FinishMaster Announces 1998 Results
16 March 1999
FinishMaster Announces Strong Results For 1998; Net Income Increases 203% Over Prior Year; Earnings Per Share Increases 164% Over Prior Year
INDIANAPOLIS--March 16, 1999--FinishMaster, Inc. , a leading national distributor of automotive paints and related accessories, reported today that net income for the year ended December 31, 1998 increased 203% to $1,988,000 on revenues of $309,946,000, compared to net income of $656,000 on revenues of $130,175,000 in the prior year. Earnings per share increased 164% to $0.29 from $0.11. The increase in revenues between years is due primarily to the acquisitions of Thompson PBE, Inc. and LDI AutoPaints, Inc.For the fourth quarter ended December 31, 1998, net income was $682,000 on revenues of $76,826,000, compared to a net loss of ($1,467,000) on revenues of $39,206,000 in the prior year. Earnings per share increased to $0.09 from a loss of ($0.24).
"1998 was a defining year for FinishMaster," said Thomas U. Young, President and Chief Operating Officer. "We more than doubled our revenues and launched several strategic initiatives designed to build the foundation for long-term growth for the Company. Those initiatives included finalizing the integration of the former Thompson and LDI AutoPaints operations, continuing aggressive cost management efforts, enhancing our senior management team, designing an integrated information technology platform, and solidifying relationships with customers and throughout the supply chain."
Selected Financial Data
(000's omitted, except per share data)
For the Year Ended Three Months Ended
December 31, December 31,
------------ ------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues $309,946 $130,175 $76,826 $39,206
Gross margin 109,678 47,107 27,400 13,749
Income (loss) from operations 15,895 3,832 3,974 (781)
Net income (loss) $ 1,988 $ 656 $ 682 ($1,467)
Earnings (loss) per
share-diluted $ 0.29 $ 0.11 $ 0.09 ($0.24)
Wtd. avg. shares outstanding 6,780 5,994 7,536 5,994
FinishMaster's historical results do not include the results of Thompson PBE prior to its November 1997 acquisition and do not include the results of LDI AutoPaints prior to June 30, 1998. Assuming the acquisitions of Thompson PBE and LDI AutoPaints occurred as of January 1, 1997, the Company would have reported pro forma net income of $2,459,000, or $0.33 per share, on revenues of $321,710,000 for the year ended December 31, 1998 compared with a net loss of ($7,585,000), or ($1.01) per share, on revenues of $337,818,000 in the prior year.
Selected ProForma Financial Data
(000's omitted, except per share data)
For the Year Ended Three Months Ended
December 31, December 31,
------------ ------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues $321,710 $337,818 $76,826 $76,662
Gross margin 114,199 117,495 27,400 26,039
Income (loss) from operations 16,696 2,540 3,974 (839)
Net income (loss) $ 2,459 ($7,585) $ 682 ($2,731)
Earnings (loss) per
share-diluted $ 0.33 ($1.01) $ 0.09 ($0.36)
Wtd. avg. shares outstanding 7,536 7,536 7,536 7,536
Andre B. Lacy, Chairman and CEO, said, "Our vision is for FinishMaster to be the leader in creating value in the automotive and industrial paint refinishing industry. The acquisitions made during the last two years and the 1998 investment in infrastructure will ensure value creation for the long haul. I am very pleased with our 1998 results and I remain optimistic about the future performance of FinishMaster."
This release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ from those anticipated in such forward-looking statements as a result of numerous factors, including the Company's ability to successfully integrate its acquired operations. Please refer to the Company's cautionary statements contained in FinishMaster's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 1998.
FinishMaster is the leading national distributor of automotive paints, coatings, and related accessories to the automotive collision repair industry. The Company is headquartered in Indianapolis, Indiana and operates three distribution centers and 149 sales outlets in 24 of the 35 largest metropolitan areas in the country.
For more information on the Company via the Internet, visit Corporate News on the Net page at http://www.businesswire.com/cnn/fmst.htm or via fax, through the NewsOnDemand service, call 800-411-3989.