EXETER, Pa. — Keystone Automotive Operations has announced financial results for its fiscal first quarter ended March 29.
Net sales for the first quarter were $143.9 million, a decrease of $2.4 million, or 1.6 percent, compared to $146.3 million for the same period in the prior year. This modest sales decrease occurred at a time when the macroeconomic environment remained soft and consumer spending on discretionary items remained conservative. The company believes that its first quarter performance versus overall industry trends suggest gains in market share driven by outstanding customer service and a broad and deep assortment of inventory.
Gross profit for the first quarter was $46.4 million versus $44.9 million for the same period in the prior year, an increase of $1.5 million, or 3.5 percent. Gross margin increased to 32.3 percent in the quarter, an increase of approximately 160 basis points compared to gross margin of 30.7 percent for the same period in the prior year.
Operating income for the first quarter was $4.4 million, an increase of $2.4 million compared to $2 million for the same period in the prior year. The company said the increase was attributable to the improvement in gross profit mentioned above as well as a decline in operating expenses, driven primarily by efficiencies in warehouse operations, which helped to more than offset higher fuel costs and inflation.
The company recorded a net loss of $2.8 million in the first quarter ended March 29, versus a net loss of $8.5 million for the same period in the prior year. The fiscal quarter ended March 29, benefited from higher operating income, lower interest expense and the absence of a $6.1 million deferred financing charge associated with the refinancing that occurred early in the first fiscal quarter of the prior year. This was partially offset by a $3.4 million decrease in income tax benefit.
As of March 29, the company had a cash balance of $11.9 million. The net debt (total debt less cash) at the end of the first quarter was $360.6 million compared to $368.1 million for the same period in the prior year.
"In an operating environment that remained extremely challenging, we are pleased with our financial performance for quarter," said Ed Orzetti, chief executive officer of Keystone. "The increases we achieved in gross margin and operating profit illustrate that we are doing the right things for the business. We are focused on eliminating inefficiencies in our operations while leveraging our core strengths — inventory availability, timely delivery, and superior customer service."
For more information, visit: http://www.ekeystone.com.
