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Eckes’ Late Rally at COTA Results in Top-10 Finish


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Christian Eckes put on a furious rally on an overtime restart to capture an eighth-place finish on Saturday afternoon at Circuit of the Americas (COTA). The driver of the No. 19

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Chevrolet Silverado RST had an eventful, up-and-down afternoon but showcased his resilience by rebounding from two penalties to record his second top-10 result at COTA.

After qualifying 10th on Friday afternoon, Eckes was forced to start at the tail of the field after the NAPA Auto Care team changed transmissions before the race. The New Yorker was undeterred by starting shotgun and rocketed to 14th on the opening lap. An early caution on lap three helped Eckes continue his rapid run to the front on a lap six restart when he cracked the top 10. He maintained his top-five position at the end of Stage 1 on lap 12 to collect six points in fifth position.

Crew chief Charles Denike brought Eckes to pit road for four tires, fuel, and a small adjustment under the first stage caution. Eckes restarted 11th on lap 15 as several trucks stayed on track. He immediately climbed into fifth on lap 18 and took advantage of an impending caution to pit on lap 21 before the yellow flag flew. However, Eckes was nabbed with a penalty for exceeding track limits and was sent to the tail of the field. He restarted 23rd on lap 24 and hustled his way to close Stage 2 in 12th on lap 26.

During the second stage caution, Eckes stayed on track to inherit track position and restarted eighth on lap 29. While running sixth on lap 30, Eckes incurred another track limit violation and ran 26th after serving the penalty under green. With the aid of a caution on lap 38, he restarted 10th on lap 40, but spun at the top of Turn 1 on lap 41. Denike and the NAPA Auto Care team gave Eckes four tires for the two-lap overtime as he restarted 22nd on lap 45 with two laps to go. As the OT green flag dropped, Eckes went on an all-out rampage, slicing through the field in the final two laps to take the checkered flag in eighth position.

“We came from the back at least four times today and felt like we were a top-three truck,” Eckes said. “Our NAPA Auto Care Chevrolet was pretty well balanced but just had too many mistakes on my part. Our team did a great job responding from it to get back to eighth at the end.”

Start / Finish: 10 / 8
Points Standing / Total: 6th / 177 pts. (-30)

Next Race: Friday, April 15, Martinsville Speedway
How to Watch or Listen: FS1, MRN or SiriusXM

NAPA: 

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Christian Eckes: 
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Bill McAnally Racing / McAnally-Hilgemann Racing: 
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our business may be adversely affected by union activities and labor and employment laws; we rely on information technology and communication systems in critical areas of our operations and a disruption relating to such technology could harm our business; business interruptions in our distribution centers or other facilities may affect our operations, the function of our computer systems, and/or the availability and distribution of merchandise, which may affect our business; if we experience problems with our fleet of trucks and other vehicles, our business could be harmed; we may lose the right to operate at key locations; and activist investors could cause us to incur substantial costs, divert management’s attention, and have an adverse effect on our business. 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      Joseph P. Boutross - Vice President, Investor Relations
      LKQ Corporation
      (312) 621-2793

      link hidden, please login to view LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Income, with Supplementary Data
      (In millions, except per share data)       Three Months Ended June 30,     2024       2023                 % of
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      Unaudited Condensed Consolidated Statements of Income, with Supplementary Data
      (In millions, except per share data)     Six Months Ended June 30,     2024       2023                 % of
      Revenue (2)       % of
      Revenue (2)   $ Change   % Change Revenue $ 7,414     100.0 %   $ 6,797     100.0 %   $ 617     9.1 % Cost of goods sold   4,521     61.0 %     4,011     59.0 %     510     12.7 % Gross margin   2,893     39.0 %     2,786     41.0 %     107     3.8 % Selling, general and administrative expenses   2,020     27.2 %     1,869     27.5 %     151     8.1 % Restructuring and transaction related expenses   79     1.1 %     26     0.4 %     53     n/m Depreciation and amortization   176     2.4 %     119     1.7 %     57     47.9 % Operating income   618     8.3 %     772     11.4 %     (154 )   (19.9 )% Other expense (income):                       Interest expense   130     1.8 %     88     1.3 %     42     47.7 % Gains on foreign exchange contracts - acquisition related (1)   —     — %     (46 )   (0.7 )%     46     n/m Interest income and other income, net   (9 )   (0.1 )%     (20 )   (0.3 )%     11     (55.0 )% Total other expense, net   121     1.6 %     22     0.3 %     99     n/m Income before provision for income taxes   497     6.7 %     750     11.0 %     (253 )   (33.7 )% Provision for income taxes   153     2.1 %     203     3.0 %     (50 )   (24.6 )% Equity in earnings of unconsolidated subsidiaries   —     — %     5     0.1 %     (5 )   n/m Net income   344     4.6 %     552     8.1 %     (208 )   (37.7 )% Less: net income attributable to noncontrolling interest   1     — %     1     — %     —     n/m Net income attributable to LKQ stockholders $ 343     4.6 %   $ 551     8.1 %   $ (208 )   (37.7 )%                         Basic earnings per share:                       Net income $ 1.29         $ 2.06         $ (0.77 )   (37.4 )% Less: net income attributable to noncontrolling interest   —           —           —     — % Net income attributable to LKQ stockholders $ 1.29         $ 2.06         $ (0.77 )   (37.4 )%                         Diluted earnings per share:                       Net income $ 1.29         $ 2.06         $ (0.77 )   (37.4 )% Less: net income attributable to noncontrolling interest   —           —           —     — % Net income attributable to LKQ stockholders $ 1.29         $ 2.06         $ (0.77 )   (37.4 )%                         Weighted average common shares outstanding:                       Basic   266.2           267.5           (1.3 )   (0.5 )% Diluted   266.7           268.3           (1.6 )   (0.6 )% (1) Related to the Uni-Select acquisition. (2) The sum of the individual percentage of revenue components may not equal the total due to rounding.  
      LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Balance Sheets
      (In millions, except per share data)     June 30,
      2024   December 31,
      2023 Assets       Current assets:       Cash and cash equivalents $ 276     $ 299   Receivables, net of allowance for credit losses   1,360       1,165   Inventories   3,064       3,121   Prepaid expenses and other current assets   385       283   Total current assets   5,085       4,868   Property, plant and equipment, net   1,509       1,516   Operating lease assets, net   1,364       1,336   Goodwill   5,530       5,600   Other intangibles, net   1,233       1,313   Equity method investments   157       159   Other noncurrent assets   333       287   Total assets $ 15,211     $ 15,079   Liabilities and Stockholders’ Equity       Current liabilities:       Accounts payable $ 1,764     $ 1,648   Accrued expenses:       Accrued payroll-related liabilities   199       260   Refund liability   134       132   Other accrued expenses   353       309   Current portion of operating lease liabilities   238       224   Current portion of long-term obligations   44       596   Other current liabilities   172       149   Total current liabilities   2,904       3,318   Long-term operating lease liabilities, excluding current portion   1,179       1,163   Long-term obligations, excluding current portion   4,253       3,655   Deferred income taxes   425       448   Other noncurrent liabilities   306       314   Commitments and contingencies       Stockholders’ equity:       Common stock, $0.01 par value, 1,000.0 shares authorized, 323.6 shares issued and 264.2 shares outstanding at June 30, 2024; 323.1 shares issued and 267.2 shares outstanding at December 31, 2023   3       3   Additional paid-in capital   1,547       1,538   Retained earnings   7,472       7,290   Accumulated other comprehensive loss   (313 )     (240 ) Treasury stock, at cost; 59.4 shares at June 30, 2024 and 55.9 shares at December 31, 2023   (2,580 )     (2,424 ) Total Company stockholders’ equity   6,129       6,167   Noncontrolling interest   15       14   Total stockholders’ equity   6,144       6,181   Total liabilities and stockholders’ equity $ 15,211     $ 15,079    
      LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Cash Flows
      (In millions)     Six Months Ended June 30,     2024       2023   CASH FLOWS FROM OPERATING ACTIVITIES:       Net income $ 344     $ 552   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization   200       135   Stock-based compensation expense   16       20   Gains on foreign exchange contracts - acquisition related   —       (46 ) Other   57       37   Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:       Receivables   (225 )     (223 ) Inventories   (37 )     132   Prepaid income taxes/income taxes payable   (10 )     (5 ) Accounts payable   180       104   Other operating assets and liabilities   (59 )     (3 ) Net cash provided by operating activities   466       703   CASH FLOWS FROM INVESTING ACTIVITIES:       Purchases of property, plant and equipment   (146 )     (136 ) Acquisitions, net of cash acquired   (30 )     (52 ) Other investing activities, net   (2 )     3   Net cash used in investing activities   (178 )     (185 ) CASH FLOWS FROM FINANCING ACTIVITIES:       Debt issuance costs   (7 )     (30 ) Proceeds from issuance of U.S. Notes (2028/33), net of unamortized bond discount   —       1,394   Proceeds from issuance of Euro Notes (2031), net of unamortized bond discount   816       —   Repayment of Euro Notes (2024)   (547 )     —   Borrowings under revolving credit facilities   931       1,693   Repayments under revolving credit facilities   (1,104 )     (2,267 ) Borrowings under term loans   —       500   Repayments of other debt, net   (16 )     (16 ) Settlement of derivative instruments   3       (13 ) Dividends paid to LKQ stockholders   (161 )     (148 ) Purchase of treasury stock   (155 )     (8 ) Other financing activities, net   (36 )     (6 ) Net cash (used in) provided by financing activities   (276 )     1,099   Effect of exchange rate changes on cash, cash equivalents and restricted cash   (10 )     9   Net increase in cash, cash equivalents and restricted cash   2       1,626   Cash and cash equivalents, beginning of period   299       278   Cash, cash equivalents and restricted cash, end of period (1) $ 301     $ 1,904   (1) For the period ended June 30, 2024, includes $25 million of restricted cash included in Other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.
      The following unaudited tables compare certain third party revenue categories:
        Three Months Ended June 30,     (In millions) 2024   2023   $ Change   % Change Wholesale - North America $ 1,398   $ 1,121   $ 277     24.8 % Europe   1,633     1,633     —     — % Specialty   466     442     24     5.2 % Self Service   55     63     (8 )   (11.1 )% Parts and services   3,552     3,259     293     9.0 % Wholesale - North America   75     78     (3 )   (3.6 )% Europe   6     5     1     10.1 % Self Service   78     106     (28 )   (26.7 )% Other   159     189     (30 )   (16.2 )% Total revenue $ 3,711   $ 3,448   $ 263     7.6 %
      Revenue changes by category for the three months ended June 30, 2024 vs. 2023:
        Revenue Change Attributable to:       Organic (1)   Acquisition and Divestiture   Foreign Exchange   Total Change (2) Wholesale - North America (5.3 )%   30.2 %   (0.1 )%   24.8 % Europe 0.3 %   0.8 %   (1.1 )%   — % Specialty (2.1 )%   7.4 %   (0.2 )%   5.2 % Self Service (11.1 )%   — %   — %   (11.1 )% Parts and services (2.1 )%   11.8 %   (0.6 )%   9.0 % Wholesale - North America (4.0 )%   0.5 %   (0.1 )%   (3.6 )% Europe 10.9 %   — %   (0.8 )%   10.1 % Self Service (26.7 )%   — %   — %   (26.7 )% Other (16.3 )%   0.2 %   (0.1 )%   (16.2 )% Total revenue (2.9 )%   11.1 %   (0.6 )%   7.6 % (1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at different exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.
      (2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.
