ROLL - Earnings call transcript Q4 2022 | RBC Bearings Incorporated

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Operator

Good day! And thank you for standing by. Welcome to the RBC Bearings, Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please hand over Investor to would now speaker conference to like Carroll, I your the today, Relations. Josh ahead. go Please

Josh Carroll

and Good Sullivan, Chairman, call. Vice Operating With Financial RBC on us Bergeron, Chief the quarter morning! Director, Dr. for President Vice Chief me full fiscal Officer; Michael Executive is Hartnett, Daniel and conference XXXX, Chief fourth and and And for earnings year President call you President Robert thank and Officer. Bearings joining Officer;

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

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

Dr. Now, to turn I’ll the call Hartnett. over

Dr. Michael Hartnett

this following of good Rob details and of and period last of Bearings for same Okay, thank $XXX.X highlights discuss were and welcome. of an versus fiscal – increase $XXX.X fourth Josh, million the sales XXXX for the you net me the XXXX XXX.X%. fourth quarter quarter of morning Dan third for of RBC quarter the and year, I’ll present our the some summary. will million

XX.X%, period was increase. revenues. last quarter, XX.X% of Adjusted per million, our of products to XX.X% overall same sales respectively. were year this these revenues and of share two revenue, Five period the diluted $X.XX sales. extraordinary $XXX.X the million gross $XX.X RBCs and was million with or month and fiscal XX.X% full sales, was quarter the of business EPS clear for a record Industrials we $XXX.X or million Industrial same $X.XX was XXX% was are share for three Adjusted represented compares net EPS of million income performance Dodge of margin year. Adjusted a net share EPS fourth XX% and XX% It's net of compares last million, complementary EPS the cohesion, period sales. the XXXX the $XXX $XXX.X for speed of the XXX% and to quarter million, of the EBITDA million. for for the months revenues was ownership per compared and $XX.X of integration the XX.X% XX.X% and increase. which aerospace products quarter share very year year, sales with net For $XX.X businesses. industrial of was for of This represented for Revenues last thrilled were our the Dodge management cash diluted or and Adjusted full adjusted net and cash a per $X.XX of to operating $XXX.X million fourth $XXX.X year's period. $X.XX This

industrial aerospace. talk and let's sectors, bit little about our Now a

of exceed the our both of During and suppliers. industrial demand for to our some capacity period that products continued

on The constraints test many continue our problem over second reduced see worked through the have the and during we’ll quarter. to head our months relief have tirelessly these next and we will as We some us impact few into revenues. past months,

because on XXX% acquisition basis, quarter-over-quarter about of a Dodge mainly up November. were the completed businesses industrial Our in

the with Industrial classic for both range. mid-teens OEM distribution, both for expanding and approximately in XX% RBC the distribution expanded businesses base OEM Your and

total stated strong. and were revenues million industrial from As industrial served oil earlier, very was demand $XXX.X markets

were net sea the XXXX change aerospace for X.X%, defense, aircraft of OEMs in up demand quarter aircraft expanded a to now from fourth fiscal the and Turning led by XX%. experiencing single-aisle which increase by at planes. Boeing ships. sales they by and We're the their complemented both build the of as for rates Airbus XXX for supplying both the on we that products introduction of new the is This and AXXX these are OEM

Consequently reflecting we're Looking rate ahead, robust the the major year year fiscal than stands and plane by stepped through our quarters more impact quarter in This manufacturers. planned demand commercial increase beyond. and the this from next seeing last each successive a will successive increases builders.

of beyond to our to for defense about accommodate engineering engineered lumpy sectors are that wide producing more meaningful multiples these and longer today. increased capacity, on next production business adding as highly demand for revenues for Increased currently for than for shipments fleets. the down narrow-bodies. and are of production are The will These to us On our single those and to body the about installed market revenues forward jets rates content complex products. these through reflective building products look year our next substantial we is and flat the were defense defense, of We the were volumes demand rates and programs quarters. X%, timing We aisle manufacturing plane products these last XXX the defense, is normally for higher build and were aircraft per years. hence us requiring and for the with for priority cycles, several OEM several OEM and and be year. for XXX welcome which is plan of greater XXXX new the

demand of sure a defense I'm products for MRO recent MRO in flurry weeks, Although seen products in doesn't we anyone. recent defense surprise have that -

quarters quarter. in within we're year, activity, the times are ahead fourth our spending lead this Following defense the show increased fiscal as expecting which to as we up soon from as still bolts military production the and any see

