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 Q2 Sales

The results during the first half of fiscal 2004 include four acquisitions and the establishment of two greenfield operations.

Net sales for the quarter increased 15.4 percent to $116.7 million from $101.1 million a year ago. Net income for the same period was $2.7 million, or $0.18 per diluted share, compared with $2.7 million, or $0.18 per diluted share, last year. Net income for the quarter included consolidation and other charges of $425,000 related to the company's acquisitions and a $200,000 insurance recovery settlement for a fire loss claim. Excluding the charge and the recovery, net income for the quarter was $2.8 million, or $0.19 per diluted share.

Net sales for the six-month period increased 13 percent to $235 million compared with $208 million a year ago. Net income for the same period was $6.9 million, or $0.45 per diluted share, compared with $6.2 million, or $0.41 per diluted share, a year earlier. Excluding the charge and the recovery, net income for the six-month period was $7.0 million, or $0.46 per diluted share.

Charles J. Hogarty, president and chief executive officer, said, "Results for the second quarter and first half of fiscal 2004 show strength across all of the company's main product groups, reflecting ongoing growth within the aftermarket collision repair business, increased insurance company participation and market acceptance of Keystone's Platinum Plus private label aftermarket parts product offerings."

Hogarty noted that same store sales for the second quarter and the six-month period increased 11 percent and 10 percent, respectively, compared with a year ago, after deducting same store sales increases from acquisitions and greenfields of four percent for the quarter and three percent for the six months.

Gross margins for the second quarter and the six months were 43.1 percent and 43.4, respectively. Hogarty noted that the gross margin for the second quarter was impacted by increased nickel prices, which currently stand at a ten-year high, as well as higher freight expenses for overseas shipments The company utilizes nickel for its chrome bumper plating business. Hogarty added that gross margins were also impacted by lower production for its chrome and recycled plastic bumpers business, which affected the company's ability to absorb overhead expenses.

"We experienced some significant rework and higher related costs on certain types of bumpers during the quarter, due to the fact that certain new model vehicles require more labor and material due to a combination of textured and painted design features of the bumpers. These issues have been addressed by adapting new recycling processes and raising prices," Hogarty said.

Since its fiscal year end in March, the company has converted an additional 34 distribution facilities to its new management information system, bringing to 45 the total number of conversions to date.

©2003 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?