BELOIT, Wis., Feb. 6, 2012 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported financial results for the
fourth quarter and fiscal year ended December 31, 2011. Net sales for the fourth
quarter were $727.0 million, a 30.8%
increase compared to fourth quarter 2010 net sales of $555.7 million. Adjusted diluted earnings
per share for the fourth quarter 2011 were $0.93 compared to $0.65 for the fourth quarter 2010. Net
sales for fiscal 2011 were $2,808.3
million, a 25.5% increase compared fiscal 2010 net sales of
$2,238.0 million. Adjusted
diluted earnings per share for fiscal 2011 were $4.71 compared to $3.84 for fiscal 2010.
"Our performance in the fourth quarter is another indicator
that the diversification of our end markets and our ability to be a
consistent and successful acquirer allow us to perform well through
difficult cycles. A number of our key business units
performed well. Revenues in our commercial and industrial
motors business, our mechanical businesses and Unico remained
strong, offsetting continued weakness in HVAC. The EPC
integration remains on track, and the performance of the business
helped the Company exceed our guidance for the quarter. EPC
is now a key positive contributor to the Company," commented Mr.
Mark Gliebe, Chairman and Chief
Executive Officer.
Fiscal 2011 results included the following items:
- In connection with the acquisition of the Electrical Products
Company of A. O. Smith Corporation ("EPC"), the Company incurred
$15.5 million of acquisition related
expenses, which were recorded in operating expenses. In
addition, in the third and fourth quarters, the Company's results
were impacted by inventory purchase accounting adjustments of
$10.3 million and $15.5 million, respectively, related to the EPC
acquisition, which were recorded in cost of sales.
- In the second quarter, the Company incurred an incremental
warranty expense of $28.0 million
related to a manufacturing quality problem. In the fourth
quarter, the Company reduced the expense by $15.4 million to reflect its revised estimate of
future costs. The net $12.6
million expense was recorded in cost of sales.
- In the third quarter, the Company divested its pool and spa
motor business resulting in a gain of $6.5
million. The gain was recorded in operating
expenses.
- In the fourth quarter, the Company recognized $5.8 million of restructuring costs related to
facility closures and production line transfers, aimed at improving
operational efficiencies at its Australian and European businesses.
The expenses were recorded in operating expenses.
*This earnings release includes non-GAAP financial measures.
Schedules that reconcile these non-GAAP financial measures to the
most comparable GAAP figures are included with this earnings
release.
The following table summarizes the items listed above and the
impact on the Company's adjusted diluted earnings per share for
2011:
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
2011 Diluted Earnings Per Share
(GAAP)
|
$
0.99
|
|
$
0.88
|
|
$
1.13
|
|
$
0.80
|
|
$
3.79
|
|
|
EPC Acquisition and
Purchase
Accounting
Costs
|
0.12
|
|
0.06
|
|
0.28
|
|
0.26
|
|
0.73
|
|
|
Incremental Warranty
Expense
|
|
|
0.44
|
|
|
|
(0.23)
|
|
0.19
|
|
|
Gain on Divestiture
|
|
|
|
|
(0.10)
|
|
|
|
(0.10)
|
|
|
Restructuring Costs
|
|
|
|
|
|
|
0.10
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Adjusted Diluted
Earnings
Per Share
(Non-GAAP)
|
$
1.11
|
|
$
1.38
|
|
$
1.31
|
|
$
0.93
|
|
$
4.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 Diluted Earnings Per
Share
(GAAP)
|
$
0.98
|
|
$
1.07
|
|
$
1.14
|
|
$
0.65
|
|
$
3.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 2011 results include the
effect of the increasing weighted average number of shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
(Dollars in
millions)
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
2011
|
|
2010
|
|
%
Change
|
|
Net Sales
|
|
$
727.0
|
|
$
555.7
|
|
30.8%
|
|
$ 2,808.3
|
|
$
2,238.0
|
|
25.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
660.3
|
|
$
494.2
|
|
33.6%
|
|
$ 2,533.3
|
|
$
2,002.0
|
|
26.5%
|
|
Mechanical
segment
|
|
$
66.7
|
|
$
61.5
|
|
8.5%
|
|
$
275.0
|
|
$
236.0
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for the fourth quarter 2011 increased $171.3 million compared to the fourth quarter
2010, including $198.5 million of
incremental net sales from the businesses acquired within the last
twelve months (the "acquired businesses"). Fiscal 2011 net
sales increased $570.3 million,
including $494.3 million of
incremental net sales from the acquired businesses.
