BELOIT, Wis., Feb. 4, 2019 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported fourth quarter 2018 diluted
earnings per share of $1.28, up 11%
from the prior year. Fourth quarter 2018 adjusted diluted earnings
per share* were $1.41, up 23% from
the prior year. Full year 2018 diluted earnings per share were
$5.26, up 11% from the prior year.
Full year 2018 adjusted diluted earnings per share were
$6.00, up 23% from the prior
year.
Key financial results for the fourth quarter 2018 included:
- Total net sales of $881.7 million
increased 7.4% from the prior year and included a negative 1.4%
impact from foreign currency, a negative 0.4% impact from the
businesses divested/to be exited, and a positive 3.9% impact from
acquisitions. The result was a positive organic sales growth rate
of 5.2%.
- Income from operations was $89.8
million or 10.2% of net sales, up 60 basis points from prior
year. Adjusted income from operations was $92.9 million or 10.7% of adjusted net sales, up
80 basis points from prior year.
- Net cash provided by operating activities was $112.4 million and capital expenditures totaled
$18.4 million, resulting in free cash
flow of $94.0 million or 169.1% of
net income.
- Repurchased 645,349 shares for a total of $49.5 million.
Fourth quarter 2018 segment results versus the prior year fourth
quarter included:
- Commercial and Industrial Systems Segment net sales were
$436.7 million, an increase of 7.1%.
Acquisitions had a positive impact of 7.7%, and foreign currency
had a negative 1.8% impact. The result was a positive organic sales
growth rate of 1.3% driven by strength in power generation, oil
& gas, and commercial HVAC partially offset by weakness in
Asia. Operating margin was 7.4%.
Excluding $1.7 million in
restructuring and related costs and other net adjustments of
$0.3 million, adjusted operating
margin was 7.8%.
- Climate Solutions Segment net sales were $232.2 million, an increase of 7.3%. The business
to be exited had a negative 0.9% impact, and foreign currency had a
negative 1.2% impact. The result was an organic sales growth rate
of 9.4% driven by strength in North American residential HVAC and
commercial refrigeration partially offset by weakness in
international markets. Operating margin was 14.3%. Excluding
restructuring and related costs of $0.4
million and other net adjustments of negative $0.3 million, adjusted operating margin was 15.0%
of adjusted net sales.
- Power Transmission Solutions Segment net sales were
$212.8 million, an increase of 8.2%.
Foreign currency had a negative 0.7% impact. The result was a
positive organic sales growth rate of 9.0% driven by increased
demand in distribution and oil & gas. Operating margin was
11.5%. Excluding restructuring and related costs of $0.1 million and other net adjustments of
$0.9 million, adjusted operating
margin was 11.9%.
*This earnings release includes non-GAAP financial
measures. Descriptions of why we believe these non-GAAP
measures are useful and reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP measures are included
with this earnings release.
"The fourth quarter was a strong close to a record year.
Organic sales were up 5.2% and adjusted EPS were up 23%," said
Regal Chairman and CEO Mark Gliebe.
"We ended the year with organic sales up 5.7% and adjusted EPS of
$6.00, up 23%. Further we had the
second consecutive year of improving adjusted operating margin and
the eighth consecutive year of free cash flow exceeding adjusted
net income."
2019 Outlook
"Looking forward, we are entering the new year with momentum.
Overall, we expect continued growth in 2019 despite tougher
year-over-year comparisons. We expect a carryover price benefit
from 2018, and we expect to see a positive impact from our new
products targeted for the upcoming energy efficiency regulations.
For 2019, our guidance assumes total year organic growth to be up
low to mid-single digits, and we are expecting a third consecutive
year of improvement in our adjusted operating margin."
We are expecting adjusted diluted earnings per share of
$6.15 to $6.55, which would make 2019 another record year
for earnings," continued Mr. Gliebe.
The Company forecasts 2019 GAAP diluted earnings per share of
$6.59 to $6.99. The difference between the GAAP diluted
earnings per share guidance and the adjusted diluted per share
guidance relates to expected restructuring and related costs of
$0.18 per share, gain on the sale of
assets related to the recent divestiture of the engineered drives
and control systems business of $0.70
per share, and remaining CEO transition costs of $0.08 per share.
The Company's 2019 guidance excludes the sales and earnings from
a number of businesses that have been or are expected to be
divested or exited. The divestiture or exit of some of these
businesses has not been previously disclosed. Please see the table
in the appendix for details.
Conference Call
Regal will hold a conference call to discuss the earnings
release at 9:00 am CST (10:00 am EST) on Tuesday,
February 5, 2019. To listen to the live audio and view the
presentation during the call, please visit Regal's Investors
website: http://investors.regalbeloit.com. To listen by phone or to
ask the presenters a question, dial 1.888.317.6003 (U.S. callers)
or 1.412.317.6061 (international callers) and enter 8263623# when
prompted.
A webcast replay will be available at the link above, and a
telephone replay will be available at 1.877.344.7529 (U.S. callers)
or 1.412.317.0088 (international callers), replay access code
10127498#. Both will be accessible until May
7, 2019.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer
of electric motors and controls, power generation products and
power transmission products serving customers throughout the world.
