POMONA, Cailf., Feb. 13, 2001 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported net income for fiscal third quarter ended December 29, 2000 of $716,000, or $0.05 per diluted share, on net sales of $85.5 million, compared with net income of $1.3 million, or $0.09 per diluted share, on net sales of $86.2 million for the same period last year.
Net income for the 39-week period year to date was $2.5 million, or $0.18 per diluted share, on net sales of $254.9 million, compared with net income of $10 million, or $0.62 per diluted share, on net sales of $280 million for the 40-week period of the previous year.
Charles J. Hogarty, president and chief executive officer, said: "We are encouraged by the results of the third quarter. In particular, the month of December was very strong in most markets and that strength has carried over through January. The improved business climate is generally attributable to two factors:
-- Most importantly, we have begun to feel the impact of certain auto
insurers once again beginning to write aftermarket parts on
collision repair estimates. This confirms our belief in the
economic value provided by high quality aftermarket collision
replacement parts.
-- Much of the country has experienced severe winter weather
conditions for the first time in three years.
Gross margins were negatively impacted primarily as a result of two factors: In response to the fact that insurers were writing less aftermarket parts on estimates, the Company emphasized the sale of non-affected product lines including paint, paint supplies, radiators, condensers, wheels and recycled bumpers. Certain products, primarily paint and related supplies have lower gross margins. In addition, margins were pressured by price competition, which is directly related to lower volumes industry-wide. We are continuing to adjust our pricing and manage our costs in an effort to regain historical gross margins.
While expenses were generally in line with expectations, the Company did incur higher costs related to:
-- Increased fuel costs of $189,000 for the quarter and $862,000
year to date.
-- Advertising costs of approximately $349,000 related to the
Platinum Plus rollout.
We expect the last quarter of the year and next year to build on the momentum established at the end of the third quarter."
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 success of the company's consolidation program, the acceptance of aftermarket collision replacement parts by insurance companies, a successful resolution of the pending appeal of the judgment in the State Farm class action lawsuit, a successful resolution of other pending lawsuits challenging the use of aftermarket parts, the cost related to the implementation of a new comprehensive enterprise software system and the ability of the company to increase margins to historical levels.. 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 filings with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
December 29, March 31,
2000 2000
(Unaudited) (Note)
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,978 $ 2,884
Accounts receivable, net of allowance
of $1,229 at December 2000
and $1,145 at March 2000 28,526 27,644
Inventories, primarily finished goods 85,440 80,176
Other current assets 6,896 7,317
-------- --------
Total current assets 122,840 118,021
Plant, property and equipment, net 25,848 23,589
Goodwill, net of accumulated
amortization of $4,386 at
December 2000 and 3,274 at March 2000 33,962 35,204
Other intangibles, net of accumulated
amortization of $2,171 at
Decmber 2000 and $3,123 at March 2000 1,209 1,647
Other assets 4,951 5,356
-------- --------
Total assets $188,810 $183,817
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 19,932 $12,500
Accounts payable 12,435 12,693
Accrued liabilities 5,112 6,559
Current portion of long-term debt 149 117
-------- --------
Total current liabilities 37,628 31,869
Long-term debt, less current portion 58 68
Other long-term liabilities 1,624 1,685
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 14,359,000
At December 2000 and 14,892,000
At March 2000 78,581 81,817
Warrant 236 236
Additional paid-in capital 1,260 1,260
Retained earnings 69,423 66,882
-------- --------
Total shareholders' equity 149,500 150,195
-------- --------
Total liabilities and
shareholders' equity $188,810 $183,817
======== ========
NOTE: The balance sheet at March 31, 2000 has been derived from the
audited consolidated financial statements at the date but does not
include all of the information and footnotes required by generally
accepted in the United States accounting principles for complete
financial statements.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share and share amounts)
(Unaudited)
Thirteen Thirty-nine Forty
Weeks Ended Weeks Ended Weeks Ended
December 29, December 31, December 29, December 31,
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net sales $ 85,450 $ 86,197 $ 254,895 $ 280,079
Cost of sales 49,481 48,970 147,467 158,663
----------- ----------- ----------- -----------
Gross profit 35,969 37,227 107,428 121,416
Operating expenses:
Selling and
distribution
expenses 27,251 27,226 80,780 82,648
General and
administrative 7,632 7,971 22,747 23,194
----------- ----------- ----------- -----------
Operating income 1,086 2,030 3,901 15,574
Other income 521 564 1,495 1,883
Interest expense (394 (328) (1,087) (469)
----------- ----------- ----------- -----------
Income before
income taxes 1,213 2,266 4,309 16,988
Income taxes 497 929 1,767 6,965
----------- ----------- ----------- -----------
Net income $ 716 $ 1,337 $ 2,542 $ 10,023
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.05 $ 0.09 $ 0.18 $ 0.62
=========== =========== =========== ===========
Diluted $ 0.05 $ 0.09 $ 0.18 $ 0.62
=========== =========== =========== ===========
Weighted average
shares outstanding:
Basic 14,364,000 15,425,000 14,440,000 16,104,000
=========== =========== =========== ===========
Diluted 14,364,000 15,425,000 14,452,000 16,133,000
=========== =========== =========== ===========
The accompanying notes are an integral part of these condensed
consolidated financial statements.