In the Electrical segment, net sales for the fourth quarter 2011
increased $166.1 million compared to
the fourth quarter 2010, including $198.5
million of incremental net sales from the acquired
businesses. North American residential HVAC net sales,
excluding net sales from the acquired businesses, decreased 16.1%
in the fourth quarter 2011 compared to the fourth quarter 2010, due
to a mild winter, the effects of reduced federal tax incentives for
high efficiency products, and increased industry sales of R22
systems. North American commercial and industrial net sales
from continuing operations, excluding net sales from the acquired
businesses, increased 5.1% in the fourth quarter 2011 compared to
the fourth quarter 2010. Fiscal 2011 Electrical segment net
sales increased $531.3 million
compared to fiscal 2010, including $484.4
million of incremental net sales from the acquired
businesses.
In the Mechanical segment, net sales for the fourth quarter 2011
increased $5.2 million compared to
the fourth quarter 2010. The increase was driven primarily by
improving demand in later cycle end markets. Fiscal 2011
Mechanical segment net sales increased $39.0
million compared to fiscal 2010, including $9.9 million of incremental net sales from the
acquired businesses.
Fourth quarter 2011 net sales to regions outside the United States increased 24.6% compared to
the fourth quarter 2010. Fiscal 2011 net sales outside
the United States exceeded the
one billion dollar mark and were
36.0% of total net sales, compared to 31.6% of total net sales for
fiscal 2010.
Sales of high efficiency products increased 17.7% compared to
the fourth quarter of 2010. Fourth quarter 2011 net sales of
high efficiency products were 13.4% of total net sales, compared to
14.9% for the fourth quarter 2010.
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
(Dollars in
thousands)
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Gross Profit
|
|
$
170,883
|
|
$
130,267
|
|
$
665,989
|
|
$
549,350
|
|
|
As a percentage of net
sales
|
|
23.5%
|
|
23.4%
|
|
23.7%
|
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
154,975
|
|
$
115,361
|
|
$
590,933
|
|
$
486,117
|
|
|
As a percentage of
net sales
|
|
23.5%
|
|
23.3%
|
|
23.3%
|
|
24.3%
|
|
|
Mechanical
segment
|
|
$
15,908
|
|
$
14,906
|
|
$
75,056
|
|
$
63,233
|
|
|
As a percentage of
net sales
|
|
23.9%
|
|
24.2%
|
|
27.3%
|
|
26.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit was $170.9 million,
or 23.5% of net sales, for the fourth quarter 2011 compared to
$130.3 million, or 23.4% of net
sales, for the fourth quarter 2010. Cost of sales for the fourth
quarter 2011 included expenses of $15.5
million related to EPC inventory purchase accounting
adjustments, offset by a $15.4
million reduction in the incremental warranty expense
established in the second quarter 2011. Excluding these items,
adjusted gross profit was $171.0
million or 23.5% of sales. Fiscal 2011 cost of sales
included $25.8 million of inventory
purchase accounting adjustments and $12.6
million of incremental warranty expenses. Excluding
these expenses, adjusted gross profit was $704.4 million, or 25.1% of net sales for fiscal
2011.
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
(Dollars in
thousands)
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Operating Expenses
|
|
$
112,243
|
|
$
91,979
|
|
$
410,276
|
|
$
311,615
|
|
|
As a percentage of net
sales
|
|
15.4%
|
|
16.6%
|
|
14.6%
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
102,195
|
|
$
82,346
|
|
$
368,359
|
|
$
275,886
|
|
|
As a percentage of
net sales
|
|
15.5%
|
|
16.7%
|
|
14.5%
|
|
13.8%
|
|
|
Mechanical
segment
|
|
$
10,048
|
|
$
9,633
|
|
$
41,917
|
|
$
35,729
|
|
|
As a percentage of
net sales
|
|
15.1%
|
|
15.7%
|
|
15.2%
|
|
15.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
(Dollars In
thousands)
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Income from
Operations
|
|
$
58,640
|
|
$
38,288
|
|
$
255,713
|
|
$
237,735
|
|
|
As a percentage of net
sales
|
|
8.1%
|
|
6.9%
|
|
9.1%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
52,780
|
|
$
33,016
|
|
$
222,574
|
|
$
210,231
|
|
|
As a percentage of
net sales
|
|
8.0%
|
|
6.7%
|
|
8.8%
|
|
10.5%
|
|
|
Mechanical
segment
|
|
$
5,860
|
|
$
5,272
|
|
$
33,139
|
|
$
27,504
|
|
|
As a percentage of
net sales
|
|
8.8%
|
|
8.6%
|
|
12.1%
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses for the fourth quarter 2011 increased
$20.3 million primarily due to
$21.5 million from the acquired
businesses and $5.8 million of
restructuring charges. Fiscal 2011 operating expenses increased
$98.7 million including $73.5 million from the acquired businesses,
$15.5 million of acquisition related
expenses for the EPC acquisition, and $5.8
million of restructuring charges, partially offset by the
$6.5 million gain on the divested
pool and spa business.
