Regal Beloit Corporation Announces Fourth Quarter and Fiscal 2012
Financial Results
BELOIT, Wis., Feb. 4, 2013 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported financial results for the
fourth quarter and fiscal 2012. Net sales for the fourth quarter
2012 were $715.6 million compared to
$727.0 million for the fourth quarter
of 2011. Diluted earnings per share for the fourth quarter
2012 were $0.70 compared to
$0.80 for the fourth quarter of 2011.
Net sales for fiscal 2012 were a record $3,166.9 million compared to $2,808.3 million in 2011. Diluted earnings
per share for fiscal 2012 were a record $4.64 compared to $3.79 in 2011.
"2012 was a record year for Regal in revenues and
earnings," commented Mark
Gliebe, Chairman and Chief Executive Officer.
"As anticipated, the fourth quarter sales environment was
challenging. However, our team delivered and we achieved
results consistent with our most recent guidance. Our
residential HVAC business was up slightly and we experienced strong
growth at Unico while sales in most of our other businesses around
the world slowed in the fourth quarter. We continued our
progress in achieving synergy savings, and we delivered another
quarter of strong free cash flow of 175% of net
income."
The table below compares adjusted diluted earnings per share*
for the fourth quarter and fiscal 2012 to the same periods of the
prior year.
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
2012 GAAP
Diluted Earnings Per Share
|
|
$
1.16
|
|
$
1.49
|
|
$
1.29
|
|
$
0.70
|
|
$
4.64
|
Purchase
Accounting Costs
|
|
0.01
|
|
—
|
|
—
|
|
—
|
|
0.01
|
Restructuring Costs
|
|
—
|
|
0.01
|
|
0.08
|
|
0.06
|
|
0.15
|
Gain on
Disposal of Real Estate
|
|
(0.02)
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
Prior Year
Tax Benefit
|
|
—
|
|
—
|
|
(0.05)
|
|
—
|
|
(0.05)
|
2012
Adjusted Diluted Earnings Per Share
|
|
$
1.15
|
|
$
1.50
|
|
$
1.32
|
|
$
0.76
|
|
$
4.73
|
|
|
|
|
|
|
|
|
|
|
|
2011
Adjusted Diluted Earnings Per Share
|
|
$
1.11
|
|
$
1.38
|
|
$
1.31
|
|
$
0.93
|
|
$
4.71
|
|
|
*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.
|
|
|
NET
SALES
|
(Dollars
in millions)
|
|
|
Three
Months Ended
|
|
%
Change
|
|
Year
Ended
|
|
%
Change
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
|
Net
Sales
|
|
$715.6
|
|
$727.0
|
|
(1.6)%
|
|
$3,166.9
|
|
$2,808.3
|
|
12.8
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
646.9
|
|
660.3
|
|
(2.0)%
|
|
2,870.2
|
|
2,533.3
|
|
13.3
%
|
Mechanical
segment
|
|
68.7
|
|
66.7
|
|
3.0
%
|
|
296.7
|
|
275.0
|
|
7.9
%
|
Electrical segment net sales declined 2.0% in the fourth
quarter. North American residential HVAC net sales increased
0.2% for the fourth quarter 2012 compared to the fourth quarter
2011. North American commercial and industrial motor net
sales decreased 1.4% for the same period, adjusting for the
divested business. For the fiscal year, Electrical
segment net sales increased 13.3% including $537.2 million from the businesses acquired
within the last 12 months ("acquired businesses"). Excluding the
acquired and divested businesses, fiscal 2012 Electrical segment
net sales declined 7.8% driven primarily by softer HVAC demand in
the first half of 2012 and slowing commercial and industrial demand
in the second half of 2012.
Mechanical segment net sales for the fourth quarter 2012
included $10.4 million from the
acquired businesses. Excluding the impact of the acquired and
divested businesses, Mechanical segment net sales in North America decreased 2.6%.
