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FinishMaster Announces Third Quarter Results And Texas Acquisition

14 November 2000

FinishMaster Announces Third Quarter Results And Texas Acquisition

    INDIANAPOLIS--Nov. 14, 2000--FinishMaster, Inc. , the leading national independent distributor of automotive paints and related accessories, reported today that net income for the three months ended September 30, 2000 was $957,000 on net sales of $85,600,000, compared to net income of $1,051,000 on net sales of $82,460,000 in the prior year. Earnings per share were $0.13 compared to $0.14 in the prior year period.
    For the nine months ended September 30, 2000, net income was $2,922,000 on net sales of $257,613,000, compared to net income of $3,529,000 on net sales of $245,778,000 in the prior year. Earnings per share were $0.39 compared to $0.47 in the prior year period.
    The Company also announced the acquisition of Odessa Auto Paint and Supply, Inc. in Odessa, Texas. This acquisition strengthens the Company's presence in the West Texas market and provides fixed cost consolidation opportunities.
    "Both net sales and operating income continue to show steady growth," said Wes Dearbaugh, President and COO. "Higher interest expense which offsets the 5.3% increase in operating income resulted in lower net income and earnings per share for the quarter."
    "I am also pleased to announce the implementation of a new point-of-sale computer system at all of our 158 distribution locations throughout the United States, and the implementation of a new general ledger system," stated Mr. Dearbaugh. "These accomplishments are a significant milestone in the consolidation of FinishMaster into one organization and further improves our ability to better serve our customers."

                  Selected Historical Financial Data
                (000's omitted, except per share data)

                             Three Months Ended     Nine Months Ended
                                September 30,         September 30,
                                -------------         -------------
                               2000       1999       2000       1999
                               ----       ----       ----       ----

Net sales                   $ 85,600   $ 82,460   $257,613   $245,778
Gross margin                  31,391     29,878     92,683     88,275
Total expenses                26,411     25,150     77,603     73,204
Income from operations         4,980      4,728     15,080     15,071
Interest expense               2,968      2,652      8,906      8,060
Income tax expense             1,055      1,025      3,252      3,482
Net income                  $    957   $  1,051   $  2,922   $  3,529
Earnings per share-diluted  $   0.13   $   0.14   $   0.39   $   0.47
Wtd. avg. shares
 outstanding-diluted           7,545      7,548      7,554      7,541
EBITDA                      $  7,705   $  7,332   $ 22,831   $ 23,072