http://www.morningstar.com/earnings/52706299-rbc-bearings-inc-roll-q4-2013.aspx

RBC Bearings Inc ROLL
Q4 2013 Earnings Call Transcript

Transcript Call Date 05/29/2013

Operator: Good day, ladies and gentlemen, and welcome to the Fourth Quarter Fiscal 2013 RBC Bearings Earnings Conference Call. My name is Gwen and I'll be your operator for today. At this time, all participants are in listen-only mode. At the end of the speakers' remarks we will have a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to the host for today, Mr. (Rory McClellan), Investor Relations. Please proceed.

Rory McClellan - IR: Good morning and thank you for joining us today for RBC Bearings fiscal 2013 first quarter earnings conference call. On the call today will be Dr. Michael J. Hartnett, Chairman, President, and Chief Executive Officer; and Daniel A. Bergeron, Vice President and Chief Financial Officer.

Before beginning today's call, let me remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors. We refer you to RBC Bearings' recent filings with the SEC for a more detailed discussion of the risks that could impact the Company's future operating results and financial condition. These factors are also described in greater detail in the press release and on the Company's website. In addition reconciliation between GAAP and non-GAAP financial information is included as part of the release and is available on the Company's website.

Now, I would like to turn the call over to Dr. Hartnett.

Dr. Michael J. Hartnett - Chairman, President and CEO: Thank you, Rory, and good morning and welcome. Net sales for the fourth quarter of fiscal 2013 were $103 million versus $11.3 million for the same period last year. Our industrial markets were down 18.9% on a year-over-year basis. Sales of aircraft and defense products were up 4.9% over the corresponding quarter last year. For the full year, net sales were $403.1 million, an increase of 1.4% over last year. Our industrial markets were down 8.2% and our aerospace defense products were up 12.1% over the last year.

For the 12-month period, sales of the industrial products represented 48% of our net sales, and aerospace and defense products were 52%. Gross margins for the period came in at 39.5% versus 37% in fiscal '12. Adjusted operating margins were 22% for the quarter and 21.1% for the full year. Demand for our products in the industrial markets were normal this quarter. The construction machine producers lightened their OEM build schedules, but steady demand from their aftermarket filled in our requirements.

With regard to mining equipment, as we mentioned last call, this segment had a strong run over the past few years and is now operating at a more level pace. We are now expecting this rate steady, but not overheated, to continue all year and beyond. Revenues from our ground defense business were minimal during the period, as a result of the completion of some of the programs associated with upgrading the mine resistant vehicles for the military and we discussed that last call.

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