Net income attributable to Regal Beloit Corporation for the
fourth quarter 2011 was $33.5 million
compared to $25.2 million for the
fourth quarter 2010. Diluted earnings per share for the
fourth quarter 2011 were $0.80
compared to $0.65 for the fourth
quarter 2010. For fiscal 2011, net income attributable to
Regal Beloit Corporation was $152.3
million compared to $149.4
million for fiscal 2010. Diluted earnings per share
for fiscal 2011 were $3.79 compared
to $3.84 for fiscal 2010.
Net cash provided by operating activities was $89.0 million for the fourth quarter 2011
compared to $26.8 million for the
fourth quarter 2010. Capital expenditures for the fourth
quarter 2011 were $13.2 million
compared to $15.0 million for the
fourth quarter 2010. Fiscal 2011 free cash flow totaled
$207.7 million, compared to
$130.4 million for fiscal 2010.
Fiscal 2011 free cash flow represented 136% of net income
attributable to Regal Beloit Corporation, compared to 87% for
fiscal 2010.
"Through the hard work and dedication of our employees, Regal
Beloit achieved record performance in 2011. This was achieved
in spite of very challenging conditions for residential HVAC
demand. We take great pride in the results we were able to
deliver. With the integration of EPC now well under way, we
have an even stronger global footprint, enhanced energy efficiency
technology and a more diversified product portfolio. Further,
our recent acquisition of Milwaukee Gear strengthens our Mechanical
offerings and increases our presence in the growing oil and gas
space.
"As we look forward into the first quarter of fiscal 2012, we
expect continued strength from our commercial and industrial motors
business, our mechanical businesses and Unico, and continued
softness in residential HVAC applications. Our earnings
guidance for the first quarter of 2012 is $1.07 to $1.13 per share," continued Mr. Gliebe.
Regal Beloit will hold a
conference call pertaining to this news release at 9:00 AM CST (10:00 AM
EST) on Tuesday, February 7,
2012. To listen to the call and view the presentation slides
via the internet, please go http://www.regalbeloit.com/ or at:
http://www.videonewswire.com/event.asp?id=84548. Individuals
who would like to participate by phone should dial 866-524-3160,
referencing Regal Beloit. International callers should dial
412-317-6760, referencing Regal Beloit.
A telephone replay of the call will be available through
May 1, 2012, at 877-344-7529,
conference ID 10008818. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until May 1, 2012,
and can be accessed at
http://www.regalbeloit.com/rbceventspresentations.htm or at
http://www.videonewswire.com/event.asp?id=84548
Regal Beloit Corporation is a leading manufacturer of electric
motors, mechanical and electrical motion controls and power
generation products serving markets throughout the world.
Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing,
sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal Beloit's common stock is a
component of the S&P Mid Cap 400 Index and the Russell 2000
Index.
CAUTIONARY STATEMENT
The following is a cautionary statement made under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical facts, the statements contained in this press release
may be forward looking statements. Forward-looking statements
represent our management's judgment regarding future events.
