R&B, Inc. Reports Record Results for the 1999 Second Quarter and First Half
30 July 1999
R&B, Inc. Reports Record Results for the 1999 Second Quarter and First Half; EPS Increased 18 Percent in the Quarter and 17 Percent for the First Half
COLMAR, Pa., July 30 -- R&B, Inc.,
reported record sales and earnings for both the 1999 second quarter and first
half. Both the level of sales and earnings were records for any three-month
period, and this also marked R&B's thirteenth consecutive quarter of improved
sales and earnings on a year-over-year basis.
For the second quarter ended June 26, 1999, net sales increased
61.8 percent to $68 million from $42 million for the year ago quarter. Net
income in the second quarter advanced 16.4 percent to $2.8 million from
$2.4 million. Diluted earnings per share rose 17.9 percent to $0.33 from the
prior year's $0.28.
Net sales for the six months ended June 26, 1999, improved
52.9 percent to $124 million from $81 million in 1998's first half. Net
income for the first half of 1999 increased 15.9 percent to $4.1 million over
1998's first half net income of $3.6 million. Diluted earnings per share
advanced 16.7 percent to $0.49 from last year's $0.42.
"Our sales growth of 62 percent in the quarter resulted from a combination
of excellent growth in our existing business and the contribution from
acquisitions made during the last year," said Richard N. Berman, R&B's
Chairman, President, and Chief Executive Officer. "R&B's core business
accounted for nearly a third of the overall increase, our expansion into new
markets including service line, international, salvage yards and hardware
accounted for a third and the remaining increase came from our recent
acquisitions. This exceptionally strong, across-the-board, sales performance
is very encouraging in today's market."
Mr. Berman continued, "We are also pleased with the continuation of a
better than 15 percent increase in earnings which is in line with our
established goals. In addition, we were able to improve operational
efficiencies, and trends are improving in many financial ratios. By the end
of the quarter we had fully restored service levels, overcoming the problems
created by the simultaneous effect of three major projects during the second
half of 1998: the conversion to our new computer system, the Champ
acquisition, and the reorganization of some of our facilities. The benefits
of our investments in people, products, and processes are being realized.
As we go forward we expect to continue to make progress towards the key
goals of our three year strategic plan: to improve inventory turns to three
times per year, to generate a return on equity of at least 15 percent, and
to grow earnings per share by at least 15 percent per year."
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) 6/26/99 Pct. 6/27/98 Pct.
Net sales $68,018 100.0 $42,047 100.0
Cost of goods sold 42,743 62.8 25,448 60.5
Gross profit 25,275 37.2 16,599 39.5
Selling, general and
administrative
expenses 19,193 28.2 11,755 28.0
Income from operations 6,082 9.0 4,844 11.5
Interest expense, net 1,806 2.7 1,083 2.6
Income before taxes 4,276 6.3 3,761 8.9
Provision for taxes 1,496 2.2 1,373 3.2
Net income 2,780 4.1 2,388 5.7
Earnings per share
Basic $0.33 - $0.29 -
Diluted $0.33 - $0.28 -
Average shares
outstanding
Basic 8,368 - 8,329 -
Diluted 8,437 - 8,494 -
26 weeks ended
(unaudited) 6/26/99 Pct. 6/27/98 Pct.
Net sales $123,964 100.0 $81,059 100.0
Cost of goods sold 77,004 62.1 49,433 61.0
Gross profit 46,960 37.9 31,626 39.0
Selling, general and
administrative
expenses 37,094 29.9 23,990 29.6
Income from operations 9,866 8.0 7,636 9.4
Interest expense, net 3,512 2.9 2,023 2.5
Income before taxes 6,354 5.1 5,613 6.9
Provision for taxes 2,223 1.8 2,049 2.5
Net income 4,131 3.3 3,564 4.4
Earnings per share
Basic $0.49 - $0.43 -
Diluted $0.49 - $0.42 -
Average shares
outstanding
Basic 8,358 - 8,317 -
Diluted 8,406 - 8,481 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (1)
(in thousands)
6/26/99 12/26/98
Assets (unaudited)
Cash and cash equivalents $2,157 $915
Accounts receivable 65,993 55,585
Inventories 79,215 68,401
Prepaid expenses and other 3,955 2,535
Property & equipment 22,836 20,761
Intangible and other assets 36,261 35,751
Total assets $210,417 $183,948
Liability & Shareholders' Equity
Current portion of long-term debt $2,116 $3,089
Accounts payable 25,751 18,309
Accrued expenses and other 8,389 8,418
Long-term debt 95,701 80,004
Deferred income taxes 2,514 2,514
Shareholders' equity 75,946 71,614
Total Liabilities and Equity $210,417 $183,948
(1) Totals may not add due to rounding.