We create a better tomorrow by developing and responsibly producing
energy-efficient products and systems.
Our company is comprised of three operating segments: Commercial
and Industrial Systems, Climate Solutions and Power Transmission
Solutions. Regal is headquartered in Beloit, Wisconsin and has manufacturing, sales
and service facilities worldwide. For more information, visit
RegalBeloit.com.
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 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," "expect," "intend," "estimate,"
"forecast," "anticipate," "believe," "should," "project" or "plan"
or the negative of these terms or other similar words. These
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties, assumptions and other
factors, some of which are beyond our control, which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements, including but not limited to:
uncertainties regarding our ability to execute our restructuring
plans within expected costs and timing; our overall debt levels and
our ability to repay principal and interest on our outstanding
debt; actions taken by our competitors and our ability to
effectively compete in the increasingly competitive global electric
motor, drives and controls, power generation and power transmission
industries; our ability to develop new products based on
technological innovation and marketplace acceptance of new and
existing products; fluctuations in commodity prices and raw
material costs; our dependence on significant customers; risks
associated with global manufacturing; issues and costs arising from
the integration of acquired companies and businesses and the timing
and impact of purchase accounting adjustments; prolonged declines
in one or more markets we serve; 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, government policies, including policy changes affecting
taxation, trade, tariffs, immigration, customs, border actions and
the like, and other external factors that we cannot control;
product liability and other litigation, or claims by end users,
government agencies or others that our products or our customers'
applications failed to perform as anticipated, particularly in high
volume applications or where such failures are alleged to be the
cause of property or casualty claims; unanticipated liabilities of
acquired businesses; unanticipated adverse effects or liabilities
from business exits or divestitures; 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; effects on earnings
of any significant impairment of goodwill or intangible assets;
losses from failures, breaches, attacks or disclosures involving
our information technology infrastructure and data; cyclical
downturns affecting the global market for capital goods; 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 27,
2018 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 release 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 INCOME
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Amounts in Millions,
Except per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
Net Sales
|
|
$
|
881.7
|
|
|
$
|
820.7
|
|
|
$
|
3,645.6
|
|
|
$
|
3,360.3
|
|
Cost of
Sales
|
|
642.0
|
|
|
602.3
|
|
|
2,681.0
|
|
|
2,476.7
|
|
Gross
Profit
|
|
239.7
|
|
|
218.4
|
|
|
964.6
|
|
|
883.6
|
|
Operating
Expenses
|
|
149.9
|
|
|
139.8
|
|
|
599.4
|
|
|
552.5
|
|
Goodwill
Impairment
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|
—
|
|
Asset
Impairments
|
|
—
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
Total Operating
Expenses
|
|
149.9
|
|
|
139.8
|
|
|
617.6
|
|
|
552.5
|
|
Income from
Operations
|
|
89.8
|
|
|
78.6
|
|
|
347.0
|
|
|
331.1
|
|
Other Expenses,
net
|
|
0.3
|
|
|
0.3
|
|
|
1.5
|
|
|
1.0
|
|
Interest
Expense
|
|
14.3
|
|
|
13.5
|
|
|
55.2
|
|
|
56.1
|
|
Interest
Income
|
|
0.1
|
|
|
0.5
|
|
|
1.9
|
|
|
3.2
|
|
Income before
Taxes
|
|
75.3
|
|
|
65.3
|
|
|
292.2
|
|
|
277.2
|
|
Provision for Income
Taxes
|
|
18.8
|
|
|
12.7
|
|
|
56.4
|
|
|
59.1
|
|
Net Income
|
|
56.5
|
|
|
52.6
|
|
|
235.8
|
|
|
218.1
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
0.9
|
|
|
1.1
|
|
|
4.6
|
|
|
5.1
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
55.6
|
|
|
$
|
51.5
|
|
|
$
|
231.2
|
|
|
$
|
213.0
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.29
|
|
|
$
|
1.16
|
|
|
$
|
5.30
|
|
|
$
|
4.78
|
|
Assuming
Dilution
|
|
$
|
1.28
|
|
|
$
|
1.15
|
|
|
$
|
5.26
|
|
|
$
|
4.74
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.28
|
|
|
$
|
0.26
|
|
|
$
|
1.10
|
|
|
$
|
1.02
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
