Keystone Automotive Industries Inc. Reports Record Revenues For Fiscal 2003 Fourth Quarter and Full Year


POMONA, Calif., June 5, 2003 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record revenues and improved operating results for its fourth quarter and fiscal year ended March 28, 2003.

For the 2003 fiscal fourth quarter, net sales increased 14 percent to $122.5 million from $107.9 million in the same quarter a year ago. Net income grew 20 percent to $4.9 million, or $0.33 per diluted share, from $4.1 million, or $0.28 per diluted share, in the fiscal 2002 fourth quarter.

For the fifty-two week period ended March 28, 2003, net sales increased 15 percent to $438.9 million from $382.3 million in fiscal 2002. Net income totaled $14.8 million, or $0.99 per diluted share, compared with a net loss of $22.0 million, or $1.48 per diluted share, in fiscal 2002. The net loss in fiscal 2002 included a $28.7 million charge (net of tax) related to the cumulative effect of a change in accounting principle as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No.142) "Goodwill and Other Intangible Assets" and a $6.8 million non-recurring charge related to a write down of the company's investment in an enterprise-wide software conversion.

"Fiscal 2003 is our second consecutive year of strong revenue and operating income growth," said Charles J. Hogarty, president and chief executive officer of Keystone Automotive Industries, Inc. "As we look forward, we remain very optimistic. We believe the insurance industry's willingness to use competitive parts will continue to increase, buoyed by generally favorable decisions coming out of the courts around the country. Keystone is uniquely positioned to benefit from that trend. Our quality initiatives such as ISO 9001 and Platinum Plus have set us apart from our competition. In addition, our growing distribution network offers unequaled service to the insurance and collision repair industries."

Hogarty said the Company's IT rollout is progressing well and upon completion of the rollout anticipates improved inventory utilization and lower administrative costs.

The Company noted that results for the 2003 fiscal fourth quarter include $610,000 of income related to the settlement of litigation regarding the Company's previous software installation, and a charge of $940,000 for severance costs and future lease costs on an abandoned master warehouse. These items were recorded in the general and administrative section of the condensed consolidated statements of operations.

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.



             Keystone Automotive Industries, Inc.
        Condensed Consolidated Statements of Operations
      (In thousands, except per share and share amounts)

          Thirteen         Thirteen       Fifty-two      Fifty-two
          weeks ended     weeks ended    weeks ended    weeks ended
           March 28,       March 29,      March 28,      March 29,
             2003            2002          2003            2002
             ----            ----          ----            ----
          (unaudited)                   (unaudited)
 Net
  sales     $122,490       $107,864       $438,899       $382,274
 Cost of
  sales       69,372         61,432        247,913        218,475
            ---------      ---------      ---------      ---------
 Gross
  profit      53,118         46,432        190,986        163,799
 Operating
  expenses :
  Selling and
  distri-
   bution     35,537         30,932        129,822        114,276
 General and
  admini-
  stration    10,043          9,152         38,184         32,816
 Non-
 recurring       --              --             --          6,796
              -------         -------       --------      --------

 Operating
  income        7,538         6,348         22,980          9,911
 Other
  income          502           476          1,782          1,895
 Interest
  expense        (172)         (148)          (553)          (698)
               --------       --------     --------        -------
 Income before
  income taxes
  and cumulative
  effect of
  change in
 accounting
  principle     7,868         6,676         24,209         11,108

 Income
  taxes         2,926         2,542          9,462          4,450
               ------        ------          ------        -------
 Net income  
  before
  cumulative
  effect of
  accounting
  change       $4,942        $4,134        $14,747         $6,658
 Cumulative
  effect
  of change in
  accounting
  principle       --            --              --        (28,691)
             --------     ---------      ---------      ---------
 Net income
  (loss)      $4,942        $4,134         $14,747       $(22,033)
             =======       =======        ========       =========
 Per Common
  share :
 Income before
  cumulative
  effect of a
  change in
  accounting
  principle
  Basic      $ 0.34        $ 0.29         $  1.01         $ 0.46
  Diluted    $ 0.33        $ 0.28         $  0.99         $ 0.45
 Cumulative    
  effect of a
  change in
  accounting
  principle
  Basic          --            --             --          $(1.98)
  Diluted        --            --             --          $(1.93)
 Net income
  (loss)
 Basic       $0.34         $0.29           $1.01          $(1.52)
             ======        =====           ======          ======
 Diluted     $0.33         $0.28           $0.99          $(1.48)
             ======        =====           ======          ======
 Weighted
  Average shares
  outstanding :
  Basic     14,665,000  14,379,000     14,635,000       14,467,000
  Diluted   14,991,000  14,898,000     14,968,000       14,876,000
            ==========  ==========     ==========       ==========

               Keystone Automotive Industries, Inc.
              Condensed Consolidated Balance Sheets
              (In thousands, except share amounts)
   
                          March 28, 2003        March 29, 2002

                            (Unaudited)             (Note)

                  ASSETS

 Current Assets:
  Cash and cash 
   equivalents                $3,658                $3,652
 Accounts receivable, 
  net of allowance 
  of $1,291 at
 March 2003 and $1,046 
  at March 2002               39,753                33,524
 Inventories, 
  primarily 
  finished 
  goods                      101,595                81,503
 Other current 
  assets                      10,016                 8,090
                            --------              --------
 Total current assets        155,022               126,769
 Plant, property and 
 equipment, net               23,659                19,344
 Goodwill                      3,040                 1,805
 Other intangibles, net 
 of accumulated 
 amortization
 of $3,099 at 
 March 2003 and 
 $2,755 at 
 March 2002                    1,046                 1,397
 Other assets                  9,042                10,371
                            --------             ---------

 Total assets               $191,809              $159,686
                            ========              ========


           LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities:
  Credit facility           $ 16,606               $ 6,832
  Accounts payable            18,330                14,589
 Accrued liabilities          12,992                 9,889
 Current portion of 
  long-term debt 
 and capital leases               15                    75
                            --------              --------
 Total current 
  liabilities                 47,943                31,385
 Long-term debt, 
  less current 
  portion                          -                    14
 Other 
  long-term 
  liabilities                  2,224                 1,973

 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 14,692,000 at March 2003
  and 14,583,000 at 
  March 2002                  81,221                80,383
 Warrant                         236                   236
 Additional paid-in 
  capital                      2,269                 1,864
 Retained earnings            59,119                44,372
 Accumulated other 
  comprehensive loss          (1,203)                 (541)
                             --------              --------
 Total shareholders' 
  equity                     141,642               126,314
                            --------              --------
 Total liabilities 
  and 
  shareholders' 
  equity                   $ 191,809             $ 159,686
                           =========             =========

NOTE:The balance sheet at March 29, 2002 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.



            

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