RBC Bearings Incorporated Announces Fiscal 2021 Fourth Quarter Results

Rhea-AI Summary

RBC Bearings (Nasdaq: ROLL) reported a 13.7% decline in fourth quarter net sales for fiscal 2021, totaling $160.3 million, primarily due to a 28.6% drop in aerospace market sales. Despite a decrease in gross margin to $62.5 million, SG&A costs fell to $27.4 million. Net income decreased to $25.0 million with a diluted EPS of $0.99, a 26.7% drop year-over-year. The company ended fiscal 2021 with a robust cash position of $241.3 million and an outlook projecting first quarter sales between $154.0 million and $158.0 million.

Positive

• Strong cash balance of $241.3 million and $262.3 million in undrawn credit.
• Continued improvement in industrial market net sales by 12.9%.
• Healthy backlog of $394.8 million entering fiscal 2022.

Negative

• Net sales decreased by 13.7% from the previous year.
• Aerospace market sales fell by 28.6%.
• Net income down 26.1% year-over-year.

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 2021.

Fourth Quarter Financial Highlights

($ in millions)		Fiscal 2021				Fiscal 2020				Change
		GAAP		Adjusted (1)		GAAP		Adjusted (1)		GAAP		Adjusted (1)
Net sales		$160.3				$185.8				-13.7%
Gross margin		$62.5		$62.7		$76.6		$76.7		-18.4%		-18.2%
Gross margin %		39.0%		39.1%		41.2%		41.3%
Operating income		$29.7		$32.5		$43.5		$43.0		-31.7%		-24.3%
Operating income %		18.6%		20.3%		23.4%		23.1%
Net income		$25.0		$27.4		$33.8		$33.1		-26.1%		-17.4%
Diluted EPS		$0.99		$1.08		$1.35		$1.33		-26.7%		-18.8%
(1) Results exclude items in reconciliation below.

Twelve Month Financial Highlights

($ in millions)		Fiscal 2021				Fiscal 2020				Change
		GAAP		Adjusted (1)		GAAP		Adjusted (1)		GAAP		Adjusted (1)
Net sales		$609.0				$727.5				-16.3%
Gross margin		$234.1		$237.2		$289.1		$289.5		-19.0%		-18.1%
Gross margin %		38.4%		38.9%		39.7%		39.8%
Operating income		$111.5		$120.2		$156.8		$157.7		-28.9%		-23.7%
Operating income %		18.3%		19.7%		21.6%		21.7%
Net income		$89.6		$96.9		$126.0		$126.4		-28.9%		-23.3%
Diluted EPS		$3.58		$3.87		$5.06		$5.07		-29.2%		-23.7%
(1) Results exclude items in reconciliation below.

Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, said, “I am pleased with our team’s performance during a fiscal year challenged by the global pandemic. Sequential sales improvements, combined with outstanding expense control and execution drove our highest level of cash flow in the fourth quarter. We are encouraged by the expansion of demand for our industrial products and opportunities within our robust platforms in aerospace. We enter fiscal 2022 with a healthy backlog and we remain well-positioned to continue executing at a high level as we benefit from a prolonged recovery.”

Fourth Quarter Results

Net sales for the fourth quarter of fiscal 2021 were $160.3 million, a decrease of 13.7% from $185.8 million in the fourth quarter of fiscal 2020. Net sales for the aerospace markets decreased 28.6% while industrial market net sales increased 12.9%. Gross margin for the fourth quarter of fiscal 2021 was $62.5 million compared to $76.6 million for the same period last year. On an adjusted basis, gross margin for the fourth quarter of fiscal 2021 was $62.7 million compared to $76.7 million for the same period last year.

SG&A for the fourth quarter of fiscal 2021 was $27.4 million, a decrease of $3.6 million from $31.0 million for the same period last year. The decrease was primarily due to a reduction in personnel-related costs of $3.4 million and other costs of $0.5 million offset by $0.3 million of additional share-based stock compensation costs. As a percentage of net sales, SG&A was 17.1% for the fourth quarter of fiscal 2021 compared to 16.7% for the same period last year.