$XXX over to detail sales call the more turn quarter, for the fourth And performance. financial are Rob we million between I’ll our $XXX on Regarding now to million. be expecting and

Rob Sullivan

quarter for of Expanding to fiscal by not is you, This Mike. Dodge XXXX of impact last that was XXXX was $X.X the on acquisition. to related million fiscal fourth the expected for gross $XX.X Mike SG&A inventory fourth the for already million future Thank period gross quarter up affected same million to covered, margin step the quarters. a margin $XX compared year.

last fiscal quarter to million $X.X same for a of As for last the the was net million of sales for expenses percentage period quarter for the compared XX.X% of to XX.X% Other compared totaled SG&A year. operating period $XX.X fourth the XXXX fiscal XXXX year. same

of other of million associated with $X.X million included fiscal XXXX. including costs of compared costs income items. amortization million Dodge million restructuring $X.X $XX.X There's fiscal acquisition, intangible of transition operating of quarter fiscal XXXX of income million million million was of in amortization income of million operating income the intangible XXXX, costs same to fourth $XX.X of other fourth $X.X costs XXXX. an with $X.X $X.X operating the other adjusted of was On period million also the quarter for the fourth XXXX, $XX.X fiscal of associated of fourth and operating million expenses to for compared $X.X assets for for related period items operating a basis, same services. with adjusted and $XX.X of fiscal of the Other quarter the of mainly $XX.X a $X.X of for of expense assets, last cyber-event, the million quarter associated For consisted million and costs. Operating year

million to $XX.X of income expenses amortization net intangible quarter stock company tax and period compared cash adjusted reported of for XXXX Net the per earnings financing the was the the year. for was to affect $X.XX income per for to last excludes assessing that Adjusted for year. net last $XX.X for quarter per million for of fourth share adjusted per per cash compared income last same fixed the per impact. income same share and an fiscal the fourth to $XX.X fourth income compared fiscal the per stockholders. fiscal the of of available to last for million period common adjusted earnings and earnings earnings available per by and fourth for share per share do same useful was not financial Diluted to $XX.X cash net was quarter of the compared fourth non-cash net XXXX year. million amortization fees, $XX.X adjusted period We for depreciation fiscal quarter last was of deferred million same for a to cash for an the of share the period fourth fiscal On adjusted common On $XX.X and net per year. of adjusted $X.XX million of fiscal assets, year. was stockholders $X.XX net year. XXXX income share for On believe basis, the basis in – quarter income period diluted the million earnings XXXX to last last adjusted share share For $X.XX our of earnings share XXXX for compared basis compared are income same diluted the million share items fourth the compared of cash for $X.XX an excluding XXXX quarter cash that period to $X.XX common performance of quarter period of adjusted same fiscal compensation net year. to Diluted stockholders $XX.X same available net an XXXX $XX.X the net

of from for $XX.X cash activities year for of million million. period was like fourth fourth XXXX, Turning $X $XXX.X million compared fiscal and to the fiscal same $X were operator compared year. expenditures same generated and to last year-end the million in I the now back in period million last period XXXX fiscal Total $XXX.X would to question-and-answer XXXX operating the year. million period the flow, as the last turn hand million to to $X.XX billion $XX.X cash Capital session. compared to for cash cash for operating same of $XXX.X company from the for activities the in the debt in on was month the quarter XX call quarter

Operator

Instructions]. [Operator you. Thank

Liwag question Stanley. Morgan comes from first Kristine with Our

open. is line Your

Kristine Liwag

morning Hey! Good guys!

Dr. Michael Hartnett

Good morning!