43.1
|
|
|
44.3
|
|
|
43.6
|
|
|
44.6
|
|
Assuming
Dilution
|
|
43.4
|
|
|
44.7
|
|
|
43.9
|
|
|
44.9
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
248.6
|
|
|
$
|
139.6
|
|
Trade Receivables,
less Allowances
of $13.3 Million in 2018 and $11.3 Million in
2017
|
|
551.9
|
|
|
506.3
|
|
Inventories
|
|
767.2
|
|
|
757.1
|
|
Prepaid Expenses and
Other Current Assets
|
|
233.0
|
|
|
171.4
|
|
Total Current
Assets
|
|
1,800.7
|
|
|
1,574.4
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,806.1
|
|
|
2,813.8
|
|
Total
Assets
|
|
$
|
4,606.8
|
|
|
$
|
4,388.2
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
424.8
|
|
|
$
|
384.3
|
|
Other Accrued
Expenses
|
|
241.2
|
|
|
226.5
|
|
Current Maturities of
Debt
|
|
0.5
|
|
|
101.2
|
|
Total Current
Liabilities
|
|
666.5
|
|
|
712.0
|
|
|
|
|
|
|
Long-Term
Debt
|
|
1,306.6
|
|
|
1,039.9
|
|
Other Noncurrent
Liabilities
|
|
295.2
|
|
|
281.6
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,310.5
|
|
|
2,325.5
|
|
Noncontrolling
Interests
|
|
28.0
|
|
|
29.2
|
|
Total
Equity
|
|
2,338.5
|
|
|
2,354.7
|
|
Total Liabilities and
Equity
|
|
$
|
4,606.8
|
|
|
$
|
4,388.2
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
56.5
|
|
|
$
|
52.6
|
|
|
$
|
235.8
|
|
|
$
|
218.1
|
|
Adjustments to
Reconcile Net Income and Changes in Assets and Liabilities (Net of
Acquisitions and Divestitures) to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
36.1
|
|
|
34.1
|
|
|
142.4
|
|
|
137.2
|
|
(Gain) Loss on
Disposal of Assets, Net
|
|
(2.4)
|
|
|
(0.5)
|
|
|
1.1
|
|
|
(2.5)
|
|
Gain on Disposal of
Businesses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
—
|
|
|
34.9
|
|
|
—
|
|
Share-Based
Compensation Expense
|
|
6.4
|
|
|
3.3
|
|
|
16.9
|
|
|
13.6
|
|
Exit of
Business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
Change in Operating
Assets and Liabilities
|
|
15.8
|
|
|
(32.6)
|
|
|
(68.4)
|
|
|
(78.3)
|
|
Net Cash Provided by
Operating Activities
|
|
112.4
|
|
|
56.9
|
|
|
362.7
|
|
|
291.9
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(18.4)
|
|
|
(16.2)
|
|
|
(77.6)
|
|
|
(65.2)
|
|
Net Sales of
Investment Securities
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
Business
Acquisitions, Net of Cash Acquired
|
|
—
|
|
|
—
|
|
|
(161.5)
|
|
|
—
|
|
Proceeds from Sale of
Assets
|
|
5.6
|
|
|
0.4
|
|
|
10.0
|
|
|
6.3
|
|
Proceeds Received
from Disposal of Businesses
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
1.1
|
|
Net Cash Used in
Investing Activities
|
|
(12.1)
|
|
|
(15.8)
|
|
|
(227.9)
|
|
|
(57.8)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Borrowings
(Repayments) Under Revolving Credit Facility
|
|
53.0
|
|
|
(9.7)
|
|
|
78.6
|
|
|
1.8
|
|
Net (Repayments)
Borrowings from Short-Term Borrowings
|
|
(0.1)
|
|
|
0.5
|
|
|
(0.7)
|
|
|
0.5
|
|
Proceeds
from Long-Term Debt
|
|
—
|
|
|
—
|
|
|
900.2
|
|
|
0.3
|
|
Repayments of
Long-Term Debt
|
|
(25.1)
|
|
|
(65.1)
|
|
|
(811.4)
|
|
|
(277.3)
|
|
Dividends Paid to
Shareholders
|
|
(12.1)
|
|
|
(11.4)
|
|
|
(47.2)
|
|
|
(44.5)
|
|
Payments of
Contingent Consideration
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.3)
|
|
Proceeds from the
Exercise of Stock Options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Repurchase of Common
Stock
|
|
(49.5)
|
|
|
—
|
|
|
(127.8)
|
|
|
(45.1)
|
|
Distributions to
Noncontrolling Interest
|
|
—
|
|
|
(5.7)
|
|
|
(1.6)
|
|
|
(17.4)
|
|
Shares Surrendered
for Taxes
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(3.5)
|
|
|
(4.0)
|
|
Purchase of
Subsidiary Shares from Noncontrolling Interest
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
Financing fees paid
|
|
—
|
|
|
—
|
|
|
(3.5)
|
|
|
—
|
|
Net Cash Used in
Financing Activities
|
|
(33.9)
|
|
|
(91.7)
|
|
|
(17.7)
|
|
|
(390.6)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
(2.2)
|
|
|
3.6
|
|
|
(8.1)
|
|
|
11.6
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
64.2
|
|
|
(47.0)
|
|
|
109.0
|
|
|
(144.9)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
184.4
|
|
|
186.6
|
|
|
139.6
|
|
|
284.5
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
248.6
|
|
|
$
|
139.6
|
|
|
$
|
248.6
|
|
|
$
|
139.6
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
Net Sales
|
|
$
|
436.7
|
|
|
$
|
407.7
|
|
|
$
|
232.2
|
|
|
$
|
216.4
|
|
|
$
|
212.8
|
|
|
$
|
196.6
|
|
|
$
|
881.7
|
|
|
$
|
820.7
|
|
Net Sales for
Businesses Divested/to be Exited
|
|
(0.1)
|
|
|
(0.4)
|
|
|
(9.7)
|
|
|
(10.7)
|
|
|
—
|
|
|
—
|
|
|
(9.8)
|
|
|
(11.1)
|
|
Adjusted Net
Sales*
|
|
$
|
436.6
|
|
|
$
|
407.3
|
|