Fiscal year 2012 Mechanical segment net sales included $42.5 million from the acquired
businesses. Excluding the impact of the acquired and
divested businesses, fiscal 2012 Mechanical segment net sales in
North America increased by
5.4%.
Fourth quarter 2012 net sales to regions outside the United States decreased 1.5% compared to
fourth quarter 2011 and represented 34.2% of total net sales.
Excluding acquired businesses, the impact of foreign currency
exchange rates decreased total net sales by 0.3% for the fourth
quarter 2012 compared to the fourth quarter 2011 and 1.2% for
fiscal 2012 compared to 2011.
In the fourth quarter 2012, sales of high efficiency products
grew 13.2% and represented 21.0% of net sales. For fiscal
2012, sales of high efficiency products increased 22.1% and
represented 20.3% of net sales.
GROSS
PROFIT
|
|
(Dollars
in millions)
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Gross
Profit
|
|
$160.7
|
|
$170.9
|
|
$771.0
|
|
$666.0
|
As a
percentage of net sales
|
|
22.5
%
|
|
23.5
%
|
|
24.3
%
|
|
23.7
%
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$142.4
|
|
$155.0
|
|
$691.7
|
|
$590.9
|
As a
percentage of net sales
|
|
22.0
%
|
|
23.5
%
|
|
24.1
%
|
|
23.3
%
|
Mechanical
segment
|
|
$
18.3
|
|
$
15.9
|
|
$
79.3
|
|
$75.1
|
As a
percentage of net sales
|
|
26.6
%
|
|
23.9
%
|
|
26.7
%
|
|
27.3
%
|
Fourth quarter 2012 gross profit included $3.6 million of restructuring expenses, reported
in the Electrical segment cost of sales. Fourth quarter
2011 Electrical segment gross profit included purchase accounting
inventory adjustments of $15.5
million, offset by a $15.4
million reduction in the previously disclosed warranty
expense recorded in the second quarter 2011. In the Mechanical
segment, fourth quarter 2012 gross profit margin improved due to
the benefits realized by the restructuring efforts.
For fiscal 2012, the Electrical segment gross profit included
$6.9 million of restructuring
charges. Fiscal 2011 Electrical segment gross profit
included $25.8 million of inventory
purchase accounting adjustments and the $12.6 million previously disclosed warranty
expense item. For the Mechanical segment, fiscal 2012
gross profit included $0.7 million
purchase accounting adjustments from the acquired business.
OPERATING EXPENSES
|
|
(Dollars
in millions)
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Operating
Expenses
|
|
$113.6
|
|
$112.2
|
|
$458.2
|
|
$410.3
|
As a
percentage of net sales
|
|
15.9
%
|
|
15.4
%
|
|
14.5
%
|
|
14.6
%
|
|
|
|
|
|
|
|
|
|
Operating
Expenses by Segment:
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$102.8
|
|
$102.2
|
|
$418.0
|
|
$368.4
|
As a
percentage of net sales
|
|
15.9
%
|
|
15.5
%
|
|
14.6
%
|
|
14.5
%
|
Mechanical
segment
|
|
$
10.8
|
|
$
10.0
|
|
$
40.2
|
|
$
41.9
|
As a
percentage of net sales
|
|
15.7
%
|
|
15.1
%
|
|
13.5
%
|
|
15.2
%
|
Electrical segment operating expenses for the fourth quarter
2012 included restructuring expenses of $0.3
million. In the fourth quarter 2011, Electrical
segment operating expenses included restructuring charges of
$5.8 million. Mechanical
segment operating expenses for the fourth quarter 2012 included an
incremental $1.3 million from the
acquired businesses.
Fiscal 2012 Electrical segment operating expenses included
restructuring expenses of $2.7
million, and $62.1 million of
incremental operating expenses from the acquired businesses.
Fiscal 2011 Electrical segment operating expenses included
$15.5 million of acquisition related
expenses, $5.8 million of
restructuring charges, and a $6.5
million gain on the divested pool and spa business.
