Pomona, Calif., October 29, 1998 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (KEYS) today announced that revenues for the second quarter ended September 25, 1998 were $81 million, up 28 percent from the comparable period a year ago, but were below analysts' expectations. Same store sales rose seven percent from the corresponding period a year ago.
Keystone estimated that net income per share for the quarter will be between $0.23 and $0.25, before costs relating to the consolidation of certain service centers acquired in recent acquisitions. It is anticipated that final results of operations will be released early next week.
John Palumbo, Vice-President and Chief Financial Officer, said, "Revenues were less than anticipated for the second quarter primarily because of the timing of acquisitions and the delay in opening start-ups. We are encouraged by the seven percent increase in same store sales and with the progress we made during the second quarter in successfully divesting the mechanical parts businesses which had revenues of more than $120 million. These businesses were acquired earlier in the quarter from Republic Automotive. The net proceeds of the divestiture allowed us to retire substantially all of the company's debt and to end the quarter with in excess of $40 million dollars in cash. We are also very pleased at the progress we have made with the consolidation of seven duplicate warehouse sites that will yield future cost savings."
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 100 warehouses, of which 21 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, autoglass and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle.