RBC Bearings Incorporated (Nasdaq: ROLL), a leading
international manufacturer of highly-engineered precision bearings
and components for the industrial, defense and aerospace
industries, today reported results for the fourth quarter of fiscal
year 2017.
Fourth Quarter
Highlights
($ in millions)
Fiscal 2017 Fiscal 2016
Change GAAP Adjusted (1) GAAP
Adjusted (1) GAAP Adjusted (1) Net sales $160.2
$160.2 $162.3 $162.3 -1.3%
-1.3% Gross margin $63.2 $63.2 $60.4 $60.4 4.7% 4.7% Gross
margin % 39.5% 39.5% 37.2% 37.2% Operating income $34.4 $34.4 $30.8
$32.5 11.5% 5.7% Operating income % 21.5% 21.5% 19.0% 20.0% Net
income $21.6 $21.6 $18.9 $20.2 14.1% 6.7% Diluted EPS $0.90 $0.90
$0.81 $0.86 11.1% 4.7% (1) Results exclude items in reconciliation
below.
Twelve Month
Highlights
($ in millions)
Fiscal 2017 Fiscal 2016
Change GAAP Adjusted (1) GAAP
Adjusted (1) GAAP Adjusted (1) Net sales $615.4
$615.4 $597.5 $597.5 3.0% 3.0% Gross margin $229.6 $233.2 $218.8
$226.0 4.9% 3.2% Gross margin % 37.3% 37.9% 36.6% 37.8% Operating
income $113.7 $121.4 $103.8 $118.8 9.5% 2.1% Operating income %
18.5% 19.7% 17.4% 19.9% Net income $70.6 $75.4 $63.9 $73.8 10.5%
2.2% Diluted EPS $2.97 $3.17 $2.72 $3.14 9.2% 1.0% (1) Results
exclude items in reconciliation below.
“During the fourth quarter the business continued to perform
well, delivering margin and earnings growth while generating
meaningful cash flow,” said Dr. Michael J. Hartnett, Chairman and
Chief Executive Officer. “The ongoing integration of Sargent into
our portfolio is allowing us to return to stronger margin levels
typical of the RBC Bearings model. We continue to allocate our
growing cash flow toward reducing our debt while also repurchasing
stock and investing in the business. Looking ahead, we are
well-positioned to capture growing demand in our primary
markets.”
Fourth Quarter ResultsNet
sales for the fourth quarter of fiscal 2017 were $160.2 million, a
decrease of 1.3% from $162.3 million in the fourth quarter of
fiscal 2016. Net sales for the aerospace markets decreased 3.2% and
the industrial markets increased 2.6%. Gross margin for the fourth
quarter of fiscal 2017 was $63.2 million compared to $60.4 million
for the same period last year. Gross margin as a percentage of net
sales was 39.5% in the fourth quarter of fiscal 2017 compared to
37.2% for the same period last year.
SG&A for the fourth quarter of fiscal 2017 was $26.2 million
matching the same period last year. As a percentage of net sales,
SG&A was 16.4% for the fourth quarter of fiscal 2017 compared
to 16.1% for the same period last year.
Other operating expenses for the fourth quarter of fiscal 2017
totaled $2.6 million compared to $3.3 million for the same period
last year. For the fourth quarter of fiscal 2017, other operating
expenses were comprised mainly of $2.4 million of amortization of
intangible assets and $0.2 million of other items. Other operating
expenses last year consisted primarily of $2.4 million in
amortization of intangibles, $1.7 million litigation reserve offset
by $0.8 million of other income.
Operating income for the fourth quarter of fiscal 2017 was $34.4
million compared to operating income of $30.8 million for the same
period last year. Excluding the litigation reserve in the fourth
quarter last year, adjusted operating income would have been $32.5
million for the fourth quarter of fiscal 2016. Excluding the fiscal
2016 adjustment, operating income as a percentage of net sales
would have been 21.5% compared to 20.0% for the same period last
year.
Interest expense, net was $2.0 million for the fourth quarter of
fiscal 2017 compared to $2.5 million for the same period last
year.
Income tax expense for the fourth quarter of fiscal 2017 was
$10.7 million compared to $9.0 million for the same period last
year. Our effective income tax rate for the fourth quarter of
fiscal 2017 was 33.2% compared to 32.3% for the same period last
year.
Net income for the fourth quarter of fiscal 2017 was $21.6
million compared to $18.9 million for the same period last year. On
an adjusted basis, net income would have been $20.2 million for the
fourth quarter of fiscal 2016.
Diluted EPS for the fourth quarter of fiscal 2017 was 90 cents
per share compared to 81 cents per share for the same period last
year. On an adjusted basis, diluted EPS for the fourth quarter of
fiscal 2016 would have been 86 cents per share.
