Regal Beloit Corporation Announces Fourth Quarter 2019 Financial Results
BELOIT, Wis., Feb. 3, 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 fourth quarter 2019 diluted earnings per share of $0.89. Fourth quarter 2019 adjusted diluted earnings per share* were $1.25. Full year 2019 diluted earnings per share were $5.66. Full year 2019 adjusted diluted earnings per share were $5.49.
Key financial results for the fourth quarter 2019 included:
-- Total net sales of $738.2 million decreased 16.3% from the prior year
and included a negative 0.5% impact from foreign currency and a negative
6.5% impact from businesses divested/to be exited. The result was a
negative organic sales growth rate of 9.3%.
-- Income from operations was $61.7 million or 8.4% of net sales. Adjusted
income from operations was $77.5 million or 10.5% of adjusted net sales.
-- Adjusted income from operations delevered at 12.2% from prior year.
-- Net cash provided by operating activities was $137.3 million and capital
expenditures totaled $15.1 million, resulting in free cash flow of
$122.2 million.
-- Inventories down $47.3 million from the end of the third quarter 2019.
-- Debt decreased $63.4 million from $1,200.9 million at the end of the
third quarter 2019 to $1,137.5 million. Net debt decreased $101.8
million from $907.9 million at the end of the third quarter 2019 to
$806.1 million.
-- Debt to EBITDA was 2.3, unchanged from the end of the third quarter
2019. Net debt to adjusted EBITDA was 1.7 down from 1.9 at the end of
the third quarter 2019.
-- Purchased 180,763 shares for a total of $15.0 million.
Key Financial results for the full year 2019 included:
-- Income from operations was $351.1 million or 10.8% of net sales.
Adjusted income from operations was $342.1 million or 10.7% of adjusted
net sales.
-- Adjusted income from operations delevered at 15.5% from prior year.
-- Net cash provided by operating activities was $408.5 million and capital
expenditures totaled $92.4 million, resulting in free cash flow of
$316.1 million as compared to $285.1 million in 2018.
-- Debt decreased $169.6 million from $1,307.1 million at the end of 2018
to $1,137.5 million. Net debt decreased $252.4 million from $1,058.5
million at the end of 2018 to $806.1 million.
-- Debt to EBITDA was 2.3, down from 2.7 at the end of the end of 2018. Net
debt to adjusted EBITDA was 1.7 down from 2.1 at the end of 2018.
-- Purchased 2,194,545 shares for a total of $165.0 million.
Effective as of December 28, 2019, the Company reorganized its segments to align with its new management reporting structure and business activities. Prior to this reorganization, the Company was comprised of three segments: Commercial & Industrial Systems, Climate Solutions and Power Transmission Solutions. As a result of this reorganization, the Company divided the Commercial and Industrial Systems segment into separate segments. Therefore, the Company is now comprised of four segments: Commercial Systems, Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Company has recast previously reported segment financial information on a basis consistent with these segments. For details on the 2018 and 2019 recast results reflecting the realigned segments, please see the tables in the appendix. A description of the Company's four segments can be found in the Company's Form 8-K dated February 3, 2020.
*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.
"While the market conditions continue to be challenging, our ability to remove cost and delever at a relatively low rate for three consecutive quarters further illustrates the margin potential of the company. The Climate and PTS businesses were both able to achieve notable operating profit growth despite sizable sales headwinds. With our announced re-segmentation, our Commercial and Industrial businesses will have improved transparency, renewed focus, and clear accountability. We have new leadership in approximately half of our top 25 business unit management roles, which in addition to our tenured talent, is driving fresh ideas and a spotlight on performance. Lastly, Regal delivered another quarter of excellent free cash flow. I am very proud of our teams' efforts," said Regal CEO Louis Pinkham.
Fourth quarter 2019 segment results versus the prior year fourth quarter:
-- Commercial Systems segment net sales were $202.0 million, a decrease of
26.1%. Businesses divested/to be exited had a negative 15.1% impact, and
foreign currency had a negative 0.6% impact. The result was a negative
organic sales growth rate of 10.4% driven by continued inventory
de-stocking in the North American pool pump market, weakness in North
American general industry, and the impact of 80/20 account pruning.
Operating margin was 3.9%. After net adjustments of $7.2 million,
adjusted operating margin was 7.5% of adjusted net sales. Adjusted
income from operations delevered at 28.7% from prior year.
-- Industrial Systems segment net sales were $138.0 million, a decrease of
15.6%. Businesses divested/to be exited had a negative 0.7% impact, and
foreign currency had a negative 0.7% impact. The result was a negative
organic sales growth rate of 14.2% driven by continued power generation
project delays due to end market overcapacity and the oil & gas
downturn, weak North American and China industrial demand due to trade
uncertainty, and the impact of 80/20 account pruning. Operating margin
was negative 1.0%. After net adjustments of $3.0 million, adjusted
operating margin was 1.2% of adjusted net sales. Adjusted income from
operations delevered at 18.3% from prior year.
