POMONA, Calif., Feb. 5, 2004 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record results for its third quarter ended December 26, 2003, reflecting continued momentum in its aftermarket collision parts business.
Net income for the fiscal third quarter climbed 25 percent to $4.5 million, or $0.29 per diluted share, from $3.6 million, or $0.24 per diluted share, a year ago. Net sales for the fiscal third quarter increased 16 percent to a record $126.3 million compared with $108.5 million last year.
For the nine months, net income increased 16 percent to $11.4 million, or $0.75 per diluted share, from $9.8 million, or $0.65 per diluted share, a year earlier. Net sales for the nine months increased 14 percent to $361.0 million from $316.4 million in fiscal 2003.
"Results for the quarter and nine months reflect the continued strength of Keystone's Platinum Plus private label product line and increased utilization of aftermarket collision replacement parts by insurance companies," said Charles J. Hogarty, president and chief executive officer.
He emphasized that favorable economics of aftermarket parts compared with original equipment parts and Keystone's quality assurance programs are important factors driving the acceptance of the company's products by the insurance industry, body shops and consumers.
Hogarty noted that same store sales for the third quarter and nine-month period increased approximately 10 percent compared with a year ago. Gross margin for the third quarter improved to 44 percent from the preceding quarter, primarily as a result of improved pricing.
He stressed Keystone's ongoing strategy to further strengthen its distribution capabilities, having completed six acquisitions this fiscal year -- including the purchase of New Orleans-based Sam's Bumper Service in December and in January the aftermarket collision parts distribution businesses of Quinte Bumper & Fender, based in Ontario, Canada.
Since its fiscal year end in March, the company has converted an additional 44 distribution facilities to its new management information system, bringing to 58 the total number of conversions to date.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 126 distribution facilities, of which 22 serve as regional hubs, located in 38 states, Canada and 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 Thirty-nine Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
Dec. 26, Dec. 27, Dec. 26, Dec. 27,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net Sales $ 126,277 $ 108,548 $ 361,040 $ 316,409
Cost of Sales 70,717 61,032 203,679 178,541
----------- ----------- ----------- -----------
Gross Profit 55,560 47,516 157,361 137,868
Operating
Expenses:
Selling &
Distribution 37,101 32,117 107,801 94,285
General &
Administrative 11,360 9,744 32,020 28,141
----------- ----------- ----------- -----------
Operating Income 7,099 5,655 17,540 15,442
Other Income 485 454 1,678 1,280
Interest Expense (188) (117) (528) (381)
----------- ----------- ----------- -----------
Income Before
Income Taxes 7,396 5,992 18,690 16,341
Income Taxes 2,889 2,397 7,316 6,536
----------- ----------- ----------- -----------
Net Income $ 4,507 $ 3,595 $ 11,374 $ 9,805
=========== =========== =========== ===========
Per Common Share
Income
Basic: $ 0.30 $ 0.25 $ 0.76 $ 0.67
=========== =========== =========== ===========
Diluted: $ 0.29 $ 0.24 $ 0.75 $ 0.65
=========== =========== =========== ===========
Weighted average
common shares
outstanding:
Basic: 15,064,000 14,649,000 14,901,000 14,623,000
=========== =========== =========== ===========
Diluted: 15,464,000 14,960,000 15,214,000 14,986,000
=========== =========== =========== ===========
Keystone Automtotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
Dec. 26, March 28,
2003 2003
-------- --------
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,853 $ 3,658
Accounts receivable, net
of allowance of $1,463
at December 2003 and
$1,291 at March 2003 42,583 39,753
Inventories, primarily
finished goods 104,001 101,594
Other current assets 7,919 10,017
-------- --------
Total current assets 157,356 155,022
Plant, property and
equipment, net 30,495 23,658
Goodwill 8,364 3,040
Other intangibles, net of
accumulated amortization
of $3,429 at December
2003 and $3,099 at March
2003 1,398 1,046
Other assets 9,438 9,043
-------- --------
Total assets $207,051 $191,809
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility 18,893 16,606
Accounts payable 16,747 18,330
Accrued liabilities 11,177 12,992
Current portion of long-
term debt 6 15
-------- --------
Total current liabilities 46,823 47,943
Other long-term
liabilities 1,890 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 15,134,000 at
December 2003 and
14,692,000 at March 2003 86,241 81,221
Warrant 236 236
Restricted Stock 180 --
Additional paid-in capital 2,271 2,269
Retained earnings 70,493 59,119
Accumulated other
comprehensive loss (1,083) (1,203)
-------- --------
Total shareholders'
equity 158,338 141,642
-------- --------
Total liabilities and
shareholders' equity $207,051 $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.