BELOIT, Wis., May 4, 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 first quarter 2020 GAAP diluted
earnings per share of $1.12 compared
to $1.99 a year ago. First quarter
2020 adjusted diluted earnings per share* were $1.31 compared to $1.40 a year ago.
Key financial results for the first quarter 2020 included:
- Total net sales of $734.2
decreased 14.0% from the prior year. Excluding the negative impacts
of 0.7% from foreign currency and 3.5% from businesses to be
divested/exited, sales declined 9.8% on an organic basis.
- Income from operations was $70.0
million or 9.5% of net sales. Adjusted income from
operations declined $10.3 million
from a year ago, to $79.2 million.
Adjusted operating income margin of 10.8% was relatively flat vs.
the prior year's 10.9%.
- Adjusted income from operations delevered at 12.0%.
- Net cash provided by operating activities was $102.7 million and capital expenditures totaled
$10.9 million, resulting in free cash
flow of $91.8 million.
- Purchased 315,072 shares for a total of $25.0 million. The Company has suspended its
share buyback program at this time.
First quarter 2020 segment results versus the prior year first
quarter:
- Commercial Systems segment net sales were $199.4 million, a decrease of 17.7%. Businesses
divested/to be exited had a negative 4.5% impact, and foreign
currency had a negative 0.7% impact. The result was a negative
organic sales growth rate of 12.5% driven by COVID-related
production delays in the pool pump business, headwinds in
commercial HVAC markets and COVID-related pressure on Europe air moving markets, combined with
proactive account pruning. Partially offsetting these headwinds
were share gains in the China
motors business serving the agriculture and air moving markets.
During the quarter, COVID-related production delays at the
Company's Changzhou, China factory
limited its ability to meet customer demand for pool pumps, but
that facility has resumed operations and is seeing positive
momentum in April. Operating margin was 6.3%. After net adjustments
of $3.0 million, adjusted operating
margin was 7.8% of adjusted net sales.
- Industrial Systems segment net sales were $129.6 million, a decrease of 6.2%. Foreign
currency had a negative 1.7% impact. The result was a negative
organic sales growth rate of 4.5% driven by COVID-related headwinds
across the business, but especially impacting sales into the power
generation and industrial end markets, combined with proactive
account pruning, partially offset by share gains in the data center
market. Operating margin was negative 0.4%. After net adjustments
of $1.5 million, adjusted operating
margin was 0.8% of adjusted net sales.
- Climate Solutions segment net sales were $210.1 million, a decrease of 20.2%. The
businesses divested/to be exited had a negative 5.0% impact, and
foreign currency had a negative 0.4% impact. The result was a
negative organic sales growth rate of 14.8% driven by mild weather,
in addition to rising headwinds related to the COVID-19 pandemic,
and ongoing proactive account pruning efforts. Operating margin was
14.0%. After net adjustments of $2.5
million, adjusted operating margin was 15.2% of adjusted net
sales.
- Power Transmission Solutions segment net sales were
$195.1 million, a decrease of 7.2%.
The businesses divested/to be exited had a negative 2.5% impact,
and foreign currency had a negative 0.5% impact. The result was a
negative organic sales growth rate of 4.2% driven by significant
COVID-related declines in oil & gas end markets, in addition to
ongoing proactive account pruning activities in the segment. On the
positive side, and partially offsetting these headwinds, were share
gains in alternative energy markets. Operating margin was 14.6%.
After net adjustments of $2.2
million, adjusted operating margin was 15.7% of adjusted net
sales.
*This earnings release includes non-GAAP financial measures.
Descriptions of why we believe these non-GAAP measures are useful
and reconciliations of these non-GAAP financial measures to the
most directly comparable GAAP measures are included with this
earnings release.
Summarizing Regal's first quarter 2020 performance, CEO
Louis Pinkham commented, "In a
quarter that started to face unprecedented commercial and personal
challenges posed by the coronavirus, the Regal team delivered
strong execution. I am extremely proud of their hard work, their
resourcefulness, their adaptability, and their sense of duty, as
they served and supported our customers with Regal's essential
products."
Mr. Pinkham went on to comment, "As I look across our
segments, both PTS and Industrial posted higher year-over-year
operating profit and margin gains, despite confronting external end
market headwinds that weighed on sales. Climate saw its sales down
nearly 15% on an organic basis - due in large part to historically
warm weather and to COVID-19 - but still managed to limit its
operating margin decline to under 50 basis points, delevering at a
very respectable 18.3%. Our Commercial business had a tougher first
quarter - largely as a result of COVID-19 impacts - but still
managed to hold deleverage at 25.3%, nicely below typical historic
rates in this segment."
