FinishMaster Announces Financial Results for 2001
INDIANAPOLIS--Feb. 25, 2002--FinishMaster, Inc. the leading national independent distributor of automotive paints and related accessories, reported today net income for the year ended December 31, 2001 increased 67% to $6,208,000 on net sales of $333,468,000, compared to net income of $3,727,000 on net sales of $337,213,000 in the prior year. Earnings per share increased 65% to $0.81 from $0.49 in the prior year period. Net income before extraordinary loss on early extinguishment of debt for the current year was $6,703,000 or $0.88 per share.
For the fourth quarter ended December 31, 2001, net income increased 120% to $1,768,000 on net sales of $80,286,000, compared to net income of $805,000 on net sales of $79,600,000 in the prior year. Earnings per share were $0.23 compared to $0.11 in the prior year period.
Increased operating income, which resulted from higher gross margins and lower overall expense levels, and reduced interest expense were the primary contributors to the improved financial performance for both the fourth quarter and year. Lower overall debt levels were the major contributor to the decrease in interest expense.
Continued weakness in demand for automotive paints and related accessories had an impact on the Company's net sales. Net sales for the year declined 1.1% as a result of lower ``same store'' sales of 2.5%. Net sales for the quarter increased approximately 1.0%, while ``same store'' sales declined 1.7%. Management expects the industry dynamics that contributed to this decline in demand are not likely to reverse in the next several quarters.
``2001 was a successful year for us with steady growth in net income and earnings per share, reduced debt levels through net working capital management, and the completion of two strategic acquisitions,'' said Wes Dearbaugh, President and Chief Operating Officer. ``We remain concerned with our declining sales, and we have initiated actions to drive customer service to higher levels and to grow sales.''
Selected Historical Financial Data
(000's omitted, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 80,286 $ 79,600 $333,468 $337,213
Gross margin 30,639 30,312 124,183 122,995
Gross margin % 38.2% 38.1% 37.2% 36.5%
Total expenses 25,267 25,820 102,488 103,423
Income from operations 5,372 4,492 21,695 19,572
Interest expense 1,855 2,698 8,547 11,604
Income tax expense 1,749 989 6,445 4,241
Net income before
extraordinary loss 1,768 805 6,703 3,727
Extraordinary loss on
early extinguishment
of debt, net of income
taxes -- -- 495 --
Net income $ 1,768 $ 805 $ 6,208 $ 3,727
Diluted earnings per
share before
extraordinary loss $ 0.23 $ 0.11 $ 0.88 $ 0.49
Diluted earnings
per share $ 0.23 $ 0.11 $ 0.81 $ 0.49
Diluted weighted average
shares outstanding 7,702 7,542 7,648 7,551
EBITDA $ 8,414 $ 7,379 $ 32,114 $ 30,210
Selected Historical Financial Data
(000's omitted, except per share data)
December 31,
2001 2000
-------- --------
Cash $ 2,977 $ 1,513
Accounts receivable, net 28,401 29,063
Inventory 50,096 63,346
Intangible assets, net 102,273 102,858
Property, equipment & all other assets 18,289 21,537
Total assets $202,036 $218,317
Accounts payable $ 37,383 $ 46,470
Current & long-term debt 85,475 101,642
Accrued expenses & all other liabilities 16,643 13,399
Shareholders' equity 62,535 56,806
Total liabilities & shareholders' equity $202,036 $218,317
FinishMaster is the leading national independent distributor of automotive paints, coatings, and related accessories to the automotive collision repair industry. FinishMaster is headquartered in Indianapolis, Indiana and operates three major distribution centers and 158 branches in 25 of the 35 largest metropolitan areas in the country.