Keystone Automotive Operations, Inc. Reports First Quarter 2006 Results
EXETER, Pa., May 16, 2006 -- Keystone Automotive Operations, Inc., the largest distributor and marketer of specialty automotive accessories in North America, today announced financial results for the first quarter ended April 1, 2006. Highlights include:
* Net sales for the first quarter ended April 1, 2006 were $158.2 million,
an increase of $38.3 million, or 32.0%, as compared to $119.9 million
for the same period in the prior year. The sales increase was driven
primarily by the integration of Blacksmith Distributing and Reliable
Automotive customers, further penetration in our developing markets and
higher sales to existing customers.
* Gross profit for the first quarter ended April 1, 2006 was $51.4
million, or 32.5% as a percentage of sales, as compared to $40.6
million, or 33.9% as a percentage of sales for the same period in the
prior year. This decrease was primarily driven by increased freight
expense as a result of expanded geographic reach and the servicing of
smaller customers due to the Reliable acquisition.
* Operating income for the first quarter ended April 1, 2006 was $9.2
million, an increase of $1.0 million, or 11.6%, as compared to $8.2
million for the comparable period in 2005. The increase in operating
income resulted primarily from higher net sales partially offset by
lower gross margin percentages and an increase in selling, general and
administrative expenses which included $0.9 million of non-cash stock-
based compensation related to the retirement of the former President and
Chief Executive Officer.
* Net income for the first quarter ended April 1, 2006 was $0.5 million
compared to $1.1 million for the same period last year.
* As of April 1, 2006 the Company had a cash and cash equivalents balance
of $10.0 million. The company's net debt (total debt less cash) at the
end of the first quarter was $348.0 million.
"In a challenging environment, we continued to grow sales and profitability, successfully integrate Reliable Automotive and more effectively leverage our existing infrastructure," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations. "With much of the operational complexity behind us, the benefits of combining Keystone and Reliable are being realized. Our customers and vendors are seeing more and better products and promotional programs and enhanced service including direct delivery with greater frequency in certain target markets."
Summary Financials (Unaudited)
Summary Income Statement
($ in millions)
Three Months Ended Three Months Ended
April 2, 2005 April 1, 2006
Net sales $119.9 $158.2
Gross margin 40.6 51.4
Operating income 8.2 9.2
Net income (loss) 1.1 0.5
Summary Balance Sheet
($ in millions)
As of December 31, 2005 As of April 1, 2006
Assets
Current assets $184.4 $202.0
Property, plant and equipment, net 51.9 52.2
Other non-current assets 455.4 451.6
Total assets 691.7 705.8
Liabilities and Stockholders Equity
Current liabilities 90.6 105.6
Long-term debt 350.0 347.4
Other long-term liabilities 64.1 64.5
Total liabilities 504.7 517.5
Stockholders equity 187.0 188.3
Total liabilities and stockholders
equity 691.7 705.8
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About Keystone Automotive Operations
Keystone Automotive Operations, Inc. (http://www.ekeystone.com/) is the largest distributor and marketer of specialty automotive accessories in North America, providing more than 800 product lines of automotive parts and accessories to approximately 16,000 wholesale customers. Keystone Automotive operates three distribution centers and 19 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 375 trucks that can provide next-day delivery to over 45 states and Canada.