COVID-19 Pandemic
The coronavirus disease 2019 ("COVID-19") evolved during the
first quarter of 2020 from its epicenter in China into a global pandemic, which has
resulted in a severe global health crisis that drove a dramatic
slowdown in global economic and social activity. COVID-19 started
to impact Regal's business in China early in the first quarter, and as the
virus spread and the quarter progressed, the virus increasingly
impacted the Company's business on a global scale.
In the face of this global crisis, management's first priority
has been the health and safety of Regal associates. In response,
Regal has implemented a host of measures to help its associates
stay safe - such as practicing social distancing, making face masks
mandatory across its sites globally, having associates work from
home where possible, and conducting temperature checks, at all
manufacturing facilities globally, as permitted by local laws. In
addition, Regal's senior leaders of the Company's organization are
meeting at least daily to monitor, and react to, any developments
that arise related to the virus, and to the global Regal team's
health and safety.
Regal is an essential business, and as such has worked to ensure
that its global manufacturing operations have remained operational.
Regal's products are essential components in a range of
applications used in the medical, food & beverage,
pharmaceutical, transportation, and data communications industries,
among many others. At present, the Company's global manufacturing
operations are largely operational, with plant closures, or plants
running at reduced rates, in India
and Mexico.
During the quarter, Regal took actions to bolster its already
very healthy balance sheet. As of the end of the first quarter, the
Company's net debt was $760.4
million, and the Company's net debt to adjusted EBITDA ratio
was 1.6, well within its comfort zone. In addition, on April 1st, the Company drew down $254.8 million under its revolving credit
facility. Combined with prior borrowings, the Company has now
borrowed the full $500.0 million
under the Company's revolver. After drawing down the full revolver,
and as of May 1, 2020, the Company
had cash and cash equivalents on hand of approximately $890.0 million.
As part of Regal's ongoing response to the impacts of COVID-19,
the Company has taken additional cost actions, on top of the
substantial restructuring, supply chain, and 80/20 reorganization
efforts that were already underway prior to the existence of the
virus. These additional actions include reducing discretionary
spending across the organization, deferring new hires outside of
mission critical roles, and implementing a series of compensation
reductions and furloughs on a global basis. Regal will consider
making more permanent changes to its cost structure as the long-
and short-term implications of COVID-19 continue to evolve and
become more known.
Regal plans to provide additional details on how COVID-19 is
impacting its business, and how it is reacting in response, on its
first quarter earnings conference call.
2020 Outlook
In light of the COVID-19 pandemic, which creates significant
uncertainty around, among other factors, the demand environment for
the Company's products in the near- and mid-term, the Company is
withdrawing its previously communicated guidance for the full year
2020 for revenue growth and adjusted EPS. The Company will be
vigilantly monitoring the impacts of COVID-19 on the Company's end
markets, manufacturing footprint, and supply chain, and will seek
to re-introduce guidance as soon as the Company believes it can
provide a forecast that is useful for the investment community.
Conference Call
Regal will hold a conference call to discuss this earnings
release at 9:00 AM CDT (10:00 AM EDT) on Tuesday,
May 5, 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
6736255# 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 10140340#. Both will be accessible until August 5, 2020.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a global leader in the
engineering and manufacturing of electric motors and controls,
power generation products and power transmission products serving
customers throughout the world. We create a better tomorrow by
developing and responsibly producing energy-efficient products and
systems.
