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    LKQ Corp (LKQ)

    Board Change

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    LKQ Corporation is a global distributor specializing in vehicle products, including replacement parts, components, and systems for vehicle repair and maintenance, as well as specialty aftermarket products and accessories that enhance vehicle performance, functionality, and appearance . The company operates through four main segments: Wholesale - North America, Europe, Specialty, and Self Service . LKQ Corporation sells vehicle products such as replacement parts and specialty products, and offers services including warranties, self-service yard fees, and diagnostic and repair services .

    1. Europe - Offers alternative vehicle replacement and maintenance products across various European countries.
    2. Wholesale - North America - Provides alternative vehicle collision replacement products, paint, and related products, and alternative vehicle mechanical replacement products in the United States and Canada.
    3. Specialty - Distributes specialty vehicle aftermarket equipment and accessories in the U.S. and Canada.
    4. Self Service - Operates retail facilities across the U.S. that sell recycled automotive products from end-of-life vehicles.
    NamePositionStart DateShort Bio
    Dominick ZarconeExecutive AdvisorJuly 1, 2024Dominick Zarcone became the President and CEO of LKQ in May 2017. He previously served as EVP and CFO from March 2015 to May 2017. He will retire as President and CEO on June 30, 2024, and transition to Executive Advisor from July 1, 2024, through December 31, 2024 .
    Michael T. BrooksSenior Vice President and Chief Information OfficerFebruary 2020Michael T. Brooks joined LKQ as SVP and CIO in February 2020. He previously held senior management positions at GATX Corporation and Constellation NewEnergy .
    Michael S. ClarkVice President – Finance and ControllerFebruary 2011Michael S. Clark has been VP – Finance and Controller at LKQ since February 2011. He was previously Assistant Controller from May 2008 and SEC Reporting Manager at FMC Technologies, Inc. .
    Genevieve L. DombrowskiSenior Vice President - Human ResourcesMarch 2021Genevieve L. Dombrowski became SVP of Human Resources at LKQ in March 2021. She held various leadership positions at Republic Services and Aramark before joining LKQ .
    Rick GallowaySenior Vice President and Chief Financial OfficerSeptember 2022Rick Galloway became SVP and CFO of LKQ in September 2022. He was previously CFO of LKQ's Wholesale - North America and Self Service segments and held various positions at Alcoa Corporation .
    Andy HamiltonSenior Vice President & President and Managing Director of LKQ EuropeJanuary 2024Andy Hamilton became SVP and President and Managing Director of LKQ Europe in January 2024. He joined Euro Car Parts in 2010, which was acquired by LKQ in 2011, and held several executive roles including CEO of LKQ Euro Car Parts .
    Walter P. HanleySenior Vice President - DevelopmentDecember 2005Walter P. Hanley joined LKQ in December 2002 as VP of Development, Associate General Counsel, and Assistant Secretary. He became SVP of Development in December 2005 .
    Justin L. JudePresident and Chief Executive OfficerJuly 1, 2024Justin L. Jude became President and CEO of LKQ on July 1, 2024. He has been with LKQ since February 2004, serving in various roles including EVP and COO starting in January 2024 .
    Matthew J. McKaySenior Vice President, General Counsel, and Corporate SecretaryMarch 2021Matthew J. McKay became SVP, General Counsel, and Corporate Secretary of LKQ in March 2021. He previously served as SVP of Human Resources and Associate General Counsel .
    John R. MeyneSenior Vice President & President of Wholesale - North AmericaJanuary 2024John R. Meyne became SVP and President of Wholesale - North America in January 2024. He has been with LKQ since 2009, following the acquisition of his aftermarket collision parts company .
    Todd G. CunninghamVice President, Finance and ControllerMay 1, 2024Todd G. Cunningham serves as VP, Finance and Controller at LKQ Corporation, appointed on May 1, 2024 .
    1. Given the continued softness in organic revenue in North America and Specialty, and with top-line headwinds expected to linger into 2025 , can you elaborate on the specific strategies you have in place to mitigate these declines and how confident are you that these initiatives will offset the revenue pressures?
    2. You mentioned that the SKU rationalization in Europe is only 50% complete and won't be finished until early 2025, with benefits starting to show in the back half of 2025 ; considering the current economic slowdown in the U.K. and Germany , what measures are you taking to expedite this process to improve profitability sooner?
    3. With the recent sale of your Poland and Bosnia operations and indications of other potential divestitures , are there additional underperforming businesses in your portfolio, and how do these divestitures align with your long-term strategic vision for Europe?
    4. The hurricanes Helene and Milton forced significant closures of your locations in the Southeast and Florida, impacting revenue ; how have these disruptions affected your Q3 results, and what is your outlook for recovery in these regions amidst potential future climate-related challenges?
    5. In Europe, you cited increased competition and economic slowdowns in key markets like the U.K., Germany, and Benelux ; how are you positioning LKQ to navigate these headwinds, and what are your expectations for market share and profitability in these regions going forward?
    Program DetailsProgram 1
    Approval DateOctober 22, 2024
    End Date/DurationOctober 25, 2026
    Total additional amount$1,000 million
    Remaining authorization$796 million as of September 30, 2024
    DetailsThe program allows LKQ to purchase its common stock from time to time, with the amount and timing of repurchases depending on market conditions and corporate needs. The program does not obligate the company to acquire any specific number of shares and may be suspended or discontinued at any time.
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$17Short-Term DebtNot Specified0.4% = (17 / 4,371) * 100
    2024$552Euro Notes (Repaid in 2024)3.8812.6% = (552 / 4,371) * 100
    2025$38Term Loan PayableNot Specified0.9% = (38 / 4,371) * 100
    2026$1,042Term Loan Payable6.32 / 5.9223.8% = (1,042 / 4,371) * 100
    2028$1,801Revolving Credit Facilities, U.S. Notes, Euro Notes6.33 / 5.75 / 4.1341.2% = (1,801 / 4,371) * 100
    2031$835Euro Notes4.1319.1% = (835 / 4,371) * 100
    2033$600U.S. Notes6.2513.7% = (600 / 4,371) * 100
    Various$127Notes Payable, Finance Leases, Other Debt3.34 / 5.09 / 6.382.9% = (127 / 4,371) * 100