For the Mechanical segment, fiscal 2012 included $4.4 million of incremental operating expenses
from the acquired business and a $1.3
million gain from the sale of surplus real
estate.
INCOME
FROM OPERATIONS
|
|
(Dollars
in millions)
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Income
from Operations
|
|
$
47.1
|
|
$
58.6
|
|
$312.8
|
|
$255.7
|
As a
percentage of net sales
|
|
6.6
%
|
|
8.1
%
|
|
9.9
%
|
|
9.1
%
|
|
|
|
|
|
|
|
|
|
Income
from Operations by Segment:
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
39.6
|
|
$
52.8
|
|
$273.7
|
|
$222.6
|
As a
percentage of net sales
|
|
6.1
%
|
|
8.0
%
|
|
9.5
%
|
|
8.8
%
|
Mechanical
segment
|
|
$
7.5
|
|
$
5.8
|
|
$
39.1
|
|
$
33.1
|
As a
percentage of net sales
|
|
10.9
%
|
|
8.8
%
|
|
13.2
%
|
|
12.1
%
|
In line with earlier guidance, the effective tax rate for the
fourth quarter 2012 was 15.6% compared to 30.4% for the fourth
quarter 2011. The decrease was driven primarily by completion of
the tax integration of the EPC acquisition. For fiscal 2012
the effective tax rate was 25.8% compared to 30.2% for fiscal 2011.
The decrease was driven by the completion of the tax integration of
the EPC acquisition and the third quarter qualification in
China for a high technology tax
incentive that resulted in a retroactive benefit of $2.3 million.
Interest expense was up slightly compared to the fourth quarter
2011. Fiscal 2012 interest expense was $13.4 million greater than 2011 as a result of
increased borrowings to finance the EPC acquisition.
For the fourth quarter 2012, cash provided by operating
activities was $75.5 million. For
fiscal 2012, net cash provided by operating activities was
$351.7 million. Fiscal 2012
capital expenditures were $91.0
million including the completion of two factories in
China partially offset by
$8.7 million of government
grants. Cash on hand at December 29, 2012 was
$375.3 million an increase of
$232.7 million from year end 2011
primarily resulting from the proceeds of our December 2012 common stock offering and continued
strong cash flow. For the fourth quarter 2012, free cash flow
represented 174.6% of net income and 137.7% of net income for
fiscal 2012.
"As we start 2013, we are cautiously optimistic about
what we are seeing in a number of key markets. We expect
diluted earnings per share for the first quarter 2013 of
$1.08 to $1.16 per share.
Adding back $0.04 of restructuring
charges and deducting $0.02 of tax
benefits, our adjusted diluted earnings per share are expected to
be $1.10 to $1.18,"
continued Mr. Gliebe.
Regal will hold a conference call at 9:00
AM CST (10:00 AM EST) on
Tuesday, February 5, 2013, 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=91671. 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
May 6, 2013, at 877-344-7529,
conference ID 10023726. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until May 6, 2013,
and can be accessed at
http://www.regalbeloit.com/rbceventspresentations.htm or at
http://www.videonewswire.com/event.asp?id=91671.
