ROLL - Earnings call transcript Q1 2023 | RBC Bearings Incorporated

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

Operator

Hello and welcome to the RBC Bearings Q1 Fiscal Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Josh Carroll, Investor Relations. Please go ahead.

Josh Carroll

Thank you, operator. you quarter us earnings thank fiscal RBC and first XXXX conference afternoon for for joining Bearings’ Good call. With is me Dr. today on the call Michael J. Vice and Chief and Daniel Officer. Officer; President Executive Financial Robert President Director, and President Chairman, Operating and Vice Hartnett, Sullivan, Chief Chief Bergeron, Officer;

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

GAAP information now turn on over and With will the I In available addition, Dr. Hartnett. that, to non-GAAP company’s is as reconciliation is part the the and financial of website. release of included call

Michael Hartnett

of million net same I Thank by ‘XX that off morning first year, an sales last fiscal period versus $XXX.X quarter you, for XXX%. all. will were $XXX.X saying million the the Josh good and start for of increase

was A and this Rob $X.XX, year of in came was net of for to for products quarter million, of to million new respectively. compares little The as the margin of last with in adjusted income or XX% our than in middle lower XX.X% and of $XX.X compliance fairway. GAAP million, represented guidance call. to $X operating our plant was by of net on For EPS the XX.X%, Adjusted very sales, year. unusual a net same quarter period the $XX the $XX.X million $XXX.X missteps of sales from the shutdown in our detail sales explain net right expectations, the to products quarter revenues forward later performance compared result industrial of much XX.X% was in last year. XX% million Gross period million, for million, first aerospace China XX%. XX.X% million $XX.X manager. ‘XX, more Shanghai the same last will EBITDA of the sales freight $X.XX and was $XX.X XX.X% $XXX.X net and of sales Adjusted some EPS of at compared losing a sales

is $XXX and was grain, During aggregate, the machinery, strong RBC quarter wind, period, products up year. another XX.X%. million industrial including entered by by of flow here semiconductor were up $XX.X strong of mining, quarter. the free marine, million. for and All cash products were energy the we first more next industrial industrial food, the We growth paid organic Sales outlook for last from distribution, XXX.X% debt industrial down a same sector. components, the was with

Turning and to defense. now aerospace

dozen past a volume post-COVID on are series period. over brings – – new AXXX welcome and were the models. as their fiscal which from at XX%. produce XXX XXX products contributor, XXX to efficiently they of there rates Airbus Today, to sets capitalized XXX to today over to aircraft plan ‘XX the half This producing is sales plans new revival The The XXX XXX for up ‘XX designed a pace and same in and first respectively, a ‘XX, MAX production of factories, ships many our ships. these quarter of years in increase Boeing the and net on welcome ships were the for ship over important they and and

their at Chain of Supplier Bearings you to know, from As the already was honored the Boeing Los receive Angeles. conference Supply of Year June in RBC many Award

of We and are XX,XXX aircraft important Obviously, and earlier, by produce defense an milestone are is currently many content the our Boeing great resumption participate the have plane XXX every increase. in to to release the products. XXXXs, many to reviewing model plane of for applauding for event suppliers. now plant produced supplier The of model today probably is this production this us. products the is a our over aircraft supported Several plants and production been substantial. since support capacity unique we Boeing of a Boeing and commercial busy aircraft

defense positive A profiles. ships using now, new boogie. right the munitions, in new XX are for with pretty is on designs outlook It’s very work. hardware a as our business, here submarines and mission it’s planning services, advanced designs, exciting a aircraft word for place We per expanded active month out and XX to months and

to supporting business continues add future next Columbia facilities More support next for to dozen requirements plan we manufacturing of to test a at Our expand, and the aspect Virginia months over the and construction these ships years. on least in this to the calls. and XX our

past Finally, a in to munitions. equipment month, given the deployment strong replenishment of initiative been the of underway there’s Europe U.S.-made here for

imagine, will impacted be As by we that. can you

more that second the quarter, supply chain. for over call I million. range financial now, detail will is art $XXX be Regarding between the The performance. on are million here we $XXX to And all sales expecting the Rob and to turn in about

