BELOIT, Wis., Oct. 29, 2012 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported financial results for the
third quarter ended September 29,
2012. Net sales of $779.5
million increased 5.8% compared to $736.9 million for the third quarter of
2011. Diluted earnings per share were $1.29 for the third quarter of 2012 compared to
diluted earnings per share of $1.13
for the third quarter of 2011.
"Despite challenging global economic conditions, Regal
delivered another strong operating performance in the third
quarter, in line with our earlier guidance," commented Mr.
Mark Gliebe, Chairman and Chief
Executive Officer. "We experienced slight growth in our
residential HVAC business however most of our other businesses
around the world saw slowing demand. We made substantial
progress during the quarter on our previously announced
restructuring plans to rationalize our manufacturing operations,
reduce our global footprint and produce synergy savings.
Further, we have been proactively controlling our expenses during
these uncertain times. Our teams did a nice job of protecting
our margins in spite of softer demand and we delivered another
quarter of free cash flow exceeding net income," continued Mr.
Gliebe.
Adjusted diluted earnings per share* were $1.32 for the third quarter of 2012, after adding
$0.08 of restructuring charges for
announced facility closures and other restructuring activities and
subtracting $0.05 for the prior year
tax adjustment. This compares to adjusted diluted earnings per
share of $1.31 in the third quarter
of 2011 as detailed in the table below.
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP
Diluted Earnings Per Share
|
|
$
1.29
|
|
$
1.13
|
|
$
3.94
|
|
$
3.00
|
EPC
Acquisition Costs and Purchase Accounting Costs
|
|
-
|
|
0.28
|
|
-
|
|
0.46
|
2Q 2011
Warranty Expense Item
|
|
-
|
|
-
|
|
-
|
|
0.44
|
Restructuring Costs
|
|
0.08
|
|
-
|
|
0.09
|
|
-
|
Gain on
Disposal of Real Estate
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
Gain on
Divestiture
|
|
-
|
|
(0.10)
|
|
-
|
|
(0.10)
|
Prior Year
Tax Benefit
|
|
(0.05)
|
|
-
|
|
(0.05)
|
|
-
|
Adjusted
Diluted Earnings Per Share
|
|
$
1.32
|
|
$
1.31
|
|
$
3.96
|
|
$
3.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
(In
millions)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
%
|
|
September 29,
|
|
October
1,
|
|
%
|
|
|
2012
|
|
2011
|
|
Change
|
|
2012
|
|
2011
|
|
Change
|
Net
Sales
|
|
$
779.5
|
|
$
736.9
|
|
5.8%
|
|
$
2,451.3
|
|
$
2,081.3
|
|
17.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical segment
|
|
708.3
|
|
667.5
|
|
6.1%
|
|
2,223.3
|
|
1,873.0
|
|
18.7%
|
Mechanical segment
|
|
71.2
|
|
69.4
|
|
2.6%
|
|
228.0
|
|
208.3
|
|
9.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical segment net sales in the third quarter 2012 included
$179.4 million from the businesses
acquired within the last twelve months ("acquired
businesses"). Excluding the acquired businesses, Electrical
segment net sales declined 9.2% as a result of declining net sales
in the Commercial and Industrial and Asian businesses. North
American residential HVAC motor net sales increased 0.4% for the
third quarter 2012 compared to the third quarter 2011. North
American commercial and industrial motor net sales decreased 6.4%
for the third quarter 2012 compared to the third quarter of 2011,
adjusting for the divested business.
Mechanical segment net sales for the third quarter 2012 included
$11.1 million from the acquired
businesses. Excluding the impact of the acquired and divested
businesses, Mechanical segment sales in North America decreased 0.9%.
Third quarter 2012 net sales to regions outside the United States decreased 9.4% compared to
third quarter 2011 and represented 31.4% of total net sales.
Sales of high efficiency products were 21.8% of net sales in the
third quarter 2012. Excluding acquired businesses, the impact
of foreign currency exchange rates decreased total net sales by
1.7% for the third quarter 2012 compared to the third quarter
2011.
