Regal Beloit Corporation Announces Third Quarter 2018 Financial Results
BELOIT, Wis., Nov. 5, 2018 /PRNewswire/ -- Regal Beloit Corporation (NYSE: RBC) today reported third quarter 2018 diluted earnings per share of $1.17, down 16% from the prior year. Third quarter 2018 adjusted diluted earnings per share* were $1.67, up 23% from the prior year.
Key financial results for the third quarter 2018 included:
-- Total net sales of $925.4 million increased 8.0% from the prior year and
included a negative 0.9% impact from foreign currency, a negative 0.4%
impact from the business to be exited**, and a positive 4.1% impact from
acquisitions, net of divestitures. The result was a positive organic
sales growth rate of 5.2%.
-- Income from operations was $69.4 million or 7.5% of net sales. Adjusted
income from operations was $106.5 million or 11.6% of adjusted net
sales.
-- Net cash provided by operating activities was $106.0 million and capital
expenditures totaled $18.7 million, resulting in free cash flow of $87.3
million or 133.3% of adjusted net income.
Third quarter 2018 segment results versus the prior year third quarter included:
-- Commercial and Industrial Systems Segment net sales were $462.3 million,
an increase of 13.3%. Acquisitions, net of divestitures had a positive
impact of 8.5%. Foreign currency had a negative 1.3% impact. The result
was a positive organic sales growth rate of 6.1% driven by strength in a
number of end markets including distribution, power generation, oil &
gas and commercial HVAC. Operating margin was 7.6%. Excluding $1.9
million in restructuring and related costs and $0.2 million in purchase
accounting and transaction costs, adjusted operating margin was 8.1%.
-- Climate Solutions Segment net sales were $255.4 million, a decrease of
0.2%. The business to be exited had a negative 0.9% impact. Foreign
currency had a negative 0.7% impact. The result was an organic sales
growth rate of 1.4% driven by strength in North American residential
HVAC and commercial refrigeration partially offset by weakness in
international markets. Operating margin was 2.3%. Excluding impairment
and exit related costs of $34.9 million, restructuring and related costs
of $0.3 million, and operating income from the business to be exited of
$0.3 million, adjusted operating margin was 16.7% of adjusted net sales.
-- Power Transmission Solutions Segment net sales were $207.7 million, an
increase of 7.7%. Foreign currency had a negative 0.4% impact. The
result was a positive organic sales growth rate of 8.1% driven by
increased demand in oil & gas, distribution and material handling.
Operating margin was 13.5%. Excluding restructuring and related costs of
$0.1 million, adjusted operating margin was 13.6%.
*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.
**The business to be exited is the residential hermetic motor components business referenced by the Company in its second quarter 2018 earnings release dated August 6, 2018.
"We had another strong quarter with organic sales up 5.2% and adjusted EPS up 23%," said Regal Chairman and CEO Mark Gliebe. "We continue to drive operating margin improvement with strong volume, incremental price and manufacturing productivity, despite the commodity inflation and tariff headwinds.
2018 Outlook
"Through the first three quarters of 2018, organic sales were up nearly 6% and adjusted earnings per share were up 23%. As we enter the fourth quarter, we are pleased to see continued order strength in most end markets. We expect the benefits from our price actions will continue to offset commodity inflation and tariff headwinds. For the year, we are again increasing the midpoint of our 2018 adjusted diluted earnings per share guidance and narrowing the range to $5.85 to $5.95. We expect 2018 to be a record year in both sales and earnings," continued Mr. Gliebe.
The Company forecasts 2018 GAAP diluted earnings per share of $5.11 to $5.21. The difference between the GAAP diluted earnings per share guidance and the adjusted diluted per share guidance relates to expected restructuring and related costs of $0.14 per share, purchase accounting and transaction costs of $0.10 per share, gain on sale of assets of $0.01 per share, CEO transition costs of $0.07 per share, net income from the business to be exited of $0.02 per share, provisional benefit of the new U.S. tax legislation of $0.15 per share, and impairment and exit related costs of $0.61 per share.
Conference Call
Regal will hold a conference call to discuss the earnings release at 9:00 AM CDT (10:00 AM EDT) on Monday, November 5, 2018. To listen to the live audio and view the presentation during the call, please visit Regal's Investors website: http://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 2908615# 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), replay access code 10125335#. Both will be accessible until February 5, 2019.
About the Company
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer of electric motors, electrical motion controls, power generation and power transmission products serving markets throughout the world. We create a better tomorrow by developing and responsibly producing energy-efficient products and systems.
Our Company is comprised of three business segments: Commercial and 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: uncertainties regarding our ability to execute our restructuring plans within expected costs and timing; increases in our overall debt levels as a result of the acquisition of the Power Transmission Solutions business of Emerson Electric Co. ("PTS") or otherwise and our ability to repay principal and interest on our outstanding debt; 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 and marketplace acceptance of new and existing products; 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 including PTS and the timing and impact of purchase accounting adjustments; prolonged declines in oil and gas up stream capital spending; 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, immigration 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 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 on February 27, 2018 and from time to time in our reports filed with U.S. Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements. The forward-looking statements included in this release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
---
Unaudited
(Amounts in Millions, Except per Share Data)
Three Months Ended Nine Months Ended
Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017
Net Sales $
925.4 $
856.9 $
2,763.9 $
2,539.6
Cost of Sales 682.8 630.0 2,039.0 1,874.4
Gross Profit 242.6 226.9 724.9 665.2
Operating Expenses 155.0 132.6 449.5 412.7
Goodwill Impairment 9.5 9.5
Asset Impairments 8.7 8.7
Total Operating Expenses 173.2 132.6 467.7 412.7
Income from Operations 69.4 94.3 257.2 252.5
Other Expenses, net 0.4 0.3 1.2 0.7
Interest Expense 13.7 13.5 40.9 42.6
Interest Income 1.0 0.7 1.8 2.7
Income before Taxes 56.3 81.2 216.9 211.9
Provision for Income Taxes 3.6 17.6 37.6 46.4
Net Income 52.7 63.6 179.3 165.5
Less: Net Income
Attributable to
Noncontrolling Interests 1.4 1.4 3.7 4.0
Net Income Attributable to
Regal Beloit Corporation $
51.3 $
62.2 $
175.6 $
161.5
Earnings Per Share
Attributable to Regal
Beloit Corporation:
Basic $
1.18 $
1.40 $
4.01 $
3.62
Assuming Dilution $
1.17 $
1.39 $
3.98 $
3.59
Cash Dividends Declared Per
Share $
0.28 $
0.26 $
0.82 $
0.76
Weighted Average Number of
Shares Outstanding:
Basic 43.4 44.4 43.8 44.7
Assuming Dilution 43.8 44.8 44.1 45.0
CONDENSED CONSOLIDATED BALANCE SHEETS
---
Unaudited
(Dollars in Millions)
Sep 29, Dec 30,
2018 2017
ASSETS
Current Assets:
Cash and Cash Equivalents $
184.4 $
139.6
Trade Receivables, less
Allowances 582.9 506.3
of $16.1 Million in 2018 and
$11.3 Million in 2017
Inventories 791.0 757.1
Prepaid Expenses and Other
Current Assets 171.6 171.4
Total Current Assets 1,729.9 1,574.4
Net Property, Plant,
Equipment and Noncurrent
Assets 2,871.4 2,813.8
Total Assets $
4,601.3 $
4,388.2
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $
415.3 $
384.3
Other Accrued Expenses 245.8 226.5
Current Maturities of Debt 0.6 101.2
Total Current Liabilities 661.7 712.0
Long-Term Debt 1,278.3 1,039.9
Other Noncurrent Liabilities 301.8 281.6
Equity:
Total Regal Beloit
Corporation Shareholders'
Equity 2,332.5 2,325.5
Noncontrolling Interests 27.0 29.2
Total Equity 2,359.5 2,354.7
Total Liabilities and Equity $
4,601.3 $
4,388.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
---
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income $
52.7 $
63.6 $
179.3 $
165.5
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 35.3 34.3 106.3 103.1
(Gain) Loss on Disposal of
Assets, Net 1.1 (1.7) 3.5 (2.0)
Gain on Disposal of Businesses (0.1)
Impairment and Exit Related Costs 34.9 34.9
Share-Based Compensation Expense 3.3 3.2 10.5 10.3
Exit of Business 3.9
Change in Operating Assets and
Liabilities (21.3) (13.3) (84.2) (45.7)
Net Cash Provided by Operating
Activities 106.0 86.1 250.3 235.0
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to Property, Plant and
Equipment (18.7) (15.3) (59.2) (49.0)
Net Sales of Investment
Securities 0.5
Business Acquisitions, Net of
Cash Acquired (161.5)
Proceeds from Sale of Assets 4.0 4.6 4.4 5.9
Proceeds Received from Disposal
of Businesses 0.6 1.1
Net Cash Used in Investing
Activities (14.7) (10.1) (215.8) (42.0)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net Borrowings (Repayments) Under
Revolving Credit Facility (168.3) 13.6 25.6 11.5
Net (Repayments) Borrowings from
Short-Term Borrowings 0.1 (0.1) (0.6)
Proceeds from Long-Term Debt 900.0 900.2 0.3
Repayments of Long-Term Debt (786.2) (100.1) (786.3) (212.2)
Dividends Paid to Shareholders (12.2) (11.7) (35.1) (33.1)
Payments of Contingent
Consideration (5.3)
Proceeds from the Exercise of
Stock Options 0.4
Repurchase of Common Stock (7.2) (24.1) (78.3) (45.1)
Distributions to Noncontrolling
Interest (1.6) (11.7) (1.6) (11.7)
Shares Surrendered for Taxes (0.5) (0.3) (3.4) (3.7)
Purchase of Subsidiary Shares
from Noncontrolling Interest (0.8) (0.8)
Financing fees paid (3.5) (3.5)
Net Cash Provided By (Used In)
Financing Activities (80.2) (134.4) 16.2 (298.9)
EFFECT OF EXCHANGE RATES ON CASH
AND CASH EQUIVALENTS (2.3) 1.3 (5.9) 8.0
Net Increase (Decrease) in Cash
and Cash Equivalents 8.8 (57.1) 44.8 (97.9)
Cash and Cash Equivalents at
Beginning of Period 175.6 243.7 139.6 284.5
Cash and Cash Equivalents at End
of Period $
184.4 $
186.6 $
184.4 $
186.6
SEGMENT INFORMATION
---
Unaudited
(Dollars In Millions)
Three Months Ended
Commercial & Industrial Systems Climate Solutions Power Transmission Solutions
Total Regal
Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017 2018 2017 2018 2017
Net Sales $
462.3 $
408.0 $
255.4 $
256.0 $
207.7 $
192.9 $
925.4 $
856.9
Net Sales for Business to
be Exited (11.0) (13.4) (11.0) (13.4)
Adjusted Net Sales* 462.3 408.0 244.4 242.6 207.7 192.9 914.4 843.5
GAAP Operating Margin 7.6 7.2
% 2.3 15.3 13.5
% % %
% %
% % 13.3 7.5 11.0
Adjusted Operating Margin* 8.1 7.5
% 16.7 16.2 13.6
% % %
% %
% % 11.9 11.6 11.0
Components of Net Sales:
Organic Sales Growth* 6.1 4.0
% 1.4 2.8 8.1
% % %
%
% % 12.8 5.2 5.5
%
Acquisitions, Net of 8.5 % % % % % 4.1
Divestitures
%
% %
Business to be Exited % % (0.9)
%
% %
% (1.0) % % (0.4) (0.4)
Foreign Currency Impact (1.3) 0.8
% (0.7) 0.4 (0.4)
% % %
%
% % 0.9 (0.9) 0.7
%
SEGMENT INFORMATION
---
Unaudited
(Dollars In Millions)
Nine Months Ended
Commercial & Industrial Systems Climate Solutions Power Transmission Solutions
Total Regal
Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017 2018 2017 2018 2017
Net Sales $
1,345.3 $
1,196.6 $
792.6 $
774.2 $
626.0 $
568.8 $
2,763.9 $
2,539.6
Net Sales for Business to
be Exited (42.9) (49.7) (42.9) (49.7)
Adjusted Net Sales* 1,345.3 1,196.6 749.7 724.5 626.0 568.8 2,721.0 2,489.9
GAAP Operating Margin 7.1 6.3
% 10.4 14.3 12.8
% % %
%
% % 11.6 9.3 9.9
%
Adjusted Operating Margin* 7.7 7.1
% 15.7 15.5 12.8
% % %
% %
% % 11.2 11.1 10.5
Components of Net Sales:
Organic Sales Growth 5.8 3.3
% 3.3 5.2 9.1
% % %
%
% % 3.3 5.8 3.9
%
Acquisitions, Net of 5.4 % % % % (1.6) 2.6 (0.4)
Divestitures
% %
% %
Business to be Exited % % (1.1)
%
% %
% (1.2) % % (0.5) (0.3)
Foreign Currency Impact 1.2 (0.3) 0.2 % 1.0
% % %
% %
% % (0.1) 0.9 (0.2)
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, 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 and adjusted effective tax rate. 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 and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while adjusted diluted earnings per share, 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 and adjusted effective tax rate 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 sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to any divested businesses ("acquisitions, net of divestitures") and excluding sales from the business 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.