Other operating expenses for the fourth quarter of fiscal 2021 totaled $5.3 million compared to $2.1 million for the same period last year. For the fourth quarter of fiscal 2021, other operating expenses consisted primarily of $2.5 million of amortization of intangible assets, $1.5 million of costs associated with a cyber event, $1.0 million of restructuring and consolidation costs, and $0.3 million of other charges. For the fourth quarter of fiscal 2020, other operating expenses consisted primarily of $2.6 million of amortization of intangible assets, $0.8 million of restructuring costs and $0.1 million of other items offset by a $1.4 million gain on the sale of a surplus building.

Operating income for the fourth quarter of fiscal 2021 was $29.7 million compared to $43.5 million for the same period last year. Adjusted operating income for the fourth quarter of fiscal 2021 was $32.5 million compared to adjusted operating income of $43.0 million for the same period last year. Adjusted operating income as a percentage of net sales was 20.3% for the fourth quarter of fiscal 2021 compared to 23.1% for the same period last year.

Interest expense, net was $0.3 million for the fourth quarter of fiscal 2021 compared to $0.4 million for the same period last year.

Income tax expense for the fourth quarter of fiscal 2021 was $4.7 million compared to $9.2 million for the same period last year. The effective income tax rate for the fourth quarter of fiscal 2021 was 15.8% compared to 21.4% for the same period last year.

Net income for the fourth quarter of fiscal 2021 was $25.0 million compared to $33.8 million for the same period last year. On an adjusted basis, net income was $27.4 million for the fourth quarter of fiscal 2021 compared to $33.1 million for the same period last year.

Diluted EPS for the fourth quarter of fiscal 2021 was $0.99 per share compared to $1.35 per share for the same period last year. On an adjusted basis, diluted EPS was $1.08 for the fourth quarter of fiscal 2021 compared to $1.33 for the same period last year

Backlog as of April 3, 2021 was $394.8 million compared to $478.6 million as of March 28, 2020.

Liquidity

The Company ended fiscal 2021 with a strong cash balance and liquidity position. Cash and marketable securities at April 3, 2021 was $241.3 million compared to $103.3 million last year and the Company had approximately $262.3 million of undrawn revolving credit on its two bank facilities. The Company ended the year with total debt of $16.1 million and is in full compliance with all covenants under its credit agreements.

Outlook for the First Quarter Fiscal 2022

The Company expects net sales to be approximately $154.0 million to $158.0 million in the first quarter of fiscal 2022, compared to $156.5 million for the first quarter of fiscal 2021.

Live Webcast

RBC 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 # 5974655. An audio replay of the call will be available from 1:00 p.m. ET May 21st, 2021 until 1:00 p.m. ET May 28th, 2021. The replay can be accessed by dialing 855-859-2056 (international callers dial 404-537-3406) and providing conference ID #5974655. Investors are advised to dial into the call at least ten minutes prior to the call to register.

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 GAAP. A reconciliation of the non-GAAP measures disclosed in this press release with the most comparable GAAP measures are included in the financial table attached to this press release.

