R&B, Inc. Reports Sales and Earnings for the First Quarter Ended March 27, 2004
COLMAR, Pa., April 30 -- R&B, Inc. today announced financial results for the first quarter ended March 27, 2004. For the first quarter ended March 27, 2004, sales increased 11% to $56.0 million from $50.3 million in the same period last year. Net income in the first quarter of 2004 was $3.3 million compared to net income of $2.2 million in the same period last year. Diluted earnings per share in the first quarter increased 44% to $0.36 from $0.25 in the same period last year.
Sales volume in 2004 increased as a result of continued sales growth from products introduced within the last twelve months, shipments to a new customer for the Company's Pik-A-Nut home hardware business and a lower level of sales in the first quarter of 2003 due to inventory reduction initiatives by certain customers. The favorable effects of foreign currency exchange resulted in a 2% year over year increase in sales. While sales levels are expected to remain strong, management does not expect to achieve the same level of year- over-year profit increases in the second through fourth quarters of 2004 as compared to the first quarter.
Mr. Richard Berman, Chairman, President and Chief Executive Officer, said, "Our strong first quarter sales growth reflects the continued success of our new products. We are committed to maintaining our leadership position in the aftermarket. We recently introduced our `Driving ReveNEW' initiative which is focused on growing revenue from `new to the aftermarket' products. Our next major new product initiatives are the introduction of a line of new four wheel drive actuators and motors and the expansion of our line of plastic intake manifolds with several new product numbers that we expect to be strong sellers."
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)
First Quarter 13 Weeks 13 Weeks
(unaudited) 3/27/04 Pct. 3/29/03 Pct.
Net sales $56,005 100.0 $50,272 100.0
Cost of goods sold 35,390 63.2 31,674 63.0
Gross profit 20,615 36.8 18,598 37.0
Selling, general and
administrative
expenses
14,658 26.2 14,260 28.4
Income from operations 5,957 10.6 4,338 8.6
Interest expense, net 761 1.3 891 1.7
Income before
income taxes 5,196 9.3 3,447 6.9
Provision for income
taxes 1,878 3.4 1,222 2.5
Net income $ 3,318 5.9 $ 2,225 4.4
Earnings per share
Basic $0.38 - $0.26 -
Diluted $0.36 - $0.25 -
Average shares outstanding
Basic 8,781 - 8,521 -
Diluted 9,156 - 8,981 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
3/27/04 12/27/03
Assets: (Unaudited)
Cash and short term investments $ 19,710 $ 25,082
Accounts receivable 51,312 44,127
Inventories 50,601 51,170
Prepaid expenses and other 8,827 8,849
Total current assets 130,450 129,228
Property & equipment 18,264 17,590
Goodwill 28,982 29,125
Other assets 610 663
Total assets $178,306 $176,606
Liability & Shareholders' Equity:
Current portion of long-term debt $ 9,038 $8,571
Accounts payable 10,132 10,029
Accrued expenses and other 10,697 12,176
Total current liabilities 29,867 30,776
Long-term debt 34,759 35,213
Deferred income taxes 4,934 4,632
Shareholders' equity 108,746 105,985
Total Liabilities and Equity $178,306 $176,606
Selected Cash Flow Information:
(in thousands)
13 Weeks 13 Weeks
(Unaudited) 3/27/04 3/29/03
Depreciation and amortization $ 1,080 $ 1,192
Capital expenditures 1,762 885