Robert Sullivan

the SG&A million Mike. last year. the $XX.X to first for million you, compared quarter of fiscal for same was $XX.X period Thank XXXX

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

$XX.X million and with other of first fiscal income. other expenses $X.X of assets, million acquisition XXXX, of associated quarter of the operating included million For costs $X.X the Dodge amortization intangible of

the costs to the and of the million $XX.X restructuring income utilized loan expenses $XX.X fiscal fiscal of Interest other first This the adjusted primarily for same expense consisted senior to period amortization a XXXX, $XX.X was compares The of the operating of for basis, of $X.X first of for XXXX. $X.X fiscal financing fiscal quarter expense the for $XX.X same $X.X $XX.X last adjusted operating XXXX. of $X.X quarter acquisition period term income Operating of the million to of quarter of associated with for fiscal fiscal amortization fiscal reflects for and assets facility of of during increase and year-over-year first income notes XXXX items. interest would the deferred Dodge operating first quarter year. in For the addition of for compared million On million XXXX million of including XXXX. first quarter million the intangible have fees. other million was an million income million, operating compared been XXXX the

months, period earnings first million over million the other fiscal adjusted fiscal the how On income XXXX same the historical best and longer this for compared and period clear, $XX per feedback discrete for new $XX.X quarter quarter and compared net is available assets, To XXXX, period only same XXXX last to will income $XX.X $XX.X the intangible common share for earnings the Diluted share, the the tax and per last for Net this they’re earnings compared per our business. of for share for which or it’s matters, million will unusual an unusual all million listened items. the net to our available net exchange, ongoing quarter bit basis, first year. shareholders, quarter nonrecurring was performance deferred for the discrete stockholders foreign fiscal per compensation of to future reflect $X.XX year. new year. adjusted an other we onetime year. million from and last for in unusual adjusted future the same quarter earnings adjusted was net in report the periods, income tax share, metric same to period period of the our we other to In million was $XX.X amortization $XX.X to million of financing we million compared fiscal fiscal For per Starting the earnings or reflect adjustments quarter place defined or unusual reflect company exchange, to period $XX.X will become no first items, share, basis, believe XXXX of and matters, income M&A-related $XX foreign year. of of clear of On the per to net to reported basis, be The everyone share. earnings earnings adjusted compared the income stock-based in a last last same compared a On we XXXX first $X.XX cash income of have for amortization of stockholders diluted for releases, adjusted earnings considered for of newly amortization same was considering year. fees. $X.XX was the adjusted first $X.XX quarter share diluted last for an common recent of of share per first per

For this improvement period for This $X.XX the compared press $X.XX adjusted last this Dodge XXXX calculation. the per same acquisition. year. by refer the to filed the morning first new Please reflects quarter our provided significant year-over-year full of benefits for release the fiscal to earnings was share

XXXX operating to compared Capital on same in activities cash of in as the in company $XXX.X last $XX.X total the of and leaving generation. fiscal to the period million cash million made term paid $X.X the The same investment flow. last on period, loan for which was the period, cash during XXXX fiscal hand our year. We during $X.X quarter the million. impacted compared cash first million period to the $XXX down the billion Turning inventory first were $X.XXX million of year. in million of debt strategic for a of the generated end We period expenditures current the quarter operating from $XX

details recognition XXXX fiscal future of been in expense U.S. of recorded impact stock-based executive I these the compensation The expense associated on that results in periods. should been the of clauses impact $X.X in timing an expense. of these filed previously of was has to $X.X is million Finally, awards $X awards. previous an associated brief in million pretax expense. years the GAAP, in some associated certain XXXX XX-K been in was voluntary in with the and fiscal expense an compensation have have would a certain out of reexamination additional with of of termination. reduction the due compensation compensation additional arose company’s restatement to with recorded in of The was impact fiscal The expense million the XXXX and XXXX pretax adjustments fiscal accelerated previously agreements This the Under wanted restatement of May. offer our recognition

relate and compensation non-GAAP these as item a the we of than the There recognition exclude traditionally EBITDA no stock-based was the Importantly, adjusted to from non-cash amount the adjustments our rather expense. expense overall metric. impact timing that of impact historical compensation to