GROSS
PROFIT
|
|
(In
millions)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Gross
Profit
|
|
$
192.6
|
|
$
179.6
|
|
$
610.3
|
|
$
495.1
|
As
a percentage of net sales
|
|
24.7%
|
|
24.4%
|
|
24.9%
|
|
23.8%
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Electrical segment
|
|
$
173.2
|
|
$
160.0
|
|
$
549.3
|
|
$
436.0
|
As a percentage of net
sales
|
|
24.5%
|
|
24.0%
|
|
24.7%
|
|
23.3%
|
Mechanical segment
|
|
$
19.4
|
|
19.6
|
|
$
61.0
|
|
$
59.1
|
As a percentage of net
sales
|
|
27.2%
|
|
28.2%
|
|
26.8%
|
|
28.4%
|
Third quarter 2012 gross profit included $2.8 million of restructuring expenses, reported
in the Electrical segment cost of sales. Third quarter
2011 gross profit included EPC purchase accounting inventory
adjustments of $10.3 million,
reflected in the Electrical segment cost of sales.
OPERATING EXPENSES
|
|
(In
millions)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Operating
Expenses
|
|
$
109.3
|
|
$
101.5
|
|
$
344.6
|
|
$
298.0
|
As
a percentage of net sales
|
|
14.0%
|
|
13.8%
|
|
14.1%
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
Operating
Expenses by Segment:
|
|
|
|
|
|
|
|
|
Electrical segment
|
|
$
99.9
|
|
$
90.7
|
|
$
315.2
|
|
$
266.1
|
As a percentage of net
sales
|
|
14.1%
|
|
13.6%
|
|
14.2%
|
|
14.2%
|
Mechanical segment
|
|
$
9.4
|
|
$
10.8
|
|
$
29.4
|
|
$
31.9
|
As a percentage of net
sales
|
|
13.2%
|
|
15.6%
|
|
12.9%
|
|
15.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical segment operating expenses for the third quarter 2012
included $18.5 million from the
acquired businesses, restructuring expenses of $2.4 million, and minimal acquisition related
expenses. In the third quarter 2011, Electrical segment
operating expenses included EPC operating expenses of $10.0 million, a gain of $6.5 million on the divested business, and
acquisition related expenses of $5.9
million. Mechanical segment operating expenses for the
third quarter included an incremental $1.0
million from the acquired businesses.
INCOME
FROM OPERATIONS
|
|
(In
millions)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Income
from Operations
|
|
$
83.3
|
|
$
78.1
|
|
$
265.7
|
|
$
197.1
|
As
a percentage of net sales
|
|
10.7%
|
|
10.6%
|
|
10.8%
|
|
9.5%
|
|
|
|
|
|
|
|
|
|
Income
from Operations by Segment:
|
|
|
|
|
|
|
|
|
Electrical segment
|
|
$
73.2
|
|
$
69.3
|
|
$
234.1
|
|
$
169.8
|
As a percentage of net
sales
|
|
10.3%
|
|
10.4%
|
|
10.5%
|
|
9.1%
|
Mechanical segment
|
|
$
10.1
|
|
$
8.8
|
|
$
31.6
|
|
$
27.3
|
As a percentage of net
sales
|
|
14.2%
|
|
12.7%
|
|
13.9%
|
|
13.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The effective tax rate for the third quarter 2012 was 24.5%
compared to 30.3% for the third quarter 2011 driven primarily by
the qualification in China of a
high technology tax incentive for two of our facilities that
resulted in a retroactive benefit of $2.3
million and additional future benefits. Interest
expense was flat compared to third quarter 2011.
Net cash provided by operating activities was $71.8 million, an increase of $5.1 million from the prior year. Cash flow
from operations was used to fund capital expenditures, pay
dividends and reduce debt. Capital expenditures in the third
quarter 2012 were $21.3 million
including the completion of two factories in China, partially offset by $4.7 million of government grants.
"Since the latter half of the third quarter, we've seen
further economic weakening and increased uncertainty. These
conditions are impacting our business in most areas of the world,"
Gliebe said. "For the fourth quarter, we are anticipating our
typical seasonal sales declines with modest year-over-year growth
in our residential HVAC business. However, the overall
slowing demand in our other markets will put pressure on our
operating performance. We will focus on executing on our
restructuring plans and simplifying the Company which should keep
us nimble and generate future savings.
"Including $0.09 of anticipated
expense from these restructuring activities, our earnings guidance
for the fourth quarter of 2012 is $0.58 to
$0.66 per share. Excluding the $0.09 of restructuring expense, our adjusted EPS
guidance is $0.67 to $0.75,"
continued Mr. Gliebe.
Regal will hold a conference call at 9:00
AM CDT (10:00 AM EDT) on
Tuesday, October 30, 2012, to discuss
the earnings release. To listen to the call and view the
presentation slides via the internet, please go to
http://www.regalbeloit.com/ or at:
http://www.videonewswire.com/event.asp?id=89749. Individuals
who would like to participate by phone should dial 800-860-2442,
referencing Regal. International callers should dial
412-858-4600, referencing Regal.