|
$
|
222.5
|
|
|
$
|
205.7
|
|
|
$
|
212.8
|
|
|
$
|
196.6
|
|
|
$
|
871.9
|
|
|
$
|
809.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
7.4
|
%
|
|
5.9
|
%
|
|
14.3
|
%
|
|
14.1
|
%
|
|
11.5
|
%
|
|
12.2
|
%
|
|
10.2
|
%
|
|
9.6
|
%
|
Adjusted Operating
Margin*
|
|
7.8
|
%
|
|
6.1
|
%
|
|
15.0
|
%
|
|
15.3
|
%
|
|
11.9
|
%
|
|
12.2
|
%
|
|
10.7
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
1.3
|
%
|
|
8.8
|
%
|
|
9.4
|
%
|
|
2.7
|
%
|
|
9.0
|
%
|
|
11.9
|
%
|
|
5.2
|
%
|
|
7.9
|
%
|
Acquisitions
|
|
7.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.9
|
%
|
|
—
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(0.1)
|
%
|
|
(0.9)
|
%
|
|
(2.7)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.4)
|
%
|
|
(0.9)
|
%
|
Foreign Currency
Impact
|
|
(1.8)
|
%
|
|
1.7
|
%
|
|
(1.2)
|
%
|
|
0.6
|
%
|
|
(0.7)
|
%
|
|
1.3
|
%
|
|
(1.4)
|
%
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
Net Sales
|
|
$
|
1,782.0
|
|
|
$
|
1,604.3
|
|
|
$
|
1,024.8
|
|
|
$
|
990.6
|
|
|
$
|
838.8
|
|
|
$
|
765.4
|
|
|
$
|
3,645.6
|
|
|
$
|
3,360.3
|
|
Net Sales for
Businesses Divested/to be Exited
|
|
(1.4)
|
|
|
(1.9)
|
|
|
(52.6)
|
|
|
(60.4)
|
|
|
—
|
|
|
—
|
|
|
(54.0)
|
|
|
(62.3)
|
|
Adjusted Net
Sales*
|
|
$
|
1,780.6
|
|
|
$
|
1,602.4
|
|
|
$
|
972.2
|
|
|
$
|
930.2
|
|
|
$
|
838.8
|
|
|
$
|
765.4
|
|
|
$
|
3,591.6
|
|
|
$
|
3,298.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
7.1
|
%
|
|
6.2
|
%
|
|
11.3
|
%
|
|
14.3
|
%
|
|
12.4
|
%
|
|
11.7
|
%
|
|
9.5
|
%
|
|
9.9
|
%
|
Adjusted Operating
Margin*
|
|
7.7
|
%
|
|
6.9
|
%
|
|
15.5
|
%
|
|
15.5
|
%
|
|
12.6
|
%
|
|
11.4
|
%
|
|
11.0
|
%
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth
|
|
4.7
|
%
|
|
4.7
|
%
|
|
4.6
|
%
|
|
4.6
|
%
|
|
9.1
|
%
|
|
5.3
|
%
|
|
5.7
|
%
|
|
4.8
|
%
|
Acquisitions
|
|
6.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(1.2)
|
%
|
|
2.9
|
%
|
|
(0.3)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(0.1)
|
%
|
|
(1.1)
|
%
|
|
(1.5)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.5)
|
%
|
|
(0.5)
|
%
|
Foreign Currency
Impact
|
|
0.5
|
%
|
|
0.2
|
%
|
|
(0.1)
|
%
|
|
0.1
|
%
|
|
0.5
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
NON-GAAP MEASURES AND OTHER DEFINITIONS
Unaudited
(Dollars in Millions, Except per Share Data)
We prepare financial statements in accordance with accounting
principles generally accepted in the
United States of America ("GAAP"). We also periodically
disclose certain financial measures in our quarterly earnings
releases, on investor conference calls, and in investor
presentations and similar events that may be considered "non-GAAP"
financial measures. 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.
In this earnings release, we disclose the following non-GAAP
financial measures, and we reconcile these measures in the tables
below to the most directly comparable GAAP financial measures:
adjusted diluted earnings per share (both historical and
projected), adjusted income from operations, adjusted operating
margin, adjusted net sales, adjusted net income attributable to
Regal Beloit Corporation, free cash flow, free cash flow as a
percentage of adjusted net income attributable to Regal Beloit
Corporation, adjusted income before taxes, adjusted provision for
income taxes, adjusted effective tax rate, net sales from ongoing
business, adjusted income from operations of ongoing business,
ongoing business adjusted operating margin and adjusted diluted
earnings per share for ongoing business. We believe that these
non-GAAP financial measures are useful measures for providing
investors with additional information regarding our results of
operations and for helping investors understand and compare our
operating results across accounting periods and compared to our
peers. Our management primarily uses adjusted income from
operations and adjusted operating margin to help us manage and
evaluate our business and make operating decisions, while adjusted
diluted earnings per share, adjusted net sales, adjusted net income
attributable to Regal Beloit Corporation, free cash flow, free cash
flow as a percentage of adjusted net income attributable to Regal
Beloit Corporation, adjusted income before taxes, adjusted
provision for income taxes, adjusted effective tax rate, net sales
from ongoing business, adjusted income from operations of ongoing
business, ongoing business adjusted operating margin and adjusted
diluted earnings per share for ongoing business are primarily used
to help us evaluate our business and forecast our future results.
