RBC Bearings Announces Q1 Results

Net sales for the first quarter of fiscal 2013 were $103.3 million, an increase of 10.7% from $93.3 million in the first quarter of fiscal 2012 . . .

Oxford, CT--RBC Bearings Incorporated, a leading international manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries, today reported results for the first quarter of fiscal year 2013.

First Quarter Highlights

 

 

 

Q1 FY 2013

 

 

Q1 FY 2012

 

 

Change

($ in millions)

  

GAAP

 

 

Adjusted (1)

  

GAAP

  

GAAP

 

 

Adjusted (1)

Net sales

  

$103.3

 

 

   

$93.3

  

10.7%

 

 

 

Gross margin

  

$38.4

     

$31.8

  

20.9%

   

Gross margin %

  

37.2%

     

34.1%

      

Operating income

  

$22.0

     

$17.0

  

29.3%

   

Operating income %

  

21.3%

     

18.2%

      

Net income

  

$17.2

  

$13.9

  

$10.7

  

60.2%

  

30.1%

Diluted EPS

  

$0.76

  

$0.62

  

$0.48

  

58.3%

  

29.2%

(1) Results exclude items in reconciliation below.

         

 

β€œWe are pleased with the strong start reported in our first quarter fiscal 2013 results, with year-over-year improvements in sales, gross margin, and earnings,” said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer. β€œWe continue to see solid demand in our core industrial markets, coupled with further momentum in the aerospace and defense markets driven by commercial aircraft build rates and the aerospace aftermarket. The strength of our markets, quality of our offering, and financial health put us in a position to continue delivering shareholder value as we execute on our plans for sustainable growth.”

First Quarter Results

Net sales for the first quarter of fiscal 2013 were $103.3 million, an increase of 10.7% from $93.3 million in the first quarter of fiscal 2012. The increase in net sales was mainly the result of a 6.7% increase in industrial sales driven by volume in the general industrial markets and industrial distribution and a 15.3% increase in aerospace and defense driven by commercial aircraft build rates and the aerospace aftermarket. Gross margin for the first quarter was $38.4 million compared to $31.8 million for the same period last year. Gross margin as a percentage of net sales was 37.2% in the first quarter of fiscal 2013 compared to 34.1% for the same period last year.

SG&A for the first quarter of fiscal 2013 was $16.1 million, an increase of $1.6 million over the same period last year. As a percentage of net sales, SG&A was 15.6% for both periods.

Other operating expenses for the first quarter of fiscal 2013 totaled $0.4 million, an increase of $0.1 million, compared to $0.3 million for the same period last year. For the first quarter of fiscal 2013 other operating expenses consisted of $0.4 million of amortization of intangibles. For the same period last year, other operating expenses consisted of $0.4 million of amortization of intangibles offset by miscellaneous income of $0.1 million.

Operating income for the first quarter of fiscal 2013 was $22.0 million, an increase of 29.3% compared to operating income of $17.0 million for the same period last year. As a percentage of net sales, operating income was 21.3% compared to 18.2% for the same period last year.

Interest expense, net for the first quarter of fiscal 2013 was $0.2 million compared to $0.5 million for the same period last year.

Other non-operating income was $3.3 million for the first quarter of fiscal 2013 compared to other non-operating expense of $0.2 million for the same period last year. This was mainly due to the receipt of $3.6 million in CDSOA payments in the first quarter of fiscal 2013 offset by $0.3 million of foreign exchange losses.

Income tax expense for the first quarter of fiscal 2013 was $7.9 million compared to $5.6 million for the same period last year. Our effective income tax rate for the first quarter of fiscal 2013 was 31.6% compared to 34.5% for the same period last year. The effective income tax rate for the first quarter fiscal 2013 includes a $0.9 million benefit due to the reversal of unrecognized tax benefits associated with the conclusion of state income tax audits. The effective income tax rate without these discrete items would have been 35.0% for the first quarter fiscal 2013.

Net income for the first quarter of fiscal 2013 increased 60.2% to $17.2 million compared to $10.7 million for the same period last year. Excluding the after tax impact of the CDSOA payment and the discrete tax benefit, net income would have been $13.9 million for the first quarter fiscal 2013, an increase of 30.1% compared to $10.7 million for the same period last year.

Diluted EPS for the first quarter of fiscal 2013 increased 58.3% to 76 cents per share compared to 48 cents per share for the same period last year. Excluding the after tax impact of the CDSOA payment and the discrete tax benefit, diluted EPS for the first quarter of fiscal 2013 would have been 62 cents per share compared to 48 cents per share for the same period last year, an increase of 29.2%.

Backlog, as of June 30, 2012, was $211.5 million compared to $206.4 million as of July 2, 2011.

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 requiring sophisticated design, testing, and manufacturing capabilities for the diversified industrial, aerospace, and defense markets. Headquartered in Oxford, Connecticut, RBC Bearings currently employs approximately 2,154 people and operates 23 manufacturing facilities in four countries.

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