R&B, Inc. Reports 2000 Q4 Results and Expectations for
2001
COLMAR, Pa., March 2 R&B, Inc., today
announced financial results for the fourth quarter and year ended December 30,
2000. For the fourth fiscal quarter ended December 30, 2000, sales decreased
7.5% to $49.2 million from $53.2 million in the same period last year. Net
income in the fourth fiscal quarter was $0.2 million, or $0.02 per fully
diluted share, compared to a net loss before restructuring charges of
$1.5 million, or $0.17 per fully diluted share, in the prior year. Fourth
quarter 2000 results were negatively impacted by start up losses from new
initiatives of $0.06 per fully diluted share.
For the year ended December 30, 2000, net sales decreased 17.2% to
$195.9 million from $236.7 million in the same period last year. Net income
in the year ended December 30, 2000 was $3.0 million, or $0.35 per fully
diluted share, compared to net income before restructuring charges of
$3.9 million, or $0.47 per fully diluted share, in the prior year. Net sales
and net income amounts for the year ended December 30, 2000 exclude non-
recurring revenues of $5.5 million and a gain on the sale of the Company's
lift support business of $1.1 million ($0.13 per share).
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 2000 results
are for 14 weeks and fiscal 2000 includes 53 weeks while prior year results
include 13 and 52 weeks, respectively.
The Company also announced that it expects to report fully diluted
earnings per share in the range of $0.40 to $0.45 for the full year 2001.
This estimate is based upon the Company's assumption that revenues in fiscal
2001 will grow 1% to 2%. Operating results in fiscal 2001 are expected to
improve as a result of further cost reduction initiatives, lower interest
costs due to lower borrowing levels and the elimination of losses associated
with new program start ups.
Historically, the Company's business has been seasonal in nature with
lower sales and net income in the first quarter. The Company expects this
trend to continue for the foreseeable future. Net income in the first fiscal
quarter of 2001 is expected to be in the range of $0.01 to $0.03 per fully
diluted share. Earnings per fully diluted share in the second, third and
fourth quarters of fiscal 2001 are expected to increase to approximately $0.10
to $0.15 per quarter as a result of higher sales levels and further reductions
in operating costs.
Mr. Richard Berman, Chairman, President and Chief Executive Officer said,
"We expect difficult automotive aftermarket conditions to continue throughout
2001 and have set our plans accordingly. During fiscal 2000, our focus on
better managing working capital enabled us to significantly strengthen our
balance sheet through the generation of over $30 million in cash flow from
operations. Our focus in 2001 will be on continuing to improve our balance
sheet, further reducing our cost structure to generate earnings growth and
continuing to provide outstanding service and new initiatives to our
customers. We are confident that we will deliver improved results in 2001."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per-share amounts)
Unaudited Unaudited (1)
14 weeks ended 13 weeks ended
12/30/00 Pct. 12/25/99 Pct.
Net sales $49,205 100.0 $53,230 100.0
Cost of goods sold 30,931 62.9 36,252 68.1
Gross profit 18,274 37.1 16,978 31.9
Selling, general and
administrative expenses 16,645 33.8 17,450 32.8
Income(loss)from operations 1,629 3.3 (472) (0.9)
Interest expense, net 1,374 2.8 1,732 3.2
Income(loss)before taxes 255 0.5 (2,204) (4.1)
Provision for taxes 80 0.1 (736) 1.3
Net income (loss) 175 0.4 (1,468) (2.8)
Earnings(loss) per share
Basic $0.02 - $(0.17) -
Diluted $0.02 - $(0.17) -
Average shares outstanding
Basic 8,479 - 8,393 -
Diluted 8,546 - 8,393 -
53 Wks. Ended(2) 52 Wks. Ended(1)
12/30/00 Pct. 12/25/99 Pct.
Net sales $195,930 100.0 $236,689 100.0
Cost of goods sold 123,695 63.1 151,876 64.2
Gross profit 72,235 36.9 84,813 35.8
Selling, general and
administrative expenses 61,560 31.5 71,780 30.3
Income from operations 10,675 5.4 13,033 5.5
Interest expense, net 6,032 3.0 6,961 2.9
Income before taxes 4,643 2.4 6,072 2.6
Provision for taxes 1,625 0.9 2,150 0.9
Net income 3,018 1.5 3,922 1.7
Earnings per share
Basic $0.36 - $0.47 -
Diluted $0.35 - $0.47 -
Average shares outstanding
Basic 8,439 - 8,375 -
Diluted 8,523 - 8,375 -
(1) Excludes restructuring charges of $11.4 million ($7.5 million after
tax or $0.90 per share). A total of $9.8 million was charged to cost of sales
and $1.6 million was charged to selling, general and administrative expenses.
(2) Excludes non-recurring revenues and gain on sale of product line of
$5.5 million and $1.1 million ($0.13 per share), respectively.
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Assets 12/30/00 12/25/99
Cash and cash equivalents $7,553 $ 1,467
Accounts receivable 36,322 49,979
Inventories 50,765 70,272
Prepaid expenses and other 7,561 7,117
Property & equipment 23,332 22,919
Intangible and other assets 34,346 36,250
Total Assets $159,879 $188,004
Liabilities & Shareholders' Equity
Current portion of long-term debt $2,583 $11,910
Accounts payable 8,159 12,867
Accrued expenses and other 8,197 7,446
Long-term debt 65,066 85,283
Deferred income taxes 3,490 2,264
Shareholder's equity 72,384 68,234
Total Liabilities and Equity $159,879 $188,004
