Press Room
Press Releases - 2003
Keystone Automotive Industries Reports Record Sales For Second Quarter 2004 Results
Net Sales Climb 15 Percent for Three-Month Period; Same Store Sales Up 11 Percent
POMONA, Calif., Nov. 10, 2003 -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record sales for its fiscal second quarter and six months ended September 26, 2003.
The results during the first half of fiscal 2004 include four acquisitions and the establishment of two greenfield operations.
Net sales for the quarter increased 15.4 percent to $116.7 million from $101.1 million a year ago. Net income for the same period was $2.7 million, or $0.18 per diluted share, compared with $2.7 million, or $0.18 per diluted share, last year. Net income for the quarter included consolidation and other charges of $425,000 related to the company's acquisitions and a $200,000 insurance recovery settlement for a fire loss claim. Excluding the charge and the recovery, net income for the quarter was $2.8 million, or $0.19 per diluted share.
Net sales for the six-month period increased 13 percent to $235 million compared with $208 million a year ago. Net income for the same period was $6.9 million, or $0.45 per diluted share, compared with $6.2 million, or $0.41 per diluted share, a year earlier. Excluding the charge and the recovery, net income for the six-month period was $7.0 million, or $0.46 per diluted share.
Charles J. Hogarty, president and chief executive officer, said, "Results for the second quarter and first half of fiscal 2004 show strength across all of the company's main product groups, reflecting ongoing growth within the aftermarket collision repair business, increased insurance company participation and market acceptance of Keystone's Platinum Plus private label aftermarket parts product offerings."
Hogarty noted that same store sales for the second quarter and the six-month period increased 11 percent and 10 percent, respectively, compared with a year ago, after deducting same store sales increases from acquisitions and greenfields of four percent for the quarter and three percent for the six months.
Gross margins for the second quarter and the six months were 43.1 percent and 43.4, respectively. Hogarty noted that the gross margin for the second quarter was impacted by increased nickel prices, which currently stand at a ten-year high, as well as higher freight expenses for overseas shipments The company utilizes nickel for its chrome bumper plating business. Hogarty added that gross margins were also impacted by lower production for its chrome and recycled plastic bumpers business, which affected the company's ability to absorb overhead expenses. "We experienced some significant rework and higher related costs on certain types of bumpers during the quarter, due to the fact that certain new model vehicles require more labor and material due to a combination of textured and painted design features of the bumpers. These issues have been addressed by adapting new recycling processes and raising prices," Hogarty said.Since its fiscal year end in March, the company has converted an additional 34 distribution facilities to its new management information system, bringing to 45 the total number of conversions to date.
About Keystone
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 124 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 Twenty-six Twenty-six
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
2003 2002 2003 2002
-------- -------- -------- ---------
Net sales $ 116,663 $ 101,137 $ 234,763 $ 207,861
Cost of sales 66,393 57,259 132,962 117,509
------- ------- ------- -------
Gross profit 50,270 43,878 101,801 90,352
Operating expenses:
Selling and
distribution 36,028 30,353 70,700 62,168
General and
administrative 10,311 9,356 20,660 18,398
------ ------ ------ ------
Operating income 3,931 4,169 10,441 9,786
Other income 649 403 1,193 826
Interest expense (166) (134) (340) (265)
------ ------ ------ ------
Income before
income taxes 4,414 4,438 11,294 10,347
Income taxes 1,727 1,775 4,427 4,139
------ ------ ------ ------
Net income $ 2,687 $ 2,663 $ 6,867 $ 6,208
======= ======= ======= =======
Per Common Share:
Net income per share:
Basic $ 0.18 $ 0.18 $ 0.46 $ 0.42
====== ====== ====== ======
Diluted $ 0.18 $ 0.18 $ 0.45 $ 0.41
====== ====== ====== ======
Weighted average common shares outstanding:
Basic 14,892,000 14,622,000 14,825,000 14,610,000
Diluted 15,233,000 15,081,000 15,137,000 15,126,000
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
Sept. 26, March 28,
2003 2003
----------- ---------
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,096 $ 3,658
Accounts receivable,net of allowance
of $1,445 at September 2003
and $1,291 at March 2003 38,982 39,753
Inventories, primarily
finished goods 103,675 101,594
Other current assets 9,129 10,017
-------- ---------
Total current assets 154,882 155,022
Plant, property and
equipment, net 28,092 23,658
Goodwill 7,664 3,040
Other intangibles, net of accumulated
amortization of $3,348 at September
2003 and $3,099 at March 2003 1,412 1,046
Other assets 9,192 9,043
-------- ---------
Total assets $ 201,242 $ 191,809
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 21,633 $ 16,606
Accounts payable 13,925 18,330
Accrued liabilities 11,985 12,992
Current portion of long-term debt 6 15
------ ------
Total current liabilities 47,549 47,943
Other long-term liabilities 1,985 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 15,002,000
at September 2003 and 14,692,000
at March 2003 84,217 81,221
Warrant 236 236
Restricted Stock 150 --
Additional paid-in capital 2,271 2,269
Retained earnings 65,986 59,119
Accumulated other
comprehensive loss (1,152) (1,203)
-------- ---------
Total shareholders'equity 151,708 141,642
-------- ---------
Total liabilities and shareholders'
equity $ 201,242 $ 191,809
========= =========
Note: The balance sheet at March 28, 2003 has been derived from 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.
CONTACT:
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852