POMONA, Calif., June 6, 2001 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported positive operating results for the fourth quarter and fiscal year ended March 30, 2001, supported by increasing momentum from insurance companies to specify aftermarket replacement parts on collision repair estimates.
Charles J. Hogarty, president and chief executive officer, said, "Fiscal 2001 concluded on a very positive note. March, which is the last month of our fiscal year, generated the highest revenue for any month in the history of the Company. At the beginning of the year, we predicted that the economic value provided to insurance companies by virtue of there being quality aftermarket parts available to compete with OEM parts was too great for insurers to ignore. Our prediction proved to be accurate. As we entered the second half of fiscal 2001, a select group of insurers once again began to embrace aftermarket replacement parts, after a one year period of specifically excluding these parts. This trend gained momentum during the second half of the fiscal year and we expect this trend to continue in our current fiscal year."
Net sales for the fourth quarter of fiscal 2001 were $97.0 million compared with $92.4 million for the same period last year. The Company reported income of $0.15 per diluted share before recording special charges, aggregating $7.1 million, including a loss on impairment of long-lived assets in accordance with FAS 121. After recording the special charges, the Company posted a loss of $0.21 per diluted share. During the prior year period, the Company reported a net loss of $214,000, or $0.01 per diluted share.
Net sales for the 52 weeks decreased 5.6 percent to $351.8 million compared with $372.5 million for the 53-week period a year ago. The net loss for fiscal 2001 was $477,000, due to the special charges described above, or $0.03 per diluted share, compared with net income of $9.8 million, or $0.62 per diluted share, last year.
Mr. Hogarty stated, "Same store sales increased 4.7 percent for the fourth quarter of fiscal 2001 compared to the prior year and were up 6.5 percent for the month of March compared to the prior year. Same store sales continued their positive trend during April and May 2001."
He highlighted the introduction in fiscal year 2001 of Keystone's Platinum Plus products and the ongoing success of the line. "These products are the industry's first and only nationally recognized premium brand of independently produced collision replacement parts. Platinum Plus products have been a resounding success and are backed by our limited lifetime warranty," he said.
Hogarty emphasized management's confidence in the long-term viability of the aftermarket parts industry and Keystone's strategic position. "We believe that the availability of aftermarket collision parts creates significant benefits to consumers by providing competition in the marketplace, which has contributed to lower automobile insurance premiums. The availability of high quality aftermarket collision parts allows consumers to restore their vehicles to their pre-loss condition in a cost effective manner," Hogarty said.
He noted that management continues to be encouraged by improving sales and strong cash flows from operations and is focused on inventory reductions and cost controls. The Company intends to use excess cash flows to pay down its credit facility.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 113 warehouses, of which 24 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, auto glass 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 acceptance of aftermarket collision replacement parts by insurance companies, a successful resolution of other pending lawsuits challenging the use of aftermarket parts, the costs related to the implementation of a new comprehensive enterprise software system and the ability of the company to reduce inventory and costs and increase margins to historical levels. 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 filings with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share and share amounts)
(Unaudited)
Thirteen Thirteen Fifty-two Fifty-three
weeks weeks weeks weeks
ended ended ended ended
March 30, March 31, March 30, March 31,
2001 2000 2001 2000
------- ------- ------- -------
Net sales $ 96,950 $ 92,387 $ 351,845 $ 372,466
Cost of sales 56,606 53,177 204,073 211,840
------- ------- ------- -------
Gross profit 40,344 39,210 147,772 160,626
Operating expenses:
Selling and
distribution 29,389 28,328 110,170 110,976
General and
administrative 7,409 7,606 30,155 30,800
Loss on impairment
of long lived
assets and
other costs 7,104 3,881 7,104 3,881
------- ------- ------- -------
Operating (loss)
income (3,558) (605) 343 14,969
Other income 543 729 2,037 2,613
Interest expense (370) (485) (1,456) (954)
------- ------- ------- -------
(Loss) income before
income taxes (3,385) (361) 924 16,628
Income tax provision
(benefit) (366) (147) 1,401 6,819
------- ------- ------- -------
Net (loss) income $ (3,019) $ (214) $ (477) $ 9,809
======= ======= ======= =======
Earnings (loss)
per share:
Basic $ (0.21) $ (0.01) $ (0.03) $ 0.62
======= ======= ======= =======
Diluted $ (0.21) $ (0.01) $ (0.03) $ 0.62
======= ======= ======= =======
Weighted average
shares outstanding:
Basic 14,359,000 15,257,000 14,420,000 15,899,000
========== ========== ========== ==========
Diluted 14,472,000 15,257,000 14,449,000 15,917,000
========== ========== ========== ==========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
March 30, 2001 March 31, 2000
(Unaudited) (Note)
-----------------------------------
ASSETS
------
Current Assets:
Cash and cash equivalents $ 3,005 $ 2,884
Accounts receivable,
net of allowance of $1,029 at
March 2001 and $1,145 at March 2000 29,702 27,644
Inventories, primarily finished goods 82,499 80,176
Other current assets 8,470 7,317
------- -------
Total current assets 123,676 118,021
Plant, property and equipment, net 21,270 23,589
Goodwill, net of accumulated
amortization of $4,773 at March 2001
and 3,274 at March 2000 33,531 35,204
Other intangibles, net of accumulated
amortization of $2,275 at March 2001
and $3,123 at March 2000 1,168 1,647
Other assets 4,111 5,356
------- -------
Total assets $ 183,756 $ 183,817
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 14,880 $ 12,500
Accounts payable 12,070 12,693
Accrued liabilities 7,915 6,559
Current portion of long-term debt 40 117
Deferred Taxes 378 0
------- -------
Total current liabilities 35,283 31,869
Long-term debt, less current portion 49 68
Other long-term liabilities 2,484 1,685
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 14,359,000
At March 2001 and 14,892,000
At March 2000 78,581 81,817
Warrant 236 236
Additional paid-in capital 1,260 1,260
Retained earnings 66,404 66,882
Accumulated other comprehensive loss (541) 0
------- -------
Total shareholders' equity 145,940 150,195
------- -------
Total liabilities and
shareholders' equity $ 183,756 $ 183,817
======= =======
NOTE: The balance sheet at March 31, 2000 has been derived from the
audited consolidated financial statements at the date but does
not include all of the information and footnotes required by
generally accepted in the United States accounting principles
for complete financial statements.