Accordingly, we believe disclosing and reconciling each of these
measures helps investors evaluate our business in the same manner
as management.
In addition to these non-GAAP measures, we also use the term
"organic sales" to refer to GAAP sales from existing operations
excluding sales from acquired businesses recorded prior to the
first anniversary of the acquisition ("net sales from business
acquired") and excluding sales from business divested/to be exited
("net sales from business divested/to be exited") recorded prior to
the first anniversary of the exit and excluding the impact of
foreign currency translation. The impact of foreign currency
translation is determined by translating the respective period's
organic sales using the currency exchange rates that were in effect
during the prior year periods. We use the term "organic sales
growth" to refer to the increase in our sales between periods that
is attributable to organic sales. For further clarification, we may
use the term "acquisition growth" to refer to the increase in our
sales between periods that is attributable to acquisition
sales.
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.28
|
|
|
$
|
1.15
|
|
|
$
|
5.26
|
|
|
$
|
4.74
|
|
Restructuring and
Related Costs
|
|
0.04
|
|
|
0.02
|
|
|
0.13
|
|
|
0.22
|
|
Purchase Accounting
and Transaction Costs
|
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Gain on Sale of
Assets
|
|
(0.04)
|
|
|
(0.01)
|
|
|
(0.05)
|
|
|
(0.07)
|
|
Net (Income) Loss
from Businesses Divested/to be Exited
|
|
(0.01)
|
|
|
0.01
|
|
|
(0.03)
|
|
|
0.01
|
|
CEO Transition
Costs
|
|
0.07
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
—
|
|
|
0.61
|
|
|
—
|
|
Impact of the New US
Tax Legislation
|
|
0.07
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
(0.02)
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.41
|
|
|
$
|
1.15
|
|
|
$
|
6.00
|
|
|
$
|
4.88
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
GAAP Income from
Operations
|
|
$
|
32.1
|
|
|
$
|
24.0
|
|
|
$
|
33.3
|
|
|
$
|
30.6
|
|
|
$
|
24.4
|
|
|
$
|
24.0
|
|
|
$
|
89.8
|
|
|
$
|
78.6
|
|
Restructuring and
Related Costs
|
|
1.7
|
|
|
1.1
|
|
|
0.4
|
|
|
0.5
|
|
|
0.1
|
|
|
—
|
|
|
2.2
|
|
|
1.6
|
|
Purchase Accounting
and Transaction Costs
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Gain on Sale of
Assets
|
|
(1.5)
|
|
|
(0.4)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2)
|
|
|
(0.4)
|
|
Operating (Income)
Loss from Businesses Divested/to be Exited
|
|
(0.1)
|
|
|
—
|
|
|
(0.7)
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
|
0.4
|
|
CEO Transition
Costs
|
|
1.8
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
Adjusted Income from
Operations
|
|
$
|
34.1
|
|
|
$
|
24.7
|
|
|
$
|
33.4
|
|
|
$
|
31.5
|
|
|
$
|
25.4
|
|
|
$
|
24.0
|
|
|
$
|
92.9
|
|
|
$
|
80.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
7.4%
|
|
5.9%
|
|
14.3%
|
|
14.1%
|
|
11.5%
|
|
12.2%
|
|
10.2
|
%
|
|
9.6
|
%
|
Adjusted Operating
Margin %
|
|
7.8%
|
|
6.1%
|
|
15.0%
|
|
15.3%
|
|
11.9%
|
|
12.2%
|
|
10.7
|
%
|
|
9.9
|
%
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
GAAP Income from
Operations
|
|
$
|
127.0
|
|
|
$
|
99.8
|
|
|
$
|
115.6
|
|
|
$
|
141.5
|
|
|
$
|
104.4
|
|
|
$
|
89.8
|
|
|
$
|
347.0
|
|
|
$
|
331.1
|
|
Restructuring and
Related Costs
|
|
5.6
|
|
|
10.9
|
|
|
1.8
|
|
|
2.5
|
|
|
0.3
|
|
|
0.7
|
|
|
7.7
|
|
|
14.1
|
|
Purchase Accounting
and Transaction Costs
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Gain on Disposal of
Business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Gain on Sale of
Assets
|
|
(1.9)
|
|
|
(1.1)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
(2.8)
|
|
|
(2.6)
|
|
|
(3.9)
|
|
Operating (Income)
Loss from Businesses Divested/to be Exited
|
|
—
|
|
|
0.2
|
|
|
(1.9)
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(1.9)
|
|
|
0.3
|
|
CEO Transition
Costs
|
|
1.8
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
