FinishMaster Announces Financial Results for 1999 and a South Carolina Acquisition
8 March 2000
FinishMaster Announces Financial Results for 1999 and a South Carolina Acquisition
INDIANAPOLIS--March 8, 2000--FinishMaster, Inc. , the leading national distributor of automotive paints and related accessories, reported today that net income for the year ended December 31, 1999 increased 87% to $3,711,000 on net sales of $324,490,000, compared to net income of $1,988,000 on net sales of $309,946,000 in the prior year. Earnings per share increased 69% to $0.49 from $0.29. The Company also announced the acquisition of White AutoPaint, Inc., effective March 3, 2000. This was the Company's second acquisition in South Carolina and its third this year.For the fourth quarter ended December 31, 1999, net income was $182,000 on net sales of $78,712,000, compared to net income of $682,000 on net sales of $76,826,000 in the prior year. Earnings per share were $0.02, compared to $0.09 in the prior year.
1999 was a very successful year for us with significant earnings growth, solid working capital management, reduced debt levels and numerous strategic acquisitions," said Wes N. Dearbaugh, President and COO. "The White AutoPaint acquisition is a continuation of our strategy to make `add-on' acquisitions. White compliments our previous purchase of Advanced Color & Supply, Inc. and strengthens our presence in the South Carolina market. White provides us with an increased customer base and an experienced staff."
Andre B. Lacy, Chairman and Chief Executive Officer added, "The progress in establishing `the FinishMaster Way' as our Company's culture in presenting consistency and value to our customers made good progress in 1999. I think this is important to thinking nationally and acting locally."
Selected Historical Financial Data
(000's omitted, except per share data)
Twelve Months Ended Three Months Ended
December 31, December 31,
--------------------- --------------------
1999 1998 1999 1998
-------- -------- -------- --------
Net sales $324,490 $309,946 $ 78,712 $ 76,826
Gross margin 117,002 109,678 28,727 27,400
Total expenses 98,257 93,783 25,053 23,426
Income from operations 18,745 15,895 3,674 3,974
Interest expense 10,802 11,475 2,742 2,841
Income tax expense 4,232 2,432 750 451
Net income $ 3,711 $ 1,988 $ 182 $ 682
Earnings per
share-diluted $ 0.49 $ 0.29 $ 0.02 $ 0.09
Wtd. avg. shares
outstanding-diluted 7,545 6,780 7,554 7,536
EBITDA $ 29,418 $ 26,037 $6,345 $6,894
FinishMaster's historical results for the year ended December 31, 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 year ended December 31, 1998, pro forma net income of $2,459,000 or $0.33 per share, on net sales of $321,710,000.
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 161 branches 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.