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Second Quarter Highlights
| ($ in millions) | Q2 Fiscal 2010 | Q2 Fiscal 2009 | Change | ||||||||||||||||||||
| GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | ||||||||||||||||||
| Net sales | $ | 63.7 | $ | 94.3 | -32.5 | % | |||||||||||||||||
| Gross margin | $ | 19.1 | $ | 20.0 | $ | 30.2 | $ | 30.9 | -36.8 | % | -35.2 | % | |||||||||||
| Gross margin % | 30.0 | % | 31.4 | % | 32.0 | % | 32.7 | % | |||||||||||||||
| Operating income | $ | 7.2 | $ | 8.5 | $ | 15.2 | $ | 16.6 | -52.3 | % | -48.8 | % | |||||||||||
| Net income | $ | 4.4 | $ | 5.3 | $ | 9.6 | $ | 10.7 | -54.1 | % | -50.6 | % | |||||||||||
| Diluted EPS | $ | 0.20 | $ | 0.24 | $ | 0.44 | $ | 0.49 | -54.5 | % | -51.0 | % | |||||||||||
| (1) Results exclude items in reconciliation below. | |||||||||||||||||||||||
Six Month Highlights
| ($ in millions) | Q2 Fiscal 2010 | Q2 Fiscal 2009 | Change | |||||||||||||||||||
| GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | |||||||||||||||||
| Net sales | $ | 127.4 | $ | 186.7 | -31.8 | % | ||||||||||||||||
| Gross margin | $ | 39.0 | $ | 40.4 | $ | 60.8 | $ | 61.8 | -35.8 | % | -34.7 | % | ||||||||||
| Gross margin % | 30.6 | % | 31.7 | % | 32.6 | % | 33.1 | % | ||||||||||||||
| Operating income | $ | 15.0 | $ | 17.0 | $ | 32.2 | $ | 34.1 | -53.4 | % | -50.3 | % | ||||||||||
| Net income | $ | 9.5 | $ | 10.6 | $ | 20.3 | $ | 21.9 | -53.3 | % | -51.5 | % | ||||||||||
| Diluted EPS | $ | 0.44 | $ | 0.49 | $ | 0.93 | $ | 1.01 | -52.7 | % | -51.5 | % | ||||||||||
| (1) Results exclude items in reconciliation below. | ||||||||||||||||||||||
“We are extremely proud of the way management responded to the sudden
and unprecedented changes in market demand for our products that were
the direct consequence of the international financial crisis. A sharp
focus was maintained on sales, service, and profitability while a
simultaneous restructuring of the business to the new reality of demand
took place,” said Dr.
Second Quarter Results
Net sales for the second quarter of fiscal 2010 were
Operating income decreased 52.3% to
Interest expense, net for the second quarter of fiscal 2010 was
Other non-operating expense was
For the second quarter of fiscal 2010, the Company reported net income
of
Six Month Results
Net sales for the six month period ended
For the six month period ended
Interest expense, net for the six month period ended
Other non-operating expense was a gain of
Net income for the six month period ended
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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 charges. These non-GAAP measures adjust for charges 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
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, 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 | Six Months Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Net sales | $ | 63,657 | $ | 94,294 | $ | 127,389 | $ | 186,674 | |||||
| Cost of sales | 44,564 | 64,077 | 88,392 | 125,902 | |||||||||
| Gross margin | 19,093 | 30,217 | 38,997 | 60,772 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | 11,132 | 13,952 | 22,751 | 27,079 | |||||||||
| Other, net | 724 | 1,097 | 1,230 | 1,479 | |||||||||
| Total operating expenses | 11,856 | 15,049 | 23,981 | 28,558 | |||||||||
| Operating income | 7,237 | 15,168 | 15,016 | 32,214 | |||||||||
| Interest expense, net | 460 | 650 | 929 | 1,331 | |||||||||
| Loss on early extinguishment of debt | - | - | - | 319 | |||||||||
| Other non-operating expense (income) | 85 | 249 | (240 | ) | 166 | ||||||||
| Income before income taxes | 6,692 | 14,269 | 14,327 | 30,398 | |||||||||