-- Climate Solutions segment net sales were $206.4 million, a decrease of
11.1%. The businesses divested/to be exited had a negative 4.4% impact,
and foreign currency had a negative 0.2% impact. The result was a
negative organic sales growth rate of 6.5% driven by a mild start to the
winter in North America, the impact from the FER pre-buy in residential
HVAC in the first half of the year, inventory reductions by HVAC OEMs
and 80/20 account pruning efforts, which were partially offset by
improving demand in Asia Pacific. Operating margin was 17.3%. After net
adjustments of $0.4 million, adjusted operating margin was 17.1% of
adjusted net sales. Adjusted income from operations grew despite the
6.5% organic sales decline in the quarter.
-- Power Transmission Solutions segment net sales were $191.8 million, a
decrease of 9.9%. The businesses divested/to be exited had a negative
2.3% impact, and foreign currency had a negative 0.4% impact. The result
was a negative organic sales growth rate of 7.2% driven by a significant
slowdown in upstream and midstream oil & gas, continued weakness in the
industrial distribution channel, and 80/20 account pruning efforts,
which were partially offset by strong demand in renewable energy.
Operating margin was 10.2%. After net adjustments of $6.0 million,
adjusted operating margin was 13.3% of adjusted net sales. Adjusted
income from operations grew despite the 7.2% organic sales decline in
the quarter.
2020 Outlook
"We are providing adjusted diluted earnings per share guidance of $5.65 to $6.05, an increase of approximately 7% at the midpoint from 2019. We expect markets to continue to be challenged in the first half of the year but believe the second half should see a recovery," continued Mr. Pinkham.
He concluded, "We are energized about our re-segmentation, executing 80/20, and driving improvement in profitability, while staying laser focused on exceeding customer needs with differentiated products, solutions, and services. I look forward to sharing more about our strategy to drive further shareholder creation at our Investor Day on March 3rd in New York City."
The Company forecasts 2020 GAAP diluted earnings per share of $5.35 to $5.75. The difference between the GAAP diluted earnings per share guidance and the adjusted diluted earnings per share guidance relates to expected restructuring and related costs of $0.28 per share, gain on businesses divested and assets to be exited of $0.01 per share, and executive transition costs of $0.03 per share.
For details related to all 2018 and 2019 divestitures, please see the tables in the appendix. In these tables, net sales and adjusted income from operations are provided for each segment by quarter and for the full year for ongoing business comparison purposes.
Conference Call
Regal will hold a conference call to discuss the earnings release at 9:00 AM CST (10:00 AM EST) on Tuesday, February 4, 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 2781436# 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 10138325#. Both will be accessible until May 4, 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 solutions 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: uncertainties regarding our ability to execute our restructuring plans within expected costs and timing; actions taken by our competitors and our ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and power transmission industries; our ability to develop new products based on technological innovation, such as the Internet of Things, and marketplace acceptance of new and existing products, including products related to technology not yet adopted or utilized in certain geographic locations in which we do business; fluctuations