our priorities Nick, are morning Thank generation. relates performance, call. joining flow good year growth, full margin in cash key our expansion the financial and everyone to we with us fourth free of quarter Overall, profitable you, progress on as and it and to pleased revenue
pleased and task, in focus plans while priorities, implementing these to are to compensation team's incredibly XXXX. changes the solid adapted with progressive was organization our to a how Resetting large-scale the quickly we deliver formidable these changes to results
picking up With strong program XXXX and are in about our North we the Europe America position a and beyond. prospects momentum, excited LKQ X for
the highlights. let's into the start results, financial with key diving Before
generated the by The segment, to margin improved This led fourth basis not quarter for the previous year. years, prior only highest points. consolidated the in North was EBITDA by X relative segment XXX QX America basis points highest XX but which the the margin
revenue transformation or from speaks point Specialty resilience a grow the of relatively flat, and growth Europe to business. was Europe the maintain low roughly a headwind were quarter, so faced expenses. ability improved XX to margins although QX basis the
The and the have helped this focus certainly we the kick year restructuring in implemented helped productivity. start costs in programs and earlier on regard
last of couple generation, moderation operating guided we flow of cash after the fourth quarters of quarter, in expected occurred the As flows a historically high quarter. cash
to for for flows were approximately add $XXX $X million well high year finish quarter the the the operating That to said, still company. able record we cash a in billion, over
year, cautiously in original into are the $XXX tremendous over as billion million, finish of $XXX optimistic going accomplishment. but reflected We guidance million is to our to $X a
that little I across I efforts year anticipated proud want year. in be a a a team to the us to immensely has their the enterprise reality. X over making members What is of. for thank am our This taken culture journey a this LKQ was
and myself when consolidated will to the being largely amounts earnings net to refer to be and I segment Similar EPS, LKQ referring accompanying to I words diluted shareholders. please note continuing cover our to I'll operations some results. last self-explanatory, the and income attributable save that quarter, deck now from
addition, details will not I income of per covered repeat. share, so the In and Nick earnings net
increased Please presentation America. XX.X%, fourth consolidated of percentage the XX from the turn for on North XXX primarily to quarter consolidated improvement gross results. to highlights XX coming quarter-over-quarter and The with basis the points Slides margin
adjusted of the which note million COGS, little basis gross on on $X reported Please restructuring-related which restructuring, negative components, impact margin. basis a gross margin, that represents XX margin point though XXX is the costs in in up excludes There's bit impact a points. classified rounding includes
acquisition points of the as of ongoing America and Europe. million initiatives in to in expenses primarily quarter for basis transformation XX we higher a second acquisition-related expenses and XX.X, and by Overhead were increased driven North announced costs the XXXX Restructuring $XX result integration. costs
divestitures, income which fourth to variance owing gains Interest EPS. excluded average and items the balances. a the compared debt $X changes decrease losses miscellaneous these from of our well interest impairment of nearly calculation that as $XX million, as favorable was expense of quarter and million, by by note all acquisitions lower was Other in of relates to lower 'XX, charges. to favorable Please are XX% adjusted and from rates
Moving to income taxes.