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
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Net
Sales
|
|
$715.6
|
|
$727.0
|
|
$3,166.9
|
|
$2,808.3
|
Cost of
Sales
|
|
554.9
|
|
556.1
|
|
2,395.9
|
|
2,142.3
|
Gross
Profit
|
|
160.7
|
|
170.9
|
|
771.0
|
|
666.0
|
Operating
Expenses
|
|
113.6
|
|
112.3
|
|
458.2
|
|
410.3
|
Income
From Operations
|
|
47.1
|
|
58.6
|
|
312.8
|
|
255.7
|
Interest
Expense
|
|
10.9
|
|
10.7
|
|
44.5
|
|
31.1
|
Interest
Income
|
|
0.4
|
|
0.5
|
|
1.6
|
|
1.7
|
Income
Before Taxes
|
|
36.6
|
|
48.4
|
|
269.9
|
|
226.3
|
Provision
For Income Taxes
|
|
5.7
|
|
14.7
|
|
69.6
|
|
68.3
|
Net
Income
|
|
30.9
|
|
33.7
|
|
200.3
|
|
158.0
|
Less: Net
Income Attributable to Noncontrolling
Interests, net of tax
|
|
1.0
|
|
0.2
|
|
4.7
|
|
5.7
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
29.9
|
|
$
33.5
|
|
$
195.6
|
|
$
152.3
|
Earnings
Per Share Attributable to Regal Beloit Corporation:
|
Basic
|
|
$
0.71
|
|
$
0.81
|
|
$
4.68
|
|
$
3.84
|
Assuming
Dilution
|
|
$
0.70
|
|
$
0.80
|
|
$
4.64
|
|
$
3.79
|
Cash
Dividends Declared
|
|
$
0.19
|
|
$
0.18
|
|
$
0.75
|
|
$
0.71
|
Weighted
Average Number of Shares Outstanding (in millions):
|
|
|
|
|
|
|
|
|
Basic
|
|
42.2
|
|
41.5
|
|
41.8
|
|
39.7
|
Assuming
Dilution
|
|
42.5
|
|
41.9
|
|
42.1
|
|
40.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
|
|
|
|
|
|
|
|
|
Electrical Segment
|
|
Mechanical Segment
|
|
|
Three
Months Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Net
Sales
|
|
$
646.9
|
|
$
660.3
|
|
$
68.7
|
|
$
66.7
|
Income
from Operations
|
|
39.6
|
|
52.8
|
|
7.5
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
Electrical Segment
|
|
Mechanical Segment
|
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
Net
Sales
|
|
$2,870.2
|
|
$2,533.3
|
|
$296.7
|
|
$275.0
|
Income
from Operations
|
|
273.7
|
|
222.6
|
|
39.1
|
|
33.1
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
Unaudited
|
|
|
|
|
(Dollars
in Millions)
|
|
|
|
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and
Cash Equivalents
|
|
$
375.3
|
|
$
142.6
|
Trade
Receivables, less Allowances
of $10.2 million in 2012 and $13.6
million in 2011
|
|
446.0
|
|
424.2
|
Inventories
|
|
557.0
|
|
575.8
|
Prepaid
Expenses and Other Current Assets
|
|
112.9
|
|
99.9
|
Deferred
Income Tax Benefits
|
|
48.7
|
|
48.6
|
Total
Current Assets
|
|
1,539.9
|
|
1,291.1
|
|
|
|
|
|
Property,
Plant, Equipment and Noncurrent Assets
|
|
2,029.2
|
|
1,975.4
|
Total
Assets
|
|
$3,569.1
|
|
$3,266.5
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
251.8
|
|
249.4
|
Other
Accrued Expenses
|
|
218.3
|
|
265.1
|
Current
Maturities of Debt
|
|
63.8
|
|
10.0
|
Total
Current Liabilities
|
|
533.9
|
|
524.5
|
|
|
|
|
|
Long-Term
Debt
|
|
754.7
|
|
909.2
|
Other
Noncurrent Liabilities