In many cases, you can identify forward-looking statements by
terminology such as "may," "will," "plan," "expect,"
"anticipate," "estimate," "believe," or "continue" or the negative
of these terms or other similar words. Actual results and
events could differ materially and adversely from those contained
in the forward-looking statements due to a number of factors,
including: actions taken by our competitors and our ability to
effectively compete in the increasingly competitive global electric
motor, power generation and mechanical motion control industries;
our ability to develop new products based on technological
innovation and the marketplace acceptance of new and existing
products; fluctuations in commodity prices and raw material costs;
our dependence on significant customers; issues and costs arising
from the integration of acquired companies and businesses,
including the timing and impact of purchase accounting adjustments;
unanticipated costs or expenses we may incur related to product
warranty issues; our dependence on key suppliers and the potential
effects of supply disruptions; infringement of our intellectual
property by fourth parties, challenges to our intellectual
property, and claims of infringement by us of fourth party
technologies; increases in our overall debt levels as a result of
acquisitions or otherwise and our ability to repay principal and
interest on our outstanding debt; product liability and other
litigation, or the failure of our products to perform as
anticipated, particularly in high volume applications; economic
changes in global markets where we do business, such as reduced
demand for the products we sell, currency exchange rates, inflation
rates, interest rates, recession, foreign government policies and
other external factors that we cannot control; unanticipated
liabilities of acquired businesses; cyclical downturns affecting
the global market for capital goods; difficulties associated with
managing foreign operations; and other risks and uncertainties
including but not limited to those described in Item 1A-Risk
Factors of the Company's Annual Report on Form 10-K filed on
March 2, 2011 and from time to time
in our reports filed with U.S. Securities and Exchange Commission.
All subsequent written and oral forward-looking statements
attributable to us or to persons acting on our behalf are expressly
qualified in their entirety by the applicable cautionary
statements. The forward-looking statements included in this
presentation are made only as of their respective dates, and we
undertake no obligation to update these statements to reflect
subsequent events or circumstances.
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
Unaudited
Dollars in Thousands, Except
Cash Dividends Declared and Per Share Data
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net Sales
|
|
$
727,007
|
|
$
555,678
|
|
$
2,808,332
|
|
$
2,237,978
|
|
|
Cost of Sales
|
|
556,124
|
|
425,411
|
|
2,142,343
|
|
1,688,628
|
|
|
Gross Profit
|
|
170,883
|
|
130,267
|
|
665,989
|
|
549,350
|
|
|
Operating Expenses
|
|
112,243
|
|
91,979
|
|
410,276
|
|
311,615
|
|
|
Income From
Operations
|
|
58,640
|
|
38,288
|
|
255,713
|
|
237,735
|
|
|
Interest Expense
|
|
10,729
|
|
5,218
|
|
31,116
|
|
19,576
|
|
|
Interest Income
|
|
554
|
|
770
|
|
1,740
|
|
2,570
|
|
|
Income Before Taxes &
Noncontrolling Interests
|
|
48,465
|
|
33,840
|
|
226,337
|
|
220,729
|
|
|
Provision For Income
Taxes
|
|
14,747
|
|
7,679
|
|
68,317
|
|
66,045
|
|
|
Net Income
|
|
33,718
|
|
26,161
|
|
158,020
|
|
154,684
|
|
|
Less: Net Income Attributable to
Noncontrolling
Interests, net of
tax
|
|
266
|
|
918
|
|
5,730
|
|
5,305
|
|
|
Net Income Attributable to
Regal Beloit Corporation
|
|
$
33,452
|
|
$
25,243
|
|
$
152,290
|
|
$
149,379
|
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.81
|
|
$
0.65
|
|
$
3.84
|
|
$
3.91
|
|
|
Assuming
Dilution
|
|
$
0.80
|
