Delta Galil Reports Record Third Quarter 2022 Sales and EBIT

 Sales Increased 2% vs. Comparable Quarter, (or 6% in Constant Currency), to a Record $512 Million

EBIT Increased 4% vs. Comparable Quarter to a Record $55.1 Million or 10.8% of Sales

Diluted Earnings Per Share Rose 14% to $1.32, with an 11% Increase in Net Income  

Company Declares a $6 Million Dividend for Third Quarter 2022

Updates Full-Year 2022 Guidance to Reflect Impact of Global Headwinds, Foreign Currency Challenges and Inflation Pressures

TEL AVIV, Israel--()--Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange; the “Company”), the global manufacturer and marketer of branded and private label intimate apparel, leisurewear, activewear and denim products for men, women and children, today reported financial results for the third quarter and nine months ended September 30, 2022.

Third Quarter 2022 Highlights

  • Sales reached a record of $512.0 million, increasing 2% (or 6% in constant currency) from $501.1 million in the third quarter of 2021.
  • Diluted earnings per share increased 14% to $1.32, from $1.16 in the third quarter of 2021.
  • Net income increased 11% to $36.1 million, from $32.5 million in the third quarter of 2021.
  • EBIT in the third quarter set a record of $55.1 million or 10.8% of sales, increasing 4% from $53.0 million, or 10.6% of sales, last year; the increase was driven by record sales, SG&A leverage and capital gains.
  • EBITDA excluding IFRS 16 impact, increased 5% to $63.9 million, from $60.7 million in the third quarter of 2021.
  • Delta Galil strengthened its commitment to sustainability, while enhancing its digital capabilities through recently-acquired Organic Basics.
  • The Company declared a dividend of $6 million, or $0.234 per share, to be distributed on December 6, 2022. The record and “ex-dividend” date will be November 29, 2022.

Isaac Dabah, CEO of Delta Galil, stated: “We are pleased to report another quarter of record sales and EBIT—particularly given current challenging economic conditions. Demonstrating the continued strength of our diversified business model, our results were driven by sales growth in constant currency in the Private Label, 7 For All Mankind and Delta Israel segments, while sales in our Brands segment and Other—which mainly includes the results of Bare Necessities—were negatively impacted by global demand headwinds, changes in foreign currency exchange rates, and inflation pressures.”

“Importantly, during the quarter we remained focused on delivering our core value proposition to our customers and shareholders. We already began integrating recently-acquired sustainable underwear brand Organic Basics, and we plan to grow the business globally and into new categories in the second quarter of 2023. We continue to strengthen our digital expertise, while we strategically expand our businesses in order to best position us to develop the most innovative, high-quality products for our customers worldwide.”

"As the retail industry continues to face a difficult economic environment, we believe that Delta Galil’s strong value proposition, diversified business model and reputation for innovation will enable us to successfully navigate challenging market conditions.”

Sales

The Company reported sales of $512.0 million, a 2% increase (or 6% in constant currency) from $501.1 million in the third quarter of 2021. Sales in constant currency increased across all geographies in the third quarter of 2022. Sales in the first nine months of 2022 were $1,487.1 million, an 8% increase (or 11% in constant currency) from $1,373.0 million in the same period last year.

Digital Sales

E-commerce sales on the Company’s own websites were $49.0 million in the third quarter, representing a 7% decrease (or 3% decrease in constant currency), compared to $52.4 million in the third quarter of 2021. E-commerce sales on the Company’s own websites in the first nine months of 2022 were $157.4 million, representing a 16% decrease from $186.4 million in the same period last year. The decline followed a shift in consumer behavior back to physical retail stores after COVID-19 related lockdowns. Excluding Bare Necessities and Organic Basics, which were acquired in October 2020 and July 2022 respectively, own websites sales in the third quarter and first nine months of 2022 increased by 68% and 88%, respectively, compared to the same periods in 2019.

EBIT

EBIT in the third quarter increased 4% to $55.1 million, from $53.0 million last year. In the first nine months of 2022, EBIT increased 4% to $127.8 million, from $123.4 million in the same period in 2021. In the first nine months of 2022, EBIT before non-core items increased 8% to $133.3 million, compared to $123.4 million for the same period last year.

Net Income

Net income increased 11% to $36.1 million, from $32.5 million in the third quarter last year. Net income excluding non-core items, net of tax, was $36.1 million, compared to $36.4 million in the third quarter of 2021.

Net income in the first nine months of 2022 increased 4% to $77.7 million, from $74.8 million in the first nine months of 2021. Net income excluding non-core items, net of tax, in the first nine months increased 6% to $83.2 million, from $78.7 million in the comparable period last year.

