BELOIT, Wis., July 28, 2021 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC)
Second Quarter Highlights
- Sales Growth Accelerates, Up 40% Versus PY and Up 37% on an
Organic Basis
- Record Adjusted Operating Margin* of 14.0% Up 460 bps versus PY
(GAAP Operating Margin 12.3%)
- Achieving "300-in-3"1 Margin Expansion Target Well
Ahead of Schedule
- Record Adjusted Diluted EPS* of $2.28 Up 140% versus PY (GAAP Diluted EPS of
$1.94)
- Daily Orders Up 57% in 2Q and Tracking up Mid-20's in July
versus PY
- Net Debt to Adjusted EBITDA of 0.7x, with Free Cash Flow of
$73.5M for Conversion of 90.3%
- Expect 2021 Adjusted Diluted EPS* Range of $8.70 to $9.00
(GAAP Diluted EPS Range of $7.29 to
$7.59)
Update on Rexnord PMC Merger
- Closing is On Track for the Second Half of 2021
- All Required Regulatory Approvals Received
- Special Meeting of Shareholders Scheduled for September 1, 2021
- Raising Expected 2022 Pro Forma Adjusted EBITDA to Greater Than
$1.0 Billion and Reiterating Adjusted
EBITDA Margin of ~ 21%
CEO Louis Pinkham commented,
"Regal's performance in Q2 was very strong – setting a record
for operating margin two quarters in a row and exceeding our
expectations – with organic sales growth YOY approaching 40% and up
low-single digits compared to 2019. This drove adjusted operating
margin expansion of nearly 500 basis points versus prior year to a
record 14.0%, resulting in adjusted earnings per share growth of
140% YOY and up 53% to 2019."
"The guidance we're providing for 2021 reflects strong top
line growth due to market strength as well as share gains, along
with continued margin improvement from our multi-year
transformation activities. Our targeted mid-point for adjusted 2021
EPS of $8.85 represents 53% growth
versus 2020 and 61% versus 2019. In addition, the combination of
our 2Q results plus our performance expectations for the second
half of this year equate to delivering on our "300-in-3" margin
expansion plan well ahead of our three year target. Clearly, the
structural changes we've implemented over the last couple years
have dramatically transformed Regal."
"As I look ahead, I am highly enthusiastic about our upcoming
merger with Rexnord PMC, which is on track to close in the second
half of 2021, having now received all required regulatory
approvals. At this time, we are awaiting the private letter ruling
from the IRS and our shareholder vote scheduled for September 1st. With three months of additional
integration planning under our belt, I am even more confident that
the combination will deliver tremendous value to all of our
stakeholders, driven by best-in-class cost synergies and
substantial cross-marketing opportunities. We will leverage Regal's
and Rexnord's unparalleled capabilities across the Industrial
Powertrain, and continue to deliver the most energy-efficient
solutions for our customers."
Mr. Pinkham went on to comment, "Based on strengthening
performance at Regal and at Rexnord PMC, and factoring our
previously disclosed merger synergy expectations, we now expect the
pro forma business to generate more than $1
Billion of adjusted EBITDA in 2022, ahead of our initial
expectations."
1 Regal's
300-in-3 margin expansion goal, set at the Company's March 2020
Investor Day, called for 300 bps of adjusted operating margin
expansion in three years compared to the 2019 annual result of
10.7%.
|
*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.
|
2021 Guidance
The Company is providing guidance for 2021, including sales
growth rates in the high-teens, GAAP diluted EPS in a range of
$7.29 to $7.59, and adjusted diluted EPS in a range of
$8.70 to $9.00. The mid-point of the adjusted diluted EPS
range implies 53% growth versus the prior year.
The Company's adjusted EPS guidance does not give effect to the
transaction with respect to Rexnord's Process & Motion Control
(PMC) business or any costs or expenses related to the
transaction.
A reconciliation of the Company's GAAP EPS guidance to its
adjusted EPS guidance is included in a table later in this
release.
