POMONA, Calif., Aug. 4, 2005 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record sales for its fiscal 2006 first quarter ended July 1, 2005. Net sales for the 13-week 2006 fiscal quarter reached a record $144.8 million compared with $141.1 million last year-- an increase of 2.6 percent. After adjusting for an additional week in the same quarter a year earlier, the increase was 10.5 percent.
Net income for the fiscal first quarter climbed 34.5 percent to $4.7 million, or $0.30 per diluted share, from $3.5 million, or $0.22 per diluted share, a year ago. Prior-year results were restated to include an expense of $897,000 as a result of the SFAS No. 13 lease expense adjustment. Excluding the SFAS No. 13 adjustment, prior-year net income as originally reported was $0.26 per diluted share, 15.4 percent higher than the restated results.
"Overall results for the quarter slightly exceeded our internal expectations. With the exception of lighting, we experienced strong sales momentum in our core product categories. Same store sales growth of 9.5 percent (after adjusting for the additional week in the prior-year period) is the strongest we have seen in several quarters and I believe validates our short-term strategy of having enough inventory available to service customers as we address our supply chain reengineering. I am also pleased to report that our two largest headlight suppliers and CAPA, an independent certifying agency, have agreed on procedures to begin certification. We believe that light applications, although limited, will be available during the second half of this year," said Richard L. Keister, president and chief executive officer.
Gross margin for the first quarter was 44.3 percent compared with 43.4 percent last year. The gross margin improvement is the result of pricing and improved mix.
Keystone has now completed the company's domestic enterprise system rollout. "With the domestic portion of this project now behind us, we can concentrate on opportunities to leverage the company's expanding distribution network by strengthening our inventory systems, processes and improving and enhancing IT systems," Keister said. He noted that during the quarter Keystone added to its distribution capabilities in Missouri with the completion of a small acquisition in Southwest Missouri. The company is continuing to seek additional acquisitions.
Teleconference and Web Cast
Richard L. Keister, president and chief executive officer, and John M. Palumbo, chief financial officer, will host an investor conference call today at 11:00 a.m. Pacific Time to discuss the company's financial results and operations for the fiscal year. The call will be open to all interested investors either through a live audio Web broadcast via the Internet at www.keystone-auto.com and www.vcall.com, or live by calling (877) 440-9648 with call ID number 8169890. For those who are not available to listen to the live broadcast, the call will be archived for two weeks on both Web sites. A telephone playback of the conference call will also be available from 2:00 p.m. Thursday, August 4 through 9:00 p.m. Tuesday, August 9 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 8169890.
About Keystone
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 129 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada. 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 United States and Canada.
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 actions which have been, or in the future may be, taken by insurance companies with respect to aftermarket lighting products. Reference is also made to the Cautionary Statements set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission on June 15, 2005 for additional risks and uncertainties facing 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.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except share and per share amounts)
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
July 1, July 2, 2004
2005 (Restated)
------------ ------------
(Unaudited) (Unaudited)
Net Sales $ 144,781 $ 141,117
Cost of Sales 80,628 79,912
------------ ------------
Gross Profit 64,153 61,205
Operating Expenses:
Selling and Distribution 43,499 42,588
General and Administrative 13,454 13,634
------------ ------------
Operating Income 7,200 4,983
Other Income 680 896
Interest Expense (81) (95)
------------ ------------
Income Before Income Taxes 7,799 5,784
Income Taxes 3,077 2,274
------------ ------------
Net Income $ 4,722 $ 3,510
============ ============
Per Common Share
Income
Basic: $ 0.30 $ 0.23
============ ============
Diluted: $ 0.30 $ 0.22
============ ============
Weighted average common
shares outstanding:
Basic: 15,877,000 15,469,000
============ ============
Diluted:
15,991,000 15,766,000
============ ============
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
July 1, April 1,
2005 2005
------------ ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,881 $ 4,054
Accounts receivable, net
of allowance of $1,205 at
July 2005 and $1,270 at
April 2005 48,747 49,719
Inventories, primarily
finished goods 126,137 119,679
Other current assets 11,263 12,018
------------ ------------
Total current assets 192,028 185,470
Plant, property and
equipment, net 30,536 31,079
Goodwill 11,609 11,309
Other intangibles, net of
accumulated amortization
of $3,936 at July 2005 and
$3,851 at April 2005 923 925
Other assets 6,385 5,801
------------ ------------
Total assets $ 241,481 $ 234,584
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 1,081 --
Accounts payable 23,915 25,950
Accrued liabilities 16,613 14,274
Income Tax Liabilities 515 --
------------ ------------
Total current liabilities 42,124 40,224
Other long-term
liabilities 2,542 2,583
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 15,905,000 at
July 2005 and
15,839,000 at April
2005, at stated value 93,499 93,244
Restricted Stock 562 460
Additional paid-in capital 7,695 7,695
Retained earnings 95,823 91,101
Accumulated other
comprehensive loss (764) (723)
------------ ------------
Total shareholders'
equity 196,815 191,777
------------ ------------
Total liabilities and
shareholders' equity $ 241,481 $ 234,584
============ ============
Note: The balance sheet at April 1, 2005 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.