BELOIT, Wis., Oct. 31, 2011 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today reported financial results for the
third quarter ended October 1, 2011.
Net sales of $736.9 million
increased 24.7% compared to $590.8
million for the third quarter 2010. Diluted earnings
per share for the third quarter 2011 were $1.13 compared to $1.14 for the third quarter 2010. Diluted
earnings per share for the third quarter 2011 included a gain on a
business divestiture and purchase accounting adjustments and
transaction costs related to the acquisition of the A.O. Smith
Electric Products Company (EPC), as detailed below:
|
|
|
Three Months
Ended
|
|
|
Oct. 1, 2011
|
|
GAAP Diluted Earnings Per
Share
|
$ 1.13
|
|
Gain on
Divestiture
|
(0.10)
|
|
EPC Purchase Accounting
Adjustments and Acquisition Costs
|
0.30
|
|
Adjusted Diluted Earnings
Per Share
|
$
1.33
|
|
|
|
|
|
"It was an exciting quarter for Regal Beloit," commented
Mark Gliebe, Chief Executive
Officer. "On top of strong overall performance from our
operations, we closed on the acquisition of EPC which is the
largest acquisition in the Company's history. Our Commercial
and Industrial, Mechanical, International and EPC businesses
performed exceptionally well in the quarter offsetting continued
weakness in residential HVAC sales. Additionally, our free
cash flow for the quarter was well in excess of net income.
Overall, we were pleased with our performance in the
quarter."
*This earnings release includes non-GAAP financial measures.
Schedules that reconcile these non-GAAP financial measures to the
most comparable GAAP figures are included with this earnings
release.
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|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
(Dollars in
millions)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
% Change
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
% Change
|
|
Net Sales
|
$
736.9
|
|
$
590.8
|
|
24.7%
|
|
$
2,081.3
|
|
$
1,682.3
|
|
23.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
$
667.5
|
|
$
527.8
|
|
26.5%
|
|
$
1,873.0
|
|
$
1,507.8
|
|
24.2%
|
|
Mechanical
segment
|
$
69.4
|
|
$
63.0
|
|
10.2%
|
|
$
208.3
|
|
$
174.5
|
|
19.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for the third quarter 2011 increased $146.1 million compared to the third quarter 2010
driven primarily by incremental sales from EPC since August 22, 2011 and the other businesses acquired
within the last twelve months (the "acquired businesses").
In the Electrical segment, net sales for the third quarter 2011
increased $139.7 million compared to
the third quarter 2010, including $144.5
million of incremental net sales from the acquired
businesses. North American residential HVAC net sales,
excluding net sales from the acquired businesses, decreased 20.3%
in the third quarter 2011 compared to the third quarter 2010, due
primarily to reduced federal tax incentives for high efficiency
products, the impact of the growth of R22 systems and continued
weakness in the housing market. North American commercial and
industrial net sales, excluding net sales from the acquired
businesses, increased 14.8% in the third quarter 2011 compared to
the third quarter 2010, driven primarily by improving economic
conditions, sales of new energy efficient products, pricing
initiatives to offset commodity inflation, and increased sales in
the generator business.
In the Mechanical segment, net sales for the third quarter 2011
increased $6.4 million or 10.2%
compared to the third quarter 2010. This increase was driven
primarily by improving demand in later cycle end markets.
Net sales to regions outside of the
United States were 35.9% of total net sales for the third
quarter 2011 compared to 31.0% of total net sales for the third
quarter 2010. Third quarter 2011 net sales of high efficiency
products were 15.4% of total net sales and increased 0.2% compared
to the third quarter 2010. The impact of foreign currency
exchange rates increased total net sales by 1.8% for the third
quarter 2011 compared to the third quarter 2010.
