BELOIT, Wis., May 3, 2021 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC), a global leader in the engineering and
manufacturing of power transmission solutions and high-efficiency
electric motors and systems, reported first quarter 2021 diluted
earnings per share of $1.60 compared
to $1.12 a year ago, up 43%. First
quarter 2021 adjusted diluted earnings per share was a record
$1.98 compared to $1.31 a year ago, up 51%.
Key financial results for the first quarter 2021 included:
- Total net sales of $814.1 million
increased 10.9% from the prior year. Excluding the positive impacts
of 1.8% from foreign currency, sales increased 9.1% on an organic
basis.
- Income from operations was $97.1
million or 11.9% of net sales, up 240 bps versus prior year.
Adjusted income from operations rose $33.9 million or 42.8% from a year ago, to
$113.1 million. Adjusted operating
margin of 13.9% - a record quarterly result for Regal - was up 310
basis points versus the prior year's 10.8%.
- Net cash provided by operating activities was $49.5 million and capital expenditures totaled
$10.7 million, resulting in free cash
flow of $38.8 million, which is 59.1%
of adjusted net income.
First quarter 2021 segment results versus the prior year first
quarter:
- Commercial Systems segment net sales were $237.0 million, an increase of 18.9%. Foreign
currency had a positive 2.9% impact. The result was a positive
organic sales growth rate of 15.9%, driven by strong growth in
China and Asia Pacific, gains in the global commercial
HVAC business, and continued solid growth in the pool pump market.
Operating margin was 11.6%. After net adjustments of $0.2 million, adjusted operating margin was
11.7% of adjusted net sales.
- Industrial Systems segment net sales were $136.4 million, an increase of 5.2%. Foreign
currency had a positive 3.7% impact. The result was a positive
organic sales growth rate of 1.5%, driven by strength in
China, strong demand in
India and continued healthy growth
in the data center market. Somewhat offsetting these tailwinds were
persistent, albeit diminishing, pressures on later cycle N.A.
general industrial end markets, combined with ongoing proactive
account pruning. Operating margin was 2.7%. After net adjustments
of $0.4 million, adjusted
operating margin was 3.0% of adjusted net sales.
- Climate Solutions segment net sales were $239.1 million, an increase of 13.8%. Foreign
currency had a negative 0.2% impact. The result was a positive
organic sales growth rate of 14.0%, driven primarily by continued
strong demand in N.A. residential HVAC markets, and recovering
demand in EMEA, N.A. general industrial markets and the commercial
refrigeration business. Notably, orders in the N.A. HVAC business
were up 21% in the first quarter on a daily basis, boosted by
re-stocking activity, healthy underlying end market demand and
weather. Operating margin was 18.1%. After net adjustments of
$0.3 million, adjusted operating
margin was 18.2% of adjusted net sales.
- Power Transmission Solutions segment net sales were
$201.6 million, an increase of 3.3%.
Foreign currency had a positive 1.5% impact. The result was a
positive organic sales growth rate of 1.8% driven by project wins
in the aerospace end market, strength in the conveying business,
healthy growth in China and
recovering shorter cycle N.A. general industrial end markets.
Partially offsetting these tailwinds were project timing in the
still-healthy solar market, and continued, though moderating,
declines in oil & gas end markets. Operating margin was 11.2%.
After net adjustments of $15.1 million, adjusted operating margin was
a record 18.7% of adjusted net sales.
*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.
Summarizing Regal's first quarter 2021 performance, CEO
Louis Pinkham commented, "Regal
delivered a very strong first quarter that solidly beat our
internal expectations, with sales growth accelerating into the
double digits and adjusted operating margin expanding over 300
basis points versus prior year to a record level, resulting in
adjusted earnings per share growth above 50%. Our Regal team is
executing at a high level, and all segments are contributing to our
strong performance, aided by recovering industrial end markets,
particularly in China, continued
strong momentum in the HVAC, pool and data center markets, as well
as pockets of share gain across the business. We also announced a
transformational merger with Rexnord's PMC business, which will
allow Regal to deliver unmatched capabilities across the industrial
drive train, and remains on track to close in the fourth quarter of
2021."
