BELOIT, Wis., Feb. 16, 2021 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC), a global leader in the engineering and
manufacturing of high-efficiency electric motors and power
transmission products, reported fourth quarter 2020 diluted
earnings per share of $1.23 compared
to $0.89 a year ago. Fourth quarter
2020 adjusted diluted earnings per share* were $1.78 compared to $1.25 a year ago. Full year 2020 diluted earnings
per share were $4.64. Full year 2020
adjusted diluted earnings per share were $5.77.
Key financial results for the fourth quarter 2020 included:
- Total net sales of $780.5 million
increased 5.7% from the prior year. Excluding the positive impacts
of 0.8% from foreign currency, sales increased 4.9% on an organic
basis.
- Income from operations was $74.2
million or 9.5% of net sales. Adjusted income from
operations rose $22.9 million or
29.5% from a year ago, to $100.4
million. Adjusted operating margin of 12.9% was up 240 basis
points versus the prior year's 10.5%.
- Net cash provided by operating activities was $125.5 million and capital expenditures totaled
$17.8 million, resulting in free cash
flow of $107.7 million, which is
174.8% of adjusted net income.
- No shares were repurchased in the fourth quarter.
Key financial results for the full year 2020 included:
- Total net sales of $2,907.0
million decreased 10.2% from the prior year. Excluding the
negative impacts of 0.4% from foreign currency and 1.4% from
businesses to be divested/exited, sales declined 8.4% on an organic
basis.
- Income from operations was $280.1
million or 9.6% of net sales. Adjusted income from
operations decreased $6.0 million or
1.8% from a year ago, to $336.1
million. Adjusted operating margin of 11.6% was up 90 basis
points versus the prior year's 10.7%.
- Net cash provided by operating activities was $435.4 million and capital expenditures totaled
$47.5 million, resulting in free cash
flow of $387.9 million, which is
190.3% of adjusted net income.
- The Company repurchased 315,072 shares for a total of
$25.0 million in 2020, all in the
first quarter.
Fourth quarter 2020 segment results versus the prior year fourth
quarter:
- Commercial Systems segment net sales were $226.4 million, an increase of 12.1%. Foreign
currency had a positive 1.9% impact. The result was a positive
organic sales growth rate of 10.1%, driven by strength in the pool
pump market, strong growth in China driven by recovering end markets and
gains in the motors business, and to a lesser extent gains in the
N.A. general industrial end market. Partially offsetting these
tailwinds were ongoing, although diminished, COVID-related
pressures on the large commercial HVAC market and ongoing proactive
account pruning. Operating margin was 9.8%. After net adjustments
of $1.5 million, adjusted operating
margin was 10.5% of adjusted net sales.
- Industrial Systems segment net sales were $139.8 million, an increase of 1.3%. Foreign
currency had a positive 1.2% impact. The result was a positive
organic sales growth rate of 0.1%, driven by strong end markets and
gains in the Company's data center business and, to a lesser
extent, strength in China. Largely
offsetting these tailwinds were continued COVID-related headwinds
across much of the rest of the business, in particular sales into
the N.A. general industrial and oil & gas end markets, combined
with ongoing proactive account pruning. Operating margin was
negative 10.7%. After net adjustments of $17.5 million, adjusted operating margin was 1.9%
of adjusted net sales. The adjusted operating income includes a
one-time $6.2 million non-cash
inventory-related charge connected to consolidating multiple,
legacy motor platforms onto a single, new platform, and moving
production of that new platform to one facility in Mexico.
- Climate Solutions segment net sales were $224.5 million, an increase of 8.8%. Businesses
divested/to be exited had a negative 0.1% impact, and foreign
currency had a negative 0.5% impact. The result was a positive
organic sales growth rate of 9.4%, driven primarily by strong
demand in the N.A. residential HVAC market, partially offset by
COVID-related headwinds in EMEA, as well as ongoing proactive
account pruning. Notably, orders in the N.A. HVAC business were up
16% in the fourth quarter, on a daily basis. Operating margin was
18.4%. After net adjustments of $0.6
million, adjusted operating margin was 18.7% of adjusted net
sales.
- Power Transmission Solutions segment net sales were
$189.8 million, a decrease of 1.0%.
Foreign currency had a positive 0.9% impact. The result was a
negative organic sales growth rate of 1.9% driven by continued,
albeit diminishing COVID-related declines in N.A. general
industrial and upstream oil & gas end markets, as well as
project lumpiness in alternative energy, and ongoing proactive
account pruning. Partially offsetting these headwinds was strength
in the conveying business tied to gains in the unit material
handling market, gains in the aerospace market, and strength in
midstream oil & gas markets related to a number of large,
in-process projects. Operating margin was 13.5%. After net
adjustments of $6.6 million, adjusted
operating margin was 17.0% 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 fourth quarter 2020 performance, CEO
Louis Pinkham commented, "It's
great to see a return to firmly positive top line growth overall
and in three of our four segments, with PTS sales nearly flat
versus prior year. Our confidence is rising that shorter cycle
industrial market gains will drive strong positive growth in PTS as
2021 unfolds. The fourth quarter also saw continued progress on
adjusted operating margin, which rose 240 basis points versus prior
year, supported by the Regal team continuing to execute a range of
restructuring actions, and drive 80/20 deeper into our
organization, and has also included successfully pursuing a number
of mix-positive growth opportunities."
