LKQ Corp (LKQ) 2024 Q4 法說會逐字稿

Hello everyone and welcome to LKQ Corporation's fourth-quarter and full year 2024 earnings conference call. My name is Lydia and I'll be your operator today. (Operator instructions)

大家好，歡迎參加 LKQ Corporation 2024 年第四季和全年財報電話會議。我的名字是 Lydia，今天我將擔任您的接線生。（操作員指令）

I'll now hand you over to Joe Boutross to begin. Please go ahead.

現在我將把時間交給 Joe Boutross 來開始。請繼續。

Thank you, operator. Good morning, everyone, and welcome to LKQ's fourth-quarter and full year 2024 earnings conference call. With us today are Justin Jude, LKQ's President and Chief Executive Officer; and Rick Galloway, our senior Vice President and Chief Financial Officer.

謝謝您，接線生。大家早安，歡迎參加 LKQ 2024 年第四季和全年財報電話會議。今天與我們在一起的有 LKQ 總裁兼執行長賈斯汀·裘德 (Justin Jude)；以及我們的高級副總裁兼財務長 Rick Galloway。

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.

請參閱 LKQ 網站 lkqcorp.com 以了解我們今天早上發布的收益報告以及本次電話會議的幻燈片簡報。現在讓我快速介紹一下安全港。我們今天發表的一些言論可以被視為前瞻性的。這些包括有關我們的期望、信念、希望、意圖或策略的陳述。

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-10K and subsequent reports filed with the SEC.

由於各種因素，實際事件或結果可能與前瞻性陳述中表達或暗示的結果有重大差異。我們不承擔更新任何前瞻性陳述的義務。欲了解更多信息，請參閱我們向美國證券交易委員會提交的 Form-10K 和後續報告中討論的風險因素。

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

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。今天的收益新聞稿和幻燈片簡報中包含了對帳表、GAAP 與非差距措施。希望大家都有機會看到我們今天早些時候向美國證券交易委員會提交的（聽不清楚）。和往常一樣，我們計劃在未來幾天提交 10K。

And with that, I'm happy to turn the call over to our CEO Justin Jude.

現在，我很高興將電話轉給我們的執行長賈斯汀·裘德 (Justin Jude)。

Thank you, Joe, and good morning to everyone joining us on the call. As many of you know, I took the CEO position after Nick's retirement in July of last year, and it has been and continues to be an honor to lead the LKQ team and to maintain a culture rooted in humility.

謝謝你，喬，大家早安。你們很多人都知道，去年 7 月尼克退休後，我接任了執行長一職，我一直很榮幸能夠領導 LKQ 團隊並保持以謙遜為根基的文化。

Our team leads by influence, not authority and ego. We take action, embrace change, confront failure head on, and always strive to make the right decisions for the company, our employees, our communities, and our shareholders.

我們的團隊以影響力而不是權威和自我來領導。我們採取行動，擁抱變化，面對失敗，始終努力為公司、員工、社區和股東做出正確的決策。

In 2024, we faced tough challenges. Despite financial setbacks, our team surpassed expectations and navigating the most difficult market dynamics I've seen in 30 years in the automotive industry. For that, I couldn't be prouder of our team members and the incredible culture we built.

2024年，我們面臨嚴峻的挑戰。儘管遭遇財務挫折，我們的團隊仍超出預期，並應對了汽車產業 30 年來最艱難的市場狀況。為此，我為我們的團隊成員和我們所建立的令人難以置信的文化感到無比自豪。

Before I address the fourth quarter, I would like to reflect on what LKQ accomplished in 2024. With our commitment to operational excellence and a sound balance sheet, we focused on the things we could control, and in those areas we were very pleased with our performance.

在談論第四季之前，我想回顧一下 LKQ 在 2024 年的成就。我們致力於卓越營運和健全的資產負債表，專注於我們能夠控制的事情，在這些領域，我們對我們的表現感到非常滿意。

With our goal of returning cash to shareholders, we delivered $678 million of capital with $360 million in share repurchase and $318 million coming from dividends. And their ongoing strategy to simplify the portfolio led to divesting five businesses primarily in Europe, which represented $153 million of trailing 12 month revenue with little to no margin.

我們的目標是向股東返還現金，我們提供了 6.78 億美元的資本，其中 3.6 億美元來自股票回購，3.18 億美元來自股息。他們持續簡化投資組合的策略導致剝離了五項主要位於歐洲的業務，這些業務過去 12 個月的收入為 1.53 億美元，但利潤卻很少甚至為零。

Moody's and Fitch reiterated our stable and positive outlook in 2024. Our Board of Directors continued their active and ongoing board refreshment to ensure we have the right mix of skills and experiences to provide effective oversight and guidance of the company's strategy. Our new Board Members have extensive experience in business strategy and operations, further enhancing the depth, knowledge and skill sets necessary to drive long-term value for our shareholders.

穆迪和惠譽重申我們對 2024 年穩定和積極的展望。我們的董事會繼續積極並持續進行董事會更新，以確保我們擁有正確的技能和經驗組合，從而為公司策略提供有效的監督和指導。我們的新董事會成員在商業策略和營運方面擁有豐富的經驗，進一步增強了為股東創造長期價值所需的深度、知識和技能。

The integration muscle of North America team was again validated in 2024 with the consolidation of Finishmaster into the LKQ network by closing 129 of their 151 locations. Not only did the North American team deliver the integration faster than expected, but with a higher level of synergies than originally planned.

2024 年，Finishmaster 關閉了其 151 個分支機構中的 129 個，並將其併入 LKQ 網絡，這再次驗證了北美團隊的整合能力。北美團隊不僅比預期更快完成了整合，而且綜效也比原計劃更高。

We finalized our mega yard expansion project in Crystal River, Florida, and in December, we began operating on this expanded acreage. We also purchased land and began the construction of two mega yards, one in Illinois and one in Washington.

我們完成了位於佛羅裡達州水晶河的大型碼頭擴建項目，並於12月開始在擴建後的土地上開展業務。我們還購買了土地並開始建造兩個大型碼頭，一個在伊利諾州，一個在華盛頓州。

We expect these new yards to open in 2026. These mega yard expansions will allow us to further our growth on recycled parts while driving more productivity. Our European segment made several key leadership changes to support a more agile focus on change management. We developed a more consistent culture across our global footprint and combining the intellectual capital of our two non-discretionary segments, North America and Europe.

我們預計這些新船廠將於 2026 年投入營運。這些大型堆場的擴建將使我們在提高生產效率的同時進一步促進零件回收的成長。我們的歐洲部門進行了幾次關鍵的領導層變動，以支持更敏捷地專注於變革管理。我們在全球業務範圍內形成了更一致的文化，並結合了北美和歐洲兩個非必需消費品部門的智力資本。

This shared expertise will give us many benefits, such as our overall procurement, remanufacturing product development, hard parts growth in North America, opportunities that will come from electrification, and a multitude of financial benefits, including vendor financing and a lower cost of capital.

這種共享的專業知識將為我們帶來許多好處，例如我們的整體採購、再製造產品開發、北美硬體零件成長、電氣化帶來的機會以及多種財務利益，包括供應商融資和更低的資本成本。

I will now shift to the quarter. Let's start with capital allocation. At recent trading levels, we believe repurchasing our shares is a good use of our capital. We were active in the quarter, repurchasing roughly 2 million shares for about $80 million.

我現在將轉到季度。讓我們從資本配置開始。在最近的交易水準下，我們認為回購股票是資本的良好利用方式。我們在本季表現活躍，以約 8,000 萬美元回購了約 200 萬股。

At the end of the quarter we had approximately $1.7 billion remaining on our repurchase authorization. The Board declared a quarterly cash dividend of $0.30 per share in October that was paid in November totaling $78 million. On February 18, the Board declared a quarterly cash dividend of $0.30 per share payable in March of 2025.

截至本季末，我們的回購授權餘額約為 17 億美元。董事會於 10 月宣布派發每股 0.30 美元的季度現金股息，並於 11 月支付總額為 7,800 萬美元。2 月 18 日，董事會宣布季度現金股利為每股 0.30 美元，將於 2025 年 3 月支付。

Moving to our segments. The North American revenue decline of 8.5% per day was larger than what we reported in the first three quarters of 2024. But when you back up the non-recurring benefit of the UAW strikes in 2023, and the storm impacts across the US in Q4, the North American decline in collision parts revenue was roughly 4% compared to a repairable claims decreasing almost 6% in a quarter. The revenue declined. It was another period of outperformance for North American operations on a relative basis.