|
|
284.0
|
|
256.4
|
Equity:
|
|
|
|
|
Total
Regal Beloit Corporation Shareholders' Equity
|
|
1,953.4
|
|
1,535.9
|
Noncontrolling Interests
|
|
43.1
|
|
40.5
|
Total
Equity
|
|
1,996.5
|
|
1,576.4
|
Total
Liabilities and Equity
|
|
$3,569.1
|
|
$3,266.5
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
CASH FLOWS
FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
30.9
|
|
$
33.7
|
|
$200.3
|
|
$158.0
|
Adjustments to reconcile net income and changes in
assets and liabilities (net of acquisitions) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
31.0
|
|
28.5
|
|
126.0
|
|
98.2
|
Excess tax
benefits from share-based compensation
|
|
(0.5)
|
|
(0.4)
|
|
(2.2)
|
|
(1.4)
|
(Gain)
loss on disposition of property, net
|
|
(0.7)
|
|
(0.3)
|
|
(2.4)
|
|
(5.9)
|
Share-based compensation expense
|
|
2.3
|
|
4.2
|
|
9.0
|
|
14.3
|
Change in
assets and liabilities
|
|
12.5
|
|
23.3
|
|
21.0
|
|
2.0
|
Net cash
provided by operating activities
|
|
75.5
|
|
89.0
|
|
351.7
|
|
265.2
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions
to property, plant, and equipment
|
|
(24.9)
|
|
(13.3)
|
|
(91.0)
|
|
(57.6)
|
Purchase
of investment securities
|
|
(8.3)
|
|
—
|
|
(13.0)
|
|
—
|
Sales of
investment securities
|
|
3.2
|
|
—
|
|
4.7
|
|
56.0
|
Business
acquisitions, net of cash acquired
|
|
(7.4)
|
|
(1.1)
|
|
(110.4)
|
|
(765.9)
|
Grants
received for capital expenditures
|
|
1.6
|
|
—
|
|
8.7
|
|
—
|
Proceeds
from sale of assets
|
|
0.7
|
|
0.4
|
|
3.4
|
|
15.4
|
Net cash
used in investing activities
|
|
(35.1)
|
|
(14.0)
|
|
(197.6)
|
|
(752.1)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
proceeds from sale of Common Stock
|
|
202.9
|
|
—
|
|
202.9
|
|
—
|
Borrowings
under revolving credit facility
|
|
11.5
|
|
54.0
|
|
292.5
|
|
254.0
|
Repayments
under revolving credit facility
|
|
(38.5)
|
|
(73.0)
|
|
(301.5)
|
|
(245.0)
|
Proceeds
from short-term borrowings
|
|
4.8
|
|
2.6
|
|
41.2
|
|
24.1
|
Repayments
of short-term borrowings
|
|
(8.0)
|
|
(4.8)
|
|
(40.9)
|
|
(22.1)
|
Proceeds
from long-term borrowings
|
|
—
|
|
—
|
|
—
|
|
500.0
|
Payments
of long-term debt
|
|
(15.1)
|
|
(28.0)
|
|
(90.3)
|
|
(28.1)
|
Dividends
paid to shareholders
|
|
(7.9)
|
|
(7.5)
|
|
(30.8)
|
|
(27.6)
|
Proceeds
from the exercise of stock options
|
|
0.7
|
|
—
|
|
4.2
|
|
1.9
|
Excess tax
benefits from share-based compensation
|
|
0.5
|
|
0.4
|
|
2.2
|
|
1.4
|
Financing
fee paid
|
|
—
|
|
—
|
|
—
|
|
(2.8)
|
Distribution to non-controlling interest
|
|
(2.4)
|
|
—
|
|
(2.4)
|
|
—
|
Net cash
provided by (used in) financing activities
|
|
148.5
|
|
(56.3)
|
|
77.1
|
|
455.8
|
|
|
|
|
|
|
|
|
|
EFFECT OF
EXCHANGE RATES ON CASH
|
|
0.6
|
|
(0.5)
|
|
1.5
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
189.5
|
|
18.2
|
|
232.7
|
|
(31.9)
|
Cash and