| Provision for income taxes | 2,288 | 4,681 | 4,856 | 10,127 | |||||||||
| Net income | $ | 4,404 | $ | 9,588 | $ | 9,471 | $ | 20,271 | |||||
| Net income per common share: | |||||||||||||
| Basic | $ | 0.20 | $ | 0.44 | $ | 0.44 | $ | 0.94 | |||||
| Diluted | $ | 0.20 | $ | 0.44 | $ | 0.44 | $ | 0.93 | |||||
| Weighted average common shares: | |||||||||||||
| Basic | 21,591,779 | 21,567,551 | 21,587,193 | 21,564,463 | |||||||||
| Diluted | 21,746,552 | 21,761,677 | 21,718,805 | 21,771,849 | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| Reconciliation of Reported Operating Income to | 2009 | 2008 | 2009 | 2008 | |||||||||
| Adjusted Operating Income: | |||||||||||||
| Reported operating income | $ | 7,237 | $ | 15,168 | $ | 15,016 | $ | 32,214 | |||||
| Large bearing start-up costs | 892 | 645 | 1,374 | 1,043 | |||||||||
| Restructuring and moving costs | 354 | 389 | 562 | 487 | |||||||||
| Disposal of fixed assets | - | 370 | 19 | 400 | |||||||||
| Adjusted operating income | $ | 8,483 | $ | 16,572 | $ | 16,971 | $ | 34,144 | |||||
| Reconciliation of Reported Net Income and | Three Months Ended | Six Months Ended | |||||||||||
| Net Income Per Common Share to Adjusted Net | September 26, | September 27, | September 26, | September 27, | |||||||||
| Income and Adjusted Net Income Per Common Share: | 2009 | 2008 | 2009 | 2008 | |||||||||
| Reported net income | $ | 4,404 | $ | 9,588 | $ | 9,471 | $ | 20,271 | |||||
| Large bearing start-up costs (1) | 587 | 433 | 908 | 696 | |||||||||
| Restructuring and moving costs (1) | 233 | 261 | 372 | 325 | |||||||||
| Disposal of fixed assets (1) | - | 249 | 13 | 267 | |||||||||
| Loss on early extinguishment of debt (1) | - | - | - | 213 | |||||||||
| Foreign exchange loss (gain) on inter-company loans (1) | 56 | 167 | (159 | ) | 111 | ||||||||
| Adjusted net income | $ | 5,280 | $ | 10,698 | $ | 10,605 | $ | 21,883 | |||||
| (1) Item was tax effected at the effective tax rate. | |||||||||||||
| Adjusted net income per common share: | |||||||||||||
| Basic | $ | 0.24 | $ | 0.50 | $ | 0.49 | $ | 1.01 | |||||
| Diluted | $ | 0.24 | $ | 0.49 | $ | 0.49 | $ | 1.01 | |||||
| Adjusted weighted average common shares: | |||||||||||||
| Basic | 21,591,779 | 21,567,551 | 21,587,193 | 21,564,463 | |||||||||
| Diluted | 21,746,552 | 21,761,677 | 21,718,805 | 21,771,849 | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| Segment Data, Net External Sales: | 2009 | 2008 | 2009 | 2008 | |||||||||
| Roller bearings segment | $ | 17,311 | $ | 25,666 | $ | 32,879 | $ | 50,623 | |||||
| Plain bearings segment | 30,262 | 43,181 | 61,262 | 86,896 | |||||||||
| Ball bearings segment | 11,370 | 16,555 | 23,612 | 31,601 | |||||||||
| Other segment | 4,714 | 8,892 | 9,636 | 17,554 | |||||||||
| $ | 63,657 | $ | 94,294 | $ | 127,389 | $ | 186,674 | ||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| Selected Financial Data: | 2009 | 2008 | 2009 | 2008 | |||||||||
| Depreciation and amortization | $ | 2,976 | $ | 3,250 | $ | 5,867 | $ | 6,416 | |||||
| Incentive stock compensation expense | $ | 707 | $ | 553 | $ | 1,453 | $ | 1,105 | |||||
| Cash provided by operating activities | $ | 4,610 | $ | 2,230 | $ | 21,379 | $ | 23,943 | |||||
| Capital expenditures | $ | 1,751 | $ | 6,451 | $ | 6,021 | $ | 11,020 | |||||
| Total debt | $ | 63,005 | $ | 51,190 | |||||||||
| Cash and short-term investments | $ | 41,620 | $ | 9,262 | |||||||||
| Total debt minus cash and short-term investments | $ | 21,385 | $ | 41,928 | |||||||||
| Backlog | $ | 160,530 | $ | 239,939 | |||||||||
Source:
RBC Bearings
Daniel A. Bergeron, 203-267-5028
dbergeron@rbcbearings.com
or
FD
Michael
Cummings, 617-747-1796
investors@rbcbearings.com