轉到我們的部分。北美每天 8.5% 的營收降幅高於我們報告的 2024 年前三個季度的營收降幅。但是，當你考慮到 2023 年 UAW 罷工的非經常性收益以及第四季度美國各地的風暴影響時，北美碰撞零件收入下降了大約 4%，而可修復索賠在一個季度內下降了近 6%。收入下降了。從相對角度而言，這是北美業務又一個表現優異的時期。

That said, we are seeing some positive trends as we enter 2025, including favorable inclement weather and ongoing dynamics in the auto insurance market that combined could benefit our North American Collision business. The average cost of auto insurance in the US increased over 20% in 2024, more than any other category of household expenses.

話雖如此，我們在進入 2025 年時看到了一些積極的趨勢，包括有利的惡劣天氣和汽車保險市場的持續動態，這些因素結合起來可能使我們的北美碰撞業務受益。2024 年，美國汽車保險的平均成本上漲了 20% 以上，超過任何其他家庭開支類別。

We expect insurance costs to moderate in 2025, and historically this will lead to insurance carriers looking to take costs out of their network, and the value proposition of our alternative parts offering is one area they can quickly flex, which would be a favorable trend for APU.

我們預計保險成本將在 2025 年趨於平穩，從歷史上看，這將導致保險公司尋求從其網路中削減成本，而我們提供的替代零件的價值主張是他們可以快速靈活運用的一個領域，這對 APU 來說是一個有利的趨勢。

Moving on to Europe, our organic revenue declined 20 bps on a per day basis for the quarter, which was essentially flat to Q3. Certain markets showed single digit growth, while others declined in a similar range. I am particularly pleased with the organic growth in Germany which has moved past the labor issues from 2023 and early 2024 and reported healthy, sequential, and year-over-year growth.

在歐洲，我們本季的有機收入每天下降 20 個基點，與第三季基本持平。某些市場呈現出個位數成長，而其他市場則出現了類似幅度的下降。我對德國的有機成長感到特別高興，德國已經擺脫了 2023 年和 2024 年初的勞動力問題，並實現了健康、連續和同比增長。

Competition is again contributing to the challenging conditions in certain markets consistent with the last quarter, as some of the smaller players aggressively push price. Rick will cover the majority of margin-related details, but I wanted to highlight Europe's segment EBITDA at 10.1% in the quarter.

與上一季的情況一樣，競爭再次加劇了某些市場的艱難處境，因為一些小型企業積極推高價格。Rick 將介紹大部分與利潤相關的細節，但我想強調的是本季歐洲分部的 EBITDA 為 10.1%。

This performance is the highest Q4 segment EBITDA margin achieved in Europe, the third straight quarter with a double digit margin and the full year with the highest level of segment EBITDA dollars on record.

這是該公司在歐洲第四季度實現的最高分部 EBITDA 利潤率，也是該公司連續第三個季度實現兩位數利潤率，並創下了全年分部 EBITDA 金額的歷史最高水平。

With leadership aligned with our margin objectives, we are confident in our ability to deliver a sustainable annual double digit EBITDA margins in Europe. Tremendous performance and progress by the Europe team despite a challenging operating environment.

在領導層與我們的利潤目標保持一致的情況下，我們有信心在歐洲實現可持續的年度兩位數 EBITDA 利潤率。儘管營運環境充滿挑戰，歐洲團隊仍然表現出色並取得了進步。

Related to our SKU rationalization initiative in Europe, I am pleased to report that we hit our expectations of reviewing 50% of our product brands by year end 2024, and we plan to complete the review of an additional 30% by year end of 2025 with completion by the end of 2026. We started with roughly 750,000 stocking SKUs across Europe in scope for this project.

關於我們在歐洲的 SKU 合理化計劃，我很高興地報告，我們達到了到 2024 年底審查 50% 產品品牌的預期，我們計劃在 2025 年底完成對另外 30% 的審查，並在 2026 年底完成。我們最初在這個專案的範圍中涵蓋了歐洲各地約 750,000 個庫存 SKU。

By the end of 2024, we had decreased our stocking of over 30,000 SKUs, and we expect to decrease another 40,000 more in 2025, ultimately hitting our goal of stocking 600,000 SKUs by the end of 2027. This project will bring benefits on the procurement side, payables, and more importantly, simplify our operations to allow for a more pan-European distribution network.

到 2024 年底，我們的庫存減少了 30,000 多個 SKU，預計 2025 年將再減少 40,000 個，最終實現到 2027 年底庫存 600,000 個 SKU 的目標。該項目將為採購方面、應付款項帶來好處，更重要的是，簡化我們的運營，以實現更泛歐的分銷網絡。

As we will keep pushing for additional private label penetration as we recognize that the European vehicle park will continue to age, and this has been further accelerated post the pandemic with a combination of supply chain constraints and the transition of EV being slower than anticipated. We currently have 22% penetration of private label parts with the long-term initiative to grow that number to 30%, given the gross margin benefits that come from private label.

我們將繼續推動自有品牌的進一步滲透，因為我們認識到歐洲停車場將繼續老化，而且在疫情之後，由於供應鏈限制和電動車轉型速度比預期的要慢，這一趨勢進一步加速。目前，我們的自有品牌零件滲透率為 22%，考慮到自有品牌帶來的毛利率優勢，我們的長期計畫是將這一數字提高到 30%。

With this in mind, we do believe there are growth and margin enhancement opportunities in our category management portfolio, and the increase in our private label offering is already included in our targeted 600,000 stocking SKU number. We plan to update you on our progress with these SKU targets on a quarterly basis.

考慮到這一點，我們確實相信我們的品類管理組合中存在增長和利潤提升的機會，而且我們自有品牌產品的增長已經包含在我們的目標 600,000 個庫存 SKU 數量中。我們計劃每季向您通報這些 SKU 目標的進展。

Specialty posted organic revenue down 7.3% on a per day basis, but was a sequential improvement from Q3. The RV Industry Association believes the RV market is poised for growth in 2025 with dealer inventories at higher levels, ongoing strong consumer interest in RV ownership, and interest rates that are expected to ease. Additionally, total US light vehicle sales increased 7.1% in Q4, with pickups and SUVs, the most important category for us of 14.8% and 4.9% respectively. Though not out of the woods, we are starting to see some positive signs in our specialty segment as we enter 2025.

特種產品部門的每日有機收入下降 7.3%，但較第三季有所改善。房車行業協會認為，隨著經銷商庫存水準提高、消費者對房車所有權的興趣持續濃厚以及利率預計將下降，房車市場將在 2025 年實現增長。此外，美國輕型汽車總銷量在第四季度增長了 7.1%，其中皮卡和 SUV 是我們最重要的類別，分別增長了 14.8% 和 4.9%。儘管尚未脫離困境，但隨著進入 2025 年，我們開始在專業領域看到一些積極跡象。

Lastly, on tariffs. The tariff news is extremely fluid with the current administration validated by the quick shift of halting the Mexico and Canada tariffs less than 48 hours after they were implemented. Our team is actively monitoring the various announcements and a potential impact on our business. As the tariff situation stabilizes and things unfold, we will keep the investment community apprised accordingly.

最後，關於關稅。關稅消息極不穩定，現任政府在對墨西哥和加拿大徵收關稅後不到 48 小時就迅速採取行動，暫停這些關稅。我們的團隊正在積極監控各種公告及其對我們業務的潛在影響。隨著關稅情勢的穩定和事態的發展，我們將及時向投資界通報最新情況。

As mentioned in the past, wholesale North America procures virtually zero inventory from China, with most coming from Taiwan. And as you know, our salvage product is all domestic. Specialty is the only segment with exposure to China, approximately 15%, and their spend is highly diversified with some products being procured here in the US.

正如過去所提到的，北美批發市場從中國採購的庫存幾乎為零，大部分來自台灣。如您所知，我們的打撈產品全部都是國產的。特種產品是唯一與中國有業務往來的領域，約佔15%，其支出高度多樣化，有些產品是在美國採購的。

I'll now turn the call over to Rick for a review of the financials and our 2025 guidance.

