POMONA, Calif., Aug. 1, 2002 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported strong fiscal first quarter results, supported by a 10 percent increase in same store sales.
Net income for the fiscal quarter of fiscal 2003, which ended June 28, 2002, jumped 67 percent to $3.5 million, or $0.23 per diluted share, from $2.1 million, or $0.15 per diluted share, before cumulative effect of a change in accounting principle, a year ago.
For the same period, net sales increased 16.6 percent to a record $106.7 million from $91.5 million a year earlier. Same store sales increased approximately 10 percent over the same period a year earlier. Sales for the current fiscal quarter included results from six acquisitions and four greenfield operations that were completed or opened after the first quarter of fiscal 2002.
The net loss of $26.6 million in the prior- year period, was due to a $28.7 million charge (net of tax) related to the cumulative effect of a change in accounting principle, made retroactive to the first quarter of fiscal 2002, as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No. 142) "Goodwill and Other Intangible Assets."
"Operating results for the quarter represent the sixth consecutive year-over-year increase in quarterly operating performance for Keystone. Several key factors contributed to Keystone's solid performance, including more frequent specification of aftermarket parts by certain insurance companies and a growing acceptance of Keystone's private label Platinum Plus brand of products," said Charles J. Hogarty, president and chief executive officer.
He noted that improved product mix and purchasing and a better pricing environment resulted in a higher gross margin.
"Keystone's Platinum Plus product line continues to enjoy increasing acceptance by both insurers and collision repair professionals and it has become the industry standard for aftermarket collision replacement parts. As the aftermarket collision replacement parts industry continues to gain momentum, we are optimistic about Keystone's prospects and the outlook for the balance of fiscal 2003," Hogarty added.
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, located in 37 states, Vancouver, Canada and Tijuana, Mexico. 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, time and potential disruption of operations relating to the implementation of a new enterprise management information system which began in July 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) 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 six fiscal quarters and the increased operating margin enjoyed during the last quarter, 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 29, 2002, 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
Weeks Ended Weeks Ended
June 28, 2002 June 29, 2001
------------ ------------
Net sales $ 106,724 $ 91,527
Cost of sales 60,250 52,653
------------ ------------
Gross profit 46,474 38,874
Operating expenses:
Selling and distribution 31,815 28,130
General and administrative 9,042 7,463
------------ ------------
Operating income 5,617 3,281
Other income 423 523
Interest expense (131) (229)
------------ ------------
Income before income taxes and
cumulative effect of a change
in accounting principle 5,909 3,575
Income taxes 2,364 1,458
------------ ------------
Income before cumulative effect
of a change in accounting principle 3,545 2,117
Cumulative effect of a change in
accounting principle
(net of tax of $4,835) -- (28,691)
------------ ------------
Net income (loss) $ 3,545 $ (26,574)
============ ============
Per Common Share:
Income before cumulative effect
of a change in accounting principle:
Basic $ 0.24 $ 0.15
Diluted $ 0.23 $ 0.15
Cumulative effect of a change
in accounting principle
(net of tax):
Basic $ -- $ (2.00)
Diluted $ -- $ (1.97)
Net income (loss) per share:
Basic $ 0.24 $ (1.85)
============ ============
Diluted $ 0.23 $ (1.82)
============ ============
Weighted average common
shares outstanding:
Basic 14,597,000 14,367,000
============ ============
Diluted 15,155,000 14,567,000
============ ============
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
June 28, 2002 March 29, 2002
--------- ---------
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,964 $ 3,652
Accounts receivable, net of
allowance of $1,344 at June
2002 and $1,046 at March 2002 34,200 33,524
Inventories, primarily
finished goods 89,705 81,503
Other current assets 7,206 8,090
--------- ---------
Total current assets 135,075 126,769
Plant, property and equipment, net 19,752 19,344
Goodwill 2,178 1,805
Other intangibles, net of
accumulated amortization
of $2,738 at June 2002 and
$2,755 at March 2002 1,275 1,397
Other assets 10,339 10,371
--------- ---------
Total Assets $ 168,619 $ 159,686
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 12,160 $ 6,832
Accounts payable 14,743 14,589
Accrued liabilities 9,553 9,889
Current portion of
long-term debt 60 75
--------- ---------
Total current liabilities 36,516 31,385
Long-term debt, less current
portion 8 14
Other long-term liabilities 1,832 1,973
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
14,616,000 at June 2002 and
14,583,000 at March 2002 80,787 80,383
Warrant 236 236
Additional paid-in capital 1,864 1,864
Retained earnings 47,917 44,372
Accumulated other comprehensive
loss (541) (541)
--------- ---------
Total shareholders' equity 130,263 126,314
--------- ---------
Total liabilities and
shareholders' equity $ 168,619 $ 159,686
========= =========
NOTE: The balance sheet at March 29, 2002 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.