—
|
|
|
34.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.9
|
|
|
—
|
|
Adjusted Income from
Operations
|
|
$
|
137.9
|
|
|
$
|
109.8
|
|
|
$
|
150.8
|
|
|
$
|
144.1
|
|
|
$
|
105.6
|
|
|
$
|
87.6
|
|
|
$
|
394.3
|
|
|
$
|
341.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
7.1%
|
|
6.2%
|
|
11.3%
|
|
14.3%
|
|
12.4%
|
|
11.7%
|
|
9.5
|
%
|
|
9.9
|
%
|
Adjusted Operating
Margin %
|
|
7.7%
|
|
6.9%
|
|
15.5%
|
|
15.5%
|
|
12.6%
|
|
11.4%
|
|
11.0
|
%
|
|
10.4
|
%
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
Net Cash Provided by
Operating Activities
|
|
$
|
112.4
|
|
|
$
|
56.9
|
|
|
$
|
362.7
|
|
|
$
|
291.9
|
|
Additions to Property
Plant and Equipment
|
|
(18.4)
|
|
|
(16.2)
|
|
|
(77.6)
|
|
|
(65.2)
|
|
Free Cash
Flow
|
|
$
|
94.0
|
|
|
$
|
40.7
|
|
|
$
|
285.1
|
|
|
$
|
226.7
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
55.6
|
|
|
$
|
51.5
|
|
|
$
|
231.2
|
|
|
$
|
213.0
|
|
Goodwill
Impairment
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|
—
|
|
Asset
Impairments
|
|
—
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
Tax Effect from
Impairments
|
|
—
|
|
|
—
|
|
|
(4.0)
|
|
|
—
|
|
Adjusted Net Income
Attributable to Regal Beloit Corporation1
|
|
$
|
55.6
|
|
|
$
|
51.5
|
|
|
$
|
245.4
|
|
|
$
|
213.0
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable to Regal Beloit
Corporation
|
|
169.1
|
%
|
|
79.0
|
%
|
|
116.2
|
%
|
|
106.4
|
%
|
|
|
|
|
|
|
|
|
|
1
The Net Income Attributable to Regal Beloit Corporation is adjusted
for goodwill and asset impairments related to the business to be
exited and used in the Free Cash Flow Calculation.
|
ADJUSTED EFFECTIVE
TAX RATE
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
|
Dec 29,
2018
|
|
Dec 30,
2017
|
Income before
Taxes
|
|
$
|
75.3
|
|
|
$
|
65.3
|
|
|
$
|
292.2
|
|
|
$
|
277.2
|
|
Provision for Income
Taxes
|
|
18.8
|
|
|
12.7
|
|
|
56.4
|
|
|
59.1
|
|
Effective Tax
Rate
|
|
25.0
|
%
|
|
19.4
|
%
|
|
19.3
|
%
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
75.3
|
|
|
$
|
65.3
|
|
|
$
|
292.2
|
|
|
$
|
277.2
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
—
|
|
|
34.9
|
|
|
—
|
|
Adjusted Income
before Taxes
|
|
$
|
75.3
|
|
|
$
|
65.3
|
|
|
$
|
327.1
|
|
|
$
|
277.2
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
18.8
|
|
|
$
|
12.7
|
|
|
$
|
56.4
|
|
|
$
|
59.1
|
|
Tax Effect from
Impairment and Exit Related Costs
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
Impact of the New US
Tax Legislation
|
|
(3.0)
|
|
|
1.0
|
|
|
3.6
|
|
|
1.0
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
15.8
|
|
|
$
|
13.7
|
|
|
$
|
68.2
|
|
|
$
|
60.1
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
21.0
|
%
|
|
21.0
|
%
|
|
20.8
|
%
|
|
21.7
|
%
|
2019 ADJUSTED
ANNUAL GUIDANCE
|
|
Minimum
|
|
Maximum
|
2019 Diluted EPS
Annual Guidance
|
|
$
|
6.59
|
|
|
$
|
6.99
|
|
Restructuring and
Related Costs
|
|
0.18
|
|
|
0.18
|
|
Gain on Sale of
Assets
|
|
(0.70)
|
|
|
(0.70)
|
|
CEO Transition
Costs
|
|
0.08
|
|
|
0.08
|
|
2019 Adjusted Diluted
EPS Annual Guidance
|
|
$
|
6.15
|
|
|
$
|
6.55
|
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Dec 29, 2018
|
|
$
|
436.7
|
|
|
$
|
232.2
|
|
|
$
|
212.8
|
|
|
$
|
881.7
|
|
Net Sales from
Business Acquired
|
|
(31.4)
|
|
|
—
|
|
|
—
|
|
|
(31.4)
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(0.1)
|
|
|
(9.7)
|
|
|
—
|
|
|
(9.8)
|
|
Impact from Foreign
Currency Exchange Rates
|
|
7.2
|
|
|
2.5
|
|
|
1.4
|
|
|
11.1
|
|
Organic Sales Three
Months Ended Dec 29, 2018
|
|
$
|
412.4
|
|
|
$
|
225.0
|
|
|
$
|
214.2
|
|
|
$
|
851.6
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Dec 30, 2017
|
|
$
|
407.7
|
|
|
$
|
216.4
|
|
|
$
|
196.6
|
|
|
$
|
820.7
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(0.4)
|
|
|
(10.7)
|
|
|
—
|
|
|
(11.1)
|
|
Adjusted Net Sales
Three Months Ended Dec 30, 2017
|
|
$
|
407.3
|
|
|
$
|
205.7
|
|
|
$
|
196.6
|
|
|
$
|
809.6
