Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

Keystone Automotive Industries Reports Record Fiscal Q3 Results; Net Income Up 29%

Net income for the third quarter climbed 29.0 percent to $3.6 million, or $0.24 per diluted share, from $2.8 million, or $0.19 per diluted share, a year ago. Operating income for the same period climbed 27.6 percent to $5.7 million compared with $4.4 million a year earlier. Net sales for the third quarter increased 15.3 percent to $108.5 million from $94.1 million last year.

For the nine months, net sales rose 15.3 percent to $316.4 million from $274.4 million a year ago. Net income for the same period was $9.8 million, or $0.65 per diluted share, compared with a net loss of $26.2 million, or $1.77 per diluted share, a year earlier, which included the cumulative effect of a change in accounting principle, made retroactive to the first quarter of fiscal 2002, as a result of the early adoption of Statement of Financial Accounting Standards (SFAS No.142) ``Goodwill and Other Intangible Assets.'' Operating income for the nine-month period increased more than four-fold to $15.4 million from $3.5 million a year earlier.

"Operating results for the third fiscal quarter represent the eighth year-over-year increase in quarterly operating performance for Keystone," said Charles J. Hogarty, president and chief executive officer.

He cited several factors that continue to have a positive impact on Keystone's financial performance, including more frequent specification of aftermarket parts by certain insurance companies and expanding market acceptance of Keystone's Platinum Plus private label products.

Hogarty noted that same store sales for the third quarter and nine-month period increased approximately nine percent compared with a year ago. Gross margins for the third quarter were 43.8 percent compared with 43.2 percent for the same period in 2001, as a result of better product mix and pricing. The increase in inventory levels, compared with fiscal 2002 year end, reflects an inventory build-up to support the company's business given the pending West Coast port closure last year, which was subsequently settled, and the anticipated increased sales activity, along with inventory from acquisitions.

He highlighted Keystone's continuing strategy to strengthen its distribution capabilities, citing several acquisitions made in the last fiscal quarter of 2002 and the opening of four Greenfield operations. Subsequent to the end of the third fiscal quarter of 2003, the company completed an acquisition of Advance Bumper and Body Parts of Springfield, Missouri.

It is Keystone's understanding that the major parties to a pending class action lawsuit against Erie Insurance Company for specifying aftermarket collision replacement parts, in which Keystone is an additional defendant, have reached an agreement in principle to settle the case. The settlement as proposed would result in the dismissal of all claims against Keystone without cost to the company.

In other news, Kim D. Wood, a vice president of Keystone, has left the company to pursue other interests.

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, located in 37 states, Vancouver, Canada and Tijuana, Mexico.

©2003 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?