in commodity prices and raw material costs; our dependence on significant customers; risks associated with global manufacturing, including risks associated with public health crises; issues and costs arising from the integration of acquired companies and businesses and the timing and impact of purchase accounting adjustments; our overall debt levels and our ability to repay principal and interest on our outstanding debt; prolonged declines in one or more markets we serve, such as heating, ventilation, air conditioning, refrigeration, power generation, oil and gas, unit material handling or water heating; economic changes in global markets where we do business, such as reduced demand for the products we sell, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, immigration, customs, border actions and the like, and other external factors that we cannot control; product liability and other litigation, or claims by end users, government agencies or others that our products or our customers' applications failed to perform as anticipated, particularly in high volume applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; unanticipated costs or expenses we may incur related to product warranty issues; our dependence on key suppliers and the potential effects of supply disruptions; infringement of our intellectual property by third parties, challenges to our intellectual property, and claims of infringement by us of third party technologies; effects on earnings of any significant impairment of goodwill or intangible assets; losses from failures, breaches, attacks or disclosures involving our information technology infrastructure and data; cyclical downturns affecting the global market for capital goods; and other risks and uncertainties including but not limited to those described in "Item 1A-Risk Factors" of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 26, 2019 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 Twelve Months Ended
Dec 28, Dec 29, Dec 28,
Dec 29,
2019 2018 2019 2018
Net Sales $
738.2 $
881.7 $
3,238.0 $
3,645.6
Cost of Sales 548.0 642.0 2,377.3 2,681.0
Gross Profit 190.2 239.7 860.7 964.6
Operating Expenses 128.5 149.9 499.6 599.4
Goodwill Impairment 9.5
Asset Impairments 10.0 8.7
Total Operating Expenses 128.5 149.9 509.6 617.6
Income from Operations 61.7 89.8 351.1 347.0
Other (Income) Expenses, net (0.5) 0.3 (0.1) 1.5
Interest Expense 12.5 14.3 53.0 55.2
Interest Income 1.6 0.1 5.6 1.9
Income before Taxes 51.3 75.3 303.8 292.2
Provision for Income Taxes 13.7 18.8 61.2 56.4
Net Income 37.6 56.5 242.6 235.8
Less: Net Income Attributable
to Noncontrolling Interests 0.9 0.9 3.7 4.6
Net Income Attributable to
Regal Beloit Corporation $
36.7 $
55.6 $
238.9 $
231.2
Earnings Per Share
Attributable to Regal Beloit
Corporation:
Basic $
0.90 $
1.29 $
5.69 $
5.30
Assuming Dilution $
0.89 $
1.28 $
5.66 $
5.26
Cash Dividends Declared Per
Share $
0.30 $
0.28 $
1.18 $
1.10
Weighted Average Number of
Shares Outstanding:
Basic 40.9 43.1 42.0 43.6
Assuming Dilution 41.1 43.4 42.2 43.9
CONDENSED CONSOLIDATED
BALANCE SHEETS
---
Unaudited
(Dollars in Millions)
Dec 28, Dec 29,
2019 2018
ASSETS
Current Assets:
Cash and Cash Equivalents $
331.4 $
248.6
Trade Receivables, less
Allowances of $9.7 Million
in 2019 and $13.3 Million
in 2018 461.4 551.9
Inventories 678.4 767.2
Prepaid Expenses and Other
Current Assets 136.5 250.0
Total Current Assets 1,607.7 1,817.7
Net Property, Plant,
Equipment and Noncurrent
Assets 2,823.0 2,806.1
Total Assets $
4,430.7 $
4,623.8
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $
337.0 $
424.8
Other Accrued Expenses 222.9 258.2
Current Maturities of Debt 0.6 0.5
Total Current Liabilities 560.5 683.5
Long-Term Debt 1,136.9 1,306.6