      The following unaudited tables compare certain third party revenue categories:
        Six Months Ended June 30,     (In millions) 2024   2023   $ Change   % Change Wholesale - North America $ 2,820   $ 2,269   $ 551     24.3 % Europe   3,270     3,181     89     2.8 % Specialty   888     838     50     5.9 % Self Service   109     123     (14 )   (10.8 )% Parts and services   7,087     6,411     676     10.5 % Wholesale - North America   153     159     (6 )   (3.7 )% Europe   13     12     1     10.2 % Self Service   161     215     (54 )   (25.4 )% Other   327     386     (59 )   (15.4 )% Total revenue $ 7,414   $ 6,797   $ 617     9.1 %
      Revenue changes by category for the six months ended June 30, 2024 vs. 2023:
        Revenue Change Attributable to:       Organic (1)   Acquisition and Divestiture   Foreign Exchange   Total Change (2) Wholesale - North America (4.3 )%   28.6 %   — %   24.3 % Europe 1.5 %   1.1 %   0.2 %   2.8 % Specialty (1.8 )%   7.7 %   (0.1 )%   5.9 % Self Service (10.8 )%   — %   — %   (10.8 )% Parts and services (1.2 )%   11.7 %   0.1 %   10.5 % Wholesale - North America (4.4 )%   0.8 %   — %   (3.7 )% Europe 9.8 %   — %   0.3 %   10.2 % Self Service (25.4 )%   — %   — %   (25.4 )% Other (15.7 )%   0.3 %   — %   (15.4 )% Total revenue (2.0 )%   11.0 %   0.1 %   9.1 % (1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at different exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.
      (2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.
      The following unaudited table reconciles revenue and revenue growth for parts & services and total revenue to constant currency revenue and revenue growth for the same measures:
          Three Months Ended
      June 30, 2024   Six Months Ended
      June 30, 2024 (In millions)   Consolidated   Europe   Consolidated   Europe Parts & Services                 Revenue as reported   $ 3,552     $ 1,633     $ 7,087   $ 3,270 Less: Currency impact     (21 )     (18 )     6     8 Revenue at constant currency   $ 3,573     $ 1,651     $ 7,081   $ 3,262                   Total                 Revenue as reported   $ 3,711         $ 7,414     Less: Currency impact     (21 )         6     Revenue at constant currency   $ 3,732         $ 7,408      
          Three Months Ended
      June 30, 2024   Six Months Ended
      June 30, 2024     Consolidated   Europe   Consolidated   Europe Parts & Services                 Revenue growth as reported   9.0 %   — %   10.5 %   2.8 % Less: Currency impact   (0.6 )%   (1.1 )%   0.1 %   0.2 % Revenue growth at constant currency   9.6 %   1.1 %   10.4 %   2.6 %                   Total                 Revenue growth as reported   7.6 %       9.1 %     Less: Currency impact   (0.6 )%       0.1 %     Revenue growth at constant currency   8.2 %       9.0 %     We have presented our revenue and the growth rate on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP financial measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency revenue information provides valuable supplemental information regarding our growth, consistent with how we evaluate our performance, as this statistic removes the translation impact of exchange rate fluctuations, which are outside of our control and do not reflect our operational performance. Constant currency revenue results are calculated by translating prior year revenue in local currency using the current year's currency conversion rate. This non-GAAP financial measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Our use of this term may vary from the use of similarly-titled measures by other issuers due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. In addition, not all companies that report revenue growth on a constant currency basis calculate such measure in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.
      The following unaudited table compares revenue and Segment EBITDA by reportable segment:
        Three Months Ended June 30,   Six Months Ended June 30,     2024       2023       2024       2023   (In millions)   % of Revenue     % of Revenue     % of Revenue     % of Revenue Revenue                       Wholesale - North America $ 1,474       $ 1,199       $ 2,974       $ 2,428     Europe   1,639         1,638         3,283         3,193     Specialty   466         443         889         840     Self Service   133         169         270         338     Eliminations   (1 )       (1 )       (2 )       (2 )   Total revenue $ 3,711       $ 3,448       $ 7,414       $ 6,797     Segment EBITDA                       Wholesale - North America $ 256   17.3 %   $ 248   20.6 %   $ 500   16.8 %   $ 500   20.6 % Europe   174   10.6 %     188   11.5 %     317   9.7 %     339   10.6 % Specialty   41   8.9 %     42   9.5 %     68   7.7 %     73   8.7 % Self Service   13   9.9 %     7   4.1 %     29   10.9 %     29   8.7 % Total Segment EBITDA $ 484   13.0 %   $ 485   14.1 %   $ 914   12.3 %   $ 941   13.8 % We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. We calculate Segment EBITDA as Net Income excluding net income and loss attributable to noncontrolling interest; income and loss from discontinued operations; depreciation; amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction related expenses; change in fair value of contingent consideration liabilities; other gains and losses related to acquisitions, equity method investments, or divestitures; equity in losses and earnings of unconsolidated subsidiaries; equity investment fair value adjustments; impairment charges; and direct impacts of the Ukraine/Russia conflict. Our chief operating decision maker, who is our Chief Executive Officer, uses Segment EBITDA as the key measure of our segment profit or loss. We use Segment EBITDA to compare profitability among our segments and evaluate business strategies. This financial measure is included in the metrics used to determine incentive compensation for our senior management. We also consider Segment EBITDA to be a useful financial measure in evaluating our operating performance, as it provides investors, securities analysts and other interested parties with supplemental information regarding the underlying trends in our ongoing operations. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. Refer to the table on the following page for a reconciliation of net income to Segment EBITDA.
      The following unaudited table reconciles Net Income to Segment EBITDA:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions)   2024       2023       2024       2023   Net income $ 186     $ 282     $ 344     $ 552   Less: net income attributable to noncontrolling interest   1       1       1       1   Net income attributable to LKQ stockholders   185       281       343       551   Adjustments:               Depreciation and amortization   100       70       200       135   Interest expense, net of interest income   62       42       123       75   Loss on debt extinguishment   —       —       —       1   Provision for income taxes   82       109       153       203   Equity in earnings of unconsolidated subsidiaries   (2 )     (2 )     —       (5 ) Gains on foreign exchange contracts - acquisition related (1)   —       (23 )     —       (46 ) Equity investment fair value adjustments   2       —       2       1   Restructuring and transaction related expenses   49       8       79       26   Restructuring expenses - cost of goods sold   6       —       14       —   Segment EBITDA $ 484     $ 485     $ 914     $ 941                   Net income attributable to LKQ stockholders as a percentage of revenue   5.0 %     8.1 %     4.6 %     8.1 % Segment EBITDA as a percentage of revenue   13.0 %     14.1 %     12.3 %     13.8 % (1) Related to the Uni-Select acquisition.
      We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. See paragraph under the previous table (revenue and Segment EBITDA by reportable segment) for details on the calculation of Segment EBITDA.