Mr. Pinkham went on to comment, "We raised our dividend by
10% in April and as I contemplate the remainder of 2021, I am
optimistic about our performance, perhaps most notably on the top
line, given solid recent order momentum. While we are clearly
facing commodity inflation, all of our segments continue to execute
outgrowth and margin enhancement initiatives, guided by an 80/20
mindset and, increasingly, by using lean tools to remove waste,
overburden and variance from all processes. Finally, recently
refining our business purpose – To Create a Better Tomorrow by
Energy-Efficiently Converting Power into Motion – with the subtle
but meaningful addition of 'Energy' signals our commitment to be
more intentional about leveraging Regal's differentiated
engineering capabilities to meet growing demand for more
energy-efficient products, and do our part to help the
environment."
2021 Guidance
The Company is providing guidance for the second quarter of
2021, including sales growth rates in the high-20's, GAAP diluted
earnings per share in a range of $1.50 to $1.70, and
adjusted diluted EPS in a range of $1.85 to $2.05. The
mid-point of the adjusted diluted EPS range implies over 100%
growth versus the prior year.
The Company's guidance assumes no material decline in its
production capacity, or in its ability to conduct commercial
operations, either from COVID-related disruptions, or other
factors, including supply chain disruptions, versus levels as of
the date of this release.
The Company's guidance does not take into account any costs,
expenses or other effects of the transaction with respect to
Rexnord's Process & Motion Control (PMC) business.
A reconciliation of the Company's GAAP EPS guidance to its
adjusted EPS guidance is included in a table later in this
release.
Conference Call
Regal will hold a conference call to discuss this earnings
release at 9:00 AM CT (10:00 AM ET) on Tuesday,
May 4, 2021. To listen to the live audio and view the
presentation during the call, please visit Regal's Investors
website: https://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
1308781# 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), using a replay access
code of 10154967#. Both will be accessible for three months after
the earnings call.
Investor Conference Participation
Regal management will be participating in the following investor
conferences during the second quarter of 2021 – the Oppenheimer
16th Annual Industrial Growth Conference on May 5th, the Goldman Sachs Industrials &
Materials Conference on May 11th and
the KeyBanc Industrials and Basic Materials Conference on
June 1st. All conference
participation will be virtual.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a global leader in the
engineering and manufacturing of electric motors and controls,
power generation and power transmission products serving customers
throughout the world. Our purpose is to create a better tomorrow by
energy-efficiently converting power into motion.
The Company is comprised of four operating segments: Commercial
Systems, 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
Certain statements made in this release are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. This release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, which reflect the Company's current estimates,
expectations and projections about the Company's future results,
performance, prospects and opportunities. Such forward-looking
statements may include, among other things, statements about the
Company's future operations, anticipated business levels, future
earnings, planned activities, anticipated growth, market
opportunities, strategies, competition and other expectations and
estimates for future periods. Forward-looking statements may also
include statements relating to the proposed acquisition of Rexnord
Corporation's ("Rexnord") Process & Motion Control business
(the "PMC Business") (the "Rexnord Transaction"), the benefits and
synergies of the Rexnord Transaction, future opportunities for the
Company, the PMC Business and the combined company, and any other
statements regarding the Rexnord Transaction or the combined
company. Forward-looking statements include statements that are not
historical facts and can be identified by forward-looking words
such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "plan," "may," "should," "will," "would," "project,"
"forecast," and similar expressions. These forward-looking
statements are based upon information currently available to the
Company and are subject to a number of risks, uncertainties, and
other factors that could cause the performance, prospects, or
opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements. Important factors
that could cause actual results to differ materially from the
results referred to in the forward-looking statements the Company
makes in this report include:
Operations and Strategy
- the continued financial and operational impacts of and
uncertainties relating to the COVID-19 pandemic on customers and
suppliers and the geographies in which they operate;
- uncertainties regarding the ability to execute restructuring
plans within expected costs and timing;
- our ability to develop new products based on technological
innovation, such as the Internet of Things ("IoT"), and marketplace
acceptance of new and existing products, including products related
to technology not yet adopted or utilized in certain geographic
locations in which we do business;
- fluctuations in commodity prices and raw material costs;
- our dependence on significant customers;
- effects on earnings of any significant impairment of goodwill
or intangible assets;
- prolonged declines or disruption in one or more markets we
serve, such as heating, ventilation, air conditioning ("HVAC"),
refrigeration, power generation, oil and gas, unit material
handling or water heating;
- 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;
- our overall debt levels and our ability to repay principal and
interest on our outstanding debt, including debt assumed or
incurred in connection with the Rexnord Transaction;
- our dependence on key suppliers and the potential effects of
supply disruptions;
- seasonal impact on sales of our products into HVAC systems and
other residential applications;
Global Footprint
- actions taken by our competitors and our ability to effectively
compete in the increasingly competitive global electric motor and
controls, power generation and power transmission industries;
- risks associated with global manufacturing, including risks
associated with public health crises;
- 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;
Legal and Regulatory Environment
- unanticipated costs or expenses we may incur related to
litigation, including product warranty issues;
- infringement of our intellectual property by third parties,
challenges to our intellectual property and claims of infringement
by us of third party technologies;
- losses from failures, breaches, attacks or disclosures
involving our information technology infrastructure and data;
Mergers, Acquisitions and Divestitures
- the possibility that the conditions will not be satisfied or
the approvals will not be obtained required to complete the Rexnord
Transaction, including shareholder or regulatory approvals, and the
possibility that the IRS ruling sought in connection with the
Rexnord Transaction will not be received on the terms requested, or
at all;
- changes in the extent and characteristics of the common
shareholders of Rexnord and the Company and its effect pursuant to
the merger agreement for the Rexnord Transaction on the number of
shares of Company common stock issuable pursuant to the
transaction, magnitude of the dividend payable to Company
shareholders pursuant to the transaction and the extent of
indebtedness to be incurred by the Company in connection with the
transaction;
- failure to successfully integrate the PMC Business and any
other future acquisitions into our business or achieve expected
synergies and operating efficiencies, due to factors such as the
future financial and operating performance of the acquired
business, loss of key executives and employees, and operating
costs, customer loss and business disruption being greater than
expected;
- costs and indemnification obligations related to the Rexnord
Transaction;
- unanticipated liabilities of acquired businesses, including the
PMC Business;
- operating restrictions related to the Rexnord Transaction;
- unanticipated adverse effects or liabilities from business
exits or divestitures;
General
- changes in the method of determining London Interbank Offered
Rate ("LIBOR"), or the replacement of LIBOR with an alternative
reference rate;
- cyclical downturns affecting the global market for capital
goods;
- and other risks and uncertainties including, but not limited,
to those described in "Part I - Item 1A - Risk Factors" in our
Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission ("SEC") on March 2, 2021 and from time to
time in other filed reports.
Shareholders, potential investors, and other readers are urged
to consider these factors in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this release are made only as of the date of this release, and
the Company undertakes no obligation to update any forward-looking
information contained in this release or with respect to the
announcements described herein to reflect subsequent events or
circumstances. Additional information regarding these and
other risks and uncertainties is included in "Part I -
Item 1A - Risk Factors" in our Annual Report on Form 10-K
filed with the SEC on March 2, 2021 and from time to time in
other filed reports, including the Company's Quarterly Reports on
Form 10-Q.
