UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report: August 15, 2022 (Date of
earliest event reported:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
On August 4, 2022, RBC Bearings Incorporated (the “Company”) disclosed during an earnings call and presented in an earnings release on the same day, that the Company will be changing the presentation of the non-GAAP metric adjusted earnings per share in future releases. To offer comparability of information and provide historical results in this format, a reconciliation of historical U.S. GAAP earnings per share previously reported for each of the quarters in the fiscal years ended April 2, 2022 and April 3, 2021, compared to adjusted earnings per share for each of these quarters has been furnished as Exhibit 99.1 to this report and is incorporated herein by this reference.
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 report 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. These non-GAAP measures are not meant to be considered in isolation or as a substitute for the Company's results of operations prepared and presented in accordance with GAAP. A reconciliation of the non-GAAP measures disclosed in this report with the most comparable GAAP measures are included in the financial table attached to this report.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted net income and adjusted earnings per share (calculated on a diluted basis) exclude non-cash expenses for amortization related to acquired intangible assets, stock compensation and amortization of deferred finance fees, acquisition expenses including the impact of acquisition-related fair value adjustments in connection with purchase, restructuring and other similar charges, gains or losses on divestitures, discontinued operations, gains or losses on extinguishment of debt, and other non-operational, non-cash or non-recurring losses, net of their income tax impact. We believe that adjusted net income and adjusted earnings per share are useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations.
The information in this report, including the exhibit hereto, is furnished pursuant to Item 7.01 of Form 8-K, and is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit is not incorporated by reference in any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit 99.1 | Reconciliation of previously reported earnings per share to adjusted earnings per share for each of the quarters in the fiscal years ended April 2, 2022 and April 3, 2021, dated August 15, 2022 | |
| 104 | Cover page interactive data file (embedded within the inline XBRL document) |
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SIGNATURES
According to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Date: August 15, 2022
| RBC BEARINGS INCORPORATED | |||
| By: | /s/ John J. Feeney | ||
| Name: | John J. Feeney | ||
| Title: | Vice President, General Counsel & Secretary | ||
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Exhibit 99.1
RBC Bearings Incorporated
Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| July 3, | October 2, | January 1, | April 2, | April 2, | ||||||||||||||||
| 2021 | 2021 | 2022 | 2022 | 2022 | ||||||||||||||||
| Reported net income | $ | 24,038 | $ | (1,352 | ) | $ | 546 | $ | 31,478 | $ | 54,710 | |||||||||
| Preferred stock dividends | - | 510 | 5,751 | 5,750 | 12,011 | |||||||||||||||
| Reported net income available to common stockholders | $ | 24,038 | $ | (1,862 | ) | $ | (5,205 | ) | $ | 25,728 | $ | 42,699 | ||||||||
| Reported net income available to common stockholders per common share: | ||||||||||||||||||||
| Basic | $ | 0.96 | $ | (0.07 | ) | $ | (0.18 | ) | $ | 0.90 | $ | 1.58 | ||||||||
| Diluted | $ | 0.95 | $ | (0.07 | ) | $ | (0.18 | ) | $ | 0.89 | $ | 1.56 | ||||||||
| Weighted average common shares: | ||||||||||||||||||||
| Basic | 25,021,063 | 25,500,393 | 28,618,495 | 28,645,468 | 26,946,355 | |||||||||||||||
| Diluted | 25,392,047 | 25,500,393 | 28,618,495 | 28,971,766 | 27,311,029 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| July 3, | October 2, | January 1, | April 2, | April 2, | ||||||||||||||||
| 2021 | 2021 | 2022 | 2022 | 2022 | ||||||||||||||||
| Reconciliation of Reported Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders: | ||||||||||||||||||||
| Reported net income | $ | 24,038 | $ | (1,352 | ) | $ | 546 | $ | 31,478 | $ | 54,710 | |||||||||