|
$
0.65
|
|
$
3.79
|
|
$
3.84
|
|
|
Cash Dividends
Declared
|
|
$
0.18
|
|
$
0.17
|
|
$
0.71
|
|
$
0.67
|
|
|
Weighted Average Number of
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,524,882
|
|
38,607,128
|
|
39,687,559
|
|
38,236,168
|
|
|
Assuming
Dilution
|
|
41,947,761
|
|
39,052,195
|
|
40,144,481
|
|
38,921,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
Unaudited
Dollars in Thousands
|
|
|
|
Mechanical
Segment
|
Electrical
Segment
|
|
|
|
Fourth
Quarter
|
|
Fourth
Quarter
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net Sales
|
|
$
66,698
|
|
$
61,513
|
|
$
660,309
|
|
$
494,165
|
|
|
Income from
Operations
|
|
5,860
|
|
5,272
|
|
52,780
|
|
33,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mechanical
Segment
|
Electrical
Segment
|
|
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net Sales
|
|
$
274,969
|
|
$
235,989
|
|
$
2,533,363
|
|
$
2,001,989
|
|
|
Income from
Operations
|
|
33,139
|
|
27,504
|
|
222,574
|
|
210,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
Dollars in Thousands
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
December 31,
2011
|
|
January 1,
2011
|
|
Current Assets:
|
|
|
|
|
|
Cash and
Investments
|
|
$
142,627
|
|
$
230,858
|
|
Trade Receivables, less
Allowances
of $13,631 in 2011 and
$10,637 in 2010
|
|
424,185
|
|
331,017
|
|
Inventories
|
|
575,785
|
|
390,587
|
|
Prepaid Expenses and Other
Current Assets
|
|
138,237
|
|
135,589
|
|
Total Current
Assets
|
|
1,280,834
|
|
1,088,051
|
|
|
|
|
|
|
|
Property, Plant, Equipment and
Noncurrent Assets
|
|
1,986,620
|
|
1,361,085
|
|
Total Assets
|
|
$
3,267,454
|
|
$
2,449,136
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Accounts
Payable
|
|
$
247,035
|
|
$
231,705
|
|
Other Accrued
Expenses
|
|
262,612
|
|
159,000
|
|
Current Maturities of
Debt
|
|
10,030
|
|
8,637
|
|
Total Current
Liabilities
|
|
519,677
|
|
399,342
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
909,159
|
|
428,256
|
|
Other Noncurrent
Liabilities
|
|
257,379
|
|
224,376
|
|
Equity:
|
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
1,540,771
|
|
1,361,960
|
|
Noncontrolling Interests
|
|
40,468
|
|
35,202
|
|
Total Equity
|
|
1,581,239
|
|
1,397,162
|
|
Total Liabilities and
Equity
|
|
$
3,267,454
|
|
$
2,449,136
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
Unaudited
Dollars in Thousands
|
|
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
33,718
|
|
$
26,161
|
|
$
158,020
|
|
$
154,684
|
|
Adjustments to reconcile
net income to net cash
provided by operating
activities (net of acquisitions):
|
|
|
|
Depreciation
and amortization
|
|
28,528
|
|
18,580
|
|
98,238
|
|
72,869
|
|
Excess tax
benefits from stock-based compensation
|
|
(369)
|
|
(154)
|
|
(1,409)
|
|
(1,735)
|
|
(Gains)
Loss on disposition of property, net
|
|
(250)
|
|
208
|
|
(5,863)
|
|
4,659
|
|
Share-based
compensation expense
|
|
4,116
|
|
1,779
|
|
14,284
|
|
6,747
|
|
Change in
assets and liabilities
|
|
23,287
|
|
(19,773)
|
|
2,026
|
|
(61,836)
|
|
Net cash
provided by operating activities
|
|
89,030
|
|
26,801
|
|
265,296
|
|
175,388
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(13,232)
|
|
(15,005)
|
|
(57,621)
|
|
(44,994)
|
|
Purchases of investment
securities
|
|
-
|
|
(103,628)
|
|
|
|
(416,797)
|
|
Sales of investment
securities
|
|
-
|
|
240,762
|
|
55,998
|
|
477,514
|
|
Business acquisitions, net
of cash acquired
|
|
(1,020)
|
|
(104,658)
|
|
(765,882)
|
|
(211,916)
|
|
Sale of property, plant,
and equipment
|
|
250
|
|
1,388
|
|
15,363
|
|
1,496
|
|
Net cash provided by (used
in) investing activities
|
|
(14,002)
|
|
18,859
|
|
(752,142)
|
|
(194,697)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Repayments of convertible
debt
|
|
-
|
|
-
|
|
-
|
|
(39,198)
|
|
Net borrowings
(repayments) under revolving credit
facility
|
-
|
|
-
|
|
-
|
|
(2,863)
|
|
Borrowings under revolving
credit facility
|
|
54,000
|
|
-
|
|
254,000