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GROSS PROFIT
|
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
|
Gross Profit
|
$
179,626
|
|
$
144,664
|
|
$
495,106
|
|
$
419,083
|
|
|
As a percentage of net
sales
|
24.4%
|
|
24.5%
|
|
23.8%
|
|
24.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
Electrical
segment
|
$
160,054
|
|
$
127,957
|
|
$
435,958
|
|
$
370,756
|
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|
As a percentage of
net sales
|
24.0%
|
|
24.2%
|
|
23.3%
|
|
24.6%
|
|
|
Mechanical
segment
|
$
19,572
|
|
$
16,707
|
|
$
59,148
|
|
$
48,327
|
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|
As a percentage of
net sales
|
28.2%
|
|
26.5%
|
|
28.4%
|
|
27.7%
|
|
|
|
|
|
|
|
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|
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|
Gross profit was $179.6 million,
or 24.4% of net sales, for the third quarter 2011 compared to
$144.7 million, or 24.5% of net
sales, for the third quarter 2010. Cost of sales for the third
quarter 2011 included expenses of $10.3
million related to EPC purchase accounting adjustments to
inventories. Excluding this expense, adjusted gross profit
was $189.9 million, or 25.8% of net
sales, for the third quarter 2011. Gross profit was
$495.1 million, or 23.8% of net
sales, for the nine months ended October 1,
2011 compared to $419.1
million, or 24.9% of net sales, for the nine months ended
October 2, 2010. Cost of sales
for the nine months ended October 1,
2011 included the $10.3
million of purchase accounting adjustments and $28.0 million of incremental warranty expenses
accrued in the second quarter 2011. Excluding these expenses,
adjusted gross profit was $533.4
million, or 25.6% of net sales, for the nine months ended
October 1, 2011.
OPERATING
EXPENSES
|
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
|
Operating Expenses
|
$
101,482
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|
$
74,781
|
|
$
298,033
|
|
$
219,636
|
|
|
As a percentage of net
sales
|
13.8%
|
|
12.7%
|
|
14.3%
|
|
13.1%
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|
|
|
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|
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|
Operating Expenses by
Segment:
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|
|
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|
Electrical
segment
|
$
90,680
|
|
$
65,919
|
|
$
266,158
|
|
$
193,541
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|
|
As a percentage of
net sales
|
13.6%
|
|
12.5%
|
|
14.2%
|
|
12.8%
|
|
|
Mechanical
segment
|
$
10,802
|
|
$
8,862
|
|
$
31,875
|
|
$
26,095
|
|
|
As a percentage of
net sales
|
15.6%
|
|
14.1%
|
|
15.3%
|
|
15.0%
|
|
|
|
|
|
|
|
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|
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INCOME FROM
OPERATIONS
|
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
|
Income from
Operations
|
$
78,144
|
|
$
69,883
|
|
$
197,073
|
|
$
199,447
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As a percentage of net
sales
|
10.6%
|
|
11.8%
|
|
9.5%
|
|
11.9%
|
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|
Income from Operations by
Segment:
|
|
|
|
|
|
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|
Electrical
segment
|
$
69,375
|
|
$
62,038
|
|
$
169,800
|
|
$
177,215
|
|
|
As a percentage of
net sales
|
10.4%
|
|
11.8%
|
|
9.1%
|
|
11.8%
|
|
|
Mechanical
segment
|
$
8,769
|
|
$
7,845
|
|
$
27,273
|
|
$
22,232
|
|
|
As a percentage of
net sales
|
12.6%
|
|
12.4%
|
|
13.1%
|
|
12.7%
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses for the third quarter 2011 increased
$26.7 million primarily due to
$21.9 million related to the acquired
businesses, and an incremental $5.6
million of acquisition-related expenses.
Net interest expense for the third quarter 2011 increased
$5.9 million compared to the third
quarter 2010 primarily due to interest on additional borrowings
incurred to finance the EPC acquisition. The effective tax
rate for the third quarter 2011 was 30.3%, consistent with the
third quarter 2010.