Diluted Earnings Per Share

Diluted earnings per share rose 14% to $1.32, from $1.16 in the third quarter of 2021. Diluted earnings per share attributable to the Company’s shareholders, before non-core items, net of tax, attributable to the Company’s shareholders were $1.32, compared to $1.31 in the third quarter last year.

Diluted earnings per share in the first nine months rose to $2.79, compared to $2.70 in the same period of 2021. Diluted earnings per share attributable to the Company’s shareholders, before non-core items, net of tax, for the first nine months, increased to $3.00 from $2.85 in the comparable period in 2021.

EBITDA, Cash Flow, Net Debt, Equity and Dividend

EBITDA excluding IFRS 16 impact increased 5% to $63.9 million, from $60.7 million in the third quarter of 2021. For the first nine months of 2022, EBITDA excluding IFRS 16 impact increased 7% to $158.5 million, from $148.1 million in the comparable period last year.

Operating cash flow excluding IFRS 16 impact and non-core items was a use of $36.1 million for the quarter, compared to positive operating cash flow of $4.7 million in the third quarter of 2021. Operating cash flow excluding IFRS 16 impact and non-core items in the first nine months of 2022 was a use of $104.4 million, compared to $63.0 million in the first nine months of 2021. The year-over-year reduction in operating cash flow reflects elevated investments in working capital, primarily due to increased inventory, to better support growth and accommodate longer logistics lead-times.

Net financial debt as of September 30, 2022 was $281.7 million, compared to $134.8 million as of September 30, 2021, and $95.2 million as of December 31, 2021. The increase in net debt is primarily due to investments in working capital.

Equity on September 30, 2022 was $658.6 million, up 8% compared to $609.9 million one year earlier.

Delta Galil declared a dividend of $6 million, or $0.234 per share, to be distributed on December 6, 2022. The record and “ex-dividend” date will be November 29, 2022.

2022 Financial Guidance

Delta Galil’s 2022 guidance excludes non-recurring items and includes IFRS 16 impact, and it assumes no major resurgence of the COVID-19 pandemic that could lead to quarantines and/or lockdowns in any countries in which the Company sells or manufactures its products.

Delta Galil is revising its revenue and earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.

 

 

 

 

 

 

2021 ACTUAL

2022 PREVIOUS
GUIDANCE

2022  UPDATED
GUIDANCE*

2022 UPDATED
GUIDANCE VS. 2021
ACTUAL

Sales

1,951.0

 2,082 - 2,108 

 2,023 - 2,030 

3.7% - 4.1%*

Sales on constant currency basis*

 

 

 2,083 - 2,090 

6.8% - 7.1%

EBIT**

188.1

 210   -   220 

 189 - 192 

0.2% - 1.9%

EBITDA**

286.8

 312   -   322 

 281 - 284 

(2.0%) - (0.9%)

Net Income**

124.2

 138   -   145 

 119 - 121 

(4.6%) - (2.6%)

Diluted EPS** ($)

4.44

 4.80   -   5.09 

 4.25 - 4.34 

(4.3%) - (2.3%)

 

 

 

 

 

 

 

* Sales negatively impacted by ~$60M / 3% versus prior year (Q4 estimated EURO/USD 1.00; USD/NIS 3.52).

**Before non-core items, includes IFRS 16 impact

Constant Currency - Excluding the Impact of Foreign Currency
This release refers to “reported” amounts in accordance with IFRS accounting principles (“GAAP”), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to “constant dollar” amounts, which exclude the impact of translating foreign currencies into USD (U.S. dollars), and is considered a non-GAAP financial measure.

These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil’s operating performance measures calculated in accordance with GAAP.

About Delta Galil Industries
Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually endeavored to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; underwear for men including under its owned brands Schiesser, Eminence, and Athena; babywear, activewear, sleepwear, and loungewear including under its owned PJ Salvage and Delta brands. Delta Galil also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind®, and ladies’ and kids’ apparel under the brand Splendid®. In addition, it sells its products under brand names licensed to the company, including adidas, Wolford, Wilson, Columbia, Tommy Hilfiger and others. For more information, visit www.deltagalil.com.

Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Source: Delta Galil Industries, Ltd.