Backlog, as of April 1, 2017, was $354.1 million compared to
$346.4 million for the same period last year.
Live WebcastRBC Bearings
Incorporated will host a webcast at 11:00 a.m. ET today to discuss
the quarterly results. To access the webcast, go to the investor
relations portion of the Company’s website, www.rbcbearings.com,
and click on the webcast icon. If you do not have access to the
Internet and wish to listen to the call, dial 844-419-1755
(international callers dial 216-562-0468) and provide conference ID
# 14410110. An audio replay of the call will be available from 2:00
p.m. ET May 31st, 2017 until 11:59 p.m. ET June 7th , 2017. The
replay can be accessed by dialing 855-859-2056 (international
callers dial 404-537-3406) and providing conference call ID #
14410110. Investors are advised to dial into the call at least ten
minutes prior to the call to register.
Non-GAAP Financial
MeasuresThe Company prepares and publicly releases
quarterly unaudited financial statements prepared in accordance
with U.S. GAAP. In accordance with the Securities and Exchange
Commission (the “SEC”) guidance on Compliance and Disclosure
Interpretations, the Company also discloses and discusses certain
non-GAAP financial measures in our public releases which are
identified as “adjusted” that exclude certain items. Management
uses these non-GAAP financial measures to provide additional
information which is useful to gain an understanding of the factors
and trends affecting our business. Management believes these
disclosures assist in understanding the trends of our operating
performance when comparing periods both historically and
prospectively. As a result, the Company also believes disclosure of
these non-GAAP measures helps investors evaluate the business in
the same manner as Management. The non-GAAP measures disclosed
within this press release exclude certain items that arise outside
the ordinary course of the Company’s continuing operations,
including, but not limited to, integration and restructuring
charges, acquisition costs, gains and losses on foreign exchange,
and non-discrete tax benefits and expenses. Investors should
consider non-GAAP measures in addition to, not as a substitute for,
financial measures prepared in accordance with U.S. GAAP. A
reconciliation of the non-GAAP measures disclosed in the press
release with the most comparable U.S. GAAP measures are included in
the financial tables attached to this press release.
About RBC BearingsRBC
Bearings Incorporated is an international manufacturer and marketer
of highly engineered precision bearings and components. Founded in
1919, the Company is primarily focused on producing highly
technical or regulated bearing products and components requiring
sophisticated design, testing and manufacturing capabilities for
the diversified industrial, aerospace and defense markets. The
Company is headquartered in Oxford, Connecticut.
Safe Harbor for Forward Looking
StatementsCertain statements in this press release
contain “forward-looking statements.” All statements other than
statements of historical fact are “forward-looking statements” for
purposes of federal and state securities laws, including the
section of this press release entitled “Outlook”; any projections
of earnings, revenue or other financial items relating to the
Company, any statement of the plans, strategies and objectives of
management for future operations; any statements concerning
proposed future growth rates in the markets we serve; any
statements of belief; any characterization of and the Company’s
ability to control contingent liabilities; anticipated trends in
the Company’s businesses; and any statements of assumptions
underlying any of the foregoing. Forward-looking statements may
include the words “may,” “estimate,” “intend,” “continue,”
“believe,” “expect,” “anticipate,” and other similar words.
Although the Company believes that the expectations reflected in
any forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties
beyond the control of the Company. These risks and uncertainties
include, but are not limited to, risks and uncertainties relating
to general economic conditions, geopolitical factors, future levels
of general industrial manufacturing activity, future financial
performance, market acceptance of new or enhanced versions of the
Company’s products, the pricing of raw materials, changes in the
competitive environments in which the Company’s businesses operate,
the outcome of pending or future litigation and governmental
proceedings and approvals, estimated legal costs, increases in
interest rates, the Company’s ability to meet its debt obligations,
the Company’s ability to acquire and integrate complementary
businesses, and risks and uncertainties listed or disclosed in the
Company’s reports filed with the Securities and Exchange
Commission, including, without limitation, the risks identified
under the heading “Risk Factors” set forth in the Company’s most
recent Annual Report filed on Form 10-K. The Company does not
intend, and undertakes no obligation, to update or alter any
forward-looking statements.