Segment Performance
Second quarter 2021 segment results versus the prior year:
- Power Transmission Solutions net sales were $215.1 million, an increase of 34.9%, or 33.1% on
an organic basis. Drivers included strength in alternative energy,
the North America general
industrial market, the conveying business, C-HVAC and improving
demand in Europe. Adjusted
operating margin* was 19.4% of adjusted net sales, another
record.
- Climate Solutions net sales were $257.3
million, an increase of 44.4%, or 43.4% on an organic basis.
Drivers included strong demand in North
America residential HVAC markets, in EMEA and in
North America general industrial
markets. Notably, orders in the North
America residential HVAC business were up 63% in the second
quarter on a daily basis, driven by healthy underlying end market
demand, weather and some re-stocking activity. Adjusted operating
margin* was 18.4% of adjusted net sales.
- Commercial Systems net sales were $269.3
million, an increase of 53.1%, or 49.6% on an organic basis.
Drivers included strong growth in North
America general industrial markets, solid gains in the pool
pump market, strong performance in China and share gains in commercial HVAC
(C-HVAC). Adjusted operating margin* was 11.6% of adjusted net
sales.
- Industrial Systems net sales were $145.2
million, an increase of 20.4%, or 15.2% on an organic basis.
Drivers included strength in the data center market and some
recovery in the North America
industrial motors market. Adjusted operating margin* was 2.3% 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.
Conference Call
Regal will hold a conference call to discuss this earnings
release at 9:00 AM CT (10:00 AM ET) on Thursday,
July 29, 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
1844651# 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 10158257#. Both will be accessible for three months after
the earnings call.
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 to the consummation of the
Rexnord Transaction will not be satisfied, including shareholder
approvals, that there will be delays in satisfying or adverse
conditions related to the satisfaction of such conditions, or that
the Rexnord Transaction will fail to be consummated or be delayed
in being consummated for other reasons; the possibility that the
IRS ruling sought in connection with the Rexnord Transaction will
not be received on the terms requested, or at all, all, or that
there will be delays in obtaining or adverse conditions related to
the receipt of the IRS ruling;
- 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;
- the ability to obtain the anticipated tax treatment of the
Rexnord Transaction and related transactions;
- failure to successfully integrate the PMC Business and any
other future acquisitions into our business or achieve financial
results, operating results, expected synergies and operating
efficiencies, due to factors including the future financial and
operating performance of the acquired business, loss of key
executives and employees, or operating costs, customer loss and
business disruption being greater than expected;
- costs and indemnification obligations related to transactions,
including the Rexnord Transaction;
- risks associated with any litigation related to the Rexnord
Transaction or other transactions;
- 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.
ADDITIONAL INFORMATION
This communication does not constitute an offer to buy, or a
solicitation of an offer to sell, any securities of the Company,
Rexnord or Land Newco, Inc. ("Land"). In connection with the
Rexnord Transaction, the Company and Land filed registration
statements with the SEC registering shares of Company common stock
and Land common stock in connection with the Rexnord Transaction,
which have become effective. The Company's Registration Statement
on Form S-4 (No. 333-255982) includes a joint proxy
statement/prospectus-information statement relating to the Rexnord
Transaction, which has been mailed to Company shareholders and
Rexnord shareholders. Company shareholders and Rexnord shareholders
are urged to read the joint proxy statement/prospectus-information
statement and any other relevant documents when they become
available, because they contain and will contain important
information about the Company, Rexnord, Land and the Rexnord
Transaction. The joint proxy statement/prospectus-information
statement and other documents relating to the Rexnord Transaction
can also be obtained free of charge from the SEC's website at
www.sec.gov. The joint proxy statement/prospectus-information
statement and other documents can also be obtained free of charge
from Rexnord upon written request to Rexnord Corporation, Investor
Relations, 511 Freshwater Way, Milwaukee,
WI 53204, or by calling (414) 643-3739 or upon written
request to Regal Beloit Corporation, Investor Relations, 200 State
Street, Beloit, WI 53511 or by
calling (608) 364-8800.
