Steady revenue from replacement market Recycled, refurbished, and remanufactured parts offer buyers less-costly alternatives Good geographic and product diversification Participates in a competitive and fragmented industry Consistent free operating cash flow (FOCF) Low capital spending requirements Organic investment expected for expansion Intermediate debt leverage S&P Global Ratings' stable outlook on LKQ Corp. reflects our belief that management will pace the company's future acquisitions such that it will maintain a debt leverage metric of less than 3.0x over the next 12 months. We could lower our ratings on LKQ if the company's debt-to-EBITDA metric remains above 3x or its FOCF-to-debt ratio falls below 15% on a sustained basis because of operating problems, loss of business, the company's inability to efficiently integrate