Other Noncurrent Liabilities 352.9 295.2
Equity:
Total Regal Beloit
Corporation Shareholders'
Equity 2,351.1 2,310.5
Noncontrolling Interests 29.3 28.0
Total Equity 2,380.4 2,338.5
Total Liabilities and Equity $
4,430.7 $
4,623.8
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
---
Unaudited
(Dollars in Millions)
Three Months Ended Twelve Months Ended
Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income 37.6 56.5 242.6 235.8
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 34.1 36.1 134.5 142.4
(Gain) Loss on Disposal of
Assets (2.4) (2.4) (0.7) 1.1
(Gain) Loss on Businesses
Divested and Assets to be
Exited 0.5 (34.7) 34.9
Share-Based Compensation
Expense 3.0 6.4 13.0 16.9
Change in Operating Assets
and Liabilities 64.5 15.8 53.8 (68.4)
Net Cash Provided by
Operating Activities 137.3 112.4 408.5 362.7
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to Property, Plant
and Equipment (15.1) (18.4) (92.4) (77.6)
Proceeds Received from Sales
of Property, Plant and
Equipment 7.1 5.6 8.8 10.0
Net Sales of Investment
Securities 0.5
Business Acquisitions, Net
of Cash Acquired (161.5)
Proceeds Received from
(Settlement of) Disposal of
Businesses (1.7) 0.7 157.9 0.7
Net Cash (Used in) Provided
by Investing Activities (9.7) (12.1) 74.3 (227.9)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net (Repayments) Borrowings
Under Revolving Credit
Facility 2.4 53.0 (80.7) 78.6
Net Repayments of Short-
Term Borrowings (0.1) (0.7)
Proceeds from Long-Term
Debt 900.2
Repayments of Long-Term
Debt (66.1) (25.1) (90.3) (811.4)
Dividends Paid to
Shareholders (12.3) (12.1) (48.9) (47.2)
Proceeds from the Exercise
of Stock Options 0.3 0.3
Repurchase of Common Stock (15.0) (49.5) (165.1) (127.8)
Distributions to
Noncontrolling Interest (1.8) (1.6)
Shares Surrendered for Taxes (2.9) (0.1) (10.9) (3.5)
Purchase of Subsidiary
Shares from Noncontrolling
Interest (0.8)
Financing Fees Paid (3.5)
Net Cash Used in Financing
Activities (93.6) (33.9) (397.4) (17.7)
EFFECT OF EXCHANGE RATES ON
CASH AND CASH EQUIVALENTS 4.4 (2.2) (2.6) (8.1)
Net Increase in Cash and
Cash Equivalents 38.4 64.2 82.8 109.0
Cash and Cash Equivalents at
Beginning of Period 293.0 184.4 248.6 139.6
Cash and Cash Equivalents at
End of Period $
331.4 $
248.6 $
331.4 $
248.6
SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended
Commercial Industrial Systems Climate Solutions
Power
Total Regal
Systems Transmission
Solutions
Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Net Sales $
202.0 $
273.2 $
138.0 $
163.5 $
206.4 $
232.2 $
191.8 $
212.8 $
738.2 $
881.7
Net Sales from Businesses
Divested/to be Exited (46.1) (1.4) (0.2) (11.2) (5.2) (0.2) (63.9)
Adjusted Net Sales* $
202.0 $
227.1 $
138.0 $
162.1 $
206.2 $
221.0 $
191.8 $
207.6 $
738.0 $
817.8
GAAP Operating Margin 3.9 10.1 (1.0) 2.7 17.3 14.3 10.2
% % % % %
% %
% % % 11.5 8.4 10.2
Adjusted Operating Margin* 7.5 10.4 1.2 3.7 17.1 14.7 13.3
% % % % %
% %
% % % 12.1 10.5 10.7
Components of Net Sales:
Organic Sales Growth* (10.4) 1.2
% (14.2) (0.9) (6.5) 9.3
% (7.2)
% %
%
% % % % 8.4 (9.3) 4.7
%
Acquisitions % 16.1
% % % % % % % % 4.1
%
Businesses Divested/to be (15.1) (1.5) (0.7) (0.1) (4.4) (1.0) (2.3)
Exited % % % %
% %
% % % % 0.6 (6.5) (0.1)
Foreign Currency Impact (0.6) (0.9) (0.7) (2.8) (0.2) (1.0) (0.4)
% % % %
% %
% % % % (0.7) (0.5) (1.3)
SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Twelve Months Ended
Commercial Industrial Systems Climate Solutions
Power
Total Regal
Systems Transmission
Solutions
Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Net Sales $
905.3 $
1,110.9 $
575.4 $
671.1 $
968.5 $
1,024.8 $
788.8 $
838.8 $
3,238.0 $
3,645.6
Net Sales from Businesses
Divested/to be Exited (25.0) (175.5) (6.3) (22.2) (61.7) (5.6) (19.9) (52.8) (263.4)
