FinishMaster Announces Third Quarter Results
9 November 1999
FinishMaster Announces Third Quarter Results
INDIANAPOLIS--Nov. 9, 1999--FinishMaster, Inc. , the leading national distributor of automotive paints and related accessories, reported today that net income for the quarter ended September 30, 1999 increased 1230% to $1,051,000 on net sales of $82,460,000, compared to net income of $79,000 on net sales of $80,338,000 in the prior year. Earnings per share increased 1300% to $0.14 from $0.01.For the nine months ended September 30, 1999, net income increased 170% to $3,529,000 on net sales of $245,778,000, compared to net income of $1,306,000 on net sales of $233,120,000 in the prior year. Earnings per share increased 135% to $0.47 from $0.20.
"We are pleased to announce strong third quarter financial results of increased sales and profits," said Wes N. Dearbaugh, President and COO. "Our performance is the result of targeted sales efforts, operational improvements and planned growth through acquisitions. We continue to integrate the six acquisitions completed this calendar year along with the two major acquisitions in the prior year. We look forward to continued improvements in servicing our customers, resulting in future growth."
Selected Historical Financial Data
(000's omitted, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
Net sales $ 82,460 $ 80,338 $245,778 $233,120
Gross margin 29,878 28,306 88,275 82,278
Expenses:
Operating 12,285 11,899 35,524 35,142
SG&A 10,260 9,815 29,678 27,993
Depreciation 828 1,054 2,705 2,554
Amortization 1,777 1,653 5,297 4,668
Total expenses 25,150 24,421 73,204 70,357
Income from operations 4,728 3,885 15,071 11,921
Interest expense 2,652 2,934 8,060 8,634
Income tax expense 1,025 872 3,482 1,981
Net income $ 1,051 $ 79 $ 3,529 $ 1,306
Earnings per share-diluted $ 0.14 $ 0.01 $ 0.47 $ 0.20
Wtd. avg. shares
outstanding-diluted 7,543 7,535 7,541 6,518
EBITDA $ 7,333 $ 6,592 $ 23,073 $ 19,143
FinishMaster's historical results for the first nine months of 1998 only include the results of LDI AutoPaints, Inc. after June 30, 1998, the effective date of that acquisition. Assuming the acquisition of LDI AutoPaints, Inc. occurred as of January 1, 1998, FinishMaster would have reported for the nine months ended September 30, 1998, pro forma net income of $1,777,000 or $0.24 per share, on net sales of $244,884,000.
Selected Pro Forma Financial Data
(000's omitted, except per share data)
Nine Months Ended
September 30,
------------
1999 1998
---- ----
Net sales $245,778 $244,884
Gross margin 88,275 86,799
Expenses:
Operating 35,524 36,495
SG&A 29,678 29,608
Depreciation 2,705 2,786
Amortization 5,297 5,187
Total expenses 73,204 74,076
Income from operations 15,071 12,723
Interest expense 8,060 8,670
Income tax expense 3,482 2,276
Net income $ 3,529 $ 1,777
Earnings per share-diluted $ 0.47 $ 0.24
Wtd. avg. shares outstanding-diluted 7,541 7,535
EBITDA $ 23,073 $ 20,696
This release contains forward-looking statements that are subject to various risks and uncertainties. FinishMaster's actual results could differ from those anticipated in such forward-looking statements as a result of numerous factors, including FinishMaster's ability to successfully integrate acquired operations. Please refer to the 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. FinishMaster is headquartered in Indianapolis, Indiana and operates three major distribution centers and 154 sales outlets in 24 of the 35 largest metropolitan areas in the country.
For more information on FinishMaster via the Internet, visit FinishMaster's website at http://www.finishmaster.com/ or 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.