NEWS RELEASE
R&B, Inc.
Corporate Headquarters:
R&B, Inc.
3400 East Walnut Street
Colmar, Pennsylvania 18915
Fax: (215) 997-8577
For Further Information Contact: Visit our Home Page:
Mathias J. Barton, CFO www.rbinc.com
(215) 997-1800 x 5132 E-mail: MBarton@rbinc.com
R&B, Inc. Reports Sales and Earnings for the Third Quarter Ended September 24,
2005
Colmar, Pennsylvania (October 28, 2005) -- R&B, Inc., (NASDAQ:RBIN)
today announced financial results for the third quarter ended September 24,
2005. Sales increased 15% to $73.8 million from $64.1 million in the same
period last year. Net income in the third quarter of 2005 was $4.6 million
compared to net income of $4.4 million in the same period last year. Diluted
earnings per share in the third quarter of 2005 increased 4% to $0.25 from
$0.24 in the same period last year.
For the nine months ended September 24, 2005, sales increased 10% to
$203.6 million from $184.4 million in the same period last year. Net income for
the first nine months of 2005 was $12.7 million compared to net income of $13.0
million in the same period last year. Diluted earnings per share for the first
nine months of 2005 decreased 3% to $0.69 compared to $0.71 in the same period
last year.
Prior year earnings per share and common stock information have been
adjusted to reflect the 2-for-1 stock split that occurred in March of 2005.
In June 2005, the Company acquired The Automotive Edge/Hermoff
("Hermoff"), a company which manufactures and distributes exhaust manifolds,
catalytic converters and related exhaust components. Excluding Hermoff, sales
increased 13% and 10%, in the three and nine months ended September 24, 2005,
respectively. Sales in 2005 are up primarily as a result of continued growth in
new product sales. Gross profit margins declined as a result of a continued mix
shift to lower margin automotive hard parts and the impact of returns
associated with line updates during the quarter. SG&A spending increased as a
result of volume-driven variable expense increases and the Company's
previously-announced decision to invest additional resources in new product
development and promotional support. SG&A costs declined as a percentage of
sales in both the three and nine periods ended September 24, 2005.
Mr. Richard Berman, Chairman, President and Chief Executive Officer
said, "Our 13% third quarter organic sales growth affirms the success of our
recent new product introductions. We believe that our recent investments in new
product development, although they carry with them a short term negative impact
on earnings, will provide further sales and profit growth opportunities for our
customers and our business. We are enthusiastic about the 2005 AAPEX show where
we will introduce our new corporate brand strategy and logo - "DORMAN, NEW
SINCE 1918", with a record number of new products, new solutions and new
opportunities for our customers."
R&B, Inc. is a leading supplier of OE Dealer "Exclusive" automotive
replacement parts, automotive hardware and brake products to the automotive
aftermarket and household hardware to the general merchandise markets. R&B's
products are marketed under more than thirty proprietary brand names, through
its Motormite(R), Dorman(R), Allparts(TM), Scan-Tech(TM), MPI(TM) and
Pik-A-Nut(TM) busi nesses.
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 - Risk
Factors."
R&B, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
13 Weeks 13 Weeks
--------- ---------
Third Quarter (unaudited) 9/24/05 Pct. 9/25/04 Pct.
Net sales $73,783 100.0 $64,135 100.0
Cost of goods sold 48,005 65.1 40,196 62.7
Gross profit 25,778 34.9 23,939 37.3
Selling, general and
administrative expenses 17,769 24.0 16,315 25.4
Income from operations 8,009 10.9 7,624 11.9
Interest expense, net 672 1.0 703 1.1
Income before income taxes 7,337 9.9 6,921 10.8
Provision for income taxes 2,724 3.6 2,519 3.9
Net income $ 4,613 6.3 $ 4,402 6.9
Earnings per share
Basic $ 0.26 - $ 0.25 -
Diluted $ 0.25 - $ 0.24 -
Average shares outstanding
Basic 17,932 - 17,737 -
Diluted 18,444 - 18,377 -
39 Weeks 39 Weeks
-------- --------
Year-to-date (unaudited) 9/24/05 Pct. 9/25/04 Pct.
Net sales $203,625 100.0 $184,417 100.0
Cost of goods sold 130,211 63.9 114,903 62.3
Gross profit 73,414 36.1 69,514 37.7
Selling, general and
administrative expenses 51,317 25.2 46,819 25.4
Income from operations 22,097 10.9 22,695 12.3
Interest expense, net 1,961 1.0 2,233 1.2
Income before income taxes 20,136 9.9 20,462 11.1
Provision for income taxes 7,441 3.7 7,425 4.0
Net income $12,695 6.2 $13,037 7.1
Earnings per share
Basic $ 0.71 - $ 0.74 -
Diluted $ 0.69 - $ 0.71 -
Average shares outstanding
Basic 17,915 - 17,651 -
Diluted 18,452 - 18,343 -
R&B, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
9/24/05 12/25/04
Assets: (Unaudited)
Cash and cash equivalents $ 3,152 $ 7,152
Accounts receivable 60,472 60,962
Inventories 75,015 61,436
Prepaid expenses and other 10,439 10,026
Total current assets 149,078 139,576
Property & equipment 27,384 25,698
Goodwill 29,619 29,410
Other assets 785 720
Total assets $206,866 $195,404
Liability & Shareholders' Equity:
Current portion of long-term debt$ 9,064 $ 9,045
Accounts payable 14,097 15,599
Accrued expenses and other 13,027 13,347
Total current liabilities 36,188 37,991
Long-term debt and other 26,473 25,714
Deferred income taxes 7,752 6,472
Shareholders' equity 136,453 125,227
Total Liabilities and Equity $206,866 $195,404
Selected Cash Flow Information (unaudited):
(in thousands) 13 Weeks 39 Weeks
-------- --------
9/24/05 9/25/04 9/24/05 9/25/04
Depreciation and
amortization $1,420 $1,153 $4,194 $ 3,388
Capital Expenditures $1,409 $4,011 $5,522 $ 9,223