Robert Sullivan

Morning!

Kristine Liwag

wondering if in the that. How were your from much looking about could growth on at XX% So the you drivers talk versus I the what plus impressive. into was pricing deal? key quarter, margins, was gross pretty synergies I margins mean

Dr. Michael Hartnett

know we was of where well, on start? classic RBC mix, you had side, positive. Yeah you that favorable the and the some do all of side RBC First the we business, know

was. would where side On synergy the Dodge I the say

let’s about First, talk pricing.

the on so that's understanding price been neutral. been been on action impact inflationary inflationary Systems the to impact been that are able impacts been be taken. of going inflationary and what's with and have pretty the needs the supply obviously part have neutralizing the has actions, know to good. accordance in metrics product for what the meaningful, We've in most that so what is clear there's been impact there's been and we've shortages and that You game with terms experiencing, chain, in and our right and we've pricing

So during we’ve trimmed be the the know just to the you ship trimmed of way the sort period. ship needed

pretty happy the happy with the in people pretty we're managing that that. that, of middle So with were we're

capital the build efficiencies expenses the that RBC of basically operating what focused more I elements the details important the focus needs what plant-by-plant business, plant and going that’s and running environment plant sort keeping are running and of a the the had elements into going we've an think on moved the Dodge forth, management one we the and created we sort that sort and might and the of the responded plants and had that so that of clear where the effect the the and people RBCs capital in for to kind sort of process; that is, And important the of the so forecast where synergy, of need the the to extraordinarily the the what requirement of of Dodge the one acquisition plants. on is of I one operations with actions are much in it, now period. the synergistic of every has so I their acquisition that immediate bit of have be operational every what well to better any clear, taken what schedule, really the them quite or and and of probably do are, that folks they past helped of ever pretty during than embraced review think more this efficiencies the are to is of monthly so product moved, so Dodge be, we terms be be, think

of that in know that you sort we – gain that did would that’s synergy, So needs inherent could in do efficiency thing business. most immediate do, that’s we the terms the be we to thought the of order in

the other terms impactful to-date side of so in RBC the to remedying of that game Dodge supply in and will so the this, and most resources I supply effective had have assistant are think the been with of supply clearly synergies, over you of very in we've issues and it's for the those taking know the responsibility. be of in constraints businesses, applied future some some sites chain RBC us in RBC some production chain early

Kristine Liwag

is XX% think when so the year? margin then about gross That's for your that point starting really next fiscal year, And helpful. good a we

Dr. Michael Hartnett

to that think I we're Well, going neighborhood. live in

kind and going Rob neighborhood. opinion I live but that. let have of think that speak about them in their to to own think Dan I it, I'll we're

Daniel Bergeron

be Yeah and definitely but we by Kristine, it it’s year it at of achievable the number will is, quarter-to-quarter and lumpy that's the always for bips XX internally an as think Dan. end Right it least I us. are targeting now

Kristine Liwag

the been address? to great doing any quarters more hear. had of the are to integration that now with sneak seen, you've as you've negatives you've integration I Wow! in, business surprises That’s terms now. And there you're owned the could if have Dodge unexpected What few a and that for one in

Dr. Michael Hartnett

know started and working the bang think learning We've enough we the an agreement everything Yeah, think, had through what that last what for. biggest of we've and right, we to we well about surprise details of had August we and there's night question it. to too the and no the business. much acquisition had, we've process Certainly sort out a in started experience about I never with goes the more where the acquisitions was signed acquisition you had where watch know problem had business I

Kristine Liwag

Wow! problem to That’s a good have.

Dr. Michael Hartnett

Of that up, we for date, didn't have moved closing demand towards have their all as overwhelming and but it just anticipated, became that, we we the product things we their teed really clear beyond didn't anything expected experience. the we that that was –the or

the with know Tyson soon Mike say, into out obviously punches you fight the in you goes strategy face. somebody So and go what as does as a a that window you

with of And problem to we so went to we on acquisition the customers. ice with certain product a we of into strategy, but had well immediate put dealt it getting a while the, our lot

Kristine Liwag

to you is acquisition, That’s I wonderful if that’s hear analyst. that's biggest I'll to mean it have, problem. a the problem great about. Thank that your for color. pass next so this on the Great! we

Operator

you. Thank

Our next question comes with Skibitski from Global. Pete Alembic

Your line is open.

