Keystone Automotive Operations, Inc. Reports Second Quarter 2006 Results
EXETER, Pa., Aug. 15, 2006 -- Keystone Automotive Operations, Inc., the largest distributor and marketer of specialty automotive accessories in North America, today announced financial results for the second quarter ended July 1, 2006. Highlights include:
* Net sales for the second quarter ended July 1, 2006 were $169.3 million,
an increase of $27.8 million, or 19.6%, as compared to $141.5 million
for the same period in the prior year. Sales increased due to new
customer acquisitions and higher sales to existing customers in our
developing markets as well as the integration of Blacksmith and Reliable
customers.
* Gross profit for the second quarter ended July 1, 2006 was $54.0
million, or 31.9% as a percentage of sales, as compared to $45.1
million, or 31.9% as a percentage of sales for the same period in the
prior year. The increase in gross profit dollars was due to the
increase in sales, partially offset by increased freight expense as a
result of expanded geographic distribution.
* Operating income for the second quarter ended July 1, 2006 was $12.8
million, an increase of $2.5 million, or 25.0%, as compared to $10.3
million for the comparable period in 2005. The increase in operating
income resulted primarily from higher net sales partially offset by an
increase in selling, general and administrative expenses due to higher
delivery, selling and warehouse expenses as well as costs associated
with operating and integrating Reliable.
* Net income for the second quarter ended July 1, 2006 was $2.7 million
compared to $3.1 million for the same period last year.
* As of July 1, 2006 the Company had a cash and cash equivalents balance
of $1.2 million. The company's net debt (total debt less cash) at the
end of the second quarter was $354.3 million.
"We are pleased with our overall performance for the quarter considering the economic slowdown we are experiencing. We completed the integration of Reliable ahead of schedule, and the benefits of the acquisition are already apparent in the significant increases we reported in both sales and operating income," said Ed Orzetti, CEO of Keystone Automotive Operations. "We also expanded our operations with the opening of a new warehouse outside of Atlanta to better serve the Southeast region."
Summary Financials (Unaudited)
Summary Income Statement
($ in millions)
Three Months Ended Three Months Ended
July 2, 2005 July 1, 2006
Net sales $141.5 $169.3
Gross profit 45.1 54.0
Operating income 10.3 12.8
Net income (loss) $ 3.1 $ 2.7
Summary Balance Sheet
($ in millions)
As of December 31, 2005 As of July 1, 2006
Assets
Current assets $184.4 $216.5
Property, plant and equipment, net 51.9 54.4
Other non-current assets 455.4 446.9
Total assets $691.7 $717.8
Liabilities and Stockholders Equity
Current liabilities $ 90.6 $119.8
Long-term debt 350.0 343.5
Other long-term liabilities 64.1 63.3
Total liabilities 504.7 526.6
Stockholder's equity 187.0 191.2
Total liabilities and stockholder's
equity $691.7 $717.8
Conference Call Details
Keystone Automotive Operations will hold a live conference call to discuss second quarter 2006 financial results on August 18, 2006 at 10:00 a.m. EDT. To participate, please dial in to the conference call at (866) 600-0797, access code 4522693. The conference call topic is Keystone Automotive Operations Earnings Conference Call.
A telephone replay of the call will be available from 12:00 p.m. EDT on August 18, 2006 until 11:59 p.m. EDT on August 25, 2006. The replay of the call may be accessed by dialing (800) 642-1687, access code 4522693.
About Keystone Automotive Operations
Keystone Automotive Operations, Inc. (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 four distribution centers and 19 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 350 trucks that can provide next-day delivery to over 42 states and Canada.
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; and other risks. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.