現在我將把電話轉給里克，讓他審查財務狀況和我們的 2025 年指引。

Thank you, Justin, and welcome to everyone joining us today. Before I dive into specifics on the fourth quarter, I would also like to cover some of our accomplishments throughout 2024. Despite the macroeconomic challenges as Justin mentioned, we continued to focus on those things within our control.

謝謝賈斯汀，歡迎大家今天加入我們。在深入介紹第四季的具體情況之前，我還想介紹一下我們在 2024 年取得的一些成就。儘管正如賈斯汀所提到的，宏觀經濟面臨挑戰，但我們仍然專注於我們所能控制的事情。

We accelerated the integration of Finishmaster, completing that exercise in the first quarter and helping us to increase annualized unisex synergies by the end of 2026 to $65 million. We initiated the 2024 restructuring plan with the objectives of exiting businesses and markets that do not align with our strategic objectives and executing on opportunities to streamline operations and our logistics models.

我們加快了 Finishmaster 的整合進程，並在第一季完成了這項工作，並幫助我們在 2026 年底將年度男女性協同效應提高到 6500 萬美元。我們啟動了 2024 年重組計劃，目的是退出與我們的策略目標不符的業務和市場，並抓住機會簡化營運和物流模式。

In Europe that resulted in exiting certain operations and increasing the efficiency of our logistics footprint, resulting in a reduction in facilities and overhead costs. In North America, we focused on aligning our cost structure with demand by rationalizing overhead costs to most efficiently serve our customer base.

在歐洲，這導致我們退出某些業務並提高物流足跡的效率，從而減少了設施和管理成本。在北美，我們致力於透過合理化間接成本來使我們的成本結構與需求保持一致，從而最有效地服務我們的客戶群。

While these actions were challenging, they were necessary to tackle and align with the strategic imperatives we discussed at Investor Day, including simplification of the business portfolio, improving our lien operating model globally, and increasing our margins in order to maximize total shareholder returns. We are confident the actions we have taken will drive our success in 2025 and beyond.

雖然這些行動具有挑戰性，但它們是必要的，以應對和符合我們在投資者日討論的戰略要務，包括簡化業務組合，改善我們的全球留置權運營模式，並提高我們的利潤率，以最大化股東總回報。我們相信，我們所採取的行動將推動我們在 2025 年及以後取得成功。

Now on to the fourth quarter. Overall, Q4 results exceeded our expectations and guidance. Europe's performance was a highlight. As the segment delivered a record fourth quarter even in dollars and percentage, despite challenging macroeconomic conditions. Self-service performed in line with expectations with another quarter of year-over-year improvement in even in dollars and percentage.

現在進入第四季。整體而言，第四季的業績超出了我們的預期和指引。歐洲的表現令人矚目。儘管宏觀經濟環境充滿挑戰，但該部門第四季度的業績無論從金額還是百分比來看均創下了歷史新高。自助服務表現符合預期，無論是金額或百分比，都比去年同期有所改善。

North America improved its EBITDA margin by 50 basis points due to a one-time legal settlement, despite revenue losses from a brief cyber incident in Canada. Specialty results remain under pressure with soft demand.

儘管加拿大因短暫的網路事件而遭受收入損失，但北美地區由於一次性法律和解，其 EBITDA 利潤率提高了 50 個基點。由於需求疲軟，特種化學品的業績仍面臨壓力。

Turning now to the fourth quarter consolidated results. Despite challenges in North America and Specialty, and the stronger US dollar affecting Europe, our fourth quarter performance exceeded expectations due to strong European results and some favorable non-recurring items.

現在來談談第四季的綜合業績。儘管北美和特種業務面臨挑戰，且美元走強對歐洲造成影響，但由於歐洲業績強勁和一些有利的非經常性項目，我們第四季度的業績超出預期。

For the full year, we reported diluted earnings per share of $2.62 and adjusted diluting earnings per share of $3.48. The latter of which was toward the higher end of the guidance range we discussed back in October, but a decrease of $0.35 per share compared to 2023. The $0.35 per share decline in adjusted EPS was primarily influenced by a combined $0.30 per share impact from interest and taxes.

我們報告的全年每股攤薄收益為 2.62 美元，調整後每股攤薄收益為 3.48 美元。後者接近我們 10 月討論的指導範圍的高端，但與 2023 年相比每股下降了 0.35 美元。調整後每股收益下降 0.35 美元主要受到每股 0.30 美元的利息和稅收影響。

With an additional $0.13 decrease attributed to commodity prices and foreign exchange rates. Despite the macroeconomic challenges and significant inflationary pressures on overhead and cost of goods sold. Our efforts in simplification and strategic capital allocation have resulted in a positive contribution of $0.08 for the full year.

另外，由於商品價格和外匯匯率，下降了 0.13 美元。儘管面臨宏觀經濟挑戰和巨大的通膨壓力，管理費用和銷售成本仍然很高。我們在簡化和策略資本配置方面的努力為全年帶來了 0.08 美元的正貢獻。

For the fourth quarter, we reported diluted EPS of $0.60 and adjusted diluted EPS of $0.80, a $0.04 decrease from the prior year figure. As you may recall, our Q4 2023 results included some favorable one-time discrete tax items which were not repeated in Q4 this year, resulting in a $0.09 year-over-year decrease from taxes.

第四季度，我們報告的稀釋每股收益為 0.60 美元，調整後稀釋每股收益為 0.80 美元，比去年同期下降 0.04 美元。您可能還記得，我們​​的 2023 年第四季度業績包括一些有利的一次性單獨稅項目，這些項目在今年第四季度沒有重複出現，導致稅收同比減少 0.09 美元。

In addition, lower FX rates and unfavorable metals price movements contributed to a further $0.02 decline. On the positive side, lower share counts due to our ongoing share repurchase program improved adjusted EPS by approximately $0.03. The remaining $0.04 year-over-year improvement reflected the strong performance by Europe and net favorable non-recurring items in North America.

此外，外匯匯率下降和金屬價格不利的走勢導致價格進一步下跌 0.02 美元。從積極的一面來看，由於我們正在進行的股票回購計劃，股票數量減少，調整後的每股收益提高了約 0.03 美元。其餘 0.04 美元的同比增長反映了歐洲的強勁表現和北美的淨有利非經常性項目。

Now for segment results. Going to slide 7. North America posted a segment EBITDA margin of 16.8%, a 50 basis point increase relative to last year. For the full year, we reported a segment EBITDA margin of 16.6%, slightly above the expectations we discussed last quarter, due to a favorable non-recurring legal settlement that was partially offset by our Canadian cyber incident.

現在來看看片段結果。轉到投影片 7。北美分部的 EBITDA 利潤率為 16.8%，較去年同期增加了 50 個基點。就全年而言，我們報告的分部 EBITDA 利潤率為 16.6%，略高於我們上季度討論的預期，這得益於有利的非經常性法律和解，但被我們的加拿大網絡事件部分抵消。

The decline in organic revenue, especially within our aftermarket business due to reduced repairable claim counts, adversely impacted margins during the quarter. This also included a related mix effect on gross margins, as aftermarket collision revenue typically yields higher margins compared to our other wholesale lines.

有機收入的下降，尤其是由於可修復索賠數量減少導致的售後業務收入的下降，對本季的利潤率產生了不利影響。這也包括對毛利率的相關組合效應，因為與我們的其他批發業務相比，售後碰撞收入通常能產生更高的利潤率。

Salvage margins were also down in the quarter reflecting unfavorable movement in revenue, vehicle cost trends, and commodity prices in 2024. On the other hand, overhead expenses improved 270 basis points in North America, reflecting favorability from the one-time legal settlement and lower personnel costs, primarily related to lower incentive compensation.

本季的殘值利潤率也下降了，反映了 2024 年收入、車輛成本趨勢和商品價格的不利變動。另一方面，北美的管理費用改善了 270 個基點，反映出一次性法律和解的有利影響以及較低的人員成本（主要與較低的激勵性薪酬有關）。

The Uni-Select synergies and productivity initiatives largely offset significant inflationary pressures and the leverage effect of the organic revenue decline. While we expect headwinds on repairable claims and salvage margins to continue in 2025 due to the factors I've mentioned, particularly in the first half of the year, we estimate that the North America's EBITDA margins will be in the low 16s, consistent with 2024 after adjusting for the non-recurring items.

