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Key Highlights
- Organic net sales growth of 13.5% in the fourth quarter 2018 and 10.0% for fiscal year 2018
- Adjusted diluted EPS for the fourth quarter of
$1.08 increased 20.0% and full year fiscal 2018 adjusted diluted EPS of$3.87 increased 22.1% - Adjusted operating income was 20.2% of net sales for fiscal 2018 compared to 19.7% for the same period last year
- Full year fiscal 2018 operating cash flow of
$130.3 million increased 28.7%
Fourth Quarter Financial Highlights
| ($ in millions) | Fiscal 2018 | Fiscal 2017 | Change | |||||||||||||||
| GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | |||||||||||||
| Net sales | $179.9 | $179.9 | $160.2 | $160.2 | 12.3% | 12.3% | ||||||||||||
| Gross margin | $69.7 | $69.7 | $63.2 | $63.2 | 10.3% | 10.3% | ||||||||||||
| Gross margin % | 38.8% | 38.8% | 39.5% | 39.5% | ||||||||||||||
| Operating income | $37.9 | $38.3 | $34.4 | $34.4 | 10.3% | 11.5% | ||||||||||||
| Operating income % | 21.1% | 21.3% | 21.5% | 21.5% | ||||||||||||||
| Net income | $26.7 | $26.4 | $21.6 | $21.6 | 23.6% | 22.3% | ||||||||||||
| Diluted EPS | $1.09 | $1.08 | $0.90 | $0.90 | 21.1% | 20.0% | ||||||||||||
| (1) Results exclude items in reconciliation below. | ||||||||||||||||||
Twelve Month Financial Highlights
| ($ in millions) | Fiscal 2018 | Fiscal 2017 | Change | |||||||||||||||
| GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | |||||||||||||
| Net sales | $674.9 | $674.9 | $615.4 | $615.4 | 9.7% | 9.7% | ||||||||||||
| Gross margin | $258.1 | $258.1 | $229.6 | $233.2 | 12.4% | 10.7% | ||||||||||||
| Gross margin % | 38.2% | 38.2% | 37.3% | 37.9% | ||||||||||||||
| Operating income | $128.1 | $136.1 | $113.7 | $121.4 | 12.7% | 12.2% | ||||||||||||
| Operating income % | 19.0% | 20.2% | 18.5% | 19.7% | ||||||||||||||
| Net income | $87.1 | $94.3 | $70.6 | $75.4 | 23.4% | 25.0% | ||||||||||||
| Diluted EPS | $3.58 | $3.87 | $2.97 | $3.17 | 20.5% | 22.1% | ||||||||||||
| (1) Results exclude items in reconciliation below. | ||||||||||||||||||
“The fourth quarter completed a tremendous year for
Fourth Quarter Results
Net
sales for the fourth quarter of fiscal 2018 were
SG&A for the fourth quarter of fiscal 2018 was
Other operating expenses for the fourth quarter of fiscal 2018 totaled
Operating income for the fourth quarter of fiscal 2018 was
Interest expense, net was
Income tax expense for the fourth quarter of fiscal 2018 was
Net income for the fourth quarter of fiscal 2018 was
Diluted EPS for the fourth quarter of fiscal 2018 was
Backlog, as of
Outlook for the First Quarter Fiscal 2019
The
Company expects net sales to be approximately
Live Webcast
Non-GAAP Financial Measures
In
addition to disclosing results of operations that are determined in
accordance with U.S. 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
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 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
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, tax legislation and changes,
including the impact of the TCJA, 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
| RBC Bearings Incorporated | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| (dollars in thousands, except share and per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| March 31, | April 1, | March 31, | April 1, | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Net sales | $ | 179,877 | $ | 160,210 | $ | 674,949 | $ | 615,388 | |||||||||||
| Cost of sales | 110,151 | 96,981 | 416,838 | 385,792 | |||||||||||||||
| Gross margin | 69,726 | 63,229 | 258,111 | 229,596 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Selling, general and administrative | 29,589 | 26,226 | 113,124 | 102,922 | |||||||||||||||
| Other, net | 2,197 | 2,614 | 16,846 | 12,981 | |||||||||||||||
| Total operating expenses | 31,786 | 28,840 | 129,970 | 115,903 | |||||||||||||||
| Operating income | 37,940 | 34,389 | 128,141 | 113,693 | |||||||||||||||
| Interest expense, net | 1,803 | 2,047 | 7,507 | 8,706 | |||||||||||||||
| Other non-operating (income) expense | 321 | 52 | 783 | 103 | |||||||||||||||
| Income before income taxes | 35,816 | 32,290 | 119,851 | 104,884 | |||||||||||||||
| Provision for income taxes | 9,139 | 10,705 | 32,710 | 34,261 | |||||||||||||||
| Net income | $ | 26,677 | $ | 21,585 | $ | 87,141 | $ | 70,623 | |||||||||||
| Net income per common share: | |||||||||||||||||||
| Basic | $ | 1.11 | $ | 0.91 | $ | 3.64 | $ | 3.00 | |||||||||||
| Diluted | $ | 1.09 | $ | 0.90 | $ | 3.58 | $ | 2.97 | |||||||||||
| Weighted average common shares: | |||||||||||||||||||