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, net debt, adjusted EBITDA, adjusted
operating leverage, 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, adjusted operating
income, adjusted operating margin, and adjusted operating leverage
to help us manage and evaluate our business and make operating
decisions, while adjusted diluted earnings per share, net debt,
adjusted EBITDA, 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 any sales from acquired businesses recorded prior to the
first anniversary of the acquisition ("net sales from business
acquired") and excluding any 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.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Unaudited
|
|
|
|
|
(Dollars in Millions,
Except per Share Data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
Net Sales
|
|
$
|
814.1
|
|
|
$
|
734.2
|
|
Cost of
Sales
|
|
568.7
|
|
|
530.9
|
|
Gross
Profit
|
|
245.4
|
|
|
203.3
|
|
Operating
Expenses
|
|
148.3
|
|
|
131.8
|
|
Asset
Impairments
|
|
—
|
|
|
1.5
|
|
Total Operating
Expenses
|
|
148.3
|
|
|
133.3
|
|
Income from
Operations
|
|
97.1
|
|
|
70.0
|
|
Other Income,
Net
|
|
(1.2)
|
|
|
(1.1)
|
|
Interest
Expense
|
|
12.6
|
|
|
11.6
|
|
Interest
Income
|
|
1.5
|
|
|
1.1
|
|
Income before
Taxes
|
|
87.2
|
|
|
60.6
|
|
Provision for Income
Taxes
|
|
20.2
|
|
|
13.9
|
|
Net Income
|
|
67.0
|
|
|
46.7
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
1.4
|
|
|
0.9
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
65.6
|
|
|
$
|
45.8
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
Basic
|
|
$
|
1.62
|
|
|
$
|
1.13
|
|
Assuming
Dilution
|
|
$
|
1.60
|
|
|
$
|
1.12
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
Basic
|
|
40.6
|
|
|
40.6
|
|
Assuming
Dilution
|
|
41.0
|
|
|
40.8
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Apr 3,
2021
|
|
Jan 2,
2021
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
566.4
|
|
|
$
|
611.3
|
|
Trade Receivables,
less Allowances
of
$18.8 million in 2021 and $18.3 million in
2020
|
|
483.9
|
|
|
432.0
|
|
Inventories
|
|
722.2
|
|
|
690.3
|
|
Prepaid Expenses and
Other Current Assets
|
|
153.9
|
|
|
117.7
|
|
Total Current
Assets
|
|
1,926.4
|
|
|
1,851.3
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,700.8
|
|
|
2,737.7
|
|
Total
Assets
|
|
$
|
4,627.2
|
|
|
$
|
4,589.0
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
412.3
|
|
|
$
|
360.1
|
|
Other Accrued
Expenses
|
|
227.9
|
|
|
230.9
|
|
Current Maturities of
Debt
|
|
230.8
|
|
|
231.0
|
|
Total Current
Liabilities
|
|
871.0
|
|
|
822.0
|
|
|
|
|
|
|
Long-Term
Debt
|
|
786.9
|
|
|
840.4
|
|
Other Noncurrent
Liabilities
|
|
351.5
|
|
|
349.6
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,584.1
|
|
|
2,544.4
|
|
Noncontrolling
Interests
|
|
33.7
|
|
|
32.6
|
|
Total
Equity
|
|
2,617.8
|
|
|
2,577.0
|
|
Total Liabilities and
Equity
|
|
$
|
4,627.2
|
|
|
$
|
4,589.0
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Apr 3,
2021
|
|
Mar 28,
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net Income
|
|
$
|
67.0
|
|
|
$
|
46.7
|
|
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
|
|
31.8
|
|
|
32.6
|
|
Loss on Disposal of
Assets
|
|
0.6
|
|
|
0.7
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
|
1.4
|
|
Share-Based
Compensation Expense
|
|
3.3
|
|
|
2.7
|
|
Change in Operating
Assets and Liabilities
|
|
(53.2)
|
|
|
18.6
|
|
Net Cash Provided by
Operating Activities
|
|
49.5
|
|
|
102.7
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(10.7)
|
|
|
(10.9)
|
|
Proceeds Received
from Sales of Property, Plant and Equipment
|
|
0.9
|
|
|
2.7
|
|
Business
Acquisitions, Net of Cash Acquired
|
|
(1.9)
|
|
|
—
|
|
Proceeds Received
from Disposal of Businesses
|
|
—
|
|
|
0.3
|
|
Net Cash Used in
Investing Activities
|
|
(11.7)
|
|
|
(7.9)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Net Borrowings Under
Revolving Credit Facility
|
|
—
|
|
|
227.1
|
|
Net Repayments of
Short-Term Borrowings
|
|
(0.2)
|
|
|
—
|
|
Repayments of
Long-Term Debt
|
|
(50.1)
|
|
|
(0.1)
|
|
Dividends Paid to
Shareholders
|
|
(12.2)
|
|
|
(12.2)
|
|
Proceeds from the
Exercise of Stock Options
|
|
0.1
|
|
|
—
|
|
Repurchase of Common
Stock
|
|
—
|
|
|
(25.0)
|
|
Shares Surrendered
for Taxes
|
|
(1.9)
|
|
|
(1.1)
|
|
Financing Fees
Paid
|
|
(12.4)
|
|
|
—
|
|
Net Cash (Used in)
Provided by Financing Activities
|
|
(76.7)
|
|
|
188.7
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
(6.0)
|
|
|
(10.4)
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
|
(44.9)
|
|
|
273.1
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
611.3
|
|
|
331.4
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
566.4
|
|
|
$
|
604.5
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
Net Sales
|
|
$
|
237.0
|
|
|
$
|
199.4
|
|
|
$
|
136.4
|
|
|
$
|
129.6
|
|
|
$
|
239.1
|
|
|
$
|
210.1
|
|
|
$
|
201.6
|
|
|
$
|
195.1
|
|
|
$
|
814.1
|
|
|
$
|
734.2
|
|
Adjusted Net
Sales*
|
|
$
|
237.0
|
|
|
$
|
199.4
|
|
|
$
|
136.4
|
|
|
$
|
129.6
|
|
|
$
|
239.1
|
|
|
$
|
210.1
|
|
|
$
|
201.6
|
|
|
$
|
195.1
|
|
|
$
|
814.1
|
|
|
$
|
734.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
11.6
|
%
|
|
6.1
|
%
|
|
2.7
|
%
|
|
(0.1)
|
%
|
|
18.1
|
%
|
|
14.0
|
%
|
|
11.2
|
%
|
|
14.6
|
%
|
|
11.9
|
%
|
|
9.5
|
%
|
Adjusted Operating
Margin*
|
|
11.7
|
%
|
|
7.6
|
%
|
|
3.0
|
%
|
|
1.1
|
%
|
|
18.2
|
%
|
|
15.2
|
%
|
|
18.7
|
%
|
|
15.7
|
%
|
|
13.9
|
%
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
15.9
|
%
|
|
(12.5)
|
%
|
|
1.5
|
%
|
|
(4.5)
|
%
|
|
14.0
|
%
|
|
(14.8)
|
%
|
|
1.8
|
%
|
|
(4.2)
|
%
|
|
9.1
|
%
|
|
(9.8)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(4.5)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(5.0)
|
%
|
|
—
|
%
|
|
(2.5)
|
%
|
|
—
|
%
|
|
(3.5)
|
%
|
Foreign Currency
Impact
|
|
2.9
|
%
|
|
(0.7)
|
%
|
|
3.7
|
%
|
|
(1.7)
|
%
|
|
(0.2)
|
%
|
|
(0.4)
|
%
|
|
1.5
|
%
|
|
(0.5)
|
%
|
|
1.8
|
%
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.60
|
|
|
$
|
1.12
|
|
Restructuring and
Related Costs
|
|
0.03
|
|
|
0.10