PARTICIPANTS IN THE SOLICITATION
This communication is not a solicitation of a proxy from any
security holder of the Company. However, Rexnord, the Company and
certain of their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from
shareholders of Rexnord and the Company in connection with the
Rexnord Transaction under the rules of the SEC. Information about
the directors and executive officers of Rexnord may be found in its
Annual Report on Form 10-K filed with the SEC on February 16, 2021 and its definitive proxy
statement relating to its 2021 Annual Meeting filed with the SEC on
March 16, 2021. Information about the
directors and executive officers of the Company may be found in its
Annual Report on Form 10-K filed with the SEC on March 2, 2021, and its definitive proxy statement
relating to its 2021 Annual Meeting filed with the SEC on
March 18, 2021.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in Millions,
Except per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
Net Sales
|
|
$
|
886.9
|
|
|
$
|
634.1
|
|
|
$
|
1,701.0
|
|
|
$
|
1,368.3
|
|
Cost of
Sales
|
|
635.4
|
|
|
463.8
|
|
|
1,204.1
|
|
|
994.7
|
|
Gross
Profit
|
|
251.5
|
|
|
170.3
|
|
|
496.9
|
|
|
373.6
|
|
Operating
Expenses
|
|
140.2
|
|
|
121.6
|
|
|
288.5
|
|
|
253.4
|
|
Asset
Impairments
|
|
2.3
|
|
|
2.8
|
|
|
2.3
|
|
|
4.3
|
|
Total Operating
Expenses
|
|
142.5
|
|
|
124.4
|
|
|
290.8
|
|
|
257.7
|
|
Income from
Operations
|
|
109.0
|
|
|
45.9
|
|
|
206.1
|
|
|
115.9
|
|
Other Income,
Net
|
|
(1.2)
|
|
|
(1.1)
|
|
|
(2.4)
|
|
|
(2.2)
|
|
Interest
Expense
|
|
11.5
|
|
|
10.6
|
|
|
24.1
|
|
|
22.2
|
|
Interest
Income
|
|
1.7
|
|
|
1.4
|
|
|
3.2
|
|
|
2.5
|
|
Income before
Taxes
|
|
100.4
|
|
|
37.8
|
|
|
187.6
|
|
|
98.4
|
|
Provision for Income
Taxes
|
|
19.2
|
|
|
8.5
|
|
|
39.4
|
|
|
22.4
|
|
Net Income
|
|
81.2
|
|
|
29.3
|
|
|
148.2
|
|
|
76.0
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
1.6
|
|
|
1.2
|
|
|
3.0
|
|
|
2.1
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
79.6
|
|
|
$
|
28.1
|
|
|
$
|
145.2
|
|
|
$
|
73.9
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.96
|
|
|
$
|
0.69
|
|
|
$
|
3.57
|
|
|
$
|
1.82
|
|
Assuming
Dilution
|
|
$
|
1.94
|
|
|
$
|
0.69
|
|
|
$
|
3.54
|
|
|
$
|
1.81
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.63
|
|
|
$
|
0.60
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
40.7
|
|
|
40.5
|
|
|
40.6
|
|
|
40.6
|
|
Assuming
Dilution
|
|
41.0
|
|
|
40.7
|
|
|
41.0
|
|
|
40.7
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Jul 3,
2021
|
|
Jan 2,
2021
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
618.5
|
|
|
$
|
611.3
|
|
Trade Receivables,
less Allowances
of
$18.4 million in 2021 and $18.3 million in
2020
|
|
558.0
|
|
|
432.0
|
|
Inventories
|
|
759.2
|
|
|
690.3
|
|
Prepaid Expenses and
Other Current Assets
|
|
148.5
|
|
|
117.7
|
|
