R&B Reports Record 1998 First-Quarter Financial Results; Earnings Advance 22% on 17% Higher Revenues
24 April 1998
R&B Reports Record 1998 First-Quarter Financial Results; Earnings Advance 22% on 17% Higher Revenues
COLMAR, Pa., April 24 -- R&B, Inc. today
announced financial results for its first quarter that ended March 28, 1998.
Net sales for the first quarter of 1998 increased 17.2 percent to
$39.0 million, from $33.3 million for the year-ago quarter. Net income
advanced 22.4 percent to $1.2 million, or $0.14 per share, from $1.0 million,
or $0.12 per share, for the first quarter of 1997.
"This marks our seventh consecutive quarter in which comparable earnings
per share grew by more than 15 percent," commented Richard Berman, President
of R&B. "Once again our earnings increase outpaced our revenue gain,
reflecting not only the leverage we believe we can create, but also
profitability improvements from operational efficiency gains and tight expense
control."
Mr. Berman continued, "Our year-over-year sales increase was across the
board -- from Scan-Tech, which we acquired effective January 1; from our core
hard-to-find parts and fasteners business; and from MPI, which posted another
excellent quarter. As we look to the rest of the year, we are excited by the
possibilities Scan-Tech offers, particularly the cross-marketing opportunities
that exist. Additionally, the acquisition of the Champ Service Line division,
which will be completed in the third quarter, will enable us to enhance our
service line offering, strengthening our position in the market."
Mr. Berman concluded, "We are optimistic that these opportunities,
combined with our continued focus on operational improvement, will enable R&B
to meet our sales and earnings goals."
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)(1)
(in thousands, except per-share amounts)
13 weeks ended 3/28/98 Pct. 3/29/97 Pct.
Net sales $39,012 100.0 $33,299 100.0
Cost of goods sold 23,985 61.5 19,994 60.0
Gross profit 15,027 38.5 13,305 40.0
Selling, general and
administrative expenses 12,235 31.4 10,692 32.1
Income from operations 2,792 7.1 2,613 7.9
Interest expense, net 940 2.4 1,100 3.3
Income before taxes 1,852 4.7 1,513 4.6
Provision for taxes 676 1.7 552 1.6
Net income 1,176 3.0 961 2.9
Basic and diluted earnings
per share $.14 -- $.12 --
Average shares outstanding
Basic 8,318 -- 8,027 --
Diluted 8,408 -- 8,027 --
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets(1)
(in thousands)
(Unaudited)
Assets 3/28/98 12/27/97
Cash and cash equivalents $2,478 $1,601
Accounts receivable 38,099 37,536
Inventories 44,186 38,264
Prepaid expenses and other 1,884 2,647
Property & equipment 16,300 16,382
Intangible assets 32,055 29,747
Other assets 2,471 2,530
Total assets $137,473 $128,707
Liabilities and Shareholders' Equity
Current portion of long-term debt $7,237 $6,611
Accounts payable 12,364 8,982
Accrued expenses and other 8,000 5,846
Long-term debt 43,120 44,336
Deferred income taxes 1,770 1,770
Shareholders' equity 64,982 61,162
Total liabilities and equity $137,473 $128,707
(1) Totals may not add due to rounding.
Visit R&B's Home Page at http://www.rbinc.com
SOURCE R&B, Inc.