Adjusted Net Sales* $
880.3 $
935.4 $
575.4 $
664.8 $
946.3 $
963.1 $
783.2 $
818.9 $
3,185.2 $
3,382.2
GAAP Operating Margin 11.4 9.2
% (1.6) 3.7 16.9 11.3 11.8
% % %
%
% % % % 12.4 10.8 9.5
%
Adjusted Operating Margin* 9.1 9.9
% 0.1 4.3 16.9 15.1 13.0
% % % %
% %
% % % 12.8 10.7 11.0
Components of Net Sales:
Organic Sales Growth (8.1) 3.9
% (11.4) 3.3 (1.2) 4.7
% (3.5)
% %
%
% % % % 8.9 (5.7) 5.2
%
Acquisitions 3.4 12.0 % % % % % % 0.9
% %
% 3.1
%
Businesses Divested/to be (12.6) (0.3) (0.8) (0.2) (3.7) (1.1) (1.6)
Exited % % % %
% %
% % % % 0.1 (5.3) (0.2)
Foreign Currency Impact (1.2) 0.5
% (2.1) 0.6 (0.6) (0.1) (0.9)
% % %
%
% % % % 0.5 (1.1) 0.3
%
ADJUSTED DILUTED
EARNINGS PER
SHARE Three Months Ended Twelve Months Ended
---
Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018
GAAP Diluted
Earnings Per
Share $
0.89 $
1.28 $
5.66 $
5.26
Restructuring and
Related Costs 0.33 0.04 0.57 0.13
Purchase
Accounting and
Transaction Costs 0.09
(Gain) Loss on
Businesses
Divested and
Assets to be
Exited 0.01 (0.69) 0.61
Net (Income) Loss
from Businesses
Divested/to be
Exited 0.01 (0.11) (0.07) (0.40)
Executive
Transition Costs 0.07 0.07 0.08 0.07
Gain on Sale of
Assets (0.06) (0.04) (0.06) (0.04)
Impact of the New
US Tax
Legislation 0.07 (0.08)
Adjusted Diluted
Earnings Per
Share $
1.25 $
1.31 $
5.49 $
5.64
2020 ADJUSTED
ANNUAL GUIDANCE Minimum Maximum
---
2020 Diluted EPS
Annual Guidance $
5.35 $
5.75
Restructuring
and Related
Costs 0.28 0.28
Gain on
Businesses
Divested and
Assets to be
Exited (0.01) (0.01)
Executive
Transition
Costs 0.03 0.03
2020 Adjusted
Diluted EPS
Annual Guidance $
5.65 $
6.05
ADJUSTED INCOME FROM OPERATIONS
Three Months Ended
Commercial
Industrial
Climate
Power
Total Regal
Systems Systems Solutions Transmission
Solutions
Dec 28,
Dec 29, Dec 28, Dec 29, Dec 28,
Dec 29, Dec 28,
Dec 29, Dec 28,
Dec 29,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
GAAP Income (Loss) from
Operations $
7.9 $
27.7 $
(1.4) $
4.4 $
35.7 $
33.3 $
19.5 $
24.4 $
61.7 $
89.8
Restructuring and Related
Costs 7.0 1.1 2.9 0.6 2.7 0.4 5.5 0.1 18.1 2.2
Purchase Accounting and
Transaction Costs 0.1 0.1
Loss on Businesses Divested
and Assets to be Exited 0.1 0.4 0.5
Gain on Sale of Assets (1.5) (3.8) (0.7) (3.8) (2.2)
Operating (Income) Loss from
Businesses Divested/to be
Exited (4.9) 0.3 0.6 (1.6) (0.3) 0.6 (6.5)
Executive Transition Costs 0.1 1.1 0.1 0.7 0.1 1.1 0.1 0.9 0.4 3.8
Adjusted Income from
Operations $
15.1 $
23.6 $
1.6 $
6.0 $
35.3 $
32.5 $
25.5 $
25.1 $
77.5 $
87.2
GAAP Operating Margin % 3.9% 10.1% (1.0)% 2.7% 17.3% 14.3% 10.2% 11.5% 8.4% 10.2%
Adjusted Operating Margin % 7.5% 10.4% 1.2% 3.7% 17.1% 14.7% 13.3% 12.1% 10.5% 10.7%
ADJUSTED INCOME FROM OPERATIONS
Twelve Months Ended
Commercial
Industrial
Climate
Power
Total Regal
Systems Systems Solutions Transmission
Solutions
Dec 28,
Dec 29, Dec 28, Dec 29, Dec 28,
Dec 29, Dec 28,
Dec 29, Dec 28,
Dec 29,
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
GAAP Income (Loss) from
Operations $
103.1 $
102.2 $
(9.3) $
24.8 $
163.9 $
115.6 $
93.4 $
104.4 $
351.1 $
347.0
Restructuring and Related
Costs 11.8 2.9 8.4 2.7 4.2 1.8 6.9 0.3 31.3 7.7
Purchase Accounting and
Transaction Costs 0.1 5.4 0.1 5.4
(Gain) Loss on Businesses
Divested and Assets to be
Exited (32.6) 1.0 (4.7) 34.9 1.6 (34.7) 34.9
Gain on Sale of Assets (1.5) (3.8) (0.7) (3.8) (2.2)
Operating (Income) Loss from
Businesses Divested/to be
Exited (3.3) (17.1) 0.5 (0.5) (6.8) (0.3) (0.5) (4.1) (23.9)
Executive Transition Costs 0.6 1.1 0.5 0.7 0.6 1.1 0.5 0.9 2.2 3.8
Adjusted Income from
Operations $
79.7 $
93.0 $
0.6 $
28.7 $
159.7 $
145.9 $
102.1 $
105.1 $
342.1 $
372.7
GAAP Operating Margin % 11.4% 9.2% (1.6)% 3.7% 16.9% 11.3% 11.8% 12.4% 10.8% 9.5%
