ROLL - Earnings call transcript Q2 2021 | RBC Bearings Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

[00:00:02] Good morning, ladies and gentlemen, and welcome to the RBC Bearings fiscal two thousand twenty one second quarter earnings conference call. At this time, all the participants lines are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. If anyone should require assistance during the conference, please. Press star then Zober on your touchtone telephone.

conference being this reminder, a call recorded. is As turn over to want to host, conference to like I your the Michael Cummings. Please with IR? go Alpha ahead.

Michael Cummings

chief Bering's vice president in president officer. the officer. Thank us today director, are financial quarter [XX:XX:XX] vice for J. call president executive conference fiscal Hartnett, And officer, Michael RBC Bertran, chairman, earnings me morning. operating second chief XXXX Robert and With Good call. and chief Dr. Sullivan, one and you for joining Daniel

to Before today looking These you Private Barron's statements made a a in beginning greater from of me also some could impact detail with that SBC you materially the projected company's discussion remind the the results refer differ operating Act factors those today's release the condition. future call, website. press to filings RBC in will variety let or risks XXXX. of of for the of may due recent financial Actual Securities are under a and that factors. and made Litigation detailed Reform forward on more results in We be described are company's implied

the financial on In cat between and part non is the and is addition, included as cat of company's website. reconciliation release available information

Now I'll Hartnett. Dr. turn the call over to

Michael Hartnett

to percent twenty point twenty one percent eight on in the of and extraordinary needed. were our the place million overall the and quarter sales margin four year. million, same point protect but employees use forty level percent twenty due million two and enhanced percent health three and we're we business. continued cash [XX:XX:XX] just four we well-being vendors point was our EBITDA consolidated twenty point impact to and point million the nine that, measures entered sixty XX eight basis, on of and penetrated of eight sales. one four quarter the the twenty income Again, seventy three point nine of sales. six XX in quarter of net Aerospace nine percent two point million a debt. the ended of fifty to fiscal percent, point hundred Adjusted twenty for one. represented same point decrease morning thirty point sales. [XX:XX:XX] point year, fiscal six sales Sales and six the point and were percent XXXX or of eight period four one last fifty quarter welcome adjusted for Thank gross one net nine percent two of call, margins to period of That and Mike, year percent. for percent compares was one XX nineteen industrial and for one for same percent forty last the net second and eighty one year the million, quarter net one you, of versus last or six good our million hundred period with We uncertainty happy and XX net visibility represented five better second the [XX:XX:XX] sales EPS conference sales the of hundred million million point net point thirty with second We with products a point operating one XXXX remained and of to compared products on nine last to about net to very compared where the pandemic The demand, gross for

[XX:XX:XX] last four percent industrial the point our United were variance impact year We oil both States industrial down distributors minimal industrial continuing aftermarket twenty and speed of in to see our plants of sales wind point trains from last percent continue We up producers [XX:XX:XX] space and energy, fall and continues the in sequentially over economy vehicles, ten mining eight resources military from the aerospace, Sales year. percent were there the industrial down three and to of percent. high up nine as news that and Distribution from were eight period. equipment with two point defense. markets Good demand on to recovers, [XX:XX:XX] fruit semiconductor Europe. natural prime The sales of measure commercial in and operate that the safety to fabrication, products two health employees. point in for was strength

Second helicopters, twenty engines, levels. contracted eight offset OEM and a defense missiles twenty aircraft for defense continues point align clear. be drivers sales aircraft and four three twenty remains. percent, aftermarket point and percent. XXXX Pressure reworking five schedules builders increased OEM and and one by not four our and our continue to still we chain decrease products is demand eight travel commercial space. supply percent tuning commercial quarter commercial important [XX:XX:XX] The capacity net of Aerospace new And outlook fiscal of fine production to aerospace for the supply on to aircraft. point four in aftermarket

are Dan over expand between the couldn't current forty fully and But we are priority work resources where is time the one million priority we dollars. one address offering We the our the while our hundred for to detail doldrums and more million to for quarter, and doing regard on financial be plant portfolios airplane were content projects develop commercial making supply projects, which third performance. are to consolidation products priorities when remains now and the agenda the capacity progress good production we five Business further of to more defense using future, that, for our expecting in in With sales forty our the call are space and to hundred turn systems, our future wisely our aircraft. these through and developing and high topics. we paramount. expect And

Daniel Bergeron

[XX:XX:XX] Thanks, Mike.

