Keystone Automotive Operations, Inc. Reports Third Quarter Fiscal 2009 Financial Results
EXETER, Pa., Nov. 16, 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 third quarter of its 2009 fiscal year, which ended October 3, 2009. Highlights include:
-- Net sales for the third quarter ended October 3, 2009 were $116.6
million, a decrease of $19.6 million, or 14.4%, compared to $136.2
million for the same period in the prior year. The decrease in sales
was driven by a combination of factors, including a decrease in
consumer spending on discretionary items due to the continued economic
recession, a year-over-year decline in truck and SUV sales, and the
decline in available credit in the marketplace.
-- Gross profit for the third quarter of fiscal 2009 was $35.5 million, a
decrease of $6.5 million, or 15.4%, versus the same period in the
prior year. Gross margin was 30.4%, down from 30.8% in the third
quarter of the prior fiscal year.
-- Loss from operations for the third quarter of fiscal 2009 was $0.4
million, a decrease of $1.4 million compared to income from operations
of $1.0 million 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 selling, general and administrative expenses.
The expense reductions resulted primarily from cost reduction programs
in the delivery, warehouse and selling areas, a decrease in bad debt
expense and a decrease in fuel costs.
-- Net loss for the third quarter of fiscal 2009 was $7.5 million,
compared to $5.5 million during the same period in the prior year.
The increase in the net loss is primarily attributable to the $6.5
million decrease in gross profit and a $1.7 million decrease in income
tax benefit, partially offset by a $5.2 million decrease in selling,
general and administrative expenses and a $1.0 million decrease in
interest expense.
-- As of October 3, 2009, the Company had a cash balance of $64.3 million
and an additional $32.6 million of borrowing capacity under its
revolving credit facility.
"We continue to operate in an environment where the automobile industry remains in a slump and the general economy struggles in recession, reflective of continued high unemployment rates, low consumer confidence and tight credit," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations, Inc. "However, we continue to invest in inventory, new cross-docks and information tools to maintain and enhance the level of service we deliver to customers and to better support our vendors. These are the right investments to make to further strengthen our business and position us for growth as the economy improves."
Summary Financials (Unaudited)
Summary Income Statement
($ in millions)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 27, October 3, September 27, October 3,
2008 2009 2008 2009
Net sales $136.2 $116.6 $446.0 $366.0
Gross profit 42.0 35.5 140.7 114.5
Income (loss) from
operations 1.0 (0.4) 15.1 (0.1)
Net income (loss) $(5.5) $(7.5) $(7.0) $(16.3)
Summary Balance Sheet
($ in millions)
As of January 3, As of October 3,
2009 2009
Assets
Current assets $187.0 $207.9
Property, plant and equipment, net 47.4 42.9
Other non-current assets 182.8 171.2
Total Assets $417.2 422.0
Liabilities and Stockholder's Equity
Current liabilities $46.9 $74.3
Long-term debt 391.5 390.1
Other long-term liabilities 20.4 14.2
Total Liabilities 458.8 478.6
Shareholder's Equity (41.6) (56.6)
Total Liabilities and Stockholder's Equity $417.2 $422.0
Conference Call Details
Keystone will hold a conference call to discuss the financial results for the third quarter ended October 3, 2009 on Wednesday, November 18, 2009, at 11:00 a.m. EST. To participate, please dial in to the conference call at (866) 509-8636, access code 42344574. The conference call topic is "Keystone Automotive Operations, Inc. Third Quarter Earnings Conference Call".
A telephone replay of the call will be available from 12:15 p.m. EST on November 18, 2009 until 11:59 p.m. EST on November 25, 2009. The replay of the call may be accessed by dialing (800) 642-1687, access code 42344574.
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 300 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.