Thursday February 14
Keystone Automotive Industries Reports Fiscal Third Quarter 2002 Results; Same Store Sales Up 9.5 Percent
POMONA, Calif. -- Keystone Automotive Industries, Inc. has reported results for its third quarter ended December 28, 2001, reflecting continued momentum in its insurance related aftermarket collision parts business.
Net income for the third quarter rose almost four-fold to $2.8 million from $716,000 a year ago. Operating income for the same period climbed sharply to $4.4 million compared with $1.1 million a year earlier. Net sales for the third quarter increased 10.2 percent to $94.1 million versus $85.5 million last year.
For the nine months, net sales increased 7.7 percent to $274.4 million from $254.9 million a year ago. Net income was unchanged on a comparative basis as a result of a non-recurring charge of $6.8 million related to the write down of its investment in an enterprise-wide software conversion. Operating income, before the non-recurring charge, for the same period was $10.4 million, compared with $3.9 million a year earlier.
Charles J. Hogarty, president and chief executive officer, said, "Sales for the third quarter reflect continued momentum in our aftermarket collision parts business, including increased insurance company participation and growing market acceptance of Keystone's Platinum Plus private label products."
Same-store sales for the third quarter and nine-month period increased approximately 9.5 percent and 7.0 percent, respectively, compared with a year ago. Gross margins for the third quarter improved to approximately 43 percent, as a result of better product mix and improved pricing.
Hogarty stressed Keystone's ongoing strategy to strengthen its distribution capabilities, citing its recent purchases of the aftermarket collision parts distribution businesses of P-G Products Inc., based in Cincinnati, Ohio; Indiana Distributors Incorporated, based in Elkhart, Indiana; and the wheel cover distribution business of I.W.C. International, Inc., based in Tampa, Florida.
The company recently opened a distribution facility in Oklahoma City and anticipates it will open a new distribution facility in Portland, Oregon during the fourth quarter of fiscal 2002. A greenfield operation in Raleigh, North Carolina is expected to open later in the year.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the nation.
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