Uni-Select 的協同效應和生產力措施在很大程度上抵消了通膨壓力和有機收入下降的槓桿效應。雖然由於我提到的因素，我們預計可修復索賠和殘值利潤率的阻力將在 2025 年繼續存在，特別是在上半年，但我們估計北美的 EBITDA 利潤率將在 16% 的低位，與調整非經常性項目後的 2024 年持平。

Looking at slide 8, Europe reported a segment EBITDA margin of 10.1%, a 180 basis point improvement over last year and its third quarter in a row with double digit EBITDA margins.

從第 8 頁來看，歐洲報告分部 EBITDA 利潤率為 10.1%，比去年同期提高了 180 個基點，並且連續第三個季度實現兩位數的 EBITDA 利潤率。

The year-over-year improvement consists of 110 basis points related to non-recurring charges in the prior year, while the remaining 70 basis points relates to the ongoing efforts to simplify the operations and portfolio, as well as productivity efforts that more than offset inflationary pressures.

與去年同期相比，改進包括與上一年的非經常性費用相關的 110 個基點，而剩餘的 70 個基點則與持續簡化營運和投資組合的努力以及抵消通膨壓力的生產力努力有關。

As I stated on our last call, we expected EBITDA margins in Europe for the full year to be in the mid to high 9s, which is where we landed. From where we stand today and the actions we've taken to address productivity, we believe we can build upon our recent gains and expect to deliver improvements, with EBITDA margins expected to be double digits in 2025.

正如我在上次電話會議上所說的那樣，我們預計歐洲全年的 EBITDA 利潤率將達到 9% 左右，而我們也確實達到了這個水平。從我們目前的狀況和為提高生產力所採取的行動來看，我們相信，我們可以在近期成果的基礎上再接再厲，並有望取得進步，預計 2025 年 EBITDA 利潤率將達到兩位數。

Moving to slide 9. Specialties EBITDA margin of 4.1%, 160 basis points below the prior year, primarily driven by a decline in organic revenue and resulting leverage effect on overhead costs. Demand softness in the light vehicle and RV product lines and competitive pricing pressures remain challenges for the business. For the full year, segment EBITDA margins were 6.8%, below our expectations, but largely related to the revenue softness.

移至幻燈片 9。特種產品 EBITDA 利潤率為 4.1%，比前一年低 160 個基點，主要原因是有機收入下降以及由此產生的對間接成本的槓桿效應。輕型車和房車產品線的需求疲軟以及競爭激烈的價格壓力仍然是該業務面臨的挑戰。全年分部 EBITDA 利潤率為 6.8%，低於我們的預期，但很大程度上與收入疲軟有關。

Early signs indicate some of our markets have stabilized. However, a rapid rebound in 2025 is unlikely due to inconsistent recovery. Thus we expect segment EBITDA margins to improve to around 7% to 8% for the full year 2025.

早期跡象表明我們的一些市場已經穩定下來。然而，由於復甦不穩定，2025 年不太可能出現快速反彈。因此，我們預計 2025 年全年分部 EBITDA 利潤率將提高至 7% 至 8% 左右。

Self-service generated an 8.3% segment EBITDA margin in Q4, which is a 230 basis point improvement from last year. In dollar terms, segment EBITDA increased by $4 million. Disciplined vehicle procurement combined with overhead cost controls overcame unfavorable movements in scrap steel prices and helped to drive the third consecutive quarterly improvement in year-over-year profitability.

自助服務在第四季度產生了 8.3% 的分部 EBITDA 利潤率，比去年同期提高了 230 個基點。以美元計算，分部 EBITDA 增加了 400 萬美元。嚴格的車輛採購與間接成本控制相結合，克服了廢鋼價格的不利變動，並幫助推動了盈利能力連續第三個季度的改善。

Shifting to cash flows on the balance sheet. We produced $149 million in free cash flow during the quarter, bringing our year-to-date total to $810 million. But slightly below our expectations, we invested in North American inventory, anticipating possible Q1 port strikes and tariffs. We remain dedicated to delivering value to our shareholders, allocating over $150 million to $80 million in share repurchases and $78 million in dividends.

轉移到資產負債表上的現金流。我們在本季產生了 1.49 億美元的自由現金流，使年初至今的總額達到 8.1 億美元。但略低於我們的預期，我們投資了北美庫存，預計第一季可能出現港口罷工和關稅。我們將繼續致力於為股東創造價值，分配超過 1.5 億美元至 8,000 萬美元的股票回購和 7,800 萬美元的股息。

As presented during our Investor Day, we committed to allocating at least 50% of our free cash flow towards returning value to our shareholders. We are pleased to announce that we exceeded this commitment in 2024.

正如我們在投資者日所介紹的那樣，我們承諾將至少 50% 的自由現金流分配給股東回報。我們很高興地宣布，我們在 2024 年超額完成了這項承諾。

As you can see on slide 10 for the full year we deployed $678 million for share repurchases and dividends, representing over 80% of our free cash flow. We also invested approximately $3 million in two tuck-in acquisitions in the fourth quarter, both in North America, including one in Canada and one in the US. For the year we spent approximately $50 million on acquiring 10 highly accretive tuck-in businesses.

正如您在第 10 張幻燈片中看到的，我們全年部署了 6.78 億美元用於股票回購和股息，占我們自由現金流的 80% 以上。我們還在第四季度對兩項附加收購投資了約 300 萬美元，均在北美，一項在加拿大，一項在美國。今年我們花了約 5,000 萬美元收購了 10 家增值性極強的快餐企業。

We paid down approximately $62 million in outstanding debt in the quarter. As of December 31, we had total debt of $4.2 billion with a total leverage ratio of 2.3 times EBITDA, an improvement from the prior quarter. We remain committed to maintaining a manageable debt level and our investment grade rating.

我們在本季償還了約 6,200 萬美元的未償債務。截至 12 月 31 日，我們的總債務為 42 億美元，總槓桿率為 EBITDA 的 2.3 倍，比上一季有所改善。我們仍致力於維持可控的債務水準和投資等級評等。

As of December 31, 2024, our current maturities were $38 million, but we have a $500 million term loan coming due in Q1 2026. As normal practice, we actively manage our capital structure, and we are currently evaluating our options to determine the optimal solution to address our pending 2026 term loan maturity.

截至 2024 年 12 月 31 日，我們目前的到期金額為 3,800 萬美元，但我們有一筆 5 億美元的定期貸款將於 2026 年第一季到期。按照正常做法，我們積極管理我們的資本結構，目前正在評估我們的選擇，以確定解決我們即將到期的 2026 年定期貸款的最佳解決方案。

Our effective interest rate was 5.3% at the end of Q4, slightly down from Q3 as a result of recently lowered benchmark rates. We have $1.7 billion in variable rate debt, of which $700 million has been fixed with variable interest rate swaps, which effectively provides a fixed rate on over 75% of our debt.

第四季末，我們的實際利率為 5.3%，由於最近基準利率下調，較第三季略有下降。我們擁有 17 億美元的浮動利率債務，其中 7 億美元已透過浮動利率互換固定，這實際上為我們 75% 以上的債務提供了固定利率。

I will close with our thoughts on 2025 guidance as shown on slide 11. Our guidance is based on current market conditions, recent trends, and assumes scrap and precious metal prices hold near fourth quarter prices, and no material impact from tariffs.

最後，我將以幻燈片 11 中所示的我們對 2025 年指導的想法作為結束。我們的指導基於當前的市場狀況和近期趨勢，並假設廢料和貴金屬價格保持在第四季度價格附近，並且不會受到關稅的重大影響。

On foreign exchange, our guidance includes recent rates, including the euroat $1.04 the pound sterling at $1.25 and the Canadian dollar at $0.70. The global tax rate is at 27.0%, which is comparable to our 2024 rate. We expect organic parts and services revenue growth between 0% and 2%. Please note, we have one less selling day in 2025.

在外匯方面，我們的指導包括最近的匯率，包括歐元兌美元 1.04、英鎊兌美元 1.25 以及加元兌美元 0.70。全球稅率為 27.0%，與我們的 2024 年稅率相當。我們預計有機零件和服務收入成長率在 0% 至 2% 之間。請注意，2025 年我們的銷售日減少了一天。

In North America, we expect revenue to be roughly flat on a per day basis, given we don't expect an immediate rebound in repairable claims and won't realize the full benefit of some of the favorable trends Justin mentioned until later in the year.

