Parts Company R&B, Inc. Reports Sales and Earnings
COLMAR, Pa., Feb. 25, 2005 -- R&B, Inc. today announced financial results for the fourth quarter and year ended December 25, 2004. The Company also announced a 2-for-1 stock split on its common stock, payable in the form of a stock dividend of one share for each share held.
For the fourth quarter ended December 25, 2004, sales increased 17% to $65.1 million from $55.6 million in the same period last year. Net income in the fourth quarter of 2004 was $4.0 million compared to net income of $3.8 million in the same period last year. Diluted earnings per share in the fourth quarter increased 5% to $0.44 from $0.42 in the same period last year.
For the year ended December 25, 2004, sales increased 12% to $249.5 million from $222.1 million in the same period last year. Diluted earnings per share for the year ended December 25, 2004 increased 27% to $1.86 compared to $1.47 in the same period last year. Net income for the year ended December 25, 2004 was $17.1 million compared to net income of $13.3 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 fourth quarter were negatively impacted by low margins on two large product line updates and approximately $0.6 million in incremental expediting costs incurred to maintain satisfactory customer fill rates resulting from material shortages for certain items and higher than planned demand. Total incremental expediting costs in 2004 were $1.3 million. The Company does not expect to incur further costs in 2005 as inventory levels and fill rates had returned to acceptable levels by year end.
Mr. Richard Berman, Chairman, President and Chief Executive Officer, said, "Our success in 2004 is the direct result of our customers embracing the benefits of new products as a comprehensive sales tool capable of delivering double-digit sales growth. We are particularly enthusiastic about the recent performance of our Dorman OE Solutions line of hard parts. Throughout 2004 we have continued to invest in our product development capabilities, and we plan to invest further in 2005. Our goal is to double our current level of new product development and promotional support by the end of 2006."
In connection with the Company's 2-for-1 stock split, stockholders as of the close of business on March 15, 2005 will be issued one additional share for each share of common stock held on the record date, with a payment date of March 28, 2005.
Mr. Berman said, "This stock split demonstrates our commitment to increasing shareholder value. We believe that this stock split will broaden our base of investors and improve the trading liquidity of our stock."
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
Fourth Quarter (unaudited) 12/25/04 Pct. 12/27/03 Pct.
Net sales $65,109 100.0 $55,560 100.0
Cost of goods sold 42,101 64.7 33,959 61.1
Gross profit 23,008 35.3 21,601 38.9
Selling, general and
administrative expenses 16,065 24.6 14,869 26.8
Income from operations 6,943 10.7 6,732 12.1
Interest expense, net 620 1.0 755 1.3
Income before income taxes 6,323 9.7 5,977 10.8
Provision for income taxes 2,279 3.5 2,140 3.9
Net income $4,044 6.2 $3,837 6.9
Earnings per share
Basic $0.45 - $0.44 -
Diluted $0.44 - $0.42 -
Average shares outstanding
Basic 8,902 - 8,757 -
Diluted 9,212 - 9,117 -
52 Weeks 52 Weeks
Fiscal Year 12/25/04 Pct. 12/27/03 Pct.
Net sales $249,526 100.0 $222,083 100.0
Cost of goods sold 157,004 62.9 139,875 63.0
Gross profit 92,522 37.1 82,208 37.0
Selling, general and
administrative expenses 62,884 25.2 58,156 26.2
Income from operations 29,638 11.9 24,052 10.8
Interest expense, net 2,853 1.2 3,376 1.5
Income before income taxes 26,785 10.7 20,676 9.3
Provision for income taxes 9,704 3.9 7,372 3.3
Net income $17,081 6.8 $13,304 6.0
Earnings per share
Basic $1.93 - $1.54 -
Diluted $1.86 - $1.47 -
Average shares outstanding
Basic 8,845 - 8,647 -
Diluted 9,184 - 9,050 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
12/25/04 12/27/03
Assets:
Cash and short term investments $7,152 $25,082
Accounts receivable 60,962 44,127
Inventories 61,436 51,170
Prepaid expenses and other 10,026 8,849
Total current assets 139,576 129,228
Property & equipment 25,698 17,590
Goodwill 29,410 29,125
Other assets 720 663
Total assets $195,404 $176,606
Liability & Shareholders' Equity:
Current portion of long-term debt $9,045 $8,571
Accounts payable 15,599 10,029
Accrued expenses and other 13,347 12,176
Total current liabilities 37,991 30,776
Long-term debt 25,714 35,213
Deferred income taxes 6,472 4,632
Shareholders' equity 125,227 105,985
Total Liabilities and Equity $195,404 $176,606
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited) 52 Weeks
12/25/04 12/27/03 12/25/04 12/27/03
Depreciation and
amortization $1,157 $1,288 $4,545 $4,640
Capital Expenditures $3,578 $2,255 $12,801 $5,598
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