POMONA, Calif., Aug. 7, 2003 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported results for its first fiscal quarter ended June 27, 2003, reflecting continued upward momentum in its aftermarket collision parts business.
Net income for the first fiscal quarter climbed 18 percent to $4.2 million, or $0.28 per diluted share, from $3.5 million, or $0.23 per diluted share, a year ago. Net sales for the same period increased 10.7 percent to a record $118.1 million from $106.7 million a year earlier.
Charles J. Hogarty, president and chief executive officer, said, "Results for the quarter reflect the continued strength of Keystone's Platinum Plus private label product line and increased utilization of aftermarket collision replacement parts by insurance companies."
He noted that operating results for the first fiscal quarter represent the tenth year-over-year increase in quarterly operating performance for the company.
Hogarty emphasized that favorable economics of aftermarket parts compared with original equipment parts and Keystone's quality assurance programs are important factors driving the company's acceptance by the insurance industry, body shops and consumers.
He added that same store sales for the first fiscal quarter increased approximately ten percent over the same period a year ago. Since its fiscal year end in March, the company has converted an additional 19 distribution facilities to its new management information system, bringing to 33 the total number of conversions to date.
He also stressed the benefits of Keystone's ongoing strategy of strengthening its distribution capabilities, noting additional geographic expansion through its acquisition in April 2003 of Landmark Auto Parts located in the Newport News/Norfolk Virginia area. Keystone also strengthened its position in the Lexington, Louisville and eastern Kentucky areas by acquiring in June 2003 certain assets of U.S. Crash Parts.
About Keystone
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 117 distribution facilities, of which 21 serve as regional hubs, located in 38 states, Vancouver, Canada and Tijuana, Mexico. 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 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 as a result of (i) the cost, time and potential disruption of operations relating to the implementation of a new enterprise management information system which began in July 2002; (ii) the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal; (iii) Keystone being named as defendant in an action by General Motors challenging the alleged use of certain of its trade marks; and (iv) the uncertainty involved in acquiring businesses and/or opening Greenfield operations. In addition, there can be no assurance that the momentum in sales and net income experienced during the last two years will be sustainable. 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 28, 2003, on file with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Income
(In thousands, except share and per share amounts)
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
June 27, 2003 June 28, 2002
------------- -------------
Net sales $ 118,100 $ 106,724
Cost of sales 66,569 60,250
------------ ------------
Gross profit 51,531 46,474
Operating expenses:
Selling and distribution 34,672 31,815
General and administrative 10,349 9,042
------------ ------------
Operating income 6,510 5,617
Other income 544 423
Interest expense (174) (131)
------------ ------------
Income before income taxes 6,880 5,909
Income taxes 2,700 2,364
------------ ------------
Net income $ 4,180 $ 3,545
============ ============
Per Common Share:
Net income per share:
Basic $ 0.28 $ 0.24
============ ============
Diluted $ 0.28 $ 0.23
============ ============
Weighted average common
shares outstanding:
Basic 14,760,000 14,597,000
============ ============
Diluted 15,118,000 15,155,000
============ ============
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
June 27, March 28,
2003 2003
----------- -----------
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,228 $ 3,658
Accounts receivable, net of allowance
of $1,492 at June 2003 and $1,291
at March 2003 38,059 39,753
Inventories, primarily finished goods 105,056 101,594
Other current assets 8,402 10,017
-------- --------
Total current assets 155,745 155,022
Plant, property and equipment, net 25,095 23,658
Goodwill 5,024 3,040
Other intangibles, net of accumulated
amortization of $3,219 at June 2003
and $3,099 at March 2003 1,541 1,046
Other assets 9,051 9,043
-------- --------
Total Assets $196,456 $191,809
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 17,585 $ 16,606
Accounts payable 17,837 18,330
Accrued liabilities 11,493 12,992
Current portion of long-term debt 8 15
-------- --------
Total current liabilities 46,923 47,943
Other long-term liabilities 2,083 2,224
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 14,844,000
at June 2003 and 14,692,000 at March 2003 82,848 81,221
Warrant 236 236
Additional paid-in capital 2,270 2,269
Retained earnings 63,299 59,119
Accumulated other comprehensive loss (1,203) (1,203)
-------- --------
Total shareholders' equity 147,450 141,642
-------- --------
Total liabilities and shareholders' equity $196,456 $191,809
======== ========
NOTE: The balance sheet at March 28, 2003 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.