Total Current
Assets
|
|
2,084.2
|
|
|
1,851.3
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,689.5
|
|
|
2,737.7
|
|
Total
Assets
|
|
$
|
4,773.7
|
|
|
$
|
4,589.0
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
461.4
|
|
|
$
|
360.1
|
|
Other Accrued
Expenses
|
|
246.5
|
|
|
230.9
|
|
Current Maturities of
Debt
|
|
230.9
|
|
|
231.0
|
|
Total Current
Liabilities
|
|
938.8
|
|
|
822.0
|
|
|
|
|
|
|
Long-Term
Debt
|
|
789.0
|
|
|
840.4
|
|
Other Noncurrent
Liabilities
|
|
349.4
|
|
|
349.6
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,665.0
|
|
|
2,544.4
|
|
Noncontrolling
Interests
|
|
31.5
|
|
|
32.6
|
|
Total
Equity
|
|
2,696.5
|
|
|
2,577.0
|
|
Total Liabilities and
Equity
|
|
$
|
4,773.7
|
|
|
$
|
4,589.0
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
81.2
|
|
|
$
|
29.3
|
|
|
$
|
148.2
|
|
|
$
|
76.0
|
|
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
|
|
30.5
|
|
|
33.3
|
|
|
62.3
|
|
|
65.9
|
|
Loss (Gain) on
Disposal of Assets
|
|
(0.1)
|
|
|
0.7
|
|
|
0.5
|
|
|
1.4
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
2.3
|
|
|
2.8
|
|
|
2.3
|
|
|
4.2
|
|
Share-Based
Compensation Expense
|
|
4.5
|
|
|
2.8
|
|
|
7.8
|
|
|
5.5
|
|
Change in Operating
Assets and Liabilities
|
|
(31.3)
|
|
|
18.0
|
|
|
(84.5)
|
|
|
36.6
|
|
Net Cash Provided by
Operating Activities
|
|
87.1
|
|
|
86.9
|
|
|
136.6
|
|
|
189.6
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(13.6)
|
|
|
(9.5)
|
|
|
(24.3)
|
|
|
(20.4)
|
|
Proceeds Received
from Sales of Property, Plant and Equipment
|
|
0.9
|
|
|
2.6
|
|
|
1.8
|
|
|
5.3
|
|
Business
Acquisitions, Net of Cash Acquired
|
|
(1.9)
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
Proceeds Received
from Disposal of Businesses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Net Cash Used in
Investing Activities
|
|
(14.6)
|
|
|
(6.9)
|
|
|
(26.3)
|
|
|
(14.8)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Borrowings Under
Revolving Credit Facility
|
|
—
|
|
|
(239.5)
|
|
|
—
|
|
|
(12.4)
|
|
Net Proceeds of
Short-Term Borrowings
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Proceeds from
Long-Term Debt
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Repayments of
Long-Term Debt
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(50.2)
|
|
|
(0.2)
|
|
Dividends Paid to
Shareholders
|
|
(12.2)
|
|
|
(12.1)
|
|
|
(24.4)
|
|
|
(24.3)
|
|
Proceeds from the
Exercise of Stock Options
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
Repurchase of Common
Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.0)
|
|
Distributions to
Noncontrolling Interest
|
|
(4.5)
|
|
|
(2.7)
|
|
|
(4.5)
|
|
|
(2.7)
|
|
Shares Surrendered
for Taxes
|
|
(4.2)
|
|
|
(1.4)
|
|
|
(6.1)
|
|
|
(2.5)
|
|
Financing Fees
Paid
|
|
(4.6)
|
|
|
—
|
|
|
(17.0)
|
|
|
—
|
|
Net Cash Used in
Financing Activities
|
|
(25.4)
|
|
|
(255.5)
|
|
|
