EXETER, Penn., May 12 /PRNewswire/ -- Keystone Automotive Operations, Inc., a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced financial results for its fiscal first quarter ended March 29, 2008. Highlights include:
-- Net sales for the first quarter were $143.9 million, a decrease of $2.4
million, or 1.6%, compared to $146.3 million for the same period in the
prior year. This modest sales decrease occurred at a time when the
macroeconomic environment remained soft and consumer spending on
discretionary items remained conservative. The Company believes that
its first quarter performance versus overall industry trends suggest
gains in market share driven by outstanding customer service and a
broad and deep assortment of inventory.
-- Gross profit for the first quarter was $46.4 million versus $44.9
million for the same period in the prior year, an increase of $1.5
million, or 3.5%. Gross margin increased to 32.3% in the fiscal
quarter ended March 29, 2008, an increase of approximately 160 basis
points compared to gross margin of 30.7% for the same period in the
prior year.
-- Operating income for the first quarter was $4.4 million, an increase of
$2.4 million compared to $2.0 million for the same period in the prior
year. The increase was attributable to the improvement in gross profit
mentioned above as well as a decline in operating expenses, driven
primarily by efficiencies in warehouse operations, which helped to more
than offset higher fuel costs and inflation.
-- The Company recorded a net loss of $2.8 million in the first quarter
ended March 29, 2008 versus a net loss of $8.5 million for the same
period in the prior year. The fiscal quarter ended March 29, 2008
benefited from higher operating income, lower interest expense and the
absence of a $6.1 million deferred financing charge associated with the
refinancing that occurred early in the first fiscal quarter of the
prior year. This was partially offset by a $3.4 million decrease in
income tax benefit.
-- As of March 29, 2008 the Company had a cash balance of $11.9 million.
The net debt (total debt less cash) at the end of the first quarter was
$360.6 million compared to $368.1 million for the same period in the
prior year.
"In an operating environment that remained extremely challenging, we are pleased with our financial performance for quarter," said Ed Orzetti, Chief Executive Officer of Keystone. "The increases we achieved in gross margin and operating profit illustrate that we are doing the right things for the business. We are focused on eliminating inefficiencies in our operations while leveraging our core strengths -- inventory availability, timely delivery, and superior customer service."
Summary Financials (Unaudited)
Summary Income Statement
($ in millions)
Three Months Ended Three Months Ended
March 31, 2007 March 29, 2008
Net sales $146.3 $143.9
Gross profit 44.9 46.4
Operating income 2.0 4.4
Net income (loss) $ (8.5) $ (2.8)
Summary Balance Sheet
($ in millions)
As of As of
December 29, 2007 March 29, 2008
Assets
Current assets $207.1 $231.6
Property, plant and equipment, net 50.0 50.5
Other non-current assets 417.7 413.8
Total Assets $674.8 $695.9
Liabilities and Stockholder's Equity
Current liabilities $ 83.0 $109.1
Long-term debt 365.2 364.7
Other long-term liabilities 63.1 61.1
Total Liabilities 511.3 534.9
Shareholder's Equity 163.5 161.0
Total Liabilities and
Stockholder's Equity $674.8 $695.9
Conference Call Details
Keystone will hold a conference call to discuss the financial results for the first quarter ended March 29, 2008 on May 14, 2008, at 11:00 a.m. EDT. To participate, please dial in to the conference call at (866) 600-0797, access code 46956805. The conference call topic is "Keystone Automotive Operations, Inc. First Quarter Earnings Conference Call".
A telephone replay of the call will be available from 12:30 p.m. EDT on May 14, 2007 until 11:59 p.m. EDT on May 21, 2008. The replay of the call may be accessed by dialing (800) 642-1687, access code 46956805.
About Keystone Automotive Operations
Keystone Automotive Operations, Inc. (www.ekeystone.com) is a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, providing product lines to approximately 20,000 wholesale customers. The Company operates four distribution centers and 21 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 300 trucks that provide multi-day per week delivery and returns covering 42 states and parts of Canada.
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; and other risks. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.