Mr. Pinkham went on to comment, "As I reflect on 2020
overall, I am so proud of how our Regal associates around the world
executed, with a sense of urgency, to fundamentally transform the
cost structure of our business, while making investments that will
deliver stronger, and more profitable growth in 2021 and beyond –
all while confronting the significant personal and professional
challenges of COVID-19. Our improving cost structure, and expanding
growth investments, occurring against a backdrop of rising customer
demand for greater energy efficiency, improved indoor air quality,
and more connected products, makes me excited about Regal's near-
and longer-term prospects. With January orders up 7%, we are
entering 2021 with strong momentum."
2021 Guidance
The Company is providing guidance for the first quarter of 2021,
including mid-single digit sales growth, GAAP diluted earnings per
share in a range of $1.32 to
$1.52, and adjusted diluted EPS in a
range of $1.55 to $1.75, which at the mid-point implies 26% growth
versus the prior year.
The Company plans to consider providing annual guidance when it
reports first quarter results, at which time management is
cautiously optimistic that the most disruptive impacts of COVID-19
will have sustainably subsided and allow it to provide a more
useful forecast.
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.
The Company's guidance does not take into account any costs,
expenses or other effects of the transaction announced today
whereby Rexnord will separate its Process & Motion Control
business by way of a spin-off to Rexnord shareholders and then
immediately combine it with Regal in a Reverse Morris Trust
transaction.
A reconciliation of the Company's GAAP EPS guidance to its
adjusted EPS guidance is included in a table later in this
release.
Conference Call
Regal will hold a conference call to discuss this earnings
release at 9:00 AM CT (10:00 AM ET) on Tuesday,
February 16, 2021. To listen to the live audio and view the
presentation during the call, please visit Regal's Investors
website: https://investors.regalbeloit.com. To listen by phone or
to ask the presenters a question, dial 1.888.317.6003 (U.S.
callers) or +1.412.317.6061 (international callers) and enter
7890341 # 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 10152196 #. Both will be accessible for three months after
the earnings call.
Regal is cancelling its earnings conference call previously
scheduled for February 18, 2021.
Regal Combination with Rexnord's Process & Motion Control
Business
Regal separately announced today a definitive agreement whereby
Rexnord will separate its Process & Motion Control business by
way of a spin-off to Rexnord shareholders and then immediately
combine it with Regal in a Reverse Morris Trust transaction. The
companies will jointly hold a conference call to discuss the
transaction on Tuesday, February 16,
2021 at 7:30 AM CT
(8:30 AM ET). Details of this call
can be found in the separation transaction press release and on
each company's investor relations website.
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
This communication contains forward-looking statements, within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, which reflect the Company's current estimates,
expectations and projections about the Company's future results,
performance, prospects and opportunities. Such forward-looking
statements may include, among other things, statements about the
proposed acquisition of Rexnord's PMC business (the "PMC
Business"), the benefits and synergies of the proposed transaction,
future opportunities for the Company, the PMC Business and the
combined company, and any other statements regarding the Company's,
the PMC Business's or the combined company's future operations,
anticipated business levels, future earnings, planned activities,
anticipated growth, market opportunities, strategies, competition
and other expectations and estimates for future periods.
Forward-looking statements include statements that are not