(102.1)
|
|
|
(66.8)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
5.0
|
|
|
3.2
|
|
|
(1.0)
|
|
|
(7.2)
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
|
52.1
|
|
|
(172.3)
|
|
|
7.2
|
|
|
100.8
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
566.4
|
|
|
604.5
|
|
|
611.3
|
|
|
331.4
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
618.5
|
|
|
$
|
432.2
|
|
|
$
|
618.5
|
|
|
$
|
432.2
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
Net Sales
|
|
$
|
269.3
|
|
|
$
|
175.9
|
|
|
$
|
145.2
|
|
|
$
|
120.6
|
|
|
$
|
257.3
|
|
|
$
|
178.2
|
|
|
$
|
215.1
|
|
|
$
|
159.4
|
|
|
$
|
886.9
|
|
|
$
|
634.1
|
|
Adjusted Net
Sales*
|
|
$
|
269.3
|
|
|
$
|
175.9
|
|
|
$
|
145.2
|
|
|
$
|
120.6
|
|
|
$
|
257.3
|
|
|
$
|
178.2
|
|
|
$
|
215.1
|
|
|
$
|
159.4
|
|
|
$
|
886.9
|
|
|
$
|
634.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
9.4
|
%
|
|
3.5
|
%
|
|
2.1
|
%
|
|
2.7
|
%
|
|
18.1
|
%
|
|
11.2
|
%
|
|
15.8
|
%
|
|
10.4
|
%
|
|
12.3
|
%
|
|
7.2
|
%
|
Adjusted Operating
Margin*
|
|
11.6
|
%
|
|
6.0
|
%
|
|
2.3
|
%
|
|
4.3
|
%
|
|
18.4
|
%
|
|
12.4
|
%
|
|
19.4
|
%
|
|
13.6
|
%
|
|
14.0
|
%
|
|
9.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
49.6
|
%
|
|
(23.6)
|
%
|
|
15.2
|
%
|
|
(19.8)
|
%
|
|
43.4
|
%
|
|
(31.4)
|
%
|
|
33.1
|
%
|
|
(21.1)
|
%
|
|
37.2
|
%
|
|
(24.7)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(3.8)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(1.4)
|
%
|
|
—
|
%
|
|
(0.1)
|
%
|
|
—
|
%
|
|
(1.5)
|
%
|
Foreign Currency
Impact
|
|
3.5
|
%
|
|
(1.2)
|
%
|
|
5.2
|
%
|
|
(2.6)
|
%
|
|
1.0
|
%
|
|
(0.7)
|
%
|
|
1.8
|
%
|
|
(0.7)
|
%
|
|
2.7
|
%
|
|
(1.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
Net Sales
|
|
$
|
506.3
|
|
|
$
|
375.3
|
|
|
$
|
281.6
|
|
|
$
|
250.2
|
|
|
$
|
496.4
|
|
|
$
|
388.3
|
|
|
$
|
416.7
|
|
|
$
|
354.5
|
|
|
$
|
1,701.0
|
|
|
$
|
1,368.3
|
|
Adjusted Net
Sales*
|
|
$
|
506.3
|
|
|
$
|
375.3
|
|
|
$
|
281.6
|
|
|
$
|
250.2
|
|
|
$
|
496.4
|
|
|
$
|
388.3
|
|
|
$
|
416.7
|
|
|
$
|
354.5
|
|
|
$
|
1,701.0
|
|
|
$
|
1,368.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
10.4
|
%
|
|
4.9
|
%
|
|
2.4
|
%
|
|
1.2
|
%
|
|
18.1
|
%
|
|
12.7
|
%
|
|
13.6
|
%
|
|
12.7
|
%
|
|
12.1
|
%
|
|
8.5
|
%
|
Adjusted Operating
Margin*
|
|
11.7
|
%
|
|
6.8
|
%
|
|
2.7
|
%
|
|
2.6
|
%
|
|
18.3
|
%
|
|
13.9
|
%
|
|
19.1
|
%
|
|
14.8
|
%
|
|
13.9
|
%
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth
|
|
31.7
|
%
|
|
(18.1)
|
%
|
|
8.1
|
%
|
|
(12.6)
|
%
|
|
27.5
|
%
|
|
(23.3)
|
%
|
|
15.9
|
%
|
|
(12.6)
|
%
|
|
22.1
|
%
|
|
(17.4)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(4.2)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(3.1)
|
%
|
|
—
|
%
|
|
(1.2)
|
%
|
|
—
|
%
|
|
(2.4)
|
%
|
Foreign Currency
Impact
|
|
3.2
|
%
|
|
(0.9)
|
%
|
|
4.4
|
%
|
|
(2.2)
|
%
|
|
0.3
|
%
|
|
(0.5)
|
%
|
|
1.6
|
%
|
|