annual by tax tax for which effective catch-up reflects a of finalization Our year reduction was expense rate. date the rate in caused the the XX.X%, to effective
Mekonomen, of relates XXXX. earnings $XX to of Equity and mostly which of fourth quarter income unconsolidated $X subsidiaries, the million expense million in our in versus investment reflected of
that You charge ago. will the recall we impairment year recorded on a Mekonomen a $XX million investment
Slide efforts starting in the to as points turn as highlights both glass for was segment basis and initiatives now America. year. the on Please aftermarket benefits The higher expansion than or operations, continued prior XX.X% of business. well XXX North XX reflects margin in salvage with our performance, our margin Gross
And revenue our quarter gross the precious margin. vehicle two, Two from additional revenue positive record on a took salvage favorable impact prices One, had boost to mix reached new levels, items per GM a the in highs. in the operations. providing strike drove to impact these metal
remained scrap million million of drag scrap margin. a changes Sequential of swing. million for negative $X to a year-over-year year prices quarter unfavorable prices in creating compared had gross segment Falling impact impact the a $X $X a ago, negative a on
precious metals the a quarter-over-quarter I of impact sales from self-service However, show earlier. to margin to improvement positive able due was referenced
fourth XX quarter. expenses XX.X% basis Operating points in increased to the
that referenced, in offsetting higher the than services pushed a which a previously several effect, X.X% leverage year organic there As ago. produced were positive North had but expenses growth and revenue, parts segment America factors
than revisions increase. a performance a upward accruals, required contributed bonus ago. expense basis year point compensation pushing operating incentive in year-over-year Strong XX higher First,
perfectly deterioration Second, XX a of debt variance negative impact an saw to had XXXX this wasn't to is basis of the unfavorable points. as collections of be Though expense clear, year bad high comp. a in a in QX recoveries this level and year-over-year attributable largely
facility this a as overhead of sale point gain have former a expenses XX ago gain past not a on quarter. a we in did drove increase the a Nashville Third, basis year similar
to this in basis as impact. and further due facility higher quarters, rate to a last to the renewals, point year XX continued Finally, related increases expenses creating trend few mentioned expansions
XX cost Favorably, implementation the North and quarter. second disciplined costs hiring personnel other claim the points described basis America through showed the costs, positive lower reduction leverage in in of insurance of plan
these total, out We America. In on North segment count we up EBITDA can't in fourth present both don't for the discount as like the $XXX the Closing $XX that record saw higher know I good benefit America XXX fortune. achievement prior year. quarter million million, or was metal want though undeniably GM a quarter. the pure points strike on We from events North prices or basis margin from items, be precious to high margin to every
luck. to supply. As North for the the to have the when sometimes, team credit saying North opportunities, operators serve deliver seizing deserves available disciplined disrupted team you the America market able a Being your own America old to make was goes, ready strike and quarter. GM And fantastic being the
for quarter. and the our Moving basis XX in to XX basis from margin a XX.X%, European relative the segment purchasing Slide to with benefits rebates, Benelux, was by XX. mostly margins U.K. these on XX offset the due negative Eastern down represented points to mix. XXXX. margin Outside in expenses gross and lower of in points, the European Europe higher product Italian Gross up impact Restructuring charges, segment prices the was lower operations point comparable period basis on of
decrease basis versus a operating consolidated basis quarter ago. year to expenses, respect With a European we XX a the on comparable experienced point
related program. efforts LKQ transformation there XXXX, associated the the Europe XX headwind basis QX was to a ongoing with For point X
restructuring segment. hiring across benefits European or increase basis points basis by $XXX totaled in over savings program million Personnel of favorable segment freeze and expenses points the year. XX EBITDA the were due last to XXXX XX a
sterling shown a weakened roughly the impact As transaction translation. quarter, fourth relative by parts of and headwind was euro to pound effect gains causing on flat, X% with on a $X.XX from the translation. the number quarter of the XX, negative though Overall, for Slide dollar, the roughly the EPS there 'XX, was losses equal coming adjusted against from
On for point was X. the EBITDA on EBITDA basis segment basis clear, XX year compared last transformation to basis, XX for period to same figure up a I referenced points expenses LKQ X. a the and points includes was to we X% earlier. transformation full owing year within Segment X of headwind call. XX costs And be Europe this XX, communicated the range September X%, the the includes year. basis quarter,
margin including to the by in gross a adjustments points of from mix, specialty The rebate XX. sales, revenue and shipment segment to basis timing XXX from QX impacts due drop Turning sales percentage on for accruals. Slide declined equal in customer decrease
reductions On more personnel improved to in million, as XX the expenses than other was revenue specialty basis freight operating hand, vehicle of XX X.X%. offsetting with expenses. down Segment basis EBITDA and percentage and points higher by for $XX points costs a was