About RBC Bearings

RBC 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 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 following: 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,” “would,” “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, COVID-19 pandemic, 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, 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 3,				March 28,				April 3,				March 28,
		2021				2020				2021				2020
Net sales		$	160,295			$	185,843			$	608,984			$	727,461
Cost of sales			97,826				109,259				374,878				438,358
Gross margin			62,469				76,584				234,106				289,103
Operating expenses:
Selling, general and administrative			27,409				30,985				106,000				122,565
Other, net			5,320				2,079				16,648				9,753
Total operating expenses			32,729				33,064				122,648				132,318
Operating income			29,740				43,520				111,458				156,785
Interest expense, net			335				399				1,430				1,885
Other non-operating expense (income)			(234	)			180				(31	)			761
Income before income taxes			29,639				42,941				110,059				154,139
Provision for income taxes			4,685				9,189				20,426				28,103
Net income		$	24,954			$	33,752			$	89,633			$	126,036
Net income per common share:
Basic		$	1.00			$	1.36			$	3.61			$	5.12
Diluted		$	0.99			$	1.35			$	3.58			$	5.06
Weighted average common shares:
Basic			24,948,546				24,745,009				24,851,344				24,632,637
Diluted			25,231,485				24,994,189				25,048,451				24,922,631
		Three Months Ended								Twelve Months Ended
		April 3,				March 28,				April 3,				March 28,
Reconciliation of Reported Gross Margin to Adjusted Gross Margin:		2021				2020				2021				2020
Reported gross margin		$	62,469			$	76,584			$	234,106			$	289,103
Inventory purchase accounting adjustment			-				97				-				368
Restructuring and consolidation			242				-				3,071				-
Adjusted gross margin		$	62,711			$	76,681			$	237,177			$	289,471
		Three Months Ended								Twelve Months Ended
		April 3,				March 28,				April 3,				March 28,
Reconciliation of Reported Operating Income to Adjusted Operating Income:		2021				2020				2021				2020
Reported operating income		$	29,740			$	43,520			$	111,458			$	156,785
Inventory purchase accounting adjustment			-				97				-				368
Net gain on sale of Houston building			-				(1,440	{ "@context": "https://schema.org", "@type": "FAQPage", "name": "RBC Bearings Incorporated Announces Fiscal 2021 Fourth Quarter Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were RBC Bearings' fourth quarter sales for fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "RBC Bearings reported fourth quarter sales of $160.3 million." } }, { "@type": "Question", "name": "How did the aerospace market affect RBC Bearings' sales?", "acceptedAnswer": { "@type": "Answer", "text": "Sales in the aerospace market decreased by 28.6% during the fourth quarter." } }, { "@type": "Question", "name": "What is the outlook for RBC Bearings' first quarter of fiscal 2022?", "acceptedAnswer": { "@type": "Answer", "text": "The company expects net sales between $154.0 million and $158.0 million." } }, { "@type": "Question", "name": "What was the diluted EPS for RBC Bearings in fiscal 2021's fourth quarter?", "acceptedAnswer": { "@type": "Answer", "text": "The diluted EPS was $0.99, down 26.7% from the previous year." } }, { "@type": "Question", "name": "What was the net income for RBC Bearings in the fourth quarter of fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "RBC Bearings reported a net income of $25.0 million in the fourth quarter." } } ] } FAQ What were RBC Bearings' fourth quarter sales for fiscal 2021? RBC Bearings reported fourth quarter sales of $160.3 million. How did the aerospace market affect RBC Bearings' sales? Sales in the aerospace market decreased by 28.6% during the fourth quarter. What is the outlook for RBC Bearings' first quarter of fiscal 2022? The company expects net sales between $154.0 million and $158.0 million. What was the diluted EPS for RBC Bearings in fiscal 2021's fourth quarter? The diluted EPS was $0.99, down 26.7% from the previous year. What was the net income for RBC Bearings in the fourth quarter of fiscal 2021? RBC Bearings reported a net income of $25.0 million in the fourth quarter. ROLL NASDAQ:ROLL ROLL Rankings N/A Ranked by Market Cap N/A Ranked by Dividends ROLL Latest News Sep 14, 2022 RBC Bearings Incorporated Announces Transfer of Common Stock and Preferred Stock Listings to the New York Stock Exchange Sep 9, 2022 RBC Bearings to Participate in the Morgan Stanley Laguna Conference Aug 4, 2022 RBC Bearings Incorporated Announces Fiscal 2023 First Quarter Results Jul 22, 2022 RBC Bearings to Webcast First Quarter Fiscal Year 2023 Earnings Conference Call August 4th Jun 24, 2022 RBC Bearings Receives Boeing 2022 Supplier of the Year Award ROLL Stock Data Market Cap 6.14B Industry Ball and Roller Bearing Manufacturing Sector Manufacturing Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net