POMONA, Calif., Nov. 9, 2004 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported results for its fiscal second quarter and six months ended October 1, 2004, with record sales for the first half of fiscal 2005.
Net sales for the quarter increased 9.2 percent to $127.4 million from $116.7 million a year ago. Net income for the same period was $2.4 million, or $0.15 per diluted share, compared with $2.7 million, or $0.18 per diluted share, last year.
Net sales for the six-month period increased 14.4 percent to $268.5 million from $234.8 million a year ago. Net income for the same period was $6.4 million, or $0.41 per diluted share, compared with $6.9 million, or $0.45 per diluted share, a year earlier.
Same store sales for the second quarter and the six-month period increased 6.3 percent and 6.0 percent, respectively, compared with the same period a year ago, and have been adjusted for the six-month period in the current fiscal year to reflect an additional week.
"Record sales for the second quarter and first half of fiscal 2005 reflected internal growth of over 6.0 percent and exhibited continued strength across all of the company's main product groups, excluding paint and related materials which decreased slightly in the second quarter. While we are disappointed in the continuing escalation of expenses as a percentage of sales, we are in the process of transforming the company to support future growth opportunities and to enable us to better control expenses in the future. To support this goal, the company has completed a search for a vice president of supply chain management and the executive will join the company this month," said Richard L. Keister, president and chief executive officer.
Keister added that operations in Florida, Louisiana and Alabama were impacted by the effects of recent Hurricanes, with an estimated loss of revenues of $600,000 to $700,000. He said the company anticipates the repair of vehicles in this region of the country will have a positive impact on Keystone's business in the third quarter of this fiscal year.
Notwithstanding the recent suspension of the sale of certain lighting products by the company and a few insurance companies, Keister said, "the company's sales of headlamps have been trending upward with no impact from the suspensions so far."
About Keystone
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 126 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 (i) the inherent uncertainty in projecting results of operations for future periods, (ii) the continued expenses and risks involved in the implementation of the new enterprise management information system and (iii) the impact on the Company as a result of a new chief executive officer of the Company being appointed on August 18, 2004 and (iv) 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.
(Tables follow)
KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
(Unaudited)
Thirteen Thirteen Twenty-seven Twenty-six
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
Oct, 1, Sept. 26, Oct. 1, Sept. 26,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Net Sales 127,408 $ 116,663 268,525 $ 234,763
Cost of Sales 72,397 66,393 152,309 132,962
---------- ---------- ---------- ----------
Gross Profit 55,011 50,270 116,216 101,801
Operating Expenses:
Selling &
Distribution 39,409 36,028 81,100 70,700
General &
Administrative 12,369 10,311 26,003 20,660
---------- ---------- ---------- ----------
Operating Income 3,233 3,931 9,113 10,441
Other Income 804 649 1,700 1,193
Interest Expense (63) (166) (158) (340)
Income Before
Income ---------- ---------- ---------- ----------
Taxes 3,974 4,414 10,655 11,294
Income Taxes 1,582 1,727 4,211 4,427
---------- ---------- ---------- ----------
Net Income $ 2,392 $ 2,687 $ 6,444 $ 6,867
========== ========== ========== ==========
Per Common Share
Income
Basic: $ 0.15 $ 0.18 $ 0.41 $ 0.46
========== ========== ========== ==========
Diluted: $ 0.15 $ 0.18 $ 0.41 $ 0.45
========== ========== ========== ==========
Weighted average
common shares
outstanding:
Basic: 15,570,000 14,892,000 15,518,000 14,825,000
========== ========== ========== ==========
Diluted: 15,789,000 15,233,000 15,752,000 15,137,000
---------- ---------- ---------- ----------
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
October 1, March 26,
2004 2004
---- ----
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,231 $ 3,176
Accounts receivable, net of allowance of
$906 at October 2004 and
$887 at March 2004 42,696 44,005
Inventories, primarily finished goods 111,791 107,221
Other current assets 9,452 11,532
--------- ---------
Total current assets 168,170 165,934
Plant, property and equipment, net 32,593 30,652
Goodwill 10,109 9,662
Other intangibles, net of accumulated
amortization of $3,661 at
October 2004 and $3,565 at March 2004 1,113 1,323
Other assets 8,559 8,342
--------- ---------
Total assets $ 220,544 $ 215,913
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 1,494 $ 10,000
Accounts payable 25,844 18,598
Accrued liabilities 12,008 14,477
--------- ---------
Total current liabilities 39,346 43,075
Other long-term liabilities 857 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 15,607,000
at October 2004 and
15,443,000 at March 2004, at
stated value 91,485 89,492
Restricted Stock 256 180
Additional paid-in capital 5,967 5,967
Retained earnings 83,285 76,841
Accumulated other comprehensive loss (652) (953)
--------- ---------
Total shareholders' equity 180,341 171,527
--------- ---------
Total liabilities and shareholders'
equity $ 220,544 $ 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.