      Segment EBITDA should not be construed as an alternative to operating income, net income or net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report Segment EBITDA information calculate Segment EBITDA in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for performance relative to other companies.
      The following unaudited table reconciles Net Income and Diluted Earnings per Share to Adjusted Net Income and Adjusted Diluted Earnings per Share, respectively:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions, except per share data)   2024       2023       2024       2023   Net income $ 186     $ 282     $ 344     $ 552   Less: net income attributable to noncontrolling interest   1       1       1       1   Net income attributable to LKQ stockholders   185       281       343       551   Adjustments:               Amortization of acquired intangibles   36       15       73       30   Restructuring and transaction related expenses   49       8       79       26   Restructuring expenses - cost of goods sold   6       —       14       —   Loss on debt extinguishment   —       —       —       1   Pre-acquisition interest expense, net of interest income (1)   —       9       —       12   Gains on foreign exchange contracts - acquisition related (1)   —       (23 )     —       (46 ) Excess tax benefit from stock-based payments   —       —       (1 )     (2 ) Tax effect of adjustments   (15 )     1       (27 )     (2 ) Adjusted net income (2) $ 261     $ 291     $ 481     $ 570                   Weighted average diluted common shares outstanding   265.6       268.2       266.7       268.3                   Diluted earnings per share:               Reported (2) $ 0.70     $ 1.05     $ 1.29     $ 2.06   Adjusted (2) $ 0.98     $ 1.09     $ 1.80     $ 2.12   (1) Related to the Uni-Select acquisition.
      (2) Figures are for continuing operations attributable to LKQ stockholders.
      We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business across reporting periods and in analyzing our historical operating results. We define Adjusted Net Income and Adjusted Diluted Earnings per Share as Net Income and Diluted Earnings per Share adjusted to eliminate the impact of net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, restructuring and transaction related expenses, amortization expense related to all acquired intangible assets, gains and losses on debt extinguishment, changes in fair value of contingent consideration liabilities, other gains and losses related to acquisitions, equity method investments, or divestitures, impairment charges, direct impacts of the Ukraine/Russia conflict, interest and financing costs related to the Uni-Select transaction prior to closing, excess tax benefits and deficiencies from stock-based payments and any tax effect of these adjustments. The tax effect of these adjustments is calculated using the effective tax rate for the applicable period or for certain discrete items the specific tax expense or benefit for the adjustment. Given the variability and volatility of the amount of related transactions in a particular period, management believes that these costs are not core operating expenses and should be adjusted in our calculation of Adjusted Net Income. Our adjustment of the amortization of all acquisition-related intangible assets does not exclude the amortization of other assets, which represents expense that is directly attributable to ongoing operations. Management believes that the adjustment relating to amortization of acquisition-related intangible assets supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. The acquired intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. These financial measures are used by management in its decision making and overall evaluation of our operating performance and are included in the metrics used to determine incentive compensation for our senior management. Adjusted Net Income and Adjusted Diluted Earnings per Share should not be construed as alternatives to Net Income or Diluted Earnings per Share as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report measures similar to Adjusted Net Income and Adjusted Diluted Earnings per Share calculate such measures in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.
      The following unaudited table reconciles Forecasted Net Income and Diluted Earnings per Share to Forecasted Adjusted Net Income and Adjusted Diluted Earnings per Share, respectively:
        Forecasted   Fiscal Year 2024 (In millions, except per share data) Minimum Outlook   Maximum Outlook Net income (1) $ 719     $ 772   Adjustments:       Amortization of acquired intangibles   144       144   Restructuring and transaction related expenses   122       122   Tax effect of adjustments   (56 )     (56 ) Adjusted net income (1) $ 929     $ 982           Weighted average diluted common shares outstanding   265.5       265.5           Diluted earnings per share:       Reported (1) $ 2.71     $ 2.91   Adjusted (1) $ 3.50     $ 3.70   (1) Actuals and outlook figures are for continuing operations attributable to LKQ stockholders.
      We have presented forecasted Adjusted Net Income and forecasted Adjusted Diluted Earnings per Share in our financial outlook. Refer to the discussion of Adjusted Net Income and Adjusted Diluted Earnings per Share for details on the calculation of these non-GAAP financial measures. In the calculation of forecasted Adjusted Net Income and forecasted Adjusted Diluted Earnings per Share, we included estimates of net income, amortization of acquired intangibles for the full fiscal year 2024, restructuring expenses under previously announced plans, and the related tax effect; we included for all other components the amounts incurred through June 30, 2024.
      The following unaudited tables reconciles Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions) 2024   2023   2024   2023 Net cash provided by operating activities $ 213   $ 480   $ 466   $ 703 Less: purchases of property, plant and equipment   80     66     146     136 Free cash flow $ 133   $ 414   $ 320   $ 567  
        Three Months Ended June 30,   Six Months Ended June 30, (In millions) 2024     2023     2024     2023   Net income $ 186   $ 282     $ 344   $ 552   Less: net income attributable to noncontrolling interest   1     1       1     1   Net income attributable to LKQ stockholders   185     281       343     551   Adjustments:               Depreciation and amortization   100     70       200     135   Interest expense, net of interest income   62     42       123     75   Loss on debt extinguishment   —     —       —     1   Provision for income taxes   82     109       153     203   Gains on foreign exchange contracts - acquisition related (1)   —     (23 )     —     (46 ) Adjusted EBITDA $ 429   $ 479     $ 819   $ 919   (1) Related to the Uni-Select acquisition.
      We have presented free cash flow solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our liquidity. We calculate free cash flow as net cash provided by operating activities, less purchases of property, plant and equipment. We believe free cash flow provides insight into our liquidity and provides useful information to management and investors concerning our cash flow available to meet future debt service obligations and working capital requirements, make strategic acquisitions, pay dividends and repurchase stock. We believe free cash flow is used by investors, securities analysts and other interested parties in evaluating the liquidity of other companies, many of which present free cash flow when reporting their results. This financial measure is included in the metrics used to determine incentive compensation for our senior management. Free cash flow should not be construed as an alternative to net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report free cash flow information calculate free cash flow in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for liquidity relative to other companies.