historical facts and can be identified by forward-looking words
such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "plan," "may," "should," "will," "would," "project,"
"forecast," and similar expressions. These forward-looking
statements are based upon information currently available to the
Company and are subject to a number of risks, uncertainties, and
other factors that could cause the Company's, the PMC Business's or
the combined company's actual results, performance, prospects, or
opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements. Important factors
that could cause the Company's, the PMC Business's or the combined
company's actual results to differ materially from the results
referred to in the forward-looking statements the Company makes in
this communication include: the possibility that the conditions to
the consummation of the transaction will not be satisfied; failure
to obtain, delays in obtaining or adverse conditions related to
obtaining shareholder or regulatory approvals; changes in the
extent of the common shareholders of Rexnord and the Company and
its effect pursuant to the merger agreement for the transaction on
the number of shares of Company common stock issuable pursuant to
the transaction and the magnitude of the dividend payable to
Company shareholders pursuant to the transaction; the ability to
obtain the anticipated tax treatment of the transaction and related
transactions; risks relating to any unforeseen changes to or the
effects on liabilities, future capital expenditures, revenue,
expenses, synergies, indebtedness, financial condition, losses and
future prospects; the possibility that the Company may be unable to
achieve expected synergies and operating efficiencies in connection
with the transaction within the expected time-frames or at all and
to successfully integrate the PMC Business; expected or targeted
future financial and operating performance and results; operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintain relationships with employees,
customers, clients or suppliers) being greater than expected
following the transaction; failure to consummate or delay in
consummating the transaction for other reasons; the Company's
ability to retain key executives and employees; risks associated
with litigation related to the transaction; the continued financial
and operational impacts of and uncertainties relating to the
COVID-19 pandemic on customers and suppliers and the geographies in
which they operate; uncertainties regarding the ability to execute
restructuring plans within expected costs and timing; actions taken
by competitors and their ability to effectively compete in the
increasingly competitive global electric motor, drives and
controls, power generation and power transmission industries; the
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 geographic locations in which we do
business; fluctuations in commodity prices and raw material costs;
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; the Company's overall debt levels and its
ability to repay principal and interest on its outstanding debt,
including debt assumed or incurred in connection with the proposed
transaction; prolonged declines in one or more markets, such as
heating, ventilation, air conditioning, refrigeration, power
generation, oil and gas, unit material handling or water heating;
economic changes in global markets, such as reduced demand for
products, 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 the Company cannot
control; product liability and other litigation, or claims by end
users, government agencies or others that products or 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 that may be incurred related to product warranty issues;
dependence on key suppliers and the potential effects of supply
disruptions; infringement of intellectual property by third
parties, challenges to intellectual property, and claims of
infringement on third party technologies; effects on earnings of
