Keystone Automotive Operations, Inc. Reports First Quarter Fiscal 2009 Financial Results
EXETER, Pa., May 18, 2009 -- Keystone Automotive Operations, Inc., a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced financial results for the first quarter of fiscal year 2009 ended April 4, 2009. Highlights include:
Sales for the first quarter ended April 4, 2009 were $119.7 million, a decrease of $24.2 million, or 16.8%, compared to $143.9 million for the first quarter in the prior year. The decrease in sales was driven by a combination of factors, including less consumer spending on discretionary items due to the general economic recession, a year-over-year decline in truck and SUV sales, and a reduction in credit availability in the marketplace.
Gross profit for the first quarter of fiscal 2009 was $39.6 million, a decrease of $6.8 million, or 14.8%, from the same period in the prior year. Gross margin was 33.1%, up from 32.3% in the first quarter of the prior fiscal year.
Operating loss for the first quarter of fiscal 2009 was $1.1 million, a decrease of $5.5 million compared to a $4.4 million operating income for the same period in the prior year. The decrease was attributable to the decline in sales, partially offset by the improvement in gross margin and by a decrease in operating expenses. The expense reductions came from efficiencies in sales, warehouse and delivery operations, and from a decrease in fuel cost.
Net loss for the first quarter of fiscal 2009 was $5.4 million, versus a net loss of $2.8 million for the same period in the prior year. The higher net loss principally resulted from the previously mentioned $6.8 million decrease in gross profit, partially offset by a $1.5 million decrease in selling, general and administrative expenses, a $1.2 million decrease in interest expense and a $1.6 million increase in income tax benefit.
As of April 4, 2009, the Company had a cash balance of $55.3 million and an additional $41.0 million of borrowing capacity under its revolving credit facility.
"We are never happy to post a year-over-year sales decrease, but given the challenging economic picture, we believe Keystone's financial results for the first quarter suggest that we are significantly out-performing the broader aftermarket accessories and equipment industry," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations, Inc. "We are very pleased with the increase we achieved in gross margin and remain focused on diligent category management, deeper sales penetration, enhanced customer service and a relentless commitment to operational improvements. Our efficient management of working capital and sturdy cash position, coupled with strong customer and vendor relationships, position us well to continue to win market share."
Keystone will hold a conference call to discuss the financial results for the first quarter ended April 4, 2009 on May 20, 2009, at 11:00 a.m. EDT. To participate, please dial in to the conference call at (866) 509-8636, access code 99095894. The conference call topic is "Keystone Automotive Operations, Inc. First Quarter Earnings Conference Call".
A telephone replay of the call will be available from 12:15 p.m. EDT on May 20, 2009 until 11:59 p.m. EDT on May 27, 2009. The replay of the call may be accessed by dialing (800) 642-1687, access code 99095894.