ADJUSTED DILUTED
EARNINGS PER
SHARE Three Months Ended Nine Months Ended
---
Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017
GAAP Diluted
Earnings Per
Share $
1.17 $
1.39 $
3.98 $
3.59
Restructuring and
Related Costs 0.03 0.03 0.09 0.20
Purchase
Accounting and
Transaction Costs 0.01 0.09
Provisional
Benefit of the
New US Tax
Legislation (0.15) (0.15)
Gain on Sale of
Assets (0.05) (0.01) (0.06)
Net Income from
Business to be
Exited (0.01) (0.02) (0.01)
Impairment and
Exit Related
Costs 0.61 0.61
Adjusted Diluted
Earnings Per
Share $
1.67 $
1.36 $
4.59 $
3.72
ADJUSTED INCOME FROM OPERATIONS
---
Three Months Ended
Commercial & Industrial Systems Climate Solutions Power Transmission Solutions
Total Regal
Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017 2018 2017 2018 2017
GAAP Income from Operations $
35.3 $
29.5 $
6.0 $
39.1 $
28.1 $
25.7 $
69.4 $
94.3
Restructuring and Related
Costs 1.9 1.2 0.3 0.3 0.1 0.1 2.3 1.6
Purchase Accounting and
Transaction Costs 0.2 0.2
Gain on Sale of Assets (0.3) (2.8) (3.1)
Operating Income from
Business to be Exited (0.3) (0.2) (0.3) (0.2)
Impairment and Exit Related
Costs 34.9 34.9
Adjusted Income from
Operations $
37.4 $
30.4 $
40.9 $
39.2 $
28.2 $
23.0 $
106.5 $
92.6
GAAP Operating Margin % 7.6 7.2 2.3 15.3 13.5 13.3 7.5
% % % %
% % % % 11.0
Adjusted Operating Margin % 8.1 7.5 16.7 16.2 13.6 11.9 11.6
% % % %
% % % % 11.0
ADJUSTED INCOME FROM OPERATIONS
---
Nine Months Ended
Commercial & Industrial Systems Climate Solutions Power Transmission Solutions
Total Regal
Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017 2018 2017 2018 2017
GAAP Income from Operations $
94.9 $
75.8 $
82.3 $
110.9 $
80.0 $
65.8 $
257.2 $
252.5
Restructuring and Related
Costs 3.9 9.8 1.4 2.0 0.2 0.7 5.5 12.5
Purchase Accounting and
Transaction Costs 5.3 5.3
Gain on Disposal of
Business (0.1) (0.1)
Gain on Sale of Assets (0.4) (0.7) (2.8) (0.4) (3.5)
Operating Income from
Business to be Exited (1.2) (0.3) (1.2) (0.3)
Impairment and Exit Related
Costs 34.9 34.9
Adjusted Income from
Operations $
103.7 $
84.9 $
117.4 $
112.6 $
80.2 $
63.6 $
301.3 $
261.1
GAAP Operating Margin % 7.1 6.3 10.4 14.3 12.8
% % % %
% %
% % 11.6 9.3 9.9
Adjusted Operating Margin % 7.7 7.1 15.7 15.5 12.8 11.2 11.1
% % % % %
% % % 10.5
FREE CASH FLOW Three Months Ended Nine Months Ended
---
Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017
Net Cash Provided by
Operating Activities $
106.0 $
86.1 $
250.3 $
235.0
Additions to Property
Plant and Equipment (18.7) (15.3) (59.2) (49.0)
Free Cash Flow $
87.3 $
70.8 $
191.1 $
186.0
GAAP Net Income
Attributable to Regal
Beloit Corporation $
51.3 $
62.2 $
175.6 $
161.5
Goodwill Impairment 9.5 9.5
Asset Impairments 8.7 8.7
Tax Effect from
Impairments (4.0) (4.0)
Adjusted Net Income
Attributable to Regal
Beloit Corporation (1) $
65.5 $
62.2 $
189.8 $
161.5
Free Cash Flow as a
Percentage of Adjusted % %
Net Income Attributable % %
to Regal Beloit
Corporation 133.3 113.8 100.7 115.2
(1) The Net Income Attributable to Regal Beloit Corporation is adjusted for goodwill and asset impairments related to the business to be exited and used in the Free Cash Flow Calculation.
