POMONA, Calif., Aug. 9, 2001 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported that net income for its first fiscal quarter ended June 29, 2001 rose 44 percent to $2.1 million, or $0.15 per diluted share, from $1.5 million, or $0.10 per diluted share, a year ago. Net sales for the same period increased 5.7 percent to $91.5 million from $86.6 million a year earlier.
Net income per diluted share for the June 2001 quarter includes $0.02 resulting from Keystone's early adoption of SFAS No. 142. If Keystone had adopted SFAS No. 142 at the beginning of fiscal 2001, net income per diluted share for the June 2000 quarter would have been $0.12. Under SFAS No. 142, effective March 31, 2001 Keystone will no longer amortize goodwill on its balance sheet and will immediately begin a review of all intangible assets for impairment.
Charles J. Hogarty, president and chief executive officer, said, "We are encouraged by the sales momentum that began during the second half of fiscal 2001 and its continuation through the first quarter of fiscal 2002, with same store sales increasing approximately 5.3% over the first quarter of last year.
"Keystone's sales increase reflects the return of some insurers to the use of certain aftermarket collision replacement parts. The return of these insurers highlights the economic value realized through a competitive free market and the related reductions in collision repair costs through the utilization of our products. The benefits from reducing the potential for an OEM collision parts monopoly are felt at all levels of the vehicle repair process. The consumer benefits through lower auto insurance premiums and lower costs for replacement parts for non-insured repairs. Insurance companies benefit through reduced claims costs. Collision repair shops benefit through an increase in the number of repairable vehicles."
Hogarty emphasized Keystone's commitment to providing the highest quality replacement parts to the collision repair industry. "We have demonstrated this commitment on a number of levels, including last year's introduction of the Keystone Platinum Plus brand of products and our focus on becoming ISO 9002 certified during this fiscal year. Both of these efforts, while expensive and time-consuming, have long-term benefits for the company. Subsequent to the end of the quarter, we completed an acquisition of AfterCrash in Baton Rouge, Louisiana. This acquisition complements our existing operations in Louisiana and will allow the company to expand AfterCrash's product line. We continue to evaluate acquisition opportunities to which would support our growth strategy," he said.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 113 distribution facilities, 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 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 (i) of the implementation of a new comprehensive enterprise software package for accounting, distribution and inventory planning (ii) from the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal, and (iii) if the review of all intangible assets under SFAS No. 142 reveals an impairment. 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 30, 2001 on file with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
June 29, June 30,
2001 2000
------------ ------------
Net sales $ 91,527 $ 86,612
Cost of sales 52,653 49,674
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Gross profit 38,874 36,938
Operating expenses:
Selling and distribution expenses 28,130 26,936
General and administrative 7,463 7,658
------------ ------------
Operating income 3,281 2,344
Other income 523 438
Interest expense (229) (297)
------------ ------------
Income before income taxes 3,575 2,485
Income taxes 1,458 1,019
------------ ------------
Net income $ 2,117 $ 1,466
============ ============
Earnings per share:
Basic $ 0.15 $ 0.10
============ ============
Diluted $ 0.15 $ 0.10
============ ============
Weighted average shares outstanding:
Basic 14,367,000 14,557,000
============ ============
Diluted 14,567,000 14,557,000
============ ============
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
June 29, 2001 March 31, 2001
(Unaudited) (Note)
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,395 $ 3,005
Accounts receivable, net of
allowance of $1,230 at June 2001
and $1,029 at March 2001 28,112 29,702
Inventories, primarily finished goods 83,834 82,499
Other current assets 8,518 8,470
------------ ------------
Total current assets 121,859 123,676
Plant, property and equipment, net 22,102 21,270
Goodwill, net of accumulated
amortization of $4,773 at June 2001
and $4,773 at March 2001 33,531 33,531
Other intangibles, net of accumulated
amortization of $2,400 at June 2001
and $2,275 at March 2001 1,050 1,168
Other assets 4,229 4,111
------------ ------------
Total assets $ 182,771 $ 183,756
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 12,452 $ 14,880
Accounts payable 11,685 12,070
Accrued liabilities 7,935 8,293
Current portion of long-term debt 39 40
------------ ------------
Total current liabilities 32,111 35,283
Long-term debt, less current portion 40 49
Other long-term liabilities 2,276 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
14,393,000 at June 2001 and
14,359,000 at March 2001 78,867 78,581
Warrant 236 236
Additional paid-in capital 1,260 1,260
Retained earnings 68,522 66,405
Accumulated other comprehensive loss (541) (541)
------------ ------------
Total shareholders' equity 148,344 145,941
------------ ------------
Total liabilities and
shareholders' equity $ 182,771 $ 183,756
============ ============
NOTE: The balance sheet at March 30, 2001 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.