Thank you, Joe, and good morning to everybody on the call. This morning I will provide some high level comments related to our performance in the quarter, and then Varun will dive into the financial details, including our banner margin and free cash flow performance, as well as our improved 2021 outlook, before I come back with a few closing remarks. Wow, we've come a long way over the past 12 months. A year ago at this time, the threat of the pandemic had become a tremendous and painful reality. Immediately, our teams got into action with a key focus across the entire organization to right-size the cost structure and maximize cash flow. In order to adjust to this new paradigm, our teams had to make some very difficult decisions to protect the long-term health of our company, and in the past three quarters have proven our ability to reset the cost structure of LKQ.
Our global leadership team firmly believed we would come out of the pandemic period stronger and a better organization, and our performance this past quarter absolutely confirms that belief.
Let me restate our key initiatives, which continue to be central to our culture and our objectives.
First, we will continue to integrate our businesses and simplify our operating model.
Second, we will continue to focus on profitable revenue growth and sustainable margin expansion.
Third, we will continue to drive high levels of cash flow, which in turn will give us the flexibility to maintain a balanced capital allocation strategy. And finally, we will continue to invest in our future.
As you can see from our results, our segment teams executed on each of these initiatives in the first quarter. Alongside these operating initiatives, the continued build out of a comprehensive ESG program is a key focus for the organization.
As promised during our last earnings call, on April 6, we released our inaugural Corporate Sustainability Report. This report validates our long-term commitment to enhancing our ESG practices and will serve as a guidepost for the further embedding of ESG principles throughout our global operations. Slide 16 of today's earnings deck provides a brief one page overview of the CSR report.
If you have not already done so, I would highly encourage you to visit our Web site and download a copy of the full CSR.
Now onto the quarter. Revenue for the first quarter was $3.17 billion, an increase of 5.7%. That's compared to $3 billion in the first quarter of 2020. Parts and services organic revenue in the first quarter of 2021 increased six-tenths of 1% on a reported basis and 2.2% on a per day basis.
While the net impact of acquisitions and divestitures decreased revenue by six-tenths of 1%, then foreign exchange rates increased revenue by 4.2%. Total parts and services revenue increased 4.2% in the quarter. The organic revenue growth for the quarter reflects the annualization of the initial pandemic impact last March. Through February, organic parts and services revenue was 4.4% lower on a per day basis. In March, organic parts and services revenue grew by 15.7% on a per day basis, recognizing we were coming off a lower comparable period. Other revenue grew 27% in the first quarter of 2021, driven by higher scrap steel and precious metal prices.
While consolidated revenue is still running below pre-COVID levels, net income for the first quarter was $266 million as compared to $146 million last year, an increase of 83% year-over-year. Diluted earnings per share for Q1 was $0.88, an increase of 83%. On an adjusted basis, net income in the first quarter was $286 million, a 62% increase year-over-year, while adjusted diluted earnings per share was $0.94, a 65% increase. Each of our segments achieved EBITDA margins well ahead of our expectations due to excellent execution, a continued focus on our cost structure and with respect to North America, tailwinds from scrap and precious metals pricing. When taken collectively, these strong performances allowed LKQ to record record consolidated segment EBITDA margins of 14.2% in the first quarter. This was a 350 basis point increase relative to the first quarter of last year.
Let's turn to some of the quarterly segment highlights. Slide 5 sets forth the monthly revenue trends for the quarter. And as you can see, all segments were positive in March on a per day basis. Obviously, during the tail end of February and the entire month of March, we were working from an easier comp. But we also benefited as mobility began to gain ground in certain markets.
Additionally, the penetration rate of the vaccine in the United States is encouraging. And as these trends gained ground in other key markets, we should begin to see a loosening of the stay-at-home mandates, and we would expect a gradual improvement in vehicle miles traveled, or VMT. According to the U.S. Department of Energy, at the end of the second week of April, fuel consumption was 71% above the prior year and just 3% below that same week of 2019. According to the Apple mobility index, the trend in driving trips in our European markets was down early in the year relative to the third and fourth quarter levels of 2020. But as we progress through Q1, the index rebounded, and by the third week of April, the index had increased 33% from the first week of January.
So there are clearly some green shoots of momentum in BMP around the globe, albeit we're still below pre-COVID levels.
Turning to North America. From Slide 6, you will note that organic revenue for parts and services for our North American segment declined 8.4% in the quarter on a reported basis and 7.0% on a per day basis.
While still down on a year-over-year basis, it is an improvement relative to Q4 of last year.
We continue to outpace the market in North America, especially when you consider that industry data suggests that collision and liability related repairable auto claims declined approximately 14% in the first quarter of 2021 compared to the prior period. Relative to the competitive landscape, we are confident that we are gaining market share from small salvage and aftermarket operators that are typically capital constrained and facing lower inventory levels due to product availability and cost inflation.
Our strong balance sheet gives us the ability to continue to invest in our North American business, including inventory replenishment and also in various technologies and programs to further enhance the efficiency of our operations, and the service experience for our customers. With capital constraints, many smaller competitors lack the flexibility to stay relevant and competitive.
