8-K
REGAL REXNORD CORP (RRX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
_______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2020
_______________________
Regal Beloit Corporation
(Exact name of registrant as specified in its charter)
| Wisconsin | 1-7283 | 39-0875718 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
200 State Street, Beloit, Wisconsin 53511-6254
(Address of Principal Executive Offices, Including Zip Code)
Registrant's Telephone Number: (608) 364-8800
_______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
_______________________
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock | RBC | New York Stock Exchange |
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2020, Regal Beloit Corporation (the "Company") issued a news release reporting the financial results of the Company for its third quarter ended September 26, 2020. A copy of the Company's news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01 Regulation FD Disclosure.
The Company will hold a conference call at 10:00 a.m. ET on October 29, 2020 to discuss its financial results for its third quarter ended September 26, 2020 and will provide a presentation in connection therewith. A copy of the Company's conference call presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Not Applicable
(d) Exhibits. The following exhibits are being furnished herewith:
Exhibit Index
| Exhibit Number | Exhibit Description |
|---|---|
| 99.1 | News Release of Regal Beloit Corporation datedOctober 28, 2020. |
| 99.2 | Regal Beloit Corporation Presentation of October 29, 2020. |
| 104.1 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
REGAL BELOIT CORPORATION
Date: October 28, 2020 By: /s/ Thomas E. Valentyn
Thomas E. Valentyn
Vice President, General Counsel and Secretary
Document
FOR RELEASE ON: October 28, 2020
CONTACT: Robert Barry, VP - Investor Relations
608-361-7530
robert.barry@regalbeloit.com
Regal Beloit Corporation Announces Third Quarter 2020 Financial Results
•Strong Growth in Income from Operations Despite COVID-Driven Net Sales Decline
•Operating Margin Expands Over 200 Basis Points Versus Prior Year
•Generated $111.0 Million of Free Cash Flow, Conversion at 171% of Adjusted Net Income
•Re-introducing Guidance for Fourth Quarter
BELOIT, WI - Regal Beloit Corporation (NYSE: RBC), a global leader in the engineering and manufacturing of high-efficiency electric motors and power transmission products, reported third quarter 2020 diluted earnings per share of $1.60 compared to $1.19 a year ago. Third quarter 2020 adjusted diluted earnings per share* were $1.73 compared to $1.35 a year ago.
Key financial results for the third quarter 2020 included:
•Total net sales of $758.2 million decreased 1.8% from the prior year. Excluding the negative impacts of 0.2% from foreign currency and 0.1% from businesses to be divested/exited, sales declined 1.5% on an organic basis.
•Income from operations was $90.0 million or 11.9% of net sales. Adjusted income from operations rose $15.7 million or 19.3% from a year ago, to $97.0 million, on a net sales decline of 1.8%. Adjusted operating margin of 12.8% was up 230 basis points versus the prior year’s 10.5%.
•Net cash provided by operating activities was $120.3 million and capital expenditures totaled $9.3 million, resulting in free cash flow of $111.0 million, which is 170.8% of adjusted net income.
•While no shares were repurchased in the third quarter, the Company has decided to resume its stock repurchase program.
Third quarter 2020 segment results versus the prior year third quarter:
•Commercial Systems segment net sales were $218.5 million, an increase of 1.7%. Foreign currency had a positive 0.5% impact. The result was a positive organic sales growth rate of 1.3%, driven by strength in the pool pump market, share gains in the China motors business, and to a lesser extent growth in N.A. large commercial HVAC. Partially offsetting these tailwinds were ongoing, although diminished, COVID-related disruptions in our Mexico manufacturing operations and ongoing proactive account pruning. Operating margin was 11.6%. After net adjustments of $1.0 million, adjusted operating margin was 12.0% of adjusted net sales.
•Industrial Systems segment net sales were $138.8 million, a decrease of 3.5%. Foreign currency had a negative 0.6% impact. The result was a negative organic sales growth rate of 2.9%, driven by COVID-related headwinds across the business, mainly impacting the N.A. general industrial and oil & gas end markets, combined with ongoing proactive account pruning. Partially offsetting these headwinds, the Company realized share gains in its data center business. Operating margin was 4.8%. After net adjustments of $2.7 million, adjusted operating margin was 6.7% of adjusted net sales.