RBC Bearings Incorporated Consolidated Statements of
Operations (dollars in thousands, except share and per share
data) (Unaudited) Three Months
Ended Twelve Months Ended April 1, April
2, April 1, April 2, 2017 2016
2017 2016 Net sales $ 160,210 $ 162,252 $
615,388 $ 597,472 Cost of sales 96,981 101,877
385,792 378,694 Gross margin 63,229 60,375
229,596 218,778 Operating expenses: Selling, general and
administrative 26,226 26,202 102,922 98,721 Other, net 2,614
3,344 12,981 16,216 Total
operating expenses 28,840 29,546 115,903 114,937 Operating
income 34,389 30,829 113,693 103,841 Interest expense, net
2,047 2,500 8,706 8,722 Other non-operating (income) expense
52 378 103 334 Income before
income taxes 32,290 27,951 104,884 94,785 Provision for income
taxes 10,705 9,027 34,261 30,891
Net income $ 21,585 $ 18,924 $ 70,623 $ 63,894
Net income per common share: Basic $ 0.91 $ 0.81 $ 3.00 $
2.75 Diluted $ 0.90 $ 0.81 $ 2.97 $ 2.72 Weighted average
common shares: Basic 23,713,311 23,238,542 23,521,615 23,208,686
Diluted 23,984,298 23,507,580 23,784,636 23,508,418
Three Months Ended Twelve Months Ended
Reconciliation of Reported Gross Margin to April 1,
April 2, April 1, April 2, Adjusted Gross
Margin: 2017 2016 2017 2016
Reported gross margin $ 63,229
$ 60,375 $ 229,596
$ 218,778 Inventory purchase accounting adjustment - - 382 7,188
Integration and restructuring - - 3,215
- Adjusted gross margin $ 63,229 $ 60,375 $ 233,193
$ 225,966
Three
Months Ended Twelve Months Ended Reconciliation of
Reported Operating Income to April 1, April 2,
April 1, April 2, Adjusted Operating Income:
2017 2016 2017 2016 Reported
operating income $ 34,389
$ 30,829 $ 113,693
$ 103,841 Inventory purchase accounting adjustment - - 382 7,188
Integration and restructuring - - 7,282 999 Acquisition costs - - -
5,097 Litigation reserve - 1,696 -
1,696 Adjusted operating income $ 34,389 $ 32,525 $
121,357 $ 118,821
Reconciliation of Reported Net Income and Net Income
Three Months Ended Twelve Months Ended Per Common
Share to Adjusted Net Income and April 1, April
2, April 1, April 2, Adjusted Net Income Per
Common Share: 2017 2016 2017 2016
Reported net income $ 21,585
$ 18,924 $ 70,623
$ 63,894 Inventory purchase accounting adjustment (1) - - 257 4,789
Integration and restructuring (1) - - 4,987 666 Acquisition costs
(1) - - - 3,402 Litigation reserve (1) - 1,149 - 1,149 Loss on
extinguishment of debt (1) - - - 127 Foreign exchange translation
loss (gain) (1) - 164 (199 ) (32 ) Discrete tax loss (benefit)
- - (238 ) (204 ) Adjusted net income $
21,585 $ 20,237 $ 75,430 $ 73,791 (1) After tax
impact. Adjusted net income per common share: Basic $ 0.91 $
0.87 $ 3.21 $ 3.18 Diluted $ 0.90 $ 0.86 $ 3.17 $ 3.14
Weighted average common shares: Basic 23,713,311 23,238,542
23,521,615 23,208,686 Diluted 23,984,298 23,507,580 23,784,636
23,508,418
Three Months Ended
Twelve Months Ended April 1, April 2, April
1, April 2, Segment Data, Net External Sales:
2017 2016 2017 2016 Plain
bearings segment $ 72,593 $ 73,079 $ 277,700 $ 270,534 Roller
bearings segment 28,697 28,014 109,483 112,039 Ball bearings
segment 16,469 14,859 58,448 53,650 Engineered products segment
42,451 46,300 169,757 161,249
$ 160,210 $ 162,252 $ 615,388 $ 597,472
Three Months Ended Twelve Months
Ended April 1, April 2, April 1, April
2, Selected Financial Data: 2017 2016
2017 2016 Depreciation and amortization $
6,894 $ 6,637 $ 27,372 $ 25,807 Incentive stock compensation
expense $ 3,197 $ 3,007 $ 12,111 $ 10,200 Adjusted operating
income plus depreciation/amortization
plus incentive stock compensation expense $ 44,480 $ 42,169 $
160,840 $ 154,828 Cash provided by operating
activities $ 26,667 $ 21,560 $ 101,242 $ 83,360 Capital
expenditures $ 6,479 $ 6,229 $ 20,894 $ 20,864 Total debt $
269,800 $ 363,696 Cash and short-term investments $ 38,923 $
39,208 Repurchase of common stock $ 4,754 $ 10,492
Backlog $ 354,068 $ 346,442
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170531005190/en/
RBC BearingsDaniel A. Bergeron,
203-267-5028dbergeron@rbcbearings.comorAlpha IR GroupMichael
Cummings, 617-461-1101investors@rbcbearings.com
RBC Bearings (NASDAQ:ROLL)
Historical Stock Chart
From Mar 2024 to Apr 2024
RBC Bearings (NASDAQ:ROLL)
Historical Stock Chart
From Apr 2023 to Apr 2024