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec 29, 2018 Organic Sales Growth %
|
|
1.3
|
%
|
|
9.4
|
%
|
|
9.0
|
%
|
|
5.2
|
%
|
Three Months Ended
Dec 29, 2018 Net Sales Growth %
|
|
7.1
|
%
|
|
7.3
|
%
|
|
8.2
|
%
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
ORGANIC SALES
GROWTH
|
|
Twelve Months
Ended
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
Net Sales Twelve
Months Ended Dec 29, 2018
|
|
$
|
1,782.0
|
|
|
$
|
1,024.8
|
|
|
$
|
838.8
|
|
|
$
|
3,645.6
|
|
Net Sales from
Business Acquired
|
|
(96.2)
|
|
|
—
|
|
|
—
|
|
|
(96.2)
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(1.4)
|
|
|
(52.6)
|
|
|
—
|
|
|
(54.0)
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(7.4)
|
|
|
1.2
|
|
|
(4.1)
|
|
|
(10.3)
|
|
Organic Sales Twelve
Months Ended Dec 29, 2018
|
|
$
|
1,677.0
|
|
|
$
|
973.4
|
|
|
$
|
834.7
|
|
|
$
|
3,485.1
|
|
|
|
|
|
|
|
|
|
|
Net Sales Twelve
Months Ended Dec 30, 2017
|
|
$
|
1,604.3
|
|
|
$
|
990.6
|
|
|
$
|
765.4
|
|
|
$
|
3,360.3
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(1.9)
|
|
|
(60.4)
|
|
|
—
|
|
|
(62.3)
|
|
Adjusted Net Sales
Twelve Months Ended Dec 30, 2017
|
|
$
|
1,602.4
|
|
|
$
|
930.2
|
|
|
$
|
765.4
|
|
|
$
|
3,298.0
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
Dec 29, 2018 Organic Sales Growth %
|
|
4.7
|
%
|
|
4.6
|
%
|
|
9.1
|
%
|
|
5.7
|
%
|
Twelve Months Ended
Dec 29, 2018 Net Sales Growth %
|
|
11.1
|
%
|
|
3.5
|
%
|
|
9.6
|
%
|
|
8.5
|
%
|
The following tables outline by quarter and full year the 2018
net sales and income from operations, and the full year adjusted
diluted earnings per share, illustrating the impact of businesses
divested and to be exited, which can be used to compare to Regal's
2019 guidance and actual performance.
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 First
Quarter Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended March 31, 2018
|
|
$
|
414.0
|
|
|
$
|
259.9
|
|
|
$
|
204.9
|
|
|
$
|
878.8
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(33.5)
|
|
|
(18.0)
|
|
|
—
|
|
|
(51.5)
|
|
Net Sales from
Ongoing Business
|
|
$
|
380.5
|
|
|
$
|
241.9
|
|
|
$
|
204.9
|
|
|
$
|
827.3
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations Three Months Ended March 31, 2018
|
|
$
|
29.1
|
|
|
$
|
32.3
|
|
|
$
|
26.8
|
|
|
$
|
88.2
|
|
Restructuring and
Related Costs
|
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|
1.7
|
|
Income from
Operations of Businesses Divested/to be Exited
|
|
(3.3)
|
|
|
(1.6)
|
|
|
—
|
|
|
(4.9)
|
|
Adjusted Income from
Operations of Ongoing Business
|
|
$
|
27.1
|
|
|
$
|
31.1
|
|
|
$
|
26.8
|
|
|
$
|
85.0
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted Operating Margin %
|
|
7.1
|
%
|
|
12.9
|
%
|
|
13.1
|
%
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 Second
Quarter Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended June 30, 2018
|
|
$
|
469.0
|
|
|
$
|
277.3
|
|
|
$
|
213.4
|
|
|
$
|
959.7
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(33.6)
|
|
|
(19.2)
|
|
|
—
|
|
|
(52.8)
|
|
Net Sales from
Ongoing Business
|
|
$
|
435.4
|
|
|
$
|
258.1
|
|
|
$
|
213.4
|
|
|
$
|
906.9
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations Three Months Ended June 30, 2018
|
|
$
|
30.5
|
|
|
$
|
44.0
|
|
|
$
|
25.1
|
|
|
$
|
99.6
|
|
Restructuring and
Related Costs
|
|
0.7
|
|
|
0.7
|
|
|
0.1
|
|
|
1.5
|
|
Purchase Accounting
and Transaction Costs
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
Income from
Operations of Businesses Divested/to be Exited
|
|
(3.0)
|
|
|
(2.1)
|
|
|
—
|
|
|
(5.1)
|
|
Adjusted Income from
Operations of Ongoing Business
|
|
$
|
33.3
|
|
|
$
|
42.6
|
|
|
$
|
25.2
|
|
|
$
|
101.1
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted Operating Margin %
|
|
7.6
|
%
|
|
16.5
|
%
|
|
11.8
|
%
|
|
11.1
|
%
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 Third
Quarter Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended September 29, 2018
|
|
$
|
462.3
|
|
|
$
|
255.4
|
|
|