Net income attributable to Regal Beloit Corporation for the
third quarter 2011 was $45.7 million
compared to $44.7 million for the
third quarter 2010. Diluted earnings per share for the third
quarter 2011 were $1.13 compared to
$1.14 for the third quarter 2010.
Net cash provided by operating activities was $66.7 million for the third quarter 2011 as
compared to $48.9 million for the
third quarter 2010. Capital expenditures were $5.9 million for the third quarter 2011.
"As we look forward to the fourth quarter," commented Mr.
Gliebe, "we are expecting continued strength in our C&I,
Mechanical and India based
businesses. However, we also expect further weakness in
residential HVAC demand and a general slowdown in our China based businesses. Accordingly, we are
projecting fourth quarter adjusted diluted earnings per share of
$0.67 to $0.73, which excludes
purchase accounting adjustments related to the acquisition of
EPC, which we anticipate will be approximately $0.25 per share. I am pleased with the
performance and progress we are making in 2011," added Gliebe.
"We enter the fourth quarter with real momentum from the
largest acquisition in the Company's history. Despite
challenges in a few end markets, we continue to grow the Company,
improve our performance and position Regal Beloit for continued
success."
Regal Beloit will hold a
conference call pertaining to this news release at 10:00 AM CDT (11:00 AM
EDT) on Tuesday, November 1,
2011. To listen to the call and view the presentation slides
via the internet, please go http://www.regalbeloit.com/ or at:
http://www.videonewswire.com/event.asp?id=83183. Individuals
who would like to participate by phone should dial 866-524-3160,
referencing Regal Beloit. International callers should dial
412-317-6760, referencing Regal Beloit.
A telephone replay of the call will be available through
February 1, 2012, at 877-344-7529,
conference ID 10005959. International callers should call
412-317-0088 using the same conference ID. A webcast replay
will be available until February 1,
2012, and can be accessed at
http://www.regalbeloit.com/rbceventspresentations.htm or at
http://www.videonewswire.com/event.asp?id=83183.
Regal Beloit Corporation is a leading manufacturer of electric
motors, mechanical and electrical motion controls and power
generation products serving markets throughout the world.
Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing,
sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal Beloit's common stock is a
component of the S&P Mid Cap 400 Index and the Russell 2000
Index.
CAUTIONARY STATEMENT
The following is a cautionary statement made under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical facts, the statements contained in this press release
may be forward looking statements. Forward-looking statements
represent our management's judgment regarding future events.
In many cases, you can identify forward-looking statements by
terminology such as "may," "will," "plan," "expect,"
"anticipate," "estimate," "believe," or "continue" or the negative
of these terms or other similar words. Actual results and
events could differ materially and adversely from those contained
in the forward-looking statements due to a number of factors,
including: actions taken by our competitors and our ability to
effectively compete in the increasingly competitive global electric
motor, power generation and mechanical motion control industries;
our ability to develop new products based on technological
innovation and the marketplace acceptance of new and existing
products; fluctuations in commodity prices and raw material costs;
our dependence on significant customers; issues and costs arising
from the integration of acquired companies and businesses,
including the timing and impact of purchase accounting adjustments;
unanticipated costs or expenses we may incur related to product
warranty issues; our dependence on key suppliers and the potential
effects of supply disruptions; infringement of our intellectual
property by third parties, challenges to our intellectual property,
and claims of infringement by us of third party technologies;
increases in our overall debt levels as a result of acquisitions or
otherwise and our ability to repay principal and interest on our
outstanding debt; product liability and other litigation, or the
failure of our products to perform as anticipated, particularly in
high volume applications; economic changes in global markets where
we do business, such as reduced demand for the products we sell,
currency exchange rates, inflation rates, interest rates,
recession, foreign government policies and other external factors
that we cannot control; unanticipated liabilities of acquired
businesses; cyclical downturns affecting the global market for
capital goods; difficulties associated with managing foreign
operations; and other risks and uncertainties including but not
limited to those described in Item 1A-Risk Factors of the Company's
Annual Report on Form 10-K filed on March 2,
2011 and from time to time in our reports filed with U.S.