any significant impairment of goodwill or intangible assets; losses
from failures, breaches, attacks or disclosures involving
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 the
Company's Annual Report on Form 10-K on file with the Securities
and Exchange Commission and from time to time in other filed
reports including the Company's Quarterly Reports on Form 10-Q. For
a more detailed description of the risk factors associated with the
Company, please refer to the Company's Annual Report on Form 10-K
for the fiscal year ended December 28,
2019 on file with the Securities and Exchange Commission and
its Quarterly Report on Form 10-Q for the period ended September 26, 2020 and subsequent SEC filings.
Shareholders, potential investors, and other readers are urged to
consider these factors in evaluating the forward-looking statements
and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this communication are made only as of the date of this
communication, and the Company undertakes no obligation to update
any forward-looking information contained in this communication or
with respect to the announcements described herein 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
|
|
Twelve Months
Ended
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Net Sales
|
|
$
|
780.5
|
|
|
$
|
738.2
|
|
|
$
|
2,907.0
|
|
|
$
|
3,238.0
|
|
Cost of
Sales
|
|
567.0
|
|
|
548.0
|
|
|
2,098.3
|
|
|
2,377.3
|
|
Gross
Profit
|
|
213.5
|
|
|
190.2
|
|
|
808.7
|
|
|
860.7
|
|
Operating
Expenses
|
|
127.8
|
|
|
128.5
|
|
|
512.8
|
|
|
499.6
|
|
Goodwill
Impairment
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Asset
Impairments
|
|
1.0
|
|
|
—
|
|
|
5.3
|
|
|
10.0
|
|
Total Operating
Expenses
|
|
139.3
|
|
|
128.5
|
|
|
528.6
|
|
|
509.6
|
|
Income from
Operations
|
|
74.2
|
|
|
61.7
|
|
|
280.1
|
|
|
351.1
|
|
Other (Income)
Expenses, net
|
|
(1.1)
|
|
|
(0.5)
|
|
|
(4.4)
|
|
|
(0.1)
|
|
Interest
Expense
|
|
8.6
|
|
|
12.5
|
|
|
39.8
|
|
|
53.0
|
|
Interest
Income
|
|
2.1
|
|
|
1.6
|
|
|
5.9
|
|
|
5.6
|
|
Income before
Taxes
|
|
68.8
|
|
|
51.3
|
|
|
250.6
|
|
|
303.8
|
|
Provision for Income
Taxes
|
|
17.3
|
|
|
13.7
|
|
|
56.8
|
|
|
61.2
|
|
Net Income
|
|
51.5
|
|
|
37.6
|
|
|
193.8
|
|
|
242.6
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
1.1
|
|
|
0.9
|
|
|
4.5
|
|
|
3.7
|
|
Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
50.4
|
|
|
$
|
36.7
|
|
|
$
|
189.3
|
|
|
$
|
238.9
|
|
Earnings Per Share
Attributable to Regal Beloit Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.24
|
|
|
$
|
0.90
|
|
|
$
|
4.66
|
|
|
$
|
5.69
|
|
Assuming
Dilution
|
|
$
|
1.23
|
|
|
$
|
0.89
|
|
|
$
|
4.64
|
|
|
$
|
5.66
|
|
Cash Dividends
Declared Per Share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
1.20
|
|
|
$
|
1.18
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
40.6
|
|
|
40.9
|
|
|
40.6
|
|
|
42.0
|
|
Assuming
Dilution
|
|
40.9
|
|
|
41.1
|
|
|
40.8
|
|
|
42.2
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
611.3
|
|
|
$
|
331.4
|
|
Trade Receivables,
less Allowances of $18.3 Million in 2020 and $9.7 Million in
2019
|
|
432.0
|
|
|
461.4
|
|
Inventories
|
|
690.3
|
|
|
678.4
|
|
Prepaid Expenses and
Other Current Assets
|
|
117.7
|
|
|
136.5
|
|
Total Current
Assets
|
|
1,851.3
|
|
|
1,607.7
|
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
2,737.7
|
|
|
2,823.0
|
|
Total
Assets
|
|
$
|
4,589.0
|
|
|
$
|
4,430.7
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
|
360.1
|
|
|
$
|
337.0
|
|
Other Accrued
Expenses
|
|
230.9
|
|
|
222.9
|
|
Current Maturities of
Debt
|
|
231.0
|
|
|
0.6
|
|
Total Current
Liabilities
|
|
822.0
|
|
|
560.5
|
|
|
|
|
|
|
Long-Term
Debt
|
|
840.4
|
|
|
1,136.9
|
|
Other Noncurrent
Liabilities
|
|
349.6
|
|
|
352.9
|
|
Equity:
|
|
|
|
|
Total Regal Beloit
Corporation Shareholders' Equity
|
|
2,544.4
|
|
|
2,351.1
|
|
Noncontrolling
Interests
|
|
32.6
|
|
|
29.3
|
|
Total
Equity
|
|
2,577.0
|
|
|
2,380.4
|
|
Total Liabilities and
Equity
|
|
$
|
4,589.0
|
|
|
$
|
4,430.7
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