| Basic | 24,056,839 | 23,713,311 | 23,948,565 | 23,521,615 | |||||||||||||||
| Diluted | 24,483,990 | 23,984,298 | 24,363,789 | 23,784,636 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| Reconciliation of Reported Gross Margin to | March 31, | April 1, | March 31, | April 1, | |||||||||||||||
| Adjusted Gross Margin: | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Reported gross margin | $ | 69,726 | $ | 63,229 | $ | 258,111 | $ | 229,596 | |||||||||||
| Inventory purchase accounting adjustment | - | - | - | 382 | |||||||||||||||
| Integration and restructuring | - | - | - | 3,215 | |||||||||||||||
| Adjusted gross margin | $ | 69,726 | $ | 63,229 | $ | 258,111 | $ | 233,193 | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| Reconciliation of Reported Operating Income to | March 31, | April 1, | March 31, | April 1, | |||||||||||||||
| Adjusted Operating Income: | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Reported operating income | $ | 37,940 | $ | 34,389 | $ | 128,141 | $ | 113,693 | |||||||||||
| Inventory purchase accounting adjustment | - | - | - | 382 | |||||||||||||||
| Integration and restructuring | 397 | - | 7,982 | 7,282 | |||||||||||||||
| Adjusted operating income | $ | 38,337 | $ | 34,389 | $ | 136,123 | $ | 121,357 | |||||||||||
| Reconciliation of Reported Net Income and Net Income | Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Per Common Share to Adjusted Net Income and | March 31, | April 1, | March 31, | April 1, | |||||||||||||||
| Adjusted Net Income Per Common Share: | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Reported net income | $ | 26,677 | $ | 21,585 | $ | 87,141 | $ | 70,623 | |||||||||||
| Inventory purchase accounting adjustment (1) | - | - | - | 257 | |||||||||||||||
| Integration and restructuring (1) | 323 | - | 6,991 | 4,987 | |||||||||||||||
| Foreign exchange translation loss (gain) (1) | 258 | - | 408 | (199 | ) | ||||||||||||||
| TCJA repatriation transition tax | (325 | ) | - | 9,166 | - | ||||||||||||||
| TCJA revaluation of deferred tax liabilities | (273 | ) | - | (8,981 | ) | - | |||||||||||||
| Discrete tax reserve loss (benefit) | (269 | ) | - | (406 | ) | (238 | ) | ||||||||||||
| Adjusted net income | $ | 26,391 | $ | 21,585 | $ | 94,319 | $ | 75,430 | |||||||||||
| (1) After tax impact. | |||||||||||||||||||
| Adjusted net income per common share: | |||||||||||||||||||
| Basic | $ | 1.10 | $ | 0.91 | $ | 3.94 | $ | 3.21 | |||||||||||
| Diluted | $ | 1.08 | $ | 0.90 | $ | 3.87 | $ | 3.17 | |||||||||||
| Weighted average common shares: | |||||||||||||||||||
| Basic | 24,056,839 | 23,713,311 | 23,948,565 | 23,521,615 | |||||||||||||||
| Diluted | 24,483,990 | 23,984,298 | 24,363,789 | 23,784,636 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| March 31, | April 1, | March 31, | April 1, | ||||||||||||||||
| Segment Data, Net External Sales: | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Plain bearings segment | $ | 81,899 | $ | 72,593 | $ | 296,708 | $ | 277,700 | |||||||||||
| Roller bearings segment | 35,806 | 28,697 | 132,021 | 109,483 | |||||||||||||||
| Ball bearings segment | 19,050 | 16,469 | 67,806 | 58,448 | |||||||||||||||
| Engineered products segment | 43,122 | 42,451 | 178,414 | 169,757 | |||||||||||||||
| $ | 179,877 | $ | 160,210 | $ | 674,949 | $ | 615,388 | ||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| March 31, | April 1, | March 31, | April 1, | ||||||||||||||||
| Selected Financial Data: | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Depreciation and amortization | $ | 7,164 | $ | 6,894 | $ | 28,360 | $ | 27,372 | |||||||||||
| Incentive stock compensation expense | $ | 3,506 | $ | 3,197 | $ | 13,403 | $ | 12,111 | |||||||||||
| Adjusted operating income plus depreciation/amortization | |||||||||||||||||||
| plus incentive stock compensation expense | $ | 49,007 | $ | 44,480 | $ | 177,886 | $ | 160,840 | |||||||||||
| Cash provided by operating activities | $ | 37,793 | $ | 26,667 | $ | 130,289 | $ | 101,242 | |||||||||||
| Capital expenditures | $ | 7,434 | $ | 6,479 | $ | 27,976 | $ | 20,894 | |||||||||||
| Total debt | $ | 173,355 | $ | 269,800 | |||||||||||||||
| Cash and short-term investments | $ | 54,163 | $ | 38,923 | |||||||||||||||
| Repurchase of common stock | $ | 4,992 | $ | 4,754 | |||||||||||||||
| Backlog | $ | 392,085 | $ | 354,068 | |||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180530005209/en/
Source:
RBC Bearings
Daniel A. Bergeron, 203-267-5028
dbergeron@rbcbearings.com
or
Alpha
IR Group
Michael Cummings, 617-461-1101
investors@rbcbearings.com