      We also evaluate our free cash flow by measuring the conversion of Adjusted EBITDA into free cash flow. For the denominator of our conversion ratio, we calculate Adjusted EBITDA as Net Income excluding net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, depreciation, amortization, interest, gains and losses on debt extinguishment, income tax expense, gains and losses on the disposal of businesses, and other unusual income and expense items that affect investing or financing cash flows. We exclude gains and losses on the disposal of businesses as the proceeds are included in investing cash flows, which is outside of free cash flow. Adjusted EBITDA should not be construed as an alternative to operating income, net income or net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report Adjusted EBITDA information calculate Adjusted EBITDA in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for performance relative to other companies.
      The following unaudited table reconciles Forecasted Net Cash Provided by Operating Activities to Forecasted Free Cash Flow:
        Forecasted   Fiscal Year 2024 (In millions) Outlook Net cash provided by operating activities $ 1,200 Less: purchases of property, plant and equipment   350 Free cash flow $ 850 We have presented forecasted free cash flow in our financial outlook. Refer to the paragraph above for details on the calculation of free cash flow.

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    • By OReilly Auto Parts
      SPRINGFIELD, Mo., July 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its second quarter ended June 30, 2024.
      Second quarter comparable store sales growth of 2.3% 7% increase in year-to-date earnings per share to $19.75 $1.7 billion net cash provided by operating activities year-to-date SPRINGFIELD, Mo., July 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its second quarter ended June 30, 2024.
      2nd Quarter Financial Results 
      Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to providing excellent customer service and taking care of our customers every day. Our comparable store sales results were below our expectations for the second quarter, as the soft demand environment we experienced at the beginning of the quarter persisted through May. Sales trends improved in June, in line with our expectations, aided by strong performance in summer weather-related categories in many of our markets. Against this challenging backdrop, our Team generated a second quarter comparable store sales increase of 2.3%, on top of a 9.0% increase last year, driven by solid, mid-single digit growth in our professional business. Our Team of Professional Parts People continues to be relentlessly focused on delivering unsurpassed levels of service to our customers, while also prudently managing expenses.”
      Sales for the second quarter ended June 30, 2024, increased $203 million, or 5%, to $4.27 billion from $4.07 billion for the same period one year ago. Gross profit for the second quarter increased 4% to $2.17 billion (or 50.7% of sales) from $2.09 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 6% to $1.30 billion (or 30.5% of sales) from $1.23 billion (or 30.3% of sales) for the same period one year ago. Operating income for the second quarter increased 1% to $863 million (or 20.2% of sales) from $854 million (or 21.0% of sales) for the same period one year ago.
      Net income for the second quarter ended June 30, 2024, decreased $5 million, or 1%, to $623 million (or 14.6% of sales) from $627 million (or 15.4% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 3% to $10.55 on 59 million shares versus $10.22 on 61 million shares for the same period one year ago.
      Year-to-Date Financial Results 
      Mr. Beckham concluded, “Based on our results so far this year, we are updating our full-year comparable store sales guidance from a range of 3.0% to 5.0% to a range of 2.0% to 4.0%. Despite the challenges we have seen in the demand environment in the first half of 2024, we believe our industry’s long-term drivers for demand remain strong. More importantly, we remain confident in our Team’s ability to grow market share by continuously providing exceptional service, supported by best-in-class inventory availability. We continue to be pleased with our new store performance and our Team’s ability to further grow share with expansion in both new and existing markets. During the first half of 2024, we opened 64 new stores in the U.S. and Mexico, and we continue to expect to hit our target of 190 to 200 net, new store openings this year.”
      Sales for the first six months of 2024 increased $472 million, or 6%, to $8.25 billion from $7.78 billion for the same period one year ago. Gross profit for the first six months of 2024 increased 6% to $4.20 billion (or 50.9% of sales) from $3.98 billion (or 51.1% of sales) for the same period one year ago. SG&A for the first six months of 2024 increased 7% to $2.59 billion (or 31.4% of sales) from $2.41 billion (or 30.9% of sales) for the same period one year ago. Operating income for the first six months of 2024 increased 3% to $1.62 billion (or 19.6% of sales) from $1.57 billion (or 20.2% of sales) for the same period one year ago.
      Net income for the first six months of 2024 increased $26 million, or 2%, to $1.17 billion (or 14.2% of sales) from $1.14 billion (or 14.7% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2024 increased 7% to $19.75 on 59 million shares versus $18.49 on 62 million shares for the same period one year ago.
      2nd Quarter Comparable Store Sales Results 
      Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day in the six months ended June 30, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 2.3% for the second quarter ended June 30, 2024, on top of 9.0% for the same period one year ago. Comparable store sales increased 2.8% for the six months ended June 30, 2024, on top of 9.8% for the same period one year ago.
      Share Repurchase Program 
      During the second quarter ended June 30, 2024, the Company repurchased 0.8 million shares of its common stock, at an average price per share of $1,012.14, for a total investment of $794 million. During the first six months of 2024, the Company repurchased 1.0 million shares of its common stock, at an average price per share of $1,016.43, for a total investment of $1.06 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $10.6 million for the six months ended June 30, 2024. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 0.2 million shares of its common stock, at an average price per share of $1,036.84, for a total investment of $224 million. The Company has repurchased a total of 95.3 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $256.59, for a total aggregate investment of $24.47 billion. As of the date of this release, the Company had approximately $1.28 billion remaining under its current share repurchase authorization.
      Updated Full-Year 2024 Guidance 
      The table below outlines the Company’s updated guidance for selected full-year 2024 financial data:
            For the Year Ending   December 31, 2024 Net, new store openings 190 to 200 Comparable store sales 2.0% to 4.0% Total revenue $16.6 billion to $16.9 billion Gross profit as a percentage of sales 51.0% to 51.5% Operating income as a percentage of sales 19.6% to 20.1% Effective income tax rate 22.4% Diluted earnings per share (1) $40.75 to $41.25 Net cash provided by operating activities $2.7 billion to $3.1 billion Capital expenditures $900 million to $1.0 billion Free cash flow (2) $1.8 billion to $2.1 billion     As previously announced, the Company completed the acquisition of Groupe Del Vasto in Canada (“Vast Auto”) in January of 2024, and the results of Vast Auto’s operations have been included in the Company’s consolidated financial statements since the acquisition date. The above updated consolidated guidance for selected full-year 2024 financial data includes expected impacts from Vast Auto’s operations, including an updated estimate of 30 basis points of dilution to gross profit as a percentage of sales but an unchanged estimate of 15 basis points of dilution to operating income as a percentage of sales for the full-year 2024.
