Press Releases
Keystone Automotive Industries Reports First Quarter Results
POMONA, Calif. - August 10, 2000 -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today reported net income for the first fiscal quarter (a 13-week period) ended June 30, 2000 of $1.5 million, or $0.10 per diluted share, compared with $5.5 million, or $0.33 per diluted share, in the 14 week period a year ago. Net sales for the first quarter were $86.6 million, compared with $101.4 million a year ago.
Charles J. Hogarty, president and chief executive officer, said, "The quarter to quarter comparison is a difficult one and not necessarily meaningful, as last year's quarter had 14 weeks compared with 13 weeks this year. In addition, the State Farm decision continues to have a negative impact on the aftermarket collision parts business
"While the last nine months have been difficult and challenging for all of our employees, we are encouraged by the fact that we have been able to remain profitable in a very difficult business environment. Our goal now is to rebuild revenues. We have taken a number of steps that we believe will deliver results in the future, including:
-- The introduction of the Keystone's competitively priced Platinum
Plus line of collision replacement parts with fit, finish and
quality guaranteed for the life of the vehicle.
-- A strategic alliance with Copart, Inc., the nation's leading
auctioneer of salvage vehicles to sell Keystone parts through the
copart.com web site. Copart, Inc. currently auctions over 600,000
vehicles at 76 locations across the United States. It is estimated
that approximately one half of these vehicles are sold to
rebuilders, who in turn purchase salvage or aftermarket parts.
-- A continued emphasis on non-affected products including recycled
bumpers, radiators, condensers, wheels, and paint and supplies.
"We continue to believe in the economic value provided by our high quality aftermarket collision replacement parts. This economic value benefits consumers through contributing to lower auto insurance premiums and lower costs for replacement parts for non insured repairs, benefits insurance companies by reducing claims costs and preventing an OEM monopoly on collision parts and benefits collision repair facilities by increasing the number of repairable vehicles."
Keystone Automotive Industries, Inc. distributes its products throughout the United States primarily to collision repair shops through its 118 warehouses, of which 21 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, auto glass 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 of (i) the implementation of a new comprehensive enterprise software package for accounting, distribution and inventory planning (ii) the verdict in the State Farm Mutual Automobile Insurance company class action, which is on appeal, and (iii) the possibility that additional automobile insurance companies will suspend the use of aftermarket collision replacement parts in repairing covered vehicles. In addition, there can be no assurance that steps being taken to rebuild revenues described above will be successful. 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-K for the year ended March 31, 2000 on file with the Securities and Exchange Commission.
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
June 30, July 2,
2000 1999
Net sales $ 86,612 $ 101,381
Cost of sales 49,674 56,475
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Gross profit 36,938 44,906
Operating expenses:
Selling and distribution expenses 26,936 28,574
General and administrative 7,658 7,657
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Operating income 2,344 8,675
Other income 438 686
Interest income (expense) (297) (48)
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Income before income taxes 2,485 9,313
Income taxes 1,019 3,818
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Net income 1,466 $ 5,495
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Earnings per share:
Basic $ 0.10 $ 0.33
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Diluted $ 0.10 $ 0.33
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Weighted average shares outstanding:
Basic 14,557,000 16,728,000
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Diluted 14,557,000 16,818,000
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CONTACT: Steven D. Stern / Gary S. Maier
Pondel/Wilkinson Group
(310) 207-9300