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
|
0.03
|
|
Net Loss from
Businesses Divested/to be Exited
|
|
—
|
|
|
0.01
|
|
Executive Transition
Costs
|
|
—
|
|
|
0.05
|
|
Transaction
Costs
|
|
0.36
|
|
|
—
|
|
Gain on Sale of
Assets
|
|
(0.01)
|
|
|
—
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.98
|
|
|
$
|
1.31
|
|
|
|
|
|
|
2021 ADJUSTED
SECOND QUARTER GUIDANCE
|
|
Minimum
|
|
Maximum
|
2021 Diluted EPS
Second Quarter Guidance
|
|
$
|
1.50
|
|
|
$
|
1.70
|
|
Restructuring and
Related Costs
|
|
0.11
|
|
|
0.11
|
|
Transaction and
Related Costs
|
|
0.24
|
|
|
0.24
|
|
2021 Adjusted Diluted
EPS Second Quarter Guidance
|
|
$
|
1.85
|
|
|
$
|
2.05
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
GAAP Income (Loss)
from
Operations
|
|
$
|
27.5
|
|
|
$
|
12.1
|
|
|
$
|
3.7
|
|
|
$
|
(0.1)
|
|
|
$
|
43.3
|
|
|
$
|
29.5
|
|
|
$
|
22.6
|
|
|
$
|
28.5
|
|
|
$
|
97.1
|
|
|
$
|
70.0
|
|
Restructuring and
Related Costs
|
|
0.2
|
|
|
1.8
|
|
|
0.5
|
|
|
0.9
|
|
|
0.3
|
|
|
1.1
|
|
|
0.7
|
|
|
1.8
|
|
|
1.7
|
|
|
5.6
|
|
Transaction
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
Loss on Businesses
Divested and
Assets to be Exited
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
Operating Loss from
Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Executive Transition
Costs
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
Adjusted Income from
Operations
|
|
$
|
27.7
|
|
|
$
|
15.1
|
|
|
$
|
4.1
|
|
|
$
|
1.4
|
|
|
$
|
43.6
|
|
|
$
|
32.0
|
|
|
$
|
37.7
|
|
|
$
|
30.7
|
|
|
$
|
113.1
|
|
|
$
|
79.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
11.6%
|
|
6.1%
|
|
2.7%
|
|
(0.1)%
|
|
18.1%
|
|
14.0%
|
|
11.2%
|
|
14.6%
|
|
11.9%
|
|
9.5%
|
Adjusted Operating
Margin %
|
|
11.7%
|
|
7.6%
|
|
3.0%
|
|
1.1%
|
|
18.2%
|
|
15.2%
|
|
18.7%
|
|
15.7%
|
|
13.9%
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Apr 3,
2021
|
|
Jan 2,
2021
|
Net Income
|
|
$
|
214.1
|
|
|
$
|
193.8
|
|
Interest
Expense
|
|
|
|
40.8
|
|
|
39.8
|
|
Interest
Income
|
|
|
|
(6.3)
|
|
|
(5.9)
|
|
Taxes
|
|
|
|
63.1
|
|
|
56.8
|
|
Depreciation and
Amortization
|
|
|
|
130.6
|
|
|
131.4
|
|
EBITDA
|
|
|
|
$
|
442.3
|
|
|
$
|
415.9
|
|
Restructuring and
Related Costs
|
|
|
|
32.9
|
|
|
36.8
|
|
Transactions
Costs
|
|
|
|
15.4
|
|
|
0.7
|
|
Impairment and Exit
Related Costs
|
|
|
|
3.8
|
|
|
5.3
|
|
Executive Transition
Costs
|
|
|
|
—
|
|
|
1.8
|
|
Goodwill
Impairment
|
|
|
|
10.5
|
|
|
10.5
|
|
Operating Loss from
Businesses Divested/to be Exited
|
|
|
|
—
|
|
|
0.4
|
|
Loss on Sale of
Assets
|
|
|
|
0.2
|
|
|
0.6
|
|
Gain on Divestiture
of Businesses
|
|
|
|
—
|
|
|
(0.1)
|
|
Adjusted
EBITDA
|
|
|
|
$
|
505.1
|
|
|
$
|
471.9
|
|
|
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
|
230.8
|
|
|
$
|
231.0
|
|
Long-Term
Debt
|
|
|
|
786.9
|
|
|
840.4
|
|
Total Gross
Debt
|
|
|
|
$
|
1,017.7
|
|
|
$
|
1,071.4
|
|
Cash
|
|
|
|
(566.4)
|
|
|
(611.3)
|
|
Net
Debt
|
|
|
|
$
|
451.3
|
|
|
$
|
460.1
|
|
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
|
|
2.3
|
|
|
2.6
|
|
