Exhibit 99
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CONTACT: | | Robert Jaffe |
| | | PondelWilkinson MS&L (323) 866-6060 |
KEYSTONE AUTOMOTIVE INDUSTRIES INC. REPORTS RECORD REVENUES
FOR FISCAL 2003 FOURTH QUARTER AND FULL YEAR
POMONA, CA – June 5, 2003 – 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.”
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Keystone Automotive Industries, Inc.
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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.
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(Tables Follow)
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share and share amounts)
| | | Thirteen weeks ended March 28, 2003
| | | Thirteen weeks ended March 29, 2002
| | | Fifty-two weeks ended March 28, 2003
| | | Fifty-two weeks ended March 29, 2002
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| | | (unaudited) | | | | | | (unaudited) | | | | |
Net sales | | $ | 122,490 | | | $ | 107,864 | | | $ | 438,899 | | | $ | 382,274 | |
Cost of sales | | | 69,372 | | | | 61,432 | | | | 247,913 | | | | 218,475 | |
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Gross profit | | | 53,118 | | | | 46,432 | | | | 190,986 | | | | 163,799 | |
Operating expenses : | | | | | | | | | | | | | | | | |
Selling and distribution | | | 35,537 | | | | 30,932 | | | | 129,822 | | | | 114,276 | |
General and administration | | | 10,043 | | | | 9,152 | | | | 38,184 | | | | 32,816 | |
Non-recurring | | | — | | | | — | | | | — | | | | 6,796 | |
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Operating income | | | 7,538 | | | | 6,348 | | | | 22,980 | | | | 9,911 | |
Other income | | | 502 | | | | 476 | | | | 1,782 | | | | 1,895 | |
Interest expense | | | (172 | ) | | | (148 | ) | | | (553 | ) | | | (698 | ) |
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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 | |
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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 | ) |
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Net income (loss) | | $ | 4,942 | | | $ | 4,134 | | | $ | 14,747 | | | $ | (22,033 | ) |
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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 | ) |
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Diluted | | $ | 0.33 | | | $ | 0.28 | | | $ | 0.99 | | | $ | (1.48 | ) |
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Weighted average shares outstanding : | | | | | | | | | | | | | | | | |
Basic | | | 14,665,000 | | | | 14,379,000 | | | | 14,635,000 | | | | 14,467,000 | |
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Diluted | | | 14,991,000 | | | | 14,898,000 | | | | 14,968,000 | | | | 14,876,000 | |
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Keystone Automotive Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
| | | March 28, 2003 (Unaudited)
| | | March 29, 2002 (Note)
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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 | |
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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 | |
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Total assets | | $ | 191,809 | | | $ | 159,686 | |
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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 | |
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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 | ) |
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Total shareholders’ equity | | | 141,642 | | | | 126,314 | |
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Total liabilities and shareholders’ equity | | $ | 191,809 | | | $ | 159,686 | |
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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.