cash equivalents at beginning of period
|
|
185.8
|
|
124.4
|
|
142.6
|
|
174.5
|
Cash and
cash equivalents at end of period
|
|
$375.3
|
|
$142.6
|
|
$375.3
|
|
$142.6
|
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
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
GAAP Gross
Profit
|
|
$160.7
|
|
$170.9
|
|
$771.0
|
|
$666.0
|
Purchase
Accounting Costs
|
|
—
|
|
15.5
|
|
0.7
|
|
25.8
|
Restructuring Costs
|
|
3.6
|
|
—
|
|
6.9
|
|
—
|
Warranty
Expense Item
|
|
—
|
|
(15.4)
|
|
—
|
|
12.6
|
Adjusted
Gross Profit
|
|
$164.3
|
|
$171.0
|
|
$778.6
|
|
$704.4
|
|
|
|
|
|
|
|
|
|
Adjusted
Gross Profit as a Percentage of Net Sales
|
|
23.0
%
|
|
23.5
%
|
|
24.6
%
|
|
25.1
%
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
GAAP
Income from Operations
|
|
$
47.1
|
|
$
58.6
|
|
$312.8
|
|
$255.7
|
Acquisition Costs and Purchase Accounting
Costs
|
|
—
|
|
15.5
|
|
0.7
|
|
25.8
|
2Q 2011
Warranty Expense Item
|
|
—
|
|
(15.4)
|
|
—
|
|
12.6
|
Restructuring Costs
|
|
3.9
|
|
5.8
|
|
9.6
|
|
5.8
|
Gain on
Disposal of Real Estate
|
|
—
|
|
—
|
|
(1.3)
|
|
—
|
Gain on
Divestiture
|
|
—
|
|
—
|
|
—
|
|
(6.5)
|
Adjusted
Income from Operations
|
|
$
51.0
|
|
$
64.5
|
|
$321.8
|
|
$293.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
|
Dec
29,
2012
|
|
Dec
31,
2011
|
GAAP Net
Cash Provided by Operating Activities
|
|
$
75.5
|
|
$
89.0
|
|
$351.7
|
|
$265.2
|
Additions
to Property Plant and Equipment
|
|
(24.9)
|
|
(13.3)
|
|
(91.0)
|
|
(57.6)
|
Grants
Received for Capital Expenditures
|
|
1.6
|
|
—
|
|
8.7
|
|
—
|
Free Cash
Flow
|
|
$
52.2
|
|
$
75.7
|
|
$269.4
|
|
$207.6
|
Free Cash
Flow as a Percentage of Net Income Attributable to Regal
Beloit
|
|
174.6
%
|
|
226.0
%
|
|
137.7
%
|
|
136.3
%
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
2012 GAAP
Diluted Earnings Per Share
|
|
$
1.16
|
|
$
1.49
|
|
$
1.29
|
|
$
0.70
|
|
$
4.64
|
Purchase
Accounting Costs
|
|
0.01
|
|
—
|
|
—
|
|
—
|
|
0.01
|
Restructuring Costs
|
|
—
|
|
0.01
|
|
0.08
|
|
0.06
|
|
0.15
|
Gain on
Disposal of Real Estate
|
|
(0.02)
|
|
—
|
|
—
|
|
—
|
|
(0.02)
|
Prior Year
Tax Benefit
|
|
—
|
|
—
|
|
(0.05)
|
|
—
|
|
(0.05)
|
2012
Adjusted Diluted Earnings Per Share
|
|
$
1.15
|
|
$
1.50
|
|
$
1.32
|
|
$
0.76
|
|
$
4.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
2011 GAAP
Diluted Earnings Per Share
|
|
$
0.99
|
|
$
0.88
|
|
$
1.13
|
|
$
0.80
|
|
$
3.79
|
Acquisition and Purchase Accounting
Costs
|
|
0.12
|
|
0.06
|
|
0.28
|
|
0.26
|
|
0.73
|
Warranty
Expense Item
|
|
—
|
|
0.44
|
|
—
|
|
(0.23)
|
|
0.19
|
Restructuring Costs
|
|
—
|
|
—
|
|
—
|
|
0.10
|
|
0.10
|
Gain on
Divestiture
|
|
—
|
|
—
|
|
(0.10)
|
|
—
|
|
(0.10)
|
2011
Adjusted Diluted Earnings Per Share
|
|
$
1.11
|
|
$
1.38
|
|
$
1.31
|
|
$
0.93
|
|
$
4.71
|
SOURCE Regal Beloit Corporation