•Climate Solutions segment net sales were $234.0 million, an increase of 1.3%. Businesses divested/to be exited had a negative 0.4% impact, and foreign currency had a negative 0.8% impact. The result was a positive organic sales growth rate of 2.5%, driven primarily by strong demand in the N.A. residential HVAC market, partially offset by COVID-related headwinds in the commercial refrigeration market, and in the N.A.
*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.
light commercial HVAC market, as well as ongoing proactive account pruning. Notably, orders in the N.A. HVAC business were up 27% in September and are tracking up roughly 22% in October. Operating margin was 16.8%. After net adjustments of $0.9 million, adjusted operating margin was 17.1% of adjusted net sales.
•Power Transmission Solutions segment net sales were $166.9 million, a decrease of 8.7%. Foreign currency had a positive 0.2% impact. The result was a negative organic sales growth rate of 8.9% driven by significant COVID-related declines in N.A. general industrial and upstream oil & gas end markets, project lumpiness in alternative energy, and ongoing proactive account pruning. On the positive side, and partially offsetting these headwinds, was strength in the conveying business tied to share gains in the unit material handling market. Operating margin was 11.3%. After net adjustments of $2.4 million, adjusted operating margin was 12.8% of adjusted net sales.
Summarizing Regal’s third quarter 2020 performance, CEO Louis Pinkham commented, “I am very proud of our team for driving significant year-over-year operating profit improvement on down sales. Despite facing ongoing personal and professional challenges related to COVID, our Regal associates continued to execute a range of restructuring actions, and drive 80/20 deeper into our organization, resulting in significant operating income growth, margin expansion, and FCF generation – even as the top line faced COVID-related declines. There is no question that we are transforming the cost structure of Regal and have a path to further material improvements.”
Mr. Pinkham went on to comment, “As I look across our segments, it’s also encouraging to see more bright spots than in recent quarters, with two of our four segments – Climate and Commercial – returning to positive sales growth during the quarter, Industrial close to flat, and PTS significantly narrowing its rate of decline. The order story is also brighter, with growth rates turning positive in the quarter, and a recovery in the key N.A. general industrial market in PTS still to come. Notably, our N.A. residential HVAC business saw its orders rise almost 30% in September, with October up over 20%. I remain incredibly proud of how our Regal associates continue to execute, with a sense of urgency, to best serve our customers, improve profitability, sustain healthy FCF, and pursue strategic growth opportunities – many tied to improving safety and energy efficiency.”
COVID-19 Update
The global COVID-19 pandemic continued to negatively impact the Company’s operations in the third quarter – although to a lesser extent than in prior quarters – both in terms of hurting demand in many of its end markets and regarding the virus’s impact on the Company’s manufacturing capacity. Fortunately, as the third quarter progressed, pressure on Regal’s order rates started to abate, and order rates inflected to the positive for three of the company’s four segments. Order rates are positive for all segments thus far in October. The Company’s global manufacturing base is largely operational, with plants running at somewhat reduced rates approximating 90% of full capacity, on average, in Mexico and India.
Management will continue to monitor COVID-related risk, acknowledging that in many regions confirmed cases of COVID-19 are on the rise.
2020 Guidance
The Company is providing guidance for the fourth quarter of 2020, with GAAP diluted earnings per share expected to be in a range of $1.34 to $1.54, and diluted adjusted EPS in a range of $1.46 to $1.66, which at the mid-point implies nearly 25% growth versus the prior year.
The company’s fourth quarter EPS expectation implies 2020 annual GAAP diluted earnings per share in a range of $4.75 to $4.95, and diluted adjusted EPS in a range of $5.45 to $5.65, which at the mid-point implies moderate growth versus the prior year.
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.
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 Thursday, October 29, 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 6491323# 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 10148643#. Both will be accessible for three months after the earnings call.