    Competitors mentioned in the company's latest 10K filing.

    • OEMs: Compete primarily on price and, to a lesser extent, on service and quality. They exert pricing pressure in the marketplace and have engaged in efforts to increase market share and restrict consumer choice .
    • Alternative parts suppliers: Compete on distribution network, efficient inventory management systems, and proprietary technology .
    • Recycling businesses, refurbishing operations, parts remanufacturers, and internet-based suppliers: Considered competitors in the vehicle collision and mechanical products market .
    • Local owner-operated companies, larger regional suppliers, national and international providers, and internet-based suppliers and distributors: Serve the vehicle replacement products industry and vehicle accessory parts industry .
    • Warehouse distributors and mail order catalog businesses: Deliver products to market and are considered competitors in the specialty vehicle aftermarket equipment and accessories market .
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP1998 PresentCurrent auditor

    Recent developments and announcements about LKQ.

    Corporate Leadership

      Leadership Change

      ·
      Dec 12, 2024, 9:51 AM

      Dominick Zarcone is leaving LKQ Corporation as he has decided not to stand for re-election and will retire from the Board when his term expires in connection with the Company’s 2025 Annual Meeting . James S. Metcalf is stepping up as a new independent director, effective December 11, 2024, as part of the Board’s ongoing refreshment process .

      Board Change

      ·
      Dec 12, 2024, 9:51 AM

      James S. Metcalf has been appointed to the LKQ Corporation Board of Directors as a new independent director, effective December 11, 2024. Additionally, Dominick Zarcone has decided not to stand for re-election and will retire from the Board when his term expires in connection with the Company’s 2025 Annual Meeting .