Keystone Automotive Industries Reports Record Sales and Earnings for Year; Announces Election of Charles Hogarty as Chief Executive Officer
28 May 1997
Keystone Automotive Industries Reports Record Sales and Earnings for Year; Announces Election of Charles Hogarty as Chief Executive Officer
POMONA, Calif., May 28 -- Keystone Automotive Industries,
Inc. today reported record net income of $9,408,000, or $0.72
per share, on record revenues of $194,321,000, for the fiscal year ended March
28, 1997, up 57 percent from net income of $4,336,000, or $0.53 per share, and
24 percent from $157,021,000 in revenues reported for the previous year.
The results for the fiscal year ended March 28, 1997 include the
operations of North Star Plating, which was merged with Keystone in a
transaction accounted for as a pooling of interests. North Star is a leading
regional distributor of aftermarket collision repair parts and one of the
nation's largest recyclers and manufacturers of aftermarket chrome plated and
plastic bumpers. North Star has a customer base of more than 7,000 collision
repair shops located in seven Midwest and mid-Atlantic states from 20 service
centers.
Commenting on the year end results, Charles Hogarty, President and Chief
Executive Officer, said "We are extremely pleased to report these record
revenues and earnings for our first year of operation as a public company.
We are also gratified that we achieved these strong results after incurring
$905,000 in non-recurring merger costs relating to the North Star acquisition.
Virtually every aspect of our business performed exceptionally well."
Mr. Hogarty pointed out that "When we had our initial public offering a
year ago we said our strategy was to grow Keystone on three fronts: same store
sales, increased market penetration and acquisitions. In the past year, same
store sales growth has been in excess of 13 percent, and we completed five
acquisitions: North Star Plating, Stockton Plating, which expanded our market
penetration in Northern California; Augusta Bumper & Glass; two Body Max
facilities in Atlanta, Georgia and Chattanooga, Tennessee; and AfterMarket
Parts & Supply, with five facilities in Alabama.
Mr. Hogarty said, "Our strategy clearly has been successful and we believe
that Keystone is well-positioned to capitalize on the consolidation occurring
in the automotive aftermarket parts distribution business and that Keystone
will continue to be a beneficiary of the growing acceptance of aftermarket
collision repair parts."
Keystone also announced that Virgil K. Benton II, 40, has resigned his
positions as Chairman, Chief Executive Officer and a Director of Keystone,
effective May 23, 1997, to pursue other opportunities.
Charles Hogarty, 56, was elected Chief Executive Officer. Mr. Hogarty has
served as President, Chief Operating Officer and a Director of Keystone since
1987. He joined Keystone in 1960 and has held a range of positions including
salesman, sales manager, general manager and regional manager. He has also
served as a Director of the Automotive Body Parts Association from 1984 to
1993, President in 1989 and Chairman of that organization in 1990.
Keystone also announced that Ronald G. Brown, 59, the former President of
North Star Plating, has been named Chairman of the Board of the company.
Mr. Brown served as President of North Star from its founding in 1968, until
the merger with Keystone in March 1997. He has also served as a member of the
Board of Directors and Vice President of the Bumper Recycling Association of
North America.
Kim D. Wood, 40, who had been Vice President of North Star Plating since
1982, succeeded Mr. Brown as President of North Star and has also been named
Vice President of Keystone. Mr. Wood is a member of the Board of Directors of
the Automotive Body Parts Association and served as Chairman of that board
from 1993 through 1995. He is also a member of the Board of Directors of the
Certified Auto Body Parts Association.
Mr. Hogarty, said "We all want to thank Virgil Benton for his more than
two decades of service to Keystone and wish him well in all of his future
endeavors.
"I also want to congratulate Ron Brown and Kim Wood on their new positions
and welcome them officially to the Keystone Automotive team. We all look
forward to their significant contributions now, and in the future."
Keystone Automotive Industries, Inc. distributes its products in the
United States primarily to collision repair shops through its 67 service
centers, of which 11 serve as regional hubs. Its product lines consist of
automotive body parts, bumpers, autoglass and remanufactured alloy wheels, as
well as paint and other materials used in repairing a damaged vehicle.
These products comprise more than 13,000 stock keeping units that are sold to
more than 17,000 repair shops throughout the nation.
Keystone Automotive Industries, Inc.
Statements Of Income
(In Thousands, except per share and share amounts)
Year Ended
March 31
1997 1996
Sales $194,321 $157,021
Cost of goods sold 115,052 95,131
Gross profit 79,269 61,890
Operating expenses:
Selling and distribution
expenses 53,503 43,800
General and administrative 12,340 9,428
Merger Costs 905 --
Operating income 12,521 8,662
Interest expenses 1,297 1,490
Income before taxes 11,224 7,172
Income taxes 4,435 2,836
Net Income $6,789 $4,336
Net income per share $0.72 $0.53
Weighted average shares
outstanding 9,408,000 8,250,000
SOURCE Keystone Automotive Industries, Inc.