As the a a would operator now call in be reduction of like fiscal adjustments, rest is less to the I fiscal the result total $X than back total expense previously to anticipated, of the more the for year. for including session. for to question-and-answer than of the expected recognized million these XXXX the turn

Operator

Kristine [Operator Stanley. you. today question first Our is Liwag Thank from from coming Morgan Instructions]

live. line Your is now

Kristine Liwag

guess, Hey, sorry. afternoon, good guys. I morning,

Michael Hartnett

Good morning.

Kristine Liwag

what Year So to to degree first, work? execute would want of scope of the this Supplier Boeing potentially like recognition the winning more chain Boeing unlock Presumably, supply does you congratulations I guys. a of expansion on of mean, Award.

Michael Hartnett

plays Well, coming we’re from Boeing. the terms Kristine. we’re It out, how in that see new in of sort – circle of to work clearly waiting winner

or or is supply I we’re And that through – the Boeing known period lot shortage labors. that it suppliers of through a make of so COVID reasons well financial issues it’s for reasons they bids other and working guess, have products. didn’t on chain employment

they so benefit to to going ultimate I And I is are. like good are to very It’s And early the we but in work. tell we’re achieve work. be, where to looking move what position too probably some a think that of

Kristine Liwag

post XX Dodge. do never back I dipped performed XX%. have been guys margins could at years, I cycles. historically, mean, dip gross When data you question if back below in a And RBC Bearings looking And I follow-on to didn’t margins going great. even across defensive below That’s you past on gross mean look the XX%. IPO, different very and

top is a Dodge, revenue industrial the legacy on defensible color the your facing one? recession, and given mean, bearings in or to should on macro on we So how can more portfolio backdrop less at of defensibility we’re see and bottom you’d line today, uncertain with your how provide it RBC expect – changes Dodge XX% them an basis? you I more recurring versus the perform

Michael Hartnett

rounding if I to call they now, Yes. of XX%, I’m from tell Dodge’s of what revenues XX% distributors. think are roughly industrial you they industrial distributors, those distributors, Well, talk you one break that of those industrial is revenue. their fixed will And coming revenue any

is something broken the one service. that there So they of plants in

so And they part replacement to the that supply plant.

is with U.S. break-fix – call infrastructure. business this what a infrastructure heavy grain, heavy aggregate, it’s of of is there a a Dodge’s the associated so And And they component that is it’s unit handling. concentration

very the into integrated GDP. And U.S. so it’s

lower is that think the at when more they – I Dodge RBC’s OEM that period, revenues Dodge because look direct business. So same over RBC are you revenues beta than

be can depending Dodge that variability a can systems you be upon makeup. in we a somebody their lot. have supplying So Caterpillar, be might up and a Caterpillar you at what down lot, And doesn’t you’re supplying like

Kristine Liwag

And also line in stable. fair that be with of more then assessment? the margins great. a Is presumably, That’s variability that less would top

Michael Hartnett

Yes, I a assessment. think that’s fair

Kristine Liwag

will I you. Thank the on pass Great. it next question. to

Operator

Thank you.

coming from question is Markets. from Steve KeyBanc Next Capital Barger

live. line Your now is

Steve Barger

on the the EPS. thanks for Rob, explanation adjusted Thanks. new

number we you I to Just understand, then referenced people be quarter? $X.XX and when GAAP adjusted a this to you focus comparable will make for report result the that see you XQ, will will to the sure that

Robert Sullivan

starting That’s Those will that exactly only be quarter. two right. will the reflect next

Steve Barger

So you expect to consensus basis. that of reflect more would XXX

Robert Sullivan

expect. be would what That we would

Steve Barger

up? just you industrial IP question way. in plus be When about think then IP to or to if and be And what down That’s relative it. how that combined if industrial different to you expect a maybe ask be X%, same more Got were slightly the going quantitative, production business X%. I’m is the will grow business to industrial cycle, that question would your to perfect.