A telephone replay of the call will be available through
December 30, 2012, at 877-344-7529,
conference ID 10019118. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until December 30,
2012, and can be accessed at
http://www.regalbeloit.com/rbceventspresentations.htm or at
http://www.videonewswire.com/event.asp?id=89749.
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 third parties, challenges to our intellectual property,
and claims of infringement by us of third 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 February
29, 2012 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 Millions, Except Cash Dividends Declared and Per Share
Data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
Sales
|
|
$
779.5
|
|
$
736.9
|
|
$
2,451.3
|
|
$
2,081.3
|
Cost of
Sales
|
|
586.9
|
|
557.3
|
|
1,841.0
|
|
1,586.2
|
Gross Profit
|
|
192.6
|
|
179.6
|
|
610.3
|
|
495.1
|
Operating
Expenses
|
|
109.3
|
|
101.5
|
|
344.6
|
|
298.0
|
Income From Operations
|
|
83.3
|
|
78.1
|
|
265.7
|
|
197.1
|
Interest
Expense
|
|
10.6
|
|
10.5
|
|
33.6
|
|
20.4
|
Interest
Income
|
|
0.4
|
|
0.5
|
|
1.2
|
|
1.2
|
Income Before Taxes & Noncontrolling Interests
|
|
73.1
|
|
68.1
|
|
233.3
|
|
177.9
|
Provision
For Income Taxes
|
|
17.9
|
|
20.6
|
|
63.9
|
|
53.6
|
Net
Income
|
|
55.2
|
|
47.5
|
|
169.4
|
|
124.3
|
Less: Net
Income Attributable to Noncontrolling Interests, net of
tax
|
|
0.9
|
|
1.8
|
|
3.7
|
|
5.5
|
Net
Income Attributable to Regal Beloit Corporation
|
|
$
54.3
|
|
$
45.7
|
|
$
165.7
|
|
$
118.8
|
Earnings
Per Share Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.30
|
|
$
1.14
|
|
$
3.98
|
|
$
3.04
|
Assuming Dilution
|
|
$
1.29
|
|
$
1.13
|
|
$
3.94
|
|
$
3.00
|
Cash
Dividends Declared
|
|
$
0.19
|
|
$
0.18
|
|
$
0.56
|
|
$
0.53
|
Weighted
Average Number of Shares Outstanding (in millions):
|
|
|
|
|
|
|
|
|
Basic
|
|
41.7
|
|
39.9
|
|
41.7
|
|
39.1
|
Assuming Dilution
|
|
42.0
|
|
40.4
|
|
42.0
|
|
39.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
Unaudited
|
(Dollars
in Millions)
|
|
|
Electrical Segment
|
|
Mechanical Segment
|
|
|
Three
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
Sales
|
|
$
708.3
|
|
$
667.5
|
|
$
71.2
|
|
$
69.4
|
Income
from Operations
|
|
73.2
|
|
69.3
|
|
10.1
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
Electrical Segment
|
|
Mechanical Segment
|
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
Sales
|
|
$
2,223.3
|
|
$
1,873.0
|
|
$
228.0
|
|
$
208.3
|
Income
from Operations
|
|
234.1
|
|
169.8
|
|
31.6
|
|
27.3
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
Unaudited
|
(Dollars
in Millions)
|
|
|
September 29,
|
|
December
31,
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
185.8
|
|
$
142.6
|
Trade Receivables, less Allowances of $12.0 million in
2012 and $13.6 million in 2011
|
|
466.5
|
|
424.2
|
Inventories
|
|
594.9
|
|
575.8
|
Prepaid Expenses and Other Current
Assets
|
|
108.5
|
|
99.9
|
Deferred Income Tax Benefits
|
|
42.9
|
|
48.6
|
Total Current Assets
|
|
1,398.6
|
|
1,291.1
|
|
|
|
|
|
Property,
Plant, Equipment and Noncurrent Assets
|
|
2,025.1
|
|
1,975.4
|
Total Assets
|
|
$
3,423.7
|
|
$
3,266.5
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts Payable
|
|
$
292.7
|
|
$
249.4
|
Other Accrued Expenses
|
|
226.4
|
|
265.1
|
Current Maturities of Debt
|
|
83.8
|
|
10.0
|
Total Current Liabilities
|
|
602.9
|
|
524.5
|
|
|
|
|
|
Long-Term
Debt
|
|
781.7
|
|
909.2
|
Other
Noncurrent Liabilities
|
|
262.2
|
|
256.4
|
Equity:
|
|
|
|
|
Total
Regal Beloit Corporation Shareholders' Equity
|
|
1,735.1
|
|
1,535.9
|
Noncontrolling Interests
|
|
41.8
|
|
40.5
|
Total
Equity
|
|
1,776.9
|
|
1,576.4
|
Total
Liabilities and Equity
|
|
$
3,423.7
|
|
$
3,266.5
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW
|
Unaudited
|
(Dollars
in Millions)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 29,