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Balance Sheets

As of September 30, 2022

 

 

September 30

 

December
31

 

2022

 

2021

 

2021

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

98,433

 

210,813

 

230,129

Restricted Cash

4,899

 

816

 

5,845

Short-term deposit

66,278

 

-

 

-

Trade receivables

214,927

 

189,354

 

202,140

Taxes on income receivable

14,409

 

11,890

 

11,272

Others

50,721

 

48,758

 

43,511

Financial derivative

426

 

2,140

 

1,615

Inventory

537,760

 

409,316

 

395,158

Total current assets

987,853

 

873,087

 

889,670

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Investments in associated companies accounted using

 

 

 

 

 

the equity method and long-term receivables

12,348

 

11,004

 

12,593

Investment property

2,521

 

3,097

 

2,997

Fixed assets, net of accumulated depreciation

226,290

 

207,531

 

212,999

Goodwill

142,675

 

148,299

 

147,447

Intangible assets, net of accumulated amortization

273,181

 

281,192

 

287,109

Assets in respect of usage rights

195,244

 

195,683

 

191,213

Deferred tax assets

18,734

 

15,447

 

18,705

Financial derivative

2,038

 

11,021

 

12,098

Total non-current assets

873,031

 

873,274

 

885,161

Total assets

1,860,884

 

1,746,361

 

1,774,831

 

 

 

 

 

 

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Balance Sheets

As of September 30, 2022

 

 

September 30

 

December
31

 

2022

 

2021

 

2021

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term bank loans

100,671

 

 

13

 

 

-

 

Current maturities of bank loans

40,406

 

 

7,622

 

 

7,501

 

Current maturities of debentures

30,319

 

 

39,129

 

 

32,102

 

Financial derivative

1,009

 

 

-

 

 

-

 

Current maturities of liabilities in respect of leases

47,261

 

 

53,722

 

 

51,776

 

Trade payables

235,851

 

 

249,077

 

 

247,662

 

Taxes on income payable

29,657

 

 

24,691

 

 

27,070

 

Provision for restructuring plan

4,225

 

 

13,678

 

 

8,879

 

Others

156,439

 

 

157,213

 

 

172,607

 

Total current liabilities

645,838

 

 

545,145

 

 

547,597

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Bank loans

127,671

 

 

119,781

 

 

117,122

 

Severance pay liabilities less plan assets

7,536

 

 

8,828

 

 

7,075

 

Liabilities in respect of leases

166,028

 

 

165,043

 

 

158,851

 

Other non-current liabilities

75,737

 

 

70,770

 

 

78,891

 

Debentures

145,151

 

 

187,276

 

 

176,316

 

Deferred taxes liabilities

34,240

 

 

39,604

 

 

39,797

 

Financial derivative

65

 

 

-

 

 

-

 

Total non-current liabilities

556,428

 

 

591,302

 

 

578,052

 

Total liabilities

1,202,266

 

 

1,136,447

 

 

1,125,649

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Equity attributable to equity holders of the parent company:

 

 

 

 

 

Share capital

23,714

 

 

23,714

 

 

23,714

 

Share premium

128,268

 

 

129,721

 

 

129,500

 

Other capital reserves

7,472

 

 

50,623

 

 

53,335

 

Retained earning

486,088

 

 

396,451

 

 

432,189

 

Treasury shares

(14,075

)

 

(15,528

)

 

(15,307

)

 

631,467

 

 

584,981

 

 

623,431

 

Minority interests

27,151

 

 

24,933

 

 

25,751

 

Total equity

658,618

 

 

609,914

 

 

649,182

 

Total liabilities and equity

1,860,884

 

 

1,746,361

 

 

1,774,831

 

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Statement of Income

For the 9-month and 3-month periods ending September 30, 2022

 

 

Nine months ended
September 30

 

Three months ended
September 30

 

2022

 

2021

 

2022

 

2021

 

(Unaudited)

 

Thousands of Dollars

 

(Excluding earning per share figures)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

1,487,126

 

 

1,372,972

 

 

512,002

 

 

501,066

 

Cost of sales

918,258

 

 

828,167

 

 

315,417

 

 

302,562

 

Gross profit

568,868

 

 

544,805

 

 

196,585

 

 

198,504

 

% of sales

38.3

%

 

39.7

%

 

38.4

%

 

39.6

%

Selling and marketing expenses

377,916

 

 

351,971

 

 

125,094

 

 

121,133

 

% of sales

25.4

%

 

25.6

%

 

24.4

%

 

24.2

%

General and administrative expenses

66,138

 

 

70,385

 

 

20,705

 

 

25,320

 

% of sales

4.4

%

 

5.1

%

 

4.0

%

 

5.1

%

Other income, net and Share in profits of associated
company accounted for using the equity method

(8,498

)

 

(946

)

 

(4,339

)

 

(948

)

Operating income excluding non-core items

133,312

 

 

123,395

 

 