Pete Skibitski

sounds quarter, went roof, which that it like So everyone! in like the of Hey! think signals is last continuing. demand your Good industrial morning Mike, it was message through your sounds I message

right. – If about are talking recession know some a people you

capacity. talking So added about you are

feel and is to that for another sense the at do strong demand going you confident a can you year for pretty maybe give capacity or you're to least much of that future, how looking remain foreseeable add? so us So

Dr. Michael Hartnett

try parado to Well so of divisions to it's keep lots here. of we of yeah, lots have needs that answers, have the a I’ll – I mean of top that question lots and has because it the that’s

year. we You of know predict economy the hard rest to in going for for to terms the is – industrial do us of what Dodge capacity, it’s the

now the build projections said having we've that on impact are it they XXX Remember, and the that look machines. the are we of Boeing operators the aircraft give where term economists us have and key seen for industrial will date short it’s build We industrial look that more plane the justification with looks know cards, to driving business. for Airbus's that, Max even on who the rate. buy fuel the one been positive out recession, those is really projections rate like things we Boeing's efficiency of sorts see, in need world, all max you future fuel doesn't to that’s all it like if are, that what prices in that Now employ and is for out rate the build business, specialists and the out at a more

building actually in much the So I is aircraft really probably the right talking need area our the for to I to another think business business, solid now. be capacity plant because today you and is the know going is we're think strained support business and very that the – defense good really defense about

Pete Skibitski

you And that fiscal Okay, CapEx you’re expecting for that's do great. spend an estimate ’XX? the have in

Dr. Michael Hartnett

we’re we to X% to X.X% hover move as forward? going Yeah, right sales that around

Pete Skibitski

industrial, Okay, okay. you for China? the did The Mike see any see last in negative in from me, you guys one impact did shutdowns

Dr. Michael Hartnett

Yeah, know know we you plant. – actually so and have a small a our are – plant in it’s revenues we're China having you

are now. that You right revenues our down modestly by impacted shut know

are have of having the chain. suppliers of lines have some doing our running cost seeing are supply business. of fly doing the that in actually that, that’s and the in of – We we just plants to part so over hardware We we're to we the – do some are China keep

Pete Skibitski

Okay.

and So sales there. demand decline in you excluding plant into China, know sounds like of didn’t have you product the in you meaningful the China, some that export a see you it

Dr. Michael Hartnett

No, that's correct.

Pete Skibitski

okay. Okay,

Okay, thanks guys.

Dr. Michael Hartnett

Yup.

Operator

you. Thank

with next Joe Sachs. Goldman Our question Ritchie comes from

open. Your line is

Joe Ritchie

your fiscal Hey! year. Good morning end Nice guys! to

Dr. Michael Hartnett

you. Thank

Joe Ritchie

It chain get I like the want would expectation in next an there my few first to question is that So was better things supply just, months. sounded the understand comment.

around color improving? and visibility some impacted also visibility just you're today your you kind then being things provide could Just, maybe on where of on

Dr. Michael Hartnett

know you maybe today. been we've we’ve components, where and being been with bearing gaskets. obvious, Well of see impacted been impacted of you steel, with we've bearings, been shortages shortages know not We've with – it's let's but shortages of steel. we're impacted obviously impacted shortages Yeah, the of impacted with

the those either – and been much impacted forward. a repaired have watermark to-date sort mitigated the either already it impact a – So so to-date But by we what been in believe repair in felt revenues has – being of we is of be it the impactful and that quarter been or high has going it's amount. process implemented had should our significant fourth really even of

