In the news release, Regal Beloit Corporation Announces Second
Quarter 2014 Financial Results, issued 29-Jul-2014 by Regal Beloit Corporation over PR
Newswire, we are advised by the company that the Adjusted Income
from Operations table in the Non-GAAP Measures section has changes
to the Adjusted Income from Operations line items for both the
three and six month periods ended June 28,
2014, as originally issued inadvertently. This correction
ONLY impacted the Adjusted Income from Operations table. All other
amounts in the original earnings release were correct. The
complete, corrected release follows:
Regal Beloit Corporation Announces Second Quarter 2014 Financial
Results - Sales up 3.5% - Earnings Per Share up 9.7%, in Line with
Guidance - Strong Free Cash Flow
BELOIT, Wis., July 29, 2014 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported financial results for the
second quarter 2014. Net sales for the second quarter 2014 were
$850.4 million compared to
$822.0 million for the second quarter
2013. Net income for the second quarter 2014 was $56.2 million compared to $51.1 million for the second quarter 2013.
Diluted earnings per share for the second quarter 2014 were
$1.24 compared to $1.13 for the second quarter 2013. Adjusted
diluted earnings per share were $1.27
for the second quarter 2014 compared to $1.13 for the second quarter 2013.
"Regal had solid results in the second quarter driven by
growth in our residential HVAC, European, global power generation
and mechanical businesses as well as overall operational
improvements in key businesses," said Regal Chairman and CEO
Mark Gliebe. "During the quarter,
we announced further plans to simplify our manufacturing footprint
and we announced the acquisition of Benshaw, a manufacturer of
motor starters and custom drives. Benshaw is a good fit with our
C&I and Unico businesses and represents our continuing efforts
to be a consistent and successful acquirer."
ADJUSTED DILUTED
EARNINGS PER SHARE*
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.24
|
|
|
$
|
1.13
|
|
|
$
|
2.20
|
|
|
$
|
2.22
|
|
Restructuring
Costs
|
|
0.05
|
|
|
0.02
|
|
|
0.11
|
|
|
0.03
|
|
Purchase Accounting
And Transaction Costs
|
|
0.01
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Tax Benefit Recorded
Attributable to Prior Year
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.04)
|
|
Gain on Disposal of
Real Estate
|
|
(0.03)
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.27
|
|
|
$
|
1.13
|
|
|
$
|
2.31
|
|
|
$
|
2.21
|
|
|
*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
|
|
Six Months
Ended
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
% Change
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
% Change
|
Net Sales
|
$
|
850.4
|
|
$
|
822.0
|
|
3.5
|
%
|
|
$
|
1,651.6
|
|
$
|
1,600.2
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
780.9
|
|
753.3
|
|
3.7
|
%
|
|
1,517.7
|
|
1,464.3
|
|
3.6
|
%
|
Mechanical
segment
|
69.5
|
|
68.7
|
|
1.2
|
%
|
|
133.9
|
|
135.9
|
|
(1.5)
|
%
|
Electrical segment net sales in the second quarter 2014 included
$31.8 million from businesses
acquired within the last year. North American residential
HVAC net sales increased 3.3% for the second quarter 2014 compared
to the second quarter 2013. North American commercial and
industrial motor net sales decreased 2.7% for the second quarter
2014 compared to the second quarter 2013. The decrease was
primarily driven by weaker demand from both commercial and
industrial refrigeration as well as irrigation.
Mechanical segment net sales in North
America increased 2.6% for the second quarter 2014 compared
to the second quarter 2013, with growth in a number of businesses
including Milwaukee Gear.
Foreign currency exchange rates negatively impacted total net
sales by 0.4% for the second quarter 2014 compared to the second
quarter 2013, excluding the businesses acquired within the last
year. In the second quarter 2014, sales of high efficiency
products increased 4.4% and represented 20.0% of total net
sales.
Excluding the impact of the businesses acquired in the last
twelve months, net sales to regions outside the United States decreased 0.8% compared to
second quarter 2013, and represented 33.6% of net sales.
Foreign currency exchange rates negatively impacted international
sales by 1.2% for the second quarter 2014 compared to the second
quarter 2013.