Our company is comprised of 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; 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. 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
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
Net Sales
|
|
$
|
734.2
|
|
|
$
|
853.8
|
|
Cost of
Sales
|
|
530.9
|
|
|
619.2
|
|
Gross
Profit
|
|
203.3
|
|
|
234.6
|
|
Operating
Expenses
|
|
131.8
|
|
|
104.0
|
|
Asset
Impairments
|
|
1.5
|
|
|
10.0
|
|
Total Operating
Expenses
|
|
133.3
|
|
|
114.0
|
|
Income from
Operations
|
|
70.0
|
|
|
120.6
|
|
Other (Income)
Expenses, net
|
|
(1.1)
|
|
|
0.1
|
|
Interest
Expense
|
|
11.6
|
|
|
13.6
|
|
Interest
Income
|
|
1.1
|
|
|
1.1
|
|
Income before
Taxes
|
|
60.6
|
|
|
108.0
|
|
Provision for Income
Taxes
|
|
13.9
|
|
|
21.2
|
|
Net Income
|
|
46.7
|
|
|
86.8
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
0.9
|
|
|
0.9
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
45.8
|
|
|
$
|
85.9
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
Basic
|
|
$
|
1.13
|
|
|
$
|
2.01
|
|
Assuming
Dilution
|
|
$
|
1.12
|
|
|
$
|
1.99
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.30
|
|
|
$
|
0.28
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
Basic
|
|
40.6
|
|
|
42.8
|
|
Assuming
Dilution
|
|
40.8
|
|
|
43.1
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Mar 28,
2020
|
|
Dec 28,
2019
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
604.5
|
|
|
$
|
331.4
|
|
Trade Receivables,
less Allowances
of $12.1 Million in 2020 and $9.7 Million in
2019
|
|
464.0
|
|
|
461.4
|
|
Inventories
|
|
655.3
|
|
|
678.4
|
|
Prepaid Expenses and
Other Current Assets
|
|
110.6
|
|
|
136.5
|
|
Total Current
Assets
|
|
1,834.4
|
|
|
1,607.7
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,751.5
|
|
|
2,823.0
|
|
Total
Assets
|
|
$
|
4,585.9
|
|
|
$
|
4,430.7
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
340.3
|
|
|
$
|
337.0
|
|
Other Accrued
Expenses
|
|
239.4
|
|
|
222.9
|
|
Current Maturities of
Debt
|
|
0.6
|
|
|
0.6
|
|
Total Current
Liabilities
|
|
580.3
|
|
|
560.5
|
|
|
|
|
|
|
Long-Term
Debt
|
|
1,364.3
|
|
|
1,136.9
|
|
Other Noncurrent
Liabilities
|
|
341.2
|
|
|
352.9
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,270.6
|
|
|
2,351.1
|
|
Noncontrolling
Interests
|
|
29.5
|
|
|
29.3
|
|
Total
Equity
|
|
2,300.1
|
|
|
2,380.4
|
|
Total Liabilities and
Equity
|
|
$
|
4,585.9
|
|
|
$
|
4,430.7
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net Income
|
|
$
|
46.7
|
|
|
$
|
86.8
|
|
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
|
|
32.6
|
|
|
34.3
|
|
Loss on Disposal of
Assets
|
|
0.7
|
|
|
0.1
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
1.4
|
|
|
(31.2)
|
|
Share-Based
Compensation Expense
|
|
2.7
|
|
|
4.3
|
|
Change in Operating
Assets and Liabilities
|
|
18.6
|
|
|
(76.0)
|
|
Net Cash Provided by
Operating Activities
|
|
102.7
|
|
|
18.3
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(10.9)
|
|
|
(20.2)
|
|
Proceeds Received
from Sales of Property, Plant and Equipment
|
|
2.7
|
|
|
—
|
|
Proceeds Received
from Disposal of Businesses
|
|
0.3
|
|
|
119.4
|
|
Net Cash (Used in)
Provided by Investing Activities
|
|
(7.9)
|
|
|
99.2
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Net Borrowings
(Repayments) Under Revolving Credit Facility
|
|
227.1
|
|
|
(69.6)
|
|