在北美，我們預計每日收入將大致持平，因為我們預計可修復索賠不會立即反彈，而且直到今年稍後才能充分實現賈斯汀提到的一些有利趨勢的好處。

We believe Europe is poised to perform a bit better than they did from a revenue perspective in 2025, despite the ongoing challenging macroeconomic backdrop across the continent. For Specialty, we expect low single digits for organic revenue growth given the macroeconomic indicators we are seeing. As a result of our revenue growth expectations, we are estimating adjusted diluted EPS to be in the range of $3.40 to $3.70.

我們相信，儘管整個歐洲大陸的宏觀經濟背景持續充滿挑戰，但從收入角度來看，歐洲在 2025 年的表現將比現在更好。對於特種產品而言，根據我們看到的宏觀經濟指標，我們預期有機收入成長率將達到個位數以下。根據我們的營收成長預期，我們預計調整後的稀釋每股收益將在 3.40 美元至 3.70 美元之間。

As you can see on slide 12, our EPS guidance anticipates headwinds from lower foreign exchange rates, depreciation and amortization, as well as the one-time items discussed earlier, partially offset by benefits from metals prices, interest, and taxes.

正如您在第 12 頁所看到的，我們的每股盈餘指引預計，較低的外匯匯率、折舊和攤銷以及前面討論過的一次性項目將帶來不利影響，但金屬價格、利息和稅收帶來的好處將部分抵消這些不利影響。

We're focusing our efforts on those items we can't control and anticipate more than offsetting the net negative impact of those items through improved operating results, which reflect the carryover benefit from the simplification and productivity measures we took in 2024, and the continued benefits from our disciplined focus on capital allocation.

我們將精力集中在那些我們無法控制的項目上，並預計透過改善營運績效來抵消這些項目的淨負面影響，這反映了我們在 2024 年採取的簡化和生產力措施帶來的結轉效益，以及我們對資本配置的嚴格關注帶來的持續效益。

Free cash flow is expected to be in the range of $750 to $900 million. We will continue to balance our trade working capital and capital expenditure needs to fund our strategic growth objectives for 2025 and beyond. Thanks for your time.

預計自由現金流在7.5億至9億美元之間。我們將繼續平衡我們的貿易營運資金和資本支出需求，為我們 2025 年及以後的策略成長目標提供資金。感謝您的時間。

I will now turn the call back to Justin for his closing comments.

現在我將電話轉回給賈斯汀，請他作最後發言。

Thanks, Rick, for the financial commentary. As we enter 2025, I want to reaffirm my strategic priorities for our global enterprise as we drive sustained long-term total shareholder returns. First, make sure we are growing above the market. Next, simplify our operations by ensuring lean thinking is in everything we do to enhance our margins and simplify our portfolio across our markets and businesses to ensure we're the best owners.

謝謝 Rick 的財務評論。當我們進入 2025 年時，我想重申我們全球企業的策略重點，因為我們推動持續的長期股東總回報。首先，確保我們的成長速度高於市場。接下來，簡化我們的運營，確保精益思維貫穿我們所做的每一件事中，以提高我們的利潤率，簡化我們在各個市場和業務中的投資組合，確保我們是最好的所有者。

Improve free cash flow by growing profitably and strengthening our balance sheet. Invest in growth organically and via small, highly synergistic tuck-ins and with a continued moratorium on any large platform acquisitions. And focus our capital allocation strategy around returning capital to our shareholders through a combination of share repurchases and dividends.

透過增加獲利和加強資產負債表來改善自由現金流。透過小規模、高度協同的收購，以有機方式投資成長，並繼續暫停任何大型平台收購。我們的資本配置策略重點在於透過股票回購和股利結合的方式向股東返還資本。

With these priorities in place, coupled with our industry leading teams, we are well positioned to navigate the challenges ahead and deliver strong operating results for all of our stakeholders. As always, I want to thank the 47,000 plus dedicated team members of LKQ for their commitment to advancing our business each day and driving our mission forward, no matter the obstacles. Time and time again, our team has shown these challenges are opportunities for growth for both themselves and the overall organization.

有了這些優先事項，再加上我們領先業界的團隊，我們完全有能力應對未來的挑戰，並為所有利害關係人提供強勁的營運績效。像往常一樣，我要感謝 LKQ 47,000 多名敬業的團隊成員，無論面臨何種障礙，他們都致力於每天推進我們的業務並推動我們的使命向前發展。我們的團隊一次又一次證明，這些挑戰對他們自己和整個組織來說都是成長的機會。

With that operator, we are ready to open the call for questions.

有了這個接線員，我們就可以開始回答問題了。

(Operator instructions)

（操作員指令）

Craig Kennison, Baird

克雷格‧肯尼森，貝爾德

Hey, good morning, thanks for taking my question. It really goes to the SKU rationalization project in Europe. I think the concern had been that by reducing brands, you might miss on some revenue opportunities, but you benefit from better vendor terms. It looks like you had a better comp in the quarter than most of your peers. So maybe you're actually not losing revenue. Just curious if you can comment on any revenue impact from that decision?

嘿，早上好，感謝您回答我的問題。這實際上適用於歐洲的SKU合理化專案。我認為人們擔心的是，透過減少品牌，你可能會錯過一些創收機會，但你會從更好的供應商條款中受益。看起來您本季的業績比大多數同業都要好。所以也許你實際上並沒有損失收入。我只是好奇您是否可以評論一下該決定對收入造成的影響？

And then on a related note, if you could comment on, I guess, the beneficial terms that you earned by consolidating your business with the remaining vendors? Thank you.

然後，在相關說明上，您能否評論一下與剩餘供應商合併業務所獲得的有利條款？謝謝。

Morning, sir. Thanks for the question. On the SKU radialization, we're taking a very cautious approach. We're not trying to fast track this in the next six months. It's really a two to three year project because our biggest concern to your point is making sure that we don't, that we have a revenue concern, and so far, we've not.

早上好，先生。謝謝你的提問。在SKU輻射化方面，我們採取非常謹慎的態度。我們不會試圖在未來六個月內快速推進這項進程。這實際上是一個兩到三年的項目，因為對於您的觀點，我們最大的擔憂是確保我們不會有收入問題，而到目前為止，我們還沒有。

A couple of the reasons why when we do the SKU rationalization, although we're reducing the number of actual stock numbers in our warehouses, we're increasing the actual ability to say yes by applications, meaning when a customer has a specific year making model and a part type, our goal isn't just have a brand.

當我們進行 SKU 合理化時，雖然我們減少了倉庫中的實際庫存數量，但我們提高了應用程式表示同意的實際能力，這意味著當客戶擁有特定年份的製造型號和零件類型時，我們的目標不僅僅是擁有一個品牌。

Our goal is to have, be able to say yes, regardless of the brand. Additionally, we're adding more private label, as I mentioned in my, in the script. And that's allowing us to compete into a different market where price is a little bit more, customers are a little bit more conscious on price. So far, we haven't seen any revenue concerns. The group that we have working on this, I mean, it has operations, sales people, supply chain to make sure that we don't impact the business and impact the revenue.

我們的目標是，無論品牌是什麼，都能得到客戶的認可。此外，正如我在腳本中提到的，我們正在添加更多自有品牌。這使我們能夠在不同的市場中競爭，那裡的價格稍微高一些，客戶對價格更加重視。到目前為止，我們還沒有發現任何收入問題。我們負責此事的團隊，包括營運、銷售人員、供應鏈，以確保我們不會影響業務和收入。

On the term side, we haven't gone through everything we do expect to see a slight improvement in terms better cost of goods, but we haven't quantified that yet.

從期限來看，我們還沒有經歷所有的事情，我們確實期望看到商品成本方面略有改善，但我們還沒有量化這一點。

Thank you.

謝謝。

Thanks, Craig.

謝謝，克雷格。

Jash Patwa, JPMorgan.

摩根大通的賈什·帕特瓦 (Jash Patwa)。

Hi, good morning. Thanks for taking my question. Just one bigger picture question. We're now starting to cycle the impacts of lower than normalized new [SAAR] levels in 2022 and 2023. And that are expected to reduce the population of vehicles in the younger age cohort of the vehicle, of the company's suite spot a 3 to 10 year old vehicles.

