RBC Bearings Incorporated (NYSE: RBC, RBCP), a prominent global manufacturer specializing in precision bearings, components, and vital systems for the industrial, defense, and aerospace sectors, has released its financial results for the fourth quarter and full fiscal year of 2024.
Fourth Quarter Financial Highlights:
- Net sales for the fourth quarter reached $413.7 million, marking a 4.9% increase over the previous year, with Aerospace/Defense sales rising by 16.8% and Industrial sales showing a slight decrease of 0.4%.
- Gross margin for the fourth quarter of fiscal 2024 stood at 43.1%, compared to 42.2% in the previous year.
- Net income attributable to common stockholders as a percentage of net sales was 13.5% for the fourth quarter, compared to 11.0% last year, with Adjusted EBITDA at 31.4% versus 30.7% last year.
- Free cash flow conversion for the fourth quarter was 113.3%, slightly lower than the previous year’s 120.0%.
Fiscal 2024 Financial Highlights:
- Net sales for fiscal 2024 totaled $1,560.3 million, a 6.2% increase over the previous year, with Aerospace/Defense sales up by 20.7% and Industrial sales up by 0.2%.
- Gross margin for fiscal 2024 improved to 43.0% from 41.2% in the prior year.
- Net income attributable to common stockholders as a percentage of net sales for fiscal 2024 was 12.0%, compared to 9.8% last year, with Adjusted EBITDA at 30.9% versus 29.5% last year.
- Free cash flow conversion for fiscal 2024 reached 115.0%, up from 107.2% in fiscal 2023.
Outlook and Commentary: Dr. Michael J. Hartnett, Chairman and CEO, expressed optimism for fiscal 2025, following a record-breaking year in 2024. The Aerospace and Defense segment sustained robust growth, while the Industrial segment continued to outperform industry norms. The company achieved healthy margin expansion through operational efficiencies and synergy benefits, alongside record levels of free cash flow generation, enabling further debt reduction.
Fourth Quarter Results: In addition to the sales growth, fourth-quarter results showed increases in operating income and net income. Operating income for the quarter was $94.2 million, compared to $86.1 million in the same period last year. Adjusted operating income increased to $96.3 million from $88.6 million. Net income for the fourth quarter was $61.6 million, up from $49.2 million, with adjusted net income reaching $78.0 million from $67.7 million.
Preferred Stock Conversion in Fiscal 2025: The conversion of Series A mandatory convertible preferred stock in fiscal 2025 is expected to result in significant annual cash savings, positively impacting future financial performance.
Outlook for the First Quarter Fiscal 2025: For the first quarter of fiscal 2025, the company anticipates net sales to range from $415.0 million to $420.0 million, reflecting a growth rate of 7.2% to 8.5% compared to the previous year.
Live Webcast: RBC Bearings Incorporated will host a webcast on Friday, May 17th, 2024, at 11:00 a.m. ET to discuss the quarterly results. Access to the webcast is available via the investor relations section of the company’s website, www.rbcbearings.com.
Non-GAAP Financial Measures: The press release also includes non-GAAP financial measures, providing investors with additional insights into the company’s performance. These measures, including adjusted gross margin, adjusted operating income, adjusted net income, adjusted EPS, and Adjusted EBITDA, are intended to better evaluate ongoing business performance.
Free Cash Flow Conversion: Free cash flow conversion, a measure of the company’s ability to convert operating profits into free cash flow, is highlighted, indicating strong operational efficiency.
Adjusted Gross Margin and Adjusted Operating Income: Adjusted gross margin and adjusted operating income exclude certain items to provide a clearer picture of the company’s core operating performance.
Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and adjusted earnings per share exclude non-cash expenses and other non-operational items to assess the company’s financial performance accurately.
Adjusted EBITDA: Adjusted EBITDA is used to show pre-tax operating results, aiding in understanding the company’s financial strength and operational performance.
Conclusion: RBC Bearings Incorporated concludes fiscal 2024 with robust financial performance, poised for continued growth and success in fiscal 2025. Investors are encouraged to review both GAAP and non-GAAP measures for a comprehensive assessment of the company’s performance.