GROSS
PROFIT
|
|
(Dollars in
Millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Gross
Profit
|
|
$
|
211.0
|
|
|
$
|
209.2
|
|
|
$
|
405.4
|
|
|
$
|
408.7
|
|
As a percentage of net
sales
|
|
24.8
|
%
|
|
25.5
|
%
|
|
24.5
|
%
|
|
25.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
|
193.3
|
|
|
$
|
191.5
|
|
|
$
|
371.6
|
|
|
$
|
372.8
|
|
As a percentage of net
sales
|
|
24.8
|
%
|
|
25.4
|
%
|
|
24.5
|
%
|
|
25.5
|
%
|
Mechanical
segment
|
|
$
|
17.7
|
|
|
$
|
17.7
|
|
|
$
|
33.8
|
|
|
$
|
35.9
|
|
As a percentage of net
sales
|
|
25.5
|
%
|
|
25.8
|
%
|
|
25.2
|
%
|
|
26.4
|
%
|
Electrical segment gross profit for the second quarter 2014
included $3.3 million of
restructuring expenses and $0.3
million of purchase accounting adjustments from the acquired
businesses. Second quarter 2013 Electrical segment gross
profit included $1.0 million of
restructuring expenses as well as $3.6
million higher inventory costs due to the Venezuelan
currency devaluation, partially offset by a LIFO benefit of
$2.1 million resulting from lower
commodity costs.
OPERATING
EXPENSES
|
|
(Dollars in
Millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Operating
Expenses
|
|
$
|
123.3
|
|
|
$
|
128.1
|
|
|
$
|
248.0
|
|
|
$
|
251.7
|
|
As a percentage of net
sales
|
|
14.5
|
%
|
|
15.6
|
%
|
|
15.0
|
%
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses by
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
|
113.8
|
|
|
$
|
118.8
|
|
|
$
|
229.3
|
|
|
$
|
232.8
|
|
As a percentage of net
sales
|
|
14.6
|
%
|
|
15.8
|
%
|
|
15.1
|
%
|
|
15.9
|
%
|
Mechanical
segment
|
|
$
|
9.5
|
|
|
$
|
9.3
|
|
|
$
|
18.7
|
|
|
$
|
18.9
|
|
As a percentage of net
sales
|
|
13.7
|
%
|
|
13.5
|
%
|
|
14.0
|
%
|
|
13.9
|
%
|
For the second quarter 2014, Electrical segment operating
expenses included (i) an incremental $5.0
million from the businesses acquired within the last year,
(ii) $0.6 million of acquisition
related costs, and (iii) $0.3 million
of restructuring expenses, partially offset by a $2.0 million gain on the disposal of real estate.
Second quarter 2013 included $2.9
million of acquisition related costs, bad debt expense of
$1.4 million and $0.4 million of restructuring expenses, recorded
primarily in the Electrical segment.
INCOME FROM
OPERATIONS
|
|
(Dollars in
Millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Income from
Operations
|
|
$
|
87.7
|
|
|
$
|
81.1
|
|
|
$
|
157.4
|
|
|
$
|
157.0
|
|
As a percentage of net
sales
|
|
10.3
|
%
|
|
9.9
|
%
|
|
9.5
|
%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
|
$
|
79.5
|
|
|
$
|
72.7
|
|
|
$
|
142.3
|
|
|
$
|
140.0
|
|
As a percentage of net
sales
|
|
10.2
|
%
|
|
9.7
|
%
|
|
9.4
|
%
|
|
9.6
|
%
|
Mechanical
segment
|
|
$
|
8.2
|
|
|
$
|
8.4
|
|
|
$
|
15.1
|
|
|
$
|
17.0
|
|
As a percentage of net
sales
|
|
11.8
|
%
|
|
12.2
|
%
|
|
11.3
|
%
|
|
12.5
|
%
|
The effective tax rate for the second quarter 2014 was 26.5%
compared to 25.0% for the second quarter 2013. The change from the
prior year was primarily driven by an increase in the Mexican
statutory tax rate in 2014 and a 2013 retroactive benefit of
$0.9 million from the qualification
for a China high technology
incentive.
For the second quarter 2014, net cash provided by operating
activities was $99.5 million. For the
second quarter 2014, free cash flow* represented 140.4% of net
income attributable to Regal Beloit.
Gliebe continued, "In the third quarter, we expect modest
growth in our HVAC businesses, strength in our mechanical business
and relatively flat performance in our commercial and industrial
businesses. Overall, we anticipate modest organic revenue
growth in the third quarter but we expect operating margin
headwinds from lower sales and profits in our Venezuelan operations
and a delay in the benefits from one of our manufacturing plant
transitions. In the third quarter, we expect diluted earnings per
share to be $1.05 to $1.13.
Adding back $0.05 of estimated
restructuring expenses and $0.02 of
purchase accounting adjustments, adjusted diluted earnings per
share is expected to be $1.12 to
$1.20."
Regal management will hold a conference call to discuss the
earnings release at 9:00 AM CDT
(10:00 AM EDT) on Wednesday, July 30, 2014. Individuals who
would like to participate by phone should dial 888-317-6003 and
enter 4076347 when prompted. International callers should
dial 412-317-6061 and enter 4076347 when prompted. To view
the presentation during the call, please follow this link to
Regal's Investors page:
http://investors.regalbeloit.com/phoenix.zhtml?c=116222&p=irol-presentations.
To listen to the live audio and view the presentation via the
internet, please go to:
http://www.videonewswire.com/event.asp?id=99878.
A telephone replay of the call will be available through
October 30, 2014, at 877-344-7529,
conference ID 10048736. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until October 30,
2014, and can be accessed at
http://investors.regalbeloit.com/phoenix.zhtml?c=116222&p=irol-calendarPast or
at http://www.videonewswire.com/event.asp?id=99878.
A telephone replay of the call will be available through
August 5, 2014, at 877-344-7529,
conference ID 10044397. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until August 5,
2014, and can be accessed at
http://investors.regalbeloit.com/phoenix.zhtml?c=116222&p=irol-calendarPast
or at http://www.videonewswire.com/event.asp?id=98896.
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: uncertainties regarding our ability to execute our
restructuring plans within expected costs and timing; 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 26,
2014 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 per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Net Sales
|
$
|
850.4
|
|
|
$
|
822.0
|
|
|
$
|
1,651.6
|
|
|
$
|
1,600.2
|
|
Cost of
Sales
|
639.4
|
|
|
612.8
|
|
|
1,246.2
|
|
|
1,191.5
|
|
Gross
Profit
|
211.0
|
|
|
209.2
|
|
|
405.4
|
|
|
408.7
|
|
Operating
Expenses
|
122.3
|
|
|
128.1
|
|
|
247.0
|
|
|
251.7
|
|
Goodwill
Impairment
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Total
Operating Expenses
|
123.3
|
|
|
128.1
|
|
|
248.0
|
|
|
251.7
|
|
Income From
Operations
|
87.7
|
|
|
81.1
|
|
|
157.4
|
|
|
157.0
|
|
Interest
Expense
|
10.3
|
|
|
10.7
|
|
|
20.7
|
|
|
21.3
|
|
Interest
Income
|
1.7
|
|
|
1.1
|
|
|
3.4
|
|
|
1.8
|
|
Income Before
Taxes
|
79.1
|
|
|
71.5
|
|
|
140.1
|
|
|
137.5
|
|
Provision For Income
Taxes
|
21.0
|
|
|
17.9
|
|
|
37.0
|
|
|
33.2
|
|
Net Income
|
58.1
|
|
|
53.6
|
|
|
103.1
|
|
|
104.3
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
1.9
|
|
|
2.5
|
|
|
3.1
|
|
|
3.7
|
|
Net Income