(0.6)
|
%
|
|
2.2
|
%
|
|
(1.0)
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.94
|
|
|
$
|
0.69
|
|
|
$
|
3.54
|
|
|
$
|
1.81
|
|
Restructuring and
Related Costs
|
|
0.11
|
|
|
0.21
|
|
|
0.14
|
|
|
0.31
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
0.04
|
|
|
0.05
|
|
|
0.04
|
|
|
0.08
|
|
Net Loss from
Businesses Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Executive Transition
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Transaction
Costs
|
|
0.19
|
|
|
—
|
|
|
0.55
|
|
|
—
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
2.28
|
|
|
$
|
0.95
|
|
|
$
|
4.26
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
2021 ADJUSTED
ANNUAL GUIDANCE
|
|
Minimum
|
|
Maximum
|
2021 Diluted EPS
Annual Guidance
|
|
$
|
7.29
|
|
|
$
|
7.59
|
|
Restructuring and
Related Costs
|
|
0.30
|
|
|
0.30
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
0.04
|
|
|
0.04
|
|
Transaction
Costs
|
|
1.14
|
|
|
1.14
|
|
Gain on Sales of
Assets
|
|
(0.07)
|
|
|
(0.07)
|
|
2021 Adjusted Diluted
EPS Annual Guidance
|
|
$
|
8.70
|
|
|
$
|
9.00
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
GAAP Income from
Operations
|
|
$
|
25.4
|
|
|
$
|
6.2
|
|
|
$
|
3.1
|
|
|
$
|
3.2
|
|
|
$
|
46.5
|
|
|
$
|
20.0
|
|
|
$
|
34.0
|
|
|
$
|
16.5
|
|
|
$
|
109.0
|
|
|
$
|
45.9
|
|
Restructuring and
Related Costs
|
|
4.1
|
|
|
2.3
|
|
|
0.3
|
|
|
2.0
|
|
|
0.3
|
|
|
1.3
|
|
|
0.9
|
|
|
5.3
|
|
|
5.6
|
|
|
10.9
|
|
Transaction
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
1.8
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
2.8
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.1)
|
|
Adjusted Income from
Operations
|
|
$
|
31.3
|
|
|
$
|
10.5
|
|
|
$
|
3.4
|
|
|
$
|
5.2
|
|
|
$
|
47.3
|
|
|
$
|
22.1
|
|
|
$
|
41.8
|
|
|
$
|
21.7
|
|
|
$
|
123.8
|
|
|
$
|
59.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
9.4%
|
|
3.5%
|
|
2.1%
|
|
2.7%
|
|
18.1%
|
|
11.2%
|
|
15.8%
|
|
10.4%
|
|
12.3%
|
|
7.2%
|
Adjusted Operating
Margin %
|
|
11.6%
|
|
6.0%
|
|
2.3%
|
|
4.3%
|
|
18.4%
|
|
12.4%
|
|
19.4%
|
|
13.6%
|
|
14.0%
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
GAAP Income from
Operations
|
|
$
|
52.9
|
|
|
$
|
18.3
|
|
|
$
|
6.8
|
|
|
$
|
3.1
|
|
|
$
|
89.8
|
|
|
$
|
49.5
|
|
|
$
|
56.6
|
|
|
$
|
45.0
|
|
|
$
|
206.1
|
|
|
$
|
115.9
|
|
Restructuring and
Related Costs
|
|
4.3
|
|
|
4.1
|
|
|
0.8
|
|
|
2.9
|
|
|
0.6
|
|
|
2.4
|
|
|
1.6
|
|
|
7.1
|
|
|
7.3
|
|
|
16.5
|
|
Transaction
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
1.8
|
|
|
2.7
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
4.2
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
(0.1)
|
|
|
(0.6)
|
|
|
(0.1)
|
|
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
|
|
$
|
59.0
|
|
|
$
|
25.6
|
|
|
$
|
7.5
|
|
|
$
|
6.6
|
|
|
$
|
90.9
|
|
|
$
|
54.1
|
|
|
$
|
79.5
|
|
|
$
|
52.4
|
|
|
$
|
236.9
|
|
|
$
|
