BELOIT, Wis., Oct. 28, 2020 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC), a global leader in the engineering and
manufacturing of high-efficiency electric motors and power
transmission products, reported third quarter 2020 diluted earnings
per share of $1.60 compared to
$1.19 a year ago. Third quarter 2020
adjusted diluted earnings per share* were $1.73 compared to $1.35 a year ago.
Key financial results for the third quarter 2020 included:
- Total net sales of $758.2 million
decreased 1.8% from the prior year. Excluding the negative impacts
of 0.2% from foreign currency and 0.1% from businesses to be
divested/exited, sales declined 1.5% on an organic basis.
- Income from operations was $90.0
million or 11.9% of net sales. Adjusted income from
operations rose $15.7 million or
19.3% from a year ago, to $97.0
million, on a net sales decline of 1.8%. Adjusted operating
margin of 12.8% was up 230 basis points versus the prior year's
10.5%.
- Net cash provided by operating activities was $120.3 million and capital expenditures totaled
$9.3 million, resulting in free cash
flow of $111.0 million, which is
170.8% of adjusted net income.
- While no shares were repurchased in the third quarter, the
Company has decided to resume its stock repurchase program.
Third quarter 2020 segment results versus the prior year third
quarter:
- Commercial Systems segment net sales were $218.5 million, an increase of 1.7%. Foreign
currency had a positive 0.5% impact. The result was a positive
organic sales growth rate of 1.3%, driven by strength in the pool
pump market, share gains in the China motors business, and to a lesser extent
growth in N.A. large commercial HVAC. Partially offsetting these
tailwinds were ongoing, although diminished, COVID-related
disruptions in our Mexico
manufacturing operations and ongoing proactive account pruning.
Operating margin was 11.6%. After net adjustments of $1.0 million, adjusted operating margin was 12.0%
of adjusted net sales.
- Industrial Systems segment net sales were $138.8 million, a decrease of 3.5%. Foreign
currency had a negative 0.6% impact. The result was a negative
organic sales growth rate of 2.9%, driven by COVID-related
headwinds across the business, mainly impacting the N.A. general
industrial and oil & gas end markets, combined with ongoing
proactive account pruning. Partially offsetting these headwinds,
the Company realized share gains in its data center business.
Operating margin was 4.8%. After net adjustments of $2.7 million, adjusted operating margin was 6.7%
of adjusted net sales.
- Climate Solutions segment net sales were $234.0 million, an increase of 1.3%. Businesses
divested/to be exited had a negative 0.4% impact, and foreign
currency had a negative 0.8% impact. The result was a positive
organic sales growth rate of 2.5%, driven primarily by strong
demand in the N.A. residential HVAC market, partially offset by
COVID-related headwinds in the commercial refrigeration market, and
in the N.A. light commercial HVAC market, as well as ongoing
proactive account pruning. Notably, orders in the N.A. HVAC
business were up 27% in September and are tracking up roughly 22%
in October. Operating margin was 16.8%. After net adjustments of
$0.9 million, adjusted operating
margin was 17.1% of adjusted net sales.
- Power Transmission Solutions segment net sales were
$166.9 million, a decrease of 8.7%.
Foreign currency had a positive 0.2% impact. The result was a
negative organic sales growth rate of 8.9% driven by significant
COVID-related declines in N.A. general industrial and upstream oil
& gas end markets, project lumpiness in alternative energy, and
ongoing proactive account pruning. On the positive side, and
partially offsetting these headwinds, was strength in the conveying
business tied to share gains in the unit material handling market.
Operating margin was 11.3%. After net adjustments of $2.4 million, adjusted operating margin was 12.8%
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 third quarter 2020 performance, CEO
Louis Pinkham commented, "I am
very proud of our team for driving significant year-over-year
operating profit improvement on down sales. Despite facing ongoing
personal and professional challenges related to COVID, our Regal
associates continued to execute a range of restructuring actions,
and drive 80/20 deeper into our organization, resulting in
significant operating income growth, margin expansion, and FCF
generation – even as the top line faced COVID-related declines.
There is no question that we are transforming the cost structure of
Regal and have a path to further material improvements."
Mr. Pinkham went on to comment, "As I look across our
segments, it's also encouraging to see more bright spots than in
recent quarters, with two of our four segments – Climate and
Commercial – returning to positive sales growth during the quarter,
Industrial close to flat, and PTS significantly narrowing its rate
of decline. The order story is also brighter, with growth rates
turning positive in the quarter, and a recovery in the key N.A.
general industrial market in PTS still to come. Notably, our N.A.
residential HVAC business saw its orders rise almost 30% in
September, with October up over 20%. I remain incredibly proud of
how our Regal associates continue to execute, with a sense of
urgency, to best serve our customers, improve profitability,
sustain healthy FCF, and pursue strategic growth opportunities –
many tied to improving safety and energy efficiency."
COVID-19 Update
The global COVID-19 pandemic continued to negatively impact the
Company's operations in the third quarter – although to a lesser
extent than in prior quarters – both in terms of hurting demand in
many of its end markets and regarding the virus's impact on the
Company's manufacturing capacity. Fortunately, as the third quarter
progressed, pressure on Regal's order rates started to abate, and
order rates inflected to the positive for three of the company's
four segments. Order rates are positive for all segments thus far
in October. The Company's global manufacturing base is largely
operational, with plants running at somewhat reduced rates
approximating 90% of full capacity, on average, in Mexico and India.
Management will continue to monitor COVID-related risk,
acknowledging that in many regions confirmed cases of COVID-19 are
on the rise.
