PRESS RELEASE 10-27-04
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:
Mathias J. Barton, CFO
(215) 997-1800 x5132
E-mail:MBarton@rbinc.com
R&B, Inc. Reports Sales and Earnings for the Third Quarter Ended
September 25, 2004
Colmar, Pennsylvania (October 27, 2004) -- R&B, Inc., (NASDAQ:RBIN)
today announced financial results for the third quarter ended September 25,
2004. For the third quarter ended September 25, 2004, sales increased 10% to
$64.1 million from $58.2 million in the same period last year. Net income in the
third quarter of 2004 was $4.4 million compared to net income of $3.7 million in
the same period last year. Diluted earnings per share in the third quarter
increased 17% to $0.48 from $0.41 in the same period last year.
For the nine months ended September 25, 2004, sales increased 11% to
$184.4 million from $166.5 million in the same period last year. Diluted
earnings per share for the first nine months of 2004 increased 35% to $1.42
compared to $1.05 in the same period last year. Net income for the first nine
months of 2004 was $13.0 million compared to net income of $9.5 million in the
same period last year.
Volume in 2004 increased primarily as a result of continued sales growth
from recently introduced new products. Results in the third quarter were
negatively impacted by approximately $0.7 million in incremental expediting
costs incurred to maintain satisfactory customer fill rates resulting from
material shortages for certain items and higher than planned demand.
Mr. Richard Berman, Chairman, President and Chief Executive Officer
said, "Our customers are benefitting from the sales growth and industry interest
generated by our Driving ReveNEW program. This initiative demonstrates our
commitment to new products, trade advertising and promotional support designed
to improve our customers' revenues from products that were previously exclusive
to the OE dealer. We are intensifying this effort with a goal of having 15% of
our customer revenue generated from new products. This leadership position will
provide lasting, tangible benefits to our company, our customers and the end
users of our products."
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
Third Quarter (unaudited) 9/25/04 Pct. 9/27/03 Pct.
Net sales $64,135 100.0 $58,183 100.0
Cost of goods sold 40,196 62.7 37,357 64.2
Gross profit 23,939 37.3 20,826 35.8
Selling, general and
administrative expenses 16,315 25.4 14,216 24.4
Income from operations 7,624 11.9 6,610 11.4
Interest expense, net 703 1.1 846 1.5
Income before income taxes 6,921 10.8 5,764 9.9
Provision for income taxes 2,519 3.9 2,047 3.5
Net income $ 4,402 6.9 $ 3,717 6.4
Earnings per share
Basic $ 0.50 - $ 0.43 -
Diluted $ 0.48 - $ 0.41 -
Average shares outstanding
Basic 8,869 - 8,717 -
Diluted 9,188 - 9,098 -
39 Weeks 39 Weeks
-------- --------
Year-to-date (unaudited) 9/25/04 Pct. 9/27/03 Pct.
Net sales $184,417 100.0 $166,523 100.0
Cost of goods sold 114,903 62.3 105,916 63.6
Gross profit 69,514 37.7 60,607 36.4
Selling, general and
administrative expenses 46,819 25.4 43,287 26.0
Income from operations 22,695 12.3 17,320 10.4
Interest expense, net 2,233 1.2 2,621 1.6
Income before income taxes 20,462 11.1 14,699 8.8
Provision for income taxes 7,425 4.0 5,232 3.1
Net income $13,037 7.1 $ 9,467 5.7
Earnings per share
Basic $ 1.48 - $ 1.10 -
Diluted $ 1.42 - $ 1.05 -
Average shares outstanding
Basic 8,826 - 8,610 -
Diluted 9,172 - 9,026 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
9/25/04 12/27/03
Assets: (Unaudited)
Cash and short term investments $ 8,293 $ 25,082
Accounts receivable 57,982 44,127
Inventories 60,907 51,170
Prepaid expenses and other 9,434 8,849
Total current assets 136,616 129,228
Property & equipment 23,424 17,590
Goodwill 29,090 29,125
Other assets 857 663
Total assets $189,987 $176,606
Liability & Shareholders' Equity:
Current portion of long-term debt$ 9,060 $ 8,571
Accounts payable 16,188 10,029
Accrued expenses and other 13,322 12,176
Total current liabilities 38,570 30,776
Long-term debt 26,188 35,213
Deferred income taxes 5,744 4,632
Shareholders' equity 119,485 105,985
Total Liabilities and Equity $189,987 $176,606
Selected Cash Flow Information:
(in thousands) 13 Weeks 39 Weeks
-------- --------
9/25/04 9/27/03 9/25/04 9/27/03
Depreciation and
amortization $ 1,153 $ 933 $ 3,388 $ 3,352
Capital Expenditures $ 4,011 $1,040 $ 9,223 $ 3,343