Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 27, 2020 | Jul. 31, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | RBC BEARINGS INCORPORATED | |
Trading Symbol | ROLL | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-28 | |
Entity Common Stock, Shares Outstanding | 25,071,591 | |
Amendment Flag | false | |
Entity Central Index Key | 0001324948 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 27, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-124824 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4372080 | |
Entity Address, Address Line One | One Tribology Center | |
Entity Address, City or Town | Oxford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06478 | |
City Area Code | (203) | |
Local Phone Number | 267-7001 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2020 | Mar. 28, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 143,615 | $ 103,255 |
Accounts receivable, net of allowance for doubtful accounts of $1,642 at June 27, 2020 and $1,627 at March 28, 2020 | 113,184 | 128,995 |
Inventory | 371,009 | 367,494 |
Prepaid expenses and other current assets | 11,041 | 12,262 |
Total current assets | 638,849 | 612,006 |
Property, plant and equipment, net | 218,128 | 219,846 |
Operating lease assets, net | 30,530 | 28,953 |
Goodwill | 277,455 | 277,776 |
Intangible assets, net of accumulated amortization of $58,242 at June 27, 2020 and $55,732 at March 28, 2020 | 161,060 | 162,747 |
Other assets | 23,187 | 20,584 |
Total assets | 1,349,209 | 1,321,912 |
Current liabilities: | ||
Accounts payable | 51,812 | 51,038 |
Accrued expenses and other current liabilities | 36,098 | 40,580 |
Current operating lease liabilities | 5,891 | 5,708 |
Current portion of long-term debt | 6,489 | 6,429 |
Total current liabilities | 100,290 | 103,755 |
Deferred income taxes | 19,425 | 16,560 |
Long-term debt, less current portion | 16,635 | 16,583 |
Long-term operating lease liabilities | 24,857 | 23,396 |
Other non-current liabilities | 45,367 | 43,619 |
Total liabilities | 206,574 | 203,913 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares: 10,000,000 at June 27, 2020 and March 28, 2020, respectively; none issued or outstanding | ||
Common stock, $.01 par value; authorized shares: 60,000,000 at June 27, 2020 and March 28, 2020, respectively; issued shares: 25,941,772 and 25,881,415 at June 27, 2020 and March 28, 2020, respectively | 259 | 259 |
Additional paid-in capital | 418,069 | 412,400 |
Accumulated other comprehensive loss | (6,229) | (6,898) |
Retained earnings | 791,908 | 769,219 |
Treasury stock, at cost, 870,161 shares and 838,982 shares at June 27, 2020 and March 28, 2020, respectively | (61,372) | (56,981) |
Total stockholders’ equity | 1,142,635 | 1,117,999 |
Total liabilities and stockholders’ equity | $ 1,349,209 | $ 1,321,912 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 27, 2020 | Mar. 28, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 1,642 | $ 1,627 |
Intangible assets, accumulated amortization (in Dollars) | $ 58,242 | $ 55,732 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | ||
Preferred stock, outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 60,000,000 | 60,000,000 |
Common stock, issued | 25,941,772 | 25,881,415 |
Treasury stock, shares | 870,161 | 838,982 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 156,493 | $ 182,690 |
Cost of sales | 97,040 | 111,996 |
Gross margin | 59,453 | 70,694 |
Operating expenses: | ||
Selling, general and administrative | 26,829 | 30,087 |
Other, net | 3,810 | 2,117 |
Total operating expenses | 30,639 | 32,204 |
Operating income | 28,814 | 38,490 |
Interest expense, net | 425 | 547 |
Other non-operating expense | 42 | 169 |
Income before income taxes | 28,347 | 37,774 |
Provision for income taxes | 5,658 | 7,275 |
Net income | $ 22,689 | $ 30,499 |
Net income per common share: | ||
Basic (in Dollars per share) | $ 0.92 | $ 1.24 |
Diluted (in Dollars per share) | $ 0.91 | $ 1.23 |
Weighted average common shares: | ||
Basic (in Shares) | 24,763,903 | 24,501,707 |
Diluted (in Shares) | 24,933,941 | 24,807,307 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 22,689 | $ 30,499 | |
Pension and postretirement liability adjustments, net of taxes | [1] | 260 | 178 |
Foreign currency translation adjustments | 409 | 2,542 | |
Total comprehensive income | $ 23,358 | $ 33,219 | |
[1] | These adjustments were net of tax expense of $79 and $54 for the three-month periods ended June 27, 2020 and June 29, 2019, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and postretirement liability adjustments, net of a tax benefit and expense | $ 79 | $ 54 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Treasury Stock | Total |
Balance at Mar. 30, 2019 | $ 256 | $ 378,655 | $ (7,467) | $ 641,894 | $ (44,772) | $ 968,566 |
Balance (in Shares) at Mar. 30, 2019 | 25,607,196 | (752,913) | ||||
Net income | 30,499 | 30,499 | ||||
Share-based compensation | 4,802 | 4,802 | ||||
Repurchase of common stock | $ (9,514) | (9,514) | ||||
Repurchase of common stock (in Shares) | (69,877) | |||||
Exercise of equity awards | $ 1 | 275 | 276 | |||
Exercise of equity awards (in Shares) | 4,356 | |||||
Change in net prior service cost and actuarial losses, net of tax expense | 178 | 178 | ||||
Issuance of restricted stock (in Shares) | 86,490 | |||||
Impact from adoption of ASU 2018-02 | (1,289) | 1,289 | ||||
Currency translation adjustments | 2,542 | 2,542 | ||||
Balance at Jun. 29, 2019 | $ 257 | 383,732 | (6,036) | 673,682 | $ (54,286) | 997,349 |
Balance (in Shares) at Jun. 29, 2019 | 25,698,042 | (822,790) | ||||
Balance at Mar. 28, 2020 | $ 259 | 412,400 | (6,898) | 769,219 | $ (56,981) | 1,117,999 |
Balance (in Shares) at Mar. 28, 2020 | 25,881,415 | (838,982) | ||||
Net income | 22,689 | 22,689 | ||||
Share-based compensation | 5,438 | 5,438 | ||||
Repurchase of common stock | $ (4,391) | (4,391) | ||||
Repurchase of common stock (in Shares) | (31,179) | |||||
Exercise of equity awards | 231 | 231 | ||||
Exercise of equity awards (in Shares) | 4,200 | |||||
Change in net prior service cost and actuarial losses, net of tax expense | 260 | 260 | ||||
Issuance of restricted stock (in Shares) | 56,157 | |||||