138.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
10.4%
|
|
4.9%
|
|
2.4%
|
|
1.2%
|
|
18.1%
|
|
12.7%
|
|
13.6%
|
|
12.7%
|
|
12.1%
|
|
8.5%
|
Adjusted Operating
Margin %
|
|
11.7%
|
|
6.8%
|
|
2.7%
|
|
2.6%
|
|
18.3%
|
|
13.9%
|
|
19.1%
|
|
14.8%
|
|
13.9%
|
|
10.1%
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Jul 3,
2021
|
|
Jan 2,
2021
|
Net Income
|
|
$
|
266.0
|
|
|
$
|
193.8
|
|
Interest
Expense
|
|
|
|
41.7
|
|
|
39.8
|
|
Interest
Income
|
|
|
|
(6.6)
|
|
|
(5.9)
|
|
Taxes
|
|
|
|
73.8
|
|
|
56.8
|
|
Depreciation and
Amortization
|
|
|
|
127.8
|
|
|
131.4
|
|
EBITDA
|
|
|
|
$
|
502.7
|
|
|
$
|
415.9
|
|
Restructuring and
Related Costs
|
|
|
|
27.6
|
|
|
36.8
|
|
Transactions
Costs
|
|
|
|
22.5
|
|
|
0.7
|
|
Impairment and Exit
Related Costs
|
|
|
|
3.3
|
|
|
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
|
|
|
|
0.1
|
|
|
0.6
|
|
Gain on Divestiture
of Businesses
|
|
|
|
—
|
|
|
(0.1)
|
|
Adjusted
EBITDA
|
|
|
|
$
|
566.7
|
|
|
$
|
471.9
|
|
|
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
|
230.9
|
|
|
$
|
231.0
|
|
Long-Term
Debt
|
|
|
|
789.0
|
|
|
840.4
|
|
Total Gross
Debt
|
|
|
|
$
|
1,019.9
|
|
|
$
|
1,071.4
|
|
Cash
|
|
|
|
(618.5)
|
|
|
(611.3)
|
|
Net
Debt
|
|
|
|
$
|
401.4
|
|
|
$
|
460.1
|
|
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
|
|
2.0
|
|
|
2.6
|
|
Gross Debt/Adjusted
EBITDA
|
|
|
|
1.8
|
|
|
2.3
|
|
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
|
|
0.8
|
|
|
1.1
|
|
Net Debt/Adjusted
EBITDA
|
|
|
|
0.7
|
|
|
1.0
|
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
Net Cash Provided by
Operating Activities
|
|
$
|
87.1
|
|
|
$
|
86.9
|
|
|
$
|
136.6
|
|
|
$
|
189.6
|
|
Additions to Property
Plant and Equipment
|
|
(13.6)
|
|
|
(9.5)
|
|
|
(24.3)
|
|
|
(20.4)
|
|
Free Cash
Flow
|
|
$
|
73.5
|
|
|
$
|
77.4
|
|
|
$
|
112.3
|
|
|
$
|
169.2
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
79.6
|
|
|
$
|
28.1
|
|
|
$
|
145.2
|
|
|
$
|
73.9
|
|
Loss on Businesses
Divested and Impairments
|
|
2.3
|
|
|
2.8
|
|
|
2.3
|
|
|
4.2
|
|
Tax Effect from Loss
on Businesses Divested and Impairments
|
|
(0.5)
|
|
|
(0.6)
|
|
|
(0.5)
|
|
|
(0.9)
|
|
Adjusted Net Income
Attributable to Regal Beloit Corporation1
|
|
$
|
81.4
|
|
|
$
|
30.3
|
|
|
$
|
147.0
|
|
|
$
|
77.2
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable to Regal Beloit
Corporation
|
|
90.3
|
%
|
|
255.4
|
%
|
|
76.4
|
%
|
|
219.2
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
|
Jul 3,
2021
|
|
Jun 27,
2020
|
Income before
Taxes
|
|
$
|
100.4
|
|
|
$
|
37.8
|
|
|
$
|
187.6
|
|
|
$
|
98.4
|
|
Provision for Income
Taxes
|
|
19.2
|
|
|
8.5
|
|
|
39.4
|
|
|
22.4
|
|
Effective Tax
Rate
|
|
19.1
|
%
|
|
22.5
|
%
|
|
21.0
|
%
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
100.4
|
|
|
$
|
37.8
|
|
|
$
|
187.6
|
|
|
$
|
98.4
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
