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Published:
FinishMaster Announces Third Quarter Financial Results
INDIANAPOLIS - (BUSINESS WIRE) - FinishMaster, Inc. (Pink Sheets: FMST) today reported net income for the
quarter ended September 30, 2009 of $2,996,000, or $0.38 per diluted
share, compared with net income of $4,754,000, or $0.60 per diluted
share, in the prior year period. For the nine months ended September 30,
2009, net income was $9,300,000, or $1.18 per diluted share, compared to
net income of $16,388,000, or $2.08 per diluted share, in the prior year
period. Affecting the comparability of the Company's year-to-date
financial performance and favorably impacting 2008 results by $0.40 per
diluted share was the receipt of $5,224,000 in proceeds from the
settlement of a lawsuit. After considering the impact of this item,
comparable year-to-date net income declined from $1.68 per diluted share
in 2008 to $1.18 per diluted share in 2009.
Net sales decreased 14.6% to $105,004,000 for the quarter and 14.1% to
$324,384,000 for the year-to-date period due to a decline in same branch
sales. Lower repairable automobile claim activity throughout the United
States impacted the Company's overall market opportunity for the sale of
its products and services. The sales decline was greater in the
Company's industrial and fulfillment businesses relative to its
traditional business with collision repair centers.
For the quarter and year-to-date period, gross margin dollars decreased
by 14.0% to $31,515,000 and 15.1% to $97,949,000, respectively, due
primarily to lower sales volume.
Total expenses as a percentage of net sales increased 170 basis points
to 24.6% for the quarter and 90 basis points to 24.8% for the
year-to-date period as a result of expenses decreasing at a slower rate
than net sales. Despite the challenging operating environment, the
Company was able to effectively reduce expenses by $2,366,000 for the
quarter and $9,850,000 for the year-to-date period through an expense
reduction plan. Higher bad debt expenses for the year-to-date period and
increased intangible amortization for the quarter partially offset these
lower expenses. Intangible amortization was lower than normal in the
prior year quarter due to a favorable purchase accounting adjustment.
Reduced interest expense for the quarter and year-to-date period
resulted from lower annualized effective interest rates and average
outstanding borrowings.
FinishMaster is the largest national independent distributor of
automotive paints, coatings, and related accessories to the automotive
collision repair industry. The Company is headquartered in Indianapolis,
Indiana, and operates three major distribution centers and 167 branches
in 39 of the 50 largest metropolitan areas in the country. For more
information on FinishMaster via the Internet, visit FinishMaster's
website at http://www.finishmaster.com/.
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Selected Historical Financial Data
(000's omitted, except per share data)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2009
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2008
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2009
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2008
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Net sales
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$
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105,004
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$
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122,997
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$
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324,384
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$
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377,830
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Gross margin
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31,515
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36,644
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97,949
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115,426
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Gross margin %
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30.0%
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29.8%
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30.2%
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30.5%
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Operating and SG&A expenses
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24,845
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27,783
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77,731
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87,509
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Amortization of intangible assets
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979
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407
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2,832
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2,904
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Total expenses
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25,824
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28,190
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80,563
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90,413
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Income from operations
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5,691
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8,454
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17,386
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25,013
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Other income
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-
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-
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-
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5,224
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Interest expense
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584
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926
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1,866
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3,057
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Income tax expense
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2,111
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2,774
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6,220
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10,792
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Net income
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$
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2,996
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$
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4,754
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$
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9,300
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$
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16,388
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Diluted earnings per share
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$
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0.38
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$
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0.60
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$
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1.18
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$
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2.08
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Diluted weighted average shares outstanding
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7,892
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7,888
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7,890
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7,888
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September 30,
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December 31,
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2009
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2008
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Cash
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$
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4,096
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$
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2,461
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Accounts receivable, net
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36,911
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39,969
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Inventories
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91,122
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111,723
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Goodwill and intangible assets, net
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114,467
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117,304
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Property, equipment & all other assets
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42,951
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45,903
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Total assets
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$
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289,547
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$
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317,360
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Accounts payable
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$
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56,905
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$
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67,135
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Current & long-term debt
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53,160
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82,036
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Accrued expenses & all other liabilities
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27,476
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25,697
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Shareholders' equity
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152,006
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142,492
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Total liabilities & shareholders' equity
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$
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289,547
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$
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317,360
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Nine Months Ended
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September 30,
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2009
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2008
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Net cash provided (used) in:
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Operating activities
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$
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33,243
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$
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17,947
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Investing activities
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(2,257)
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(4,232)
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Financing activities
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(29,351)
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(15,849)
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Increase (decrease) in cash
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$
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1,635
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$
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(2,134)
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Cash at beginning of period
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$
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2,461
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$
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4,230
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Cash at end of period
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$
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4,096
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$
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2,096
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FinishMaster, Inc.
Robert R. Millard, 317-263-5200
Copyright © 2009, Business Wire, Inc., All rights reserved. Copyright © 2009, NewsBlaze, Daily NewsTags: Business wire, indiana, manufacturing
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