POMONA, CA — Keystone Automotive Industries has reported results for its fourth quarter and fiscal year, which ended on March 26. The company said it surpassed the $500 million sales milestone for the year.
Keystone distributes products primarily to collision repair shops through 125 distribution facilities, located in 38 states and Canada. The company’s product lines consist of automotive body parts, bumpers and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. The company offers more than 19,000 SKUs sold to more than 25,000 repair shops throughout the nation.
Net income for the fourth quarter climbed 28.5 percent to $6.3 million, or 41 cents per diluted share, from $4.9 million, or 33 cents per diluted share, a year ago. Net sales for the fiscal fourth quarter increased 14 percent to a record $140.1 million compared with $122.7 million last year.
For the full fiscal year, net income increased 20.2 percent to $17.7 million, or $1.16 per diluted share, from $14.7 million, or 99 cents per diluted share, a year earlier. Net sales for the same period climbed 14 percent to $501.1 million from $439.1 million in fiscal 2003.
According to Charles Hogarty, president and CEO of Keystone Automotive, the company’s 2004 results represent the third consecutive year of strong revenue, cash flow and earnings growth. “This solid performance is the result of increased utilization of aftermarket collision replacement parts by insurance companies,” he said.
He emphasized the favorable economics of the company’s aftermarket parts compared with original equipment parts and stated that Keystone’s quality assurance programs are important factors driving the acceptance of the company’s products by the insurance industry, body shops and consumers.
Hogarty noted that same store sales for the fourth quarter and fiscal year increased approximately seven percent and nine percent, respectively, compared with the same periods a year ago. Gross profit as a percentage of sales was 44.0 percent for the fourth quarter and 43.7 percent for the full year, primarily as a result of product mix and pricing, compared with 43.5 percent and 43.5 percent in the prior year, respectively.
He stressed Keystone’s ongoing strategy to continue strengthening its distribution capabilities, having completed six acquisitions during fiscal 2004, including two acquisitions in Canada, and the establishment of two Greenfield operations.
Hogarty noted that the company’s strong financial condition will enable it to continue to pursue strategic acquisitions and Greenfield opportunities as they arise.
To date, the company has converted 85 sites to its new management information system and expects to convert the remaining 56 sites (excluding only sites in Canada and certain recently acquired sites) by November.
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