Securities and Exchange Commission. All subsequent written and oral
forward-looking statements attributable to us or to persons acting
on our behalf are expressly qualified in their entirety by the
applicable cautionary statements. The forward-looking
statements included in this presentation are made only as of their
respective dates, and we undertake no obligation to update these
statements to reflect subsequent events or circumstances.
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
Unaudited
Dollars in Thousands, Except
Dividends Declared and Per Share Data
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
|
Net Sales
|
$
736,885
|
|
$
590,801
|
|
$ 2,081,325
|
|
$ 1,682,300
|
|
|
Cost of Sales
|
557,259
|
|
446,137
|
|
1,586,219
|
|
1,263,217
|
|
|
Gross Profit
|
179,626
|
|
144,664
|
|
495,106
|
|
419,083
|
|
|
Operating Expenses
|
101,482
|
|
74,781
|
|
298,033
|
|
219,636
|
|
|
Income From
Operations
|
78,144
|
|
69,883
|
|
197,073
|
|
199,447
|
|
|
Interest Expense
|
10,482
|
|
4,817
|
|
20,387
|
|
14,358
|
|
|
Interest Income
|
450
|
|
645
|
|
1,186
|
|
1,800
|
|
|
Income Before Taxes &
Noncontrolling Interests
|
68,112
|
|
65,711
|
|
177,872
|
|
186,889
|
|
|
Provision For Income
Taxes
|
20,618
|
|
19,831
|
|
53,570
|
|
58,366
|
|
|
Net Income
|
47,494
|
|
45,880
|
|
124,302
|
|
128,523
|
|
|
Less: Net Income Attributable to
Noncontrolling
Interests, net of
tax
|
1,823
|
|
1,226
|
|
5,464
|
|
4,387
|
|
|
Net Income Attributable to
Regal Beloit Corporation
|
$
45,671
|
|
$
44,654
|
|
$
118,838
|
|
$
124,136
|
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.14
|
|
$
1.16
|
|
$
3.04
|
|
$
3.26
|
|
|
Assuming
Dilution
|
$
1.13
|
|
$
1.14
|
|
$
3.00
|
|
$
3.19
|
|
|
Cash Dividends
Declared
|
$
0.18
|
|
$
0.17
|
|
$
0.53
|
|
$
0.50
|
|
|
Weighted Average Number of
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
39,931,610
|
|
38,581,166
|
|
39,075,118
|
|
38,112,515
|
|
|
Assuming
Dilution
|
40,421,659
|
|
39,023,135
|
|
39,648,485
|
|
38,875,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
Unaudited
Dollars in Thousands
|
|
|
|
|
|
|
Mechanical
Segment
|
Electrical
Segment
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
October 1, 2011
|
|
October 2, 2010
|
|
October 1, 2011
|
|
October 2, 2010
|
|
|
Net Sales
|
$
69,435
|
|
$
63,012
|
|
$
667,450
|
|
$
527,789
|
|
|
Income from
Operations
|
8,769
|
|
7,845
|
|
69,375
|
|
62,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mechanical
Segment
|
Electrical
Segment
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
October 1,
2011
|
|
October 2,
2010
|
|
October 1,
2011
|
|
October 2,
2010
|
|
|
Net Sales
|
$
208,271
|
|
$
174,476
|
|
$
1,873,054
|
|
$
1,507,824
|
|
|
Income from
Operations
|
27,273
|
|
22,232
|
|
169,800
|
|
177,215
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
Dollars in Thousands
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
October 1, 2011
|
|
January 1, 2011
|
|
Current Assets:
|
|
|
|
|
Cash and
Investments
|
$
124,414
|
|
$
230,858
|
|
Trade Receivables, less
Allowances
of $9,331 in 2011 and
$10,637 in 2010
|
498,745
|
