EARNINGS RELEASE
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.dormanproducts.com
(215) 997-1800 x 5132 E-mail:
MBarton@dormanproducts.com
R&B, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended
December 31, 2005
Colmar, Pennsylvania (February 23, 2006) -- R&B, Inc., (NASDAQ:RBIN)
today announced financial results for the fourth quarter and year ended December
31, 2005. The Company operates on a fifty-two, fifty-three week period ending on
the last Saturday of the calendar year. As a result, fourth quarter 2005 results
are for 14 weeks and fiscal 2005 includes 53 weeks while prior year results are
for 13 and 52 weeks, respectively.
Sales increased 14% to $74.5 million from $65.1 million in the same
period last year. Net income in the fourth quarter of 2005 was $4.4 million
compared to net income of $4.0 million in the same period last year. Diluted
earnings per share in the fourth quarter of 2005 increased 9% to $0.24 from
$0.22 in the same period last year.
For the year ended December 31, 2005, sales increased 11% to $278.1
million from $249.5 million in the same period last year. Net income for both
the year ended December 31, 2005 and the prior year was $17.1 million. Diluted
earnings per share for both the year ended December 31, 2005 and the prior year
was $0.93.
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.
Revenues in 2005 are up primarily as a result of continued growth in
new product sales. An additional week's sales in the fourth quarter and year
ended December 31, 2005 and the June 2005 acquisition of The Automotive
Edge/Hermoff ("Hermoff") also contributed to reported sales growth. These items
accounted for 4% and 1% of the sales growth in the fourth quarter and year ended
December 31, 2005, respectively. Gross profit margins declined as a result of a
continued mix shift to lower margin automotive hard parts.
Mr. Richard Berman, Chairman, President and Chief Executive Officer
said, "Our double- digit organic sales growth was driven by new products and
continued strong levels of customer retention. We remain committed to our
strategy of providing innovative new product solutions which are valuable
contributors to the success of our customers. Feedback from our recent new
product introductions has been encouraging, and our new branding strategy
'DORMAN, NEW SINCE 1918' was well received at AAPEX."
R&B Inc., is a leading supplier of OE Dealer "Exclusive" automotive
replacement parts, automotive hardware, brake products, and household hardware
to the Automotive Aftermarket and Mass Merchandise markets. Dorman automotive
parts and hardware are marketed under the OE Solutions(TM), HELP!(R),
AutoGrade(TM), First Stop(TM), Conduct-Tite(R), and Pik-A-Nut(R) brand names.
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 "Item1A - Risk
Factors."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
14 Weeks 13 Weeks
Fourth Quarter (unaudited) 12/31/05 Pct. 12/25/04 Pct.
Net sales $74,492 100.0 $65,109 100.0
Cost of goods sold 49,042 65.8 42,101 64.7
Gross profit 25,450 34.2 23,008 35.3
Selling, general and
administrative expenses 17,771 23.9 16,065 24.6
Income from operations 7,679 10.3 6,943 10.7
Interest expense, net 654 0.9 620 1.0
Income before income taxes 7,025 9.4 6,323 9.7
Provision for income taxes 2,643 3.5 2,279 3.5
Net income $ 4,382 5.9 $ 4,044 6.2
Earnings per share
Basic $ 0.24 - $ 0.23 -
Diluted $ 0.24 - $ 0.22 -
Average shares outstanding
Basic 17,913 - 17,804 -
Diluted 18,394 - 18,424 -
53 Weeks 52 Weeks
Fiscal Year 12/31/05 Pct. 12/25/04 Pct.
Net sales $278,117 100.0 $249,526 100.0
Cost of goods sold 179,253 64.5 157,004 62.9
Gross profit 98,864 35.5 92,522 37.1
Selling, general and
administrative expenses 69,088 24.8 62,884 25.2
Income from operations 29,776 10.7 29,638 11.9
Interest expense, net 2,615 0.9 2,853 1.2
Income before income taxes 27,161 9.8 26,785 10.7
Provision for income taxes 10,084 3.7 9,704 3.9
Net income $17,077 6.1 $17,081 6.8
Earnings per share
Basic $ 0.95 - $ 0.97 -
Diluted $ 0.93 - $ 0.93 -
Average shares outstanding
Basic 17,914 - 17,690 -
Diluted 18,437 - 18,368 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
12/31/05 12/25/04
Assets:
Cash and short term investments $ 2,944 $ 7,152
Accounts receivable 64,778 60,962
Inventories 75,535 61,436
Prepaid expenses and other 11,105 10,026
Total current assets 154,362 139,576
Property & equipment 27,473 25,698
Goodwill 29,617 29,410
Other assets 704 720
Total assets $212,156 $195,404
Liability & Shareholders' Equity:
Current portion of long-term debt$ 8,571 $ 9,045
Accounts payable 14,739 15,599
Accrued expenses and other 15,240 13,347
Total current liabilities 38,550 37,991
Long-term debt and other 27,869 25,714
Deferred income taxes 7,195 6,472
Shareholders' equity 138,542 125,227
Total Liabilities and Equity $212,156 $195,404
Selected Cash Flow Information:
(in thousands) Quarter Ended(unaudited) Year Ended
------------------------ ----------
12/31/05 12/25/04 12/31/05 12/25/04
Depreciation and
amortization $ 1,580 $1,157 $ 5,774 $ 4,545
Capital Expenditures $ 1,698 $3,578 $ 7,220 $12,801