Shop Now!
First Quarter Highlights
|
|
Fiscal 2018 | Fiscal 2017 | Change | |||||||||||||||
|
($ in millions) |
GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | ||||||||||||
| Net sales | $163.9 | $163.9 | $154.6 | $154.6 | 6.0% | 6.0% | ||||||||||||
| Gross margin | $61.9 | $61.9 | $57.3 | $57.6 | 8.1% | 7.4% | ||||||||||||
| Gross margin % | 37.8% | 37.8% | 37.0% | 37.3% | ||||||||||||||
| Operating income | $31.8 | $31.8 | $29.2 | $29.6 | 8.8% | 7.4% | ||||||||||||
| Operating income % | 19.4% | 19.4% | 18.9% | 19.2% | ||||||||||||||
| Net income | $21.8 | $22.0 | $18.0 | $18.1 | 20.9% | 21.5% | ||||||||||||
| Diluted EPS | $0.90 | $0.91 | $0.76 | $0.77 | 18.4% | 18.2% | ||||||||||||
| (1) Results exclude items in reconciliation below. | ||||||||||||||||||
“We are pleased with the solid operating performance to start off our
fiscal year,” said Dr.
First Quarter Results
Net sales
for the first quarter of fiscal 2018 were
Gross margin for the first quarter of fiscal 2018 was
SG&A for the first quarter of fiscal 2018 was
Other operating expenses for the first quarter of fiscal 2018 totaled
Operating income for the first quarter of fiscal 2018 was
Interest expense, net was
Other non-operating expense for the first quarter of fiscal 2018 was
Income tax expense for the first quarter of fiscal 2018 was
Net income for the first quarter of fiscal 2018 was
Diluted EPS for the first quarter of fiscal 2018 was
Impact of New Accounting Standard
In
Additionally, the Company will prospectively classify all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, as cash flows from operating activities in the statement of cash flows. Prior to the adoption of this standard, these were shown as cash inflows from financing activities and cash outflows from operating activities.
The adoption of ASU No. 2016-09 also resulted in the Company removing the excess tax benefits from the assumed proceeds available to repurchase shares when calculating diluted earnings per share on a prospective basis. The revised calculation increased the diluted weighted average common shares outstanding by approximately 0.1 million shares. The Company made an accounting policy election to continue to estimate forfeitures as it did prior to adoption.
Live Webcast
Non-GAAP Financial Measures
In
addition to disclosing results of operations that are determined in
accordance with generally accepted accounting principles (“GAAP”), this
press release also discloses non-GAAP results of operations that exclude
certain items. These non-GAAP measures adjust for items that Management
believes are unusual. Management believes that the presentation of these
non-GAAP measures provides useful information to investors regarding the
Company’s results of operations, as these non-GAAP measures allow
investors to better evaluate ongoing business performance. Investors
should consider non-GAAP measures in addition to, not as a substitute
for, financial measures prepared in accordance with GAAP. A
reconciliation of the non-GAAP measures disclosed in the press release
with the most comparable GAAP measures are included in the financial
table attached to this press release.
About
Safe Harbor for Forward Looking Statements
Certain
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,
aerospace and defense manufacturing activity, customer relationships,
future financial performance, market acceptance of new or enhanced
versions of the Company’s products, the pricing of raw materials,
currency fluctuations, changes in the competitive and regulatory
environments in which the Company’s businesses operate, the outcome of
pending or future litigation and governmental proceedings and approvals,
the ability to achieve satisfactory operating results in the integration
of acquired companies, loss of key personnel, estimated legal costs,
increases in interest rates, the Company’s ability to meet its debt
obligations, and risks and uncertainties listed or disclosed in the
Company’s reports filed with the