      (1)  Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
      (2)  Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:
          For the Year Ending (in millions)   December 31, 2024 Net cash provided by operating activities   $ 2,715   to   $ 3,125 Less: Capital expenditures     900   to     1,000   Excess tax benefit from share-based compensation payments     15   to     25 Free cash flow   $ 1,800   to   $ 2,100                   Non-GAAP Information
      This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
      Earnings Conference Call Information
      The Company will host a conference call on Thursday, July 25, 2024, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at  link hidden, please login to view by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 298734. A replay of the conference call will be available on the Company’s website through Thursday, July 24, 2025.
      About O’Reilly Automotive, Inc.
      O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at  link hidden, please login to view for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of June 30, 2024, the Company operated 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
      Forward-Looking Statements
      The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
      For further information contact: Investor Relations Contacts   Mark Merz (417) 829-5878   Eric Bird (417) 868-4259       Media Contact   Sonya Cox (417) 829-5709      
      O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED BALANCE SHEETS
      (In thousands, except share data)                         June 30, 2024   June 30, 2023   December 31, 2023        (Unaudited)      (Unaudited)      (Note) Assets                   Current assets:                   Cash and cash equivalents   $ 145,042     $ 57,880     $ 279,132   Accounts receivable, net     475,596       374,714       375,049   Amounts receivable from suppliers     144,303       138,666       140,443   Inventory     4,788,686       4,626,410       4,658,367   Other current assets     125,861       113,597       105,311   Total current assets     5,679,488       5,311,267       5,558,302                       Property and equipment, at cost     8,730,297       7,872,672       8,312,367   Less: accumulated depreciation and amortization     3,434,610       3,170,474       3,275,387   Net property and equipment     5,295,687       4,702,198       5,036,980                       Operating lease, right-of-use assets     2,240,314       2,185,196       2,200,554   Goodwill     1,000,074       897,128       897,696   Other assets, net     177,619       180,834       179,463   Total assets   $ 14,393,182     $ 13,276,623     $ 13,872,995                       Liabilities and shareholders’ deficit                   Current liabilities:                   Accounts payable   $ 6,226,238     $ 6,219,838     $ 6,091,700   Self-insurance reserves     125,859       131,781       128,548   Accrued payroll     143,194       127,333       138,122   Accrued benefits and withholdings     186,715       150,453       174,650   Income taxes payable     89,344       233,507       7,860   Current portion of operating lease liabilities     401,713       380,618       389,536   Other current liabilities     950,145       450,169       730,937   Total current liabilities     8,123,208       7,693,699       7,661,353                       Long-term debt     5,397,774       4,873,702       5,570,125   Operating lease liabilities, less current portion     1,912,036       1,870,392       1,881,344   Deferred income taxes     335,600       260,642       295,471   Other liabilities     207,956       205,661       203,980                       Shareholders’ equity (deficit):                   Common stock, $0.01 par value:                   Authorized shares – 245,000,000                   Issued and outstanding shares –                   58,238,711 as of June 30, 2024, and                   60,402,359 as of June 30, 2023, and                   59,072,792 as of December 31, 2023     582       604       591   Additional paid-in capital     1,415,799       1,330,270       1,352,275   Retained deficit     (3,008,665 )     (2,994,418 )     (3,131,532 ) Accumulated other comprehensive income     8,892       36,071       39,388   Total shareholders’ deficit     (1,583,392 )     (1,627,473 )     (1,739,278 )                     Total liabilities and shareholders’ deficit   $ 14,393,182     $ 13,276,623     $ 13,872,995   Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
        O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
      (Unaudited)
      (In thousands, except per share data)                               For the Three Months Ended   For the Six Months Ended     June 30,    June 30,         2024        2023        2024        2023   Sales   $ 4,272,201     $ 4,068,991     $ 8,248,441     $ 7,776,855   Cost of goods sold, including warehouse and distribution expenses     2,104,141       1,982,409       4,046,209       3,799,944   Gross profit     2,168,060       2,086,582       4,202,232       3,976,911                             Selling, general and administrative expenses     1,304,762       1,232,809       2,586,453       2,406,493   Operating income     863,298       853,773       1,615,779       1,570,418                             Other income (expense):                             Interest expense     (54,831 )     (49,587 )     (111,979 )     (94,159 ) Interest income     1,528       760       3,184       1,628   Other, net     1,561       4,186       4,962       8,665   Total other expense     (51,742 )     (44,641 )     (103,833 )     (83,866 )                           Income before income taxes     811,556       809,132       1,511,946       1,486,552   Provision for income taxes     188,708       181,767       341,860       342,302   Net income   $ 622,848     $ 627,365     $ 1,170,086     $ 1,144,250                             Earnings per share-basic:                             Earnings per share   $ 10.61     $ 10.32     $ 19.88     $ 18.66   Weighted-average common shares outstanding – basic     58,679       60,817       58,849       61,324                             Earnings per share-assuming dilution:                             Earnings per share   $ 10.55     $ 10.22     $ 19.75     $ 18.49   Weighted-average common shares outstanding – assuming dilution     59,044       61,366       59,250       61,878    
        O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
      (Unaudited)
