This week, LKQ Corporation (Nasdaq:LKQ) announced that its Board of Directors had authorized an increase of $500 million in its existing stock repurchase program.
According to a press release, this raises the aggregate program authorization to $2.5 billion through October 25, 2024. Since the introduction of the stock repurchase plan in October 2018, the Company has repurchased 37.3 million shares through March 31, 2022, for approximately $1.5 billion.
“The strength of the balance sheet and our expectations for continued free cash flow generation have the Company well-positioned to execute on the expanded stock repurchase program. The strong financial metrics and the expansion of this program further validate our commitment to a disciplined capital allocation strategy that balances returning capital to our stockholders and investing in the continued growth of the Company,” said Varun Laroyia, Executive Vice President and Chief Financial Officer of LKQ Corporation.
The repurchase program allows the Company to repurchase shares in the open market and through privately-negotiated transactions. The time and amount of any purchases or any repurchases of common stock will be determined by management based on its evaluation of market conditions and other factors.
The program will be carried out in accordance with SEC Rule 10b-18 and any other legal requirements. The repurchase program will not oblige the Company to purchase any particular number of shares, and it can be discontinued or suspended at any point. Stock acquired as part of this program will be held as treasury stock.
About LKQ Corporation
LKQ Corporation 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.
Featured image from LKQ Corporation