58,191 | 24,729 | |||||||||||
Inventory step-up adjustment - acquisition related | (387 | ) | — | 9,826 | — | ||||||||||
Change in fair value of contingent consideration liabilities | 57 | 89 | 176 | 365 | |||||||||||
Gains on foreign exchange contracts - acquisition related | — | — | (18,342 | ) | — | ||||||||||
Excess tax benefit from stock-based payments | (4,984 | ) | — | (11,471 | ) | — | |||||||||
Tax effect of adjustments | (11,491 | ) | (4,351 | ) | (37,748 | ) | (13,018 | ) | |||||||
Adjusted net income | $ | 139,335 | $ | 109,895 | $ | 437,229 | $ | 352,968 | |||||||
Weighted average diluted common shares outstanding | 310,036 | 307,728 | 309,671 | 307,326 | |||||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.33 | $ | 1.22 | $ | 1.07 | |||||||
Adjusted diluted earnings per share | $ | 0.45 | $ | 0.36 | $ | 1.41 | $ | 1.15 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
(In thousands) | % of Revenue | % of Revenue | % of Revenue | % of Revenue | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
North America | $ | 1,046,665 | $ | 1,037,290 | $ | 3,214,762 | $ | 3,128,614 | |||||||||||||||
Europe | 770,219 | 511,146 | 2,141,186 | 1,508,395 | |||||||||||||||||||
Specialty | 312,590 | 284,306 | 937,969 | 809,858 | |||||||||||||||||||
Glass | 258,525 | — | 468,703 | — | |||||||||||||||||||
Eliminations | (1,169 | ) | (1,010 | ) | (3,621 | ) | (3,153 | ) | |||||||||||||||
Total revenue | $ | 2,386,830 | $ | 1,831,732 | $ | 6,758,999 | $ | 5,443,714 | |||||||||||||||
Segment EBITDA | |||||||||||||||||||||||
North America | $ | 141,054 | 13.5 | % | $ | 128,506 | 12.4 | % | $ | 452,254 | 14.1 | % | $ | 416,774 | 13.3 | % | |||||||
Europe | 72,586 | 9.4 | % | 52,733 | 10.3 | % | 220,066 | 10.3 | % | 153,199 | 10.2 | % | |||||||||||
Specialty | 32,449 | 10.4 | % | 26,075 | 9.2 | % | 105,979 | 11.3 | % | 91,677 | 11.3 | % | |||||||||||
Glass | 27,758 | 10.7 | % | — | n/m | 51,059 | 10.9 | % | — | n/m | |||||||||||||
Total Segment EBITDA | 273,847 | 11.5 | % | 207,314 | 11.3 | % | 829,358 | 12.3 | % | 661,650 | 12.2 | % | |||||||||||
Deduct: | |||||||||||||||||||||||
Restructuring and acquisition related expenses | 8,412 | 4,578 | 32,303 | 12,729 | |||||||||||||||||||
Inventory step-up adjustment-acquisition related | (387 | ) | — | 9,826 | — | ||||||||||||||||||
Change in fair value of contingent consideration liabilities | 57 | 89 | 176 | 365 | |||||||||||||||||||
Add: | |||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 267 | (1,130 | ) | 52 | (4,200 | ) | |||||||||||||||||
Gains on foreign exchange contracts - acquisition related | — | — | 18,342 | — | |||||||||||||||||||
EBITDA | $ | 266,032 | 11.1 | % | $ | 201,517 | 11.0 | % | $ | 805,447 | 11.9 | % | $ | 644,356 | 11.8 | % |
Three Months Ended | Three Months Ended | ||||||
September 30, 2016 | September 30, 2016 | ||||||
Parts & Services | Total Revenue | ||||||
Revenue growth as reported | 33.2 | % | Revenue growth as reported | 30.3 | % | ||
Less: Currency impact | (3.2 | )% | Less: Currency impact | (3.0 | )% | ||
Revenue growth at constant currency | 36.4 | % | Revenue growth at constant currency | 33.3 | % |
Forecasted | |||||||
Fiscal Year 2016 | |||||||
Minimum Guidance | Maximum Guidance | ||||||
(In millions, except per share data) | |||||||
Net income | $ | 475 | $ | 493 | |||
Adjustments: | |||||||
Restructuring and acquisition related expenses | 32 | 32 | |||||
Loss on debt extinguishment | 27 | 27 | |||||
Amortization of acquired intangibles | 83 | 83 | |||||
Inventory step-up adjustment - acquisition related | 10 | 10 | |||||
Gains on foreign exchange contracts - acquisition related | (18 | ) | (18 | ) | |||
Excess tax benefit from stock-based payments | (11 | ) | (11 | ) | |||
Tax effect of adjustments | (47 | ) | (47 | ) | |||
Adjusted net income | $ | 551 | $ | 569 | |||
Weighted average diluted common shares outstanding | 310 | 310 | |||||
Diluted earnings per share | $ | 1.53 | $ | 1.59 | |||
Adjusted diluted earnings per share | $ | 1.78 | $ | 1.84 |
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