Gross Debt/Adjusted
EBITDA
|
|
|
|
2.0
|
|
|
2.3
|
|
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
|
|
1.0
|
|
|
1.1
|
|
Net Debt/Adjusted
EBITDA
|
|
|
|
0.9
|
|
|
1.0
|
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
Net Cash Provided by
Operating Activities
|
|
$
|
49.5
|
|
|
$
|
102.7
|
|
Additions to Property
Plant and Equipment
|
|
(10.7)
|
|
|
(10.9)
|
|
Free Cash
Flow
|
|
$
|
38.8
|
|
|
$
|
91.8
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
65.6
|
|
|
$
|
45.8
|
|
Loss on Businesses
Divested and Impairments
|
|
—
|
|
|
1.4
|
|
Tax Effect from Loss
on Businesses Divested and Impairments
|
|
—
|
|
|
(0.3)
|
|
Adjusted Net Income
Attributable to Regal Beloit Corporation1
|
|
$
|
65.6
|
|
|
$
|
46.9
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable to Regal Beloit
Corporation
|
|
59.1
|
%
|
|
195.7
|
%
|
|
|
|
|
|
1 The Net Income Attributable
to Regal Beloit Corporation is adjusted for the gains and losses on
divested businesses and
goodwill and asset impairments related to the businesses to be
exited and used in the Free Cash Flow Calculation.
|
ADJUSTED EFFECTIVE
TAX RATE
|
|
Three Months
Ended
|
|
|
Apr
3,
2021
|
|
Mar 28,
2020
|
Income before
Taxes
|
|
$
|
87.2
|
|
|
$
|
60.6
|
|
Provision for Income
Taxes
|
|
20.2
|
|
|
13.9
|
|
Effective Tax
Rate
|
|
23.2
|
%
|
|
22.9
|
%
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
87.2
|
|
|
$
|
60.6
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
|
1.4
|
|
Adjusted Income
before Taxes
|
|
$
|
87.2
|
|
|
$
|
62.0
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
20.2
|
|
|
$
|
13.9
|
|
Tax Effect from Loss
on Businesses Divested and Assets to be Exited
|
|
—
|
|
|
0.3
|
|
Non-deductible
Portion of Executive Transition Costs
|
|
—
|
|
|
(0.5)
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
20.2
|
|
|
$
|
13.7
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
23.2
|
%
|
|
22.1
|
%
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
April 3,
2021
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Apr 3, 2021
|
|
$
|
237.0
|
|
|
$
|
136.4
|
|
|
$
|
239.1
|
|
|
$
|
201.6
|
|
|
$
|
814.1
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(5.8)
|
|
|
(4.8)
|
|
|
0.4
|
|
|
(2.9)
|
|
|
(13.1)
|
|
Organic Sales Three
Months Ended Apr 3, 2021
|
|
$
|
231.2
|
|
|
$
|
131.6
|
|
|
$
|
239.5
|
|
|
$
|
198.7
|
|
|
$
|
801.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Mar 28, 2020
|
|
$
|
199.4
|
|
|
$
|
129.6
|
|
|
$
|
210.1
|
|
|
$
|
195.1
|
|
|
$
|
734.2
|
|
Adjusted Net Sales
Three Months Ended Mar 28, 2020
|
|
$
|
199.4
|
|
|
$
|
129.6
|
|
|
$
|
210.1
|
|
|
$
|
195.1
|
|
|
$
|
734.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Apr 3, 2021 Organic Sales Growth %
|
|
15.9
|
%
|
|
1.5
|
%
|
|
14.0
|
%
|
|
1.8
|
%
|
|
9.1
|
%
|
Three Months Ended
Apr 3, 2021 Net Sales Growth %
|
|
18.9
|
%
|
|
5.2
|
%
|
|
13.8
|
%
|
|
3.3
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-record-first-quarter-2021-financial-results-301282448.html
SOURCE Regal Beloit Corporation