POMONA, Calif., June 5, 2003 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported record revenues and improved operating results for its fourth quarter and fiscal year ended March 28, 2003.
For the 2003 fiscal fourth quarter, net sales increased 14 percent to $122.5 million from $107.9 million in the same quarter a year ago. Net income grew 20 percent to $4.9 million, or $0.33 per diluted share, from $4.1 million, or $0.28 per diluted share, in the fiscal 2002 fourth quarter.
For the fifty-two week period ended March 28, 2003, net sales increased 15 percent to $438.9 million from $382.3 million in fiscal 2002. Net income totaled $14.8 million, or $0.99 per diluted share, compared with a net loss of $22.0 million, or $1.48 per diluted share, in fiscal 2002. The net loss in fiscal 2002 included 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.
"Fiscal 2003 is our second consecutive year of strong revenue and operating income growth," said Charles J. Hogarty, president and chief executive officer of Keystone Automotive Industries, Inc. "As we look forward, we remain very optimistic. We believe the insurance industry's willingness to use competitive parts will continue to increase, buoyed by generally favorable decisions coming out of the courts around the country. Keystone is uniquely positioned to benefit from that trend. Our quality initiatives such as ISO 9001 and Platinum Plus have set us apart from our competition. In addition, our growing distribution network offers unequaled service to the insurance and collision repair industries."
Hogarty said the Company's IT rollout is progressing well and upon completion of the rollout anticipates improved inventory utilization and lower administrative costs.
The Company noted that results for the 2003 fiscal fourth quarter include $610,000 of income related to the settlement of litigation regarding the Company's previous software installation, and a charge of $940,000 for severance costs and future lease costs on an abandoned master warehouse. These items were recorded in the general and administrative section of the condensed consolidated statements of operations.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 117 distribution facilities, of which 21 serve as regional hubs, located in 38 states, Vancouver, Canada and Tijuana, Mexico. 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.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share and share amounts)
Thirteen Thirteen Fifty-two Fifty-two
weeks ended weeks ended weeks ended weeks ended
March 28, March 29, March 28, March 29,
2003 2002 2003 2002
---- ---- ---- ----
(unaudited) (unaudited)
Net
sales $122,490 $107,864 $438,899 $382,274
Cost of
sales 69,372 61,432 247,913 218,475
--------- --------- --------- ---------
Gross
profit 53,118 46,432 190,986 163,799
Operating
expenses :
Selling and
distri-
bution 35,537 30,932 129,822 114,276
General and
admini-
stration 10,043 9,152 38,184 32,816
Non-
recurring -- -- -- 6,796
------- ------- -------- --------
Operating
income 7,538 6,348 22,980 9,911
Other
income 502 476 1,782 1,895
Interest
expense (172) (148) (553) (698)
-------- -------- -------- -------
Income before
income taxes
and cumulative
effect of
change in
accounting
principle 7,868 6,676 24,209 11,108
Income
taxes 2,926 2,542 9,462 4,450
------ ------ ------ -------
Net income
before
cumulative
effect of
accounting
change $4,942 $4,134 $14,747 $6,658
Cumulative
effect
of change in
accounting
principle -- -- -- (28,691)
-------- --------- --------- ---------
Net income
(loss) $4,942 $4,134 $14,747 $(22,033)
======= ======= ======== =========
Per Common
share :
Income before
cumulative
effect of a
change in
accounting
principle
Basic $ 0.34 $ 0.29 $ 1.01 $ 0.46
Diluted $ 0.33 $ 0.28 $ 0.99 $ 0.45
Cumulative
effect of a
change in
accounting
principle
Basic -- -- -- $(1.98)
Diluted -- -- -- $(1.93)
Net income
(loss)
Basic $0.34 $0.29 $1.01 $(1.52)
====== ===== ====== ======
Diluted $0.33 $0.28 $0.99 $(1.48)
====== ===== ====== ======
Weighted
Average shares
outstanding :
Basic 14,665,000 14,379,000 14,635,000 14,467,000
Diluted 14,991,000 14,898,000 14,968,000 14,876,000
========== ========== ========== ==========
Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
March 28, 2003 March 29, 2002
(Unaudited) (Note)
ASSETS
Current Assets:
Cash and cash
equivalents $3,658 $3,652
Accounts receivable,
net of allowance
of $1,291 at
March 2003 and $1,046
at March 2002 39,753 33,524
Inventories,
primarily
finished
goods 101,595 81,503
Other current
assets 10,016 8,090
-------- --------
Total current assets 155,022 126,769
Plant, property and
equipment, net 23,659 19,344
Goodwill 3,040 1,805
Other intangibles, net
of accumulated
amortization
of $3,099 at
March 2003 and
$2,755 at
March 2002 1,046 1,397
Other assets 9,042 10,371
-------- ---------
Total assets $191,809 $159,686
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Credit facility $ 16,606 $ 6,832
Accounts payable 18,330 14,589
Accrued liabilities 12,992 9,889
Current portion of
long-term debt
and capital leases 15 75
-------- --------
Total current
liabilities 47,943 31,385
Long-term debt,
less current
portion - 14
Other
long-term
liabilities 2,224 1,973
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 14,692,000 at March 2003
and 14,583,000 at
March 2002 81,221 80,383
Warrant 236 236
Additional paid-in
capital 2,269 1,864
Retained earnings 59,119 44,372
Accumulated other
comprehensive loss (1,203) (541)
-------- --------
Total shareholders'
equity 141,642 126,314
-------- --------
Total liabilities
and
shareholders'
equity $ 191,809 $ 159,686
========= =========
NOTE:The balance sheet at March 29, 2002 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.