Keystone Automotive Industries Reports Fiscal 2006 First Quarter Results

Record First Quarter Revenues


POMONA, Calif., Aug. 4, 2005 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record sales for its fiscal 2006 first quarter ended July 1, 2005. Net sales for the 13-week 2006 fiscal quarter reached a record $144.8 million compared with $141.1 million last year-- an increase of 2.6 percent. After adjusting for an additional week in the same quarter a year earlier, the increase was 10.5 percent.

Net income for the fiscal first quarter climbed 34.5 percent to $4.7 million, or $0.30 per diluted share, from $3.5 million, or $0.22 per diluted share, a year ago. Prior-year results were restated to include an expense of $897,000 as a result of the SFAS No. 13 lease expense adjustment. Excluding the SFAS No. 13 adjustment, prior-year net income as originally reported was $0.26 per diluted share, 15.4 percent higher than the restated results.

"Overall results for the quarter slightly exceeded our internal expectations. With the exception of lighting, we experienced strong sales momentum in our core product categories. Same store sales growth of 9.5 percent (after adjusting for the additional week in the prior-year period) is the strongest we have seen in several quarters and I believe validates our short-term strategy of having enough inventory available to service customers as we address our supply chain reengineering. I am also pleased to report that our two largest headlight suppliers and CAPA, an independent certifying agency, have agreed on procedures to begin certification. We believe that light applications, although limited, will be available during the second half of this year," said Richard L. Keister, president and chief executive officer.

Gross margin for the first quarter was 44.3 percent compared with 43.4 percent last year. The gross margin improvement is the result of pricing and improved mix.

Keystone has now completed the company's domestic enterprise system rollout. "With the domestic portion of this project now behind us, we can concentrate on opportunities to leverage the company's expanding distribution network by strengthening our inventory systems, processes and improving and enhancing IT systems," Keister said. He noted that during the quarter Keystone added to its distribution capabilities in Missouri with the completion of a small acquisition in Southwest Missouri. The company is continuing to seek additional acquisitions.

Teleconference and Web Cast

Richard L. Keister, president and chief executive officer, and John M. Palumbo, chief financial officer, will host an investor conference call today at 11:00 a.m. Pacific Time to discuss the company's financial results and operations for the fiscal year. The call will be open to all interested investors either through a live audio Web broadcast via the Internet at www.keystone-auto.com and www.vcall.com, or live by calling (877) 440-9648 with call ID number 8169890. For those who are not available to listen to the live broadcast, the call will be archived for two weeks on both Web sites. A telephone playback of the conference call will also be available from 2:00 p.m. Thursday, August 4 through 9:00 p.m. Tuesday, August 9 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 8169890.

About Keystone

Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 129 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 actions which have been, or in the future may be, taken by insurance companies with respect to aftermarket lighting products. 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 on June 15, 2005 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.



                      Keystone Automotive Industries, Inc.
                   Condensed Consolidated Statements of Income
                (In thousands, except share and per share amounts)
                                  (Unaudited)
                                                        
                                                     
                                    Thirteen        Fourteen
                                   Weeks Ended     Weeks Ended
                                     July 1,      July 2, 2004
                                      2005         (Restated)
                                  ------------    ------------
                                   (Unaudited)     (Unaudited)

                                                                  
 Net Sales                        $    144,781    $    141,117

 Cost of Sales                          80,628          79,912
                                  ------------    ------------

 Gross Profit                           64,153          61,205

 Operating Expenses:

  Selling and Distribution              43,499          42,588

  General and Administrative            13,454          13,634
                                  ------------    ------------

 Operating Income                        7,200           4,983

 Other Income                              680             896

 Interest Expense                          (81)            (95)
                                  ------------    ------------


 Income Before Income Taxes              7,799           5,784

 Income Taxes                            3,077           2,274
                                  ------------    ------------

 Net Income                       $      4,722    $      3,510
                                  ============    ============

 Per Common Share
  Income

   Basic:                         $       0.30    $       0.23
                                  ============    ============
   Diluted:                       $       0.30    $       0.22
                                  ============    ============

  Weighted average common
   shares outstanding:

   Basic:                           15,877,000      15,469,000
                                  ============    ============
   Diluted:
                                    15,991,000      15,766,000
                                  ============    ============


                       Keystone Automotive Industries, Inc.
                      Condensed Consolidated Balance Sheets
                      (In thousands, except share amounts)

                                      July 1,        April 1,
                                       2005            2005
                                   ------------    ------------
                                    (Unaudited)
   ASSETS

 Current Assets:
  Cash and cash equivalents        $      5,881    $      4,054
  Accounts receivable, net
   of allowance of $1,205 at
   July 2005 and $1,270 at
   April 2005                            48,747          49,719
  Inventories, primarily
   finished goods                       126,137         119,679
  Other current assets                   11,263          12,018
                                   ------------    ------------
      Total current assets              192,028         185,470
 Plant, property and
  equipment, net                         30,536          31,079
 Goodwill                                11,609          11,309
 Other intangibles, net of
  accumulated amortization
  of $3,936 at July 2005 and
  $3,851 at April 2005                      923             925
 Other assets                             6,385           5,801
                                   ------------    ------------
      Total assets                 $    241,481    $    234,584
                                   ============    ============

    LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities:
  Credit facility                  $      1,081              --
  Accounts payable                       23,915          25,950
  Accrued liabilities                    16,613          14,274
  Income Tax Liabilities                    515              --
                                   ------------    ------------
  Total current liabilities              42,124          40,224
  Other long-term
   liabilities                            2,542           2,583
 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 15,905,000 at
     July 2005 and
     15,839,000 at April
     2005, at stated value               93,499          93,244
    Restricted Stock                        562             460
  Additional paid-in capital              7,695           7,695
  Retained earnings                      95,823          91,101

  Accumulated other
   comprehensive loss                      (764)           (723)
                                   ------------    ------------
      Total shareholders'
       equity                           196,815         191,777
                                   ------------    ------------
      Total liabilities and
       shareholders' equity        $    241,481    $    234,584
                                   ============    ============

  Note: The balance sheet at April 1, 2005 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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