Keystone Automotive Operations, Inc. Reports Fourth Quarter and Fiscal Year 2009 Financial Results
EXETER, Pa., March 22 -- Keystone Automotive Operations, Inc. (the "Company"), a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced financial results for the fourth quarter and fiscal year 2009 which ended January 2, 2010.
Fiscal Year Highlights:
-- For the fiscal year ended January 2, 2010, net sales were $468.5
million, a decrease of $97.8 million, or 17.3 %, compared to $566.3
million in the prior fiscal year. The decrease in net sales was
driven by a combination of factors, including lower consumer spending
on discretionary items, general economic recession, increased
unemployment, a year-over-year reduction in truck and SUV sales, and
the continued decline in available credit in the marketplace.
-- Gross profit for fiscal year 2009 was $147.1 million, a decrease of
$29.4 million, or 16.7%, from the prior fiscal year. The decrease in
gross profit was due to the reduction in net sales, partially offset
by slightly higher selling margins which increased to 31.4%, up from
31.2% in fiscal year 2008.
-- Operating loss for fiscal year 2009 was $3.2 million, a decrease in
loss of $207.4 million from a $210.6 million loss from operations in
the prior fiscal year. The decrease in loss is primarily attributable
to the absence in fiscal 2009 of the $218.9 million non-cash charge
for goodwill impairment incurred in fiscal year 2008 and by a decrease
in selling, general and administrative expenses, partially offset by
the decline in gross profit.
-- The Company recorded a net loss of $21.2 million for the fiscal year
ended January 2, 2010, versus a net loss of $206.0 million in the
prior fiscal year. The decrease in the net loss was due primarily to
the $207.4 million decrease in operating loss and from a $5.1 million
decrease in interest expense, partially offset by a $27.8 million
decrease in income tax benefits.
-- For the 2009 fiscal year, net cash provided by operating activities
increased to $5.1 million compared to $3.4 million in the prior fiscal
year. The increase in cash provided by operating activities was
driven by a decrease in the net operating assets employed in the
business, which was partially offset by an increase in net loss,
adjusted for non-cash charges.
-- Working capital decreased by $12.7 million or 9.1% to $127.4 million
as of the end of fiscal year 2009 from $140.1 million as of the end of
the prior fiscal year.
Fourth Quarter 2009 Highlights:
-- Net sales for the fourth quarter ended January 2, 2010, were $102.6
million, a decrease of $17.7 million, or 14.7 %, compared to $120.3
million for the fourth quarter of the prior fiscal year. The decrease
is attributable to the same factors previously mentioned.
-- Gross profit for the fourth quarter 2009 was $32.5 million versus
$35.8 million for the same period in the prior year, a decrease of
$3.3 million, or 9.1%. Gross margin, as a percentage of sales,
increased to 31.7% for the fourth quarter from 29.8% in the fourth
quarter of the prior fiscal year.
-- Operating loss for the fourth quarter ended January 2, 2010 was $3.2
million, compared to a loss of $225.7 million for the same period a
year ago, primarily due to the fiscal 2008 non-cash goodwill
impairment charge previously mentioned and a decrease in selling,
general and administrative expense, partially offset by the decrease
in gross profit.
-- As of January 2, 2010, the Company had a cash balance of $26.4 million
and an additional $28.5 million of borrowing capacity under its
revolving credit facility.
"During the fourth quarter, we continued to leverage our geographic footprint to serve customers efficiently, and maintained our focus on cost management across our operations," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations, Inc. "While we experienced a sales decline in what remains a challenging environment for discretionary spending, we were able to maintain our margins, and our substantial cash and liquidity position allowed us to continue to invest prudently in the business for the long-term. During 2009, we opened three new cross-docks in North America to better serve our customers in the Pacific Northwest and Canada, and now offer delivery in our vehicles to all 48 contiguous states and six provinces in Canada. We believe that as the industry continues to experience a consolidation, our leading market position enhances our ability to sell to existing customers, attract new customers, and gain market share."
Summary Financials
Summary Income Statement
($ in millions)
Three Months Three Months Fiscal Year Fiscal Year
Ended Ended Ended Ended
January 3, 2009 January 2, 2010 January 3, 2009 January 2, 2010
(Unaudited) (Unaudited)
Net sales $120.3 $102.6 $566.3 $468.5
Gross profit 35.8 32.5 176.5 147.1
Operating
income (loss) (225.7) (3.2) (210.6) (3.2)
Net income
(loss) $(199.0) $(4.9) $(206.0) $(21.2)
Summary Balance Sheet
($ in millions)
As of January 3, 2009 As of January 2, 2010
Assets
Current assets $187.0 $167.0
Property, plant and
equipment, net 47.4 42.6
Other non-current assets 182.8 168.4
Total Assets $417.2 $378.0
Liabilities and Stockholder's
Equity
Current liabilities $46.9 $39.7
Long-term debt 391.5 389.6
Other long-term liabilities 20.4 9.8
Total Liabilities 458.8 439.1
Stockholder's Equity (41.6) (61.1)
Total Liabilities and
Stockholder's Equity $417.2 $378.0
Conference Call Details
Keystone will hold a live conference call to discuss financial results for the fourth quarter and fiscal year ended January 2, 2010, on March 23, 2010, at 11:00 a.m. EDT. To participate, please dial in to the conference call at (877) 317-9228, access code 64749802. The conference call topic is Keystone Automotive Operations, Inc. Fiscal Year 2009 Earnings Conference Call.
A telephone replay of the call will be available from 12:15 p.m. EDT on March 23, 2010 until 11:59 p.m. EDT on March 30, 2010. The replay of the call may be accessed by dialing (800) 642-1687, access code 64749802.
About Keystone Automotive Operations, Inc.
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 15,000 customers. The Company operates four distribution centers and 23 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 six provinces 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.