2020 Guidance
The Company is providing guidance for the fourth quarter of
2020, with GAAP diluted earnings per share expected to be in a
range of $1.34 to $1.54, and diluted adjusted EPS in a range of
$1.46 to $1.66, which at the mid-point implies nearly 25%
growth versus the prior year.
The company's fourth quarter EPS expectation implies 2020 annual
GAAP diluted earnings per share in a range of $4.75 to $4.95, and
diluted adjusted EPS in a range of $5.45 to $5.65,
which at the mid-point implies moderate 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, versus levels as of the date of this release.
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 Thursday,
October 29, 2020. 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
6491323# 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 10148643#. 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. We create a better tomorrow by developing and
responsibly producing energy-efficient products and systems.
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
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:
the continued financial and operational impacts of and
uncertainties relating to the COVID-19 pandemic on us and our
customers and suppliers and the geographies in which we operate;
uncertainties regarding our ability to execute our restructuring
plans within expected costs and timing; actions taken by our
competitors and our ability to effectively compete in the
increasingly competitive global electric motor, drives and
controls, power generation and power transmission industries; our
ability to develop new products based on technological innovation,
such as the Internet of Things, 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; risks associated
with global manufacturing, including risks associated with public
health crises; issues and costs arising from the integration of
acquired companies and businesses and the timing and impact of
purchase accounting adjustments; our overall debt levels and our
ability to repay principal and interest on our outstanding debt;
prolonged declines in one or more markets we serve, such as
heating, ventilation, air conditioning, refrigeration, power
generation, oil and gas, unit material handling or water heating;
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
with the U.S. Securities and Exchange Commission on February 26, 2020 and from time to time in other
filed reports including the Company's Quarterly Reports on Form
10-Q. 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.
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
|
|
Nine Months
Ended
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
Net Sales
|
|
$
|
758.2
|
|
|
$
|
772.3
|
|
|
$
|
2,126.5
|
|
|
$
|
2,499.8
|
|
Cost of
Sales
|
|
536.6
|
|
|
570.4
|
|
|
1,531.3
|
|
|
1,829.3
|
|
Gross
Profit
|
|
221.6
|
|
|
201.9
|
|
|
595.2
|
|
|
670.5
|
|
Operating
Expenses
|
|
131.6
|
|
|
129.1
|
|
|
385.0
|
|
|
371.1
|
|
Asset
Impairments
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
10.0
|
|
Total Operating
Expenses
|
|
131.6
|
|
|
129.1
|
|
|
389.3
|
|
|
381.1
|
|
Income from
Operations
|
|
90.0
|
|
|
72.8
|
|
|
205.9
|
|
|
289.4
|
|
Other (Income)
Expenses, net
|
|
(1.1)
|
|
|
0.1
|
|
|
(3.3)
|
|
|
0.4
|
|
Interest
Expense
|
|
9.0
|
|
|
13.5
|
|
|
31.2
|
|
|
40.5
|
|
Interest
Income
|
|
1.3
|
|
|
1.5
|
|
|
3.8
|
|
|
4.0
|
|
Income before
Taxes
|
|
83.4
|
|
|
60.7
|
|
|
181.8
|
|
|
252.5
|
|
Provision for Income
Taxes
|
|
17.1
|
|
|
9.9
|
|
|
39.5
|
|
|
47.5
|
|
Net Income
|
|
66.3
|
|
|
50.8
|
|
|
142.3
|
|
|
205.0
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
1.3
|
|
|
1.1
|
|
|
3.4
|
|
|
2.8
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
65.0
|
|
|
$
|
49.7
|
|
|
$
|
138.9
|
|
|
$
|
202.2
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.60
|
|
|
$
|
1.20
|
|
|
$
|
3.42
|
|
|
$
|
4.78
|
|
Assuming
Dilution
|
|
$
|
1.60
|
|
|
$
|
1.19
|
|
|
$
|
3.41
|
|
|
$
|
4.75
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.90
|
|
|
$
|
0.88
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
40.6