| Inventory step-up | - | - | 6,977 | 6,826 | 13,803 | |||||||||||||||
| Transaction and related costs | - | 16,903 | 22,217 | 1,024 | 40,144 | |||||||||||||||
| Transition services | - | - | 3,325 | 4,678 | 8,003 | |||||||||||||||
| Restructuring and consolidation | 557 | 1,987 | - | - | 2,544 | |||||||||||||||
| Foreign exchange translation loss/(gain) | 13 | 79 | 1 | 33 | 126 | |||||||||||||||
| M&A related amortization | 2,081 | 2,054 | 11,464 | 16,357 | 31,956 | |||||||||||||||
| Stock compensation expense | 7,182 | 16,773 | 4,544 | 4,395 | 32,894 | |||||||||||||||
| Amortization of deferred finance fees | 106 | 106 | 773 | 1,330 | 2,315 | |||||||||||||||
| Tax impact of adjustments | (2,953 | ) | (6,092 | ) | (9,296 | ) | (4,389 | ) | (22,730 | ) | ||||||||||
| Adjusted net income | $ | 31,024 | $ | 30,458 | $ | 40,551 | $ | 61,732 | $ | 163,765 | ||||||||||
| Preferred stock dividends | - | 510 | 5,751 | 5,750 | 12,011 | |||||||||||||||
| Adjusted net income available to common stockholders | $ | 31,024 | $ | 29,948 | $ | 34,800 | $ | 55,982 | $ | 151,754 | ||||||||||
| Adjusted net income available to common stockholders per common share: | ||||||||||||||||||||
| Basic | $ | 1.24 | $ | 1.17 | $ | 1.22 | $ | 1.95 | $ | 5.63 | ||||||||||
| Diluted | $ | 1.22 | $ | 1.16 | $ | 1.20 | $ | 1.93 | $ | 5.56 | ||||||||||
| Weighted average common shares: | ||||||||||||||||||||
| Basic | 25,021,063 | 25,500,393 | 28,618,495 | 28,645,468 | 26,946,355 | |||||||||||||||
| Diluted | 25,392,047 | 25,869,028 | 29,011,478 | 28,971,766 | 27,311,029 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| June 27, | September 26, | December 26, | April 3, | April 3, | ||||||||||||||||
| 2020 | 2020 | 2020 | 2021 | 2021 | ||||||||||||||||
| Reported net income | $ | 23,265 | $ | 17,932 | $ | 22,690 | $ | 26,256 | $ | 90,143 | ||||||||||
| Preferred stock dividends | - | - | - | - | - | |||||||||||||||
| Reported net income available to common stockholders | $ | 23,265 | $ | 17,932 | $ | 22,690 | $ | 26,256 | $ | 90,143 | ||||||||||
| Reported net income available to common stockholders per common share: | ||||||||||||||||||||
| Basic | $ | 0.94 | $ | 0.72 | $ | 0.91 | $ | 1.05 | $ | 3.63 | ||||||||||
| Diluted | $ | 0.93 | $ | 0.72 | $ | 0.90 | $ | 1.04 | $ | 3.58 | ||||||||||
| Weighted average common shares: | ||||||||||||||||||||
| Basic | 24,763,903 | 24,823,658 | 24,861,792 | 24,948,546 | 24,851,344 | |||||||||||||||
| Diluted | 25,039,289 | 25,059,667 | 25,168,356 | 25,331,476 | 25,149,405 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| June 27, | September 26, | December 26, | April 3, | April 3, | ||||||||||||||||
| 2020 | 2020 | 2020 | 2021 | 2021 | ||||||||||||||||
| Reconciliation of Reported Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders: | ||||||||||||||||||||
| Reported net income | $ | 23,265 | $ | 17,932 | $ | 22,690 | $ | 26,256 | $ | 90,143 | ||||||||||
| Restructuring and consolidation | 1,119 | 3,514 | 1,341 | 1,273 | 7,247 | |||||||||||||||
| Cyber event | - | - | - | 1,507 | 1,507 | |||||||||||||||
| Foreign exchange translation loss/(gain) | 77 | 145 | 224 | (206 | ) | 240 | ||||||||||||||
| M&A related amortization | 2,069 | 2,077 | 2,075 | 2,076 | 8,297 | |||||||||||||||
| Stock compensation expense | 3,979 | 7,959 | 3,135 | 3,009 | 18,082 | |||||||||||||||
| Amortization of deferred finance fees | 141 | 118 | 106 | 107 | 472 | |||||||||||||||
| Tax impact of adjustments | (1,389 | ) | (2,955 | ) | (1,870 | ) | (1,757 | ) | (7,971 | ) | ||||||||||
| Adjusted net income | $ | 29,261 | $ | 28,790 | $ | 27,701 | $ | 32,265 | $ | 118,017 | ||||||||||
| Preferred stock dividends | - | - | - | - | - | |||||||||||||||
| Adjusted net income available to common stockholders | $ | 29,261 | $ | 28,790 | $ | 27,701 | $ | 32,265 | $ | 118,017 | ||||||||||
| Adjusted net income available to common stockholders per common share: | ||||||||||||||||||||
| Basic | $ | 1.18 | $ | 1.16 | $ | 1.11 | $ | 1.29 | $ | 4.75 | ||||||||||
| Diluted | $ | 1.17 | $ | 1.15 | $ | 1.10 | $ | 1.27 | $ | 4.69 | ||||||||||
| Weighted average common shares: | ||||||||||||||||||||
| Basic | 24,763,903 | 24,823,658 | 24,861,792 | 24,948,546 | 24,851,344 | |||||||||||||||
| Diluted | 25,039,289 | 25,059,667 | 25,168,356 | 25,331,476 | 25,149,405 | |||||||||||||||