EXETER, Pa. — Keystone Automotive Operations has announced financial results for the fourth quarter and fiscal year 2009, which ended Jan. 2.
For the fiscal year ended Jan. 2, net sales were $468.5 million, a decrease of $97.8 million, or 17.3 percent, compared to $566.3 million in the prior fiscal year. The decrease in net sales was driven by a combination of factors, including lower consumer spending on discretionary items, general economic recession, increased unemployment, a year-over-year reduction in truck and SUV sales, and the continued decline in available credit in the marketplace, the company said.
Gross profit for fiscal year 2009 was $147.1 million, a decrease of $29.4 million, or 16.7 percent, from the prior fiscal year. The decrease in gross profit was due to the reduction in net sales, partially offset by slightly higher selling margins which increased to 31.4 percent, up from 31.2 percent in fiscal year 2008.
The company recorded a net loss of $21.2 million for the fiscal year, versus a net loss of $206 million in the prior fiscal year. The decrease in the net loss was due primarily to the $207.4 million decrease in operating loss and from a $5.1 million decrease in interest expense, partially offset by a $27.8 million decrease in income tax benefits.
For the 2009 fiscal year, net cash provided by operating activities increased to $5.1 million compared to $3.4 million in the prior fiscal year. The increase in cash provided by operating activities was driven by a decrease in the net operating assets employed in the business, which was partially offset by an increase in net loss, adjusted for non-cash charges.
Net sales for the fourth quarter ended Jan. 2 were $102.6 million, a decrease of $17.7 million, or 14.7 percent, compared to $120.3 million for the fourth quarter of the prior fiscal year. The decrease is attributable to the same factors previously mentioned.
Gross profit for the fourth quarter 2009 was $32.5 million versus $35.8 million for the same period in the prior year, a decrease of $3.3 million, or 9.1 percent. Gross margin, as a percentage of sales, increased to 31.7 percent for the fourth quarter from 29.8 percent in the fourth quarter of the prior fiscal year.
As of Jan. 2, the company had a cash balance of $26.4 million and an additional $28.5 million of borrowing capacity under its revolving credit facility.
"During the fourth quarter, we continued to leverage our geographic footprint to serve customers efficiently, and maintained our focus on cost management across our operations," said Ed Orzetti, CEO of Keystone Automotive Operations Inc. "While we experienced a sales decline in what remains a challenging environment for discretionary spending, we were able to maintain our margins, and our substantial cash and liquidity position allowed us to continue to invest prudently in the business for the long-term. During 2009, we opened three new cross-docks in North America to better serve our customers in the Pacific Northwest and Canada, and now offer delivery in our vehicles to all 48 contiguous states and six provinces in Canada. We believe that as the industry continues to experience a consolidation, our leading market position enhances our ability to sell to existing customers, attract new customers, and gain market share."