|
|
|
41.5
|
|
|
40.6
|
|
|
42.3
|
|
Assuming
Dilution
|
|
40.8
|
|
|
41.7
|
|
|
40.7
|
|
|
42.6
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Sep 26,
2020
|
|
Dec 28,
2019
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
487.5
|
|
|
$
|
331.4
|
|
Trade Receivables,
less Allowances
of $15.6 Million in 2020 and $9.7 Million in
2019
|
|
472.5
|
|
|
461.4
|
|
Inventories
|
|
677.2
|
|
|
678.4
|
|
Prepaid Expenses and
Other Current Assets
|
|
115.4
|
|
|
136.5
|
|
Total Current
Assets
|
|
1,752.6
|
|
|
1,607.7
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,726.8
|
|
|
2,823.0
|
|
Total
Assets
|
|
$
|
4,479.4
|
|
|
$
|
4,430.7
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
363.8
|
|
|
$
|
337.0
|
|
Other Accrued
Expenses
|
|
236.4
|
|
|
222.9
|
|
Current Maturities of
Debt
|
|
230.6
|
|
|
0.6
|
|
Total Current
Liabilities
|
|
830.8
|
|
|
560.5
|
|
|
|
|
|
|
Long-Term
Debt
|
|
840.2
|
|
|
1,136.9
|
|
Other Noncurrent
Liabilities
|
|
356.5
|
|
|
352.9
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,421.9
|
|
|
2,351.1
|
|
Noncontrolling
Interests
|
|
30.0
|
|
|
29.3
|
|
Total
Equity
|
|
2,451.9
|
|
|
2,380.4
|
|
Total Liabilities and
Equity
|
|
$
|
4,479.4
|
|
|
$
|
4,430.7
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
66.3
|
|
|
$
|
50.8
|
|
|
$
|
142.3
|
|
|
$
|
205.0
|
|
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
|
|
32.9
|
|
|
33.9
|
|
|
98.8
|
|
|
100.4
|
|
Loss on Disposal of
Assets
|
|
1.3
|
|
|
1.3
|
|
|
2.7
|
|
|
1.7
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
—
|
|
|
0.2
|
|
|
4.2
|
|
|
(35.2)
|
|
Share-Based
Compensation Expense
|
|
2.7
|
|
|
2.6
|
|
|
8.2
|
|
|
10.0
|
|
Change in Operating
Assets and Liabilities
|
|
17.1
|
|
|
51.8
|
|
|
53.7
|
|
|
(10.7)
|
|
Net Cash Provided by
Operating Activities
|
|
120.3
|
|
|
140.6
|
|
|
309.9
|
|
|
271.2
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(9.3)
|
|
|
(21.1)
|
|
|
(29.7)
|
|
|
(77.3)
|
|
Proceeds Received
from Sales of Property, Plant and Equipment
|
|
2.3
|
|
|
—
|
|
|
7.6
|
|
|
1.7
|
|
Proceeds Received
from Disposal of Businesses
|
|
—
|
|
|
21.4
|
|
|
0.3
|
|
|
159.6
|
|
Net Cash (Used in)
Provided by Investing Activities
|
|
(7.0)
|
|
|
0.3
|
|
|
(21.8)
|
|
|
84.0
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Repayments Under
Revolving Credit Facility
|
|
(5.3)
|
|
|
(22.7)
|
|
|
(17.7)
|
|
|
(83.1)
|
|
Proceeds from
Long-Term Debt
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Repayments of
Long-Term Debt
|
|
(50.0)
|
|
|
—
|
|
|
(50.2)
|
|
|
(24.2)
|
|
Dividends Paid to
Shareholders
|
|
(12.2)
|
|
|
(12.6)
|
|
|
(36.5)
|
|
|
(36.6)
|
|
Proceeds from the
Exercise of Stock Options
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Repurchase of Common
Stock
|
|
—
|
|
|
(94.2)
|
|
|
(25.0)
|
|
|
(150.1)
|
|
Distributions to
Noncontrolling Interest
|
|
(0.1)
|
|
|
(1.5)
|
|
|
(2.8)
|
|
|
(1.8)
|
|
Shares Surrendered
for Taxes
|
|
(0.8)
|
|
|
(0.5)
|
|
|
(3.3)
|
|
|
(8.0)
|
|
Net Cash Used in
Financing Activities
|
|
(68.4)
|
|
|
(131.5)
|
|
|
(135.2)
|
|
|
(303.8)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
10.4
|
|
|
(7.7)
|
|
|
3.2
|
|
|
(7.0)
|
|
Net Increase in Cash
and Cash Equivalents
|
|
55.3
|
|
|
1.7
|
|
|
156.1
|
|
|
44.4
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
432.2
|
|
|
291.3
|
|
|
331.4
|
|
|
248.6
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
487.5
|
|
|
$
|
293.0
|
|
|
$
|
487.5
|
|
|
$
|
293.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
Net Sales
|
|
$
|
218.5
|
|
|
$
|
214.8
|
|
|
$
|
138.8
|
|
|
$
|
143.8
|
|
|
$
|
234.0
|
|
|
$
|
230.9
|
|
|
$
|
166.9
|
|
|
$
|
182.8
|
|
|
$
|
758.2
|
|
|
$
|
772.3
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
Adjusted Net
Sales*
|
|
$
|
218.5
|
|
|
$
|
214.8
|
|
|
$
|
138.8
|
|
|
$
|
143.8
|
|
|
$
|
234.0
|
|
|
$
|
230.0
|
|
|
$
|
166.9
|
|
|
$
|
182.8
|
|
|
$
|
758.2
|
|
|
$
|
771.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
11.6
|
%
|
|
7.7
|
%
|
|
4.8
|
%
|
|
(1.6)
|
%
|
|
16.8
|
%
|
|
16.3
|
%
|
|
11.3
|
%
|
|
11.4
|
%
|
|
11.9
|
%
|
|
9.4
|
%
|
Adjusted
