EX-99 3 press43004.txt PRESS RELEASE - 4-30-04 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 First Quarter Ended March 27, 2004 Colmar, Pennsylvania (April 30, 2004) -- R&B, Inc., (NASDAQ:RBIN) today announced financial results for the first quarter ended March 27, 2004. For the first quarter ended March 27, 2004, sales increased 11% to $56.0 million from $50.3 million in the same period last year. Net income in the first quarter of 2004 was $3.3 million compared to net income of $2.2 million in the same period last year. Diluted earnings per share in the first quarter increased 44% to $0.36 from $0.25 in the same period last year. Sales volume in 2004 increased as a result of continued sales growth from products introduced within the last twelve months, shipments to a new customer for the Company's Pik-A-Nut home hardware business and a lower level of sales in the first quarter of 2003 due to inventory reduction initiatives by certain customers. The favorable effects of foreign currency exchange resulted in a 2% year over year increase in sales. While sales levels are expected to remain strong, management does not expect to achieve the same level of year-over-year profit increases in the second through fourth quarters of 2004 as compared to the first quarter. Mr. Richard Berman, Chairman, President and Chief Executive Officer said, "Our strong first quarter sales growth reflects the continued success of our new products. We are committed to maintaining our leadership position in the aftermarket. We recently introduced our 'Driving ReveNEW' initiative which is focused on growing revenue from "new to the aftermarket" products. Our next major new product initiatives are the introduction of a line of new four wheel drive actuators and motors and the expansion of our line of plastic intake manifolds with several new product numbers that we expect to be strong sellers." 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, Dorman, Allparts, Scan-Tech, MPI and Pik-A-Nut businesses. 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 First Quarter (unaudited) 3/27/04 Pct. 3/29/03 Pct. Net sales $56,005 100.0 $50,272 100.0 Cost of goods sold 35,390 63.2 31,674 63.0 Gross profit 20,615 36.8 18,598 37.0 Selling, general and administrative expenses 14,658 26.2 14,260 28.4 Income from operations 5,957 10.6 4,338 8.6 Interest expense, net 761 1.3 891 1.7 Income before income taxes 5,196 9.3 3,447 6.9 Provision for income taxes 1,878 3.4 1,222 2.5 Net income $ 3,318 5.9 $ 2,225 4.4 Earnings per share Basic $ 0.38 - $ 0.26 - Diluted $ 0.36 - $ 0.25 - Average shares outstanding Basic 8,781 - 8,521 - Diluted 9,156 - 8,981 - R&B, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) 3/27/04 12/27/03 Assets: (Unaudited) Cash and short term investments $ 19,710 $ 25,082 Accounts receivable 51,312 44,127 Inventories 50,601 51,170 Prepaid expenses and other 8,827 8,849 Total current assets 130,450 129,228 Property & equipment 18,264 17,590 Goodwill 28,982 29,125 Other assets 610 663 Total assets $178,306 $176,606 Liability & Shareholders' Equity: Current portion of long-term debt $ 9,038 $ 8,571 Accounts payable 10,132 10,029 Accrued expenses and other 10,697 12,176 Total current liabilities 29,867 30,776 Long-term debt 34,759 35,213 Deferred income taxes 4,934 4,632 Shareholders' equity 108,746 105,985 Total Liabilities and Equity $178,306 $176,606 Selected Cash Flow Information: (in thousands) 13 Weeks 13 Weeks -------- -------- (Unaudited) 3/27/04 3/29/03 Depreciation and amortization $ 1,080 $ 1,192 Capital expenditures 1,762 885