51.5
|
|
|
$
|
37.6
|
|
|
$
|
193.8
|
|
|
$
|
242.6
|
|
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
|
|
|
34.1
|
|
|
131.4
|
|
|
134.5
|
|
Goodwill
Impairment
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Loss (Gain) on
Disposal of Assets
|
|
0.3
|
|
|
(2.4)
|
|
|
3.0
|
|
|
(0.7)
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
1.0
|
|
|
0.5
|
|
|
5.2
|
|
|
(34.7)
|
|
Share-Based
Compensation Expense
|
|
1.0
|
|
|
3.0
|
|
|
9.2
|
|
|
13.0
|
|
Change in Operating
Assets and Liabilities
|
|
28.6
|
|
|
64.5
|
|
|
82.3
|
|
|
53.8
|
|
Net Cash Provided by
Operating Activities
|
|
125.5
|
|
|
137.3
|
|
|
435.4
|
|
|
408.5
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to
Property, Plant and Equipment
|
|
(17.8)
|
|
|
(15.1)
|
|
|
(47.5)
|
|
|
(92.4)
|
|
Proceeds Received
from Sales of Property, Plant and Equipment
|
|
2.6
|
|
|
7.1
|
|
|
10.2
|
|
|
8.8
|
|
Proceeds Received
from (Settlement of) Disposal of Businesses
|
|
—
|
|
|
(1.7)
|
|
|
0.3
|
|
|
157.9
|
|
Net Cash (Used in)
Provided by Investing Activities
|
|
(15.2)
|
|
|
(9.7)
|
|
|
(37.0)
|
|
|
74.3
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net (Repayments)
Borrowings Under Revolving Credit Facility
|
|
—
|
|
|
2.4
|
|
|
(17.7)
|
|
|
(80.7)
|
|
Net Proceeds from
Short-Term Borrowings
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Proceeds from
Long-Term Borrowings
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Repayments of
Long-Term Borrowings
|
|
(0.2)
|
|
|
(66.1)
|
|
|
(50.4)
|
|
|
(90.3)
|
|
Dividends Paid to
Shareholders
|
|
(12.2)
|
|
|
(12.3)
|
|
|
(48.7)
|
|
|
(48.9)
|
|
Proceeds from the
Exercise of Stock Options
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
Repurchase of Common
Stock
|
|
—
|
|
|
(15.0)
|
|
|
(25.0)
|
|
|
(165.1)
|
|
Distributions to
Noncontrolling Interest
|
|
—
|
|
|
—
|
|
|
(2.8)
|
|
|
(1.8)
|
|
Shares Surrendered
for Taxes
|
|
(0.3)
|
|
|
(2.9)
|
|
|
(3.6)
|
|
|
(10.9)
|
|
Net Cash Used in
Financing Activities
|
|
(12.4)
|
|
|
(93.6)
|
|
|
(147.6)
|
|
|
(397.4)
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
25.9
|
|
|
4.4
|
|
|
29.1
|
|
|
(2.6)
|
|
Net Increase in Cash
and Cash Equivalents
|
|
123.8
|
|
|
38.4
|
|
|
279.9
|
|
|
82.8
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
487.5
|
|
|
293.0
|
|
|
331.4
|
|
|
248.6
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
611.3
|
|
|
$
|
331.4
|
|
|
$
|
611.3
|
|
|
$
|
331.4
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan
2, 2021
|
|
Dec 28,
2019
|
|
Jan
2, 2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Net Sales
|
|
$
|
226.4
|
|
|
$
|
202.0
|
|
|
$
|
139.8
|
|
|
$
|
138.0
|
|
|
$
|
224.5
|
|
|
$
|
206.4
|
|
|
$
|
189.8
|
|
|
$
|
191.8
|
|
|
$
|
780.5
|
|
|
$
|
738.2
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
Adjusted Net
Sales*
|
|
$
|
226.4
|
|
|
$
|
202.0
|
|
|
$
|
139.8
|
|
|
$
|
138.0
|
|
|
$
|
224.5
|
|
|
$
|
206.2
|
|
|
$
|
189.8
|
|
|
$
|
191.8
|
|
|
$
|
780.5
|
|
|
$
|
738.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
9.8
|
%
|
|
3.9
|
%
|
|
(10.7)
|
%
|
|
(1.0)
|
%
|
|
18.4
|
%
|
|
17.3
|
%
|
|
13.5
|
%
|
|
10.2
|
%
|
|
9.5
|
%
|
|
8.4
|
%
|
Adjusted Operating
Margin*
|
|
10.5
|
%
|
|
7.5
|
%
|
|
1.9
|
%
|
|
1.2
|
%
|
|
18.7
|
%
|
|
17.1
|
%
|
|
17.0
|
%
|
|
13.3
|
%
|
|
12.9
|
%
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
10.1
|
%
|
|
(10.4)
|
%
|
|
0.1
|
%
|
|
(14.2)
|
%
|
|
9.4
|
%
|
|
(6.5)
|
%
|
|
(1.9)
|
%
|
|
(7.2)
|
%
|
|
4.9
|
%
|
|
(9.3)
|
%
|
Businesses
Divested/to be Exited
|
|
—
|
%
|
|
(15.1)
|
%
|
|
—
|
%
|
|
(0.7)
|
%
|
|
(0.1)
|
%
|
|
(4.4)
|
%
|
|
—
|
%
|
|
(2.3)
|
%
|
|
—
|
%
|
|
(6.5)
|
%
|
Foreign Currency
Impact
|
|
1.9
|
%
|
|
(0.6)
|
%
|
|
1.2
|
%
|
|
(0.7)
|
%
|
|
(0.5)
|
%
|
|
(0.2)
|
%
|
|
0.9
|
%
|
|
(0.4)
|
%
|
|
0.8
|
%
|
|
(0.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power Transmission
Solutions
|
|
Total
Regal
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Net Sales
|
|
$
|
820.2
|
|
|
$
|
905.3
|
|
|
$
|
528.8
|
|
|
$
|
575.4