$
|
207.7
|
|
|
$
|
925.4
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(34.7)
|
|
|
(13.3)
|
|
|
—
|
|
|
(48.0)
|
|
Net Sales from
Ongoing Business
|
|
$
|
427.6
|
|
|
$
|
242.1
|
|
|
$
|
207.7
|
|
|
$
|
877.4
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations Three Months Ended September 29, 2018
|
|
$
|
35.3
|
|
|
$
|
6.0
|
|
|
$
|
28.1
|
|
|
$
|
69.4
|
|
Restructuring and
Related Costs
|
|
1.9
|
|
|
0.3
|
|
|
0.1
|
|
|
2.3
|
|
Purchase Accounting
and Transaction Costs
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
34.9
|
|
|
—
|
|
|
34.9
|
|
Income from
Operations of Businesses Divested/to be Exited
|
|
(3.0)
|
|
|
(1.5)
|
|
|
—
|
|
|
(4.5)
|
|
Adjusted Income from
Operations of Ongoing Business
|
|
$
|
34.4
|
|
|
$
|
39.7
|
|
|
$
|
28.2
|
|
|
$
|
102.3
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted Operating Margin %
|
|
8.0
|
%
|
|
16.4
|
%
|
|
13.6
|
%
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 Fourth
Quarter Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended December 29, 2018
|
|
$
|
436.7
|
|
|
$
|
232.2
|
|
|
$
|
212.8
|
|
|
$
|
881.7
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(35.6)
|
|
|
(11.2)
|
|
|
—
|
|
|
(46.8)
|
|
Net Sales from
Ongoing Business
|
|
$
|
401.1
|
|
|
$
|
221.0
|
|
|
$
|
212.8
|
|
|
$
|
834.9
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations Three Months Ended December 29, 2018
|
|
$
|
32.1
|
|
|
$
|
33.3
|
|
|
$
|
24.4
|
|
|
$
|
89.8
|
|
Restructuring and
Related Costs
|
|
1.7
|
|
|
0.4
|
|
|
0.1
|
|
|
2.2
|
|
Purchase Accounting
and Transaction Costs
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Gain on Sale of
Assets
|
|
(1.5)
|
|
|
(0.7)
|
|
|
—
|
|
|
(2.2)
|
|
CEO Transition
Costs
|
|
1.8
|
|
|
1.1
|
|
|
0.9
|
|
|
3.8
|
|
Income from
Operations of Businesses Divested/to be Exited
|
|
(3.0)
|
|
|
(1.6)
|
|
|
—
|
|
|
(4.6)
|
|
Adjusted Income from
Operations of Ongoing Business
|
|
$
|
31.2
|
|
|
$
|
32.5
|
|
|
$
|
25.4
|
|
|
$
|
89.1
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted Operating Margin %
|
|
7.8
|
%
|
|
14.7
|
%
|
|
11.9
|
%
|
|
10.7
|
%
|
|
|
Commercial &
Industrial Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 Full
Year Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
Net Sales Twelve
Months Ended December 29, 2018
|
|
$
|
1,782.0
|
|
|
$
|
1,024.8
|
|
|
$
|
838.8
|
|
|
$
|
3,645.6
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
(137.4)
|
|
|
(61.7)
|
|
|
—
|
|
|
(199.1)
|
|
Net Sales from
Ongoing Business
|
|
$
|
1,644.6
|
|
|
$
|
963.1
|
|
|
$
|
838.8
|
|
|
$
|
3,446.5
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations Twelve Months Ended December 29, 2018
|
|
$
|
127.0
|
|
|
$
|
115.6
|
|
|
$
|
104.4
|
|
|
$
|
347.0
|
|
Restructuring and
Related Costs
|
|
5.6
|
|
|
1.8
|
|
|
0.3
|
|
|
7.7
|
|
Purchase Accounting
and Transaction Costs
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
Gain on Sale of
Assets
|
|
(1.5)
|
|
|
(0.7)
|
|
|
—
|
|
|
(2.2)
|
|
CEO Transition
Costs
|
|
1.8
|
|
|
1.1
|
|
|
0.9
|
|
|
3.8
|
|
Impairment and Exit
Related Costs
|
|
—
|
|
|
34.9
|
|
|
—
|
|
|
34.9
|
|
Income from
Operations of Businesses Divested/to be Exited
|
|
(12.3)
|
|
|
(6.8)
|
|
|
—
|
|
|
(19.1)
|
|
Adjusted Income from
Operations of Ongoing Business
|
|
$
|
126.0
|
|
|
$
|
145.9
|
|
|
$
|
105.6
|
|
|
$
|
377.5
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted Operating Margin %
|
|
7.7
|
%
|
|
15.1
|
%
|
|
12.6
|
%
|
|
11.0
|
%
|
2018 ADJUSTED
DILUTED EARNINGS PER SHARE FOR ONGOING BUSINESS
|
|
Twelve Months
Ended December 29, 2018
|
|
|
|
Adjusted Diluted
Earnings Per Share
|
|
|
|
$
|
6.00
|
|
Earnings Per Share
from Businesses Divested/to be Exited
|
|
|
|
(0.25)
|
|
Adjusted Diluted
Earnings Per Share for Ongoing Business
|
|
|
|
$
|
5.75
|
|
View original
content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-fourth-quarter-2018-financial-results-300789332.html
SOURCE Regal Beloit Corporation