Robert Sullivan

Actually, up we X%, I like would above demanding. supporting extremely have get. X% I can something it’s very think merges Steve, be tell the would when Well, IP as goes we’re really were Yes. with to you, X%, – of XX in of it That’s difficulty each purchase index as When all demanding. order track book neighborhoods, X%, to don’t that. Year if and about manager book. it busy probably XX. that’s it’s a those negative other those kind can want

Steve Barger

now. went just about running in the I pandemic, And right? is through Well, mean, it you IP X% right

is book stands to So today, up hard it keep supply the with notwithstanding? as chain order

Michael Hartnett

Yes.

but plant So chain into is are the And the we still RBC chain to on that side, in an is work to a on amount order when side, supply ability Dodge incredible with certainly way, associated with there not book calculus do goes outpacing particularly deliver. the having We thing. side our Dodge that’s but we that mainly And internal matters. supply revenue the hiccups, have guidance, numbers. revenue of the those getting capacity, the a

realistic. but make to conservative And try them so we

breakthroughs, supply And there that cases, And the on pleasant quarter. very shortages will revenue we is so convert RBC as to chain a the surprise better end getting the is then The in the of bring if plant of of some we be some at some classic relieve supply have. manufacturing we additional basically there suppliers. problem some chain

introduce that’s as you it it and working and matures. – So it and better work

year. it’s think – going but us of to So for I do I with the rest think this be

Steve Barger

Yes.

guide as For for chain? for you the factor revenue did in much offset supply an XQ, how

Robert Sullivan

what Well, is, I want you. to don’t know number but tell I the

Steve Barger

your factored XQ you than in less it guidance? Is for Okay.

Robert Sullivan

it’s No, same. the

Steve Barger

up you do be revenue sequentially? contribution And expect Dodge Okay. will

Robert Sullivan

I do. Yes,

Steve Barger

on. will Alright. pass it. I Got it Thanks.

Operator

you. Thank

Next Securities. Weber Fargo is from Wells from Seth coming question

is now line live. Your

Seth Weber

the the wanted better looking both I we ask, what were to actually margin. Hi, margin good afternoon, on and margins EBITDA than gross were for, guys.

So at what the year? for the can on I’m perspective. you rest price getting a in of of to year? be just cost better to Thanks. from the just to expect you’re for trying framework the positive first through saw you price understand quarter expectations where balance Or cost maybe give you any of side Would that? the Are relative us the you

Robert Sullivan

going chain half sales I supply cost cost Well, to relates as Dodge’s of particularly numbers, better, of our – supplied. price think to Yes. and chain supply get rough it is in

And cost is quarter, there Asia past so transportation The the freight there. – going of In diesel there. to there in seems from expense is away. air That’s is moderating. be

So of the transportation calm we prices should down. expense the commodities backing see off. And some basic the of

We pressure goes cost any in that that, us time relief telling on. as see relieved the quarter. that’s So be first didn’t should

in So any we’re quarter. see second to not relief material planning the

Seth Weber

cost even keep a the you’re input environment? you Would price in increases that through pushing lower Okay.

Robert Sullivan

evaluate Well, – all account in cases to by I that’s and cases. comes product it out. back have account, mean, and see and probably it we question We hard in down a would would to where we some product by would answer. It’s other

And so it’s very tactical.

