POMONA, Calif., June 4, 2002 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record revenues and improved operating results for its fourth quarter and fiscal year ended March 29, 2002.
Net sales for the fourth quarter of fiscal 2002 increased 11.3 percent to $107.9 million from $97.0 million a year ago. For the same period, net income was $4.1 million, or $0.28 per diluted share, compared with a net loss of $3.0 million, or $0.21 per diluted share, last year. The net loss for the fourth quarter of fiscal 2001 includes non-recurring charges totaling $7.1 million, most of which relates to a loss on the impairment of long-lived assets in accordance with Statement of Financial Accounting Standards (SFAS No. 121) "Accounting for the Impairment of Long Lived assets and for Long Lived assets to be disposed of."
Net sales for the fifty-two week period ended March 29, 2002, increased 8.6 percent to $382.3 million compared with $351.8 million in fiscal 2001. The company reported a net loss for fiscal 2002 of $22.0 million, or $1.48 per diluted share. The net loss is the result of a $28.7 million charge (net of tax) related to the cumulative effect of a change in accounting principle as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No.142) "Goodwill and Other Intangible Assets" and a $6.8 million non-recurring charge related to a write down of the company's investment in an enterprise-wide software conversion. The fiscal 2002 net loss compares to a net loss of $477,000, or $0.03 per diluted share a year earlier. The net loss in fiscal 2001 includes $7.1 million of non-recurring charges primarily relating to a loss recorded in accordance with SFAS No. 121. For fiscal 2002, net income before cumulative effect of change in accounting principle and the non-recurring charge would have been $10.7 million, or $0.72 per diluted share, as compared to net income before non-recurring charge for fiscal 2001 of $3.7 million, or $0.32 per diluted share adjusted for goodwill amortization.
"Fiscal 2002 was a turnaround year for the company, reflecting an increase in demand for aftermarket collision replacement parts by automobile insurance companies, continuing the sales momentum that began to build in late fiscal 2001," said Charles Hogarty, president and chief executive officer of Keystone Automotive Industries.
He noted that improved product mix and a better pricing environment resulted in slightly higher gross margins, which are expected to continue during fiscal 2003.
"Our Platinum Plus product line has gained tremendous acceptance with insurers and collision repair professionals and has become the industry standard for aftermarket collision replacement parts. As a result, Keystone is optimistic about the future as the aftermarket parts industry continues its solid growth," Hogarty said.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs. 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 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 as a result of (i) the cost and time involved in implementing the new management information system contracted for in January 2002 and currently being implemented; (ii) the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal; (iii) the recent diminished value verdict in Georgia; (iv) Keystone being named as an additional defendant in a class action in Philadelphia challenging the use of aftermarket parts in repairing an insured vehicle; and (v) the uncertainty involved in acquiring businesses and/or opening greenfield operations. In addition, there can be no assurance that the momentum in sales and net income experienced during the last fiscal year will be sustainable. 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-Q for the quarter ended December 28, 2001 on file with the Securities and Exchange Commission.
Condensed Consolidated Statements of Operations
(In thousands, except per share and share amounts)
(Unaudited)
Thirteen Thirteen Fifty-two Fifty-two
weeks weeks weeks weeks
ended ended ended ended
March 29, March 30, March 29, March 30,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 107,864 $ 96,950 $ 382,274 $ 351,845
Cost of sales 61,432 56,606 218,475 204,073
-------- -------- -------- --------
Gross profit 46,432 40,344 163,799 147,772
Operating expenses:
Selling and
distribution 30,932 29,389 114,276 110,170
General and
administration 9,152 7,409 32,816 30,155
Non-recurring -- 7,104 6,796 7,104
-------- -------- -------- --------
Operating income
(loss) 6,348 (3,558) 9,911 343
Other income 476 543 1,895 2,037
Interest expense (148) (370) (698) (1,456)
-------- -------- -------- --------
Income (loss)
before income
taxes and
cumulative
effect of
change in
accounting
principle 6,676 (3,385) 11,108 924
Income tax provision
(benefit) 2,542 (366) 4,450 1,401
-------- -------- -------- --------
Net income (loss)
before cumulative
effect of
accounting
change $ 4,134 $ (3,019) $ 6,658 $ (477)
Cumulative effect
of change in
accounting
principle
(net of tax) -- -- (28,691) --
-------- -------- -------- --------
Net income (loss) $ 4,134 $ (3,019) $ (22,033) $ (477)
======== ======== ======== ========
Per Common share:
Income (loss)
before
cumulative
effect of a
change in
accounting
principle
Basic $ 0.29 $ (0.21) $ 0.46 $ (0.03)
Diluted $ 0.28 $ (0.21) $ 0.45 $ (0.03)
Cumulative effect
of a change in
accounting
principle
Basic -- -- $ (1.98) --
Diluted -- -- $ (1.93) --
Net income (loss)
Basic $ 0.29 $ (0.21) $ (1.52) $ (0.03)
======= ======== ======== ========
Diluted $ 0.28 $ (0.21) $ (1.48) $ (0.03)
======= ======== ======== ========
Weighted average
shares
outstanding:
Basic 14,379,000 14,359,000 14,467,000 14,420,000
========== ========== ========== ==========
Diluted 14,898,000 14,472,000 14,876,000 14,449,000
========== ========== ========== ==========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
March 29, 2002 March 30, 2001
(Unaudited) (Note)
-------------- --------------
ASSETS
------
Current Assets:
Cash and cash equivalents
$ 3,652 $ 3,005
Accounts receivable,
net of allowance of $1,046 at
March 2002 and $1,029 at
March 2001 33,524 29,702
Inventories, primarily
finished goods 81,503 82,499
Other current assets 8,090 8,470
-------- --------
Total current assets 126,769 123,676
Plant, property and
equipment, net 19,344 21,270
Goodwill, net of
accumulated amortization
of $0 at March 2002 and
$4,773 at March 2001 1,805 33,531
Other intangibles, net
of accumulated amortization
of $2,755 at March 2002 and
$2,275 at March 2001 1,397 1,168
Other assets 10,371 4,111
-------- --------
Total assets $ 159,686 $ 183,756
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 6,832 $ 14,880
Accounts payable 14,589 12,070
Accrued liabilities 9,889 8,293
Current portion of
long-term debt 75 40
-------- --------
Total current
liabilities 31,385 35,283
Long-term debt, less
current portion 15 49
Other long-term
liabilities 1,973 2,483
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
14,583,000
at March 2002 and 14,359,000
at March 2001 80,383 78,581
Warrant 236 236
Additional paid-in capital 1,865 1,260
Retained earnings 44,370 66,405
Accumulated other
comprehensive loss (541) (541)
-------- --------
Total shareholders' equity 126,313 145,941
-------- --------
Total liabilities and
shareholders' equity $ 159,686 $ 183,756
======== ========
NOTE: The balance sheet at March 30, 2001 has been derived from the audited consolidated financial statements at the 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.