R&B Reports Record 1997 Second-Quarter and Six-Month Financial Results
25 July 1997
R&B Reports Record 1997 Second-Quarter and Six-Month Financial ResultsCOLMAR, Pa., July 25 -- R&B, Inc. today announced record financial results for its second quarter and first half that ended June 28, 1997. Net sales for the second quarter of 1997 increased 3.2 percent to $41.0 million from $39.7 million for the same quarter last year. Net income advanced 17.2 percent to $2.3 million, or $0.28 per share, from $1.9 million, or $0.24 per share, for the second quarter of 1996. Gross, operating, pretax and net margins all set new records for performance. For the first half of 1997, net sales advanced to $74.3 million, a 2.8 percent increase compared with $72.2 million for the corresponding period last year. First-half net income improved 19.7 percent to $3.2 million, or $0.40 per share, from $2.7 million, or $0.34 per share, for the first half of 1996. "We are pleased that we were able to improve our bottom line performance for the second quarter and first half given the modest net sales increase, which was in line with our expectations and the overall growth of the automotive aftermarket industry," stated Richard Berman, President of R&B. "Our efforts to streamline operations continue to produce incremental returns on sales and, in turn, better margins. Additionally, our efficiencies and improvements in working capital have allowed us to reduce debt by $7 million, which is well ahead of plan for 1997 and should enhance earnings for the second half of the year." Mr. Berman continued, "Despite the overall sluggishness of the automotive aftermarket, we are confident we can remain on plan for the balance of the year. We continue to improve our operations to realize greater efficiencies in every aspect of our business. The strong momentum we established in the first half of the year bolsters our optimistic outlook for the balance of 1997, which should be a pivotal year in our efforts to restore amore consistent pattern of profitable growth to R&B." R&B, Inc. is a leading supplier of "hard-to-find" parts and fasteners for the automotive aftermarket. R&B's parts are marketed under more than fifty proprietary brand names, through its Motormite and Dorman divisions, as well as under the private labels of automobile manufacturers, parts manufacturers, and national warehouse distributors. 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- Investment Considerations." R&B, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)(A) (in thousands, except per-share amounts) 13 weeks ended (unaudited) 6/28/97 Pct. 6/29/96 Pct. Net sales $40,959 100.0 $39,678 100.0 Cost of goods sold 25,045 61.1 24,510 61.8 Gross profit 15,914 38.9 15,168 38.2 Selling, general and administrative expenses 11,310 27.6 11,125 28.0 Income from operations 4,604 11.3 4,043 10.2 Interest expense, net 1,055 2.6 1,023 2.6 Income before taxes 3,549 8.7 3,020 7.6 Provision for taxes 1,296 3.2 1,098 2.8 Net income $2,253 5.5 $1,922 4.8 Earnings per share $.28 --- $.24 --- Average shares outstanding 8,026 --- 7,983 --- 26 weeks ended (unaudited) 6/28/97 Pct. 6/29/96 Pct. Net sales $74,258 100.0 $72,218 100.0 Cost of goods sold 45,039 60.7 44,292 61.3 Gross profit 29,219 39.3 27,926 38.7 Selling, general and administrative expenses 22,002 29.6 21,708 30.1 Income from operations 7,217 9.7 6,218 8.6 Interest expense, net 2,155 2.9 1,990 2.8 Income before taxes 5,062 6.8 4,228 5.8 Provision for taxes 1,848 2.5 1,543 2.1 Net income $3,214 4.3 $2,685 3.7 Earnings per share $.40 --- $.34 --- Average shares outstanding 8,026 --- 7,983 --- R&B, INC. AND SUBSIDIARIES Consolidated Balance Sheets(A) (in thousands) 6/28/97 12/28/96 (Unaudited) Cash and cash equivalents $1,932 $923 Accounts receivable 36,806 35,134 Inventories 37,808 41,652 Prepaid expenses and other 3,187 3,354 Property & equipment 15,024 14,567 Intangible assets 30,298 30,850 Other assets 2,486 2,490 Total assets $127,541 $128,970 Current portion of long-term debt $6,338 $6,066 Accounts payable 8,319 7,146 Accrued expenses and other 5,547 4,483 Long-term debt 49,095 56,248 Deferred income taxes 858 858 Shareholders' equity 57,384 54,169 Total liabilities and equity $127,541 $128,970 (A) Totals may not add due to rounding. Visit R&B's Home Page at http://www.rbinc.com SOURCE R&B, Inc.