Net Borrowings from
Short-Term Borrowings
|
|
—
|
|
|
1.6
|
|
Repayments of
Long-Term Debt
|
|
(0.1)
|
|
|
(24.1)
|
|
Dividends Paid to
Shareholders
|
|
(12.2)
|
|
|
(12.0)
|
|
Repurchase of Common
Stock
|
|
(25.0)
|
|
|
—
|
|
Distributions to
Noncontrolling Interest
|
|
—
|
|
|
(0.3)
|
|
Shares Surrendered
for Taxes
|
|
(1.1)
|
|
|
(1.6)
|
|
Net Cash Provided by
(Used in) Financing Activities
|
|
188.7
|
|
|
(106.0)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
(10.4)
|
|
|
4.2
|
|
Net Increase in Cash
and Cash Equivalents
|
|
273.1
|
|
|
15.7
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
331.4
|
|
|
248.6
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
604.5
|
|
|
$
|
264.3
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
Net Sales
|
|
$
|
199.4
|
|
|
$
|
242.2
|
|
|
$
|
129.6
|
|
|
$
|
138.1
|
|
|
$
|
210.1
|
|
|
$
|
263.3
|
|
|
$
|
195.1
|
|
|
$
|
210.2
|
|
|
$
|
734.2
|
|
|
$
|
853.8
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
—
|
|
|
(12.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.5)
|
|
|
—
|
|
|
(5.6)
|
|
|
—
|
|
|
(33.5)
|
|
Adjusted Net
Sales*
|
|
$
|
199.4
|
|
|
$
|
229.8
|
|
|
$
|
129.6
|
|
|
$
|
138.1
|
|
|
$
|
210.1
|
|
|
$
|
247.8
|
|
|
$
|
195.1
|
|
|
$
|
204.6
|
|
|
$
|
734.2
|
|
|
$
|
820.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
6.3
|
%
|
|
23.9
|
%
|
|
(0.4)
|
%
|
|
(3.1)
|
%
|
|
14.0
|
%
|
|
14.8
|
%
|
|
14.6
|
%
|
|
13.4
|
%
|
|
9.5
|
%
|
|
14.1
|
%
|
Adjusted Operating
Margin*
|
|
7.8
|
%
|
|
10.1
|
%
|
|
0.8
|
%
|
|
(1.5)
|
%
|
|
15.2
|
%
|
|
15.7
|
%
|
|
15.7
|
%
|
|
14.4
|
%
|
|
10.8
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
(12.5)
|
%
|
|
(2.9)
|
%
|
|
(4.5)
|
%
|
|
(12.1)
|
%
|
|
(14.8)
|
%
|
|
3.6
|
%
|
|
(4.2)
|
%
|
|
3.4
|
%
|
|
(9.8)
|
%
|
|
(1.2)
|
%
|
Acquisitions
|
|
—
|
%
|
|
15.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.9
|
%
|
Businesses
Divested/to be Exited
|
|
(4.5)
|
%
|
|
(13.9)
|
%
|
|
—
|
%
|
|
(0.8)
|
%
|
|
(5.0)
|
%
|
|
(1.1)
|
%
|
|
(2.5)
|
%
|
|
0.6
|
%
|
|
(3.5)
|
%
|
|
(3.9)
|
%
|
Foreign Currency
Impact
|
|
(0.7)
|
%
|
|
(1.2)
|
%
|
|
(1.7)
|
%
|
|
(3.4)
|
%
|
|
(0.4)
|
%
|
|
(1.2)
|
%
|
|
(0.5)
|
%
|
|
(1.4)
|
%
|
|
(0.7)
|
%
|
|
(1.6)
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.12
|
|
|
$
|
1.99
|
|
Restructuring and
Related Costs
|
|
0.10
|
|
|
0.04
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
0.03
|
|
|
(0.59)
|
|
Net Loss (Income)
from Businesses Divested/to be Exited
|
|
0.01
|
|
|
(0.07)
|
|
Executive Transition
Costs
|
|
0.05
|
|
|
0.03
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.31
|
|
|
$
|
1.40
|
|
|
|
|
|
|
ADJUSTED INCOME
(LOSS) FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
GAAP Income (Loss)
from Operations
|
|
$
|
12.5
|
|
|
$
|
57.8
|
|
|
$
|
(0.5)
|
|
|
$
|
(4.3)
|
|
|
$
|
29.5
|
|
|
$
|
38.9
|
|
|
$
|
28.5
|
|
|
$
|
28.2
|
|
|
$
|
70.0
|
|
|
$
|
120.6
|
|
Restructuring and
Related Costs
|
|
1.8
|
|
|
1.2
|
|
|
0.9
|
|
|
0.9
|
|
|
1.1
|
|
|
0.1
|
|
|
1.8
|
|
|
0.1
|
|
|
5.6
|
|
|
2.3
|
|
Purchase Accounting
and Transaction Costs
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
0.7
|
|
|
(34.6)
|
|
|
0.2
|
|
|
1.0
|
|
|
0.5
|
|
|
1.3
|
|
|
—
|
|
|
1.1
|
|
|
1.4
|
|
|
(31.2)
|
|
Operating Loss
(Income) from Businesses Divested/to be Exited
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(1.9)
|
|
|
—
|
|
|
(0.3)
|
|
|
0.4
|
|
|
(3.9)
|
|
Executive Transition
Costs
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
0.3
|
|
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
1.8
|
|
|
1.6
|
|
Adjusted Income
(Loss) from Operations
|
|
$
|
15.5
|
|
|
$
|
23.2
|
|
|
$
|
1.0
|
|
|
$
|
(2.1)
|
|
|
$
|
32.0
|
|
|
$
|
38.9
|
|
|
$
|
30.7
|
|
|
$
|
29.5
|
|
|
$
|
79.2
|
|
|
$
|
89.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
6.3%
|
|
23.9%
|
|
(0.4)%
|
|
(3.1)%
|
|
14.0%
|
|
14.8%
|
|
14.6%
|
|
13.4%
|
|
9.5%
|
|
14.1%
|
Adjusted Operating
Margin %
|
|
7.8%
|
|
10.1%
|
|
0.8%
|
|
(1.5)%
|
|
15.2%
|
|
15.7%
|
|
15.7%
|
|
14.4%
|
|
10.8%
|
|
10.9%
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Mar 28,
2020
|
|
Dec 28,
2019
|
Net Income
|
|
$
|
202.5
|
|
|
$
|
242.6
|
|
Interest
Expense
|
|
|
|
51.0
|
|
|
53.0
|
|
Interest
Income
|
|
|
|
(5.6)
|
|
|
(5.6)
|
|
Taxes
|
|
|
|
53.9
|
|
|
61.2
|
|
Depreciation and
Amortization
|
|
|
|
132.8
|
|
|
134.5
|
|
EBITDA
|
|
|
|
$
|
434.6
|
|
|
$
|
485.7
|
|
Restructuring and
Related Costs
|
|
|
|
34.6
|
|
|
31.3
|
|
Purchase Accounting
and Transactions Costs
|
|
|
|
—
|
|
|
0.1
|
|
Impairment and Exit
Related Costs
|
|
|
|
1.5
|
|
|
10.0
|
|
Executive Transition
Costs
|
|
|
|
2.4
|
|
|
2.2
|
|
Operating Loss
(Income) from Businesses Divested/to be Exited
|
|
|
|
0.2
|
|
|
(4.1)
|
|
Gain on Sale of
Assets
|
|
|
|
(3.8)
|
|
|
(3.8)
|
|
Gain on Divestiture
of Businesses
|
|
|
|
(3.6)
|
|
|
(44.7)
|
|
Adjusted
EBITDA
|
|
|
|
$
|
465.9
|
|
|
$
|
476.7
|
|
|
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
Long-Term
Debt
|
|
|
|
1,364.3
|
|
|
1,136.9
|
|
Total Gross
Debt
|
|
|
|
$
|
1,364.9
|
|
|
$
|
1,137.5
|
|
Cash
|
|
|
|
(604.5)
|
|
|
(331.4)
|
|
Net
Debt
|
|
|
|
$
|
760.4
|
|
|
$
|
806.1
|
|
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
|
|
3.1
|
|
|
2.3
|
|
Gross Debt/Adjusted
EBITDA
|
|
|
|
2.9
|
|
|
2.4
|
|
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
|
|
1.7
|
|
|
1.7
|
|
Net Debt/Adjusted
EBITDA
|
|
|
|
1.6
|
|
|
1.7
|
|
OPERATING LEVERAGE
- TOTAL REGAL
|
|
Three Months
Ended
|
(Dollars in
Millions)
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Change
|
GAAP Income from
Operations
|
|
$
|
70.0
|
|
|
$
|
120.6
|
|
|
$
|
(50.6)
|
|
Adjusted Income from
Operations
|
|
$
|
79.2
|
|
|
$
|
89.5
|
|
|
$
|
(10.3)
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
734.2
|
|
|
$
|
853.8
|
|
|
$
|
(119.6)
|
|
Adjusted Net
Sales
|
|
$
|
734.2
|
|
|
$
|
820.3
|
|
|
$
|
(86.1)
|
|
|
|
|
|
|
|
|
GAAP Operating
Leverage
|
|
|
|
|
|
42.3
|
%
|
Adjusted Operating
Leverage
|
|
|
|
|
|
12.0
|
%
|
OPERATING LEVERAGE
- COMMERCIAL SYSTEMS
|
|
Three Months
Ended
|
(Dollars in
Millions)
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Change
|
GAAP Income from
Operations
|
|
$
|
12.5
|
|
|
$
|
57.8
|
|
|
$
|
(45.3)
|
|
Adjusted Income from
Operations
|
|
$
|
15.5
|
|
|
$
|
23.2
|
|
|
$
|
(7.7)
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
199.4
|
|
|
$
|
242.2
|
|
|
$
|
(42.8)
|
|
Adjusted Net
Sales
|
|
$
|
199.4
|
|
|
$
|
229.8
|
|
|
$
|
(30.4)
|
|
|
|
|
|
|
|
|
GAAP Operating
Leverage
|
|
|
|
|
|
105.8
|
%
|
Adjusted Operating
Leverage
|
|
|
|
|
|
25.3
|
%
|
OPERATING LEVERAGE
- CLIMATE SOLUTIONS
|
|
Three Months
Ended
|
(Dollars in
Millions)
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
|
