EXETER, Pa. — Keystone Automotive Operations has announced financial results for the first quarter of fiscal year 2010, ended April 3.
For the first quarter, net sales were $122 million, an increase of $2.3 million, or 1.9 percent, compared to $119.7 million for the same period in the prior year. The increase represents the company’s first quarterly year-over-year increase in more than two years.
Gross profit for the quarter was $38.8 million, a decrease of $1 million, or 2.5 percent, for the same period in the prior year. Gross margin was 31.8 percent for the three month period ended April 3, as compared to 33.2 percent for the three month period ended April 4, 2009. Keystone said the decreases resulted from slightly lower selling margins and the timing of expenditures associated with advertising and marketing programs in support of the company’s various vendor programs.
The company recorded a net loss of $6.4 million for the three months, versus a net loss of $5.4 million for the same period in the prior year. The increased net loss was primarily attributable to a $3.1 million reduction in income tax benefit, partially offset by the $1.7 million improvement in income from operations and a $0.4 million decrease in interest expense.
"We are pleased to report a sales increase this quarter, our first in two years, which is a reflection of recent positive momentum in the automobile industry and our continued focus on geographic expansion and enhanced customer service," said Ed Orzetti, CEO. "However, we continue to operate the business conservatively in these challenging economic times as we expect any recovery in the automotive aftermarket accessories and equipment industry to be modest and gradual. We remain focused on leveraging our geographic footprint to serve customers efficiently, on cost management across our operations, and on continuing to explore business expansion opportunities."
