POMONA, Calif., Aug. 2, 2006 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record earnings and sales for its fiscal 2007 first quarter ended June 30, 2006, supported by ongoing industry demand for generic automotive replacement parts and management's continued focus on operating leverage.
Net income for the first quarter climbed 29.2 percent to $6.1 million, or $0.37 per diluted share, from $4.7 million, or $0.30 per diluted share, a year ago. Operating income increased 39.5 percent to $10.0 million from $7.2 million a year ago, reflecting continued sales growth and operating leverage. Net sales for the first quarter climbed 15.8 percent to $167.7 million from $144.8 million last year. Same store sales growth for the first quarter was 10.8 percent.
Gross margin for the first quarter was 44.2 percent compared with 44.3 percent last year, reflecting continued improvement in gross margin offset by cross-dock expense of approximately $1.3 million. The implementation of cross-docks has resulted in the elimination of certain expenses previously included in selling and distribution costs, which have been replaced with logistical expenses reflected in cost of sales.
"Results for the quarter reflect continued industry momentum, supported by improved in-stock parts availability, the benefits of enhanced infrastructure and improved operating leverage," said Richard L. Keister, president and chief executive officer.
He noted that year-over-year operating margins were up 100 basis point, despite the stock option expenses of approximately 20 basis points associated with the implementation of SFAS No. 123R, "Share-Based Payment."
Keister indicated that results for the company's first quarter were supported by a 20.1 percent increase in the sale of automotive body parts, which includes fenders, hoods, headlights, radiators, grills and crash parts - representing a sales increase of $14.6 million.
Separately, the company said, effective August 1, 2006, it has been added to the S&P SmallCap 600. In addition, Keystone Automotive was recently included on The Nasdaq Stock Market's newly created top-tier NASDAQ Global Select Market. The new NASDAQ Global Select Market tier, which became effective subsequent to the end of Keystone's fiscal first quarter, includes approximately 1,200 companies of the 3,200 companies listed by NASDAQ.
"Keystone has grown significantly since its initial public offering and listing on Nasdaq in 1996. Today, Keystone is the largest independent supplier of generic alternative collision parts in the world, and being included in the S&P SmallCap 600 and as a member of the NASDAQ Global Select Market highlights the company's success," Keister said.
Teleconference and Web Cast
Richard L. Keister, president and chief executive officer, and Jeff Gray, 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 first 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, or live by calling (877) 440-9648 (domestic) or (706) 679-0668 (international) with call ID number 2775610. 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 12:00 p.m. Pacific time Wednesday, August 2 through 9:00 p.m. Monday, August 7 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 2775610.
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 the ability to achieve the initiatives in place for fiscal 2007; the impact of increased competition and the aggressive actions being taken by certain car manufacturers to negatively impact the aftermarket collision replacement parts industry; the underlying, instituting litigation and lobbying state legislature 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 vehicle; and the impact of moving the company's chief executive offices to Nashville. Reference is also made to the Risk Factors 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, 2006 and in Part II, Item 1A of its Form 10-Qs filed with the SEC thereafter 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 STATEMENT OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
June 30, July 1,
2006 2005
--------- ---------
(Unaudited) (Unaudited)
Net Sales $ 167,673 $ 144,781
Cost of Sales 93,605 80,628
--------- ---------
Gross Profit 74,068 64,153
Operating Expenses:
Selling & Distribution 48,428 43,499
General & Administrative 15,593 13,454
--------- ---------
Operating Income 10,047 7,200
Other Income 330 680
Interest Expense (186) (81)
--------- ---------
Income Before Income Taxes 10,191 7,799
Income Taxes 4,092 3,077
--------- ---------
Net Income $ 6,099 $ 4,722
========= =========
Per Common Share Income
Basic: $ 0.38 $ 0.30
========= =========
Diluted: $ 0.37 $ 0.30
========= =========
Weighted average common shares
outstanding:
Basic: 16,196 15,877
========= =========
Diluted: 16,407 15,991
========= =========
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)
June 30, March 31,
2006 2006
-------- --------
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,394 $ 4,733
Accounts receivable, net of allowance
of $854 at June 2006 and $935 at
March 2006 55,490 56,774
Inventories, primarily finished goods 126,032 128,458
Other current assets 15,105 17,137
-------- --------
Total current assets 202,021 207,102
Plant, property and equipment, net 33,972 33,713
Goodwill 39,446 39,369
Other intangibles, net of accumulated
amortization of $1,655 at June 2006
and $1,544 at March 2006 1,291 1,402
Other assets 7,344 7,107
-------- --------
Total assets $284,074 $288,693
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 167 $ 9,544
Accounts payable 26,705 35,310
Accrued liabilities 24,913 19,519
-------- --------
Total current liabilities 51,785 64,373
Other long-term liabilities 1,362 1,373
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 16,238
at June 2006 and 16,188 at March
2006, at stated value 99,350 97,956
Restricted Stock -- 1,154
Additional paid-in capital 11,774 10,470
Retained earnings 119,458 113,359
Accumulated other comprehensive loss 345 8
-------- --------
Total shareholders' equity 230,927 222,947
-------- --------
Total liabilities and shareholders'
equity $284,074 $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.