R&B, Inc. Reports Sales and Earnings for the First Quarter Ended March 26, 2005
COLMAR, Pa., April 29 -- R&B, Inc. today announced financial results for the first quarter ended March 26, 2005. For the first quarter ended March 26, 2005, sales increased 9% to $61.2 million from $56.0 million in the same period last year. Net income in the first quarter of 2005 was $3.5 million compared to net income of $3.3 million in the same period last year. Diluted earnings per share in the first quarter increased 6% to $0.19 from $0.18 in the same period last year. Prior year earnings per share and common stock information have been adjusted to reflect the 2-for-1 stock split that occurred in March of 2005.
The 9% sales increase is primarily the result of increased sales volume from new products. Net income increased at a slower rate than sales due to a 13% increase in selling, general and administrative expenses ("SG&A"). The SG&A increase is the result of the Company's decision to invest additional resources in new product development and promotional support, as well as volume-driven variable expense increases and inflationary increases in wages and other costs.
Mr. Richard Berman, Chairman, President and Chief Executive Officer said, "Sales growth in the first quarter continued as customer acceptance of our new products remains high. We believe that we have an opportunity to further grow our new product sales. As a result, we have set a strategic goal of delivering twice as many new parts in half the time by the end of 2006. We set the foundation for this strategy last year and continued the initiative in the first quarter of 2005 with further investments in personnel and resources. Although these investments have a negative short-term impact on profits, we are confident that this is the right long-term decision for the business."
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)
13 Weeks 13 Weeks
First Quarter (unaudited) 3/26/05 Pct. 3/27/04 Pct.
Net sales $61,231 100.0 $56,005 100.0
Cost of goods sold 38,538 62.9 35,390 63.2
Gross profit 22,693 37.1 20,615 36.8
Selling, general and
administrative expenses 16,623 27.2 14,658 26.2
Income from operations 6,070 9.9 5,957 10.6
Interest expense, net 607 1.0 761 1.3
Income before income taxes 5,463 8.9 5,196 9.3
Provision for income taxes 2,009 3.3 1,878 3.4
Net income $ 3,454 5.6 $ 3,318 5.9
Earnings per share
Basic $ 0.19 - $ 0.19 -
Diluted $ 0.19 - $ 0.18 -
Average shares outstanding
Basic 17,885 - 17,562 -
Diluted 18,449 - 18,312 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
3/26/05 12/25/04
Assets: (Unaudited)
Cash and cash equivalents $ 5,604 $ 7,152
Accounts receivable 56,467 60,962
Inventories 64,385 61,436
Prepaid expenses and other 9,536 10,026
Total current assets 135,992 139,576
Property & equipment 26,518 25,698
Goodwill 29,233 29,410
Other assets 686 720
Total assets $192,429 $195,404
Liability & Shareholders' Equity:
Current portion of long-term debt $ 9,052 $ 9,045
Accounts payable 10,887 15,599
Accrued expenses and other 10,804 13,347
Total current liabilities 30,743 37,991
Long-term debt and other 26,487 25,714
Deferred income taxes 6,890 6,472
Shareholders' equity 128,309 125,227
Total Liabilities and Equity $192,429 $195,404
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited)
3/26/05 3/27/04
Depreciation and amortization $ 1,326 $ 1,080
Capital Expenditures $ 2,160 $ 1,762
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