嗨，早安。感謝您回答我的問題。這只是一個更大的問題。我們現在開始循環 2022 年和 2023 年低於正常化新 [SAAR] 水準的影響。並且預計將減少車輛數量中較年輕化的車輛，其中該公司的庫存中主要是 3 至 10 年車齡的車輛。

I'm curious if this is likely to have a meaningful impact on market trends over the next couple of years. Any color you could share around the distribution of reparable claims across vehicle age pockets, which would be meaningful to case the impact here.

我很好奇這是否會對未來幾年的市場趨勢產生有意義的影響。您可以分享有關可修復索賠在車輛年齡段中的分佈情況的任何信息，這對於分析這裡的影響很有意義。

Yes, good question. We obviously monitor new car production sales into the market. So far, it hasn't been a huge impact on, in our model on repairable claims. Obviously, the vehicle car park is aging. That's always good for LKQ, whether it's on the collision side, the product lines we sell are on the mechanical piece.

是的，好問題。我們顯然會監控新車的生產銷售情況。到目前為止，它對我們的可修復索賠模型還沒有產生很大的影響。顯然，該停車場已經老化。對於 LKQ 來說，這總是一件好事，無論是在碰撞方面，還是我們銷售的產品線都在機械部分。

Obviously, we sell a lot of engines and transmissions and that aging fleet uses those items a lot more, obviously, than a newer one. So we haven't seen any meaningful impact currently, and we're monitoring it on a go-forward basis. It really is going to depend on to your point on the [SAAR] sales over the next couple of years to see if there's a longer-term impact.

顯然，我們銷售了許多引擎和變速箱，而且老化的車隊使用這些零件的頻率顯然比新車隊高得多。因此，我們目前還沒有看到任何有意義的影響，我們正在對其進行持續監控。這實際上將取決於您對未來幾年 [SAAR] 銷售的看法，看看是否會產生長期影響。

And Jash, our sweet spot is a little bit closer to 3 to 12 years. So it's a little bit further than the 10 that you talked about. The good news is we have started to see recently some Manheim information that indicates used car prices have been going up last few months. So that's a good thing for us.

賈許 (Jash)，我們的最佳年齡稍微接近 3 至 12 歲。所以它比你所說的 10 還要遠一點。好消息是，我們最近開始看到一些曼海姆訊息，表明二手車價格在過去幾個月一直在上漲。這對我們來說是件好事。

Understood. That's really helpful. Just as a follow-up, I was curious if LKQ's North American and European supply chain are meaningfully differentiated from some of your local peers in that potential tariffs could provide the company a transitory competitive advantage. Any historical precedence you could share around LKQ's organic revenue growth trajectory in comparison to the industry on its economic shocks would be super helpful. Thank you.

明白了。這真的很有幫助。作為後續問題，我很好奇 LKQ 的北美和歐洲供應鏈是否與當地的一些同行有顯著區別，因為潛在的關稅可能會為公司帶來暫時的競爭優勢。如果您能分享 LKQ 的有機收入成長軌跡與產業在經濟衝擊下的對比歷史先例，那將非常有幫助。謝謝。

Yes. Obviously, your question on tariffs. The headlines all about Mexico, Canada and China, obviously, there's maybe more to come. Just from a risk standpoint, do you guys understand, if we quantify what we import into the US from those three countries, it's less than 5% of our total purchases, so not real meaningful.

是的。顯然，您的問題是關於關稅的。新聞頭條全是有關墨西哥、加拿大和中國的，顯然，接下來可能會有更多新聞。僅從風險的角度來看，你們明白嗎，如果我們量化從這三個國家進口到美國的商品，這還不到我們總購買量的 5％，因此沒有真正的意義。

Historically, we've always been able to pass it on to our consumers on to the customers. Overall, the devil's in the details, if there are tariffs that impact our competition, whether that's OEM or if it impacts something else that doesn't necessarily impact LKQ as much of that as a competitive advantage from a cost saving standpoint. But obviously, there's a lot more details that work through and a lot more unknowns for us to figure out whether it's an opportunity or not.

從歷史上看，我們總是能夠將其傳遞給消費者和客戶。總的來說，細節決定成敗，如果關稅影響到我們的競爭，無論是 OEM 還是其他什麼，都不一定會對 LKQ 產生太大影響，而是從節省成本的角度來看，這會影響到競爭優勢。但顯然，我們還需要處理更多的細節，還有很多未知數，才能確定這是否是一個機會。

Understood. Thank you and good luck.

明白了。謝謝你，祝你好運。

Thank you.

謝謝。

Scott Stember, Roth Capital.

羅斯資本 (Roth Capital) 的斯科特·斯坦伯 (Scott Stember)。

Good morning and thanks for taking my questions as well.

早安，也感謝您回答我的問題。

Morning, Scott.

早安，史考特。

Could you guys talk about the mega yards, some early returns and some KPIs that we could be looking for in the future to really gauge how things are progressing on that front?

你們能否談談大型碼頭、一些早期的回報以及我們未來可以尋找的一些 KPI，以真正衡量這方面的進展？

Yes. From a high level, just the explanation and definition of mega yards. Obviously, we've got 100-plus yards across North America. Some of those are landlocked where we can expand. When we move into a mega yard, it gives us the ability to consolidate potentially two or three local yards into that mega yard, but it also gives us capacity to produce more cars or to (inaudible) more cars.

是的。從高層次來看，只是巨型碼頭的解釋和定義。顯然，我們在北美有 100 多碼的覆蓋範圍。其中一些國家是內陸國家，我們可以向這些國家擴張。當我們進入一個大型造車場時，它使我們有能力將兩個或三個本地造車場合並到該大型造車場中，但它也使我們有能力生產更多的汽車或（聽不清楚）更多的汽車。

We've had a couple over the last several years. It's a new initiative for us. So we see great returns on those long-term baked-in our model for a couple of reasons. One, we can produce more cars with the same management. We don't necessarily have to have multiple general managers if we consolidate three yards in a one big one. We can hold those vehicles longer, giving the opportunity to sell more parts off of that vehicle.

過去幾年裡，我們已經有過幾次了。這對我們來說是一個新舉措。因此，由於以下幾個原因，我們看到我們的模型中的長期投資獲得了豐厚的回報。一、我們可以在同樣的管理下生產更多的汽車。如果我們將三個船廠合併為一個大船廠，我們不一定需要有多位總經理。我們可以保留這些車輛更長時間，從而有機會出售更多車輛零件。

Scott, if you think about we buy a car for $2,000, our cost of goods is $2,000 no matter what. So the longer we can hold that vehicle creates more opportunities to sell off for those, sell off of that vehicle. So we see great returns on it in the future. but most of these, we've only created a few of these in the last several years, so.

史考特，如果你想想我們花 2,000 美元買一輛車，那麼無論如何我們的商品成本就是 2,000 美元。因此，我們持有車輛的時間越長，出售車輛的機會就越多。因此我們預見到未來它將會帶來豐厚的回報。但其中大多數，我們在過去幾年裡只創造了其中的幾個，所以。

Got it. And then there was some commentary about North America, some positive things going on, I guess, weather was one of them. Can you talk about that? And then just following up on that, just for a cadence for guidance, if we were looking at the midpoint, how should we look at the recovery throughout the year.

知道了。然後有一些關於北美的評論，一些積極的事情正在發生，我想，天氣就是其中之一。你能談談這個嗎？然後繼續跟進，只是為了獲得指導的節奏，如果我們看中點，我們應該如何看待全年的復甦。

Yes, I'll take the first part of that, Scott and I turn it over to Rick. On the repairable claims side, some of the positives we've seen, obviously, are the inclement weather Also, we're kind of anniversarying some of the issues that we've had.

是的，我將負責第一部分，斯科特和我將其交給里克。在可修復索賠方面，我們顯然看到的一些積極因素是惡劣的天氣，此外，我們正在紀念我們遇到的一些問題。

Rick just mentioned that we've had a couple of months of used car pricing kind of flattening off and starting to increase. So with the large increases from an insurance premiums with the used car prices dropping, that was impacting consumers' choice to fix their vehicle and impacting repairable claims.

里克剛才提到，幾個月來二手車價格趨於平穩並開始上漲。因此，隨著保險費大幅上漲以及二手車價格下降，這影響了消費者修理車輛的選擇並影響了可修復的索賠。

Now that we're starting to see used car pricing level off, there are still some states that haven't necessarily passed to larger increases. But for the most part, the majority of states increased those premiums or allowed the premiums to increase. And so we're kind of going to be anniversarying that throughout 2025. And Rick can kind of talk about how we have that baked in the guidance.