ADJUSTED
EFFECTIVE TAX
RATE Three Months Ended Nine Months Ended
---
Sep 29, Sep 30, Sep 29, Sep 30,
2018 2017 2018 2017
Income before
Taxes $
56.3 $
81.2 $
216.9 $
211.9
Provision for
Income Taxes 3.6 17.6 37.6 46.4
Effective Tax 6.4 21.7 17.3
Rate % %
% % 21.9
Income before
Taxes $
56.3 $
81.2 $
216.9 $
211.9
Impairment and
Exit Related
Costs 34.9 34.9
Adjusted Income
before Taxes $
91.2 $
81.2 $
251.8 $
211.9
Provision for
Income Taxes $
3.6 $
17.6 $
37.6 $
46.4
Tax Effect from
Impairment and
Exit Related
Costs 8.2 8.2
Provisional
Benefit of the
New US Tax
Legislation 6.6 6.6
Adjusted
Provision for
Income Taxes $
18.4 $
17.6 $
52.4 $
46.4
Adjusted 20.2 21.7 20.8
Effective Tax % %
Rate % % 21.9
2018 ADJUSTED
ANNUAL GUIDANCE Minimum Maximum
---
2018 Diluted EPS
Annual Guidance $
5.11 $
5.21
Restructuring
and Related
Costs 0.14 0.14
Purchase
Accounting and
Transaction
Costs 0.10 0.10
Provisional
Benefit of the
New US Tax
Legislation (0.15) (0.15)
Gain on Sale of
Assets (0.01) (0.01)
Net Income from
Business to be
Exited (0.02) (0.02)
Impairment and
Exit Related
Costs 0.61 0.61
CEO Transition
Costs 0.07 0.07
2018 Adjusted
Diluted EPS
Annual Guidance $
5.85 $
5.95
ORGANIC SALES
GROWTH
Three Months Ended
---
Commercial & Climate Power
Industrial Solutions Transmission
Systems Solutions Total Regal
Net Sales
Three Months
Ended Sep
29, 2018 $
462.3 $
255.4 $
207.7 $
925.4
Net Sales
from
Business
Acquired (34.7) (34.7)
Net Sales
from
Business to
be Exited (11.0) (11.0)
Impact from
Foreign
Currency
Exchange
Rates 5.3 1.7 0.8 7.8
Organic Sales
Three Months
Ended Sep
29, 2018 $
432.9 $
246.1 $
208.5 $
887.5
Net Sales
Three Months
Ended Sep
30, 2017 $
408.0 $
256.0 $
192.9 $
856.9
Net Sales
from
Business to
be Exited (13.4) (13.4)
Adjusted Net
Sales Three
Months Ended
Sep 30, 2017 $
408.0 $
242.6 $
192.9 $
843.5
Three Months
Ended Sep % %
29, 2018
Organic
Sales Growth
% 6.1
% 1.4 8.1 5.2
%
Three Months
Ended Sep % % %
29, 2018 Net
Sales Growth
% 13.3 (0.2) 7.7 8.0
%
ORGANIC SALES
GROWTH
Nine Months Ended
---
Commercial & Climate Power
Industrial Solutions Transmission
Systems Solutions Total Regal
Net Sales
Nine Months
Ended Sep
29, 2018 $
1,345.3 $
792.6 $
626.0 $
2,763.9
Net Sales
from
Business
Acquired (64.8) (64.8)
Net Sales
from
Business to
be Exited (42.9) (42.9)
Impact from
Foreign
Currency
Exchange
Rates (14.4) (1.3) (5.5) (21.2)
Organic Sales
Nine Months
Ended Sep
29, 2018 $
1,266.1 $
748.4 $
620.5 $
2,635.0
Net Sales
Nine Months
Ended Sep
30, 2017 $
1,196.6 $
774.2 $
568.8 $
2,539.6
Net Sales
from
Business to
be Exited (49.7) (49.7)
Adjusted Net
Sales Nine
Months Ended
Sep 30, 2017 $
1,196.6 $
724.5 $
568.8 $
2,489.9
Nine Months
Ended Sep % %
29, 2018
Organic
Sales Growth
% 5.8
% 3.3 9.1 5.8
%
Nine Months
Ended Sep % % %
29, 2018 Net
Sales Growth
% 12.4 2.4 10.1 8.8
%
View original content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-third-quarter-2018-financial-results-300743499.html
SOURCE Regal Beloit Corporation
