POMONA, Calif., Aug. 12, 1999 (PRIMEZONE) - Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record consolidated sales and earnings for the first quarter ended July 2, 1999.
Net income for the fourteen week period jumped 42.4 percent to $5.5 million, or $0.33 per diluted share, compared with $3.9 million, or $0.26 per diluted share in the thirteen week period a year ago. Net sales for the first quarter of fiscal 2000 increased 45.1 percent to $101.4 million from $69.9 million for the first quarter last year.
Charles J. Hogarty, president and chief executive officer, said, "We are gratified to begin the new fiscal year with solid performance, and particularly delighted to reach a significant milestone by eclipsing the $100 million sales mark in one quarter.
"During the quarter we completed two acquisitions, one of which enhances our existing operations in Alabama and contributes additional bumper recycling capacity. The second acquisition added important geographic coverage in the Pacific Northwest and allows for further expansion opportunities."
He noted that Keystone is continuing its acquisition and start up strategy, with ongoing efforts to evaluate appropriate opportunities. "We believe our nationwide distribution network provides significant benefits to consumers, insurance companies, and collision repair facilities," Hogarty added.
He indicated that the company continues to repurchase its Common Stock in the open market. The Board recently increased the buyback program by an additional 500,000 shares bringing to 2,500,000 shares the aggregate buyback program. As of August 11, the company had repurchased approximately 1,845,000 shares of its Common Stock for an approximate aggregate amount of $33.0 million.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 112 warehouses, of which 21 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, auto glass and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 21,000 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 continued acceptance of aftermarket collision replacement parts, a successful resolution of the pending State Farm class action lawsuit, implementation of a new comprehensive enterprise software system and the Company's ability to find suitable acquisition candidates and acquire entities on terms favorable to the Company. 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 filings with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share amounts)
(Unaudited)
Fourteen Thirteen
Weeks Ended Weeks Ended
July 2, June 26,
1999 1998
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Net sales $ 101,381 $ 69,872
Cost of sales 56,475 39,534
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Gross profit 44,906 30,338
Operating expenses:
Selling and distribution expenses 28,574 19,548
General and administrative 7,657 4,786
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Operating income 8,675 6,004
Other income 686 440
Interest income (expense) (48) (11)
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Income before income taxes 9,313 6,433
Income taxes 3,818 2,573
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Net income $ 5,495 $ 3,860
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Earnings per share:
Basic $ 0.33 $ 0.26
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Diluted $ 0.33 $ 0.26
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Weighted average shares outstanding:
Basic 16,728,000 14,655,000
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Diluted 16,818,000 14,917,000
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CONTACT: Steven D. Stern/ Gary S. Maier
Pondel/Wilkinson Group
(310) 207-9300