R&B Reports 1997 Fourth-Quarter and Year-End Financial Results
20 February 1998
R&B Reports Record 1997 Fourth-Quarter and Year-End Financial Results
COLMAR, Pa., Feb. 20 -- R&B, Inc. today
announced record financial results for its fourth quarter and twelve months
that ended December 27, 1997. The 1997 fourth quarter marks the seventh
consecutive quarter of higher revenues and earnings on a year-over-year basis,
and the sixth consecutive quarter in which earnings per share growth has
exceeded 15 percent.
For the fourth quarter of 1997, net sales rose 4.9 percent to
$38.0 million from $36.2 million for the comparable quarter last year. Gross
profit, operating income, and net income all increased as a percentage of
sales compared with the fourth quarter last year. Net income improved to
$1.2 million, a 20.6 percent increase from the $1.0 million reported for last
year's fourth quarter. On a per-share basis, net income for the 1997 fourth
quarter increased to $0.15 per share, compared with $0.12 per share for the
same quarter last year.
For all of 1997, net sales grew 4.1 percent, reaching $153.0 from
$147.0 million posted for 1996. Net income and earnings per share for the
year increased 18.6 percent and 17.9 percent, respectively, to $6.7 million,
or $0.83 per share from $5.7 million, or $0.71 per share posted for 1996.
"Our performance in the fourth quarter marked a strong ending to an
outstanding year," stated Richard Berman, President of R&B. "Fourth-quarter
sales, up almost five percent from last year's fourth quarter, were quite
healthy considering the competitiveness of the automotive market."
"What is more noteworthy, however, are the efficiency improvements we are
achieving and the progress we are making toward our long-term goals,"
continued Mr. Berman. "Efforts to reduce waste and improve productivity in
our packaging operations drove our gross margin to 39.2 percent for the year,
from 38.1 percent last year. Although SG&A rose as a percentage of sales,
during the year we completed important additions to the executive management
team and made significant progress on the new computer implementation
scheduled for the second quarter of 1998. We reduced inventories, improved
turns, announced two acquisitions, and still reduced our long-term debt by
$11.4 million."
Mr. Berman concluded, "Growth in our core business, plus the acquisitions
of Champ and Scan-Tech, have us optimistic for continued progress toward our
goals in 1998. We expect the Champ acquisition, which closes in July, 1998,
to be earnings neutral in 1998, while Scan-Tech, which closed January 1, will
contribute to what we hope will be another strong year."
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."
Visit R&B's Home Page at http://www.rbinc.com.
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Income (A)
(in thousands, except per-share amounts)
13 weeks ended
(unaudited) 12/27/97 Pct. 12/28/96 Pct.
Net sales $37,971 100.0 $36,205 100.0
Cost of goods sold 23,324 61.4 23,184 64.0
Gross profit 14,647 38.6 13,021 36.0
Selling, general and
administrative expenses 11,703 30.8 10,266 28.4
Income from operations 2,944 7.8 2,755 7.6
Interest expense, net 1,076 2.9 1,220 3.4
Income before taxes 1,868 4.9 1,535 4.2
Provision for taxes 698 1.8 565 1.5
Net income $1,170 3.1 $970 2.7
Basic and diluted earnings per share $.15 --- $.12 ---
Average shares outstanding 8,066 --- 8,026 ---
Year Ended: 12/27/97 Pct. 12/28/96 Pct.
Net sales $153,046 100.0 $146,952 100.0
Cost of goods sold 93,032 60.8 90,892 61.9
Gross profit 60,014 39.2 56,060 38.1
Selling, general and
administrative expenses 45,230 29.6 42,816 29.1
Income from operations 14,784 9.6 13,244 9.0
Interest expense, net 4,205 2.7 4,305 2.9
Income before taxes 10,579 6.9 8,939 6.1
Provision for taxes 3,865 2.5 3,277 2.2
Net income $6,714 4.4 $5,662 3.9
Basic and diluted
earnings per share $.83 --- $.71 ---
Average shares outstanding 8,043 --- 7,997 ---
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (A)
(in thousands)
12/27/97 12/28/96
Assets
Cash and cash equivalents $1,601 $923
Accounts receivable 37,536 35,134
Inventories 38,264 41,652
Prepaid expenses and other 3,211 3,354
Property & equipment 16,382 14,567
Intangible assets 29,747 30,850
Other assets 2,530 2,490
Total assets $129,271 $128,970
Liabilities and Shareholders' Equity
Current portion of long-term debt $6,611 $6,066
Accounts payable 8,982 7,146
Accrued expenses and other 7,322 4,483
Long-term debt 44,336 56,248
Deferred income taxes 858 858
Shareholders' equity 61,162 54,169
Total liabilities and equity $129,271 $128,970
(A) Totals may not add due to rounding.
SOURCE R&B, Inc.