Currency translation adjustments | 409 | 409 | ||||
Balance at Jun. 27, 2020 | $ 259 | $ 418,069 | $ (6,229) | $ 791,908 | $ (61,372) | $ 1,142,635 |
Balance (in Shares) at Jun. 27, 2020 | 25,941,772 | (870,161) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Change in net prior service cost and actuarial losses, net of tax expense | $ 79 | $ 54 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 22,689 | $ 30,499 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 5,892 | 5,236 |
Deferred income taxes | 2,865 | 1,153 |
Amortization of intangible assets | 2,504 | 2,284 |
Amortization of deferred financing costs | 141 | 99 |
Share-based compensation | 5,438 | 4,802 |
Other non-cash charges | 3 | (11) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 15,848 | 815 |
Inventory | (3,294) | (7,423) |
Prepaid expenses and other current assets | 1,240 | (1,052) |
Other non-current assets | (4,678) | (1,041) |
Accounts payable | 739 | 1,986 |
Accrued expenses and other current liabilities | (4,180) | 2,773 |
Other non-current liabilities | 3,152 | 16 |
Net cash provided by operating activities | 48,359 | 40,136 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (3,875) | (12,040) |
Proceeds from sale of assets | 5 | 2 |
Acquisition of business | 245 | |
Net cash used in investing activities | (3,625) | (12,038) |
Cash flows from financing activities: | ||
Repayments of revolving credit facilities | (17,000) | |
Repayments of notes payable | (122) | (117) |
Exercise of stock options | 231 | 276 |
Repurchase of common stock | (4,391) | (9,514) |
Net cash used in financing activities | (4,282) | (26,355) |
Effect of exchange rate changes on cash | (92) | 1,086 |
Cash and cash equivalents: | ||
Increase during the period | 40,360 | 2,829 |
Cash, at beginning of period | 103,255 | 29,884 |
Cash, at end of period | 143,615 | 32,713 |
Supplemental disclosures of cash flow information: | ||
Income taxes | 899 | 489 |
Interest | $ 267 | $ 408 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 27, 2020 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Basis of Presentation | 1. Basis of Presentation The interim consolidated financial statements included herein have been prepared by RBC Bearings Incorporated, a Delaware corporation (collectively with its subsidiaries, the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The interim financial statements included with this report have been prepared on a consistent basis with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 28, 2020. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). As used in this report, the terms “we,” “us,” “our,” “RBC” and the “Company” mean RBC Bearings Incorporated and its subsidiaries, unless the context indicates another meaning. These statements reflect all adjustments, accruals and estimates, consisting only of items of a normal recurring nature, that are, in the opinion of management, necessary for the fair presentation of the consolidated financial condition and consolidated results of operations for the interim periods presented. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Annual Report on Form 10-K. The results of operations for the three-month period ended June 27, 2020 are not necessarily indicative of the operating results for the entire fiscal year ending April 3, 2021. The three-month periods ended June 27, 2020 and June 29, 2019 each include 13 weeks. The amounts shown are in thousands, unless otherwise indicated. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended March 28, 2020. Significant changes to our accounting policies as a result of adopting new accounting standards are discussed below. Recent Accounting Standards Adopted In September 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment Recent Accounting Standards Yet to Be Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other new pronouncements issued but not effective until after April 3, 2021 are not expected to have a material impact on our financial position, results of operations or liquidity. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Disaggregation of Revenue The Company operates in four business segments with similar economic characteristics, including nature of the products and production processes, distribution patterns and classes of customers. Revenue is disaggregated within these business segments by our two principal end markets: aerospace and industrial. Comparative information of the Company’s overall revenues for the three-month periods ended June 27, 2020 and June 29, 2019 are as follows: Principal End Markets Three Months Ended June 27, 2020 June 29, 2019 Aerospace Industrial Total Aerospace Industrial Total Plain $ 59,352 $ 19,523 $ 78,875 $ 67,306 $ 20,183 $ 87,489 Roller 13,230 9,670 22,900 19,313 17,546 36,859 Ball 7,022 11,818 18,840 5,430 12,280 17,710 Engineered Products 19,378 16,500 35,878 24,270 16,362 40,632 $ 98,982 $ 57,511 $ 156,493 $ 116,319 $ 66,371 $ 182,690 Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders meeting the definition of a contract under Accounting Standards Codification (ASC) 606 for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of many of our contracts, as defined by ASC 606, is less than one year. The Company has elected to apply the practical expedient that allows companies to exclude remaining performance obligations with an original expected duration of one year or less. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $274,688 at June 27, 2020. The Company expects to recognize revenue on approximately 65% and 88% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. Contract Balances The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the consolidated balance sheets. Contract Assets (Unbilled Receivables) Contract Liabilities (Deferred Revenue) These assets and liabilities are reported on the consolidated balance sheets on an individual contract basis at the end of each reporting period. As of June 27, 2020 and March 28, 2020, accounts receivable with customers, net, were $113,184 and $128,995, respectively. The tables below represent a roll-forward of contract assets and contract liabilities for the three-month period ended June 27, 2020: Contract Assets - Current (1) Balance at March 28, 2020 $ 2,604 Additional revenue recognized in excess of billings 670 Less: amounts billed to customers (1,429 ) Balance at June 27, 2020 $ 1,845 (1) Included within prepaid expenses and other current assets on the consolidated balance sheets. Contract Liabilities – Current (2) Balance at March 28, 2020 $ 11,116 Payments received prior to revenue being recognized 634 Revenue recognized (6,310 ) Reclassification (to)/from noncurrent 727 Balance at June 27, 2020 $ 6,167 (2) Included within accrued expenses and other current liabilities on the consolidated balance sheets. During the first three months of fiscal 2021, the Company recognized revenues of $5,821 that were included in the contract liability balance at March 28, 2020. Contract Liabilities – Noncurrent (3) Balance at March 28, 2020 $ 2,427 Payments received prior to revenue being recognized — Reclassification (to)/from current (727 ) Balance at June 27, 2020 $ 1,700 (3) Included within other non-current liabilities on the consolidated balance sheets. As of June 27, 2020, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheet. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Jun. 27, 2020 | |
Equity Abstract | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) The components of comprehensive income (loss) that relate to the Company are net income, foreign currency translation adjustments, and pension plan and postretirement benefits. The following summarizes the activity within each component of accumulated other comprehensive income (loss), net of taxes: Currency Pension and Total Balance at March 28, 2020 $ (582 ) $ (6,316 ) $ (6,898 ) Other comprehensive income before reclassifications 409 — 409 Amounts reclassified from accumulated other comprehensive income — 260 260 Net current period other comprehensive income 409 260 669 Balance at June 27, 2020 $ (173 ) $ (6,056 ) $ (6,229 ) |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 5. Net Income Per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted net income per common share is computed by dividing net income by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options. The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per common share: Three Months Ended June 27, June 29, Net income $ 22,689 $ 30,499 Denominator for basic net income per common share—weighted-average shares outstanding 24,763,903 24,501,707 Effect of dilution due to employee stock awards 170,038 305,600 Denominator for diluted net income per common share — weighted-average shares outstanding 24,933,941 24,807,307 Basic net income per common share $ 0.92 $ 1.24 Diluted net income per common share $ 0.91 $ 1.23 At June 27, 2020, 504,768 employee stock options and 61,025 restricted shares have been excluded from the calculation of diluted earnings per share. At June 29, 2019, 373,840 employee stock options and 86,040 restricted shares have been excluded from the calculation of diluted earnings per share. The inclusion of these employee stock options and restricted shares would be anti-dilutive. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Jun. 27, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 6. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Short-term investments, if any, are comprised of equity securities and are measured at fair value by using quoted prices in active markets and are classified as Level 1 of the valuation hierarchy. |
Inventory
Inventory | 3 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 7. Inventory Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method, and are summarized below: June 27, March 28, Raw materials $ 52,310 $ 51,362 Work in process 93,496 97,286 Finished goods 225,203 218,846 $ 371,009 $ 367,494 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill Roller Plain Ball Engineered Total March 28, 2020 $ 16,007 $ 79,597 $ 5,623 $ 176,549 $ 277,776 Translation adjustments — — — 62 62 Acquisition (1) — — — (383 ) (383 ) June 27, 2020 $ 16,007 $ 79,597 $ 5,623 $ 176,228 $ 277,455 (1) Includes a reduction of goodwill recognized due to opening balance sheet adjustments made during the measurement period of the Company’s acquisition of Vianel Holding AG (“Swiss Tool”) on August 15, 2019. Intangible Assets June 27, 2020 March 28, 2020 Weighted Gross Accumulated Gross Accumulated Amortization Product approvals 24 $ 50,878 $ 13,125 $ 50,878 $ 12,597 Customer relationships and lists 23 109,696 24,731 109,645 23,557 Trade names 10 16,331 9,278 16,330 8,906 Distributor agreements 5 722 722 722 722 Patents and trademarks 16 11,775 6,167 11,553 6,045 Domain names 10 437 437 437 437 Other 3 5,182 3,782 4,633 3,468 195,021 58,242 194,198 55,732 Non-amortizable repair station certifications n/a 24,281 — 24,281 — Total 21 $ 219,302 $ 58,242 $ 218,479 $ 55,732 Amortization expense for definite-lived intangible assets for the three-month period ended June 27, 2020 was $2,504, compared to $2,284 for the three-month period ended June 29, 2019. Estimated amortization expense for the remaining nine months of fiscal 2021, the five succeeding fiscal years and thereafter is as follows: 2021 $ 7,240 2022 9,538 2023 9,456 2024 9,327 2025 8,679 2026 7,218 2027 and thereafter 85,321 |
Debt
Debt | 3 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt The balances payable under all borrowing facilities are as follows: June 27, March 28, Revolver and term loan facilities $ 18,664 $ 18,593 Debt issuance costs (1,546 ) (1,687 ) Other 6,006 6,106 Total debt 23,124 $ 23,012 Less: current portion 6,489 $ 6,429 Long-term debt $ 16,635 $ 16,583 The current portion of long-term debt as of June 27, 2020 includes the current portion of the foreign term loan, foreign revolving facility and the Schaublin mortgage, all of which are discussed below in further detail. Domestic Credit Facility The Company’s credit agreement with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swingline Lender and Letter of Credit Issuer, and the other lenders party thereto (the “Credit Agreement”) provides the Company with a $250,000 revolving credit facility (the “Revolver”), which expires on January 31, 2024. Debt issuance costs associated