|
|
October
1,
|
|
September 29,
|
|
October
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
55.2
|
|
$
47.5
|
|
$
169.4
|
|
$
124.3
|
Adjustments to reconcile net income and changes in
assets and liabilities (net of acquisitions) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
31.9
|
|
26.1
|
|
95.0
|
|
69.7
|
Excess tax
benefits from share-based compensation
|
|
(0.8)
|
|
-
|
|
(1.7)
|
|
(1.0)
|
(Gain)
loss on disposition of property, net
|
|
(0.3)
|
|
(6.1)
|
|
(1.7)
|
|
(5.6)
|
Share-based compensation expense
|
|
2.2
|
|
3.9
|
|
6.7
|
|
10.1
|
Change in
assets and liabilities
|
|
(16.4)
|
|
(4.7)
|
|
8.5
|
|
(21.3)
|
Net cash
provided by operating activities
|
|
71.8
|
|
66.7
|
|
276.2
|
|
176.2
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions
to property, plant, and equipment
|
|
(21.3)
|
|
(5.9)
|
|
(66.1)
|
|
(44.3)
|
Purchase
of investment securities
|
|
(4.7)
|
|
-
|
|
(4.7)
|
|
-
|
Sales of
investment securities
|
|
1.5
|
|
-
|
|
1.5
|
|
56.0
|
Business
acquisitions, net of cash acquired
|
|
(7.7)
|
|
(742.8)
|
|
(103.0)
|
|
(764.8)
|
Grants
received for capital expenditures
|
|
4.7
|
|
-
|
|
7.1
|
|
-
|
Proceeds
from sale of assets
|
|
-
|
|
14.9
|
|
2.7
|
|
15.0
|
Net cash
used in investing activities
|
|
(27.5)
|
|
(733.8)
|
|
(162.5)
|
|
(738.1)
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Borrowings
under revolving credit facility
|
|
50.0
|
|
200.0
|
|
281.0
|
|
200.0
|
Repayments
under revolving credit facility
|
|
(23.0)
|
|
(172.0)
|
|
(263.0)
|
|
(172.0)
|
Proceeds
from short-term borrowings
|
|
35.6
|
|
0.9
|
|
36.4
|
|
21.5
|
Repayments
of short-term borrowings
|
|
(32.9)
|
|
(1.9)
|
|
(32.9)
|
|
(17.3)
|
Proceeds
from long-term borrowings
|
|
-
|
|
500.0
|
|
-
|
|
500.0
|
Payments
of long-term debt
|
|
(75.1)
|
|
-
|
|
(75.2)
|
|
(0.1)
|
Dividends
paid to shareholders
|
|
(7.9)
|
|
(6.9)
|
|
(22.9)
|
|
(20.1)
|
Proceeds
from the exercise of stock options
|
|
1.4
|
|
0.1
|
|
3.5
|
|
1.9
|
Excess tax
benefits from share-based compensation
|
|
0.8
|
|
-
|
|
1.7
|
|
1.0
|
Financing
fee paid
|
|
-
|
|
(0.9)
|
|
-
|
|
(2.8)
|
Net cash
provided by (used in) financing activities
|
|
(51.1)
|
|
519.3
|
|
(71.4)
|
|
512.1
|
|
|
|
|
|
|
|
|
|
EFFECT
OF EXCHANGE RATES ON CASH
|
|
1.7
|
|
(3.1)
|
|
0.9
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
(5.1)
|
|
(150.9)
|
|
43.2
|
|
(50.1)
|
Cash and
cash equivalents at beginning of period
|
|
190.9
|
|
275.3
|
|
142.6
|
|
174.5
|
Cash and
cash equivalents at end of period
|
|
$
185.8
|
|
$
124.4
|
|
$
185.8
|
|
$
124.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP MEASURES
|
Unaudited
|
(Dollars
in Millions Except Per Share Data)
|
|
We prepare
financial statements in accordance with accounting principles
generally accepted in the United States (GAAP). We also
disclose adjusted diluted earnings per share (EPS), adjusted gross
profit, adjusted gross profit as a percentage of net sales,
adjusted income from operations, free cash flow and free cash flow
as a percentage of net income attributable to Regal Beloit
Corporation (collectively, "non-GAAP financial measures"). We use
these measures in our internal performance reporting and for
reports to the Board of Directors. We also periodically
disclose certain of these measures in our quarterly earnings
releases, on investor conference calls, and in investor
presentations and similar events. We believe that these non-GAAP
financial measures are useful measures for providing investors with
additional insight into our operating performance. This additional
information is not meant to be considered in isolation or as a
substitute for our results of operations prepared and presented in
accordance with GAAP. Free cash flow is defined as net cash
provided by operating activities less additions to property, plant
and equipment.