55,125

 

 

52,999

 

% of sales

9.0

%

 

9.0

%

 

10.8

%

 

10.6

%

Non-core items

5,467

 

 

-

 

 

-

 

 

-

 

Operating income

127,845

 

 

123,395

 

 

55,125

 

 

52,999

 

Finance expenses, net

27,502

 

 

29,642

 

 

9,413

 

 

12,344

 

Income before taxes on income

100,343

 

 

93,753

 

 

45,712

 

 

40,655

 

Taxes on income

22,631

 

 

18,915

 

 

9,606

 

 

8,168

 

Net income for the period

77,712

 

 

74,838

 

 

36,106

 

 

32,487

 

Net income for the period excluding non-core items,
net of tax

83,179

 

 

78,731

 

 

36,106

 

 

36,381

 

 

 

 

 

 

 

 

 

Attribution of net earnings for the period:

 

 

 

 

 

 

 

Attributed to company's shareholders

73,945

 

 

70,274

 

 

34,926

 

 

30,615

 

Attributed to non-controlling interests

3,767

 

 

4,564

 

 

1,180

 

 

1,872

 

 

77,712

 

 

74,838

 

 

36,106

 

 

32,487

 

 

 

 

 

 

 

 

 

Net diluted earnings per share attributed to
company's shareholders (in US Dollars)

2.79

 

 

2.70

 

 

1.32

 

 

1.16

 

 

 

 

 

 

 

 

 

Net diluted earnings per share, before non-core items
net of tax attributable to Company's shareholders (in
US Dollars)

3.00

 

 

2.85

 

 

1.32

 

 

1.31

 

 

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Cash Flow Reports

For the 9-month and 3-month periods ending September 30, 2022

 

 

Nine months ended
September 30

 

Three months ended
September 30

 

2022

 

2021

 

2022

 

2021

 

(Unaudited)

 

Thousands of Dollars

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income for the period

77,712

 

 

74,838

 

 

36,106

 

 

32,487

 

Adjustments required to reflect cash flows

 

 

 

 

 

 

 

deriving from (used in) operating activities

(107,379

)

 

45,216

 

 

(46,284

)

 

(6,362

)

Interest paid in cash

(21,739

)

 

(28,049

)

 

(9,064

)

 

(12,994

)

Interest received in cash

190

 

 

471

 

 

68

 

 

310

 

Taxes on income refund (paid) in cash, net

(14,810

)

 

2,012

 

 

(4,684

)

 

(547

)

Net cash generated from (used in) operating activities

(66,026

)

 

94,488

 

 

(23,858

)

 

12,894

 

Cash flows from investment activities:

 

 

 

 

 

 

 

Short-term deposit

(66,278

)

 

-

 

 

(36,809

)

 

-

 

Acquisition of fixed assets

(35,179

)

 

(16,595

)

 

(20,375

)

 

(5,881

)

Acquisition of intangible assets

(6,295

)

 

(2,937

)

 

(3,055

)

 

(1,255

)

Providing a loan to a business partner

-

 

 

(1,750

)

 

-

 

 

-

 

Acquisition of activity

(4,500

)

 

-

 

 

(4,500

)

 

-

 

Proceeds from selling of fixed asset

6,335

 

 

658

 

 

6,245

 

 

15

 

Others

946

 

 

(2,116

)

 

395

 

 

-

 

Net cash used in Investing activities

(104,971

)

 

(22,740

)

 

(58,099

)

 

(7,121

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Dividends paid to non-controlling interest holders

 

 

 

 

 

 

 

in consolidated subsidiary

(2,763

)

 

(863

)

 

(646

)

 

(643

)

Long term payables credit for fixed assets purchase

(7,425

)

 

(3,525

)

 

(2,028

)

 

(1,034

)

Lease principle repayment

(38,370

)

 

(36,532

)

 

(12,219

)

 

(13,239

)

Early redemption of Debentures

-

 

 

(94,313

)

 

-

 

 

(94,313

)

Repayment of Debentures

(16,700

)

 

(15,940

)

 

(16,700

)

 

(15,940

)

Dividend paid

(21,998

)

 

(8,531

)

 

(6,035

)

 

(5,017

)

Receipt of a long-term loans from banking corporations

53,800

 

 

74,950

 

 

-

 

 

74,950

 

Repayment of long-term loans from banking corporations

(5,367

)

 

(66,061

)

 

(1,825

)

 

(19,757

)

Short-term credit from banking corporations, net

100,671

 

 

(10,949

)

 

72,473

 

 

50

 

Repayment of bank loan used to acquisition of a subsidiary

(792

)

