POMONA, Calif., Oct. 19, 2001 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today announced preliminary results for the three and six months ended September 2001. The company expects to report fully diluted earnings in the range of $0.11 to $0.12 per share for the quarter and $0.26 to $0.27 per share for the six months ended September 2001, before recording a special pre-tax charge of approximately $6.8 million related to its investment in an enterprise-wide software conversion. For the same period a year earlier, Keystone Automotive reported fully diluted earnings for the quarter and six months of $0.02 and $0.13, respectively.
Charles J. Hogarty, president and chief executive officer, said, "Our decision to record a special charge and pre-announce results for the second quarter was based upon a thorough evaluation of options following notification from our enterprise software provider that it intends to cease development of its product. After careful internal technical analysis, we determined that it was impractical to proceed with a company-wide installation of a system that required Keystone to develop the software and manage the system itself. We, therefore, have decided to terminate the current project and explore other technical alternatives, as well as options to recover our prior investment. This termination will not affect our day-to-day operations."
Hogarty emphasized that the aftermarket collision business is strong and continues to build momentum. He indicated that the company expects to report same store sales increases of approximately 7 percent for the quarter and 6 percent for the six months ended September 2001.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 113 distribution facilities, of which 21 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 impact on the company (i) of the termination of the implementation of the existing comprehensive enterprise software package and the selection and implementation of a new package, (ii) from the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal, (iii) if the review of all intangible assets under SFAS No. 142 reveals an impairment, and (iv) if the final results of operations for the second quarter differ from the preliminary results announced herein. 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 30, 2001 on file with the Securities and Exchange Commission.