RBC Bearings Inc.ROLL reported mixed results for fourth-quarter fiscal 2015. The company's earnings came in at 73 cents per share, in line with the year-ago quarter tally but a penny ahead of the Zacks Consensus Estimate.
On the contrary, net sales of $113.4 million fell 0.3% year over year and came below the Zacks Consensus Estimate of $115 million
Management hinted that benefits reaped from higher industrial sales were offset by a fall in aerospace and defense sales. Moreover, currency headwinds hurt quarterly sales by approximately $1 million.
RBC Bearings' cost of sales during the quarter remained almost flat at $68.5 million, representing 60.4% of total revenue versus 60.2% in the year-ago quarter. Adjusted gross margin decreased 20 basis points (bps) year over year to 39.6%. Total operating expenses stood at $19.6 million, down 2.4% year over year.
Exiting the quarter, backlog was $209.6 million versus $218.4 million as on Mar 29, 2014.
For full-year fiscal 2015, the company's earnings were $2.74 per share; up 6.2% from the year-ago tally. Net sales for the fiscal year totaled $445.3 million, up 6.3% from the prior year. For entire fiscal, adjusted gross margin decreased 30 bps year over year to 39%; while adjusted operating income stood at 21.7%, flat year over year.
Other Financial Fundamentals
RBC Bearings exited the quarter with cash and short-term investments of $125.5 million compared with $123.6 million on Mar 29, 2014. Total debt was $9.2 million versus $10.4 million recorded at fiscal 2014 year-end.
In fourth-quarter fiscal 2015, RBC Bearings generated $9.4 million of cash from its operating activities, down from $12 million in the prior-year quarter. Capital spending declined 20.2% year over year to $5 million.
During fiscal 2015, RBC Bearings paid dividends worth $46 million to its shareholders and repurchased $7.1 million of shares.
Plain Bearings revenues were down 1.9% year over year to $59.1 million, while Roller Bearings sales rose 7.3% to $32.1 million. Ball Bearings sales were $14.8 million, down 6.7% year over year. Other sales totaled $7.5 million, down 3.9% year over year.
We believe RBC Bearings' fourth-quarter fiscal 2015 results were adversely impacted by a strong U.S. dollar and weak sales in aerospace & defense segment. However, the company continues to project a positive outlook, expecting the benefits of its new Sargent Aerospace & Defense business acquisition and superior industrial sales to support growth in its revenues and margin in the quarters ahead.
RBC Bearings currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the industry include Middleby Corp. MIDD , Albany International Corp. AIN and Astec Industries, Inc. ASTE . All three stocks hold a Zacks Rank #2 (Buy).
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