Adjusted Operating Margin % 9.1% 9.9% 0.1% 4.3% 16.9% 15.1% 13.0% 12.8% 10.7% 11.0%
DEBT TO EBITDA Last Twelve Months
---
Dec 28, Dec 29,
2019 2018
Net Income $
242.6 $
235.8
Interest Expense 53.0 55.2
Interest Income (5.6) (1.9)
Taxes 61.2 56.4
Depreciation and Amortization 134.5 142.4
EBITDA $
485.7 $
487.9
Restructuring and Related
Costs 31.3 7.7
Purchase Accounting and
Transactions Costs 0.1 5.4
Impairment and Exit Related
Costs 10.0 34.9
Executive Transition Costs 2.2 3.8
Operating Income from
Businesses Divested/to be
Exited (4.1) (23.9)
Gain on Sale of Assets (3.8) (2.2)
Gain on Divestiture of
Businesses (44.7)
Adjusted EBITDA $
476.7 $
513.6
Current Maturities of Long-
Term Debt $
0.6 $
0.5
Long-Term Debt 1,136.9 1,306.6
Total Gross Debt $
1,137.5 $
1,307.1
Cash (331.4) (248.6)
Net Debt $
806.1 $
1,058.5
Gross Debt/EBITDA 2.3 2.7
Gross Debt/Adjusted EBITDA 2.4 2.5
Net Debt/EBITDA 1.7 2.2
Net Debt/Adjusted EBITDA 1.7 2.1
OPERATING
LEVERAGE-TOTAL
REGAL
Three Months Ended
Twelve Months Ended
---
(Dollars in
Millions) Dec 28, Dec 29,
Change Dec 28, Dec 29,
Change
2019 2018 2019 2018
GAAP Income from
Operations $
61.7 $
89.8 $
(28.1) $
351.1 $
347.0 $
4.1
Adjusted Income
from Operations $
77.5 $
87.2 $
(9.7) $
342.1 $
372.7 $
(30.6)
Net Sales $
738.2 $
881.7 $
(143.5) $
3,238.0 $
3,645.6 $
(407.6)
Adjusted Net Sales $
738.0 $
817.8 $
(79.8) $
3,185.2 $
3,382.2 $
(197.0)
GAAP Operating 19.6 (1.0)
Leverage % %
Adjusted Operating 12.2 15.5
Leverage % %
OPERATING LEVERAGE-
COMMERCIAL SYSTEMS
Three Months Ended
Twelve Months Ended
---
(Dollars in Millions) Dec 28, Dec 29, Change Dec 28, Dec 29,
Change
2019 2018 2019 2018
GAAP Income from
Operations $
7.9 $
27.7 $
(19.8) $
103.1 $
102.2 $
0.9
Adjusted Income from
Operations $
15.1 $
23.6 $
(8.5) $
79.7 $
93.0 $
(13.3)
2019 Corporate
Allocation to 2018
Acquisition $
1.3
$ $
5.4
$
Adjusted Income from
Operations Excluding
Corporate Allocation
to 2018 Acquisition $
16.4 $
23.6 $
(7.2) $
85.1 $
93.0 $
(7.9)
Net Sales $
202.0 $
273.2 $
(71.2) $
905.3 $
1,110.9 $
(205.6)
Adjusted Net Sales $
202.0 $
227.1 $
(25.1) $
880.3 $
935.4 $
(55.1)
GAAP Operating Leverage 27.8 (0.4)
% %
Adjusted Operating 33.9 24.1
Leverage % %
Adjusted Operating
Leverage Excluding % %
Corporate Allocation
to 2018 Acquisition 28.7 14.3
OPERATING LEVERAGE-
INDUSTRIAL SYSTEMS
Three Months Ended
Twelve Months Ended
---
(Dollars in
Millions) Dec 28, Dec 29, Change Dec 28, Dec 29, Change
2019 2018 2019 2018
GAAP Income (Loss)
from Operations $
(1.4) $
4.4 $
(5.8) $
(9.3) $
24.8 $
(34.1)
Adjusted Income
from Operations $
1.6 $
6.0 $
(4.4) $
0.6 $
28.7 $
(28.1)
Net Sales $
138.0 $
163.5 $
(25.5) $
575.4 $
671.1 $
(95.7)
Adjusted Net Sales $
138.0 $
162.1 $
(24.1) $
575.4 $
664.8 $
(89.4)
GAAP Operating 22.7 35.6
Leverage % %
Adjusted Operating 18.3 31.4
Leverage % %
FREE CASH FLOW Three Months Ended Twelve Months Ended
---
Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018
Net Cash Provided by
Operating Activities $
137.3 $
112.4 $
408.5 $
362.7
Additions to Property Plant
and Equipment (15.1) (18.4) (92.4) (77.6)
Free Cash Flow $
122.2 $
94.0 $
316.1 $
285.1
GAAP Net Income
Attributable to Regal
Beloit Corporation $
36.7 $
55.6 $
238.9 $
231.2
(Gain) Loss on Businesses
Divested and Impairments 0.5 (34.7) 18.2
Tax Effect from (Gain) Loss
on Businesses Divested and
Impairments (0.1) 5.4 (4.0)
Adjusted Net Income
Attributable to Regal
Beloit Corporation(1) $
37.1 $
55.6 $
209.6 $
245.4
Free Cash Flow as a
Percentage of Adjusted Net % %
Income Attributable to % %
Regal Beloit Corporation 329.4 169.1 150.8 116.2
(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 business to be exited and used in the Free
Cash Flow Calculation.
