POMONA, Calif., June 8, 2006 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record earnings and sales for its fourth quarter and fiscal year ended March 31, 2006.
Net income for the fiscal fourth quarter increased 74.0 percent to $7.6 million, or $0.46 per diluted share, from $4.3 million, or $0.27 per diluted share, a year ago. Net sales for the same period climbed 18.0 percent to $179.9 million from $152.5 million last year.
For the full fiscal year, net income jumped 56.1 percent to $22.3 million, or $1.38 per diluted share, from $14.3 million, or $0.90 per diluted share last year. Net sales for the fiscal year climbed 12.7 percent to $628.3 million from $557.7 million in fiscal 2005.
Same store sales growth for the fourth quarter and fiscal year were 11.6 percent and 11.3 percent (adjusted to reflect the 53-week period a year ago), respectively.
"Fiscal 2006 was an outstanding year for Keystone. Our results for fiscal 2006 reflect, among other things, improved fulfillment rates to our customers, improved operating efficiencies, increased momentum within the aftermarket collision repair industry and the dedication of the Keystone team to continuous improvement," said Richard L. Keister, president and chief executive officer.
Keister noted that the company's acquisition in October 2005 of Veng USA, a provider of generic collision parts in New England, contributed to the company's solid performance. He added that in April, the company successfully converted the Veng locations to Keystone's ERP systems and processes.
Subsequent to its fiscal year end, Keystone announced its intention to relocate some of the company's senior executives to new offices in Nashville, Tennessee, with a majority of the company's accounting, IT and marketing operations remaining in California. Select corporate offices relocating to Nashville include the chief executive officer, the chief financial officer, and the chief people officer. As previously indicated, the decision to relocate the offices of certain corporate executives to Nashville reflects the strategic evolution of Keystone. "With more than 3,700 team members located across the United States and more than half of the company's operations east of the Mississippi River, the practical benefits of relocating the senior team to a central geographic location are clearly significant," Keister added.
Teleconference and Web Cast
Richard L. Keister, president and chief executive officer, and Jeff Gray, 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 (domestic) or (706) 679-0668 (international) with call ID number 9840183. 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. PDT Thursday, June 8 through 9:00 p.m. Tuesday, June 13 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 9840183.
About Keystone
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 136 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 ability to achieve the initiatives in place for fiscal 2007, the impact of increased competition and the aggressive actions being taken by certain car manufacturers to negatively impact the aftermarket collision replacement parts industry, 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 the use of aftermarket products in the repair of vehicle, and the impact of moving the company's chief executive offices to Nashville. 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(SEC) for the fiscal year ended April 1, 2005 and in Part II,Item 5 of its Form 10-Qs filed with the SEC thereafter 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.
(Tables Follow)
KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Thirteen Thirteen Fifty-Two Fifty-Three
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
March 31, April 1, 2005 March 31, April 1,
2006 (restated) 2006 2005
--------- --------- --------- ---------
Net Sales $ 179,939 $ 152,549 $ 628,328 $ 557,705
Cost of Sales 97,914 85,663 346,362 314,792
--------- --------- --------- ---------
Gross Profit 82,025 66,886 281,966 242,913
Operating
Expenses:
Selling &
Distribution 54,171 45,345 189,665 167,721
General &
Administrative 15,056 15,089 56,732 54,258
--------- --------- --------- ---------
Operating Income 12,798 6,452 35,569 20,934
Other Income 255 778 2,243 2,881
Interest Expense (304) (43) (770) (259)
--------- --------- --------- ---------
Income Before
Income Taxes 12,749 7,187 37,042 23,556
Income Taxes 5,186 2,841 14,784 9,296
--------- --------- --------- ---------
Net Income $ 7,563 $ 4,346 $ 22,258 $ 14,260
========= ========= ========= =========
Per Common Share
Income
Basic: $ 0.47 $ 0.28 $ 1.39 $ 0.91
========= ========= ========= =========
Diluted: $ 0.46 $ 0.27 $ 1.38 $ 0.90
========= ========= ========= =========
Weighted average
common shares
outstanding:
Basic: 16,157 15,782 16,000 15,642
========= ========= ========= =========
Diluted: 16,311 15,915 16,095 15,787
========= ========= ========= =========
Note: The preliminary condensed consolidated statements of income have
been prepared on a basis consistent with the company's previously
prepared statements of income filed with the Securities and Exchange
Commission for its prior quarter and annual reports, but do not
include the footnotes required by generally accepted accounting
principles for complete financial statements.
KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, April 1,
2006 2005
--------- ---------
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,733 $ 4,054
Accounts receivable, net of allowance
of $935 at March 2006 and $1,269
at April 2005 56,774 49,719
Inventories, primarily finished goods 128,458 119,679
Other current assets 17,137 12,018
--------- ---------
Total current assets 207,102 185,470
Plant, property and equipment, net 33,713 31,079
Goodwill 39,369 11,309
Other intangibles, net of accumulated
amortization of $1,544 at March 2006 and
$3,851 at April 2005 1,402 925
Other assets 7,107 5,801
--------- ---------
Total assets $ 288,693 $ 234,584
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 9,544 $ --
Accounts payable 35,310 25,950
Accrued liabilities 19,519 14,274
--------- ---------
Total current liabilities 64,373 40,224
Other long-term liabilities 1,373 2,583
Shareholders' Equity:
Preferred stock, no par value:
Authorized shares--3,000
None issued and outstanding -- --
Common stock, no par value:
Authorized shares--50,000
Issued and outstanding shares 16,269
at March 2006 and 15,839 at
April 2005, at stated value 97,956 93,244
Restricted Stock 1,154 460
Additional paid-in capital 10,470 7,695
Retained earnings 113,359 91,101
Accumulated other comprehensive loss 8 (723)
--------- ---------
Total shareholders' equity 222,947 191,777
--------- ---------
Total liabilities and
shareholders' equity $ 288,693 $ 234,584
========= =========
Note: The preliminary condensed consolidated balance sheets have been
prepared on a basis consistent with the company's previously prepared
balance sheets filed with the Securities and Exchange Commission for
its prior quarter and annual reports, but do not include the
footnotes required by generally accepted accounting principles for
complete financial statements.