POMONA, Calif., Feb. 8, 2005 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record sales for its fiscal third quarter ended December 31, 2004.
Net sales for the fiscal third quarter increased 8.2 percent to a record $136.6 million compared with $126.3 million last year. Net income for the fiscal third quarter was $4.0 million, or $0.25 per diluted share compared with $4.5 million, or $0.29 per diluted share, a year ago.
Net sales for the nine months increased 12.2 percent to $405.2 million from $361.0 million in fiscal 2004. For the nine months, net income was $10.5 million, or $0.66 per diluted share, compared with $11.4 million, or $0.75 per diluted share, a year earlier. The nine-month period in fiscal 2005 contained 40 weeks compared with 39 weeks in fiscal 2004.
"Record sales for the quarter reflect continued strength of Keystone's Platinum Plus private label product line as well as increased utilization of aftermarket collision replacement parts by the collision repair industry," said Richard L. Keister, president and chief executive officer. He added that net income continues to be impacted by increases in selling, distribution and general administrative expenses over prior-year periods.
John Palumbo, Keystone's chief financial officer, indicated that sales of automotive body parts, including fenders, hoods, radiators, grilles, lights and other crash parts increased by 10.1 percent. Sales of new and recycled bumpers increased by 9.7 percent and sales of remanufactured wheels and related products climbed 8.5 percent over a year ago. These increases were offset primarily by decreases in sales of paint and related products.
Palumbo also noted that same store sales for the third quarter and nine-month period increased approximately six percent compared with a year ago, with an adjustment for the current fiscal nine-month period to reflect an additional week.
Gross margin for the third quarter was 43.8 percent compared with 44.0 percent last year. Impacting gross margin was a $600,000 reserve for excess and obsolete wheel inventories.
Keister highlighted Keystone's ongoing focus on leveraging the company's expanding distribution network and its acquisition during the quarter of Chambers Parts Distribution, headquartered in Manchester, Maine. The company continues to seek additional acquisitions.
"With the exception of our Canadian operations and the recent Chambers acquisition, we have completed our enterprise system rollout, however we still face significant work to refine and optimize the system to allow us to leverage the benefits," Keister said.
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 and the willingness of aftermarket lighting manufactures to insure compliance with federal standards. 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) on June 9, 2004 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.
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(Tables Follow)
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except share and per share amounts)
(Unaudited)
Thirteen Thirteen Forty Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
December 31, December 26, December 31, December 26,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net Sales $ 136,631 $ 126,277 $ 405,156 $ 361,040
Cost of Sales 76,819 70,717 229,128 203,679
----------- ----------- ----------- -----------
Gross Profit 59,812 55,560 176,028 157,361
Operating
Expenses:
Selling &
Distribution 40,379 37,101 121,479 107,801
General &
Administrative 13,166 11,360 39,169 32,020
----------- ----------- ----------- -----------
Operating
Income 6,267 7,099 15,380 17,540
Other Income 402 485 2,102 1,678
Interest
Expense (58) (188) (216) (528)
----------- ----------- ----------- -----------
Income Before
Income
Taxes 6,611 7,396 17,266 18,690
Income Taxes 2,599 2,889 6,810 7,316
----------- ----------- ----------- -----------
Net Income $ 4,012 $ 4,507 $ 10,456 $ 11,374
=========== =========== =========== ===========
Per Common
Share Income
Basic: $ 0.26 $ 0.30 $ 0.67 $ 0.76
=========== =========== =========== ===========
Diluted: $ 0.25 $ 0.29 $ 0.66 $ 0.75
=========== =========== =========== ===========
Weighted
average
common
shares
outstanding:
Basic: 15,699,000 15,064,000 15,597,000 14,901,000
=========== =========== =========== ===========
Diluted: 15,844,000 15,464,000 15,776,000 15,214,000
=========== =========== =========== ===========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
December 31, March 26,
2004 2004
---- ----
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,807 $ 3,176
Accounts receivable, net of
allowance of $1,114 at
December 2004 and $887 at
March 2004 48,239 44,005
Inventories, primarily
finished goods 113,901 107,221
Other current assets 7,837 11,532
------------ ------------
Total current assets 174,784 165,934
Plant, property and equipment,
net 32,384 30,652
Goodwill 11,109 9,662
Other intangibles, net of
accumulated amortization of
$3,776 at December 2004 and
$3,565 at March 2004 1,008 1,323
Other assets 8,528 8,342
------------ ------------
Total assets $ 227,813 $ 215,913
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 2,373 $ 10,000
Accounts payable 21,691 18,598
Accrued liabilities 15,828 14,477
Income tax liabilities 1,503 --
------------ ------------
Total current liabilities 41,395 43,075
Other long-term liabilities 872 1,311
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 15,750,000 at
December 2004 and
15,443,000 at March 2004,
at stated value 92,311 89,492
Restricted Stock 362 180
Additional paid-in capital 5,967 5,967
Retained earnings 87,297 76,841
Accumulated other
comprehensive loss (391) (953)
------------ ------------
Total shareholders'
equity 185,546 171,527
------------ ------------
Total liabilities and
shareholders' equity $ 227,813 $ 215,913
============ ============
Note: The balance sheet at March 26, 2004 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.