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
The following is a cautionary statement made under the Private Securities Litigation Reform Act of 1995: With the exception of historical facts, the statements contained in this release may be forward-looking statements. Forward-looking statements represent our management’s judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “forecast,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative of these terms or other similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: the continued financial and operational impacts of and uncertainties relating to the COVID-19 pandemic on us and our customers and suppliers and the geographies in which we operate; uncertainties regarding our ability to execute our restructuring plans within expected costs and timing; actions taken by our competitors and our ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and power transmission industries; our ability to develop new products based on technological innovation, such as the Internet of Things, and marketplace acceptance of new and existing products, including products related to technology not yet adopted or utilized in certain geographic locations in which we do business; fluctuations in commodity prices and raw material costs; our dependence on significant customers; risks associated with global manufacturing, 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, 2020 and from time to time in other filed reports including the Company’s Quarterly Reports on Form 10-Q. 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 | Nine Months Ended | |||||||||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||||||||
| Net Sales | $ | 758.2 | $ | 772.3 | $ | 2,126.5 | $ | 2,499.8 | ||||||||||||||||||||||
| Cost of Sales | 536.6 | 570.4 | 1,531.3 | 1,829.3 | ||||||||||||||||||||||||||
| Gross Profit | 221.6 | 201.9 | 595.2 | 670.5 | ||||||||||||||||||||||||||
| Operating Expenses | 131.6 | 129.1 | 385.0 | 371.1 | ||||||||||||||||||||||||||
| Asset Impairments | — | — | 4.3 | 10.0 | ||||||||||||||||||||||||||
| Total Operating Expenses | 131.6 | 129.1 | 389.3 | 381.1 | ||||||||||||||||||||||||||
| Income from Operations | 90.0 | 72.8 | 205.9 | 289.4 | ||||||||||||||||||||||||||
| Other (Income) Expenses, net | (1.1) | 0.1 | (3.3) | 0.4 | ||||||||||||||||||||||||||
| Interest Expense | 9.0 | 13.5 | 31.2 | 40.5 | ||||||||||||||||||||||||||
| Interest Income | 1.3 | 1.5 | 3.8 | 4.0 | ||||||||||||||||||||||||||
| Income before Taxes | 83.4 | 60.7 | 181.8 | 252.5 | ||||||||||||||||||||||||||
| Provision for Income Taxes | 17.1 | 9.9 | 39.5 | 47.5 | ||||||||||||||||||||||||||
| Net Income | 66.3 | 50.8 | 142.3 | 205.0 | ||||||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | 1.3 | 1.1 | 3.4 | 2.8 | ||||||||||||||||||||||||||
| Net Income Attributable to Regal Beloit Corporation | $ | 65.0 | $ | 49.7 | $ | 138.9 | $ | 202.2 | ||||||||||||||||||||||
| Earnings Per Share Attributable to Regal Beloit Corporation: | ||||||||||||||||||||||||||||||
| Basic | $ | 1.60 | $ | 1.20 | $ | 3.42 | $ | 4.78 | ||||||||||||||||||||||
| Assuming Dilution | $ | 1.60 | $ | 1.19 | $ | 3.41 | $ | 4.75 | ||||||||||||||||||||||
| Cash Dividends Declared Per Share | $ | 0.30 | $ | 0.30 | $ | 0.90 | $ | 0.88 | ||||||||||||||||||||||
| Weighted Average Number of Shares Outstanding: | ||||||||||||||||||||||||||||||
| Basic | 40.6 | 41.5 | 40.6 | 42.3 | ||||||||||||||||||||||||||
| Assuming Dilution | 40.8 | 41.7 | 40.7 | 42.6 | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||
| Sep 26, 2020 | Dec 28, 2019 | |||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||
| Current Assets: | ||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 487.5 | $ | 331.4 | ||||||||||||||||||||||||||
| Trade Receivables, less Allowances<br> of $15.6 Million in 2020 and $9.7 Million in 2019 | 472.5 | 461.4 | ||||||||||||||||||||||||||||
| Inventories | 677.2 | 678.4 | ||||||||||||||||||||||||||||
| Prepaid Expenses and Other Current Assets | 115.4 | 136.5 | ||||||||||||||||||||||||||||
| Total Current Assets | 1,752.6 | 1,607.7 | ||||||||||||||||||||||||||||