with the Credit Agreement totaled $852 and will be amortized through January 31, 2024 along with the unamortized debt issuance costs remaining from the Company’s prior credit agreement. Amounts outstanding under the Revolver generally bear interest at (a) a base rate determined by reference to the higher of (1) Wells Fargo’s prime lending rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) the one-month LIBOR rate plus 1%, or (b) LIBOR plus a specified margin, depending on the type of borrowing being made. The applicable margin is based on the Company’s consolidated ratio of total net debt to consolidated EBITDA at each measurement date. Currently, the Company’s margin is 0.00% for base rate loans and 0.75% for LIBOR loans. The Credit Agreement requires the Company to comply with various covenants, including among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 3.50 to 1. The Credit Agreement allows the Company to, among other things, make distributions to shareholders, repurchase its stock, incur other debt or liens, or acquire or dispose of assets provided that the Company complies with certain requirements and limitations of the Credit Agreement. As of June 27, 2020, the Company was in compliance with all such covenants. The Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Agreement, and the Company’s obligations and the domestic subsidiaries’ guarantee are secured by a pledge of substantially all of the domestic assets of the Company and its domestic subsidiaries. Approximately $3,700 of the Revolver is being utilized to provide letters of credit to secure the Company’s obligations relating to certain insurance programs. As of June 27, 2020, $1,418 in unamortized debt issuance costs remain. The Company has the ability to borrow up to an additional $246,300 under the Revolver as of June 27, 2020. Foreign Term Loan and Revolving Credit Facility On August 15, 2019, one of our foreign subsidiaries, Schaublin SA (“Schaublin”), entered into two separate credit agreements (the “Foreign Credit Agreements”) with Credit Suisse (Switzerland) Ltd. to finance the acquisition of Swiss Tool and provide future working capital. The Schaublin Credit Agreements provided Schaublin with a CHF 15,000 (approximately $15,383) term loan (the “Foreign Term Loan”), which expires on July 31, 2024 and a CHF 15,000 (approximately $15,383) revolving credit facility (the “Foreign Revolver”), which continues in effect until terminated by either Schaublin or Credit Suisse. Debt issuance costs associated with the Foreign Credit Agreements totaled CHF 270 (approximately $277) and will be amortized throughout the life of the Foreign Credit Agreements. Amounts outstanding under the Foreign Term Loan and the Foreign Revolver generally bear interest at LIBOR plus a specified margin. The applicable margin is based on Schaublin’s ratio of total net debt to consolidated EBITDA at each measurement date. Currently, Schaublin’s margin is 1.00%. The Foreign Credit Agreements require Schaublin to comply with various covenants, which are tested annually on March 31. These covenants include, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 3.00 to 1 as of March 31, 2020 and not greater than 2.50 to 1 as of March 31, 2021 and thereafter. Schaublin is also required to maintain an economic equity of CHF 20,000 at all times. The Foreign Credit Agreements allow Schaublin to, among other things, incur other debt or liens and acquire or dispose of assets provided that Schaublin complies with certain requirements and limitations of the Foreign Credit Agreements. As of March 31, 2020, Schaublin was in compliance with all such covenants. Schaublin’s parent company, Schaublin Holding, has guaranteed Schaublin’s obligations under the Foreign Credit Agreements. Schaublin Holding’s guaranty and the Foreign Credit Agreements are secured by a pledge of the capital stock of Schaublin. In addition, the Foreign Term Loan is secured with pledges of the capital stock of the top company and the three operating companies in the Swiss Tool System group of companies. As of June 27, 2020, there was approximately $2,847 outstanding under the Foreign Revolver and approximately $15,817 outstanding under the Foreign Term Loan. These borrowings have been classified as Level 2 of the valuation hierarchy. As of June 27, 2020, approximately $128 in unamortized debt issuance costs remain. Schaublin has the ability to borrow up to an additional $12,970 under the Foreign Revolver as of June 27, 2020. Schaublin’s required future annual principal payments for the next five years and thereafter are approximately $5,999 for fiscal 2021, approximately $3,163 for each year from fiscal 2022 through fiscal 2024 and approximately $3,176 for fiscal 2025. Other Notes Payable On October 1, 2012, Schaublin purchased the land and building that it occupied and had been leasing for approximately $14,910. Schaublin obtained a 20-year fixed-rate mortgage of approximately $9,857 at an interest rate of 2.9%. The balance of the purchase price of approximately $5,053 was paid from cash on hand. The balance on this mortgage as of June 27, 2020 was approximately $6,006 and has been classified as Level 2 of the valuation hierarchy. The Company’s required future annual principal payments for the next five years are approximately $490 for each year from fiscal 2021 through fiscal 2025 and $3,556 thereafter. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company files income tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including the year ending April 2, 2005. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before April 1, 2017. The effective income tax rates for the three-month periods ended June 27, 2020 and June 29, 2019, were 20.0% and 19.3%, respectively. In addition to discrete items, the effective income tax rates for these periods are different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities, which decrease the rate, and state income taxes that increase the rate. The effective income tax rate for the three-month period ended June 27, 2020 of 20.0% includes $315 of tax benefit associated with share-based compensation, along with $75 of tax benefit for the release of unrecognized tax positions associated with a statute of limitations expiration. The effective income tax rate without discrete items for the three-month period ended June 27, 2020 would have been 21.3%. The effective income tax rate for the three-month period ended June 29, 2019 of 19.3% includes discrete items of $510 of tax benefit associated with share-based compensation and $241 of tax benefit associated with other permanent adjustments from filing the Company’s fiscal 2018 foreign tax returns. The effective income tax rate without discrete items for the three-month period ended June 29, 2019 would have been 21.2%. The Company believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled within the next 12 months due to the closing of audits and the statute of limitations expiring in varying jurisdictions. The decrease in the Company’s unrecognized tax positions, pertaining primarily to federal and state credits and state tax, is estimated to be approximately $1,524. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | 11. Reportable Segments The Company operates through operating segments for which separate financial information is available, and for which operating results are evaluated regularly by the Company’s chief operating decision maker in determining resource allocation and assessing performance. Those operating segments are aggregated as reportable segments as they have similar economic characteristics, including nature of the products and production processes, distribution patterns and classes of customers. The Company has four reportable business segments, Plain Bearings, Roller Bearings, Ball Bearings and Engineered Products, which are described below. Plain Bearings. Roller Bearings. Ball Bearings. Engineered Products. Segment performance is evaluated based on segment net sales and gross margin. Items not allocated to segment operating income include corporate administrative expenses and certain other amounts. Three Months Ended June 27, June 29, Net External Sales Plain $ 78,875 $ 87,489 Roller 22,900 36,859 Ball 18,840 17,710 Engineered Products 35,878 40,632 $ 156,493 $ 182,690 Gross Margin Plain $ 32,077 $ 34,114 Roller 8,407 14,524 Ball 7,927 7,799 Engineered Products 11,042 14,257 $ 59,453 $ 70,694 Selling, General & Administrative Expenses Plain $ 5,271 $ 6,514 Roller 1,239 1,614 Ball 1,346 1,633 Engineered Products 3,812 4,303 Corporate 15,161 16,023 $ 26,829 $ 30,087 Operating Income Plain $ 25,401 $ 26,825 Roller 7,099 12,570 Ball 6,551 6,137 Engineered Products 5,981 9,002 Corporate (16,218 ) (16,044 ) $ 28,814 $ 38,490 Intersegment Sales Plain $ 1,562 $ 1,847 Roller 3,378 3,201 Ball 667 669 Engineered Products 10,649 10,822 $ 16,256 $ 16,539 All intersegment sales are eliminated in consolidation. |
Acquisition
Acquisition | 3 Months Ended |
Jun. 27, 2020 | |
Acquisition [Abstract] | |
Acquisition | 12. Acquisition On August 15, 2019, the Company, through its Schaublin SA subsidiary, acquired all of the outstanding shares of Swiss Tool for a purchase price of approximately $33,597 (CHF 32,768). We have finalized the purchase price allocation with no material adjustments subsequent to March 28, 2020. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Standards Adopted | Recent Accounting Standards Adopted In September 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment |
Recent Accounting Standards Yet to Be Adopted | Recent Accounting Standards Yet to Be Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other new pronouncements issued but not effective until after April 3, 2021 are not expected to have a material impact on our financial position, results of operations or liquidity. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from business segments of customers | Three Months Ended June 27, 2020 June 29, 2019 Aerospace Industrial Total Aerospace Industrial Total Plain $ 59,352 $ 19,523 $ 78,875 $ 67,306 $ 20,183 $ 87,489 Roller 13,230 9,670 22,900 19,313 17,546 36,859 Ball 7,022 11,818 18,840 5,430 12,280 17,710 Engineered Products 19,378 16,500 35,878 24,270 16,362 40,632 $ 98,982 $ 57,511 $ 156,493 $ 116,319 $ 66,371 $ 182,690 |
Schedule of contract assets and contract liabilities | Contract Assets - Current (1) Balance at March 28, 2020 $ 2,604 Additional revenue recognized in excess of billings 670 Less: amounts billed to customers (1,429 ) Balance at June 27, 2020 $ 1,845 (1) Included within prepaid expenses and other current assets on the consolidated balance sheets. Contract Liabilities – Current (2) Balance at March 28, 2020 $ 11,116 Payments received prior to revenue being recognized 634 Revenue recognized (6,310 ) Reclassification (to)/from noncurrent 727 Balance at June 27, 2020 $ 6,167 (2) Included within accrued expenses and other current liabilities on the consolidated balance sheets. During the first three months of fiscal 2021, the Company recognized revenues of $5,821 that were included in the contract liability balance at March 28, 2020. Contract Liabilities – Noncurrent (3) Balance at March 28, 2020 $ 2,427 Payments received prior to revenue being recognized — Reclassification (to)/from current (727 ) Balance at June 27, 2020 $ 1,700 (3) Included within other non-current liabilities on the consolidated balance sheets. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of component of accumulated other comprehensive income (loss) | Currency Pension and Total Balance at March 28, 2020 $ (582 ) $ (6,316 ) $ (6,898 ) Other comprehensive income before reclassifications 409 — 409 Amounts reclassified from accumulated other comprehensive income — 260 260 Net current period other comprehensive income 409 260 669 Balance at June 27, 2020 $ (173 ) $ (6,056 ) $ (6,229 ) |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule basic and diluted net income per common share | Three Months Ended June 27, June 29, Net income $ 22,689 $ 30,499 Denominator for basic net income per common share—weighted-average shares outstanding 24,763,903 24,501,707 Effect of dilution due to employee stock awards 170,038 305,600 Denominator for diluted net income per common share — weighted-average shares outstanding 24,933,941 24,807,307 Basic net income per common share $ 0.92 $ 1.24 Diluted net income per common share $ 0.91 $ 1.23 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | June 27, March 28, Raw materials $ 52,310 $ 51,362 Work in process 93,496 97,286 Finished goods 225,203 218,846 $ 371,009 $ 367,494 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill balances, by segment | Roller Plain Ball Engineered Total March 28, 2020 $ 16,007 $ 79,597 $ 5,623 $ 176,549 $ 277,776 Translation adjustments — — — 62 62 Acquisition (1) — — — (383 ) (383 ) June 27, 2020 $ 16,007 $ 79,597 $ 5,623 $ 176,228 $ 277,455 (1) Includes a reduction of goodwill recognized due to opening balance sheet adjustments made during the measurement period of the Company’s acquisition of Vianel Holding AG (“Swiss Tool”) on August 15, 2019. |
