FinishMaster Announces Strong Second Quarter Results
5 August 1999
FinishMaster Announces Strong Second Quarter Results; Net Income Increases 86% Over Prior Year; Earnings Per Share Increases 42% Over Prior Year
INDIANAPOLIS--Aug. 5, 1999--FinishMaster, Inc. , the leading national distributor of automotive paints and related accessories, reported today that net income for the quarter ended June 30, 1999 increased 86% to $1,302,000 on net sales of $83,212,000, compared to net income of $699,000 on net sales of $76,758,000 in the prior year. Earnings per share increased 42% to $0.17 from $0.12.For the six months ended June 30, 1999, net income increased 102% to $2,478,000 on net sales of $163,318,000, compared to net income of $1,227,000 on net sales of $152,782,000 in the prior year. Earnings per share increased 57% to $0.33 from $0.21. The increase in net sales between years for both the three and six month periods is due primarily to the June 1998 acquisition of LDI AutoPaints, Inc.
"Our second quarter performance is another positive indication of FinishMaster's progress," said Thomas U. Young, Vice Chairman. "We continue to increase earnings while furthering our integration efforts which are designed to increase the value and service delivered to our customers. Current integration efforts are focused on implementing a new point-of-sale information technology system to all our store locations. Further, we launched several initiatives in the second quarter of 1999 including a new web site that will serve as a platform for establishing e-commerce links to our customer base in the year 2000. These initiatives should position FinishMaster to continue to generate earnings growth well after integration efficiencies have been fully realized."
Selected Historical Financial Data
(000's omitted, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
-------- --------
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $163,318 $152,782 $ 83,212 $ 76,758
Gross margin 58,397 53,972 29,777 27,027
Income from operations 10,343 8,036 5,270 4,156
Net income $ 2,478 $ 1,227 $ 1,302 $ 699
Earnings per share-diluted $ 0.33 $ 0.21 $ 0.17 $ 0.12
Wtd. avg. shares
outstanding-diluted 7,539 6,003 7,536 6,011
EBITDA $ 15,740 $ 12,551 $ 8,038 $ 6,258
FinishMaster's 1998 historical results do not include the results of LDI AutoPaints prior to June 30, 1998. Assuming the acquisition of LDI AutoPaints occurred as of January 1, 1998, the Company would have reported for the three months ended June 30, 1998, pro forma net income of $846,000 or $0.11 per share, on net sales of $82,803,000, and for the six months ended June 30, 1998, pro forma net income of $1,698,000 or $0.23 per share, on net sales of $164,546,000. The increase in pro forma net sales for the quarter is due to an increase in same store sales of 1.6%. Partially offsetting this increase is the effect on net sales of store closures and consolidations in 1998.
Selected Pro Forma Financial Data
(000's omitted, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
-------- --------
1999 1998 1999 1998
---- ---- ---- ----
Net sales $163,318 $164,546 $83,212 $82,803
Gross margin 58,397 58,493 29,777 29,183
Income from operations 10,343 8,832 5,270 4,416
Net income $ 2,478 $ 1,698 $ 1,302 $ 846
Earnings per share-diluted $ 0.33 $ 0.23 $ 0.17 $ 0.11
Wtd. avg. shares
outstanding-diluted 7,539 7,546 7,536 7,553
EBITDA $ 15,740 $ 14,098 $ 8,038 $ 6,895
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, 1999.
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 major distribution centers and 153 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.