CONTACTS: Steven D. Stern / Gary S. Maier
FOR IMMEDIATE RELEASE
KEYSTONE AUTOMOTIVE INDUSTRIES
REPORTS FIRST QUARTER RESULTS
POMONA, CA – August 10, 2000 – Keystone Automotive Industries, Inc.
(Nasdaq:KEYS) today reported net income for the first fiscal quarter (a 13-week period)
ended June 30, 2000 of $1.5 million, or $0.10 per diluted share, compared with $5.5
million, or $0.33 per diluted share, in the 14 week period a year ago. Net sales for the
first quarter were $86.6 million, compared with $101.4 million a year ago.
Charles J. Hogarty, president and chief executive officer, said, “The quarter to
quarter comparison is a difficult one and not necessarily meaningful, as last year’s quarter
had 14 weeks compared with 13 weeks this year. In addition, the State Farm decision
continues to have a negative impact on the aftermarket collision parts business.
“While the last nine months have been difficult and challenging for all of our
employees, we are encouraged by the fact that we have been able to remain profitable in
a very difficult business environment. Our goal now is to rebuild revenues. We have
taken a number of steps that we believe will deliver results in the future, including:
The introduction of the Keystone’s competitively priced Platinum Plus line
of collision replacement parts with fit, finish and quality guaranteed for the
life of the vehicle.
A strategic alliance with Copart, Inc., the nation’s leading auctioneer of
salvage vehicles to sell Keystone parts through the copart.com web site.
Copart, Inc. currently auctions over 600,000 vehicles at 76 locations across
the United States. It is estimated that approximately one half of these
vehicles are sold to rebuilders, who in turn purchase salvage or aftermarket
A continued emphasis on non-affected products including recycled bumpers,
radiators, condensers, wheels, and paint and supplies.
Keystone Automotive Industries, Inc.
“We continue to believe in the economic value provided by our high quality
aftermarket collision replacement parts. This economic value benefits consumers
through contributing to lower auto insurance premiums and lower costs for replacement
parts for non insured repairs, benefits insurance companies by reducing claims costs and
preventing an OEM monopoly on collision parts and benefits collision repair facilities by
increasing the number of repairable vehicles.”
Keystone Automotive Industries, Inc. distributes its products throughout the
United States primarily to collision repair shops through its 118 warehouses, of which 21
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. These products comprise more than 19,000 stock keeping
units that are sold to more than 25,000 repair shops throughout the nation.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor”
for certain forward-looking statements. The statements contained in this press release
that are not historical facts are forward-looking statements based on the company’s
current expectations and beliefs concerning future developments and their potential
effects on the company. There can be no assurance that future developments affecting
the company will be those anticipated by the company. Actual results may differ from
those projected in the forward-looking statements. These forward-looking statements
involve significant risks and uncertainties (some of which are beyond the control of the
company) and are subject to change based upon various factors, including but not limited
to the impact on the company of (i) the implementation of a new comprehensive
enterprise software package for accounting, distribution and inventory planning (ii) the
verdict in the State Farm Mutual Automobile Insurance company class action, which is
on appeal, and (iii) the possibility that additional automobile insurance companies will
suspend the use of aftermarket collision replacement parts in repairing covered vehicles.
In addition, there can be no assurance that steps being taken to rebuild revenues
described above will be successful. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as the result of new
information, future events or otherwise. For a more detailed discussion of some of the
ongoing risks and uncertainties of the company’s business, see the Company’s Form
10-K for the year ended March 31, 2000 on file with the Securities and Exchange
# # #
Keystone Automotive Industries, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
Weeks Ended Weeks Ended
June 30, July 2,
Net sales $ 86,612 $ 101,381
Cost of sales 49,674 56,475
Gross profit 36,938 44,906
Selling and distribution expenses 26,936 28,574
General and administrative 7,658 7,657
Operating income 2,344 8,675
Other income 438 686
Interest income (expense) (297) (48)
Income before income taxes 2,485 9,313
Income taxes 1,019 3,818
Net income $ 1,466 $ 5,495
Earnings per share:
Basic $ 0.10 $ 0.33
Diluted $ 0.10 $ 0.33
Weighted average shares outstanding:
Basic 14,557,000 16,728,000
Diluted 14,557,000 16,818,000