Schedule of intangible assets | June 27, 2020 March 28, 2020 Weighted Gross Accumulated Gross Accumulated Amortization Product approvals 24 $ 50,878 $ 13,125 $ 50,878 $ 12,597 Customer relationships and lists 23 109,696 24,731 109,645 23,557 Trade names 10 16,331 9,278 16,330 8,906 Distributor agreements 5 722 722 722 722 Patents and trademarks 16 11,775 6,167 11,553 6,045 Domain names 10 437 437 437 437 Other 3 5,182 3,782 4,633 3,468 195,021 58,242 194,198 55,732 Non-amortizable repair station certifications n/a 24,281 — 24,281 — Total 21 $ 219,302 $ 58,242 $ 218,479 $ 55,732 |
Schedule of estimated amortization expense | 2021 $ 7,240 2022 9,538 2023 9,456 2024 9,327 2025 8,679 2026 7,218 2027 and thereafter 85,321 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 27, March 28, Revolver and term loan facilities $ 18,664 $ 18,593 Debt issuance costs (1,546 ) (1,687 ) Other 6,006 6,106 Total debt 23,124 $ 23,012 Less: current portion 6,489 $ 6,429 Long-term debt $ 16,635 $ 16,583 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Three Months Ended June 27, June 29, Net External Sales Plain $ 78,875 $ 87,489 Roller 22,900 36,859 Ball 18,840 17,710 Engineered Products 35,878 40,632 $ 156,493 $ 182,690 Gross Margin Plain $ 32,077 $ 34,114 Roller 8,407 14,524 Ball 7,927 7,799 Engineered Products 11,042 14,257 $ 59,453 $ 70,694 Selling, General & Administrative Expenses Plain $ 5,271 $ 6,514 Roller 1,239 1,614 Ball 1,346 1,633 Engineered Products 3,812 4,303 Corporate 15,161 16,023 $ 26,829 $ 30,087 Operating Income Plain $ 25,401 $ 26,825 Roller 7,099 12,570 Ball 6,551 6,137 Engineered Products 5,981 9,002 Corporate (16,218 ) (16,044 ) $ 28,814 $ 38,490 Intersegment Sales Plain $ 1,562 $ 1,847 Roller 3,378 3,201 Ball 667 669 Engineered Products 10,649 10,822 $ 16,256 $ 16,539 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Aggregate amount of the transaction price allocated to remaining performance obligations | $ 274,688 | |
Revenue recognize remaining performance obligations | The Company expects to recognize revenue on approximately 65% and 88% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. | |
Accounts receivable with customers, net | $ 113,184 | $ 128,995 |
Revenue recognized included in the contract liability | $ 5,821 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - Schedule of revenue from business segments of customers - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | $ 156,493 | $ 182,690 |
Plain [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 78,875 | 87,489 |
Roller [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 22,900 | 36,859 |
Ball [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 18,840 | 17,710 |
Engineered Products [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 35,878 | 40,632 |
Aerospace [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 98,982 | 116,319 |
Aerospace [Member] | Plain [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 59,352 | 67,306 |
Aerospace [Member] | Roller [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 13,230 | 19,313 |
Aerospace [Member] | Ball [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 7,022 | 5,430 |
Aerospace [Member] | Engineered Products [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 19,378 | 24,270 |
Industrial [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 57,511 | 66,371 |
Industrial [Member] | Plain [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 19,523 | 20,183 |
Industrial [Member] | Roller [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 9,670 | 17,546 |
Industrial [Member] | Ball [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 11,818 | 12,280 |
Industrial [Member] | Engineered Products [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | $ 16,500 | $ 16,362 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Details) - Schedule of contract assets and contract liabilities $ in Thousands | 3 Months Ended | |
Jun. 27, 2020USD ($) | ||
Contract Assets - Current (1) | ||
Balance at March 28, 2020 | $ 2,604 | [1] |
Additional revenue recognized in excess of billings | 670 | [1] |
Less: amounts billed to customers | (1,429) | [1] |
Balance at June 27, 2020 | 1,845 | [1] |
Contract Liabilities – Current (2) | ||
Balance at March 28, 2020 | 11,116 | [2] |
Payments received prior to revenue being recognized | 634 | [2] |
Revenue recognized | (6,310) | [2] |
Reclassification (to)/from noncurrent | 727 | [2] |
Balance at June 27, 2020 | 6,167 | [2] |
Contract Liabilities – Noncurrent (3) | ||
Balance at March 28, 2020 | 2,427 | [3] |
Payments received prior to revenue being recognized | [3] | |
Reclassification (to)/from current | (727) | [3] |
Balance at June 27, 2020 | $ 1,700 | [3] |
[1] | Included within prepaid expenses and other current assets on the consolidated balance sheets. | |
[2] | Included within accrued expenses and other current liabilities on the consolidated balance sheets. During the first three months of fiscal 2021, the Company recognized revenues of $5,821 that were included in the contract liability balance at March 28, 2020. | |
[3] | Included within other non-current liabilities on the consolidated balance sheets. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - Schedule of component of accumulated other comprehensive income (loss) $ in Thousands | 3 Months Ended |
Jun. 27, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ (6,898) |