Seth Weber

Yes.

question, Okay. as defense like to follow-up the extra this you for little referenced side And have on out. quarters to well. of think It capacity you And adding some would on of heard timing help may sounds you just be couple around my I start a you? some put expect that. kind defense mentioned bit capacity aero But then I Can just you now when further the adding side. a capacity

Robert Sullivan

the the hit. gallop on a were And back get of have to in into side, aero to of sort aero thing side pandemic those don’t Well, going want it get sort of we to and we’re before – at we looks we CapEx because the there clothes. on terms add capacity the like that

really do, manpower days, it’s not these that’s that’s and it’s – adding doable. but So to easy

look you attract where how about company. for creative be and out go to your to people them have you you so and And

answers the kind – that side, that’s question. of industrial and So that the on aerospace

out. a it’s defense side, On yes, further little the

agencies they of and defense regard like what favorably receive like should – We received, to looks funding. think we’d been the into be to some it for add proposals – or for And the have added what with have we capacity. will we some

Seth Weber

Got it.

thank Okay, guys. you, Appreciate it.

Operator

is from [Operator Our Sam Struhsaker Truist from next Securities. Instructions] question coming

live. is line now Your

Sam Struhsaker

you on you raw parts pressure that, Hey, guys. you guys increasing I But chain, lead on aspect pricing, building needs of additional be were off think maybe a prior. any on there? are was particular any regarding some And of capacity or touched this touched whether then of finding supply front? times that guys there labor, bit or for either just I again, it there specific hoping little briefly bringing is regarding materials kind on but

Michael Hartnett

Yes. One, we on volume have labor. for add This the is pretty XXX us. the labor definitely will will, significant side, we production buildup to of

So it’s going able amount that a but labor no there to of without is do And labor. that be requirement. – way we’re adding to manageable

– question was second it’s of part your So materials? the

Sam Struhsaker

Yes.

if pressure particular guys be Just supply are whether materials lead whether you times or some when might you or and feeling particular it raw pressure, it’s feeling be just any chain any parts that?

Michael Hartnett

always on very be working it’s a raw Well, challenge. upon depending be And who titanium could materials, of titanium. issue. you costly. an It it can is for, are yes, course, And

the so we people availability got negotiated – of had with the And employ Boeing if we tells covered. from And can supplying Boeing, can there that that are supplier is us. But price buy us various do titanium that there titanium is like that at absolutely strategies Boeing all negotiated issue buy suppliers no with if for and at that we a by. there can we employee

hope they right. are I So,

year, the out Now, to some weeks. XX are sophisticated, of lead steels pretty on times steels, and pretty some regard of and a some exotic are steels with the

bankrupt, who Some of are alive. by are barely steels made people staying the important went and

people are of some subcontractors, to a that’s their things some always keep subcontractors concern. but makers the and those alive, big so extraordinary doing And plane larger

Sam Struhsaker

Great. Thank you.

Michael Hartnett

Yes.

Operator

you. Thank

Ritchie Goldman Your next Sachs. from question Joe is coming from

Your line is live. now

Joe Ritchie

Hi, good afternoon.

Michael Hartnett

Joe. Hi

Joe Ritchie

few A me. quick Yes. for ones

about we I ‘XX. the than start basis the think chatted, a expect little year a to has little or you expected fiscal I XXX looks half recall GM to slower gone half the the first be to higher exited It still XQ a off where about last – were points basis points be gotten the gross like guys maybe number. below bit first time we higher? bit the anticipating Do you margin XXX than

Michael Hartnett

What end did in? up we

Robert Sullivan

are but the similar So, of course look start quarter second I quarter. at would the think over improvement, to during the quite that looking year, it’s always is gross the we the to yes, should to we lumpy see margins year. expect way first the I

Michael Hartnett

And our is quarter strongest QX.

Joe Ritchie

that didn’t exposure, That’s you Okay. helpful. of cover. a international maybe curious, saw kind lot other But just I lot are Is give industrial I come affected guys quarter, companies mean I than we am guys by we the that that you the something of guess quarter? parsing organic growth then what a for have just I like hear probably – I in know number it earlier. And less so out, this of you FX through don’t calculating I XX%.