Operating
Margin*
|
|
12.0
|
%
|
|
8.9
|
%
|
|
6.7
|
%
|
|
0.6
|
%
|
|
17.1
|
%
|
|
17.1
|
%
|
|
12.8
|
%
|
|
11.9
|
%
|
|
12.8
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
1.3
|
%
|
|
(13.6)
|
%
|
|
(2.9)
|
%
|
|
(11.2)
|
%
|
|
2.5
|
%
|
|
(4.8)
|
%
|
|
(8.9)
|
%
|
|
(9.3)
|
%
|
|
(1.5)
|
%
|
|
(9.6)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(13.0)
|
%
|
|
—
|
%
|
|
(0.9)
|
%
|
|
(0.4)
|
%
|
|
(4.6)
|
%
|
|
—
|
%
|
|
(2.1)
|
%
|
|
(0.1)
|
%
|
|
(6.2)
|
%
|
Foreign Currency
Impact
|
|
0.5
|
%
|
|
(1.0)
|
%
|
|
(0.6)
|
%
|
|
(1.2)
|
%
|
|
(0.8)
|
%
|
|
(0.2)
|
%
|
|
0.2
|
%
|
|
(0.6)
|
%
|
|
(0.2)
|
%
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
Net Sales
|
|
$
|
593.8
|
|
|
$
|
703.3
|
|
|
$
|
389.0
|
|
|
$
|
437.4
|
|
|
$
|
622.3
|
|
|
$
|
762.1
|
|
|
$
|
521.4
|
|
|
$
|
597.0
|
|
|
$
|
2,126.5
|
|
|
$
|
2,499.8
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
—
|
|
|
(25.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.0)
|
|
|
—
|
|
|
(5.6)
|
|
|
—
|
|
|
(52.6)
|
|
Adjusted Net
Sales*
|
|
$
|
593.8
|
|
|
$
|
678.3
|
|
|
$
|
389.0
|
|
|
$
|
437.4
|
|
|
$
|
622.3
|
|
|
$
|
740.1
|
|
|
$
|
521.4
|
|
|
$
|
591.4
|
|
|
$
|
2,126.5
|
|
|
$
|
2,447.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
7.4
|
%
|
|
13.5
|
%
|
|
2.4
|
%
|
|
(1.8)
|
%
|
|
14.3
|
%
|
|
16.8
|
%
|
|
12.3
|
%
|
|
12.4
|
%
|
|
9.7
|
%
|
|
11.6
|
%
|
Adjusted
Operating
Margin*
|
|
8.8
|
%
|
|
9.5
|
%
|
|
4.0
|
%
|
|
(0.2)
|
%
|
|
15.1
|
%
|
|
16.8
|
%
|
|
14.1
|
%
|
|
13.0
|
%
|
|
11.1
|
%
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth
|
|
(12.0)
|
%
|
|
(7.4)
|
%
|
|
(9.4)
|
%
|
|
(10.5)
|
%
|
|
(15.3)
|
%
|
|
0.4
|
%
|
|
(11.5)
|
%
|
|
(2.2)
|
%
|
|
(12.4)
|
%
|
|
(4.5)
|
%
|
Acquisitions
|
|
—
|
%
|
|
4.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.2
|
%
|
Businesses
Divested/to be Exited
|
|
(3.1)
|
%
|
|
(11.8)
|
%
|
|
—
|
%
|
|
(0.8)
|
%
|
|
(2.4)
|
%
|
|
(3.5)
|
%
|
|
(0.8)
|
%
|
|
(1.4)
|
%
|
|
(1.8)
|
%
|
|
(5.0)
|
%
|
Foreign Currency
Impact
|
|
(0.5)
|
%
|
|
(1.3)
|
%
|
|
(1.7)
|
%
|
|
(2.5)
|
%
|
|
(0.6)
|
%
|
|
(0.7)
|
%
|
|
(0.4)
|
%
|
|
(1.0)
|
%
|
|
(0.7)
|
%
|
|
(1.3)
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.60
|
|
|
$
|
1.19
|
|
|
$
|
3.41
|
|
|
$
|
4.75
|
|
Restructuring and
Related Costs
|
|
0.12
|
|
|
0.14
|
|
|
0.43
|
|
|
0.24
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
—
|
|
|
—
|
|
|
0.08
|
|
|
(0.70)
|
|
Loss on Sale of
Assets
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Net Loss (Income)
from Businesses Divested/to be Exited
|
|
—
|
|
|
0.02
|
|
|
0.01
|
|
|
(0.08)
|
|
Executive Transition
Costs
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
0.03
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.73
|
|
|
$
|
1.35
|
|
|
$
|
3.99
|
|
|
$
|
4.24
|
|
|
|
|
|
|
|
|
|
|
2020 ADJUSTED
ANNUAL GUIDANCE
|
|
Minimum
|
|
Maximum
|
2020 Diluted EPS
Annual Guidance
|
|
$
|
4.75
|
|
|
$
|
4.95
|
|
Restructuring and
Related Costs
|
|
0.55
|
|
|
0.55
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
0.08
|
|
|
0.08
|
|
Loss on Sale of
Assets
|
|
0.01
|
|
|
0.01
|
|
Net Loss from
Businesses Divested/to be Exited
|
|
0.01
|
|
|
0.01
|
|
Executive Transition
Costs
|
|
0.05
|
|
|
0.05
|
|
2020 Adjusted Diluted
EPS Annual Guidance
|
|
$
|
5.45
|
|
|
$
|
5.65
|
|
2020 ADJUSTED
FOURTH QUARTER GUIDANCE
|
|
Minimum
|
|
Maximum
|
2020 Diluted EPS
Fourth Quarter Guidance
|
|
$
|
1.34
|
|
|
$
|
1.54
|
|
Restructuring and
Related Costs
|
|
0.12
|
|
|
0.12
|
|
2020 Adjusted Diluted
EPS Fourth Quarter Guidance
|
|
$
|
1.46
|
|
|
$
|
1.66
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
GAAP Income (Loss)
from Operations
|
|
$
|
25.3
|
|
|
$
|
16.6
|
|
|
$
|
6.6
|
|
|
$
|
(2.3)
|
|
|
$
|
39.2
|
|
|
$
|
37.6
|
|
|
$
|
18.9
|
|
|
$
|
20.9
|
|
|
$
|
90.0
|
|
|
$
|
72.8
|
|
Restructuring and
Related Costs
|
|
0.8
|
|
|
2.5
|
|
|
2.4
|
|
|
3.1
|
|
|
0.7
|
|
|
0.8
|
|
|
2.4
|
|
|
0.9
|
|
|
6.3
|
|
|
7.3
|
|
Loss on Businesses
Divested and
Assets to be Exited
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Loss on Sale of
Assets
|