Joe Ritchie

recession Okay, I fully very the go the you recognizing levels in about In we go think still playbook right got you asset. to of kind also helpful guess you you clearly what obviously think for question. now about how want new you're company, if before. color. are that is but agree. demand new new were back I recession sort which to No, fact that's scenario should that experienced some to the strong, of a we see seeing downturn, a I’m curious, asset like planning, to know just when haven’t I that a the

Dr. Michael Hartnett

half yeah cost Well, is sales variable of of RBC, unlike materials. I their Dodge think

run the salaries is that, budgetary the plant labor variable out budget the pretty there's a the in and revenue, So pretty know of of immediate much you base cost decline you some to allowances know and your your base, mitigated rest the know cost supplies and quarter. relieving can as by a half to operation you be so in so you your that much know – there’s it is and able run decline of some in

other and filters than know variable and million. revenues, X% is your well revenues and – hardware through if $X million So your $XX rather a if $X you you're of of running its supplies, down tooling then $XX your and you have cost million and of if oil go million X% plant

to to some there to get have that order just metrics the have is you doing put you what the do to So back have and to down in local place that down management need in you they their allow – requirements. you visibility

quarter. plant menu can can, you you the all items and in I it is you than can work to of reduce schedules, the normally cost cost of to overall per – there's manage of be can an labor there the so material reduce RBC that order existing the flex rest days variable and plant, mean little chosen the that a has bit you in because I plant you think have you cost can would of easier in so number sorts know I say is new much sales. their know acquisition

Joe Ritchie

was the Thanks much. problem. That very

Dr. Michael Hartnett

Yeah.

Operator

Thank you.

Our next comes with KeyBanc Capital. Barger from question Steve

Your line is open.

Steve Barger

Hey! Good morning, guys!

Dr. Michael Hartnett

Hey Steve!

Steve Barger

a organic call what say last I Did for versus year? rate got growth the was little Dodge you on late. the

Dr. Michael Hartnett

I didn't say.

Steve Barger

you? Could

Dr. Michael Hartnett

just to X% Yes, March year-over-year. grew of year so at Dodge last under about compared

Steve Barger

it, low thank XQ, a expect And Got $XXX somewhere you range? similar that contribution dodge you. do in from million in

Dr. Michael Hartnett

Yes.

Steve Barger

those almost You at had in categories what's costs the Perfect! costs in Can in level do to incur you transaction tell million and that and two $X expect you XQ? $X transition. million in us

Dr. Michael Hartnett

expect continue part to that at to So the first, it question second answer don't the of we level.

Within the the $X purchase thereabouts, up the you is million, amortization price inventory have step that at roughly X.X.

kind that’s what of should and through So the November, little as going know this more with away costs waters you which ancillary And accounting, million like that, quarter, expect with that that's associated costs time after you and next the should know QX. in then we there's down and $X period, were that of services acquisition. bit other be start over agreement, so then QX transition legal, QX decline – that a should runs anticipating the – other it in to the we’re things go associated to

Steve Barger

Got it.

And the half have was so – just cash costs. to what pre-cash would was I'm will like immigration if trying non-cash. of like have up to it flow maybe looked post cost how these step sounds get that inventory

Dr. Michael Hartnett

it. looking X.X are the of other non-cash, cash. of components way the inventory and primarily fair is That's TSA a at

Steve Barger

you in know rate we expect think $XX run inflation million sustainable? And it. you for ‘XX few do what quarters next the kind Got this for is should SG&A or of

Dr. Michael Hartnett

sales period. is fluctuate SG&A over kind XX.X% to the we're to mean XX.X% thinking of going of I coming between

Steve Barger

more me. for one then and Alright,

you tell supply in by said and us into significant You range? XQ you delayed the out similar XQ build can Mike, a did much revenue a revenue and/or how amount. delay affected was push chain

Dr. Michael Hartnett

can I plan and expect we it in Yeah, significant to the building a that quarter. – amount that yes, an of kind we amount. only figure and – say you an we’re probably be first know our And it’s was built eight into it’s

Steve Barger

it, And yeah. do you been prediction go every reasonable mean, fixed I think it, chain has your honestly that it just but think when made fiscal Got anybody's that half supply – as about of you is you to as wrong, get about into the back year.

higher You're or delays running the at kind that go revenue of rate away.

