Keystone Automotive Industries, Inc. Reports Record Revenues for Fiscal Fourth Quarter and Year-End March 29, 2002


POMONA, Calif., June 4, 2002 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record revenues and improved operating results for its fourth quarter and fiscal year ended March 29, 2002.

Net sales for the fourth quarter of fiscal 2002 increased 11.3 percent to $107.9 million from $97.0 million a year ago. For the same period, net income was $4.1 million, or $0.28 per diluted share, compared with a net loss of $3.0 million, or $0.21 per diluted share, last year. The net loss for the fourth quarter of fiscal 2001 includes non-recurring charges totaling $7.1 million, most of which relates to a loss on the impairment of long-lived assets in accordance with Statement of Financial Accounting Standards (SFAS No. 121) "Accounting for the Impairment of Long Lived assets and for Long Lived assets to be disposed of."

Net sales for the fifty-two week period ended March 29, 2002, increased 8.6 percent to $382.3 million compared with $351.8 million in fiscal 2001. The company reported a net loss for fiscal 2002 of $22.0 million, or $1.48 per diluted share. The net loss is the result of a $28.7 million charge (net of tax) related to the cumulative effect of a change in accounting principle as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No.142) "Goodwill and Other Intangible Assets" and a $6.8 million non-recurring charge related to a write down of the company's investment in an enterprise-wide software conversion. The fiscal 2002 net loss compares to a net loss of $477,000, or $0.03 per diluted share a year earlier. The net loss in fiscal 2001 includes $7.1 million of non-recurring charges primarily relating to a loss recorded in accordance with SFAS No. 121. For fiscal 2002, net income before cumulative effect of change in accounting principle and the non-recurring charge would have been $10.7 million, or $0.72 per diluted share, as compared to net income before non-recurring charge for fiscal 2001 of $3.7 million, or $0.32 per diluted share adjusted for goodwill amortization.

"Fiscal 2002 was a turnaround year for the company, reflecting an increase in demand for aftermarket collision replacement parts by automobile insurance companies, continuing the sales momentum that began to build in late fiscal 2001," said Charles Hogarty, president and chief executive officer of Keystone Automotive Industries.

He noted that improved product mix and a better pricing environment resulted in slightly higher gross margins, which are expected to continue during fiscal 2003.

"Our Platinum Plus product line has gained tremendous acceptance with insurers and collision repair professionals and has become the industry standard for aftermarket collision replacement parts. As a result, Keystone is optimistic about the future as the aftermarket parts industry continues its solid growth," Hogarty said.

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 cost and time involved in implementing the new management information system contracted for in January 2002 and currently being implemented; (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) Keystone being named as an additional defendant in a class action in Philadelphia challenging the use of aftermarket parts in repairing an insured vehicle; 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 fiscal 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-Q for the quarter ended December 28, 2001 on file with the Securities and Exchange Commission.


            Condensed Consolidated Statements of Operations
           (In thousands, except per share and share amounts)
                              (Unaudited)

                       Thirteen     Thirteen    Fifty-two    Fifty-two
                        weeks        weeks       weeks         weeks
                        ended        ended       ended         ended
                       March 29,    March 30,   March 29,    March 30,
                         2002         2001        2002         2001
                         ----         ----        ----         ----
 Net sales          $ 107,864     $ 96,950   $ 382,274    $ 351,845
 Cost of sales         61,432       56,606     218,475      204,073
                     --------     --------    --------     --------
 Gross profit          46,432       40,344     163,799      147,772

 Operating expenses:
  Selling and
   distribution        30,932       29,389     114,276      110,170
  General and
   administration       9,152        7,409      32,816       30,155

      Non-recurring        --        7,104       6,796        7,104
                     --------     --------    --------     --------
 Operating income
  (loss)                6,348       (3,558)      9,911          343
 Other income             476          543       1,895        2,037
 Interest expense        (148)        (370)       (698)      (1,456)
                     --------     --------    --------     --------
 Income (loss)
  before income
   taxes and
    cumulative
     effect of
      change in
       accounting
        principle       6,676       (3,385)     11,108          924
 Income tax provision
  (benefit)             2,542         (366)      4,450        1,401
                     --------     --------    --------     --------
 Net income (loss)
  before cumulative
   effect of
    accounting 
     change           $ 4,134     $ (3,019)    $ 6,658       $ (477)
 Cumulative effect
  of change in
   accounting
    principle
     (net of tax)          --           --     (28,691)          --
                     --------     --------    --------     --------
 Net income (loss)    $ 4,134     $ (3,019)  $ (22,033)      $ (477)
                     ========     ========    ========     ========
 Per Common share:
  Income (loss)
   before
    cumulative
     effect of a
      change in
       accounting
        principle
      Basic           $ 0.29       $ (0.21)     $ 0.46      $ (0.03)
      Diluted         $ 0.28       $ (0.21)     $ 0.45      $ (0.03)
 Cumulative effect
  of a change in
   accounting
    principle
      Basic               --            --     $ (1.98)          --
      Diluted             --            --     $ (1.93)          --
 Net income (loss)
      Basic           $ 0.29       $ (0.21)    $ (1.52)     $ (0.03)
                     =======      ========    ========     ========
      Diluted         $ 0.28       $ (0.21)    $ (1.48)     $ (0.03)
                     =======      ========    ========     ========
 Weighted average
  shares
   outstanding:
      Basic       14,379,000    14,359,000  14,467,000  14,420,000
                  ==========    ==========  ==========  ==========
      Diluted     14,898,000    14,472,000  14,876,000  14,449,000
                  ==========    ==========  ==========  ==========


                  Keystone Automotive Industries, Inc.
                 Condensed Consolidated Balance Sheets
                 (In thousands, except share amounts)

                                      March 29, 2002   March 30, 2001
                                       (Unaudited)         (Note)
                                      --------------   --------------
                                ASSETS
                                ------
 Current Assets:
  Cash and cash equivalents 
                                  $        3,652      $       3,005
  Accounts receivable,
   net of allowance of $1,046 at
    March 2002 and $1,029 at
     March 2001                           33,524             29,702
  Inventories, primarily
   finished goods                         81,503             82,499
  Other current assets                     8,090              8,470
                                        --------           --------
       Total current assets              126,769            123,676
  Plant, property and
   equipment, net                         19,344             21,270
  Goodwill, net of
   accumulated amortization
    of $0 at March 2002 and
     $4,773 at March 2001                  1,805             33,531
  Other intangibles, net
   of accumulated amortization
    of $2,755 at March 2002 and
     $2,275 at March 2001                  1,397              1,168
      Other assets                        10,371              4,111
                                        --------           --------

      Total assets                $      159,686      $     183,756
                                        ========           ========


               LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities:
   Credit facility                     $    6,832      $      14,880
   Accounts payable                        14,589             12,070
   Accrued liabilities                      9,889              8,293
   Current portion of
    long-term debt                             75                 40
                                         --------           --------
      Total current
       liabilities                         31,385             35,283
   Long-term debt, less
    current portion                            15                 49
   Other long-term
    liabilities                             1,973              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
       14,583,000
      at March 2002 and 14,359,000
      at March 2001                        80,383             78,581
      Warrant                                 236                236
   Additional paid-in capital               1,865              1,260
   Retained earnings                       44,370             66,405
   Accumulated other
    comprehensive loss                       (541)              (541)
                                         --------           --------
   Total shareholders' equity             126,313            145,941
                                         --------           --------
   Total liabilities and
    shareholders' equity               $  159,686      $     183,756
                                         ========           ========

NOTE: The balance sheet at March 30, 2001 has been derived from the audited consolidated financial statements at the 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.



            

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