|
|
-
|
|
Repayments under revolving
credit facility
|
|
(73,000)
|
|
-
|
|
(245,000)
|
|
-
|
|
Proceeds from short-term
borrowings
|
|
2,616
|
|
-
|
|
24,062
|
|
-
|
|
Repayments of short-term
borrowings
|
|
(4,820)
|
|
691
|
|
(22,084)
|
|
(8,448)
|
|
Proceeds from long-term
borrowings
|
|
-
|
|
-
|
|
500,000
|
|
-
|
|
Repayments of long-term
debt
|
|
(28,023)
|
|
(46)
|
|
(28,138)
|
|
(184)
|
|
Dividends paid to
shareholders
|
|
(7,474)
|
|
(6,562)
|
|
(27,566)
|
|
(25,096)
|
|
Proceeds from the exercise
of stock options
|
|
19
|
|
214
|
|
1,875
|
|
3,759
|
|
Excess tax benefits from
stock-based compensation
|
|
369
|
|
154
|
|
1,409
|
|
1,735
|
|
Financing fees
paid
|
|
-
|
|
-
|
|
(2,776)
|
|
-
|
|
Net cash provided by (used
in) financing activities
|
|
(56,313)
|
|
(5,549)
|
|
455,782
|
|
(70,295)
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON
CASH
|
|
(502)
|
|
340
|
|
(840)
|
|
1,713
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents
|
|
18,213
|
|
40,451
|
|
(31,904)
|
|
(87,891)
|
|
Cash and cash equivalents
at beginning of period
|
|
124,414
|
|
134,080
|
|
174,531
|
|
262,422
|
|
Cash and cash equivalents
at end of period
|
|
$
142,627
|
|
$
174,531
|
|
$
142,627
|
|
$
174,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP MEASURES
Unaudited
Dollars in Thousands, Except Per
Share Data
Regal Beloit Corporation
prepares financial statements in accordance with accounting
principles generally accepted in the United States (GAAP).
Regal Beloit Corporation also discloses adjusted diluted
earnings per share (EPS), adjusted gross profit, adjusted gross
profit as a percentage of net sales, free cash flow and free cash
flow as a percentage of net income attributable to Regal Beloit
Corporation, (collectively, "non-GAAP financial measures").
Management uses these measures in its internal performance
reporting and for reports to the Board of Directors. Regal
Beloit Corporation also discloses these measures in its quarterly
earnings releases, on investor conference calls, and in investor
presentations and similar events. Management believes that these
non-GAAP financial measures are useful measures for providing
investors with additional insight into the Company's operating
performance. This additional information is not meant to be
considered in isolation or as a substitute for Regal Beloit
Corporation's results of operations prepared and presented in
accordance with GAAP.
These non-GAAP financial
measures exclude the effects of certain items that are not
comparable from one period to the next. Free cash flow is
defined as net cash provided by operating activities less additions
to property, plant and equipment.
|
|
|
|
|
|
|
|
|
Dollars in Thousands, Except Per
Share Data
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
|
|
2011
|
|
2011
|
|
GAAP Diluted Earnings Per
Share
|
|
$
0.80
|
|
$
3.79
|
|
EPC Purchase Accounting
Adjustments and Acquisition Costs
|
|
0.26
|
|
0.73
|
|
Incremental Warranty
Expense
|
|
(0.23)
|
|
0.19
|
|
Gain on Divestiture
|
|
-
|
|
(0.10)
|
|
Restructuring Costs
|
|
0.10
|
|
0.10
|
|
Adjusted Diluted Earnings Per
Share
|
|
$
0.93
|
|
$
4.71
|
|
|
|
|
|
|
|
GAAP Gross Profit
|
|
$
170,883
|
|
$ 665,989
|
|
EPC Purchase Accounting
Adjustments and Acquisition Costs
|
|
15,500
|
|
25,800
|
|
Incremental Warranty
Expense
|
|
(15,400)
|
|
12,600
|
|
Adjusted Gross Profit
|
|
$
170,983
|
|
$ 704,389
|
|
Adjusted Gross Profit as a
Percentage of Net Sales
|
|
23.5%
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
|
|
2011
|
|
2010
|
|
GAAP Net Cash Provided by
Operating Activities
|
|
$
265,296
|
|
$ 175,388
|
|
Additions to Property Plant and
Equipment
|
|
(57,621)
|
|
(44,994)
|
|
Free Cash Flow
|
|
$
207,675
|
|
$ 130,394
|
|
Free Cash Flow as a Percentage
of Net Income
Attributable to Regal
Beloit
|
136.4%
|
|
87.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Regal Beloit Corporation