RBC Bearings Q1 Fiscal Year 2023 Financial Report

Report Type: Financial Results

Date: May 20, 2024

Ticker: ROLL

Exchange: NASDAQ Global Select

Sector: Industrials

Industry: Manufacturing - Tools & Accessories

Calendar Year: 2023

Period: Q1

Filing Date: May 17, 2024

Report Published Date: March 30, 2024

Report Accepted Date: May 17, 2024

Currency: USD

CIK: 0001324948

Link to SEC Filing

Financial Highlights

Net Sales: $354.1M, an increase of 126% from $156.2M YoY

Gross Margin: $141.2M, 39.9% of net sales (vs. $63.8M or 40.8% last year)

Adjusted Operating Income: $68.3M, 19.3% of net sales (vs. $29.9M or 19.1% YoY)

GAAP EPS: $1.09

New Adjusted EPS: $1.79

Adjusted EBITDA: $100.7M, 28.4% of net sales (vs. $45.3M, 29% of net sales YoY)

Free Cash Flow: $51.2M

Debt Reduction: Paid down $125M debt

Industrial Product Sales: Up 286.8% from last year, representing 72% of net sales

Aerospace Product Sales: Representing 28% of net sales

Operational Highlights

RBC Bearings experienced a strong quarter with robust performance in the industrial sector and a welcome revival in aerospace production, notably from Boeing and Airbus. The company overcame challenges from the Shanghai plant shutdown and freight management issues, achieving results that aligned with expectations.

The industrial sector performance was boosted by components including industrial distribution, food, aggregate, grain, mining, semiconductor machinery, marine, and wind energy.

The aerospace sector saw an upswing thanks to increased production rates at Boeing and Airbus, with RBC Bearings being a key supplier, receiving the Boeing Supplier of the Year Award.

Financial Breakdown

Total Revenue: $1.56B

Cost of Revenue: $889.8M

Gross Profit: $670.5M (42.97% margin)

Total Operating Expenses: $328.3M

Selling, General & Administrative Expenses: $253.5M

Other Operating Expenses: $74.8M

Operating Income: $342.2M (21.93% margin)

Interest Expense: $78.7M

Income Before Tax: $261.8M

Income Tax Expense: $51.9M

Net Income: $186.9M (11.98% margin)

EPS: $6.46

EPS Diluted: $6.40

Cash Flow Analysis

Operating Cash Flow: $274.7M

Capital Expenditure: -$33.2M

Free Cash Flow: $241.5M

Cash at End of Period: $63.5M

Net Change in Cash: -$1.9M

The company generated substantial cash flow from operations and strategically invested in inventory and capital expenditures. During the period, RBC Bearings reduced total debt by $125M.

Balance Sheet Highlights

Total Assets: $4.68B

Total Liabilities: $1.93B

Stockholders' Equity: $2.75B

Total Debt: $1.23B

Net Debt: $1.17B

Cash and Cash Equivalents: $63.5M

Inventories: $622.8M

Goodwill and Intangible Assets: $3.27B

Outlook

For the second quarter, RBC Bearings anticipates sales between $355M and $365M, with supply chain dynamics playing a significant role. The company remains focused on optimizing supply chain management and expanding capacities in aerospace, industrial, and defense sectors. Continuous efforts in enhancing operational efficiencies and strategic capacity enhancements are expected to drive further growth.