Other comprehensive income before reclassifications | 409 |
Amounts reclassified from accumulated other comprehensive income | 260 |
Net current period other comprehensive income | 669 |
Ending balance | (6,229) |
Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (582) |
Other comprehensive income before reclassifications | 409 |
Net current period other comprehensive income | 409 |
Ending balance | (173) |
Pension and Postretirement Liability [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (6,316) |
Amounts reclassified from accumulated other comprehensive income | 260 |
Net current period other comprehensive income | 260 |
Ending balance | $ (6,056) |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Employee Stock Options [Member] | ||
Net Income Per Common Share (Details) [Line Items] | ||
Number of employee stock options and restricted shares excluded from calculation of diluted earnings per share | 504,768 | 373,840 |
Restricted Shares [Member] | ||
Net Income Per Common Share (Details) [Line Items] | ||
Number of employee stock options and restricted shares excluded from calculation of diluted earnings per share | 61,025 | 86,040 |
Net Income Per Common Share (_2
Net Income Per Common Share (Details) - Schedule basic and diluted net income per common share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Schedule basic and diluted net income per common share [Abstract] | ||
Net income (in Dollars) | $ 22,689 | $ 30,499 |
Denominator for basic net income per common share—weighted-average shares outstanding | 24,763,903 | 24,501,707 |
Effect of dilution due to employee stock awards | 170,038 | 305,600 |
Denominator for diluted net income per common share — weighted-average shares outstanding | 24,933,941 | 24,807,307 |
Basic net income per common share (in Dollars per share) | $ 0.92 | $ 1.24 |
Diluted net income per common share (in Dollars per share) | $ 0.91 | $ 1.23 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) $ in Thousands | Jun. 27, 2020 | Mar. 28, 2020 |
Schedule of inventory [Abstract] | ||
Raw materials | $ 52,310 | $ 51,362 |
Work in process | 93,496 | 97,286 |
Finished goods | 225,203 | 218,846 |
Inventory, Net, Total | $ 371,009 | $ 367,494 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2,504 | $ 2,284 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - Schedule of goodwill balances, by segment $ in Thousands | 3 Months Ended | |
Jun. 27, 2020USD ($) | ||
Goodwill [Line Items] | ||
Balance at beginning | $ 277,776 | |
Translation adjustments | 62 | |
Acquisition | (383) | [1] |
Balance at end | 277,455 | |
Roller [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 16,007 | |
Translation adjustments | ||
Acquisition | [1] | |
Balance at end | 16,007 | |
Plain [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 79,597 | |
Translation adjustments | ||
Acquisition | [1] | |
Balance at end | 79,597 | |
Ball [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 5,623 | |
Translation adjustments | ||
Acquisition | [1] | |
Balance at end | 5,623 | |
Engineered Products [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 176,549 | |
Translation adjustments | 62 | |
Acquisition | (383) | [1] |
Balance at end | $ 176,228 | |
[1] | Includes a reduction of goodwill recognized due to opening balance sheet adjustments made during the measurement period of the Company’s acquisition of Vianel Holding AG (“Swiss Tool”) on August 15, 2019. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - Schedule of intangible assets - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Mar. 28, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 195,021 | $ 194,198 |
Accumulated Amortization | $ 58,242 | 55,732 |
Non-amortizable repair station certifications, Weighted Average Useful Lives | n/a | |
Non-amortizable repair station certifications, Gross Carrying Amount | $ 24,281 | 24,281 |
Non-amortizable repair station certifications, Accumulated Amortization | ||
Total, Weighted Average Useful Lives | 21 years | |
Total, Gross Carrying Amount | $ 219,302 | 218,479 |
Total, Accumulated Amortization | $ 58,242 | 55,732 |
Product Approvals [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | $ 50,878 | 50,878 |
Accumulated Amortization | $ 13,125 | 12,597 |
Customer Relationships And Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 23 years | |
Gross Carrying Amount | $ 109,696 | 109,645 |
Accumulated Amortization | $ 24,731 | 23,557 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | $ 16,331 | 16,330 |
Accumulated Amortization | $ 9,278 | 8,906 |
Distributor Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 5 years | |
Gross Carrying Amount | $ 722 | 722 |
Accumulated Amortization | $ 722 | 722 |
Patents And Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 16 years | |
Gross Carrying Amount | $ 11,775 | 11,553 |
Accumulated Amortization | $ 6,167 | 6,045 |
Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | $ 437 | 437 |
Accumulated Amortization | $ 437 | 437 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 3 years | |
Gross Carrying Amount | $ 5,182 | 4,633 |
Accumulated Amortization | $ 3,782 | $ 3,468 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details) - Schedule of estimated amortization expense $ in Thousands | Jun. 27, 2020USD ($) |
Schedule of estimated amortization expense [Abstract] | |
2021 | $ 7,240 |
2022 | 9,538 |
2023 | 9,456 |
2024 | 9,327 |
2025 | 8,679 |
2026 | 7,218 |
2027 and thereafter | $ 85,321 |
Debt (Details)
Debt (Details) SFr in Thousands, $ in Thousands | Aug. 15, 2019USD ($) | Oct. 01, 2012USD ($) | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Aug. 15, 2019CHF (SFr) |
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 141 | $ 99 | |||
Future annual principal payments in Fiscal 2021 | 490 | ||||
Future annual principal payments in Fiscal 2023 | 490 | ||||
Future annual principal payments in Fiscal 2024 | 490 | ||||
Future annual principal payments in Fiscal 2025 | 490 | ||||
Future annual principal payments in Fiscal 2022 | 490 | ||||
Future annual principal payments in Fiscal thereafter | 3,556 | ||||
Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 3,700 | ||||