Dr. Michael Hartnett

seeing annual capacity being of delays RBC sorts Yeah, I done built to other support was on and bringing and our we because think substantially we’ve it's plan the revenue Dodge with that – all us. available some things we've suppliers these on to the mitigated we're and business of to brought reasonable,

be think mitigated. And to it will hard so will it say I will how be definitely exactly it mitigated. – much It's be

Steve Barger

some XX is there So then run it is basis, higher the on that rate per number your if a running fair? and the demand digits mitigated half back is quarter

Dr. Michael Hartnett

That’s fair.

Steve Barger

Thanks. Perfect!

Operator

next our Weber Fargo. Wells Seth you. with from Thank comes And question

Your line is open.

Larry Stavitski

is Hey on Larry for guys! This Stavitski Seth.

clean-up $XXX from Dodge so or first in million question, to looking revenue quarter? for last Just you’re the the in

Dr. Michael Hartnett

Thereabouts.

Larry Stavitski

you any you in know Yeah, But I'm between I like these missed seasonality – you normal if how XQ not cadence guidance, having I do in pushed of how the terms okay. know do on - first giving And you pushed from shortages only legacy ex seasonality of are the but quarter the – business, it. out, color then revenue revenue both the sure and Dodge envision the terms the think out. the shortages

Dr. Michael Hartnett

I with a the it the schedule by third mean of couple the we're amount I of a is certain obviously or lot in know in the of seasonality; a and summer have quarter. seasonality a You the holidays issue dealing you there. think vacation driven

your that So sort built of that’s in capacity. drives seasonality

of core build the effects pull we're to know those going create to we driven of Dodge’s up will you think the there's haven't the sector demand infrastructure and and work here, some such Offsetting that so to is – do even – businesses then through And source things on the are that and with probably some felt Dodge. are impacting for will the extraordinarily show farm another and of macro some by macro around grain seasonality that. already I effects And shortages to have that is them that's demand the strong particular timing the goods Ukraine start but big that, is of as is very effects issue busy. is going for that, like

You OEM know defense demanding the just just, we us step-up the rate, need about this the some those its rate on the programs forth, and we've and to frankly aircraft the are we’re address defense are of worried have we've and which get for very concerned about programs we being now so and that now we have this which got time able right. build to on trying and we're right and meet the cadence been and upon and out hope properly us plant staffing so programs

Larry Stavitski

Okay, makes sense.

guys. I’ll pass you Okay, on. thank it

Operator

Thank you.

comes America. with Our next Elizabeth Bank from question of Grenfell

Your line is open.

Elizabeth Grenfell

everyone. morning, Good Hi!

Dr. Michael Hartnett

morning! Good

Elizabeth Grenfell

just I so million initial the for $XX still And I around was Good if was think moved with confirmed, target the have question. and they the then have. and there, I impact final Dodge’s one out, part think the of sales I force Dodge it using synergies $XXX a force morning! sales to grater and playing of wondering of was acquisition and million that that wondering magnitude within or then that’s how wanted bit. was around the was expectation that, that Just I the had to

Rob Sullivan

five, on, of have needs back Mike that find November, trying that. accelerating been there's to lot because that we sales all range. capacity so and synergies We've started side year always as like be our with Greenville. on from be going programs still as to the identified in current able of much range the to sales now, in within initiated. working all our business But to some we're RBC a said, – of the we’ve right October Yeah, benefit out them interaction help are these some that's by and seeing on And those of friends in teams, we're quicker, down those Dodge

target So on target are under here. and I thought our months think we from belt of would where be ahead we just we five

Elizabeth Grenfell

margins clarification percent Okay. And of sales. both for gross SG&A question a and as one

margin quarter clarify the can versus gross you're year. first its, the the for For expecting what you full