| RBC Bearings Incorporated | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (dollars in thousands, except share and per share data) | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| July 1, | July 2, | |||||||||
| 2017 | 2016 | |||||||||
| Net sales | $ | 163,897 | $ | 154,579 | ||||||
| Cost of sales | 101,988 | 97,328 | ||||||||
| Gross margin | 61,909 | 57,251 | ||||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 27,778 | 25,796 | ||||||||
| Other, net | 2,331 | 2,234 | ||||||||
| Total operating expenses | 30,109 | 28,030 | ||||||||
| Operating income | 31,800 | 29,221 | ||||||||
| Interest expense, net | 2,029 | 2,293 | ||||||||
| Other non-operating (income) expense | 372 | 118 | ||||||||
| Income before income taxes | 29,399 | 26,810 | ||||||||
| Provision for income taxes | 7,590 | 8,770 | ||||||||
| Net income | $ | 21,809 | $ | 18,040 | ||||||
| Net income per common share: | ||||||||||
| Basic | $ | 0.92 | $ | 0.77 | ||||||
| Diluted | $ | 0.90 | $ | 0.76 | ||||||
| Weighted average common shares: | ||||||||||
| Basic | 23,805,138 | 23,320,579 | ||||||||
| Diluted | 24,189,375 | 23,626,751 | ||||||||
| Three Months Ended | ||||||||||
| Reconciliation of Reported Gross Margin to | July 1, | July 2, | ||||||||
| Adjusted Gross Margin: | 2017 | 2016 | ||||||||
| Reported gross margin | $ | 61,909 |
|
$ | 57,251 | |||||
| Inventory purchase accounting adjustment | - | 382 | ||||||||
| Adjusted gross margin | $ | 61,909 | $ | 57,633 | ||||||
| Three Months Ended | ||||||||||
| Reconciliation of Reported Operating Income to | July 1, | July 2, | ||||||||
| Adjusted Operating Income: | 2017 | 2016 | ||||||||
| Reported operating income | $ | 31,800 |
|
$ | 29,221 | |||||
| Inventory purchase accounting adjustment | - | 382 | ||||||||
| Adjusted operating income | $ | 31,800 | $ | 29,603 | ||||||
| Reconciliation of Reported Net Income and Net Income | Three Months Ended | |||||||||
| Per Common Share to Adjusted Net Income and | July 1, | July 2, | ||||||||
| Adjusted Net Income Per Common Share: | 2017 | 2016 | ||||||||
| Reported net income | $ | 21,809 |
|
$ | 18,040 | |||||
| Inventory purchase accounting adjustment (1) | - | 257 | ||||||||
| Foreign exchange translation loss (1) | 208 | - | ||||||||
| Discrete tax benefit | (48 | ) | (215 | ) | ||||||
| Adjusted net income | $ | 21,969 | $ | 18,082 | ||||||
| (1) After tax impact. | ||||||||||
| Adjusted net income per common share: | ||||||||||
| Basic | $ | 0.92 | $ | 0.78 | ||||||
| Diluted | $ | 0.91 | $ | 0.77 | ||||||
| Weighted average common shares: | ||||||||||
| Basic | 23,805,138 | 23,320,579 | ||||||||
| Diluted | 24,189,375 | 23,626,751 | ||||||||
| Three Months Ended | ||||||||||
| July 1, | July 2, | |||||||||
| Segment Data, Net External Sales: | 2017 | 2016 | ||||||||
| Plain bearings segment | $ | 72,653 | $ | 70,450 | ||||||
| Roller bearings segment | 31,413 | 27,834 | ||||||||
| Ball bearings segment | 15,780 | 13,710 | ||||||||
| Engineered products segment | 44,051 | 42,585 | ||||||||
| $ | 163,897 | $ | 154,579 | |||||||
| Three Months Ended | ||||||||||
| July 1, | July 2, | |||||||||
| Selected Financial Data: | 2017 | 2016 | ||||||||
| Depreciation and amortization | $ | 7,098 | $ | 6,740 | ||||||
| Incentive stock compensation expense | $ | 3,228 | $ | 2,774 | ||||||
| Adjusted operating income plus depreciation/amortization | ||||||||||
| plus incentive stock compensation expense | $ | 42,126 | $ | 39,117 | ||||||
| Cash provided by operating activities | $ | 39,809 | $ | 19,212 | ||||||
| Capital expenditures | $ | 5,659 | $ | 5,166 | ||||||
| Total debt | $ | 237,865 | $ | 343,808 | ||||||
| Cash | $ | 45,463 | $ | 37,261 | ||||||
| Total debt minus cash | $ | 192,402 | $ | 306,547 | ||||||
| Repurchase of common stock | $ | 2,288 | $ | 3,426 | ||||||
| Backlog | $ | 380,450 | $ | 352,556 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170808005251/en/
Source:
RBC Bearings
Daniel A. Bergeron, 203-267-5028
dbergeron@rbcbearings.com
or
Alpha
IR Group
Michael Cummings, 617-982-0475
investors@rbcbearings.com