Attributable to Regal Beloit Corporation
|
$
|
56.2
|
|
|
$
|
51.1
|
|
|
$
|
100.0
|
|
|
$
|
100.6
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.24
|
|
|
$
|
1.14
|
|
|
$
|
2.22
|
|
|
$
|
2.24
|
|
Assuming
Dilution
|
$
|
1.24
|
|
|
$
|
1.13
|
|
|
$
|
2.20
|
|
|
$
|
2.22
|
|
Cash Dividends
Declared
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
45.2
|
|
|
45.0
|
|
|
45.1
|
|
|
45.0
|
|
Assuming
Dilution
|
45.5
|
|
|
45.3
|
|
|
45.5
|
|
|
45.3
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Electrical
Segment
|
|
Mechanical
Segment
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Net Sales
|
$
|
780.9
|
|
|
$
|
753.3
|
|
|
$
|
69.5
|
|
|
$
|
68.7
|
|
Income from
Operations
|
79.5
|
|
|
72.7
|
|
|
8.2
|
|
|
8.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Electrical
Segment
|
|
Mechanical
Segment
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
Net Sales
|
$
|
1,517.7
|
|
|
$
|
1,464.3
|
|
|
$
|
133.9
|
|
|
$
|
135.9
|
|
Income from
Operations
|
142.3
|
|
|
140.0
|
|
|
15.1
|
|
|
17.0
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
Jun 28,
2014
|
|
Dec 28,
2013
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
445.3
|
|
|
$
|
466.0
|
|
Trade Receivables,
less Allowances of $13.9 million in 2014 and $11.5 million in
2013
|
|
565.2
|
|
|
463.8
|
|
Inventories
|
|
659.4
|
|
|
618.7
|
|
Prepaid Expenses and
Other Current Assets
|
|
126.7
|
|
|
130.6
|
|
Deferred Income Tax
Benefits
|
|
45.0
|
|
|
46.8
|
|
Total Current
Assets
|
|
1,841.6
|
|
|
1,725.9
|
|
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
1,957.8
|
|
|
1,917.6
|
|
Total
Assets
|
|
$
|
3,799.4
|
|
|
$
|
3,643.5
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
Payable
|
|
$
|
364.5
|
|
|
$
|
304.6
|
|
Other Accrued
Expenses
|
|
239.2
|
|
|
237.9
|
|
Current Maturities of
Debt
|
|
158.2
|
|
|
158.4
|
|
Total Current
Liabilities
|
|
761.9
|
|
|
700.9
|
|
|
|
|
|
|
|
|
Long-Term
Debt
|
|
608.8
|
|
|
609.0
|
|
Other Noncurrent
Liabilities
|
|
234.3
|
|
|
231.2
|
|
Equity:
|
|
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,146.0
|
|
|
2,056.2
|
|
Noncontrolling
Interests
|
|
48.4
|
|
|
46.2
|
|
Total
Equity
|
|
2,194.4
|
|
|
2,102.4
|
|
Total Liabilities and
Equity
|
|
$
|
3,799.4
|
|
|
$
|
3,643.5
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
58.1
|
|
|
$
|
53.6
|
|
|
$
|
103.1
|
|
|
$
|
104.3
|
|
Adjustments to
reconcile net income and changes in assets and liabilities (net of
acquisitions) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
35.2
|
|
|
31.8
|
|
|
68.0
|
|
|
63.4
|
|
Excess tax benefits
from share-based compensation
|
|
(0.2)
|
|
|
(0.1)
|
|
|
(1.2)
|
|
|
(0.7)
|
|
Goodwill
Impairment
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Loss on disposition
of property, net
|
|
0.1
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
Share-based
compensation expense
|
|
3.6
|
|
|
3.1
|
|
|
6.3
|
|
|
5.4
|
|
Change in operating
assets and liabilities
|
|
1.7
|
|
|
2.6
|
|
|
(32.1)
|
|
|
(15.4)
|
|
Net cash provided by
operating activities
|
|
99.5
|
|
|
91.3
|
|
|
145.3
|
|
|
157.3
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant, and equipment
|
|
(20.6)
|
|
|
(26.6)
|
|
|
(42.9)
|
|
|
(47.2)
|
|
Purchases of
investment securities
|
|
(21.0)
|
|
|
(8.4)
|
|
|
(22.2)
|
|
|
(16.0)
