Keystone Automotive Operations, Inc. Reports Third Quarter Fiscal 2010 Results

EXETER, Pa., Nov. 15, 2010 /PRNewswire/ -- Keystone Automotive Operations, Inc., a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced financial results for the third quarter of fiscal year 2010 ended October 2, 2010.  Highlights include:

• Net sales in the third quarter of fiscal 2010 were $123.3 million, an increase of $6.7 million, or 5.7%, compared to $116.6 million for the same period in the prior year, driven primarily by volume increases across most of our geographies.
• Gross profit for the third quarter was $39.5 million, an increase of $3.5 million, or 9.8%, over the same period in the prior year.  Gross margin was 32.0% for the three month period ended October 2, 2010, versus 30.8% for the three month period ended October 3, 2009.  These increases were primarily attributable to higher sales volumes and improved sales mix.  
• Income from operations for the third quarter of fiscal year 2010 was $1.2 million compared to a loss from operations of $0.4 million for the same period in the prior year.  This improvement was primarily attributable to the gross profit increase, partially offset by increased selling, general and administrative expenses.
• The Company recorded a net loss of $5.8 million for the three months ended October 2, 2010, versus a net loss of $7.5 million for the same period in the prior year.  The decreased net loss was primarily attributable to the improvement in income from operations.
• As of October 2, 2010, the Company had a cash balance of $40.6 million and an additional $39.4 million of borrowing capacity under its revolving credit facility.
• Working capital totaled approximately $130.2 million at October 2, 2010, up slightly from $127.4 million at January 2, 2010.  
• Net cash provided by operating activities during the nine months ended October 2, 2010 was $18.7 million compared to $40.9 million for the same period in the prior year.  The decrease in net cash provided by operating activities resulted primarily from increases in accounts receivable and inventory levels versus decreases in the prior year, partially offset by a smaller increase in accounts payable levels.  This decrease in cash for higher net operating assets employed in the business year-over-year was partially offset by a $8.3 million increase in net income adjusted for non-cash charges.  

"We are pleased to report our third consecutive quarter of increases in year-over-year sales, despite a sluggish macroeconomic environment," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations, Inc. "We continue to operate the business conservatively in these challenging economic times while prudently investing in the business for both the short and long term.  A key ongoing priority is working with our strategic suppliers to introduce programs that continuously improve the customer experience.  We are well-positioned to benefit from a rebound in the economy and an increase in discretionary spending, and we are busy getting ready for our 'Big Show' events in New Jersey and Texas, which we expect to be bigger and better than last year."

Conference Call Details

Keystone will hold a conference call to discuss the financial results for the third quarter ended October 2, 2010 on November 16, 2010, at 11:00 a.m. EST.  To participate, please dial in to the conference call at (866) 509-8636, access code 25029553.  The conference call topic is "Keystone Automotive Operations, Inc. Third Quarter Earnings Conference Call".

A telephone replay of the call will be available from 12:30 p.m. EST on November 16, 2010 until 11:59 p.m. EST on November 23, 2010.  The replay of the call may be accessed by dialing (800) 642-1687, access code 25029553.

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 24 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.  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.