|
331,017
|
|
Inventories
|
626,857
|
|
390,587
|
|
Prepaid Expenses and Other
Current Assets
|
140,101
|
|
135,589
|
|
Total Current
Assets
|
1,390,117
|
|
1,088,051
|
|
|
|
|
|
|
Property, Plant, Equipment and
Noncurrent Assets
|
1,986,061
|
|
1,361,085
|
|
Total Assets
|
$ 3,376,178
|
|
$
2,449,136
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts
Payable
|
$
308,855
|
|
$
231,705
|
|
Other Accrued
Expenses
|
273,779
|
|
159,000
|
|
Current Maturities of
Debt
|
13,278
|
|
8,637
|
|
Total Current
Liabilities
|
595,912
|
|
399,342
|
|
|
|
|
|
|
Long-Term Debt
|
955,147
|
|
428,256
|
|
Other Noncurrent
Liabilities
|
267,605
|
|
224,376
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
1,517,434
|
|
1,361,960
|
|
Noncontrolling Interests
|
40,080
|
|
35,202
|
|
Total Equity
|
1,557,514
|
|
1,397,162
|
|
Total Liabilities and
Equity
|
$ 3,376,178
|
|
$
2,449,136
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
Unaudited
Dollars in Thousands
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
Oct. 1, 2011
|
|
Oct. 2, 2010
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
$
47,494
|
|
$
45,880
|
|
$ 124,302
|
|
$ 128,523
|
|
Adjustments to reconcile
net income to net cash provided
by operating activities
(net of acquisitions):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
26,084
|
|
18,390
|
|
69,710
|
|
54,289
|
|
Excess tax benefits from
stock-based compensation
|
(37)
|
|
(170)
|
|
(1,040)
|
|
(1,581)
|
|
(Gain) Loss on disposition
of assets
|
(6,101)
|
|
3,083
|
|
(5,613)
|
|
4,451
|
|
Stock-based compensation
expense
|
3,933
|
|
1,903
|
|
10,168
|
|
4,968
|
|
Change in assets and
liabilities
|
(4,683)
|
|
(20,226)
|
|
(21,261)
|
|
(42,063)
|
|
Net cash provided by
operating activities
|
66,690
|
|
48,860
|
|
176,266
|
|
148,587
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
(5,864)
|
|
(11,757)
|
|
(44,389)
|
|
(29,989)
|
|
Purchases of investment
securities
|
-
|
|
(125,292)
|
|
-
|
|
(313,169)
|
|
Sales of investment
securities
|
-
|
|
105,223
|
|
55,998
|
|
236,752
|
|
Business acquisitions, net
of cash acquired
|
(742,809)
|
|
(31,395)
|
|
(764,862)
|
|
(107,258)
|
|
Sale of assets
|
14,904
|
|
41
|
|
15,113
|
|
108
|
|
Net cash used in investing
activities
|
(733,769)
|
|
(63,180)
|
|
(738,140)
|
|
(213,556)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Repayments of convertible
debt
|
-
|
|
(470)
|
|
-
|
|
(39,198)
|
|
Net borrowings
(repayments) under revolving credit facility
|
-
|
|
-
|
|
|
|
(2,863)
|
|
Borrowings under revolving
credit facility
|
200,000
|
|
|
|
200,000
|
|
|
|
Repayments under revolving
credit facility
|
(172,000)
|
|
|
|
(172,000)
|
|
|
|
Proceeds from short-term
borrowings
|
938
|
|
-
|
|
21,446
|
|
-
|
|
Repayments of short-term
borrowings
|
(1,874)
|
|
(406)
|
|
(17,264)
|
|
(9,139)
|
|
Proceeds from long-term
borrowings
|
500,000
|
|
-
|
|
500,000
|
|
-
|
|
Payments of long-term
debt
|
(27)
|
|
(35)
|
|
(115)
|
|
(138)
|
|
Dividends paid to
shareholders
|
(6,962)
|
|
(6,556)
|
|
(20,092)
|
|
(18,534)
|
|
Proceeds from the exercise
of stock options
|
100
|
|
556
|
|
1,856
|
