Keystone Automotive Operations, Inc. Reports Fourth Quarter and 2008 Fiscal Year...

Keystone Automotive Operations, Inc. Reports Fourth Quarter and 2008 Fiscal
Year Results

EXETER, Pa., March 30 /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 fourth
quarter and 2008 fiscal year ended January 3, 2009. Highlights include:

-- For the fiscal year ended January 3, 2009, sales were $566.3 million,
a
decrease of $48.6 million, or 7.9%, compared to $614.9 million in the
prior fiscal year. The decrease in sales was driven by a combination
of
factors, including a decrease in consumer spending on discretionary
items due to general economic uncertainty, a year-over-year decline in
truck and SUV sales and the decline in available consumer credit in
the
marketplace.

-- Gross profit for fiscal year 2008 was $176.5 million, a decrease of
$11.2 million, or 5.9%, from the prior fiscal year due to lower net
sales offset slightly by higher selling margins. Gross margin
increased
to 31.2% from 30.5% in the prior fiscal year.

-- Operating loss for the 2008 fiscal year was $210.6 million, compared
to
$10.0 million income from operations in the prior year period. The
$220.6 million decrease was driven primarily by a $209.2 million
increase in non-cash goodwill impairment charges and by the decrease
in
gross profit. Excluding these non-cash goodwill impairment charges
from
both years, the 2008 fiscal year operating income would have been $8.4
million compared to $19.8 million in the prior year period.

-- The Company recorded a net loss of $206.0 million for the fiscal year
ended January 3, 2009, versus a net loss of $27.1 million in the prior
fiscal year. Partially offsetting the decrease of $220.6 million in
operating income cited above was a $3.9 million decrease in net
interest
expense and a $31.6 million increase in income tax benefits. The 2007
full year results were further impacted by a $6.1 million write-off of
deferred financing costs associated with the Company's refinancing
in January 2007.

-- For the 2008 fiscal year, net cash provided by operating activities
declined to $3.4 million compared to $21.3 million dollars for the
prior
fiscal year. The net decrease in cash from operations year-over-year
was driven by a decrease in net income after adjustment for non-cash
charges and a decrease in the reduction for net assets employed in the
business.

-- Cash on hand increased by $17.4 million to $27.3 million compared to
the
fiscal 2007 year end balance of $9.9 million. At January 3, 2009 and
subsequently at February 28, 2009, the company had $66.0 million and
$81.9 million, respectively, in cash and borrowing capacity under its
revolving credit facility.

-- During the second half of fiscal year 2008, the company focused on
reducing working capital requirements. As a result, accounts
receivable
and inventory were reduced by $11.5 million and $18.4 million
respectively over prior year levels. During this difficult economic
environment, the company continued to monitor and effectively mitigate
credit risk exposure of its receivables portfolio and also decreased
its
slower-moving inventory.

2009 Fiscal Year Update
Keystone Automotive Operations has implemented a number of cost reduction
initiatives since the beginning of fiscal year 2009, including closing three
call centers and one retail store, and reducing its workforce. The estimated
annual savings from these initiatives is expected to be approximately $11.0
million.

"With consumers short of discretionary dollars and new car and SUV sales
continuing to decline, our business continues to face significant challenges,"
said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations.
"We have taken a number of actions to deal with the current and near-term
environment. In October 2008, we purchased the operating assets of Arrow
Speed Warehouse. The incremental revenue from Arrow Speed mitigated what
would otherwise have been a more significant decrease in sales as a result of
current economic conditions. Thanks to a more disciplined pricing management
approach, we have managed to maintain our gross margins during 2008. We are
focused on doing the right things for the business while managing our expenses
appropriately so that we remain well-positioned in the marketplace, and poised
for a rebound when market conditions improve."

Summary Financials

Summary Income Statement
($ in millions)

Three Months Three Months Fiscal Year Fiscal Year
Ended Ended Ended Ended
December 29, January 3, December 29, January 3,
2007 2009 2007 2009
(Unaudited) (Unaudited)
Net sales $141.7 $120.3 $614.9 $566.3
Gross profit 43.7 35.8 187.7 176.5
Operating income (8.2) (225.7) 10.0 (210.6)
Net income
(loss) $(16.4) $(199.0) $(27.1) $(206.0)

Summary Balance Sheet
($ in millions)

As of December 29, 2007 As of January 3, 2009

Assets
Current assets $207.1 $187.0
Property, plant and equipment, net 50.0 47.4
Other non-current assets 417.7 182.8
Total Assets $674.8 $417.2

Liabilities and Stockholder's Equity
Current liabilities $83.0 $46.9
Long-term debt 365.2 391.5
Other long-term liabilities 63.1 20.4
Total Liabilities 511.3 458.8
Stockholder's Equity 163.5 (41.6)
Total Liabilities and Stockholder's Equity $674.8 $417.2

Conference Call Details
Keystone will hold a live conference call to discuss financial results for the
fourth quarter and fiscal year ended January 3, 2009, on April 2, 2009, at
11:00 a.m. EDT. To participate, please dial in to the conference call at
(866) 379-5047, access code 93097933. The conference call topic is Keystone
Automotive Operations, Inc. Fiscal Year 2009 Earnings Conference Call.

A telephone replay of the call will be available from 12:30 p.m. EDT on April
2, 2009 until 11:59 p.m. EDT on April 9, 2009. The replay of the call may be
accessed by dialing (800) 642-1687, access code 93097933.

About Keystone Automotive Operations
Keystone Automotive Operations, Inc. (www.ekeystone.com) is a leading
distributor and marketer of automotive aftermarket accessories and equipment
in North America, providing product lines to approximately 17,000 wholesale
customers. The Company operates four distribution centers and 21
non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet
of over 330 trucks that provide multi-day per week delivery and returns
covering 47 states and parts 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.

Investors: Stuart Gleichenhaus, Keystone Automotive Operations, Inc.,
+1-570-602-6705, Media: Alex Stanton, Stanton Public Relations & Marketing,
+1-212-780-0701, astanton@stantonPRM.com