LKQ Corporation (NASDAQ:LKQ) Q3 2023 Earnings Conference Call October 26, 2023 8:00 AM ET

Company Participants

Joe Boutross – Vice President-Investor Relations

Nick Zarcone – President and Chief Executive Officer

Rick Galloway – Senior Vice President and Chief Financial Officer

Conference Call Participants

Bret Jordan – Jefferies

Craig Kennison – Baird

Scott Stember – MKM Partners

Gary Prestopino – Barrington Research

Brian Butler – Stifel

Daniel Imbro – Stephens

Operator

Thank you for joining the LKQ Corporation Third Quarter 2023 Earnings Call. [Operator Instructions] I’d like to go ahead and introduce our speaker today, Joe Boutross, with LKQ Corporation. Please go ahead.

Joe Boutross

Thank you, operator. Good morning, everyone, and welcome to LKQ’s third quarter 2023 earnings conference call. With us today are Nick Zarcone, LKQ’s President and Chief Executive Officer; and Rick Galloway, Senior Vice President and Chief Financial Officer. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for this call.

Now, let me quickly cover the Safe Harbor. Some of the statements that we make today may be considered forward-looking. These include statements regarding our expectations, beliefs, hopes, intentions or strategies. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. We assume no obligation to update any forward-looking statements. For more information, please refer to the risk factors discussed in our Form 10-K and subsequent reports filed with the SEC.

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today’s earnings press release and slide presentation. Hopefully, everyone has had a chance to look at our 8-K, which we filed with the SEC earlier today. And as normal, we are planning to file our 10-Q in the coming days.

And with that, I’m happy to turn the call over to our CEO, Nick Zarcone.

Nick Zarcone

Thank you, Joe. Good morning to everyone on the call, and thank you for joining us. This morning, I will provide some high-level comments related to our performance in the quarter, and then Rick will dive into the financial details and provide an overview of our updated guidance, before I come back with a few closing remarks.

The third quarter of 2023 represented some mixed results, which collectively fell short of our expectations. Wholesale North America continued to outperform, all while working on the integration of the Uni-Select acquisition. However, we experienced some unusual transitory events that, in aggregate, affected the short-term performance of our European operations. We also had continued pressure on commodities, which impacted Self Service, along with less-than-expected demand for our specialty products.