zero same twenty same the same percent per year Chainey to same year. the compared basis, one operating for decrease in same of income two million thirty quarter point compared two the diluted of in two of ninety million of quarter second turned Other eight point point per to nine XXXX fiscal the point percent to second million to four per Capital last quarter to quarter second income of of per operating assets million with a the second for from point XXXX four same the for [XX:XX:XX] three share, earnings amortization million. the million XXXX point hundred of cost income million quarter thirty quarter of to Total last with for dollar three three two the expense other As company six to last quarter and share eight fiscal and fiscal intangible twenty nine the XXXX. six on eight was related of year last fiscal for one, cash zero net period of last the two million to four one, the operating fiscal. for restructuring of was and cents of income one for last million expensive due adjusted lower of in of for other of to personnel second for operator two an four operating one, quarter eighty XXXX expense six point last same operating period income point call mainly second fiscal of same to fiscal per of compared have consisted the compared I was the compared one, sixteen quarter quarter share per percentage point point to of share hand assets to of would period two net of zero begin one year income the zero thirty for the one costs was expenses costs, point generated million Second operating twenty million same year. would net adjusted second turn second the same fiscal, nine million dollar two quarter XXXX period fiscal million of for point amortization share Diluted million intangible year. was cents point acquisition million. six for of period company of thirty compared one into million million flow, compared point an by non fiscal mainly earnings XXXX million one six million last of an XXXX zero of point compared and same twenty comprised point fiscal was two the second period share one year. eight related for period at XXXX point by nine million the same I, cash in six sixty of XXXX and of have of the other Operating the million were items. quarter offset point income a last were net to of four year. other second expense items, twenty compared was last four period point mainly other of XXXX year. second fiscal compared one point one, was period debt year cash XXXX twenty one, for the for seven fiscal EPS XXXX thirty for million period on three one On last twenty adjusted expenditures reported for million one, as compared second point expenses been related Q&A offset would point three the income basis. for of point Other fiscal three the for and the On income period second the adjusted the compared zero one like the point thirty XXXX million five point fiscal an session. million quarter now period six basis, twenty four The five was adjusted two for million to sales, three activities back operating year. quarter point a as the two point one been million, the nine point twenty XXXX one, to seventeen to adjusted items XXXX for million four operating in the as for twenty net of one, for

Operator

the and at press this number [XX:XX:XX] a your on you touchtone the question time, if gentlemen, Ladies please star and telephone. then have key one

answered or you has key. pound queue, remove If the from wish to question press your the please been yourself

Steve what Your the question KeyBanc Barger is line of Markets. with first Capital

Steve Barger

XX XQ XX guidance to good minus, in or in another morning, had your is year juku and what similar revenue XX. percent suggests very revenue guys. in your you [XX:XX:XX] aerospace plus year, decline over Hey, comp

do expect mid you for XX decline So another XQ? percent in Arrow

Michael Hartnett

Yes. right. that's about [XX:XX:XX]

Steve Barger

restructuring [XX:XX:XX] revenue of great. your And will lower with before that? be what still OK, the margin you expect do or Can like anything near aerospace? gross lower XX you the percent even and level mix be

Daniel Bergeron

on quarter, than be it's QX, softer [XX:XX:XX] in our than QX a that but little Yeah, QX. little our Steve, was shortest in little QX, think a in I in will it it was know so a stronger QX

Steve Barger

[XX:XX:XX] really Ok, yeah, that's great.

that's mix I the moving are recently margin? that gross that and restructuring the you offsets? against that to allowing the maintain you've With Is what guess, you, taken actions

Michael Hartnett

[XX:XX:XX] Steve. things Well, couple of there, a

have of short the QX they many Gates approval and the all, the these December? one get because at of And of specialized We will. through of lead to to of the products if will. work just long who processes don't becomes very us. nature it's our products will overall, inspectors the government OEM a talk or quarter required. First produce know have in about we our for question will Yeah, always they plants, We the times

corrected. the a what of little doing quarter designs. at so it that kind nature we're OK, gets It long year. all doesn't our get fourth of of disproportionately shipped the some this us get is. in puts all the So a It short is just shipped fourth gets quarter, And hedging in is quarter disadvantage The quarter, the the and normally regard. It's third complex here. it case. it in it's more

First capital and the to just you there's fight in are improved of of year, know, what I'm So a those terms maturing number [XX:XX:XX] of actually can't margins it a fight the can't we've quite on. trying projects you do bit going of I'm I'm with they're contributing. things time over effort years just factory and the government. and and all, is I just, I for just, you know, I do the know, the And automation. like can invested our just calendar some

margin, I you're which element. going accrual, element So tell can't me margin. to to that the exactly you the the ask contributes what next. that's I one know

So I don't know that number.