現在我們開始看到二手車價格趨於平穩，但仍有一些州的車價不一定會大幅上漲。但總體而言，大多數州都提高了保費或允許保費上漲。所以我們會在 2025 年慶祝這個日子。里克 (Rick) 可以談談我們如何將其融入指導中。

Yes, Scott. So same kind of works for the corporate side consolidated numbers. But if you're talking specifically about North America. If you look at last year in 2024, the per day numbers were around, just using round numbers around 3% down, 5% down, then it went to about 7.5% and 8.5%. We're expecting the exact opposite of that to happen through the year this year. We'll be down a little bit in the first half of the year and then will be positive year-over-year in the back half to where we're roughly flat for the year. So think of that starting off in a low point in Q1 and then growing throughout the year when you look at the organic numbers.

是的，斯科特。因此，對於公司方面的合併數字而言，也是同樣的工作方式。但如果你具體談的是北美。如果您查看去年，也就是 2024 年，每天的數字大約是，僅使用整數，下降 3%、下降 5% 左右，然後下降到 7.5% 和 8.5% 左右。我們預計今年的情況將完全相反。今年上半年我們的銷售額會略有下降，下半年我們的銷售額將年增，到全年基本持平。因此，當您查看有機數字時，可以想像一下從第一季的低點開始，然後在全年增長。

Got it. Very helpful. Thank you guys.

知道了。非常有幫助。謝謝你們。

Thanks, Scott.

謝謝，斯科特。

Brian Butle, Stifel.

布萊恩·巴特爾 (Brian Butle)，Stifel。

Good morning. Thanks for taking my question. Just first one, just maybe some additional color on the portfolio review from a strategic perspective. I know this was kind of started back in September. Maybe just where we are on that and the time line you think going forward from here when there may be some decision opportunities to be made?

早安.感謝您回答我的問題。首先，也許只是從策略角度對投資組合審查進行一些補充說明。我知道這件事從九月就開始了。也許我們目前處於什麼位置以及您認為從現在開始的時間表何時可能會有一些決策機會？

Hey Brian, thanks for the question. Just to be clear, it started before September, our review of the portfolio. It is not done. It is still ongoing. Obviously, in 2024, I mentioned we did divest five businesses, primarily in Europe, totaling $153 million of revenue with really little to no profit.

嘿，Brian，謝謝你的提問。需要明確的是，我們對投資組合的審查是在九月之前就開始了。還沒完。它仍在進行中。顯然，我在 2024 年提到，我們確實剝離了五項業務，主要是在歐洲，總收入為 1.53 億美元，但利潤卻很少甚至沒有。

But once again, we're not done. There's, any time you want to exit a business, a market, a product line, there's always variables that can occur. And I'll just, I guess, stated that I would, I'm the kind of guy that's going to not tell you what we're doing, but show you once we're done. So it is ongoing and expect more.

但我們還沒完成。任何時候你想要退出一家企業、一個市場、一條產品線，總是會有些變數。我想，我只是想說，我是那種不會告訴你我們在做什麼，而是在完成後向你展示的人。因此它仍在進行中並且期待更多。

Okay. And then a follow-up on the margin opportunity in Europe. When you think longer term, you're kind of in that double digit, which has been great success. How should this improve, I guess, beyond 2025? Is there an opportunity where you continue to eke out some margin improvements? Or do you really reach a level somewhere down the road here that, is it 10.5% or 11%?

好的。然後跟進歐洲的利潤機會。如果你從更長遠的角度考慮，你會發現你的收入已經達到了兩位數，這已經是巨大的成功了。我想，2025 年以後這種情況會如何改善？您是否還有機會繼續努力提高利潤率？或者你真的會達到某個水平嗎，是 10.5% 還是 11%？

So Brian, I'll take that one. The numbers we haven't quoted exactly where we think we are. But I can tell you, Justin and I are very, very bullish about where we think that the market can go and the business can go in our European business.

那麼 Brian，我選擇這個。我們引用的數字並沒有準確地表明我們的立場。但我可以告訴你，賈斯汀和我對市場的發展方向以及我們歐洲業務的發展方向非常非常樂觀。

We're clearly several 100 basis points above many of our competitors, but we think that number can continue to grow for the next several years. What we talked about is about 30 to 40 basis points each year for the next several years. I wouldn't put a cap on that at 11%, 11.5%.

我們顯然比許多競爭對手高出數百個基點，但我們認為未來幾年這個數字還會持續成長。我們談論的是未來幾年每年約 30 到 40 個基點。我不會將其限制在 11%、11.5% 之間。

I think that number can continue to grow over the next at least three years and probably three to five as we start thinking about the work that's being done on the category management. as well as the overall portfolio management that we're doing in our European business. So I think double digits is solid for '25, and it continues to grow pretty nicely for the next several years.

我認為，當我們開始考慮在類別管理方面所做的工作時，這個數字在未來至少三年甚至三到五年內還可能繼續成長。以及我們在歐洲業務中所進行的整體投資組合管理。所以我認為 25 年保持兩位數的成長是穩固的，未來幾年還會繼續保持良好的成長動能。

Great. Thank you very much for taking the question.

偉大的。非常感謝您回答這個問題。

Thank you.

謝謝。

Gary Prestopino, Barrington Research.

巴林頓研究公司的加里‧普雷斯托皮諾 (Gary Prestopino)

Good morning, all. I just want to get some clarification here. There was, on the margins in North America and Europe. You said there was a onetime legal gain non-recurring in the quarter. How much of that contributed to what the 50 basis point increase in adjusted EBITDA margin?

大家早安。我只是想在此澄清一下。在北美和歐洲的邊緣地區有。您說本季有一次性非經常性合法收益。其中對調整後 EBITDA 利潤率增加 50 個基點的貢獻有多大？

Yes. So Gary, we're not going to talk specifically about the legal settlement, but what I'll give you is directionally, combined between the legal settlement, and we did have a brief cyber outage. If you look at North America's margins for the year, there's about 50 basis points for the year. So we ended up coming around 16.6% for the full year, about 50 basis points of that, we would consider non-recurring bring us down to a full year number around 16.1%.

是的。所以加里，我們不會具體談論法律解決方案，但我將給你提供方向性的信息，結合法律解決方案，而且我們確實遇到了短暫的網路中斷。如果你看看北美今年的利潤率，你會發現大約有 50 個基點。因此，我們最終將全年利率定在 16.6% 左右，其中約 50 個基點（我們認為非經常性支出）將使我們的全年利率降至 16.1% 左右。

Okay. And then you did outline, there was a 101 basis point impact on Europe in Q4. Was that the tax of last year? Was that the tax issue in Italy?

好的。然後您確實概述了，第四季度對歐洲產生了 101 個基點的影響。那是去年的稅嗎？這是義大利的稅收問題嗎？

No. There was a couple of items in 2023, that we had some severance costs and some other non-recurring items that showed up the VAT issue that we had that some of those is pretty much that 110 basis points. It was about 110 basis points of non-recurring. And then I talked about in the prepared remarks, there's about 70 basis points of mix 50, 50 between the portfolio actions and the good work the team is doing on simplifying the operations.

不。2023 年有幾項費用，其中包括一些遣散費和一些其他非經常性項目，這些項目顯示了我們的增值稅問題，其中一些項目幾乎是 110 個基點。非經常性損益約為110個基點。然後我在準備好的評論中談到，投資組合行動和團隊在簡化營運方面所做的良好工作之間大約有 70 個基點的比例為 50、50。

Okay. And then just a question on the EV side. I mean I realize it's very early stages. But anything you're doing on the EV side? Is it mostly collision repair for body parts, or are you seeing other areas where you can take salvage off these EVs and put them into the recycled channel in terms of parts.

好的。然後只是一個關於電動車方面的問題。我的意思是我意識到現在還處於非常早期的階段。但是您在電動車方面做了什麼嗎？主要是車身部件的碰撞修復嗎，還是說您是否看到其他可以從這些電動車上回收零件並將其放入回收渠道的領域？

Yes. On the EV side, we are a couple of different initiatives that are underway. First, if you remember, we got into the recycling or remanufacturing of hybrid batteries. So think of nickel metal hydride and then, obviously, the technology migrated over to lithium-ion. We are also investing in the remanufacturing of full battery electric vehicles. We've had a couple that have been completed, and we're in the process of testing right now.

