Keystone Automotive Operations, Inc. Reports First Quarter Fiscal 2009 Financial...

Keystone Automotive Operations, Inc. Reports First Quarter Fiscal 2009
Financial Results

EXETER, Pa., May 18 /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 first
quarter of fiscal year 2009 ended April 4, 2009. Highlights include:

-- Sales for the first quarter ended April 4, 2009 were $119.7 million, a
decrease of $24.2 million, or 16.8%, compared to $143.9 million for
the
first quarter in the prior year. The decrease in sales was driven by
a
combination of factors, including less consumer spending on
discretionary items due to the general economic recession, a
year-over-year decline in truck and SUV sales, and a reduction in
credit
availability in the marketplace.

-- Gross profit for the first quarter of fiscal 2009 was $39.6 million, a
decrease of $6.8 million, or 14.8%, from the same period in the prior
year. Gross margin was 33.1%, up from 32.3% in the first quarter of
the
prior fiscal year.

-- Operating loss for the first quarter of fiscal 2009 was $1.1 million,
a
decrease of $5.5 million compared to a $4.4 million operating income
for
the same period in the prior year. The decrease was attributable to
the
decline in sales, partially offset by the improvement in gross margin
and by a decrease in operating expenses. The expense reductions came
from efficiencies in sales, warehouse and delivery operations, and
from
a decrease in fuel cost.

-- Net loss for the first quarter of fiscal 2009 was $5.4 million, versus
a
net loss of $2.8 million for the same period in the prior year. The
higher net loss principally resulted from the previously mentioned
$6.8
million decrease in gross profit, partially offset by a $1.5 million
decrease in selling, general and administrative expenses, a $1.2
million
decrease in interest expense and a $1.6 million increase in income tax
benefit.

-- As of April 4, 2009, the Company had a cash balance of $55.3 million
and
an additional $41.0 million of borrowing capacity under its revolving
credit facility.

"We are never happy to post a year-over-year sales decrease, but given the
challenging economic picture, we believe Keystone's financial results for the
first quarter suggest that we are significantly out-performing the broader
aftermarket accessories and equipment industry," said Ed Orzetti, Chief
Executive Officer of Keystone Automotive Operations, Inc. "We are very
pleased with the increase we achieved in gross margin and remain focused on
diligent category management, deeper sales penetration, enhanced customer
service and a relentless commitment to operational improvements. Our
efficient management of working capital and sturdy cash position, coupled with
strong customer and vendor relationships, position us well to continue to win
market share."

Summary Financials (Unaudited)

Summary Income Statement
($ in millions)

Three Months Ended Three Months Ended
March 29, 2008 April 4, 2009

Net sales $143.9 $119.7
Gross profit 46.4 39.6
Operating income (loss) 4.4 (1.1)
Net income (loss) $ (2.8) $ (5.4)

Summary Balance Sheet
($ in millions)

As of As of
January 3, 2009 April 4, 2009

Assets
Current assets $187.0 215.2
Property, plant and equipment, net 47.4 45.8
Other non-current assets 182.8 179.1
Total Assets $417.2 440.1

Liabilities and Stockholder's Equity
Current liabilities $ 46.9 78.5
Long-term debt 391.5 391.1
Other long-term liabilities 20.4 17.2
Total Liabilities 458.8 486.8
Shareholder's Equity (41.6) (46.7)
Total Liabilities and Stockholder's Equity $417.2 440.1

Conference Call Details
Keystone will hold a conference call to discuss the financial results for the
first quarter ended April 4, 2009 on May 20, 2009, at 11:00 a.m. EDT. To
participate, please dial in to the conference call at (866) 509-8636, access
code 99095894. The conference call topic is "Keystone Automotive Operations,
Inc. First Quarter Earnings Conference Call".

A telephone replay of the call will be available from 12:15 p.m. EDT on May
20, 2009 until 11:59 p.m. EDT on May 27, 2009. The replay of the call may be
accessed by dialing (800) 642-1687, access code 99095894.

About Keystone Automotive Operations
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 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 320 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, Richard S. Paradise of Keystone Automotive Operations, Inc. ,
+1-570-602-6729, rparadise@key-stone.com; or Media, Alex Stanton of Stanton
Public Relations & Marketing, +1-212-780-0701, astanton@stantonPRM.com