Robert Sullivan

that’s And mainly… XX.X%.

Joe Ritchie

then as healthy would there hear seeing And industrial through slowing. business very great. a out just the lot Okay, I a any to actually quarter. in are you Obviously, activity around concerns is be XX% that of the number, you trends curious progress

any thoughts you what in you intra-quarter? that that any are seeing And trends saw business? around Just

Michael Hartnett

time, Dodge’s gas. to synergy really Well, and few good semicon, are starting we team our construction training, oil well, RBC and we I doing I at have activity and the from see same think team. think key on markets And sales are cost sales that mining, a some

distribution. against. and we gas, for I the oil side mining But the construction be of XX.X% our up industrial of we with big double on are mainly any markets, so more of the on semiconductor, Caterpillar’s, rate I that Komatsu’s growth And and growth are will the industrial quarter with us, general said, for world, mean a than U.S., a like going competitors year-over-year in the

Just up was our OEM up distribution XX%. general and industrial business business our was without organically Dodge, XX.X%

Joe Ritchie

Okay. That’s Thank you. helpful.

Operator

you. Thank

Epstein question Ron of is from coming next from Bank America. Your

live. is now line Your

Ron Epstein

afternoon. Good Hey. Yes. morning. Good

So, just a questions. couple of financial quick

down of pay plan this year? the million is still $XXX to So, debt

Robert Sullivan

the million acquisition. $XXX right. since That’s cumulatively The this $XXX year, million is to plan accomplish

Ron Epstein

kind out to the another in I done what’s And came being Okay, in weakness that the great. release me, then address material to controls? thing financial Super. of the guess

Robert Sullivan

Yes.

are We it taking internally.

the to in are time the processes additional grant. that and will of accounting the regarding reevaluating review compensation legal adding to employment are as they controls contracts We and relate place be prior we regarding

Ron Epstein

Got it.

Thank you. Okay, great.

Operator

Markets. question next is follow-up Barger The Steve Capital a KeyBanc from from

now Your is live. line

Steve Barger

guys. chain anything outside Shanghai Was of Hi. like and impacted that supply there any impact? was revenue, Thanks there XQ FX

Robert Sullivan

minimal on Very things all the notes the the did, rates but were during hit way bigger drivers. that impact FX considered. the Mike period, European Obviously, the moved they

Steve Barger

Okay. Can peak. you remind me, if anything changed before steps around typically seasonality for it XQ the with ramp XQ Dodge down to included? from I think XQ historically, touch a the

Michael Hartnett

The same.

expect the So, companies. we both to going days seasons shortest of have you can they are the holiday Christmas production for Thanksgiving, amount and same have, that

Steve Barger

Yes.

ROLL’s Okay. at things. And approach an to analytical historically, really taking good been

as customers, the you returns and a right now in wallet than see presumably, do higher markets has existing more former new your more your share the going latter. Because So, or end across look you after entering value in markets?

Michael Hartnett

terms the I products a the have of new coming And you lot behind have them. can’t of system, of pick all in to too through big we winners. mean Well, almost many you get

we that far right we us development, product which understanding as now, of have how now along and which and keeping And – those mature I how what busy. are for you, tell the we sorting so There extensive. scalable And far what’s in is is terms products, it’s along far are is terms as will with in process And concerned, are need, through technically their of right developments, to the product going market it’s is are they Dodge that’s how there. cut wood products. Dodge. lot a the of And through

channels new for recipe as success, to terms certainly I existing – very market in it as it good a to of Dodge. adding as applies so think products And the is applies

channels. defense, to Now market lineup hand, large in RBC in of particularly has different on and the aerospace terms has customers completely extent, a other and

so are And much introduction have And to agenda new so is through it’s how back. products. introducing product ones actually industrial up then years I of you think by to which secondarily the And that kind RBC across you to the the ones existing existing we markets. pretty and markets, accounts know are revenue map RBC over do Dodge’s picking to that gone

