Keystone Automotive Industries, Inc. Reports Record First Quarter Revenues

POMONA, Calif., Aug. 1, 2002 (PRIMEZONE) -- Keystone Automotive Industries, Inc. today reported strong fiscal first quarter results, supported by a 10 percent increase in same store sales.

Net income for the fiscal quarter of fiscal 2003, which ended June 28, 2002, jumped 67 percent to $3.5 million, or $0.23 per diluted share, from $2.1 million, or $0.15 per diluted share, before cumulative effect of a change in accounting principle, a year ago.

For the same period, net sales increased 16.6 percent to a record $106.7 million from $91.5 million a year earlier. Same store sales increased approximately 10 percent over the same period a year earlier. Sales for the current fiscal quarter included results from six acquisitions and four greenfield operations that were completed or opened after the first quarter of fiscal 2002.

The net loss of $26.6 million in the prior- year period, was due to a $28.7 million charge (net of tax) related to the cumulative effect of a change in accounting principle, made retroactive to the first quarter of fiscal 2002, as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No. 142) ``Goodwill and Other Intangible Assets.''

``Operating results for the quarter represent the sixth consecutive year-over-year increase in quarterly operating performance for Keystone. Several key factors contributed to Keystone's solid performance, including more frequent specification of aftermarket parts by certain insurance companies and a growing acceptance of Keystone's private label Platinum Plus brand of products,'' said Charles J. Hogarty, president and chief executive officer.

He noted that improved product mix and purchasing and a better pricing environment resulted in a higher gross margin.

``Keystone's Platinum Plus product line continues to enjoy increasing acceptance by both insurers and collision repair professionals and it has become the industry standard for aftermarket collision replacement parts. As the aftermarket collision replacement parts industry continues to gain momentum, we are optimistic about Keystone's prospects and the outlook for the balance of fiscal 2003,'' Hogarty added.

Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs, located in 37 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.