R&B, Inc. Reports Sales and Earnings for the Third Quarter Ended September 25, 2004
COLMAR, Pa., Oct. 27, 2004 -- R&B, Inc. today announced financial results for the third quarter ended September 25, 2004. For the third quarter ended September 25, 2004, sales increased 10% to $64.1 million from $58.2 million in the same period last year. Net income in the third quarter of 2004 was $4.4 million compared to net income of $3.7 million in the same period last year. Diluted earnings per share in the third quarter increased 17% to $0.48 from $0.41 in the same period last year.
For the nine months ended September 25, 2004, sales increased 11% to $184.4 million from $166.5 million in the same period last year. Diluted earnings per share for the first nine months of 2004 increased 35% to $1.42 compared to $1.05 in the same period last year. Net income for the first nine months of 2004 was $13.0 million compared to net income of $9.5 million in the same period last year.
Volume in 2004 increased primarily as a result of continued sales growth from recently introduced new products. Results in the third quarter were negatively impacted by approximately $0.7 million in incremental expediting costs incurred to maintain satisfactory customer fill rates resulting from material shortages for certain items and higher-than-planned demand.
Mr. Richard Berman, Chairman, President and Chief Executive Officer, said, "Our customers are benefiting from the sales growth and industry interest generated by our Driving ReveNEW program. This initiative demonstrates our commitment to new products, trade advertising and promotional support designed to improve our customers' revenues from products that were previously exclusive to the OE dealer. We are intensifying this effort with a goal of having 15% of our customer revenue generated from new products. This leadership position will provide lasting, tangible benefits to our company, our customers and the end users of our products."
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.
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
13 Weeks 13 Weeks
Third Quarter (unaudited) 9/25/04 Pct. 9/27/03 Pct.
Net sales $64,135 100.0 $58,183 100.0
Cost of goods sold 40,196 62.7 37,357 64.2
Gross profit 23,939 37.3 20,826 35.8
Selling, general and
administrative expenses 16,315 25.4 14,216 24.4
Income from operations 7,624 11.9 6,610 11.4
Interest expense, net 703 1.1 846 1.5
Income before income taxes 6,921 10.8 5,764 9.9
Provision for income taxes 2,519 3.9 2,047 3.5
Net income $4,402 6.9 $3,717 6.4
Earnings per share
Basic $0.50 - $0.43 -
Diluted $0.48 - $0.41 -
Average shares outstanding
Basic 8,869 - 8,717 -
Diluted 9,188 - 9,098 -
39 Weeks 39 Weeks
Year-to-date (unaudited) 9/25/04 Pct. 9/27/03 Pct.
Net sales $184,417 100.0 $166,523 100.0
Cost of goods sold 114,903 62.3 105,916 63.6
Gross profit 69,514 37.7 60,607 36.4
Selling, general and
administrative expenses 46,819 25.4 43,287 26.0
Income from operations 22,695 12.3 17,320 10.4
Interest expense, net 2,233 1.2 2,621 1.6
Income before income taxes 20,462 11.1 14,699 8.8
Provision for income taxes 7,425 4.0 5,232 3.1
Net income $13,037 7.1 $9,467 5.7
Earnings per share
Basic $1.48 - $1.10 -
Diluted $1.42 - $1.05 -
Average shares outstanding
Basic 8,826 - 8,610 -
Diluted 9,172 - 9,026 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
9/25/04 12/27/03
Assets: (Unaudited)
Cash and short term investments $8,293 $25,082
Accounts receivable 57,982 44,127
Inventories 60,907 51,170
Prepaid expenses and other 9,434 8,849
Total current assets 136,616 129,228
Property & equipment 23,424 17,590
Goodwill 29,090 29,125
Other assets 857 663
Total assets $189,987 $176,606
Liability & Shareholders' Equity:
Current portion of long-term debt $9,060 $8,571
Accounts payable 16,188 10,029
Accrued expenses and other 13,322 12,176
Total current liabilities 38,570 30,776
Long-term debt 26,188 35,213
Deferred income taxes 5,744 4,632
Shareholders' equity 119,485 105,985
Total Liabilities and Equity $189,987 $176,606
Selected Cash Flow Information:
(in thousands) 13 Weeks 39 Weeks
9/25/04 9/27/03 9/25/04 9/27/03
Depreciation and
amortization $1,153 $933 $3,388 $3,352
Capital Expenditures $4,011 $1,040 $9,223 $3,343