– the waves now. that’s on right stool are big on we are So, those the that working two

Steve Barger

And realistically, mapping quarters? years how does Is process? that long complete to it that take effectively or

Michael Hartnett

– never ends It But far quite along of well, it of ends, are we really because coming is more never on always terms Dodge’s through. are programs I mean there We program. Steve. quite these in some

And at the their their and of initial at the others development, so the – assessment. end market technical at of are beginning but stage

things think some are about. I going yes, have we So, to good to talk

Steve Barger

Great. And aerospace than just margin time? one industrial, have over incremental the more, they just even higher looking always intrinsically at segments, should will or be

Robert Sullivan

far apart. the time. over obviously are not They history, on. really tend close quite at look period be on that to depends It the and going what’s you they But if

Operator

you. Thank

Your Alembic Pete Skibitski from Global. coming from next is question

is line Your live. now

Pete Skibitski

guys. Hi

of again getting Yes, have the XQ? of plant to there. Sorry, the on just Mike, I into Shanghai the queue as plant maybe trouble is revenue-wise, reopened been start has start, the

Michael Hartnett

Yes, it has.

Pete Skibitski

Okay.

impact So, called revenue then the freight you of back. think it misstep quarter? And I in guys to we willing the quantify you would unusual be the should – an that gain

Michael Hartnett

Yes.

Robert Sullivan

impact between somewhere It was was million. $X – and million that $X

Pete Skibitski

has – Okay. And sounds one-time the issue been issue? a it like

Michael Hartnett

Yes. It anybody It particular that an issue could for the remember. was happened in forwarder. this unusual – it’s past hasn’t

getting and are with happened do we to we what can so it why And involved help. this time

Pete Skibitski

Got it.

little talked PMIs seen IP. recently. a the lot when on a metric bit deceleration have little Okay. you Mike, about PMIs the and of about kind Fair switch are In enough. we from a Maybe past, great of bit have it’s industrial, XX%, and

last any month demand not August right I all now? that’s is the in sit just markets, wondering, end am it something So, your over signs industrial just at are in for visible of really as here we or deceleration there plus,

Michael Hartnett

RBC, not classic we for seeing Certainly are it. definitely

acceleration. And producers. people They to – aggregate telling are our world XXX% any aggregate throw when there it’s fire. the It’s infrastructure serve, Grain that from In have gasoline in and this Dodge, going is markets – us, the we aggregate lumpy. the seeing market not the going program – are they capacity are at their business now what in We left through field but we by on is no that’s is grain. grain. with on coming full, look

needing farmers and things their breaking so running And are the and replacement. machinery

products industry. accepted we the lot for in us a have of address And well a early by out that’s – food been growth for Our we its really these And Dodge been the new leg have of that have stages. food. demand products manufacture that’s of

to them And those going markets lit we we are up. And that haven’t so continue. think seen

have building, what as some call warehouses. seen handling or what, We different XX a of off canceling of XX Amazon backing result unit they

been going has to but – there there, back So, frankly, expand that’s probably our margins. up some that’s

Pete Skibitski

I color. me. Last that for Okay. one all appreciate

I track? are million to Is adjusted think this that in $XXX generate on still year. EBITDA you expecting guys

Michael Hartnett

the Yes. direction. Well, that in certainly, with first we quarter, are trending

Pete Skibitski

Thanks Okay. Great. guys.

Michael Hartnett

Thank you. Okay.

Operator

you. Thank

We the of to have further for turn floor question-and-answer the comments. Dr. back reached closing end to I session. any would like our over Hartnett

Michael Hartnett

in for October. questions And thanks of appreciate I again and interest call, again everybody Good day. we the speak in RBC Well, Bearings the the your participation today. in Okay. in involvement and will

Operator

today’s teleconference. conclude Thank That does you.

day. time, You have disconnect your participation and wonderful you your for may at today. line a We this thank

RBC Bearings (RBC) 7 Aug 222023 Q1 Earnings call transcript