R&B, Inc. Reports Strong Financial Results for the 1999 First Quarter
30 April 1999
R&B, Inc. Reports Strong Financial Results for the 1999 First Quarter; Earnings Advance 15%
COLMAR, Pa., April 30 -- R&B, Inc., reported
strong financial results for the first quarter ended March 27, 1999. The 1999
first quarter is the twelfth consecutive quarter of improved sales and
earnings on a year-over-year basis. Over the past three years, the company
has achieved an average growth rate of 18 percent in sales and 23 percent in
net income.
Net sales for the first quarter of 1999 increased 43 percent to
$55.9 million from $39.0 million for the year-ago quarter. Net income
advanced 15 percent to $1.4 million, or $0.16 per diluted share, from
$1.2 million, or $0.14 per diluted share, for the first quarter of 1998.
Commenting on the company's performance, Richard N. Berman, R&B's
Chairman, President, and Chief Executive Officer, said: "Earnings for the
quarter were consistent with our stated 15 percent growth expectation. Core
business sales were strong across all customer segments and the recent
acquisitions also contributed to the 43 percent sales increase. Earnings were
impacted by higher operating costs reflecting our increased investment in
people, processes, computers and product to support the growth of our
customers and our ability to service them. With these investments now made,
we expect to see improved efficiencies throughout the balance of the year."
Mr. Berman further stated, "The three acquisitions we made in 1998,
including Scan-Tech, Champ Service Line and Allparts, meet the company's
strategic objectives, but are initially expected to drive revenues faster than
earnings. Generally, we find that our acquisitions are earnings neutral for
up to a year because of the investments needed to fully align them with our
focus on product development, sophisticated merchandising systems and value-
added customer service."
"Overall", Mr. Berman concluded, "We are pleased with what we achieved in
the first quarter and expect earnings to continue to grow approximately
15 percent on a quarter-over-quarter basis."
R&B, Inc. is a leading supplier of "hard-to-find" parts, fasteners and
service line products for the automotive aftermarket. R&B's parts are
marketed under more than sixty 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 (1)
(in thousands, except per-share amounts)
13 weeks ended (unaudited) 3/27/99 Pct. 3/28/98 Pct.
Net sales $55,946 100.0 $39,012 100.0
Cost of goods sold 34,261 61.3 23,985 61.5
Gross profit 21,685 38.7 15,027 38.5
Selling, general and
administrative expenses 17,901 32.0 12,235 31.4
Income from operations 3,784 6.7 2,792 7.1
Interest expense, net 1,706 3.0 940 2.4
Income before taxes 2,078 3.7 1,852 4.7
Provision for taxes 727 1.3 676 1.7
Net income 1,351 2.4 1,176 3.0
Basic and diluted earnings
per share $0.16 - $0.14 -
Average shares outstanding
Basic 8,348 - 8,318 -
Diluted 8,381 - 8,409 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (1)
(in thousands)
3/27/99 12/26/98
Assets (unaudited)
Cash and cash equivalents $1,034 $915
Accounts receivable 60,075 55,585
Inventories 79,252 68,401
Prepaid expenses and other 3,105 2,535
Property & equipment 21,003 20,761
Intangible assets 33,256 33,640
Other assets 2,125 2,111
Total assets $199,850 $183,948
Liability & Shareholders' Equity
Current portion of long-term debt $2,663 $3,089
Accounts payable 21,635 18,309
Accrued expenses and other 7,251 8,418
Long-term debt 92,754 80,004
Deferred income taxes 2,514 2,514
Shareholders' equity 73,033 71,614
Total Liabilities and Equity $199,850 $183,948
(1) Totals may not add due to rounding.