ADJUSTED
EFFECTIVE TAX
RATE Three Months Ended Twelve Months Ended
---
Dec 28, Dec 29, Dec 28, Dec 29,
2019 2018 2019 2018
Income before
Taxes $
51.3 $
75.3 $
303.8 $
292.2
Provision for
Income Taxes 13.7 18.8 61.2 56.4
Effective Tax 26.7 25.0 20.1
Rate % %
% % 19.3
Income before
Taxes $
51.3 $
75.3 $
303.8 $
292.2
(Gain) Loss on
Businesses
Divested and
Assets to be
Exited 0.5 (34.7) 34.9
Adjusted Income
before Taxes $
51.8 $
75.3 $
269.1 $
327.1
Provision for
Income Taxes $
13.7 $
18.8 $
61.2 $
56.4
Tax Effect from
(Gain) Loss on
Businesses
Divested and
Assets to be
Exited 0.1 (5.4) 8.2
Impact of the New
US Tax
Legislation (3.0) 3.6
Non-deductible
Portion of
Executive
Transition Costs (2.3) (2.3)
Adjusted
Provision for
Income Taxes $
11.5 $
15.8 $
53.5 $
68.2
Adjusted 22.2 21.0 19.9
Effective Tax % %
Rate % % 20.8
ORGANIC SALES
GROWTH
Three Months Ended
---
December 28, 2019
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
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)
Impact from
Foreign
Currency
Exchange Rates 1.4 1.1 0.4 0.9 3.8
Organic Sales
Three Months
Ended Dec 28,
2019 $
203.4 $
139.1 $
206.6 $
192.7 $
741.8
Net Sales Three
Months Ended
Dec 29, 2018 $
273.2 $
163.5 $
232.2 $
212.8 $
881.7
Net Sales from
Businesses
Divested/to
be Exited (46.1) (1.4) (11.2) (5.2) (63.9)
Adjusted Net
Sales Three
Months Ended
Dec 29, 2018 $
227.1 $
162.1 $
221.0 $
207.6 $
817.8
Three Months
Ended Dec 28, % % % % %
2019 Organic
Sales Growth % (10.4) (14.2) (6.5) (7.2) (9.3)
Three Months
Ended Dec 28, % % % % %
2019 Net Sales
Growth % (26.1) (15.6) (11.1) (9.9) (16.3)
ORGANIC SALES
GROWTH
Twelve Months Ended
---
December 28, 2019
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
Net Sales
Twelve Months
Ended Dec 28,
2019 $
905.3 $
575.4 $
968.5 $
788.8 $
3,238.0
Net Sales from
Business
Acquired (31.7) (31.7)
Net Sales from
Businesses
Divested/to
be Exited (25.0) (22.2) (5.6) (52.8)
Impact from
Foreign
Currency
Exchange Rates 10.8 13.7 5.7 7.1 37.3
Organic Sales
Twelve Months
Ended Dec 28,
2019 $
859.4 $
589.1 $
952.0 $
790.3 $
3,190.8
Net Sales
Twelve Months
Ended Dec 29,
2018 $
1,110.9 $
671.1 $
1,024.8 $
838.8 $
3,645.6
Net Sales from
Businesses
Divested/to
be Exited (175.5) (6.3) (61.7) (19.9) (263.4)
Adjusted Net
Sales Twelve
Months Ended
Dec 29, 2018 $
935.4 $
664.8 $
963.1 $
818.9 $
3,382.2
Twelve Months
Ended Dec 28, % % % % %
2019 Organic
Sales Growth % (8.1) (11.4) (1.2) (3.5) (5.7)
Twelve Months
Ended Dec 28, % % % % %
2019 Net Sales
Growth % (18.5) (14.3) (5.5) (6.0) (11.2)
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, which can be used to compare to Regal's 2019 guidance and actual performance.
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
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 Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
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 Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
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, Jun 29, Sep 28, Dec 28,
2019 2019 2019 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
The following tables outline by quarter and full year the 2018 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, which can be used to compare to Regal's 2019 guidance and actual performance.
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
Fiscal 2018 First
Quarter Schedule
for Ongoing
Business
Net Sales Three
Months Ended
March 31, 2018 $
249.0 $
165.0 $
259.9 $
204.9 $
878.8
Net Sales from
Businesses
Divested/to be
Exited (42.3) (1.6) (18.0) (4.3) (66.2)
Net Sales from
Ongoing Business $
206.7 $
163.4 $
241.9 $
200.6 $
812.6
GAAP Income from
Operations Three
Months Ended
March 31, 2018 $
19.7 $
9.4 $
32.3 $
26.8 $
88.2
Restructuring and
Related Costs 0.8 0.5 0.4 1.7
(Income) Loss from
Operations of
Businesses
Divested/to be
Exited (2.9) 0.1 (1.6) 0.4 (4.0)
Adjusted Income
from Operations
of Ongoing
Business $
17.6 $
10.0 $
31.1 $
27.2 $
85.9
Ongoing Business
Adjusted % % % %
Operating Margin
% 8.5
% 6.1 12.9 13.6 10.6
Fiscal 2018 Second