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Operating Loss from
Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Executive Transition
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Adjusted Income from
Operations
|
|
$
|
26.3
|
|
|
$
|
19.2
|
|
|
$
|
9.3
|
|
|
$
|
0.9
|
|
|
$
|
40.1
|
|
|
$
|
39.4
|
|
|
$
|
21.3
|
|
|
$
|
21.8
|
|
|
$
|
97.0
|
|
|
$
|
81.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
11.6%
|
|
|
7.7%
|
|
|
4.8%
|
|
|
(1.6)%
|
|
|
16.8%
|
|
|
16.3%
|
|
|
11.3%
|
|
|
11.4%
|
|
|
11.9%
|
|
|
9.4%
|
|
Adjusted Operating
Margin %
|
|
12.0%
|
|
|
8.9%
|
|
|
6.7%
|
|
|
0.6%
|
|
|
17.1%
|
|
|
17.1%
|
|
|
12.8%
|
|
|
11.9%
|
|
|
12.8%
|
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME
(LOSS) FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
GAAP Income (Loss)
from
Operations
|
|
$
|
44.0
|
|
|
$
|
95.2
|
|
|
$
|
9.3
|
|
|
$
|
(7.9)
|
|
|
$
|
88.7
|
|
|
$
|
128.2
|
|
|
$
|
63.9
|
|
|
$
|
73.9
|
|
|
$
|
205.9
|
|
|
$
|
289.4
|
|
Restructuring and
Related Costs
|
|
4.9
|
|
|
4.8
|
|
|
5.3
|
|
|
5.5
|
|
|
3.1
|
|
|
1.5
|
|
|
9.5
|
|
|
1.4
|
|
|
22.8
|
|
|
13.2
|
|
Purchase Accounting
and
Transaction Costs
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Loss (Gain) on
Businesses
Divested and Assets to be Exited
|
|
2.7
|
|
|
(32.7)
|
|
|
0.2
|
|
|
1.0
|
|
|
1.3
|
|
|
(4.7)
|
|
|
—
|
|
|
1.2
|
|
|
4.2
|
|
|
(35.2)
|
|
Loss (Gain) on Sale
of Assets
|
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
Operating (Income)
Loss from
Businesses Divested/to be Exited
|
|
—
|
|
|
(3.3)
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(1.1)
|
|
|
—
|
|
|
(0.3)
|
|
|
0.4
|
|
|
(4.7)
|
|
Executive Transition
Costs
|
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
1.8
|
|
|
1.8
|
|
Adjusted Income
(Loss) from
Operations
|
|
$
|
52.3
|
|
|
$
|
64.6
|
|
|
$
|
15.5
|
|
|
$
|
(1.0)
|
|
|
$
|
94.2
|
|
|
$
|
124.4
|
|
|
$
|
73.7
|
|
|
$
|
76.6
|
|
|
$
|
235.7
|
|
|
$
|
264.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
7.4%
|
|
|
13.5%
|
|
|
2.4%
|
|
|
(1.8)%
|
|
|
14.3%
|
|
|
16.8%
|
|
|
12.3%
|
|
|
12.4%
|
|
|
9.7%
|
|
|
11.6%
|
|
Adjusted Operating
Margin %
|
|
8.8%
|
|
|
9.5%
|
|
|
4.0%
|
|
|
(0.2)%
|
|
|
15.1%
|
|
|
16.8%
|
|
|
14.1%
|
|
|
13.0%
|
|
|
11.1%
|
|
|
10.8%
|
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Sep 26,
2020
|
|
Dec 28,
2019
|
Net Income
|
|
$
|
179.9
|
|
|
$
|
242.6
|
|
Interest
Expense
|
|
|
|
43.7
|
|
|
53.0
|
|
Interest
Income
|
|
|
|
(5.4)
|
|
|
(5.6)
|
|
Taxes
|
|
|
|
53.2
|
|
|
61.2
|
|
Depreciation and
Amortization
|
|
|
|
133.0
|
|
|
134.5
|
|
EBITDA
|
|
|
|
$
|
404.4
|
|
|
$
|
485.7
|
|
Restructuring and
Related Costs
|
|
|
|
40.9
|
|
|
31.3
|
|
Purchase Accounting
and Transactions Costs
|
|
|
|
—
|
|
|
0.1
|
|
Impairment and Exit
Related Costs
|
|
|
|
4.3
|
|
|
10.0
|
|
Executive Transition
Costs
|
|
|
|
2.2
|
|
|
2.2
|
|
Operating Loss
(Income) from Businesses Divested/to be Exited
|
|
|
|
1.0
|
|
|
(4.1)
|
|
Gain on Sale of
Assets
|
|
|
|
(3.2)
|
|
|
(3.8)
|
|
Loss (Gain) on
Divestiture of Businesses
|
|
|
|
0.4
|
|
|
(44.7)
|
|
Adjusted
EBITDA
|
|
|
|
$
|
450.0
|
|
|
$
|
476.7
|
|
|
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
|
230.6
|
|
|
$
|
0.6
|
|
Long-Term
Debt
|
|
|
|
840.2
|
|
|
1,136.9
|
|
Total Gross
Debt
|
|
|
|
$
|
1,070.8
|
|
|
$
|
1,137.5
|
|
Cash
|
|
|
|
(487.5)
|
|
|
(331.4)
|
|
Net
Debt
|
|
|
|
$
|
583.3
|
|
|
$
|
806.1
|
|
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
|
|
2.6
|
|
|
2.3
|
|
Gross Debt/Adjusted
EBITDA
|
|
|
|
2.4
|
|
|
2.4
|
|
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
|
|
1.4
|
|
|
1.7
|
|
Net Debt/Adjusted
EBITDA
|
|
|
|
1.3
|
|
|
1.7
|
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
Net Cash Provided by
Operating Activities
|
|
$
|
120.3
|
|
|
$
|
140.6
|
|
|
$
|
309.9
|
|
|
$
|
271.2
|
|
Additions to Property
Plant and Equipment
|
|
(9.3)
|
|
|
(21.1)
|
|
|
(29.7)
|
|
|
(77.3)
|
|
Free Cash
Flow
|
|
$
|
111.0
|
|
|
$
|
119.5
|
|
|
$
|
280.2
|
|
|
$
|
193.9
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit
Corporation
|
|
$
|
65.0
|
|
|
$
