POMONA, Calif., Jan. 26, 2006 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record earnings and sales for its fiscal 2006 third quarter and year to date, ended December 30, 2005.
Net income for the fiscal third quarter climbed 77.1 percent to $7.1 million, or $0.44 per diluted share, from $4.0 million, or $0.25 per diluted share, a year ago. Net sales for the same period increased 20.3 percent to $164.4 million from $136.6 million last year.
Net income for the nine months jumped 48.2 percent to $14.7 million, or $0.91 per diluted share, from $9.9 million, or $0.63 per diluted share, a year earlier. The nine-month period ended December 30, 2005, contained 39 weeks compared with 40 weeks a year earlier. Net sales for the nine months increased 10.7 percent to $448.4 million from $405.2 million a year ago (13.5 percent when adjusted for the one less week in the current fiscal year). Year-to-date 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 $0.66 per diluted share.
Same store sales for the fiscal third quarter and the nine-month period increased 15.0 percent and 11.0 percent (adjusted to reflect the 40-week period a year ago), respectively.
"These types of performance records only occur because 3,700 team members care deeply about our company, our customers, and each other; they are the ones who make it happen. Sure, management has provided a few new tools in terms of sales, supply chain, accountability and cost initiatives, but in this business it's all about our people making it happen for their customers every day," said Richard L. Keister, president and chief executive officer.
As announced last week, John M. Palumbo has resigned as chief financial officer to accept a similar position with a Los Angeles-based solar energy company. Terry Tuttle, currently the company's controller, has been named vice president finance. A search for Palumbo's replacement has commenced and an orderly transition initiated.
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 third quarter. 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 4653529. 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, January 26 through 9:00 p.m. Tuesday, January 31 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 4653529.
About Keystone
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 136 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, competition, weather conditions and the results of the proceeding initiated by Ford Motor Company against the company and certain Taiwan manufacturers before the International Trade Commission. In addition, there can be no assurance that the company will be able to sustain the increases in sale and net income experienced in the third quarter of fiscal 2006. 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 Thirteen Thirty-nine Forty Weeks
Weeks Ended Weeks Ended Weeks Ended Ended December
December 30, December 31, December 30, 31, 2004
2005 2004 2005 (restated)
----------- ----------- ----------- -----------
Net Sales 164,387 $ 136,631 448,389 $ 405,156
Cost of Sales 90,143 76,820 248,448 229,129
----------- ----------- ----------- -----------
Gross Profit 74,244 59,811 199,941 176,027
Operating Expenses:
Selling &
Distribution 47,897 40,379 135,494 122,376
General &
Administrative 14,840 13,166 41,676 39,169
----------- ----------- ----------- -----------
Operating Income 11,507 6,266 22,771 14,482
Other Income 607 403 1,988 2,103
Interest Expense (334) (58) (466) (216)
----------- ----------- ----------- -----------
Income Before
Income Taxes 11,780 6,611 24,293 16,369
Income Taxes 4,672 2,598 9,598 6,455
----------- ----------- ----------- -----------
Net Income $ 7,108 $ 4,013 $ 14,695 $ 9,914
=========== =========== =========== ===========
Per Common Share
Income
Basic: $ 0.44 $ 0.26 $ 0.92 $ 0.64
=========== =========== =========== ===========
Diluted: $ 0.44 $ 0.25 $ 0.91 $ 0.63
=========== =========== =========== ===========
Weighted average
common shares
outstanding:
Basic: 16,008,000 15,699,000 15,956,000 15,597,000
=========== =========== =========== ===========
Diluted: 16,183,000 15,844,000 16,094,000 15,776,000
=========== =========== =========== ===========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
December 30, April 1,
2005 2005
--------- ---------
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,599 $ 4,054
Accounts receivable, net of
allowance of $1,333 at December
2005 and $1,270 at April 2005 58,669 49,719
Inventories, primarily finished
goods 129,123 119,679
Other current assets 12,653 12,018
--------- ---------
Total current assets 206,044 185,470
Plant, property and equipment, net 30,911 31,079
Goodwill 39,151 11,309
Other intangibles, net of
accumulated amortization of $4,145
at December 2005 and $3,851 at
April 2005 1,639 925
Other assets 6,235 5,801
--------- ---------
Total assets $ 283,980 $ 234,584
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 21,363 $ --
Accounts payable 33,105 25,950
Accrued liabilities 19,306 14,274
--------- ---------
Total current liabilities 73,774 40,224
Other long-term liabilities 2,113 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
16,022,000 at December 2005 and
15,839,000 at April 2005, at
stated value 94,059 93,244
Restricted Stock 994 460
Additional paid-in capital 7,695 7,695
Retained earnings 105,796 91,101
Accumulated other comprehensive
loss (481) (723)
--------- ---------
Total shareholders' equity 208,063 191,777
--------- ---------
Total liabilities and
shareholders' equity $ 283,950 $ 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.