      (In thousands)                   For the Six Months Ended     June 30,         2024        2023   Operating activities:               Net income   $ 1,170,086     $ 1,144,250   Adjustments to reconcile net income to net cash provided by operating activities:               Depreciation and amortization of property, equipment and intangibles     222,885       191,673   Amortization of debt discount and issuance costs     3,201       2,431   Deferred income taxes     18,175       13,507   Share-based compensation programs     14,229       14,571   Other     5,215       75   Changes in operating assets and liabilities:               Accounts receivable     (79,475 )     (31,443 ) Inventory     (85,137 )     (257,337 ) Accounts payable     117,582       335,299   Income taxes payable     81,228       261,208   Other     185,085       (22,865 ) Net cash provided by operating activities     1,653,074       1,651,369                 Investing activities:               Purchases of property and equipment     (474,607 )     (460,942 ) Proceeds from sale of property and equipment     7,528       7,056   Investment in tax credit equity investments     —       (4,149 ) Other, including acquisitions, net of cash acquired     (155,376 )     (1,971 ) Net cash used in investing activities     (622,455 )     (460,006 )               Financing activities:               Proceeds from borrowings on revolving credit facility     30,000       2,776,000   Payments on revolving credit facility     (30,000 )     (1,976,000 ) Net payments of commercial paper     (173,500 )     —   Principal payments on long-term debt     —       (300,000 ) Payment of debt issuance costs     —       (24 ) Repurchases of common stock     (1,063,791 )     (1,791,451 ) Net proceeds from issuance of common stock     73,790       48,680   Other     (569 )     (354 ) Net cash used in financing activities     (1,164,070 )     (1,243,149 )               Effect of exchange rate changes on cash     (639 )     1,083   Net decrease in cash and cash equivalents     (134,090 )     (50,703 ) Cash and cash equivalents at beginning of the period     279,132       108,583   Cash and cash equivalents at end of the period   $ 145,042     $ 57,880                 Supplemental disclosures of cash flow information:               Income taxes paid   $ 80,401     $ 65,361   Interest paid, net of capitalized interest     110,449       88,924    
        O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
      SELECTED FINANCIAL INFORMATION
      (Unaudited)                     For the Twelve Months Ended     June 30,  Adjusted Debt to EBITDAR:      2024      2023 (In thousands, except adjusted debt to EBITDAR ratio)               GAAP debt   $ 5,397,774   $ 4,873,702 Add: Letters of credit     137,501     111,428   Unamortized discount and debt issuance costs     27,226     26,298   Six-times rent expense     2,625,438     2,455,938 Adjusted debt   $ 8,187,939   $ 7,467,366               GAAP net income   $ 2,372,417   $ 2,258,260 Add: Interest expense     219,488     179,654   Provision for income taxes     657,727     636,388   Depreciation and amortization     440,273     381,561   Share-based compensation expense     27,169     28,327   Rent expense (i)     437,573     409,323 EBITDAR   $ 4,154,647   $ 3,893,513               Adjusted debt to EBITDAR     1.97     1.92 (i)   The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2024 and 2023 (in thousands):
          For the Twelve Months Ended     June 30,      2024   2023 Total lease cost, per ASC 842      $ 520,327   $ 485,805 Less: Variable non-contract operating lease components, related to property taxes and insurance     82,754     76,482 Rent expense   $ 437,573   $ 409,323  
          June 30,         2024   2023 Selected Balance Sheet Ratios:                   Inventory turnover (1)     1.7     1.7 Average inventory per store (in thousands) (2)   $ 767   $ 762 Accounts payable to inventory (3)     130.0%     134.4%  
            For the Three Months Ended   For the Six Months Ended       June 30,    June 30,           2024      2023      2024      2023 Reconciliation of Free Cash Flow (in thousands):                             Net cash provided by operating activities   $ 948,859   $ 937,605   $ 1,653,074   $ 1,651,369 Less: Capital expenditures     225,367     237,674     474,607     460,942   Excess tax benefit from share-based compensation payments     5,258     14,612     21,378     18,990   Investment in tax credit equity investments     —     4,149     —     4,149 Free cash flow   $ 718,234   $ 681,170   $ 1,157,089   $ 1,167,288  
          For the Three Months Ended   For the Six Months Ended     June 30,    June 30,         2024      2023      2024      2023 Revenue Disaggregation (in thousands):                       Sales to do-it-yourself customers $ 2,149,044   $ 2,130,002   $ 4,151,030   $ 4,048,469 Sales to professional service provider customers     1,999,704     1,853,364     3,869,444     3,565,328 Other sales, sales adjustments, and sales from the acquired Vast Auto stores     123,453     85,625     227,967     163,058 Total sales   $ 4,272,201   $ 4,068,991   $ 8,248,441   $ 7,776,855  
          For the Three Months Ended   For the Six Months Ended   For the Twelve Months Ended     June 30,    June 30,    June 30,         2024      2023      2024     2023        2024        2023   Store Count:                         Beginning domestic store count   6,131   5,986   6,095   5,929     6,027     5,873   New stores opened   21   41   57   100     126     158   Stores closed   —   —   —   (2 )   (1 )   (4 ) Ending domestic store count   6,152   6,027   6,152   6,027     6,152     6,027                             Beginning Mexico store count   63   43   62   42     44     27   New stores opened   6   1   7   2     25     17   Ending Mexico store count   69   44   69   44     69     44                             Beginning Canada store count   23   —   —   —     —     —   Stores acquired   —   —   23   —     23     —   Ending Canada store count   23   —   23   —     23     —                             Total ending store count   6,244   6,071   6,244   6,071     6,244     6,071    
          For the Three Months Ended   For the Twelve Months Ended     June 30,    June 30,         2024      2023      2024      2023 Store and Team Member Information:                         Total employment     91,874     90,670              Square footage (in thousands) (4)     47,500     45,622             Sales per weighted-average square foot (4)(5)   $ 87.88   $ 88.12   $ 341.51   $ 334.21 Sales per weighted-average store (in thousands) (4)(6)   $ 677   $ 665   $ 2,613   $ 2,516 (1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. 
      (2) Calculated as inventory divided by store count at the end of the reported period. 
      (3) Calculated as accounts payable divided by inventory. 
      (4) Represents O’Reilly’s U.S. and Puerto Rico operations only. 
      (5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures. 
      (6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.

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    • Sell your car with CarBrain
    • By NAPA
      ATLANTA, July 23, 2024 /
      link hidden, please login to view/ -- Genuine Parts Company (NYSE: GPC), a leading global distributor of automotive and industrial replacement parts, announced today its results for the second quarter ended June 30, 2024. "I want to thank each of our global GPC teammates for their hard work and dedication to serving our customers," said Will Stengel, President and Chief Executive Officer. "Our quarterly results reflect softer than expected market conditions, which are tempering demand particularly in our Industrial and U.S. and European Automotive businesses. Despite a challenging macro-environment, our teams are operating well and remain focused on executing our long-term strategic initiatives."
