EXETER, Pa., Feb. 11, 2011 /PRNewswire/ -- Keystone Automotive Operations, Inc. ("Keystone" or the "Company"), a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced preliminary financial results for the fourth quarter and fiscal year 2010, which ended January 1, 2011. The Company plans to file its audited fiscal year 2010 financial results on or before April 1, 2011.
Keystone estimates that net sales for the fourth quarter 2010 were approximately $114.9 million, an increase of $12.3 million, or 12.0%, 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 January 1, 2011, Keystone estimates that net sales were approximately $497.1 million, an increase of $28.6 million, or 6.1%, 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.
The Company estimates gross margin was approximately 32.1% for the fourth quarter, and approximately 32.0% for the full fiscal year. Both were essentially flat versus the same periods in the prior year, and are attributable to Keystone's continued focus on enhancing its product mix and pricing disciplines, despite the continued challenging economic environment.
As of January 29, 2011, Keystone had in excess of $43 million in cash on hand.
Keystone announced on January 10, 2011, that it had reached an agreement with affiliates of Platinum Equity, LLC and Littlejohn & Co., LLC (together, the "Backstop Parties") on the terms of a recapitalization transaction that is expected to reduce the Company's outstanding indebtedness by approximately $295 million. On Feb 2, 2011 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, Chief Executive Officer 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."
Conference Call Details
Keystone will hold a conference call to discuss its 2010 financial results and to provide an update on the recapitalization process on February 17, 2011, at 11:00 a.m. EST. To participate, please dial in to the conference call at (866) 509-8636, access code 44664588. The conference call topic is "Keystone Automotive Operations, Inc. 2010 Earnings and Recapitalization Update Conference Call".
A telephone replay of the call will be available from 12:00 p.m. EST on February 17, 2011 until 11:59 p.m. EST on February 24, 2011. The replay of the call may be accessed by dialing (800) 642-1687, access code 44664588.
About Keystone Automotive Operations, Inc.
Keystone Automotive Operations, Inc. (www.keystoneautomotive.com) is a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, providing product lines to approximately 15,000 customers. The Company operates four distribution centers and 23 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 300 trucks that provide multi-day per week delivery and returns covering 48 states and nine provinces of Canada.
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; and other risks, including those described in the "Risk Factors" section of the Company's Annual Reports on Form 10-K and its Quarterly Reports on form 10-Q filed with the Securities and Exchange Commission. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.
SOURCE Keystone Automotive Operations, Inc.