|
|
|
$
|
846.8
|
|
|
$
|
968.5
|
|
|
$
|
711.2
|
|
|
$
|
788.8
|
|
|
$
|
2,907.0
|
|
|
$
|
3,238.0
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
—
|
|
|
(25.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.2)
|
|
|
—
|
|
|
(5.6)
|
|
|
—
|
|
|
(52.8)
|
|
Adjusted Net
Sales*
|
|
$
|
820.2
|
|
|
$
|
880.3
|
|
|
$
|
528.8
|
|
|
$
|
575.4
|
|
|
$
|
846.8
|
|
|
$
|
946.3
|
|
|
$
|
711.2
|
|
|
$
|
783.2
|
|
|
$
|
2,907.0
|
|
|
$
|
3,185.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
8.1
|
%
|
|
11.4
|
%
|
|
(1.1)
|
%
|
|
(1.6)
|
%
|
|
15.4
|
%
|
|
16.9
|
%
|
|
12.6
|
%
|
|
11.8
|
%
|
|
9.6
|
%
|
|
10.8
|
%
|
Adjusted Operating
Margin*
|
|
9.3
|
%
|
|
9.1
|
%
|
|
3.4
|
%
|
|
0.1
|
%
|
|
16.1
|
%
|
|
16.9
|
%
|
|
14.9
|
%
|
|
13.0
|
%
|
|
11.6
|
%
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth
|
|
(6.9)
|
%
|
|
(8.1)
|
%
|
|
(7.1)
|
%
|
|
(11.4)
|
%
|
|
(9.9)
|
%
|
|
(1.2)
|
%
|
|
(9.1)
|
%
|
|
3.5
|
%
|
|
(8.4)
|
%
|
|
(5.7)
|
%
|
Acquisitions
|
|
—
|
%
|
|
3.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.9
|
%
|
Businesses
Divested/to be Exited
|
|
(2.6)
|
%
|
|
(12.6)
|
%
|
|
—
|
%
|
|
(0.8)
|
%
|
|
(2.1)
|
%
|
|
(3.7)
|
%
|
|
(0.6)
|
%
|
|
(1.6)
|
%
|
|
(1.4)
|
%
|
|
(5.3)
|
%
|
Foreign Currency
Impact
|
|
0.1
|
%
|
|
(1.2)
|
%
|
|
(1.0)
|
%
|
|
(2.1)
|
%
|
|
(0.6)
|
%
|
|
(0.6)
|
%
|
|
(0.1)
|
%
|
|
(0.9)
|
%
|
|
(0.4)
|
%
|
|
(1.1)
|
%
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Jan
2, 2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
GAAP Diluted Earnings
Per Share
|
|
$
|
1.23
|
|
|
$
|
0.89
|
|
|
$
|
4.64
|
|
|
$
|
5.66
|
|
Restructuring and
Related Costs
|
|
0.26
|
|
|
0.33
|
|
|
0.69
|
|
|
0.57
|
|
Transaction
Costs
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Goodwill
Impairment
|
|
0.26
|
|
|
—
|
|
|
0.26
|
|
|
—
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
0.02
|
|
|
0.01
|
|
|
0.10
|
|
|
(0.69)
|
|
Loss (Gain) on Sale
of Assets
|
|
—
|
|
|
(0.06)
|
|
|
0.01
|
|
|
(0.06)
|
|
Net Loss (Income)
from Businesses Divested/to be Exited
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
(0.07)
|
|
Executive Transition
Costs
|
|
—
|
|
|
0.07
|
|
|
0.05
|
|
|
0.08
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
1.78
|
|
|
$
|
1.25
|
|
|
$
|
5.77
|
|
|
$
|
5.49
|
|
2021 ADJUSTED
FIRST QUARTER GUIDANCE
|
|
Minimum
|
|
Maximum
|
2021 Diluted EPS
First Quarter Guidance
|
|
$
|
1.32
|
|
|
$
|
1.52
|
|
Transaction
Costs
|
|
0.16
|
|
|
0.16
|
|
Restructuring and
Related Costs
|
|
0.07
|
|
|
0.07
|
|
2021 Adjusted Diluted
EPS First Quarter Guidance
|
|
$
|
1.55
|
|
|
$
|
1.75
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
GAAP Income (Loss)
from Operations
|
|
$
|
22.2
|
|
|
$
|
7.9
|
|
|
$
|
(14.9)
|
|
|
$
|
(1.4)
|
|
|
$
|
41.3
|
|
|
$
|
35.7
|
|
|
$
|
25.6
|
|
|
$
|
19.5
|
|
|
$
|
74.2
|
|
|
$
|
61.7
|
|
Restructuring and
Related Costs
|
|
1.5
|
|
|
7.0
|
|
|
7.0
|
|
|
2.9
|
|
|
0.6
|
|
|
2.7
|
|
|
4.9
|
|
|
5.5
|
|
|
14.0
|
|
|
18.1
|
|
Transaction
Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Goodwill
Impairment
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
0.4
|
|
|
1.0
|
|
|
0.5
|
|
Gain on Sale of Real
Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8)
|
|
Operating Loss from
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
|
|
$
|
23.7
|
|
|
$
|
15.1
|
|
|
$
|
2.6
|
|
|
$
|
1.6
|
|
|
$
|
41.9
|
|
|
$
|
35.3
|
|
|
$
|
32.2
|
|
|
$
|
25.5
|
|
|
$
|
100.4
|
|
|
$
|
77.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
9.8%
|
|
3.9%
|
|
(10.7)%
|
|
(1.0)%
|
|
18.4%
|
|
17.3%
|
|
13.5%
|
|
10.2%
|
|
9.5%
|
|
8.4%
|
Adjusted Operating
Margin %
|
|
10.5%
|
|
7.5%
|
|
1.9%
|
|
1.2%
|
|
18.7%
|
|
17.1%
|
|
17.0%
|
|
13.3%
|
|
12.9%
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
|
Jan
2,
2021
|
|
Dec 28,
2019
|
GAAP Income (Loss)
from Operations
|
|
$
|
66.2
|
|
|
$
|
103.1
|
|
|
$
|
(5.6)
|
|
|
$
|
(9.3)
|
|
|
$
|
130.0
|
|
|
$
|
163.9
|
|
|
$
|
89.5
|
|
|
$
|
93.4
|
|
|
$
|
280.1
|
|
|
$
|
351.1
|
|
Restructuring and
Related Costs
|
|
6.4
|
|
|
