POMONA, Calif., May 24, 2007 (PRIME NEWSWIRE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record earnings and sales for its fiscal 2007 fourth quarter and year ended March 30, 2007, supported by continued market share growth for quality alternative automotive replacement parts.
Net income for the fiscal fourth quarter climbed 51.1 percent to $11.4 million, or $0.69 per diluted share, from $7.6 million, or $0.46 per diluted share, a year ago. Net income for the fiscal 2007 fourth quarter included one-time gains of approximately $886,000, or $0.05 per diluted share, related to insurance recoveries for prior-year property loss claims and the company's portion of an antitrust lawsuit settlement concerning automotive refinishing paint pricing between January 1, 1993 and December 31, 2000. Operating income increased 33.6 percent to $17.1 million from $12.8 million a year ago. Operating margin was 8.5 percent compared with 7.1 percent a year earlier. Net sales for the fiscal fourth quarter climbed 11.3 percent to $200.2 million from $179.9 million last year. Same store sales growth for the fourth quarter was 11.2 percent.
Net income for the full fiscal year climbed 36.2 percent to $30.3 million, or $1.84 per diluted share, from $22.3 million, or $1.38 per diluted share, a year ago. Operating income for the same period increased 33.9 percent to $47.6 million from $35.6 million a year ago, with operating margin 6.7 percent compared with 5.7 percent a year ago. Net sales for fiscal 2007 climbed 13.6 percent to $714.0 million from $628.3 million last year. Same store sales growth for the full fiscal year was 11.1 percent.
Gross margin for the fiscal fourth quarter was 45.2 percent compared with 45.6 percent last year. For the full fiscal year, gross margin was 44.6 percent compared with 44.9 percent. The company is continuing initiatives to enhance its in-stock availability of parts across the company's network through the implementation of a cross-dock logistics strategy. As a result of this strategic initiative, certain operating expenses have been shifted from selling and distribution costs on the income statement to cost of sales.
"The company's record financial performance for fiscal 2007 highlights the benefits of ongoing organizational and strategic initiatives our team is implementing to improve parts availability throughout the country," said Rick Keister, president and chief executive officer.
He noted that the company's start-up bumper remanufacturing operation in Mexico is proceeding on schedule, with an overall negative after-tax impact of approximately $128,000 for the quarter and $799,000 for the full-year.
Keister indicated that lights, bumpers and crash parts contributed more than 69.0 percent of total sales for the fiscal year, with light sales climbing 21.6 percent, bumpers 13.9 percent and crash parts 14.2 percent compared with the prior year.
He noted that the continuing International Trade Commission investigation with respect to the importation and sale of certain aftermarket collision replacement parts for the Ford Motor Company's F-150 truck is progressing. Recent developments include a previously announced decision by the International Trade Commission to extend the target date to June 6, 2007 from May 4, 2007 for its decision on remedy, bonding and the public interest. The Commission took this action to consider a motion from the company and the other respondents to review the initial determination of the administrative law judge in such investigation. The Commission's action was taken in light of a recent United States Supreme Court decision, KSR International Co. v. Teleflex Inc., which addressed claims of obviousness in patent law and which may have potential implications relative to the Ford ITC matter.
He noted that fiscal fourth quarter results were not significantly impacted by legal fees associated with the ongoing legal dispute discussed above. However, full-year results included approximately $1.3 million in additional legal fees, primarily due to costs associated with the ITC case.
Teleconference
Rick Keister, president and chief executive officer, and Jeff Gray, chief financial officer, will host an investor conference call today at 9:00 a.m. Pacific Time to discuss the company's financial results and operations for the fiscal fourth quarter. The call will be open to all interested investors through a live audio broadcast by calling (877) 440-9648 (domestic) or (706) 679-0668 (international) with call ID number 9410597. For those who are not available to listen to the live broadcast, the call will be archived for two weeks on Keystone's website. A telephone playback of the conference call will also be available from 10:00 a.m. Pacific time Thursday, May 24 through 9:00 p.m. Tuesday, May 29 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 9410597.