|
3,545
|
|
Excess tax benefits from
stock-based compensation
|
37
|
|
170
|
|
1,040
|
|
1,581
|
|
Financing fees
paid
|
(902)
|
|
-
|
|
(2,776)
|
|
-
|
|
Net cash provided by (used
in) financing activities
|
519,310
|
|
(6,741)
|
|
512,095
|
|
(64,746)
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON
CASH
|
(3,165)
|
|
2,639
|
|
(338)
|
|
1,373
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and
cash equivalents
|
(150,934)
|
|
(18,422)
|
|
(50,117)
|
|
(128,342)
|
|
Cash and cash equivalents
at beginning of period
|
275,348
|
|
152,502
|
|
174,531
|
|
262,422
|
|
Cash and cash equivalents
at end of period
|
$ 124,414
|
|
$ 134,080
|
|
$ 124,414
|
|
$ 134,080
|
|
|
|
|
|
|
|
|
|
NON-GAAP MEASURES
|
|
Unaudited
|
|
Dollars in Thousands, Except Per
Share Data
|
|
|
|
Regal Beloit Corporation
prepares financial statements in accordance with accounting
principles generally accepted in the United States (GAAP).
Regal Beloit Corporation also discloses adjusted diluted
earnings per share (EPS), adjusted gross profit, adjusted gross
profit as a percentage of net sales and free cash flow, which are
non-GAAP financial measures. Management uses these measures in its
internal performance reporting and for reports to the Board of
Directors. Regal Beloit Corporation also discloses these
measures in its quarterly earnings releases, on investor conference
calls, and in investor presentations and similar events. Management
believes that adjusted diluted EPS, adjusted gross profit, adjusted
gross profit as a percentage of net sales and free cash flow are
useful measures for providing investors with additional insight
into the Company's operating performance. This additional
information is not meant to be considered in isolation or as a
substitute for Regal Beloit Corporation's results of operations
prepared and presented in accordance with GAAP.
|
|
|
|
Adjusted diluted earnings per
share, adjusted gross profit and adjusted gross profit as a
percentage of net sales exclude the effects of certain items that
are not comparable from one period to the next. Free cash
flow is defined as net cash provided by operating activities less
additions to property, plant and equipment.
|
|
|
|
Three
Months
Ended
|
|
Nine
Months
Ended
|
|
|
Oct. 1,
2011
|
|
Oct. 1,
2011
|
|
GAAP Diluted Earnings Per
Share
|
$
1.13
|
|
$
3.00
|
|
Gain on Divestiture
|
(0.10)
|
|
(0.10)
|
|
EPC Purchase Accounting
Adjustments and Acquisition Costs
|
0.30
|
|
0.30
|
|
Incremental Warranty
Accrual
|
-
|
|
0.44
|
|
Adjusted Diluted Earnings Per
Share
|
$
1.33
|
|
$
3.64
|
|
|
|
|
|
|
GAAP Gross Profit
|
$
179,626
|
|
$ 495,106
|
|
EPC Purchase Accounting
Adjustment
|
10,305
|
|
10,305
|
|
Incremental Warranty
Accrual
|
-
|
|
28,000
|
|
Adjusted Gross Profit
|
$
189,931
|
|
$ 533,411
|
|
Adjusted Gross Profit as a
Percentage of Net Sales
|
25.8%
|
|
25.6%
|
|
|
|
|
|
|
GAAP Net Cash Provided by
Operating Activities
|
$
66,690
|
|
$ 176,266
|
|
Additions to Property Plant and
Equipment
|
(5,864)
|
|
(44,389)
|
|
Free Cash Flow
|
$
60,826
|
|
$ 131,877
|
|
|
|
|
|
SOURCE Regal Beloit Corporation