COLMAR, PA — R&B, Inc. has announced financial results for the fourth quarter and year, which ended on Dec. 25, 2004.
For the fourth quarter, sales increased 17 percent to $65.1 million from $55.6 million in the same period last year. Net income in the fourth quarter of 2004 was $4 million compared to net income of $3.8 million in the same period last year. Diluted earnings per share in the fourth quarter increased 5 percent to 44 cents from 42 cents in the same period last year.
For the full year, sales increased 12 percent to $249.5 million from $222.1 million in the same period last year. Diluted earnings per share for the year increased 27 percent to $1.86 compared to $1.47 in the same period last year. Net income for the year was $17.1 million compared to net income of $13.3 million in the same period last year.
The company said volume in 2004 increased primarily as a result of continued sales growth from recently introduced new products. Results in the fourth quarter were negatively impacted by low margins on two large product line updates and approximately $0.6 million in incremental expediting costs incurred to maintain satisfactory customer fill rates resulting from material shortages for certain items and higher than planned demand. Total incremental expediting costs in 2004 were $1.3 million. The company does not expect to incur further costs in 2005 as inventory levels and fill rates had returned to acceptable levels by year end.
Commenting on the company’s results, Richard Berman, chairman, president and CEO, said, “Our success in 2004 is the direct result of our customers embracing the benefits of new products as a comprehensive sales tool capable of delivering double-digit sales growth. We are particularly enthusiastic about the recent performance of our Dorman OE Solutions line of hard parts. Throughout 2004 we have continued to invest in our product development capabilities, and we plan to invest further in 2005. Our goal is to double our current level of new product development and promotional support by the end of 2006.”
The company also announced a 2-for-1 stock split on its common stock, payable in the form of a stock dividend of one share for each share held. Stockholders as of the close of business on March 15, will be issued one additional share for each share of common stock held on the record date, with a payment date of March 28.
“This stock split demonstrates our commitment to increasing shareholder value,” Berman said. “We believe that this stock split will broaden our base of investors and improve the trading liquidity of our stock.”
For more information about R&B, visit: www.rbinc.com.
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