in we insource approvals the gain in new to continue and processes those sort our we processes approvals suppliers that secondly, these And of are to the as are to Secondly, our of specialized the a for these plants. few these plants had past our the plants to outsourced industry. that these for unique processes for impact

execution. only there's mix saves to not we of to And third the to save save it service costs the who's dozen think plain it's there's it. sometimes work, better improvements do transportation those So and the often factory the finally in Yeah, party, we having third is amount parties states us takes we but and I two that frame the cost a away. time cost have just of of been

Steve Barger

Understood. [XX:XX:XX]

you out balance know I'll while balance addressing of conditions defense? a get something ask because for current trends in build acquisition Should maintaining was on that sheet or urgent that you're release? and press that looking the space organic and that you don't preserving defense, the in also different. and at in since space space defense sheet looking in you're you're a to of comment number, Can So opportunities we think opportunities healthy front in needs the and

Michael Hartnett

inventory [XX:XX:XX] we're to, you achieve maintain you working know, levels sheet, we over. the Well. you hard know, certain know, balance

of was our at several it going requirement. to base a the mind Over that run with consistent that They're the now service customer years base. customer to past lower

you know, over inventories obvious some So we that, you know, of and liquidate we, that it's to need be time. our we'll doing

part just that's here. just the process part that's of So of the

just, you aerospace. call All is are You developing people I making And of making Business know, headlines And, that. want a those we we the our it's great space are making know, advanced guys as of are defense. be that concepts with. their future you just every the and in progress. we're we're working we And, that look space are the and day new know, at to the are meantime, sort organically know, we we're of it priority. exciting the part you

for mean, cash. ask me going So going I'm what's Yeah. think on question we're with always on your going finally And next do that's there. side. we I sure. is we're I to the the the to looking acquisition all what

we're strong And securities the companies than right we're and businesses today there's not in that where with we we synergies scale. service there's the we so our invest and short going to greater And And And we like term, in brands. cash [XX:XX:XX] right there long tomorrow the strong that cash. for liquid more out they're find look markets common can to term, that with generate service acquisitions field disappointing And and a it's in now. going space. something

tell will time it. know, you So,

Steve Barger

you. Thank Know. Good. [XX:XX:XX]

Operator

press [XX:XX:XX] number be on Again, one keypad. to then ask star, a your telephone question, please,

of the the with is Mike question securities. next Ciarmoli from Truist line Your

Unidentified Analyst

Good morning, Mike, Australind aerospace from a is of questions the and this on market. on [XX:XX:XX] couple Pete

production the on and like First, Is near-term? you destocking of to levels inventory what last through is expect view customers. view could your It be channel that aligning we're with hearing seems your year. how current about the your consistent that first next do half in

Michael Hartnett

has [XX:XX:XX] XXX mean, but view. building. they Well, that's Boeing I XXX, XXX, completely mean, they consistent had I with think our I kept now Max.

do taxes of half we'd maxes to of next see that. So like them we'd I course, year. to the is liquidate that expectation more And guess they'll And, there's now. those like

overall you we've our the plane what's today. middle. and of considerable subcontractor build positioning So, you is rates know, content we've study, to with what is the after, adjusted subcontractor's in that with subcontractor, accordance and we of And inventory done our production in plane by expect rates yes, work by know, the

Unidentified Analyst

you flow distributors and to have currently So stabilized, [XX:XX:XX] or order demand aftermarket stocked? then has do view as a a are specifically, how

Michael Hartnett

talking way. know, than to planes the That's aftermarket aircraft I'd maintained. of it the going lead Boeing isn't everybody's business. just, They Yeah, from that the the from are going say to to aerospace, the to And guess be be the aerospace? think mean, satisfy the better is. demand you we're to It's is lead to that's I the you aerospace, as well, recovery the I Yeah, [XX:XX:XX] older. going to industrial have to, need it's are we aftermarket rate expected. demand going we see know, in production or we demand. future that's you

I twenty service. those begin into planes So health. And think people their come have are as I secure thousand they to will think more as travel to feel to old ages, about two one going

Unidentified Analyst

very you Thank much. [XX:XX:XX]

Operator

am showing would I back turn to further [XX:XX:XX] to conference Mr. like the not Hartnett. no at this time, I questions

Michael Hartnett

was in [XX:XX:XX] that's OK, And we a was January. Ok, well, you for that in speaking late RBC. again you And well, that be will call. to interest our good I in thank your think sign. shortest conference

Operator

for Thank [XX:XX:XX] today's a This concludes you wonderful conference. participation day. and your have

You disconnect. may all

Michael Cummings	IR, Alpha IR Group
Michael Hartnett	Chairman, President and CEO
Daniel Bergeron	VP and COO
Robert Sullivan	VP, CFO
Steve Barger	KeyBanc Capital Markets

RBC Bearings (RBC) 30 Oct 202021 Q2 Earnings call transcript