 

(4,504

)

 

-

 

 

(1,503

)

Net proceeds from issuance of a subsidiary

-

 

 

77,156

 

 

-

 

 

-

 

Others

(5,797

)

 

-

 

 

(343

)

 

-

 

Net cash generated from ( used in) financing activities

55,259

 

 

(89,112

)

 

32,677

 

 

(76,446

)

Net decrease in cash and cash equivalents

(115,738

)

 

(17,364

)

 

(49,280

)

 

(70,673

)

 

 

 

 

 

 

 

 

Exchange rate differences and revaluation of cash

 

 

 

 

 

 

 

and cash equivalents, net

(15,958

)

 

(2,666

)

 

(114

)

 

1,605

 

Balance of cash and cash equivalents

 

 

 

 

 

 

 

at the beginning of the period, net

230,129

 

 

230,843

 

 

147,827

 

 

279,881

 

Balance of cash and cash equivalents
at the end of the Period, net

98,433

 

 

210,813

 

 

98,433

 

 

210,813

 

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Cash Flow Reports

For the 9-month and 3-month periods ending September 30, 2022

 

 

Nine months ended
September 30

 

Three months ended
September 30

 

2022

 

2021

 

2022

 

2021

 

(Unaudited)

 

Thousands of Dollars

Adjustments required to reflect cash flows

 

 

 

 

 

 

 

from operating activities:

 

 

 

 

 

 

 

Revenues and expenses not involving cash flow:

 

 

 

 

 

 

 

Depreciation

24,320

 

 

25,632

 

 

8,320

 

 

8,121

 

Amortization

45,018

 

 

46,814

 

 

14,805

 

 

15,038

 

Exchange rate losses

652

 

 

60

 

 

253

 

 

1,938

 

Interest paid in cash

15,413

 

 

15,325

 

 

7,075

 

 

5,861

 

Interest received in cash

(190

)

 

(471

)

 

(68

)

 

(310

)

Taxes on income paid (received) in cash, net

14,810

 

 

(2,012

)

 

4,684

 

 

547

 

Deferred taxes on income, net

(4,421

)

 

852

 

 

4,094

 

 

(5,015

)

Interest due to lease agreements

6,326

 

 

7,668

 

 

1,989

 

 

2,077

 

Severance pay liability, net

(25

)

 

(237

)

 

(25

)

 

(477

)

Change in restructuring accrual

(4,672

)

 

(13,147

)

 

(3,118

)

 

(4,111

)

Decrease in liabilities in respect of leases due to rent
payments relief

-

 

 

(3,502

)

 

-

 

 

(111

)

Capital loss from sale of fixed assets

(4,374

)

 

(328

)

 

(4,352

)

 

(88

)

Change to the benefit component of options granted
to employees

2,700

 

 

2,440

 

 

825

 

 

820

 

Impairment loss on trade receivables

353

 

 

46

 

 

334

 

 

6

 

Share in profits of associated company accounted for
using the equity method

(542

)

 

(144

)

 

(262

)

 

(106

)

Others

956

 

 

(2,801

)

 

(1,103

)

 

(3,532

)

 

96,324

 

 

81,251

 

 

33,451

 

 

25,714

 

Changes to operating assets and liabilities:

 

 

 

 

 

 

 

Decrease (increase) in trade receivables

(23,321

)

 

7,626

 

 

(32,866

)

 

(16,025

)

Decrease (increase) in other receivable and balances

(13,757

)

 

595

 

 

(15,674

)

 

(8,497

)

Decrease (increase) in trade payables

(4,606

)

 

60,733

 

 

(10,455

)

 

34,558

 

Decrease (increase) in other payables

(828

)

 

17,861

 

 

4,650

 

 

6,158

 

Increase in inventory

(161,191

)

 

(122,850

)

 

(25,390

)

 

(48,270

)

 

(203,703

)

 

(36,035

)

 

(79,735

)

 

(32,076

)

 

(107,379

)

 

45,216

 

 

(46,284

)

 

(6,362

)

 

Contacts

For more information:
Nissim Douek
+972-54-5201178
Nissim@unik.co.il

U.S. Media Contact:
Stacy Berns
Berns Communications Group
+1-212-994-4660
sberns@bcg-pr.com

Release Summary

Delta Galil Industries, Ltd. today reported financial results for the third quarter and nine months ended September 30, 2022.

Contacts

For more information:
Nissim Douek
+972-54-5201178
Nissim@unik.co.il

U.S. Media Contact:
Stacy Berns
Berns Communications Group
+1-212-994-4660
sberns@bcg-pr.com