|
49.7
|
|
|
$
|
138.9
|
|
|
$
|
202.2
|
|
Loss (Gain) on
Businesses Divested and Impairments
|
|
—
|
|
|
0.2
|
|
|
4.2
|
|
|
(35.2)
|
|
Tax Effect from Loss
(Gain) on Businesses Divested
and Impairments
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
5.5
|
|
Adjusted Net Income
Attributable to Regal Beloit
Corporation1
|
|
$
|
65.0
|
|
|
$
|
49.9
|
|
|
$
|
142.2
|
|
|
$
|
172.5
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net
Income Attributable to Regal Beloit Corporation
|
|
170.8
|
%
|
|
239.5
|
%
|
|
197.0
|
%
|
|
112.4
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
|
Sep 26,
2020
|
|
Sep 28,
2019
|
Income before
Taxes
|
|
$
|
83.4
|
|
|
$
|
60.7
|
|
|
$
|
181.8
|
|
|
$
|
252.5
|
|
Provision for Income
Taxes
|
|
17.1
|
|
|
9.9
|
|
|
39.5
|
|
|
47.5
|
|
Effective Tax
Rate
|
|
20.5
|
%
|
|
16.3
|
%
|
|
21.7
|
%
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
83.4
|
|
|
$
|
60.7
|
|
|
$
|
181.8
|
|
|
$
|
252.5
|
|
Loss (Gain) on
Businesses Divested and Assets to be
Exited
|
|
—
|
|
|
0.2
|
|
|
4.2
|
|
|
(35.2)
|
|
Adjusted Income
before Taxes
|
|
$
|
83.4
|
|
|
$
|
60.9
|
|
|
$
|
186.0
|
|
|
$
|
217.3
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
17.1
|
|
|
$
|
9.9
|
|
|
$
|
39.5
|
|
|
$
|
47.5
|
|
Tax Effect from Loss
(Gain) on Businesses Divested and
Assets to be Exited
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
(5.5)
|
|
Non-deductible
Portion of Executive Transition Costs
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
17.1
|
|
|
$
|
9.9
|
|
|
$
|
39.9
|
|
|
$
|
42.0
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
20.5
|
%
|
|
16.3
|
%
|
|
21.5
|
%
|
|
19.3
|
%
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
September 26,
2020
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Sep 26,
2020
|
|
$
|
218.5
|
|
|
$
|
138.8
|
|
|
$
|
234.0
|
|
|
$
|
166.9
|
|
|
$
|
758.2
|
|
Impact from Foreign
Currency
Exchange Rates
|
|
(1.0)
|
|
|
0.9
|
|
|
1.8
|
|
|
(0.4)
|
|
|
1.3
|
|
Organic Sales Three
Months Ended Sep
26, 2020
|
|
$
|
217.5
|
|
|
$
|
139.7
|
|
|
$
|
235.8
|
|
|
$
|
166.5
|
|
|
$
|
759.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Sep 28,
2019
|
|
$
|
214.8
|
|
|
$
|
143.8
|
|
|
$
|
230.9
|
|
|
$
|
182.8
|
|
|
$
|
772.3
|
|
Net Sales from
Businesses Divested/to
be Exited
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(0.9)
|
|
Adjusted Net Sales
Three Months
Ended Sep 28, 2019
|
|
$
|
214.8
|
|
|
$
|
143.8
|
|
|
$
|
230.0
|
|
|
$
|
182.8
|
|
|
$
|
771.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Sep 26, 2020
Organic Sales Growth %
|
|
1.3
|
%
|
|
(2.9)
|
%
|
|
2.5
|
%
|
|
(8.9)
|
%
|
|
(1.5)
|
%
|
Three Months Ended
Sep 26, 2020 Net
Sales Growth %
|
|
1.7
|
%
|
|
(3.5)
|
%
|
|
1.3
|
%
|
|
(8.7)
|
%
|
|
(1.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
ORGANIC SALES
GROWTH
|
|
Nine Months
Ended
|
|
|
September 26,
2020
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Nine Months
Ended Sep 26,
2020
|
|
$
|
593.8
|
|
|
$
|
389.0
|
|
|
$
|
622.3
|
|
|
$
|
521.4
|
|
|
$
|
2,126.5
|
|
Impact from Foreign
Currency Exchange Rates
|
|
3.4
|
|
|
7.3
|
|
|
4.6
|
|
|
2.1
|
|
|
17.4
|
|
Organic Sales Nine
Months Ended Sep
26, 2020
|
|
$
|
597.2
|
|
|
$
|
396.3
|
|
|
$
|
626.9
|
|
|
$
|
523.5
|
|
|
$
|
2,143.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Nine Months
Ended Sep 28, 2019
|
|
$
|
703.3
|
|
|
$
|
437.4
|
|
|
$
|
762.1
|
|
|
$
|
597.0
|
|
|
$
|
2,499.8
|
|
Net Sales from
Businesses Divested/to
be Exited
|
|
(25.0)
|
|
|
—
|
|
|
(22.0)
|
|
|
(5.6)
|
|
|
(52.6)
|
|
Adjusted Net Sales
Nine Months Ended
Sep 28, 2019
|
|
$
|
678.3
|
|
|
$
|
437.4
|
|
|
$
|
740.1
|
|
|
$
|
591.4
|
|
|
$
|
2,447.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended Sep
26, 2020
Organic Sales Growth %
|
|
(12.0)
|
%
|
|
(9.4)
|
%
|
|
(15.3)
|
%
|
|
(11.5)
|
%
|
|
(12.4)
|
%
|
Nine Months Ended Sep
26, 2020 Net
Sales Growth %
|
|
(15.6)
|
%
|
|
(11.1)
|
%
|
|
(18.3)
|
%
|
|
(12.7)
|
%
|
|
(14.9)
|
%
|
The following tables outline by quarter and full year the 2019
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.