11.8
|
|
|
12.3
|
|
|
8.4
|
|
|
3.7
|
|
|
4.2
|
|
|
14.4
|
|
|
6.9
|
|
|
36.8
|
|
|
31.3
|
|
Transaction
Costs
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
0.1
|
|
Goodwill
Impairment
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
2.7
|
|
|
(32.6)
|
|
|
0.2
|
|
|
1.0
|
|
|
1.3
|
|
|
(4.7)
|
|
|
1.0
|
|
|
1.6
|
|
|
5.2
|
|
|
(34.7)
|
|
Loss (Gain) on Sale
of Assets
|
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
(3.8)
|
|
|
(0.1)
|
|
|
—
|
|
|
0.6
|
|
|
(3.8)
|
|
Operating (Income)
Loss from Businesses Divested/to be Exited
|
|
—
|
|
|
(3.3)
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(0.5)
|
|
|
—
|
|
|
(0.3)
|
|
|
0.4
|
|
|
(4.1)
|
|
Executive Transition
Costs
|
|
0.5
|
|
|
0.6
|
|
|
0.4
|
|
|
0.5
|
|
|
0.5
|
|
|
0.6
|
|
|
0.4
|
|
|
0.5
|
|
|
1.8
|
|
|
2.2
|
|
Adjusted Income from
Operations
|
|
$
|
76.0
|
|
|
$
|
79.7
|
|
|
$
|
18.1
|
|
|
$
|
0.6
|
|
|
$
|
136.1
|
|
|
$
|
159.7
|
|
|
$
|
105.9
|
|
|
$
|
102.1
|
|
|
$
|
336.1
|
|
|
$
|
342.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
8.1%
|
|
11.4%
|
|
(1.1)%
|
|
(1.6)%
|
|
15.4%
|
|
16.9%
|
|
12.6%
|
|
11.8%
|
|
9.6%
|
|
10.8%
|
Adjusted Operating
Margin %
|
|
9.3%
|
|
9.1%
|
|
3.4%
|
|
0.1%
|
|
16.1%
|
|
16.9%
|
|
14.9%
|
|
13.0%
|
|
11.6%
|
|
10.7%
|
DEBT TO
EBITDA
|
|
Last Twelve
Months
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Net Income
|
|
$
|
193.8
|
|
|
$
|
242.6
|
|
Income
Taxes
|
|
56.8
|
|
|
61.2
|
|
Interest
Expense
|
|
39.8
|
|
|
53.0
|
|
Interest
Income
|
|
(5.9)
|
|
|
(5.6)
|
|
Depreciation and
Amortization
|
|
131.4
|
|
|
134.5
|
|
EBITDA
|
|
$
|
415.9
|
|
|
$
|
485.7
|
|
Restructuring and
Related Costs
|
|
36.8
|
|
|
31.3
|
|
Transactions
Costs
|
|
0.7
|
|
|
0.1
|
|
Impairment and Exit
Related Costs
|
|
5.3
|
|
|
10.0
|
|
Executive Transition
Costs
|
|
1.8
|
|
|
2.2
|
|
Goodwill
Impairment
|
|
10.5
|
|
|
—
|
|
Operating Loss
(Income) from Businesses Divested/to be Exited
|
|
0.4
|
|
|
(4.1)
|
|
Loss (Gain) on Sale
of Assets
|
|
0.6
|
|
|
(3.8)
|
|
Gain on Divestiture
of Businesses
|
|
(0.1)
|
|
|
(44.7)
|
|
Adjusted
EBITDA
|
|
$
|
471.9
|
|
|
$
|
476.7
|
|
|
|
|
|
|
Current Maturities of
Debt
|
|
$
|
231.0
|
|
|
$
|
0.6
|
|
Long-Term
Debt
|
|
840.4
|
|
|
1,136.9
|
|
Total Gross
Debt
|
|
$
|
1,071.4
|
|
|
$
|
1,137.5
|
|
Cash
|
|
(611.3)
|
|
|
(331.4)
|
|
Net
Debt
|
|
$
|
460.1
|
|
|
$
|
806.1
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
2.6
|
|
|
2.3
|
|
Gross Debt/Adjusted
EBITDA
|
|
2.3
|
|
|
2.4
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
1.1
|
|
|
1.7
|
|
Net Debt/Adjusted
EBITDA
|
|
1.0
|
|
|
1.7
|
|
OPERATING LEVERAGE
- TOTAL REGAL
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(Dollars in
Millions)
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Change
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Change
|
GAAP Income from
Operations
|
|
$
|
74.2
|
|
|
$
|
61.7
|
|
|
$
|
12.5
|
|
|
$
|
280.1
|
|
|
$
|
351.1
|
|
|
$
|
(71.0)
|
|
Adjusted Income from
Operations
|
|
$
|
100.4
|
|
|
$
|
77.5
|
|
|
$
|
22.9
|
|
|
$
|
336.1
|
|
|
$
|
342.1
|
|
|
$
|
(6.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
780.5
|
|
|
$
|
738.2
|
|
|
$
|
42.3
|
|
|
$
|
2,907.0
|
|
|
$
|
3,238.0
|
|
|
$
|
(331.0)
|
|
Adjusted Net
Sales
|
|
$
|
780.5
|
|
|
$
|
738.0
|
|
|
$
|
42.5
|
|
|
$
|
2,907.0
|
|
|
$
|
3,185.2
|
|
|
$
|
(278.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Leverage
|
|
|
|
|
|
29.6
|
%
|
|
|
|
|
|
21.5
|
%
|
Adjusted Operating
Leverage
|
|
|
|
|
|
53.9
|
%
|
|
|
|
|
|
2.2
|
%
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Net Cash Provided by
Operating Activities
|
|
$
|
125.5
|
|
|
$
|
137.3
|
|
|
$
|
435.4
|
|
|
$
|
408.5
|
|
Additions to Property
Plant and Equipment
|
|
(17.8)
|
|
|
(15.1)
|
|
|
(47.5)
|
|
|
(92.4)
|
|
Free Cash
Flow
|
|
$
|
107.7
|
|
|
$
|
122.2
|
|
|
$
|
387.9
|
|
|
$
|
316.1
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Beloit Corporation
|
|
$
|
50.4
|
|
|
$
|
36.7
|
|
|
$
|
189.3
|
|
|
$
|
238.9
|
|
Goodwill
Impairment
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