Quarter Schedule
for Ongoing
Business
Net Sales Three
Months Ended June
30, 2018 $
292.2 $
176.8 $
277.3 $
213.4 $
959.7
Net Sales from
Businesses
Divested/to be
Exited (42.0) (1.7) (19.2) (5.6) (68.5)
Net Sales from
Ongoing Business $
250.2 $
175.1 $
258.1 $
207.8 $
891.2
GAAP Income from
Operations Three
Months Ended June
30, 2018 $
23.6 $
6.9 $
44.0 $
25.1 $
99.6
Restructuring and
Related Costs 0.2 0.5 0.7 0.1 1.5
Purchase
Accounting and
Transaction Costs 5.1 5.1
(Income) Loss from
Operations of
Businesses
Divested/to be
Exited (4.1) 0.1 (2.1) (0.3) (6.4)
Adjusted Income
from Operations
of Ongoing
Business $
24.8 $
7.5 $
42.6 $
24.9 $
99.8
Ongoing Business
Adjusted % % % %
Operating Margin
% 9.9
% 4.3 16.5 12.0 11.2
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
Fiscal 2018 Third
Quarter Schedule
for Ongoing
Business
Net Sales Three
Months Ended
September 29,
2018 $
296.5 $
165.8 $
255.4 $
207.7 $
925.4
Net Sales from
Businesses
Divested/to be
Exited (45.1) (1.6) (13.3) (4.8) (64.8)
Net Sales from
Ongoing Business $
251.4 $
164.2 $
242.1 $
202.9 $
860.6
GAAP Income from
Operations Three
Months Ended
September 29,
2018 $
31.2 $
4.1 $
6.0 $
28.1 $
69.4
Restructuring and
Related Costs 0.8 1.1 0.3 0.1 2.3
Purchase
Accounting and
Transaction Costs 0.2 0.2
Impairment and
Exit Related
Costs 34.9 34.9
Income from
Operations of
Businesses
Divested/to be
Exited (5.2) (1.5) (0.3) (7.0)
Adjusted Income
from Operations
of Ongoing
Business $
27.0 $
5.2 $
39.7 $
27.9 $
99.8
Ongoing Business
Adjusted % % % % %
Operating Margin
% 10.7 3.2 16.4 13.8 11.6
Fiscal 2018 Fourth
Quarter Schedule
for Ongoing
Business
Net Sales Three
Months Ended
December 29, 2018 $
273.2 $
163.5 $
232.2 $
212.8 $
881.7
Net Sales from
Businesses
Divested/to be
Exited (46.1) (1.4) (11.2) (5.2) (63.9)
Net Sales from
Ongoing Business $
227.1 $
162.1 $
221.0 $
207.6 $
817.8
GAAP Income from
Operations Three
Months Ended
December 29, 2018 $
27.7 $
4.4 $
33.3 $
24.4 $
89.8
Restructuring and
Related Costs 1.1 0.6 0.4 0.1 2.2
Purchase
Accounting and
Transaction Costs 0.1 0.1
Gain on Sale of
Assets (1.5) (0.7) (2.2)
Executive
Transition Costs 1.1 0.7 1.1 0.9 3.8
(Income) Loss from
Operations of
Businesses
Divested/to be
Exited (4.9) 0.3 (1.6) (0.3) (6.5)
Adjusted Income
from Operations
of Ongoing
Business $
23.6 $
6.0 $
32.5 $
25.1 $
87.2
Ongoing Business
Adjusted % % % % %
Operating Margin
% 10.4 3.7 14.7 12.1 10.7
Commercial Industrial Climate Power Total Regal
Systems Systems Solutions Transmission
Solutions
Fiscal 2018 Full
Year Schedule for
Ongoing Business
Net Sales Twelve
Months Ended
December 29, 2018 $
1,110.9 $
671.1 $
1,024.8 $
838.8 $
3,645.6
Net Sales from
Businesses
Divested/to be
Exited (175.5) (6.3) (61.7) (19.9) (263.4)
Net Sales from
Ongoing Business $
935.4 $
664.8 $
963.1 $
818.9 $
3,382.2
GAAP Income from
Operations Twelve
Months Ended
December 29, 2018 $
102.2 $
24.8 $
115.6 $
104.4 $
347.0
Restructuring and
Related Costs 2.9 2.7 1.8 0.3 7.7
Purchase
Accounting and
Transaction Costs 5.4 5.4
Gain on Sale of
Assets (1.5) (0.7) (2.2)
Executive
Transition Costs 1.1 0.7 1.1 0.9 3.8
Impairment and
Exit Related
Costs 34.9 34.9
(Income) Loss from
Operations of
Businesses
Divested/to be
Exited (17.1) 0.5 (6.8) (0.5) (23.9)
Adjusted Income
from Operations
of Ongoing
Business $
93.0 $
28.7 $
145.9 $
105.1 $
372.7
Ongoing Business
Adjusted % % % %
Operating Margin
% 9.9
% 4.3 15.1 12.8 11.0
2018 ADJUSTED
DILUTED
EARNINGS PER
SHARE FOR
ONGOING
BUSINESS
Three Months Ended Twelve
Months
Ended
Dec 29,
2018
---
Mar 31, Jun 30, Sep 29, Dec 29,
2018 2018 2018 2018
Adjusted Diluted
Earnings Per
Share $
1.33 $
1.59 $
1.67 $
1.41 $
6.00
Earnings Per
Share from
Businesses
Divested/to be
Exited (0.06) (0.09) (0.11) (0.10) (0.36)
Adjusted Diluted
Earnings Per
Share for
Ongoing
Business $
1.27 $
1.50 $
1.56 $
1.31 $
5.64
View original content:http://www.prnewswire.com/news-releases/regal-beloit-corporation-announces-fourth-quarter-2019-financial-results-300998014.html
SOURCE Regal Beloit Corporation