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Fiscal 2019 First
Quarter Schedule
for Ongoing Business
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended
March 30, 2019
|
|
$
|
242.2
|
|
|
$
|
138.1
|
|
|
$
|
263.3
|
|
|
$
|
210.2
|
|
|
$
|
853.8
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
(12.4)
|
|
|
—
|
|
|
(15.5)
|
|
|
(5.6)
|
|
|
(33.5)
|
|
Net Sales from
Ongoing Business
|
|
$
|
229.8
|
|
|
$
|
138.1
|
|
|
$
|
247.8
|
|
|
$
|
204.6
|
|
|
$
|
820.3
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Operations
Three Months Ended March 30, 2019
|
|
$
|
57.8
|
|
|
$
|
(4.3)
|
|
|
$
|
38.9
|
|
|
$
|
28.2
|
|
|
$
|
120.6
|
|
Restructuring and
Related Costs
|
|
1.2
|
|
|
0.9
|
|
|
0.1
|
|
|
0.1
|
|
|
2.3
|
|
Purchase Accounting
and Transaction
Costs
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
(Gain) Loss on
Businesses Divested
and Assets to be Exited
|
|
(34.6)
|
|
|
1.0
|
|
|
1.3
|
|
|
1.1
|
|
|
(31.2)
|
|
Income from
Operations of
Businesses Divested/to be Exited
|
|
(1.7)
|
|
|
—
|
|
|
(1.9)
|
|
|
(0.3)
|
|
|
(3.9)
|
|
Executive Transition
Costs
|
|
0.4
|
|
|
0.3
|
|
|
0.5
|
|
|
0.4
|
|
|
1.6
|
|
Adjusted Income
(Loss) from
Operations of Ongoing Business
|
|
$
|
23.2
|
|
|
$
|
(2.1)
|
|
|
$
|
38.9
|
|
|
$
|
29.5
|
|
|
$
|
89.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted
Operating Margin %
|
|
10.1
|
%
|
|
(1.5)
|
%
|
|
15.7
|
%
|
|
14.4
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019 Second
Quarter
Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended June
29, 2019
|
|
$
|
246.3
|
|
|
$
|
155.5
|
|
|
$
|
267.9
|
|
|
$
|
204.0
|
|
|
$
|
873.7
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
(12.6)
|
|
|
—
|
|
|
(5.6)
|
|
|
—
|
|
|
(18.2)
|
|
Net Sales from
Ongoing Business
|
|
$
|
233.7
|
|
|
$
|
155.5
|
|
|
$
|
262.3
|
|
|
$
|
204.0
|
|
|
$
|
855.5
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Operations
Three Months Ended June 29, 2019
|
|
$
|
20.8
|
|
|
$
|
(1.3)
|
|
|
$
|
51.7
|
|
|
$
|
24.8
|
|
|
$
|
96.0
|
|
Restructuring and
Related Costs
|
|
1.1
|
|
|
1.5
|
|
|
0.6
|
|
|
0.4
|
|
|
3.6
|
|
(Gain) Loss on
Businesses Divested
and Assets to be Exited
|
|
1.8
|
|
|
—
|
|
|
(6.1)
|
|
|
0.1
|
|
|
(4.2)
|
|
Income from
Operations of
Businesses Divested/to be Exited
|
|
(1.6)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(1.7)
|
|
Executive Transition
Costs
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Adjusted Income from
Operations of
Ongoing Business
|
|
$
|
22.2
|
|
|
$
|
0.2
|
|
|
$
|
46.1
|
|
|
$
|
25.3
|
|
|
$
|
93.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted
Operating Margin %
|
|
9.5
|
%
|
|
0.1
|
%
|
|
17.6
|
%
|
|
12.4
|
%
|
|
11.0
|
%
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Fiscal 2019 Third
Quarter Schedule
for Ongoing Business
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended
September 28, 2019
|
|
$
|
214.8
|
|
|
$
|
143.8
|
|
|
$
|
230.9
|
|
|
$
|
182.8
|
|
|
$
|
772.3
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(0.9)
|
|
Net Sales from
Ongoing Business
|
|
$
|
214.8
|
|
|
$
|
143.8
|
|
|
$
|
230.0
|
|
|
$
|
182.8
|
|
|
$
|
771.4
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Operations
Three Months Ended September 28,
2019
|
|
$
|
16.6
|
|
|
$
|
(2.3)
|
|
|
$
|
37.6
|
|
|
$
|
20.9
|
|
|
$
|
72.8
|
|
Restructuring and
Related Costs
|
|
2.5
|
|
|
3.1
|
|
|
0.8
|
|
|
0.9
|
|
|
7.3
|
|
Loss on Businesses
Divested and
Assets to be Exited
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Loss from Operations
of Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
Executive Transition
Costs
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Adjusted Income from
Operations of
Ongoing Business
|
|
$
|
19.2
|
|
|
$
|
0.9
|
|
|
$
|
39.4
|