Change
|
GAAP Income from
Operations
|
|
$
|
29.5
|
|
|
$
|
38.9
|
|
|
$
|
(9.4)
|
|
Adjusted Income from
Operations
|
|
$
|
32.0
|
|
|
$
|
38.9
|
|
|
$
|
(6.9)
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
210.1
|
|
|
$
|
263.3
|
|
|
$
|
(53.2)
|
|
Adjusted Net
Sales
|
|
$
|
210.1
|
|
|
$
|
247.8
|
|
|
$
|
(37.7)
|
|
|
|
|
|
|
|
|
GAAP Operating
Leverage
|
|
|
|
|
|
17.7
|
%
|
Adjusted Operating
Leverage
|
|
|
|
|
|
18.3
|
%
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
|
March 28,
2020
|
|
March 30,
2019
|
Net Cash Provided by
Operating Activities
|
|
$
|
102.7
|
|
|
$
|
18.3
|
|
Additions to Property
Plant and Equipment
|
|
(10.9)
|
|
|
(20.2)
|
|
Free Cash
Flow
|
|
$
|
91.8
|
|
|
$
|
(1.9)
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
45.8
|
|
|
$
|
85.9
|
|
Loss (Gain) on
Businesses Divested and Impairments
|
|
1.4
|
|
|
(31.2)
|
|
Tax Effect from Loss
(Gain) on Businesses Divested and Impairments
|
|
(0.3)
|
|
|
5.3
|
|
Adjusted Net Income
Attributable to Regal Beloit Corporation1
|
|
$
|
46.9
|
|
|
$
|
60.0
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable to Regal Beloit
Corporation
|
|
195.7
|
%
|
|
(3.2)
|
%
|
|
|
|
|
|
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
|
|
|
Mar 28,
2020
|
|
Mar 30,
2019
|
Income before
Taxes
|
|
$
|
60.6
|
|
|
$
|
108.0
|
|
Provision for Income
Taxes
|
|
13.9
|
|
|
21.2
|
|
Effective Tax
Rate
|
|
22.9
|
%
|
|
19.6
|
%
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
60.6
|
|
|
$
|
108.0
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
1.4
|
|
|
(31.2)
|
|
Adjusted Income
before Taxes
|
|
$
|
62.0
|
|
|
$
|
76.8
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
13.9
|
|
|
$
|
21.2
|
|
Tax Effect from Loss
(Gain) on Businesses Divested and Assets to be Exited
|
|
0.3
|
|
|
(5.3)
|
|
Non-deductible
Portion of Executive Transition Costs
|
|
(0.5)
|
|
|
—
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
13.7
|
|
|
$
|
15.9
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
22.1
|
%
|
|
20.7
|
%
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
March 28,
2020
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Mar 28, 2020
|
|
$
|
199.4
|
|
|
$
|
129.6
|
|
|
$
|
210.1
|
|
|
$
|
195.1
|
|
|
$
|
734.2
|
|
Impact from Foreign
Currency Exchange Rates
|
|
1.7
|
|
|
2.3
|
|
|
1.0
|
|
|
1.0
|
|
|
6.0
|
|
Organic Sales Three
Months Ended Mar 28, 2020
|
|
$
|
201.1
|
|
|
$
|
131.9
|
|
|
$
|
211.1
|
|
|
$
|
196.1
|
|
|
$
|
740.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Mar 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)
|
|
Adjusted Net Sales
Three Months Ended Mar 30, 2019
|
|
$
|
229.8
|
|
|
$
|
138.1
|
|
|
$
|
247.8
|
|
|
$
|
204.6
|
|
|
$
|
820.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Mar 28, 2020 Organic Sales Growth %
|
|
(12.5)
|
%
|
|
(4.5)
|
%
|
|
(14.8)
|
%
|
|
(4.2)
|
%
|
|
(9.8)
|
%
|
Three Months Ended
Mar 28, 2020 Net Sales Growth %
|
|
(17.7)
|
%
|
|
(6.2)
|
%
|
|
(20.2)
|
%
|
|
(7.2)
|
%
|
|
(14.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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
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|
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content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-first-quarter-2020-financial-results-301052262.html
SOURCE Regal Beloit Corporation