R&B, Inc. Reports Financial Results for the 2000 First Quarter
5 May 2000
R&B, Inc. Reports Financial Results for the 2000 First Quarter:
- Completes Restructuring Plan Ahead of Schedule
- Improves Working Capital
COLMAR, Pa., May 5 R&B, Inc., today
announced financial results for the first quarter ended March 25, 2000 and the
completion of its restructuring plan ahead of schedule.
In January, the Company announced a restructuring plan designed to
consolidate a warehouse, reduce overall headcount and eliminate
underperforming products. The restructuring plan was completed ahead of
schedule, and will result in a lower cost structure and a lower sales base.
The flat automotive aftermarket and the Company's efforts under its
restructuring plan to eliminate unprofitable products in its core business and
launch fewer but more profitable programs, resulted in a net sales decline of
5% to $53.2 million in the first quarter of 2000 from $55.9 million from the
same period last year. Despite this drop in sales, initial savings generated
from the restructuring plan have resulted in a significant improvement in net
income on a quarter over quarter basis. On a year over year basis, net income
for the first quarter of 2000 was $1.2 million, or $0.14 per diluted share,
compared to $1.4 million, or $0.16 per diluted share, for the first quarter of
1999. Net income in the first quarter of 2000 includes a non-recurring gain
on the sale of the Company's lift support business of approximately
$1.1 million, after tax.
The Company's previously announced working capital reduction initiative
resulted in decreases in accounts receivable and inventory of $7.3 million and
$10.2 million, respectively during the first quarter of 2000. These
reductions enabled the Company to reduce total outstanding borrowings from
$97.2 million at December 25, 1999 to $81.6 million at March 25, 2000.
Mr. Richard Berman, Chairman, President and CEO said: "The overall results
for the quarter were in line with our expectations and show considerable
improvement over the fourth quarter of 1999. We reported a small profit in
the quarter before the line sale gain despite lower sales levels as a result
of lower operating costs brought about by our restructuring program. I am
happy to report that we have completed the last phase of the restructuring
plan announced earlier this year. As a result, we will begin to realize the
full benefit from a lower cost structure in our core business by the end of
the second quarter of 2000."
Mr. Berman further stated, "We also realized significant benefits from
better working capital management during the first quarter of 2000. As a
result, we are happy to report that we generated over $15 million in cash flow
from operations during the quarter. Our efforts to better manage working
capital are ongoing, and we are confident that further balance sheet
improvements will be made throughout the remainder of the year."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Income (A)
(in thousands, except per-share amounts)
13 weeks ended (unaudited) 3/25/00 Pct. 3/27/99 Pct.
Net sales $53,246 100.0 $55,946 100.0
Cost of goods sold 34,637 65.1 34,261 61.2
Gross profit 18,609 34.9 21,685 38.8
Selling, general and
administrative expenses 14,924 28.0 17,901 32.0
Income from operations 3,685 6.9 3,784 6.8
Interest expense, net 1,911 3.6 1,706 3.0
Income before taxes 1,774 3.3 2,078 3.7
Provision for taxes 603 1.1 727 1.3
Net income 1,171 2.2 1,351 2.4
Basic and diluted earnings per
share $0.14 - $0.16 -
Average shares outstanding
Basic 8,413 - 8,348 -
Diluted 8,509 - 8,381 -
(A)Includes non-recurring gain of sale of product line of $1.1 million
($0.13 per share)
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (A)
(in thousands)
3/25/00 12/25/99
Assets (unaudited)
Cash and cash equivalents $799 $1,467
Accounts receivable 42,700 49,979
Inventories 60,108 70,272
Prepaid expenses and other 10,485 7,117
Property & equipment 21,895 22.919
Intangible assets 32,797 33,212
Other assets 3,433 3,038
Total assets $172,217 $188,004
Liability & Shareholders' Equity
Current portion of long-term debt $3,134 $11,910
Accounts payable 11,378 12,867
Accrued expenses and other 7,573 7,446
Long-term debt 78,464 85,283
Deferred income taxes 2,264 2,264
Shareholders' equity 69,404 68,234
Total Liabilities and Equity $172,217 $188,004
(A) Totals may not add due to rounding.