是的。在電動車方面，我們正在進行一些不同的舉措。首先，如果您還記得的話，我們曾從事混合電池的回收或再製造業務。因此，想想鎳氫電池，然後，顯然，該技術轉移到了鋰離子。我們也投資了純電動車的再製造。我們已經完成了幾個，現在正在測試中。

In addition to your question around a salvage vehicle that's electric and we bring it in, obviously, there's collision parts that we can sell off of that. Most of the batteries today are getting recycled and shredded, getting fed back into a new battery production. I mean obviously, there's not that many electric vehicles in the road as a percentage.

除了您關於電動報廢車輛的問題外，我們當然還可以出售其中的碰撞部件。如今，大多數電池都被回收、粉碎，然後重新投入新電池的生產。我的意思是，顯然道路上的電動車比例並不多。

And in addition, those batteries are typically lasting seven, eight years, so there's not a lot of demand and there won't be for several years. But there are things that, once again, were [bets] that we're placing to make sure that when the opportunity comes out, it is an opportunity and not a headwind for us

此外，這些電池的使用壽命通常為七、八年，因此需求量不是很大，而且幾年內也不會有太大需求。但有些事情，我們再一次下了賭注，以確保當機會出現時，對我們來說是一個機會，而不是逆風

Okay. And then lastly, if I could just sneak one more in. You mentioned something about the collision claims being CCC's collision claims were down a certain amount in Q4, but there was a couple of puts and takes around that. Could you just go over that? Yes, 6% repair claims. You mentioned there were some puts and takes as it regard to your business.

好的。最後，如果我可以再偷偷地再加一個的話。您提到了有關碰撞索賠的情況，CCC 的碰撞索賠在第四季度有所下降，但也出現了一些波動。你能再講一下嗎？是的，6% 的維修索賠。您提到，在您的業務方面存在一些利弊。

Specific to claims, yes, they were down roughly 6% for Q4. I guess we were kind of talking about on some of the puts and takes, some of the things that we're seeing softening, some of the slowdown of the headwinds that we were facing in 2024.

具體到索賠，是的，第四季度索賠下降了約 6%。我想我們正在談論一些利弊，一些我們看到的軟化因素，以及我們在 2024 年面臨的一些逆風的放緩。

They haven't, all of a sudden, January 1 hasn't rolled around and those headwinds have gone. We just anticipate that those are slowing down and those were, the used car pricing that was on a continued decline in 2024, we're starting to see that flatten out and go positive.

但並沒有，突然之間，1 月 1 日還沒到來，那些逆風就消失了。我們只是預計這些趨勢會放緩，而二手車價格在 2024 年將繼續下跌，我們開始看到它趨於平穩並呈現積極態勢。

In addition, the large increase in insurance rates that were done in 2024 are kind of anniversarying out. So that should moderate and hopefully, we'll start to see some improvements in the back half of the year, as Rick mentioned (inaudible).

此外，2024 年實現的保險費率大幅上漲也即將結束。因此這種情況應該會有所緩和，希望我們能在今年下半年開始看到一些改善，就像 Rick 提到的那樣（聽不清楚）。

(multiple speakers) to the prepared remarks that Justin talked about, what he was talking about for volumes year-over-year, don't forget the UAW strike, we got a benefit in 2023 on the volumes. So when he was talking about some of the puts and takes you're saying the year-over-year we would have a down, a hit related to the UAW strike. And then we also had the hurricanes that happened early in 2024. So there's a couple of items that impacted revenues year-over-year as well.

（多位發言者）賈斯汀在準備好的發言中談到了銷量同比變化，別忘了 UAW 罷工，我們在 2023 年的銷量上獲得了收益。所以，當他談到一些利弊時，您說與去年同期相比，我們的業績會有所下降，這是與 UAW 罷工相關的打擊。然後我們也經歷了 2024 年初的颶風。因此，有幾個因素也對同比收入產生了影響。

Okay, that's what I was looking for. Thank you.

好的，這就是我要找的。謝謝。

Okay, thanks.

好的，謝謝。

Brett Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

Hey, good morning guys. Follow up on the CCC questions. Could you give us the total loss rate in the fourth quarter? Is that year-over-year change moderating?

嘿，大家早安。跟進 CCC 問題。您能告訴我們第四季的總虧損率嗎？與去年同期相比，這種變化是否有所緩和？

I don't have the exact number in front of me. I know the total loss rates slightly did go up in '24 as once again, primarily in our opinion driven by the used car pricing. But with the used car pricing starting to moderate and increase, that should alter the total loss rates going forward. In our long-term model, Brett, we have a moderate growth and total loss for a while. So that's kind of factored into our long-term thesis that the collision business is still good for us long term.

我面前並沒有確切的數字。我知道 24 年的總損失率確實略有上升，我們認為這主要是受二手車價格的影響。但隨著二手車價格開始緩和並上漲，這應該會改變未來的總損失率。布雷特，在我們的長期模型中，我們暫時經歷了適度的成長和總損失。所以這在某種程度上考慮到了我們的長期論點，即碰撞業務對我們來說長期以來仍然是有利的。

Okay. And a question on the private label program in Europe. I think you talked about percentages use. What is it as a percent of revenues? And could you, maybe give us some color as to what the gross margin difference is in private label versus your national brand product?

好的。還有一個關於歐洲自有品牌計畫的問題。我認為您談論的是百分比的使用。它佔收入的百分比是多少？您能否向我們介紹一下自有品牌產品和國家品牌產品的毛利率差異是多少？

Yes. The percentage of revenue is circa 20%. We see the opportunity to grow that to 30%. We have some markets today that are in at 30%, if not a little bit more than that, Brett. Historically, we think, I mean historically, we've seen a 25% increase in the margin. So apply 25% factor to the actual gross margin percentage, meaning if it's 50%, it goes up to, actually use a better number. If it's 40%, it goes to 50%, but we typically see a 25% increase in the actual percentage rate.

是的。收入百分比約20％。我們看到了將其增長至 30% 的機會。布雷特，我們目前有一些市場的佔有率達到了 30%，甚至更高。從歷史上看，我們認為，我的意思是從歷史上看，我們已經看到利潤率增加了 25%。因此，將 25% 的係數應用到實際毛利率百分比中，這意味著如果它是 50%，那麼它實際上會上升到更好的數字。如果是 40%，則會上升到 50%，但我們通常會看到實際百分比利率增加 25%。

Okay. And this is a housekeeping number. I guess if tariffs and who knows what happens with tariffs. But when you look at the OE pet product in sold North America collision. What percentage you said less than 5% of your product is coming out of Canada, Mexico, China. What percentage of the OE parts are coming out of Mexico or Canada?

好的。這是一個家政號碼。我猜如果徵收關稅，誰知道關稅會發生什麼事。但是當你看到在北美銷售的OE寵物產品發生碰撞時。您說的不到 5% 的產品來自加拿大、墨西哥和中國，佔比是多少？有多少比例的 OE 零件來自墨西哥或加拿大？

I don't necessarily have the full answer to that. I mean I know when they produce a vehicle, they mark on there what percentage is produced domestically, but they never break down whether that's an engine headlight hoods or vendors. There is definitely, they produce more parts in Mexico or Canada or China than what we do percentage-wise, I would say. So if it impacts all imports from those three countries, we actually think it's a benefit.

我對此並不一定有完整的答案。我的意思是，我知道當他們生產車輛時，他們會標出有多少百分比是在國內生產的，但他們從不細分那是發動機前燈罩還是供應商。肯定有，我想說，從百分比上看，他們在墨西哥、加拿大或中國生產的零件比我們在墨西哥、加拿大或中國生產的零件要多。因此，如果它影響到這三個國家的所有進口，我們實際上認為這是一個好處。

Great. Thank you.

偉大的。謝謝。

Yeah.

是的。

Thank you. We have no further questions, so I'll pass you back to Justin for any closing comments

謝謝。我們沒有其他問題了，所以我會把你們交還給賈斯汀，請他發表最後評論

Thank you, operator, and everyone, thank you for joining the call this morning, and we look forward to speaking to you in April when we report on our first quarter 2025 results. Thanks, and have a good afternoon.

謝謝接線員和大家，感謝您今天早上參加電話會議，我們期待在 4 月報告 2025 年第一季業績時與您交談。謝謝，祝您下午愉快。

This concludes today's call. Thank you for joining. You may now disconnect your line.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路了。