Keystone Automotive Operations, Inc. Reports Second Quarter Fiscal 2009 Financial Results
EXETER, Pa., Aug. 14, 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 second quarter of fiscal year 2009 ended July 4, 2009. Highlights include:
-- Sales for the second quarter ended July 4, 2009 were $129.6 million, a
decrease of $36.2 million, or 21.8%, compared to $165.8 million for
the second quarter in the prior year. The decrease in sales was
driven by a combination of factors, including a decrease in consumer
spending due to the general economic recession, a year-over-year
decline in truck and SUV sales, and a reduction of available credit in
the marketplace.
-- Gross profit for the second quarter of fiscal 2009 was $39.5 million,
a decrease of $12.8 million, or 24.5%, from the same period in the
prior year. Gross margin was 30.5%, down from 31.5% in the second
quarter of the prior fiscal year.
-- Operating income for the second quarter of fiscal 2009 was $1.4
million, a decrease of $8.3 million compared to $9.7 million of
operating income for the same period in the prior year. The decrease
was attributable to the decline in sales and gross margin, partially
offset by a decrease in operating expenses. The expense reductions
came from efficiencies in sales, warehouse and delivery operations,
and from a $1.9 million decrease in fuel costs, partially offset by
slightly higher expenses in other general and administrative areas.
-- Net loss for the second quarter of fiscal 2009 was $3.4 million,
versus net income of $1.3 million for the same period in the prior
year. The higher net loss resulted from the previously-mentioned
$12.8 million decrease in gross profit and from a $0.2 million
decrease in other income and sale of property, plant and equipment.
These decreases were partially offset by a $4.6 million decrease in
selling, general and administrative expenses, a $1.0 million decrease
in interest expense, and a $2.7 million increase in income tax
benefits.
-- As of July 4, 2009, the Company had a cash balance of $54.9 million
and an additional $36.7 million of borrowing capacity under its
revolving credit facility.
"While the macroeconomic environment is challenging and the automobile industry remains under pressure, we are encouraged by the long-term growth potential created by our strong market position in the automotive aftermarket accessories industry," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations, Inc. "Our strong liquidity position has allowed us to continue to invest in the business even in these difficult times. Last year we acquired the assets of Arrow Speed Warehouse, and we have added several cross-docks allowing us to serve new customers in new geographic areas. We also continue to improve our productivity processes, and support and promotion of our vendors' products, which in turn positively impacts customer service. Once the economy and, particularly the automotive industry recover, we expect to be well-positioned to grow our business."
Summary Financials (Unaudited)
Summary Income Statement
($ in millions)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
------------- ------------ ------------- ------------
June 28, 2008 July 4, 2009 June 28, 2008 July 4, 2009
------------- ------------ ------------- ------------
Net sales $165.8 $129.6 $309.7 $249.3
--------- ------ ------ ------ ------
Gross
profit 52.3 39.5 98.7 79.0
--------- ------ ------ ------ ------
Operating
income 9.7 1.4 14.1 0.3
--------- ------ ------ ------ ------
Net income
(loss) $1.3 $(3.4) $(1.5) $(8.8)
--------- ------ ------ ------ ------
Summary Balance Sheet
($ in millions)
As of January 3, 2009 As of July 4, 2009
--------------------- -------------------
Assets
------
Current assets $187.0 $202.5
------------------------------ ------ ------
Property, plant and equipment,
net 47.4 44.7
------------------------------ ------ ------
Other non-current assets 182.8 175.2
------------------------------ ------ ------
Total Assets $417.2 422.4
------------------------------ ------ ------
Liabilities and Stockholder's
Equity
------------------------------
Current liabilities $46.9 $66.6
------------------------------ ------ ------
Long-term debt 391.5 390.6
------------------------------ ------ ------
Other long-term liabilities 20.4 14.9
------------------------------ ------ ------
Total Liabilities 458.8 472.1
------------------------------ ------ ------
Shareholder's Equity (41.6) (49.7)
------------------------------ ------ ------
Total Liabilities and
Stockholder's Equity $417.2 $422.4
------------------------------ ------ ------
Conference Call Details
Keystone will hold a conference call to discuss the financial results for the second quarter ended July 4, 2009 on Tuesday, August 18, 2009, at 11:00 a.m. EDT. To participate, please dial in to the conference call at (866) 509-8636, access code 25485587. The conference call topic is "Keystone Automotive Operations, Inc. Second Quarter Earnings Conference Call."
A telephone replay of the call will be available from 12:15 p.m. EDT on August 18, 2009 until 11:59 p.m. EDT on August 25, 2009. The replay of the call may be accessed by dialing (800) 842-1687, access code 25485587.
About Keystone Automotive Operations
Keystone Automotive Operations, Inc. (www.keystoneautomotive.com) is a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, providing product lines to approximately 17,000 wholesale customers. The Company operates four distribution centers and 22 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 320 trucks that provide multi-day per week delivery and returns covering 48 states and parts of 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.