COLMAR, PA — R&B, Inc. today announced financial results for the fourth quarter and year, which ended December 31, 2005. The company operates on a 52, 53 week period ending on the last Saturday of the calendar year. As a result, fourth quarter 2005 results are for 14 weeks and fiscal 2005 includes 53 weeks while prior year results are for 13 and 52 weeks, respectively.
Sales increased 14 percent to $74.5 million from $65.1 million in the same period last year. Net income in the fourth quarter of 2005 was $4.4 million compared to net income of $4 million in the same period last year. Diluted earnings per share in the fourth quarter of 2005 increased 9 percent to 24 cents from 22 cents in the same period last year.
For the year ended Dece. 31, 2005, sales increased 11 percent to $278.1 million from $249.5 million in the same period last year. Net income for both 2005 and the prior year was $17.1 million. Diluted earnings per share for both 2005 and the prior year was 93 cents.
Prior year earnings per share and common stock information have been adjusted to reflect the 2-for-1 stock split that occurred in March 2005.
Revenues in 2005 are up primarily as a result of continued growth in new product sales, according to the company. An additional week’s sales in the fourth quarter and year and the June 2005 acquisition of The Automotive Edge/Hermoff also contributed to reported sales growth. These items accounted for 4 percent and 1 percent of the sales growth in the fourth quarter and year, respectively. Gross profit margins declined as a result of a continued mix shift to lower margin automotive hard parts.
Richard Berman, chairman, president and CEO said, “Our double-digit organic sales growth was driven by new products and continued strong levels of customer retention. We remain committed to our strategy of providing innovative new product solutions which are valuable contributors to the success of our customers. Feedback from our recent new product introductions has been encouraging, and our new branding strategy ‘DORMAN, NEW SINCE 1918’ was well received at AAPEX.”
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