R&B Reports Record 1997 Q3 Results
24 October 1997
R&B Reports Record 1997 Third-Quarter and First Nine-Month Financial Results
COLMAR, Pa., Oct. 24 -- R&B, Inc. today
announced record financial results for its third quarter and first nine months
that ended September 27, 1997. The 1997 third quarter marks the sixth
consecutive quarter of higher revenues and earnings on a year-over-year basis.
For the third quarter of 1997, net sales increased 5.9 percent to $40.8
million from $38.5 million for the comparable quarter last year. Gross,
operating, and net profit all increased as a percentage of sales compared with
the third quarter last year. Net income improved to $2.3 million, a 16.1
percent increase from the $2.0 million reported for last year's third quarter.
On a per-share basis, net income for the 1997 third quarter increased to an
all-time quarterly high of $0.29 per share, compared with $0.25 per share for
the same quarter last year.
"Our third-quarter financial performance, particularly our sales growth,
was all the more impressive in light of soft demand in the automotive
aftermarket overall and the previously disclosed reductions in certain
business volume," commented Richard Berman, President of R&B. "Higher order
volume from our largest customers and strong sales at our MPI subsidiary
fueled the growth and put us ahead of our own expectations for the quarter.
Our on-going efforts to reduce product costs through improved sourcing, and
our aggressive expense management continues to yield higher earnings growth on
relatively modest sales increases."
For the first nine months of 1997, net sales advanced 3.9 percent to
$115.1 million from $110.7 million for the corresponding period last year.
Net income rose 18.2 percent to $5.5 million, or $0.69 per share, from
$4.7 million, or $0.59 per share, for the first nine months of 1996.
Mr. Berman continued, "Demonstrating the effectiveness of our business
strategy, our nine-month results are in-line with our long-term goals of
leveraging continued efficiency improvements and paring unnecessary costs to
achieve earnings growth that exceeds our sales growth. As we look to the
fourth quarter of 1997 and beyond, we are confident that we can maintain the
pattern of profitable growth established in the first three quarters of 1997."
R&B, Inc. is a leading supplier of "hard-to-find" parts and fasteners for
the automotive aftermarket. R&B's parts are marketed under more than fifty
proprietary brand names through its Motormite and Dorman divisions, as well as
under the private labels of automobile manufacturers, parts manufacturers, and
national warehouse distributors.
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-
Investment Considerations."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Income (unaudited) (A)
(in thousands, except per-share amounts)
13 weeks ended
(unaudited) 9/27/97 Pct. 9/28/96 Pct.
Net sales $40,817 100.0 $38,529 100.0
Cost of goods sold 24,669 60.4 28,416 60.8
Gross profit 16,148 39.6 15,113 39.2
Selling, general and
administrative expenses 11,525 28.3 10,842 28.2
Income from operations 4,623 11.8 4,271 11.0
Interest expense, net 974 2.4 1,095 2.8
Income before taxes 3,649 8.9 3,176 8.2
Provision for taxes 1,319 3.2 1,169 3.0
Net income $2,330 5.7 $2,007 5.2
Earnings per share $.29 -- $.25 --
Average shares outstanding 8,031 -- 7,997 --
26 weeks ended
(unaudited) 9/27/97 Pct. 9/28/96 Pct.
Net sales $115,075 100.0 $110,747 100.0
Cost of goods sold 69,708 60.6 67,708 61.1
Gross profit 45,367 39.4 43,039 38.9
Selling, general and
administrative expenses 33,527 29.1 32,550 29.4
Income from operations 11,840 10.3 10,489 9.5
Interest expense, net 3,129 2.7 8,085 2.8
Income before taxes 8,711 7.6 7,404 6.7
Provision for taxes 3,167 2.8 2,712 2.4
Net income $5,544 4.8 $4,692 4.2
Earnings per share $.69 -- $.59 --
Average shares outstanding 8,028 -- 7,988 --
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (A)
(in thousands)
9/27/97 12/28/96
(Unaudited)
Cash and cash equivalents $208 $923
Accounts receivable 41,548 35,134
Inventories 39,201 41,652
Prepaid expenses and other 3,209 3,354
Property & equipment 15,748 14,567
Intangible assets 30,023 30,850
Other assets 2,409 2,490
Total assets $132,346 $128,970
Current portion of long-term debt $6,475 $6,066
Accounts payable 10,996 7,146
Accrued expenses and other 6,149 4,483
Long-term debt 47,876 56,248
Deferred income taxes 858 858
Shareholders' equity 59,992 54,169
Total liabilities and equity $132,346 $128,970
(A) Totals may not add due to rounding.
Visit R&B's home page at http://www.rbinc.com .
SOURCE R&B, Inc.