|
|
$
|
21.8
|
|
|
$
|
81.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted
Operating Margin %
|
|
8.9
|
%
|
|
0.6
|
%
|
|
17.1
|
%
|
|
11.9
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019 Fourth
Quarter
Schedule for Ongoing Business
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended
December 28, 2019
|
|
$
|
202.0
|
|
|
$
|
138.0
|
|
|
$
|
206.4
|
|
|
$
|
191.8
|
|
|
$
|
738.2
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
|
Net Sales from
Ongoing Business
|
|
$
|
202.0
|
|
|
$
|
138.0
|
|
|
$
|
206.2
|
|
|
$
|
191.8
|
|
|
$
|
738.0
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Operations
Three Months Ended December 28,
2019
|
|
$
|
7.9
|
|
|
$
|
(1.4)
|
|
|
$
|
35.7
|
|
|
$
|
19.5
|
|
|
$
|
61.7
|
|
Restructuring and
Related Costs
|
|
7.0
|
|
|
2.9
|
|
|
2.7
|
|
|
5.5
|
|
|
18.1
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
(3.8)
|
|
Loss on Businesses
Divested and
Assets to be Exited
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.5
|
|
Loss from Operations
of Businesses
Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
Executive Transition
Costs
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
Adjusted Income from
Operations of
Ongoing Business
|
|
$
|
15.1
|
|
|
$
|
1.6
|
|
|
$
|
35.3
|
|
|
$
|
25.5
|
|
|
$
|
77.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted
Operating Margin %
|
|
7.5
|
%
|
|
1.2
|
%
|
|
17.1
|
%
|
|
13.3
|
%
|
|
10.5
|
%
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Fiscal 2019 Full
Year Schedule for
Ongoing Business
|
|
|
|
|
|
|
|
|
|
|
Net Sales Twelve
Months Ended
December 28, 2019
|
|
$
|
905.3
|
|
|
$
|
575.4
|
|
|
$
|
968.5
|
|
|
$
|
788.8
|
|
|
$
|
3,238.0
|
|
Net Sales from
Businesses
Divested/to be Exited
|
|
(25.0)
|
|
|
—
|
|
|
(22.2)
|
|
|
(5.6)
|
|
|
(52.8)
|
|
Net Sales from
Ongoing Business
|
|
$
|
880.3
|
|
|
$
|
575.4
|
|
|
$
|
946.3
|
|
|
$
|
783.2
|
|
|
$
|
3,185.2
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Operations
Twelve Months Ended December 28,
2019
|
|
$
|
103.1
|
|
|
$
|
(9.3)
|
|
|
$
|
163.9
|
|
|
$
|
93.4
|
|
|
$
|
351.1
|
|
Restructuring and
Related Costs
|
|
11.8
|
|
|
8.4
|
|
|
4.2
|
|
|
6.9
|
|
|
31.3
|
|
Purchase Accounting
and Transaction
Costs
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Gain on Sale of
Assets
|
|
—
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
(3.8)
|
|
(Gain) Loss on
Businesses Divested
and Assets to be Exited
|
|
(32.6)
|
|
|
1.0
|
|
|
(4.7)
|
|
|
1.6
|
|
|
(34.7)
|
|
Income from
Operations of
Businesses Divested/to be Exited
|
|
(3.3)
|
|
|
—
|
|
|
(0.5)
|
|
|
(0.3)
|
|
|
(4.1)
|
|
Executive Transition
Costs
|
|
0.6
|
|
|
0.5
|
|
|
0.6
|
|
|
0.5
|
|
|
2.2
|
|
Adjusted Income from
Operations of
Ongoing Business
|
|
$
|
79.7
|
|
|
$
|
0.6
|
|
|
$
|
159.7
|
|
|
$
|
102.1
|
|
|
$
|
342.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing Business
Adjusted
Operating Margin %
|
|
9.1
|
%
|
|
0.1
|
%
|
|
16.9
|
%
|
|
13.0
|
%
|
|
10.7
|
%
|
2019 ADJUSTED
DILUTED EARNINGS PER SHARE FOR
ONGOING BUSINESS
|
|
Three Months
Ended
|
|
Twelve
Months
Ended
Dec 28,
2019
|
|
|
Mar 30,
2019
|
|
Jun 29,
2019
|
|
Sep 28,
2019
|
|
Dec 28,
2019
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.43
|
|
|
$
|
1.52
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
|
$
|
5.55
|
|
Earnings Per Share
from Businesses Divested/to be Exited
|
|
(0.03)
|
|
|
(0.03)
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
Adjusted Diluted
Earnings Per Share for Ongoing Business
|
|
$
|
1.40
|
|
|
$
|
1.49
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
|
$
|
5.49
|
|
View original
content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-third-quarter-2020-financial-results-301162182.html
SOURCE Regal Beloit Corporation