PRESS RELEASE - 4-30-04
Published on
NEWS RELEASE
R&B, INC.
Corporate Headquarters:
R&B, Inc.
3400 East Walnut Street
Colmar, Pennsylvania 18915
Fax: (215) 997-8577
For Further Information Contact: Visit our Home Page:
Mathias J. Barton, CFO www.rbinc.com
215) 997-1800 x 5132
E-mail: MBarton@rbinc.com
R&B, Inc. Reports Sales and Earnings for the First Quarter Ended March 27, 2004
Colmar, Pennsylvania (April 30, 2004) -- R&B, Inc., (NASDAQ:RBIN) today
announced financial results for the first quarter ended March 27, 2004. For the
first quarter ended March 27, 2004, sales increased 11% to $56.0 million from
$50.3 million in the same period last year. Net income in the first quarter of
2004 was $3.3 million compared to net income of $2.2 million in the same period
last year. Diluted earnings per share in the first quarter increased 44% to
$0.36 from $0.25 in the same period last year.
Sales volume in 2004 increased as a result of continued sales growth
from products introduced within the last twelve months, shipments to a new
customer for the Company's Pik-A-Nut home hardware business and a lower level of
sales in the first quarter of 2003 due to inventory reduction initiatives by
certain customers. The favorable effects of foreign currency exchange resulted
in a 2% year over year increase in sales. While sales levels are expected to
remain strong, management does not expect to achieve the same level of
year-over-year profit increases in the second through fourth quarters of 2004 as
compared to the first quarter.
Mr. Richard Berman, Chairman, President and Chief Executive Officer
said, "Our strong first quarter sales growth reflects the continued success of
our new products. We are committed to maintaining our leadership position in the
aftermarket. We recently introduced our 'Driving ReveNEW' initiative which is
focused on growing revenue from "new to the aftermarket" products. Our next
major new product initiatives are the introduction of a line of new four wheel
drive actuators and motors and the expansion of our line of plastic intake
manifolds with several new product numbers that we expect to be strong sellers."
R&B, Inc. is a leading supplier of OE Dealer "Exclusive" automotive
replacement parts, automotive hardware and brake products to the automotive
aftermarket and household hardware to the general merchandise markets. R&B's
products are marketed under more than thirty proprietary brand names, through
its Motormite, Dorman, Allparts, Scan-Tech, MPI and Pik-A-Nut businesses.
Forward looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
forward looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward looking statements
which speak
only as of the date hereof. Factors that cause actual results to differ
materially include, but are not limited to, those factors discussed in the
Company's Annual Report on Form 10-K under "Business - Risk Factors."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
13 Weeks 13 Weeks
First Quarter (unaudited) 3/27/04 Pct. 3/29/03 Pct.
Net sales $56,005 100.0 $50,272 100.0
Cost of goods sold 35,390 63.2 31,674 63.0
Gross profit 20,615 36.8 18,598 37.0
Selling, general and
administrative expenses 14,658 26.2 14,260 28.4
Income from operations 5,957 10.6 4,338 8.6
Interest expense, net 761 1.3 891 1.7
Income before income taxes 5,196 9.3 3,447 6.9
Provision for income taxes 1,878 3.4 1,222 2.5
Net income $ 3,318 5.9 $ 2,225 4.4
Earnings per share
Basic $ 0.38 - $ 0.26 -
Diluted $ 0.36 - $ 0.25 -
Average shares outstanding
Basic 8,781 - 8,521 -
Diluted 9,156 - 8,981 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
3/27/04 12/27/03
Assets: (Unaudited)
Cash and short term investments $ 19,710 $ 25,082
Accounts receivable 51,312 44,127
Inventories 50,601 51,170
Prepaid expenses and other 8,827 8,849
Total current assets 130,450 129,228
Property & equipment 18,264 17,590
Goodwill 28,982 29,125
Other assets 610 663
Total assets $178,306 $176,606
Liability & Shareholders' Equity:
Current portion of long-term debt $ 9,038 $ 8,571
Accounts payable 10,132 10,029
Accrued expenses and other 10,697 12,176
Total current liabilities 29,867 30,776
Long-term debt 34,759 35,213
Deferred income taxes 4,934 4,632
Shareholders' equity 108,746 105,985
Total Liabilities and Equity $178,306 $176,606
Selected Cash Flow Information:
(in thousands)
13 Weeks 13 Weeks
-------- --------
(Unaudited) 3/27/04 3/29/03
Depreciation and amortization $ 1,080 $ 1,192
Capital expenditures 1,762 885