LKQ Corporation Announces $1 Billion Increase to its Stock Repurchase Program

Rhea-AI Summary

LKQ announced a $1 billion increase to its stock repurchase program, bringing the total authorization to $4.5 billion and extending the program through October 25, 2026. Since October 2018, the company has repurchased approximately 62 million shares for $2.7 billion. The program allows for open market and private transaction purchases, with timing and amounts determined by management based on market conditions. Repurchased shares will be held as treasury stock.

Positive

• Authorization of additional $1 billion for share repurchases
• Extension of repurchase program through October 2026
• Strong track record of returning capital to shareholders ($2.7B in repurchases since 2018)
• Flexible repurchase terms allowing both open market and private transactions

Negative

• Significant cash outlay may reduce funds available for operations or strategic investments
• Program could potentially limit financial flexibility during market downturns

News Market Reaction – LKQ

-0.29%

1 alert

-0.29% News Effect

On the day this news was published, LKQ declined 0.29%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ANTIOCH, Tenn., Oct. 24, 2024 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today announced that its Board of Directors has authorized a $1 billion increase and a one-year extension to its stock repurchase program, raising the aggregate authorization under the program to $4.5 billion and authorizing repurchases through October 25, 2026. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 62 million shares of its common stock for a total of $2.7 billion through September 30, 2024.

Under the repurchase program, the Company is authorized to repurchase shares in the open market as well as in privately negotiated transactions. The timing and the amount of any repurchases of common stock will be determined by LKQ management based on its evaluation of market conditions and other factors. The repurchase program will be effected in compliance with SEC Rule 10b-18 and other applicable legal requirements. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or discontinued at any time. Stock purchased as part of this program will be held as treasury stock.

About LKQ Corporation

LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

Forward Looking Statements

Statements and information in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act.

Forward-looking statements include, but are not limited to, statements regarding our outlook, guidance, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified below. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include, among others, changes in our cash position or cash requirements for other purposes, fluctuations in the price of our common stock, general market conditions, and stockholder response to the repurchase program; and other factors discussed in our filings with the SEC, including those disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available on our investor relations website at lkqcorp.com and on the SEC website at sec.gov.

Contact:
Joseph P. Boutross
Vice President, Investor Relations
LKQ Corporation
(312) 621-2793
jpboutross@lkqcorp.com

FAQ

What is the new total authorization for LKQ's stock repurchase program?

The new total authorization for LKQ's stock repurchase program is $4.5 billion, following a $1 billion increase announced on October 24, 2024.

How many shares has LKQ repurchased since starting its buyback program?

LKQ has repurchased approximately 62 million shares of its common stock for a total of $2.7 billion through September 30, 2024.

When does LKQ's extended stock repurchase program expire?

LKQ's extended stock repurchase program is authorized through October 25, 2026.

How does LKQ execute its stock repurchase program?

LKQ can repurchase shares both in the open market and through privately negotiated transactions, with timing and amounts determined by management based on market conditions.