|
|
Sales of investment
securities
|
|
1.0
|
|
|
8.4
|
|
|
8.7
|
|
|
15.8
|
|
Business
acquisitions, net of cash acquired
|
|
(0.3)
|
|
|
—
|
|
|
(77.6)
|
|
|
(6.0)
|
|
Additions of
equipment on operating leases
|
|
(1.6)
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
Proceeds from sale of
assets
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(42.4)
|
|
|
(26.6)
|
|
|
(137.1)
|
|
|
(53.4)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under
revolving credit facility
|
|
—
|
|
|
20.0
|
|
|
—
|
|
|
20.0
|
|
Repayments under
revolving credit facility
|
|
—
|
|
|
(17.0)
|
|
|
—
|
|
|
(17.0)
|
|
Net proceeds of
short-term borrowings
|
|
(0.7)
|
|
|
(1.5)
|
|
|
(0.3)
|
|
|
2.3
|
|
Repayments of
long-term debt
|
|
—
|
|
|
(55.1)
|
|
|
(0.1)
|
|
|
(55.2)
|
|
Dividends paid to
shareholders
|
|
(9.1)
|
|
|
(8.5)
|
|
|
(18.1)
|
|
|
(17.0)
|
|
Payments of
contingent consideration
|
|
(8.6)
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
Proceeds from the
exercise of stock options
|
|
0.2
|
|
|
1.0
|
|
|
0.8
|
|
|
2.2
|
|
Excess tax benefits
from share-based compensation
|
|
0.2
|
|
|
0.1
|
|
|
1.2
|
|
|
0.7
|
|
Net cash used in
financing activities
|
|
(18.0)
|
|
|
(61.0)
|
|
|
(25.1)
|
|
|
(64.0)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
(0.2)
|
|
|
(1.2)
|
|
|
(3.8)
|
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
38.9
|
|
|
2.5
|
|
|
(20.7)
|
|
|
39.1
|
|
Cash and cash
equivalents at beginning of period
|
|
406.4
|
|
|
411.9
|
|
|
466.0
|
|
|
375.3
|
|
Cash and cash
equivalents at end of period
|
|
$
|
445.3
|
|
|
$
|
414.4
|
|
|
$
|
445.3
|
|
|
$
|
414.4
|
|
NON-GAAP
MEASURES
|
|
Unaudited
|
(Dollars in
Millions)
|
|
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 adjusted
for grants received for capital expenditures.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
GAAP Gross
Profit
|
|
$
|
211.0
|
|
|
$
|
209.2
|
|
|
$
|
405.4
|
|
|
$
|
408.7
|
|
Purchase Accounting
Costs
|
|
0.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Restructuring
Costs
|
|
3.3
|
|
|
1.0
|
|
|
7.5
|
|
|
1.5
|
|
Adjusted Gross
Profit
|
|
$
|
214.6
|
|
|
$
|
210.2
|
|
|
$
|
414.2
|
|
|
$
|
410.2
|
|
Adjusted Gross Profit
as a Percentage of Net Sales
|
|
25.2
|
%
|
|
25.6
|
%
|
|
25.1
|
%
|
|
25.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
GAAP Income from
Operations
|
|
$
|
87.7
|
|
|
$
|
81.1
|
|
|
$
|
157.4
|
|
|
$
|
157.0
|
|
Purchase Accounting
and Transaction Costs
|
|
0.8
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Restructuring
Costs
|
|
3.6
|
|
|
1.4
|
|
|
7.8
|
|
|
2.3
|
|
Gain of Disposal of
Real Estate
|
|
(2.0)
|
|
|
—
|
|
|
(2.0)
|
|
|
—
|
|
Adjusted Income from
Operations
|
|
$
|
90.1
|
|
|
$
|
82.5
|
|
|
$
|
165.3
|
|
|
$
|
159.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
|
Jun 28,
2014
|
|
Jun 29,
2013
|
GAAP Net Cash
Provided by Operating Activities
|
|
$
|
99.5
|
|
|
$
|
91.3
|
|
|
$
|
145.3
|
|
|
$
|
157.3
|
|
Additions to Property
Plant and Equipment
|
|
(20.6)
|
|
|
(26.6)
|
|
|
(42.9)
|
|
|
(47.2)
|
|
Free Cash
Flow
|
|
$
|
78.9
|
|
|
$
|
64.7
|
|
|
$
|
102.4
|
|
|
$
|
110.1
|
|
Free Cash Flow as a
Percentage of Net Income Attributable to Regal Beloit
|
|
140.4
|
%
|
|
126.6
|
%
|
|
102.4
|
%
|
|
109.4
|
%
|
SOURCE Regal Beloit Corporation