Unamortized debt issuance costs | $ 1,418 | ||||
Debt instrument, description of variable rate basis | Amounts outstanding under the Revolver generally bear interest at (a) a base rate determined by reference to the higher of (1) Wells Fargo’s prime lending rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) the one-month LIBOR rate plus 1%, or (b) LIBOR plus a specified margin, depending on the type of borrowing being made. The applicable margin is based on the Company’s consolidated ratio of total net debt to consolidated EBITDA at each measurement date. Currently, the Company’s margin is 0.00% for base rate loans and 0.75% for LIBOR loans. | ||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Line of credit facility, remaining borrowing capacity | $ 246,300 | ||||
Foreign Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | $ 12,970 | ||||
Amended Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated net debt adjusted EBITDA ratio | 3.50 | ||||
Amended Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated net debt adjusted EBITDA ratio | 1 | ||||
Amended Credit Agreement [Member] | Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 250,000 | ||||
Debt instrument expiry date | Jan. 31, 2024 | ||||
Unamortized debt issuance costs | $ 852 | ||||
Schaublin Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 277 | ||||
Schaublin [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 128 | ||||
Future annual principal payments in Fiscal 2021 | 5,999 | ||||
Future annual principal payments in Fiscal 2022 | 3,163 | ||||
Future annual principal payments in Fiscal 2023 | 3,163 | ||||
Future annual principal payments in Fiscal 2024 | 3,163 | ||||
Future annual principal payments in Fiscal 2025 | 3,176 | ||||
Cash paid for purchase price | $ 5,053 | ||||
Balance on mortgage loan | 6,006 | ||||
Schaublin [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Schaublin [Member] | Foreign Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 15,383 | SFr 15,000 | |||
Credit facility outstanding amount | 15,817 | ||||
Schaublin [Member] | Foreign Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 15,383 | SFr 15,000 | |||
Credit facility outstanding amount | $ 2,847 | ||||
Schaublin [Member] | Foreign Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit covenant terms | The Foreign Credit Agreements require Schaublin to comply with various covenants, which are tested annually on March 31. These covenants include, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 3.00 to 1 as of March 31, 2020 and not greater than 2.50 to 1 as of March 31, 2021 and thereafter. Schaublin is also required to maintain an economic equity of CHF 20,000 at all times. | ||||
Schaublin [Member] | Land and Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Land and building leased | $ 14,910 | ||||
Period for fixed rate on mortgage loan | Schaublin obtained a 20-year fixed-rate mortgage of approximately $9,857 at an interest rate of 2.9%. | ||||
Mortgage loan fixed rate | $ 9,857 | ||||
Mortgage loan interest rate | 2.90% |
Debt (Details) - Schedule of de
Debt (Details) - Schedule of debt - USD ($) $ in Thousands | Jun. 27, 2020 | Mar. 28, 2020 |
Schedule of debt [Abstract] | ||
Revolver and term loan facilities | $ 18,664 | $ 18,593 |
Debt issuance costs | (1,546) | (1,687) |
Other | 6,006 | 6,106 |
Total debt | 23,124 | 23,012 |
Less: current portion | 6,489 | 6,429 |
Long-term debt | $ 16,635 | $ 16,583 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at the federal statutory rate | 20.00% | 19.30% |
Income tax provision at the federal statutory rate reduced | 20.00% | |
U.S. corporate income tax rate amount | $ 315 | $ 510 |
Unrecognized tax positions associated with shared -based compensation | $ 75 | $ 241 |
Effective income tax rate without discrete | 21.30% | 21.20% |
Estimated decrease in unrecognized tax positions in federal and state credits and state tax | $ 1,524 |
Reportable Segments (Details)
Reportable Segments (Details) | 3 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 4 |
Reportable Segments (Details) -
Reportable Segments (Details) - Schedule of segment information - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Net External Sales | ||
Net External Sales | $ 156,493 | $ 182,690 |
Gross Margin | ||
Gross Margin | 59,453 | 70,694 |
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 26,829 | 30,087 |
Operating Income | ||
Operating Income | 28,814 | 38,490 |
Intersegment Sales | ||
Intersegment Sales | 16,256 | 16,539 |
Plain [Member] | ||
Net External Sales | ||
Net External Sales | 78,875 | 87,489 |
Gross Margin | ||
Gross Margin | 32,077 | 34,114 |
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 5,271 | 6,514 |
Operating Income | ||
Operating Income | 25,401 | 26,825 |
Intersegment Sales | ||
Intersegment Sales | 1,562 | 1,847 |
Roller [Member] | ||
Net External Sales | ||
Net External Sales | 22,900 | 36,859 |
Gross Margin | ||
Gross Margin | 8,407 | 14,524 |
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 1,239 | 1,614 |
Operating Income | ||
Operating Income | 7,099 | 12,570 |
Intersegment Sales | ||
Intersegment Sales | 3,378 | 3,201 |
Ball [Member] | ||
Net External Sales | ||
Net External Sales | 18,840 | 17,710 |
Gross Margin | ||
Gross Margin | 7,927 | 7,799 |
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 1,346 | 1,633 |
Operating Income | ||
Operating Income | 6,551 | 6,137 |
Intersegment Sales | ||
Intersegment Sales | 667 | 669 |
Engineered Products [Member] | ||
Net External Sales | ||
Net External Sales | 35,878 | 40,632 |
Gross Margin | ||
Gross Margin | 11,042 | 14,257 |
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 3,812 | 4,303 |
Operating Income | ||
Operating Income | 5,981 | 9,002 |
Intersegment Sales | ||
Intersegment Sales | 10,649 | 10,822 |
Corporate [Member] | ||
Selling, General & Administrative Expenses | ||
Selling, General & Administrative Expenses | 15,161 | 16,023 |
Operating Income | ||
Operating Income | $ (16,218) | $ (16,044) |
Acquisition (Details)
Acquisition (Details) - Aug. 15, 2019 SFr in Thousands, $ in Thousands | USD ($) | CHF (SFr) |
Disclosure Text Block Supplement [Abstract] | ||
Purchase price | $ 33,597 | SFr 32,768 |