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
29,
|
|
Oct.
1,
|
|
Sep.
29,
|
|
Oct.
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP
Diluted Earnings Per Share
|
|
$
1.29
|
|
$
1.13
|
|
$
3.94
|
|
$
3.00
|
EPC
Acquisition Costs and Purchase Accounting Costs
|
|
-
|
|
0.28
|
|
-
|
|
0.46
|
2Q 2011
Warranty Expense Item
|
|
-
|
|
-
|
|
-
|
|
0.44
|
Restructuring Costs
|
|
0.08
|
|
-
|
|
0.09
|
|
-
|
Gain on
Disposal of Real Estate
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
Gain on
Divestiture
|
|
-
|
|
(0.10)
|
|
-
|
|
(0.10)
|
Prior Year
Tax Benefit
|
|
(0.05)
|
|
-
|
|
(0.05)
|
|
-
|
Adjusted
Diluted Earnings Per Share
|
|
$
1.32
|
|
$
1.31
|
|
$
3.96
|
|
$
3.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
29,
|
|
Oct.
1,
|
|
Sep.
29,
|
|
Oct.
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP Gross
Profit
|
|
$
192.6
|
|
$179.6
|
|
$
610.3
|
|
$495.1
|
EPC
Purchase Accounting Costs
|
|
-
|
|
10.3
|
|
-
|
|
10.3
|
Restructuring Costs
|
|
2.8
|
|
-
|
|
3.3
|
|
-
|
2Q 2011
Warranty Expense Item
|
|
-
|
|
-
|
|
-
|
|
28.0
|
Adjusted
Gross Profit
|
|
$
195.4
|
|
$189.9
|
|
$
613.6
|
|
$533.4
|
|
|
|
|
|
|
|
|
|
Adjusted
Gross Profit as a Percentage of Net Sales
|
|
25.1%
|
|
25.8%
|
|
25.0%
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
29,
|
|
Oct.
1,
|
|
Sep.
29,
|
|
Oct.
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP
Income from Operations
|
|
$
83.3
|
|
$
78.1
|
|
$
265.7
|
|
$197.1
|
EPC
Acquisition Costs and Purchase Accounting Costs
|
|
-
|
|
16.1
|
|
-
|
|
25.7
|
2Q 2011
Warranty Expense Item
|
|
-
|
|
-
|
|
-
|
|
28.0
|
Restructuring Costs
|
|
5.2
|
|
-
|
|
5.7
|
|
-
|
Gain on
Disposal of Real Estate
|
|
-
|
|
-
|
|
(1.3)
|
|
-
|
Gain on
Divestiture
|
|
-
|
|
(6.5)
|
|
-
|
|
(6.5)
|
Adjusted
Income from Operations
|
|
$
88.5
|
|
$
87.7
|
|
$
270.1
|
|
$244.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
Sep.
29,
|
|
Oct.
1,
|
|
Sep.
29,
|
|
Oct.
1,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
GAAP Net
Cash Provided by Operating Activities
|
|
$
71.8
|
|
$
66.7
|
|
$
276.2
|
|
$176.2
|
Additions
to Property Plant and Equipment
|
|
(21.3)
|
|
(5.9)
|
|
(66.1)
|
|
(44.3)
|
Grants
Received for Capital Expenditures
|
|
4.7
|
|
-
|
|
7.1
|
|
-
|
Free Cash
Flow
|
|
$
55.2
|
|
$
60.8
|
|
$
217.2
|
|
$131.9
|
Free Cash
Flow as a Percentage of Net Income Attributable to Regal
Beloit
|
|
101.7%
|
|
133.0%
|
|
131.1%
|
|
111.0%
|
|
|
|
|
|
|
|
|
|
* 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.
SOURCE Regal Beloit Corporation