Rob Sullivan

gross a just similar it pretty increase are It that expecting of were bit trend It's be but throughout know expecting. we always as hopefully little in it’s going the point so Yeah, you the the looking a throughout to QX. the we lumpy year. year XX at margin is, course – that's basis be should

Robert Sullivan

so we entered at fiscal XX.X%. year Yes, ‘XX

So to year. XX% nearly full the hoping we are for close

it the Rob our As have quarter and little utilization. said and in production sales our in gets there to is gets because strongest it’s more production always it quarter from days fourth lumpy, standpoint, our third we quarter get and that lumpy weakest quarter, a because

Elizabeth Grenfell

in SG&A, the that’s for the And XX.X% XX.X%, full to the year?

Rob Sullivan

correct, That’s yes.

Elizabeth Grenfell

very you Thank much.

Operator

comes Ciarmoli Truist. our And next you. question from Michael Thank with

is open. Your line

Michael Ciarmoli

the here. morning, for Thanks guys! taking questions. Nice results Good Hey!

looking still Just three get under million leverage, maybe some flow the cash in for? times housekeeping, you quickly, $XXX are and that those is for should right be metrics ‘XX to trying

Rob Sullivan

was $XXX by the Our still that fiscal for intention million of of that end there out target we ’XX put getting the to EBITDA.

Robert Sullivan

already and is this million that all allocating the of pay our through target down played down. target and our quarter and quarter $XXX minimum debt the get to our at we’ll we every so to through fourth it’s get ’XX, $XXX think still quarter and that, the continue capital to down way million Yeah, about I reducing by leverage fiscal

Michael Ciarmoli

adding your guys commercial And perfect! – are hear aerospace? capacity I see for the that then correctly? – I you Did Okay, I could correctly

Dr. Michael Hartnett

Yes, is correct. this

Michael Ciarmoli

Is capacity? know I already did capacity? or of bringing have I or thought, have in tooling were additional this and that downturn. would fresh a capability the before of – maybe lot you capacity capacity had I mean, back and are you labor you you the of and the ramping kind up Are new is kind you adding before Max the that

Dr. Michael Hartnett

single-aisle, that’s rate building I is beyond for additional Well, particularly go these when at most XXXX and hardware it's supplier of it's we of know to to add building a their the lot we look to this – at we produce. are the intention, plane you single capacity, aisle their on intention the obligated mean planes - now supply, if because we on a back Airbus, layering the and you that part a and they are materials month start XX is of have capacity, you sole what to because fresh

So we capacity. adding yes, are

Michael Ciarmoli

capacity, on Any okay. what you adding. what Okay, of capability are color kind

Dr. Michael Hartnett

Let’s see.

part most probably – on components. on it’s the engine For

Michael Ciarmoli

it. Okay, got

availability, had, as statements. and of integration. the know of supply on sort those material of supply have you and complicating if internal there last with Okay, potentially of we relates of you any to at kind kinds your I million Obviously chain, chain, then in I of called you the lot look originally it think of or kind chain about, supply one but move component some where the out realizing you $XXX know external some just – a sourcing. things opportunity internal know do of thought house that stand

Dr. Michael Hartnett

that to Dodge’s – some to on a that. no from we're it ensure we to we Yeah, have of going well work business and going are there’s question so

And take We that are little time. will on bit of that. a working

getting capacity some drawings matter have of in the in cases the cases some take it’s time, and engineering and materials it and production. the So beginning we will already available, a the

we So looking acquisition. of one were it’s identified but the synergies a little when mixed, the we year, last it’s major that at

Michael Ciarmoli

guys. thanks Alright, perfect! Alright, it. Got

Operator

like I I'd to Dr. to all That’s questions turn for call back Hartnett the remarks. show. final the

Dr. Michael Hartnett

thanks for some interest. look you calling appreciate in forward talking well in to that questions July. – Good We we day! Those and discussions were we appreciate and again to just you your interesting and your it. had was Okay,

Operator

This concludes today’s call. conference participating. Thank you for

You disconnect. may great now day! Everyone a have

RBC Bearings (RBC) 26 May 222022 Q4 Earnings call transcript