During the first quarter, our North American operations benefited from the disruption to the OE component supply chain, which impacted OE’s ability to build major mechanical inventory. This lack of major mechanical inventory for the OEs combined with our robust levels of recycled and remanufactured engines and transmission products provided the opportunity for our North American business to gain share in the quarter.
Our salvage operations have been extremely judicious in their procurement efforts and selling more parts from the vehicles we procure, enabling us to have stronger fulfillment rates than the industry average. In North America during the first quarter, we continued our environmental stewardship efforts by processing 190,000 vehicles, resulting in, among other things, the recycling of 900,000 gallons of fuel, 491,000 gallons of waste oil, 482,000 tires and 176,000 batteries.
During the first quarter, we also processed approximately 282,000 tons of scrap steel.
Moving on to our European segment. Organic revenue for parts and services in the first quarter increased 30 basis points.
As the largest pure-play distributor of aftermarket automotive parts in Europe, this is a solid start to 2021 even in the face of continuing COVID lockdowns in several regions of Europe.
Our regional operations experienced varying revenue performance in the quarter with positive year-over-year performance in Germany, Benelux and Eastern Europe with some softness in the UK, and Italy continuing to drag on the overall performance of this segment. Specific to the UK, in addition to our two-step distribution business of mechanical service parts, we operate a few other businesses, including our collision parts and coatings businesses, which registered materially lower growth than our two-step mechanical parts distribution business in the first quarter.
Importantly, with our corporate wide focus on profitable revenue, we spent the past year rationalizing the footprint of our UK business, which eliminated over 40 unprofitable branches, resulting in a small negative impact on revenue, but a significant improvement in EBITDA margins. Revenue growth from our ongoing mechanical service parts operations was positive in the quarter, while our data indicates the overall UK market was down on a year-over-year basis. In total, we are delighted with the performance of our UK operations. Other items of note in Europe include the fact that we continue to add talent and expect the organization design elements of the 1 LKQ Europe program will be largely completed by the end of Q2. The Fource Central Distribution Center project remains right on track.
Our ERP implementation at Rhiag, Italy also remains on track for a Q2 go live, which will make it the first large platform company on our new European ERP system. And we continue to expand our payables optimization initiatives, which includes the vendor financing program.
Lastly on Europe, and consistent with our ESP programs, we recently launched an electric delivery vehicle trial for our UK and Republic of Ireland operations. The pilot will run for about six months, and will take into account the charging point infrastructure to identify branches with vans whose typical mileage is suited to the range and capability of an electric vehicle. LKQ is also considering pilot projects with fuel cell powered heavy trucks once those vehicles and filling stations become available.
Now let's move on to our specialty segment, which absolutely knocked the cover off the ball during the first quarter by reporting organic revenue growth of 30.9%. This represents the highest quarterly organic revenue growth since we bought this business in 2014, with Q4 of last year being the second highest quarter. The primary factor driving this tremendous performance is the ongoing demand for RVs and RV parts. The RV industry association's February 2021 survey of manufacturers determined that total RV shipments increased 30%, making it the best February RV unit shipment total on record. This is good for LKQ on a longer term basis as a larger RV part should lead to more RV part sales in the future. Also driving the specialty performance was the demand for light truck parts we offer, which during the first quarter increased 17% year-over-year, with strong demand for products installed on jeeps and pickup trucks. We believe that the third round of stimulus checks benefited our specialty business in the quarter. Across all of our segments, and like many others in vehicle parts distribution, we are witnessing some supply chain disruptions, which have led to incremental cost in freight, labor and cost of goods sold. Related to ocean freight, the container capacity constraints that we first experienced last fall continues to be a challenge.
Our supply chain teams across the globe are in constant communication with our suppliers, working to procure the products we need to maintain and grow our market share in each of our segments.
Importantly, we have witnessed minimal impact to our fulfillment and customer service levels and believe the inventory challenges are subsiding.
As it relates to inflationary risk, we remain cautious near term. But as we progress through the year, we are expecting a continuing pandemic recovery, which should benefit each of our operating segments. Again, we expect to see continued inflation related to freight, labor and cost of goods sold. That said, as witnessed throughout 2020 and in the first quarter of this year, we have a number of levers that we can pull to help offset these inflationary risk, including price. From a corporate development perspective, in the first quarter, we acquired a diagnostics business that provides various mobile diagnostic and programming services to professional collision and mechanical repair shops in Nebraska. By year end, this business will be fully integrated into our Elitek Vehicle Services brand.
We have a couple of other diagnostic transactions in the pipeline.
Finally, I previously noted several senior level additions to the European team in the quarter, which will lead our efforts in the areas of strategy, sales, logistics and supply chain, product pricing, and ecommerce. LKQ Europe is viewed by candidates as being a unique and extremely well positioned enterprise with an exciting future. And we've been able to attract great talent from across the European automotive industry and digital channels. At the corporate level during the first quarter, we brought on a new Senior Vice President of Human Resources to the executive team. Genevieve brings a wealth of experience in managing a large, hourly-based workforce and she has on-point experience in building programs focused on employee engagement and diversity and inclusion, key elements of our ESG initiatives. And I will now turn the discussion over to Varun, who will run through the details of the strong first quarter financial performance.