INDIANAPOLIS -- Independent collision products distributor FinishMaster Inc. has reported net income for the quarter ended Dec. 31, 2009, of $1.64 million or 21 cents per diluted share, compared with net income of $1.67 million or 21 cents per diluted share, in the prior year period.

For the 12 months ended Dec. 31, 2009, net income was $10.9 million or $1.39 per diluted share, compared to net income of $18 million or $2.29 per diluted share, in the prior year. Affecting the comparability of the company’s financial performance for the year and favorably impacting 2008 results by 39 cents per diluted share was the receipt of $5.2 million in proceeds from the settlement of a lawsuit. After considering the impact of this item, comparable net income for the year declined from $1.90 per diluted share in 2008 to $1.39 per diluted share in 2009.

“Our financial performance reflects the challenging economic environment of the past year,” said J. A. Lacy, president and CEO. “While we expect the difficult market conditions to prevail throughout much of 2010, we remain confident in our ability to execute our strategy successfully and remain a market leader serving the collision repair industry.”

Net sales decreased 10.3 percent to $97 million for the quarter and 13.3 percent to $421 million for the year due to a decline in same branch sales. Lower repairable automobile claim activity throughout the United States impacted the company’s overall market opportunity for the sale of its products and services. The sales decline was greater in the company’s industrial and fulfillment businesses relative to its traditional business with collision repair centers.

For the year, debt levels decreased 36.8 percent to $52 million as a result of net working capital management and cash generated from operating activities.

FinishMaster is the largest national independent distributor of automotive paints, coatings, and related accessories to the automotive collision repair industry. The company is headquartered in Indianapolis, Ind., and operates three major distribution centers and 163 branches in 39 of the 50 largest metropolitan areas in the country.