Wednesday June 6
Keystone Automotive Industries, Inc. Cites Improving Aftermarket Parts Business Environment; Reports Fiscal Fourth Quarter and Year-End Results
POMONA, Calif. -- Keystone Automotive Industries, Inc. has reported positive operating results for the fourth quarter and fiscal year ended March 30, 2001, supported by increasing momentum from insurance companies to specify aftermarket replacement parts on collision repair estimates.
Charles J. Hogarty, president and chief executive officer, said, "Fiscal 2001 concluded on a very positive note. March, which is the last month of our fiscal year, generated the highest revenue for any month in the history of the Company. At the beginning of the year, we predicted that the economic value provided to insurance companies by virtue of there being quality aftermarket parts available to compete with OEM parts was too great for insurers to ignore. Our prediction proved to be accurate. As we entered the second half of fiscal 2001, a select group of insurers once again began to embrace aftermarket replacement parts, after a one year period of specifically excluding these parts. This trend gained momentum during the second half of the fiscal year and we expect this trend to continue in our current fiscal year."
Net sales for the fourth quarter of fiscal 2001 were $97.0 million compared with $92.4 million for the same period last year. The Company reported income of $0.15 per diluted share before recording special charges, aggregating $7.1 million, including a loss on impairment of long-lived assets in accordance with FAS 121. After recording the special charges, the Company posted a loss of $0.21 per diluted share. During the prior year period, the Company reported a net loss of $214,000, or $0.01 per diluted share.
Net sales for the 52 weeks decreased 5.6 percent to $351.8 million compared with $372.5 million for the 53-week period a year ago. The net loss for fiscal 2001 was $477,000, due to the special charges described above, or $0.03 per diluted share, compared with net income of $9.8 million, or $0.62 per diluted share, last year.
Mr. Hogarty stated, "Same store sales increased 4.7 percent for the fourth quarter of fiscal 2001 compared to the prior year and were up 6.5 percent for the month of March compared to the prior year. Same store sales continued their positive trend during April and May 2001."
He highlighted the introduction in fiscal year 2001 of Keystone's Platinum Plus products and the ongoing success of the line. "These products are the industry's first and only nationally recognized premium brand of independently produced collision replacement parts. Platinum Plus products have been a resounding success and are backed by our limited lifetime warranty," he said.
Hogarty emphasized management's confidence in the long-term viability of the aftermarket parts industry and Keystone's strategic position. "We believe that the availability of aftermarket collision parts creates significant benefits to consumers by providing competition in the marketplace, which has contributed to lower automobile insurance premiums. The availability of high quality aftermarket collision parts allows consumers to restore their vehicles to their pre-loss condition in a cost effective manner," Hogarty said.
He noted that management continues to be encouraged by improving sales and strong cash flows from operations and is focused on inventory reductions and cost controls. The Company intends to use excess cash flows to pay down its credit facility.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 113 warehouses, of which 24 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, auto glass and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle.
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