2.3
|
|
|
2.8
|
|
|
2.3
|
|
|
4.2
|
|
Adjusted Income
before Taxes
|
|
$
|
102.7
|
|
|
$
|
40.6
|
|
|
$
|
189.9
|
|
|
$
|
102.6
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
19.2
|
|
|
$
|
8.5
|
|
|
$
|
39.4
|
|
|
$
|
22.4
|
|
Tax Effect from Loss
on Businesses Divested and Assets to be Exited
|
|
0.5
|
|
|
0.6
|
|
|
0.5
|
|
|
0.9
|
|
Non-deductible
Portion of Executive Transition Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
19.7
|
|
|
$
|
9.1
|
|
|
$
|
39.9
|
|
|
$
|
22.8
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
19.2
|
%
|
|
22.4
|
%
|
|
21.0
|
%
|
|
22.2
|
%
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
July 3,
2021
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Jul 3, 2021
|
|
$
|
269.3
|
|
|
$
|
145.2
|
|
|
$
|
257.3
|
|
|
$
|
215.1
|
|
|
$
|
886.9
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(6.1)
|
|
|
(6.3)
|
|
|
(1.7)
|
|
|
(2.9)
|
|
|
(17.0)
|
|
Organic Sales Three
Months Ended Jul 3, 2021
|
|
$
|
263.2
|
|
|
$
|
138.9
|
|
|
$
|
255.6
|
|
|
$
|
212.2
|
|
|
$
|
869.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Jun 27, 2020
|
|
$
|
175.9
|
|
|
$
|
120.6
|
|
|
$
|
178.2
|
|
|
$
|
159.4
|
|
|
$
|
634.1
|
|
Adjusted Net Sales
Three Months Ended Jun 27, 2020
|
|
$
|
175.9
|
|
|
$
|
120.6
|
|
|
$
|
178.2
|
|
|
$
|
159.4
|
|
|
$
|
634.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Jul 3, 2021 Organic Sales Growth %
|
|
49.6
|
%
|
|
15.2
|
%
|
|
43.4
|
%
|
|
33.1
|
%
|
|
37.2
|
%
|
Three Months Ended
Jul 3, 2021 Net Sales Growth %
|
|
53.1
|
%
|
|
20.4
|
%
|
|
44.4
|
%
|
|
34.9
|
%
|
|
39.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
ORGANIC SALES
GROWTH
|
|
Six Months
Ended
|
|
|
July 3,
2021
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Six Months
Ended Jul 3, 2021
|
|
$
|
506.3
|
|
|
$
|
281.6
|
|
|
$
|
496.4
|
|
|
$
|
416.7
|
|
|
$
|
1,701.0
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(11.9)
|
|
|
(11.1)
|
|
|
(1.3)
|
|
|
(5.8)
|
|
|
(30.1)
|
|
Organic Sales Six
Months Ended Jul 3, 2021
|
|
$
|
494.4
|
|
|
$
|
270.5
|
|
|
$
|
495.1
|
|
|
$
|
410.9
|
|
|
$
|
1,670.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Six Months
Ended Jun 27, 2020
|
|
$
|
375.3
|
|
|
$
|
250.2
|
|
|
$
|
388.3
|
|
|
$
|
354.5
|
|
|
$
|
1,368.3
|
|
Adjusted Net Sales
Six Months Ended Jun 27, 2020
|
|
$
|
375.3
|
|
|
$
|
250.2
|
|
|
$
|
388.3
|
|
|
$
|
354.5
|
|
|
$
|
1,368.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended Jul
3, 2021 Organic Sales Growth %
|
|
31.7
|
%
|
|
8.1
|
%
|
|
27.5
|
%
|
|
15.9
|
%
|
|
22.1
|
%
|
Six Months Ended Jul
3, 2021 Net Sales Growth %
|
|
34.9
|
%
|
|
12.5
|
%
|
|
27.8
|
%
|
|
17.5
|
%
|
|
24.3
|
%
|
View original
content:https://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-record-second-quarter-2021-financial-results-301343677.html
SOURCE Regal Beloit Corporation