EXETER, PA --
Specialty automotive accessories distributor Keystone Automotive Operations has announced financial results for the fourth quarter and fiscal year, which ended Dec. 31, 2005.
Net sales for the fourth quarter were $118.9 million, an increase of $12.6 million, or 11.9 percent, as compared to $106.3 million for the same period in the prior year. The company said the sales increase was driven primarily by further penetration in developing markets and the acquisition of Blacksmith Distributing in May 2005.
Gross profit for the fourth quarter was $38.6 million, or 32.4 percent, as compared to $36.5 million, or 34.4 percent for the
same period in the prior year. The fourth quarter 2005 was negatively
impacted by $0.4 million, for the amortization of fair market valuation
of inventory. Included in the quarterly results were promotional
activities that favorably impacted 2005 by $1.3 million while 2004 was
favorably impacted by $2.6 million.
Operating income for the fourth quarter was
$3.5 million, a decrease of $3.2 million, or 47.3 percent, as compared to
$6.7 million for the comparable period in 2004. The decrease in
operating income resulted primarily from margin impacts, additional investments made to support future growth, including
new cross-docks opened in 2005, wage inflation and higher fuel costs.
Net income for the fourth quarter was a loss of
$(2.5) million compared to $0.1 million for the same period last year.
At the end of 2005, the company had a cash and cash equivalents balance
of $8.2 million. The company's net debt (total debt less cash) at the
end of the fourth quarter was $352.3 million.
For the fiscal year, sales were $509.1 million,
an increase of $60.1 million, or 13.4 percent, as compared to $449 million
for the same period in the prior year. Gross profit for the fiscal
year was $165.8 million, or 32.6 percent, as compared
to $148.7 million, or 33.1 percent for the same period in the prior year. The
fiscal year was negatively impacted by $1 million, for the
amortization of fair market valuation of inventory, while 2004 was
negatively impacted by $3.5 million.
Operating income for the fiscal year was $29.7 million, a decrease of
$4.5 million, or 13.2 percent, as compared to $34.2 million for the comparable
period in 2004. Net income decreased by $3.9 million or 67.9 percent from
$5.7 million for the year ended Jan. 1, 2005 to a net income of
$1.8 million for the year ended Dec. 31, 2005.
For more information about Keystone, go to: http://www.ekeystone.com .
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