Keystone Automotive Reports Higher First Quarter Results
5 August 1998
Keystone Automotive Reports Higher First Quarter Results
POMONA, Calif.--Aug. 5, 1998--Keystone Automotive Industries, Inc. today reported first quarter net income for the period ended June 26, 1998 of $3,860,000, or $0.26 per share, on net sales of $69,872,000, on 14,917,000 average weighted shares outstanding, fully diluted, up from pro forma net income for the comparable period a year earlier of $2,721,000, or $0.23 per share, on net sales of $62,745,000. Year ago net income is on a pro forma basis, giving effect to an income tax adjustment to reflect taxation of the income of Inteuro and Car Body, acquired in January 1998, as "C" corporations, rather than "S" corporations, at an estimated statutory rate of approximately 39 percent.The company also announced that on July 31, 1998 it had completed the acquisition of the assets of two companies with aftermarket collision parts operations in Greenville and Columbia, South Carolina. These companies have historical annual revenues of approximately $5.0 million and will be operated as a part of Northstar Plating Company, a wholly owned subsidiary of Keystone. Terms of the transaction were not disclosed.
Charles Hogarty, President and Chief Executive Officer, said, "We are pleased with the performance of the company and the results for the current quarter. We continue to experience year over year sales growth in spite of unusually mild weather, and have shown significant improvement at the gross margin and net income levels.
We announced yesterday that we entered into an agreement to divest approximately 80 percent of the aftermarket automotive hard parts business of Keystone's recently acquired wholly owned subsidiary, Republic Automotive Parts, acquired on June 27, 1998. We believe that this divestiture is an important strategic move for Keystone, as it will allow us to focus on our core collision parts business and generate significant cash to fund future acquisitions and expansion plans."
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 104 service centers, of which 21 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 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the nation.
Keystone Automotive Industries, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
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June 26, 1998 June 27, 1997
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Net sales $ 69,872 $ 62,745
Cost of sales 39,534 36,241
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Gross profit 30,338 26,504
Operating expenses:
Selling and distribution
expenses 19,548 16,640
General and administrative 4,786 4,468
Severance costs -- 705
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Operating income 6,008 4,691
Other Income 440 76
Interest expense (11) (307)
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Income before income taxes 6,433 4,460
Income tax provision 2,573 1,207(1)
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Net Income $ 3,860 $ 3,253
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Earnings Per Share
Basic $ 0.26 $ 0.28
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Diluted $ 0.26 $ 0.27
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Weighted average shares outstanding
Basic 14,655,000 11,779,000
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Diluted 14,917,000 11,880,000
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(1) See pro forma information
(unaudited pro forma information)
Net income, as previously reported $ 3.253
Pro forma tax adjustment $ (532)
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Pro forma net income $ 2.721
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Pro forma net income per share - basic $ 0.23
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Pro forma net income per share - diluted $ 0.23
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Pro forma net income gives effect to an income tax adjustment to
reflect taxation of the income of Inteuro and Car Body, acquired in
January 1998, as "C" corporations, rather than "S" corporations, at an
estimated statutory rate of approximately 39%.