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 26,2005
Colmar, Pennsylvania (April 29, 2005) -- R&B, Inc., (NASDAQ:RBIN)
today announced financialresults for the first quarter ended March 26, 2005.
For the first quarter ended March 26, 2005, salesincreased 9% to $61.2 million
from $56.0 million in the same period last year. Net income in the first
quarter of 2005 was $3.5 million compared to net income of $3.3 million in the
same period last year. Diluted earnings per share in the first quarter
increased 6% to $0.19 from $0.18 in the same period last year. Prior year
earnings per share and common stock information have been adjusted to reflect
the 2-for-1 stock split that occurred in March of 2005.
The 9% sales increase is primarily the result of increased sales
volume from new products. Net income increased at a slower rate than sales due
to a 13% increase in selling, general and administrative expenses ("SG&A"). The
SG&A increase is the result of the Company's decision to invest additional
resources in new product development and promotional support, as well as
volume-driven variable expense increases and inflationary increases in wages
and other costs.
Mr. Richard Berman, Chairman, President and Chief Executive Officer
said, "Sales growth in the first quarter continued as customer acceptance of
our new products remains high. We believe that we have an opportunity to
further grow our new product sales. As a result, we have set a strategic goal
of delivering twice as many new parts in half the time by the end of 2006. We
set the foundation for this strategy last year and continued the initiative in
the first quarter of 2005 with further investments in personnel and resources.
Although these investments have a negative short-term impact on profits, we are
confident that this is the right long-term decision for the business."
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) 3/26/05 Pct. 3/27/04 Pct.
Net sales $61,231 100.0 $56,005 100.0
Cost of goods sold 38,538 62.9 35,390 63.2
Gross profit 22,693 37.1 20,615 36.8
Selling, general and
administrative expenses 16,623 27.2 14,658 26.2
Income from operations 6,070 9.9 5,957 10.6
Interest expense, net 607 1.0 761 1.3
Income before income taxes 5,463 8.9 5,196 9.3
Provision for income taxes 2,009 3.3 1,878 3.4
Net income $ 3,454 5.6 $ 3,318 5.9
Earnings per share
Basic $ 0.19 - $ 0.19 -
Diluted $ 0.19 - $ 0.18 -
Average shares outstanding
Basic 17,885 - 17,562 -
Diluted 18,449 - 18,312 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
3/26/05 12/25/04
Assets: (Unaudited)
Cash and cash equivalents $ 5,604 $ 7,152
Accounts receivable 56,467 60,962
Inventories 64,385 61,436
Prepaid expenses and other 9,536 10,026
Total current assets 135,992 139,576
Property & equipment 26,518 25,698
Goodwill 29,233 29,410
Other assets 686 720
Total assets $192,429 $195,404
Liability & Shareholders' Equity:
Current portion of long-term debt$ 9,052 $ 9,045
Accounts payable 10,887 15,599
Accrued expenses and other 10,804 13,347
Total current liabilities 30,743 37,991
Long-term debt and other 26,487 25,714
Deferred income taxes 6,890 6,472
Shareholders' equity 128,309 125,227
Total Liabilities and Equity $192,429 $195,404
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited)
--------------------
3/26/05 3/27/04
Depreciation and
amortization $ 1,326 $1,080
Capital Expenditures $ 2,160 $1,762