EXETER, Pa. — Keystone Automotive Operations has announced preliminary financial results for the fourth quarter and fiscal year 2010, which ended Jan. 1.
Keystone estimates that net sales for the fourth quarter 2010 were approximately $114.9 million, an increase of $12.3 million, or 12 percent, compared to $102.6 million for the fourth quarter of the prior fiscal year. The increase in net sales is attributable to growth across all the geographies Keystone serves as well as increases in its national account, export and other developing market businesses.
For the full fiscal year ended Jan. 1, Keystone estimates that net sales were approximately $497.1 million, an increase of $28.6 million, or 6.1 percent, compared to $468.5 million in the prior fiscal year. The increase in net sales was driven by the same factors mentioned above, partially offset by a slight decline in the company’s retail segment.
As of Jan. 29, Keystone says it had in excess of $43 million in cash on hand.
On Jan. 10, Keystone announced it had reached an agreement with affiliates of Platinum Equity LLC and Littlejohn & Co. LLC on the terms of a recapitalization transaction that is expected to reduce the company’s outstanding indebtedness by approximately $295 million. On Feb. 2, the company announced that its new $120 million first lien senior secured term loan, arranged by Goldman Sachs Lending Partners LLC, was fully subscribed and a new asset-based revolving credit facility was committed to by Bank of America, N.A.
The proceeds from the new debt financing and $60 million from a rights offering backstopped by the backstop parties, together with cash on hand, is expected to provide the total liquidity requirements to fund the company’s recapitalization plan, which includes the payment in full for all goods and services provided to the company by its suppliers, and support ongoing operations.
"We are pleased to report estimated sales increases for both the quarter and the year," said Ed Orzetti, CEO of Keystone Automotive Operations Inc. "We are encouraged by the positive trends we see taking shape in the automobile industry. Our mission remains to support customers and suppliers with programs that help them become more efficient and profitable. In addition, we continue to move forward to implement our recapitalization plan, which will reduce debt, strengthen our balance sheet and better position us to seize growth opportunities in the future."
The company plans to file its audited fiscal year 2010 financial results on or before April 1.
