EX-99 2 press42905.txt 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 26,2005 Colmar, Pennsylvania (April 29, 2005) -- R&B, Inc., (NASDAQ:RBIN) today announced financialresults for the first quarter ended March 26, 2005. For the first quarter ended March 26, 2005, salesincreased 9% to $61.2 million from $56.0 million in the same period last year. Net income in the first quarter of 2005 was $3.5 million compared to net income of $3.3 million in the same period last year. Diluted earnings per share in the first quarter increased 6% to $0.19 from $0.18 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. The 9% sales increase is primarily the result of increased sales volume from new products. Net income increased at a slower rate than sales due to a 13% increase in selling, general and administrative expenses ("SG&A"). The SG&A increase is the result of the Company's decision to invest additional resources in new product development and promotional support, as well as volume-driven variable expense increases and inflationary increases in wages and other costs. Mr. Richard Berman, Chairman, President and Chief Executive Officer said, "Sales growth in the first quarter continued as customer acceptance of our new products remains high. We believe that we have an opportunity to further grow our new product sales. As a result, we have set a strategic goal of delivering twice as many new parts in half the time by the end of 2006. We set the foundation for this strategy last year and continued the initiative in the first quarter of 2005 with further investments in personnel and resources. Although these investments have a negative short-term impact on profits, we are confident that this is the right long-term decision for the business." 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) 3/26/05 Pct. 3/27/04 Pct. Net sales $61,231 100.0 $56,005 100.0 Cost of goods sold 38,538 62.9 35,390 63.2 Gross profit 22,693 37.1 20,615 36.8 Selling, general and administrative expenses 16,623 27.2 14,658 26.2 Income from operations 6,070 9.9 5,957 10.6 Interest expense, net 607 1.0 761 1.3 Income before income taxes 5,463 8.9 5,196 9.3 Provision for income taxes 2,009 3.3 1,878 3.4 Net income $ 3,454 5.6 $ 3,318 5.9 Earnings per share Basic $ 0.19 - $ 0.19 - Diluted $ 0.19 - $ 0.18 - Average shares outstanding Basic 17,885 - 17,562 - Diluted 18,449 - 18,312 - R&B, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) 3/26/05 12/25/04 Assets: (Unaudited) Cash and cash equivalents $ 5,604 $ 7,152 Accounts receivable 56,467 60,962 Inventories 64,385 61,436 Prepaid expenses and other 9,536 10,026 Total current assets 135,992 139,576 Property & equipment 26,518 25,698 Goodwill 29,233 29,410 Other assets 686 720 Total assets $192,429 $195,404 Liability & Shareholders' Equity: Current portion of long-term debt$ 9,052 $ 9,045 Accounts payable 10,887 15,599 Accrued expenses and other 10,804 13,347 Total current liabilities 30,743 37,991 Long-term debt and other 26,487 25,714 Deferred income taxes 6,890 6,472 Shareholders' equity 128,309 125,227 Total Liabilities and Equity $192,429 $195,404 Selected Cash Flow Information: (in thousands) 13 Weeks (unaudited) -------------------- 3/26/05 3/27/04 Depreciation and amortization $ 1,326 $1,080 Capital Expenditures $ 2,160 $1,762