the fourth the in decrease quarter, to operating continues the take was the control year-over-year evidenced decline dollars. in team specialty With costs, revenue by of expense backdrop a as to action
and sheet. move the to on Let's liquidity balance
for of note an outflow $XXX cash $XX XX% billion and inflow XXXX million that As on is higher a generated compared million our receivables, trade XX, payables, the roughly a capital inventory Slide year XXXX. cash that key year accounts, flow was to working $X.X for of or The ago. presented than you'll operating
working this conditions payment our teams partners and with applying did improve to approach in vendor terms. disciplined to purchasing by work driving a inventory and soft Our trading great improvement
into cash than million To flow CapEx free year-over-year over flow higher XXXX of $XXX $XXX cash in a this CapEx. XXXX for flow prior cash was our the increase a was resulting perspective, in operating put our free million, year the year. despite increase XX% million, $XX
convert of discussed and As we level basis. we cash sustainable on the our the a of what last flows to can time, efficiency analyzing [ph] earnings cash
free place flow we slide cash half Looking the based at positive a year second this EBITDA in in you in programs XX, the conversion put ratio the can to see XXXX. of on trend
year to at this over expect do the strides is ratio closer conversion, not to XXXX where believe There XXXX. percentages to we can in growth further to this significant operate though the repeat long move we made same We our we improve rate term. opportunity
use In dollar our million our and $XXX concluded hand cash due line on liquidity. quarters was four cost allocation and structure, with in US redeeming and capital lower revolver XXXX our best judiciousness of on capital ongoing three bonds debt we using that the
generated our redemption was fourth credit cash funds by The facility. quarter the remaining the with million used pay provided $XXX costs approximately bond to of the during
exercise Additionally, with to line America we took commitment area. national our in opportunity term a purchase North the the to on option our long headquarters
believe to We in continue is sheet to that objectives. our position balance our good support business
billion. number to moving December, million $XXX net XX, on hand, we as Slide about of finally, resulting of the cash of of And debt had XXst $X.X in
Our level able remained but XXXX. times, progress of leverage X.X be we’ll in with the at the good decrease times net ratio of represents from X.X still XXXX. again believe debt. We the stat December to third rate quarter as
Now, annual is that guidance tax at current exchange to detail that like note guidance and I Please our prices and assumes XX.X%. the effective levels, hold the XXXX. rate rates annual scrap for foreign would
United exit wars coronavirus Union, the Kingdom's in material assumes guidance the Additionally, escalation disruptions with trade outbreak European the from the or associated no tariffs. any or
poised its strong North America to believe performance into XXXX. is carry We
initiatives We take program economic restructuring hold with face challenging expect LKQ the continue though Europe that should benefits. and conditions, to further and various some will Europe the produce X
structure the Specialty is the recent cost streams the weakness actively its focused expectation. seeking revenue in interim to right remain for new will combat revenue on sizing and
have We organic services points. XXX revenue XX at points set basis and parts basis growth to
organic organic in exiting leap will have note please growth low here year. hold approximately North points that of XXXX. full headwind contract the quarter, basis on battery the the basis and on day for FCA approximately an we'll a with in and extra first America XX that we'll selling margin XX global Please the be note points that Also,
is adjusted $X.XX to EPS diluted range to Diluted of while $X.XX of EPS a basis range is on cents. a $X.XX GAAP $X.XX a
We are growth projecting especially solid Europe. improvement in from a business margin efforts,
As in expect base digit a but the to drive take to to X.X%. of segment a Europe in for a will in we stretch, double a remain our range. within we discussed September, range the by of range margins confident be to producing Starting EBITDA end margin XXXX, from the our last the step in finish forward X.X% X.X% high ability
we expense Additionally, benefit down. debt to with the interest should year lower full owing pay ongoing
$X a The growth flows par range operations Cash We of the my operating meaning enhancements reached capital mind expectations, from XX%. count midpoint to level. of X,XXX billion XXXX from working flows reflect on significant we in approximately mark that same cash billion. our the flow our our XXXX ahead guidance each can't Keep is that benefited years at repeat figure. in few with was on roughly year a we actual cash of
And capital can the the capital a We operating working range million, the management of focus flows in implementation and $XXX finally, on continued level with spending modest the increase vendor is trade believe at $XXX we from finance cash year Europe. a of million sustain current to of new level. elevated program set
Europe by that disciplined through need finally, so America, strong quarter a result, And softness was the remain LKQ We we we resiliency future control us in Overall, low optimistic for the and model about quarter positioned the be on Europe to fourth Specialty. North that future. of with growth and reinforced project believe summary, increased programs success. some the our has manage in overall periods. to in solid our and restructuring cost fourth the prospects l offsetting performance The focused for productivity
back the closing that, for Nick With call turn I'll to remarks. now