About Keystone
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 137 distribution facilities, of which 22 serve as regional hubs, located in 39 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 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 the ultimate disposition of the International Trade Commission investigation and its impact on the company; the ability to achieve the initiatives in place for fiscal 2008; the impact of increased competition and the aggressive actions being taken by certain car manufacturers to negatively impact the aftermarket collision replacement parts industry, including patenting vehicle parts sold by the aftermarket, instituting litigation relating to alleged trademark violations and lobbying state legislatures to adopt legislation favoring the OEM's; the impact on the company as a result of actions which have been, or in the future may be, taken by insurance companies with respect to the use of aftermarket products in the repair of vehicles; the pending matter before the ITC, and the associated costs of litigation. Reference is also specifically made to the "Risk Factors" section set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) for the fiscal year ended March 31, 2007 and in Part II, Item 1A of its Form 10-Qs filed with the SEC thereafter for additional information on the 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 STATEMENT OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Thirteen Thirteen Fifty-two Fifty-two
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
March 30, March 31, March 30, March 31,
2007 2006 2007 2006
-------- -------- -------- --------
Net Sales 200,186 179,939 713,955 628,328
Cost of Sales 109,607 97,914 395,338 346,362
-------- -------- -------- --------
Gross Profit 90,579 82,025 318,617 281,966
Operating Expenses:
Selling & Distribution 52,816 54,171 199,749 189,665
General & Administrative 20,669 15,056 71,238 56,732
-------- -------- -------- --------
Operating Income 17,094 12,798 47,630 35,569
Other Income 1,907 255 2,936 2,243
Interest Expense (18) (304) (299) (770)
-------- -------- -------- --------
Income Before Income Taxes 18,983 12,749 50,267 37,042
Income Taxes 7,554 5,186 19,943 14,784
-------- -------- -------- --------
Net Income $ 11,429 $ 7,563 $ 30,324 $ 22,258
======== ======== ======== ========
Per Common Share
Income
Basic: $ 0.70 $ 0.47 $ 1.86 $ 1.39
======== ======== ======== ========
Diluted: $ 0.69 $ 0.46 $ 1.84 $ 1.38
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic: 16,336 16,157 16,276 16,000
======== ======== ======== ========
Diluted: 16,499 16,311 16,450 16,095
======== ======== ======== ========
Note: The preliminary condensed consolidated statements of income
have been prepared on a basis consistent with the company's
previously prepared statements of income filed with the Securities
and Exchange Commission for its prior quarter and annual reports, but
do not include the footnotes required by generally accepted
accounting principles for complete financial statements.
KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 30, March 31,
2007 2006
-------- --------
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 20,593 $ 4,733
Accounts receivable, net of allowance of
$843 in 2007 and $935 in 2006 65,154 56,774
Inventories, primarily finished goods 133,877 128,458
Other current assets 19,075 17,137
-------- --------
Total current assets 238,699 207,102
Plant, property and equipment, net 39,056 33,713
Goodwill 39,568 39,369
Other intangibles, net of accumulated
amortization of $1,932 in 2007 and $1,544 in
2006 1,017 1,402
Other assets 8,640 7,107
-------- --------
Total assets $326,980 $288,693
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ -- $ 9,544
Accounts payable 36,053 35,310
Accrued liabilities 27,209 19,519
-------- --------
Total current liabilities 63,262 64,373
Other long-term liabilities 3,687 1,373
Commitments and contingencies -- --
Shareholders' Equity:
Preferred stock, no par value:
Authorized shares -- 3,000
None issued and outstanding -- --
Common stock, no par value:
Authorized shares -- 50,000
Issued and outstanding shares 16,356 in
2007 and 16,269 in 2006, at stated value 101,686 97,956
Restricted stock -- 1,154
Additional paid-in capital 14,975 10,470
Retained earnings 143,683 113,359
Accumulated other comprehensive income (313) 8
-------- --------
Total shareholders' equity 260,031 222,947
-------- --------
Total liabilities and shareholders'
equity $326,980 $288,693
======== ========
Note: The preliminary condensed consolidated balance sheets have been
prepared on a basis consistent with the company's previously prepared
balance sheets filed with the Securities and Exchange Commission for
its prior quarter and annual reports, but do not include the
footnotes required by generally accepted accounting principles for
complete financial statements.