      Second Quarter 2024 Results
      Sales were $6.0 billion, a 0.8% increase compared to $5.9 billion in the same period of the prior year. The sales result is attributable to a 2.2% benefit from acquisitions, partially offset by a 0.9% decrease in comparable sales and 0.5% unfavorable impact of foreign currency and other.
      Net income was $296 million, or $2.11 per diluted earnings per share. This compares to net income of $344 million, or $2.44 per diluted share in the prior year period.
      Adjusted net income was $342 million which excludes a net expense of $46 million of after tax adjustments, or $0.33 per diluted share, in costs related to our global restructuring initiative and the acquisition of Motor Parts and Equipment Corporation. This compares to net income of $344 million for the same three-month period of the prior year, a decrease of 0.9%. On a per share diluted basis, adjusted net income was $2.44, in-line with the same period of the prior year. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share for more information.
      Second Quarter 2024 Segment Highlights
      Automotive Parts Group ("Automotive")
      Global Automotive sales were $3.7 billion, up 2.0% from the same period in 2023, reflecting a 3.1% benefit from acquisitions, partially offset by a 0.6% decrease in comparable sales and  0.5% unfavorable impact of foreign currency and other. Segment profit of $314 million decreased 4.7%, with segment profit margin of 8.4%, down 60 basis points from last year.
      Industrial Parts Group ("Industrial")
      Industrial sales were $2.2 billion, down 1.1% from the same period in 2023, with a 0.7% benefit from acquisitions, offset by a 1.6% decrease in comparable sales and 0.2% unfavorable impact of foreign currency. Segment profit of $277 million decreased 2.3%, with segment profit margin of 12.4%, down 10 basis points from the same period of the prior year.
      Six Months 2024 Results
      Sales for the six months ended June 30, 2024 were $11.7 billion, up 0.6% from the same period in 2023. Net income for the six months was $544 million, or $3.89 per diluted share, compared to $4.58 per diluted share in the prior year period. Adjusted net income increased 0.6% to $652 million in the first half of 2024 compared to net income of $648 million in the prior year period. Adjusted diluted earnings per share was $4.66 compared to $4.58 in the prior year period, an increase of 1.7%.
      Balance Sheet, Cash Flow and Capital Allocation
      The company generated cash flow from operations of $612 million for the first six months of 2024. Net cash used in investing activities was $762 million, including $259 million for capital expenditures and $580 million for M&A. The company also used $382 million in cash for financing activities, including $272 million for quarterly dividends paid to shareholders and $75 million for stock repurchases. Free cash flow was $353 million for the first six months of 2024. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.
      The company ended the quarter with $2.0 billion of total liquidity. Total liquidity comprises of $555 million in cash and cash equivalents and $1.4 billion of our $1.5 billion revolving credit facility available after the effect of $100 million of commercial paper outstanding as of June 30, 2024.
      2024 Outlook
      The company is revising full-year 2024 guidance previously provided in its earnings release on April 18, 2024. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its guidance, which is outlined in the table below.
          For the Year Ending December 31, 2024
          Previous Outlook
        Updated Outlook
      Total sales growth
        3% to 5%
        1% to 3%
      Automotive sales growth
        2% to 4%
        1% to 3%
      Industrial sales growth
        3% to 5%
        0% to 2%
      Diluted earnings per share
        $9.05 to $9.20
        $8.55 to $8.75
      Adjusted diluted earnings per share
        $9.80 to $9.95
        $9.30 to $9.50
      Effective tax rate
        Approximately 24%
        Approximately 24%
      Net cash provided by operating activities
        $1.3 billion to $1.5 billion
        $1.3 billion to $1.5 billion
      Free cash flow
        $800 million to $1.0 billion
        $800 million to $1.0 billion
      Non-GAAP Information
      This release contains certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted earnings per share and free cash flow. We believe that the presentation of adjusted net income, adjusted diluted earnings per share and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of our core operations. We considered these metrics useful to investors because they provide greater transparency into management's view and assessment of our ongoing operating performance by removing items management believes are not representative of our operations and may distort our longer-term operating trends. For example, for the three and six months ended June 30, 2024, adjusted net income and adjusted diluted earnings per share exclude costs relating to our global restructuring initiative and acquisition of Motor Parts and Equipment Corporation, which are one-time events that do not recur in the ordinary course of our business. We believe these measures are useful and enhance the comparability of our results from period to period and with our competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with our core operations. We do not, nor do we suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. We have included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.
      Comparable Sales
      Comparable sales is a key metric that refers to period-over-period comparisons of our sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days for the period. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors in our industry, although our calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.
      Conference Call
      Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the 
      link hidden, please login to view. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 93997#, two hours after the completion of the call. About Genuine Parts Company
      Established in 1928, Genuine Parts Company is a leading global service organization specializing in the distribution of automotive and industrial replacement parts. Our Automotive Parts Group operates across the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the Netherlands, Belgium, Spain and Portugal, while our Industrial Parts Group serves customers in the U.S., Canada, Mexico and Australasia. We keep the world moving with a vast network of over 10,700 locations spanning 17 countries supported by more than 60,000 teammates. Learn more at 
      link hidden, please login to view. Forward-Looking Statements
      Some statements in this release, as well as in other materials we file with the Securities and Exchange Commission (SEC), release to the public, or make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include our view of business and economic trends for the remainder of the year, our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the revised full-year 2024 financial guidance provided above. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
      We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation, financial institution disruptions and geopolitical conflicts such as the conflict between Russia and Ukraine, the conflict in the Gaza strip and other unrest in the Middle East; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by the financial and capital markets; our ability to maintain compliance with our debt covenants; our ability to successfully integrate acquired businesses into our operations and to realize the anticipated synergies and benefits; our ability to successfully implement our business initiatives in our two business segments; slowing demand for our products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, our suppliers and customers; changes in tax policies; volatile exchange rates; our ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting, including as a result of the work from home environment; the uncertainties and costs of litigation; disruptions caused by a failure or breach of our information systems, as well as other risks and uncertainties discussed in our Annual Report on Form 10-K for 2023 and from time to time in our subsequent filings with the SEC.
      Forward-looking statements speak only as of the date they are made, and we undertake no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.

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