POMONA, Calif., Feb. 8, 2002 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported results for its third quarter ended December 28, 2001, reflecting continued momentum in its insurance related aftermarket collision parts business.
Net income for the third quarter soared almost four fold to $2.8 million from $716,000 a year ago. Operating income for the same period climbed sharply to $4.4 million compared with $1.1 million a year earlier. Net sales for the third quarter increased 10.2 percent to $94.1 million versus $85.5 million last year.
For the nine months, net sales increased 7.7 percent to $274.4 million from $254.9 million a year ago. Net income was unchanged on a comparative basis as a result of a non-recurring charge of $6.8 million related to the write down of its investment in an enterprise-wide software conversion. Operating income, before the non-recurring charge, for the same period was $10.4 million, compared with $3.9 million a year earlier.
Charles J. Hogarty, president and chief executive officer, said, "Sales for the third quarter reflect continued momentum in our aftermarket collision parts business, including increased insurance company participation and growing market acceptance of Keystone's Platinum Plus private label products."
Hogarty noted that same-store sales for the third quarter and nine-month period increased approximately 9.5 percent and 7.0 percent, respectively, compared with a year ago. Gross margins for the third quarter improved to approximately 43 percent, as a result of better product mix and improved pricing.
He stressed Keystone's ongoing strategy to strengthen its distribution capabilities, citing its recent purchases of the aftermarket collision parts distribution businesses of P-G Products Inc., based in Cincinnati, Ohio; Indiana Distributors Incorporated, based in Elkhart, Indiana; and the wheel cover distribution business of I.W.C. International, Inc., based in Tampa, Florida.
The company recently opened a distribution facility in Oklahoma City and anticipates it will open a new distribution facility in Portland, Oregon during the fourth quarter of fiscal 2002. A greenfield operation in Raleigh, North Carolina is expected to open later in the year.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the nation.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by the company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors, including but not limited to the impact on the company as a result of (i) the termination of the installation of a new comprehensive enterprise software package and the special charge related thereto as well as the cost and time involved in implementing the new management information system contracted for in January 2002; (ii) the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal; (iii) the recent diminished value verdict in Georgia; (iv) the application of SFAS No. 142; and (v) the uncertainty involved in acquiring businesses and/or opening greenfield operations. In addition, there can be no assurance that the momentum in sales and net income experienced during the last year will be sustainable. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the company's business, see the Company's Form 10-K for the year ended March 30, 2001 on file with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except share and per share amounts)
(Unaudited)
Thirteen Thirteen Thirty-nine Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2001 2000 2001 2000
Net sales $ 94,149 $ 85,450 $ 274,410 $ 254,895
Cost of sales 53,463 49,481 157,043 147,467
----------- ----------- ----------- -----------
Gross profit 40,686 35,969 117,367 107,428
Operating
expenses:
Selling and
distribution 27,800 27,251 83,344 80,780
General and
administrative 8,454 7,632 23,664 22,747
Non-recurring -- -- 6,796 --
----------- ----------- ----------- -----------
Operating income 4,432 1,086 3,563 3,901
Other income 411 521 1,419 1,495
Interest expense,
net (117) (394) (550) (1,087)
----------- ----------- ----------- -----------
Income before
income taxes 4,726 1,213 4,432 4,309
Income taxes
expense 1,938 497 1,908 1,767
----------- ----------- ----------- -----------
Net income $ 2,788 $ 716 $ 2,524 $ 2,542
=========== =========== =========== ===========
Earnings per
share:
Basic $ 0.19 $ 0.05 $ 0.17 $ 0.18
=========== =========== =========== ===========
Diluted $ 0.19 $ 0.05 $ 0.17 $ 0.18
=========== =========== =========== ===========
Weighted
average shares
outstanding:
Basic 14,369,000 14,364,000 14,442,000 14,440,000
=========== =========== =========== ===========
Diluted 14,795,000 14,364,000 14,814,000 14,452,000
=========== =========== =========== ===========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
December 28, March 30, 2001
2001 (Note)
----------- --------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,906 $ 3,005
Accounts receivable, net of
allowance of $1,403 at
December 2001 and $1,029
at March 2001 31,176 29,702
Inventories, primarily
finished goods 81,719 82,499
Other current assets 8,964 8,470
-------- --------
Total current assets 124,765 123,676
Plant, property and equipment, net 16,749 21,270
Goodwill, net of accumulated
Amortization of $4,773 at
December 2001
and March 2001 33,771 33,531
Other intangibles, net of
accumulated amortization of
$2,627 at December 2001 and
$2,275 at March 2001 1,074 1,168
Other assets 4,163 4,111
-------- --------
Total Assets $180,522 $183,756
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 8,345 $ 14,880
Accounts payable 13,031 12,070
Accrued liabilities 7,332 8,293
Current portion of
long-term debt 37 40
--------- ---------
Total current liabilities 28,745 35,283
Long-term debt, less
current portion 22 49
Other long-term liabilities 1,968 2,483
Shareholders' Equity:
Preferred stock, no par value:
Authorized shares--3,000,000
None issued and outstanding -- --
Common stock, no par value:
Authorized shares--50,000,000
Issued and outstanding
shares 14,530,000 at
December 2001 and
14,359,000 at March 2001 79,903 78,581
Warrant 236 236
Additional paid-in capital 1,260 1,260
Retained earnings 68,929 66,405
Accumulated other
comprehensive loss (541) (541)
--------- ---------
Total shareholders' equity 149,787 145,941
--------- ---------
Total liabilities and
shareholders' equity $ 180,522 $ 183,756
========= =========
NOTE: The balance sheet at March 30, 2001 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.