1.0
|
|
|
0.5
|
|
|
5.2
|
|
|
(34.7)
|
|
Tax Effect from Loss
(Gain) on Businesses Divested and Assets to be Exited
|
|
(0.3)
|
|
|
(0.1)
|
|
|
(1.2)
|
|
|
5.4
|
|
Adjusted Net Income
Attributable to Regal Beloit Corporation1
|
|
$
|
61.6
|
|
|
$
|
37.1
|
|
|
$
|
203.8
|
|
|
$
|
209.6
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable to Regal Beloit
Corporation
|
|
174.8
|
%
|
|
329.4
|
%
|
|
190.3
|
%
|
|
150.8
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
|
Jan 2,
2021
|
|
Dec 28,
2019
|
Income before
Taxes
|
|
$
|
68.8
|
|
|
$
|
51.3
|
|
|
$
|
250.6
|
|
|
$
|
303.8
|
|
Provision for Income
Taxes
|
|
17.3
|
|
|
13.7
|
|
|
56.8
|
|
|
61.2
|
|
Effective Tax
Rate
|
|
25.1
|
%
|
|
26.7
|
%
|
|
22.7
|
%
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
|
68.8
|
|
|
$
|
51.3
|
|
|
$
|
250.6
|
|
|
$
|
303.8
|
|
Goodwill
Impairment
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
Loss (Gain) on
Businesses Divested and Assets to be Exited
|
|
1.0
|
|
|
0.5
|
|
|
5.2
|
|
|
(34.7)
|
|
Adjusted Income
before Taxes
|
|
$
|
80.3
|
|
|
$
|
51.8
|
|
|
$
|
266.3
|
|
|
$
|
269.1
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
|
17.3
|
|
|
$
|
13.7
|
|
|
$
|
56.8
|
|
|
$
|
61.2
|
|
Tax Effect from Loss
(Gain) on Businesses Divested and Assets to be Exited
|
|
0.3
|
|
|
0.1
|
|
|
1.2
|
|
|
(5.4)
|
|
Non-deductible
Portion of Executive Transition Costs
|
|
—
|
|
|
(2.3)
|
|
|
(0.5)
|
|
|
(2.3)
|
|
Adjusted Provision
for Income Taxes
|
|
$
|
17.6
|
|
|
$
|
11.5
|
|
|
$
|
57.5
|
|
|
$
|
53.5
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate
|
|
21.9
|
%
|
|
22.2
|
%
|
|
21.6
|
%
|
|
19.9
|
%
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
January 2,
2021
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Three
Months Ended Jan 2, 2021
|
|
$
|
226.4
|
|
|
$
|
139.8
|
|
|
$
|
224.5
|
|
|
$
|
189.8
|
|
|
$
|
780.5
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(3.9)
|
|
|
(1.6)
|
|
|
1.1
|
|
|
(1.7)
|
|
|
(6.1)
|
|
Organic Sales Three
Months Ended Jan 2, 2021
|
|
$
|
222.5
|
|
|
$
|
138.2
|
|
|
$
|
225.6
|
|
|
$
|
188.1
|
|
|
$
|
774.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three
Months Ended Dec 28, 2019
|
|
$
|
202.0
|
|
|
$
|
138.0
|
|
|
$
|
206.4
|
|
|
$
|
191.8
|
|
|
$
|
738.2
|
|
Net Sales from
Businesses Divested/to be Exited
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
|
Adjusted Net Sales
Three Months Ended Dec 28, 2019
|
|
$
|
202.0
|
|
|
$
|
138.0
|
|
|
$
|
206.2
|
|
|
$
|
191.8
|
|
|
$
|
738.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Jan 2, 2021 Organic Sales Growth %
|
|
10.1
|
%
|
|
0.1
|
%
|
|
9.4
|
%
|
|
(1.9)
|
%
|
|
4.9
|
%
|
Three Months Ended
Jan 2, 2021 Net Sales Growth %
|
|
12.1
|
%
|
|
1.3
|
%
|
|
8.8
|
%
|
|
(1.0)
|
%
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
ORGANIC SALES
GROWTH
|
|
Twelve Months
Ended
|
|
|
January 2,
2021
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Power
Transmission
Solutions
|
|
Total
Regal
|
Net Sales Twelve
Months Ended Jan 2, 2021
|
|
$
|
820.2
|
|
|
$
|
528.8
|
|
|
$
|
846.8
|
|
|
$
|
711.2
|
|
|
$
|
2,907.0
|
|
Impact from Foreign
Currency Exchange Rates
|
|
(0.5)
|
|
|
5.7
|
|
|
5.7
|
|
|
0.4
|
|
|
11.3
|
|
Organic Sales Twelve
Months Ended Jan 2, 2021
|
|
$
|
819.7
|
|
|
$
|
534.5
|
|
|
$
|
852.5
|
|
|
$
|
711.6
|
|
|
$
|
2,918.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Twelve
Months Ended Dec 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)
|
|
Adjusted Net Sales
Twelve Months Ended Dec 28, 2019
|
|
$
|
880.3
|
|
|
$
|
575.4
|
|
|
$
|
946.3
|
|
|
$
|
783.2
|
|
|
$
|
3,185.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
Jan 2, 2021 Organic Sales Growth %
|
|
(6.9)
|
%
|
|
(7.1)
|
%
|
|
(9.9)
|
%
|
|
(9.1)
|
%
|
|
(8.4)
|
%
|
Twelve Months Ended
Jan 2, 2021 Net Sales Growth %
|
|
(9.4)
|
%
|
|
(8.1)
|
%
|
|
(12.6)
|
%
|
|
(9.8)
|
%
|
|
(10.2)
|
%
|
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-fourth-quarter-2020-financial-results-301228825.html
SOURCE Regal Beloit Corporation