R&B, Inc. Reports Improved Financial Results for 2001
First Quarter
COLMAR, Pa., May 4 R&B, Inc., today
announced financial results for the first quarter ended March 31, 2001. For
the first fiscal quarter ended March 31, 2001, sales decreased 3.6% to
$46.1 million from $47.8 million in the same period last year. Net income in
the first fiscal quarter was $0.2 million, or $0.02 per fully diluted share,
compared to net income of $0.1 million, or $0.01 per fully diluted share in
the prior year. Net sales and net income amounts for the first fiscal quarter
ended March 25, 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). In addition, the $47.8 million in first quarter 2000 net sales
mentioned above includes $2.0 million in revenues from lift support sales
prior to the disposition of the business.
The first quarter sales decline is primarily attributable to lower sales
of certain subsidiary product lines. Incremental 2001 revenues from the
Company's third quarter 2000 initiative to supply Wal-Mart with its
"Pik-a-Nut" brand of hardware and general use fasteners were offset by the
loss of fiscal first quarter 2000 net sales of approximately $2.0 million from
of the lift support business that was sold last year. Sales in the Company's
other businesses were generally flat with prior year levels as a result of
continued weak demand in the automotive aftermarket.
The Company continued to experience positive results from its previously
announced working capital reduction initiative. Cash flow from operations was
$4.6 million in the quarter and net debt (total debt less cash on hand)
declined almost $4.0 million to $56.2 million from $60.1 million at year end.
Mr. Richard Berman, Chairman, President and Chief Executive Officer, said,
"We are pleased to report continued progress in reshaping our business.
Excluding non-recurring items, first quarter net income improved over prior
year levels despite a 3.6% drop in sales. We were able to achieve this as a
result of controlled selling, general and administrative expense spending and
lower interest costs as a result of significantly lower debt levels in the
current year. We remain intensely focused on developing a stronger business
that will allow us to quickly react to new opportunities as they are
presented."
The Company also announced that it remains comfortable with a range of
fully diluted earnings per share for the year of between $0.40 and $0.45.
Earnings per fully diluted share in the second quarter of fiscal 2001 are
expected to be between $0.10 to $0.15 as a result of seasonally higher sales
levels and the introduction of new programs to existing customers.
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per-share amounts)
13 weeks ended (Unaudited) 03/31/01 Pct. 3/25/00(A)(B) Pct.
Net sales $46,144 100.0 $47,786 100.0
Cost of goods sold 31,043 67.3 32,029 67.0
Gross profit 15,101 32.7 15,757 33.0
Selling, general and
administrative expenses 13,685 29.6 13,705 28.7
Income from operations 1,416 3.1 2,052 4.3
Interest expense, net 1,128 2.5 1,911 4.0
Income before taxes 288 0.6 141 0.3
Provision for taxes 103 0.2 47 0.1
Net income 185 0.4 94 0.2
Earnings per share:
Basic $0.02 - $0.01 -
Diluted $0.02 - $0.01 -
Average shares outstanding
Basic 8,482 - 8,413 -
Diluted 8,547 - 8,509 -
(A) Excludes non-recurring revenues and gain on sale of product line of
$5.5 million and $1.1 million ($0.13 per share), respectively.
(B) Fiscal 2000 amounts reflect the reclassification of freight expense
from selling, general and administrative expenses to cost of sales as result
of the Company's adoption of EITF No. 00-01 in the fourth quarter of fiscal
2000.
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Assets 03/31/01 12/30/00
Cash and short-term investments $10,535 $7,553
Accounts receivable 36,180 36,322
Inventories 49,353 50,765
Prepaid expenses and other 7,297 7,561
Total current assets 103,365 102,201
Property & equipment 22,426 23,332
Intangible assets 30,804 31,358
Other assets 2,672 2,988
Total Assets $159,267 $159,879
Liabilities & Shareholders' Equity
Current portion of long-term debt $2,152 $2,583
Accounts payable 9,734 8,159
Accrued expenses and other 7,293 8,197
Total current liabilities 19,179 18,939
Long-term debt 64,542 65,066
Deferred income taxes 3,617 3,490
Shareholder's equity 71,929 72,384
Total Liabilities and Equity $159,267 $159,879