| Net Property, Plant, Equipment and Noncurrent Assets | 2,726.8 | 2,823.0 | ||||||||||||||||||||||||||||
| Total Assets | $ | 4,479.4 | $ | 4,430.7 | ||||||||||||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||
| Current Liabilities: | ||||||||||||||||||||||||||||||
| Accounts Payable | $ | 363.8 | $ | 337.0 | ||||||||||||||||||||||||||
| Other Accrued Expenses | 236.4 | 222.9 | ||||||||||||||||||||||||||||
| Current Maturities of Debt | 230.6 | 0.6 | ||||||||||||||||||||||||||||
| Total Current Liabilities | 830.8 | 560.5 | ||||||||||||||||||||||||||||
| Long-Term Debt | 840.2 | 1,136.9 | ||||||||||||||||||||||||||||
| Other Noncurrent Liabilities | 356.5 | 352.9 | ||||||||||||||||||||||||||||
| Equity: | ||||||||||||||||||||||||||||||
| Total Regal Beloit Corporation Shareholders' Equity | 2,421.9 | 2,351.1 | ||||||||||||||||||||||||||||
| Noncontrolling Interests | 30.0 | 29.3 | ||||||||||||||||||||||||||||
| Total Equity | 2,451.9 | 2,380.4 | ||||||||||||||||||||||||||||
| Total Liabilities and Equity | $ | 4,479.4 | $ | 4,430.7 | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| Sep 26, 2020 | Sep 28, 2019 | Sep 26, 2020 | Sep 28, 2019 | |||||||||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||||||||
| Net Income | $ | 66.3 | $ | 50.8 | $ | 142.3 | $ | 205.0 | ||||||||||||||||||||||
| 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 | 32.9 | 33.9 | 98.8 | 100.4 | ||||||||||||||||||||||||||
| Loss on Disposal of Assets | 1.3 | 1.3 | 2.7 | 1.7 | ||||||||||||||||||||||||||
| Loss (Gain) on Businesses Divested and Assets to be Exited | — | 0.2 | 4.2 | (35.2) | ||||||||||||||||||||||||||
| Share-Based Compensation Expense | 2.7 | 2.6 | 8.2 | 10.0 | ||||||||||||||||||||||||||
| Change in Operating Assets and Liabilities | 17.1 | 51.8 | 53.7 | (10.7) | ||||||||||||||||||||||||||
| Net Cash Provided by Operating Activities | 120.3 | 140.6 | 309.9 | 271.2 | ||||||||||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||||||
| Additions to Property, Plant and Equipment | (9.3) | (21.1) | (29.7) | (77.3) | ||||||||||||||||||||||||||
| Proceeds Received from Sales of Property, Plant and Equipment | 2.3 | — | 7.6 | 1.7 | ||||||||||||||||||||||||||
| Proceeds Received from Disposal of Businesses | — | 21.4 | 0.3 | 159.6 | ||||||||||||||||||||||||||
| Net Cash (Used in) Provided by Investing Activities | (7.0) | 0.3 | (21.8) | 84.0 | ||||||||||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||||||
| Net Repayments Under Revolving Credit Facility | (5.3) | (22.7) | (17.7) | (83.1) | ||||||||||||||||||||||||||
| Proceeds from Long-Term Debt | — | — | 0.1 | — | ||||||||||||||||||||||||||
| Repayments of Long-Term Debt | (50.0) | — | (50.2) | (24.2) | ||||||||||||||||||||||||||
| Dividends Paid to Shareholders | (12.2) | (12.6) | (36.5) | (36.6) | ||||||||||||||||||||||||||
| Proceeds from the Exercise of Stock Options | — | — | 0.2 | — | ||||||||||||||||||||||||||
| Repurchase of Common Stock | — | (94.2) | (25.0) | (150.1) | ||||||||||||||||||||||||||
| Distributions to Noncontrolling Interest | (0.1) | (1.5) | (2.8) | (1.8) | ||||||||||||||||||||||||||
| Shares Surrendered for Taxes | (0.8) | (0.5) | (3.3) | (8.0) | ||||||||||||||||||||||||||
| Net Cash Used in Financing Activities | (68.4) | (131.5) | (135.2) | (303.8) | ||||||||||||||||||||||||||
| EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 10.4 | (7.7) | 3.2 | (7.0) | ||||||||||||||||||||||||||
| Net Increase in Cash and Cash Equivalents | 55.3 | 1.7 | 156.1 | 44.4 | ||||||||||||||||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 432.2 | 291.3 | 331.4 | 248.6 | ||||||||||||||||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 487.5 | $ | 293.0 | $ | 487.5 | $ | 293.0 | ||||||||||||||||||||||
| SEGMENT INFORMATION | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Unaudited | ||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||
| Net Sales | $ | 218.5 | $ | 214.8 | $ | 138.8 | $ | 143.8 | $ | 234.0 | $ | 230.9 | $ | 166.9 | $ | 182.8 | $ | 758.2 | $ | 772.3 | ||||||||||
| Net Sales from Businesses Divested/to be Exited | — | — | — | — | — | (0.9) | — | — | — | (0.9) | ||||||||||||||||||||
| Adjusted Net Sales* | $ | 218.5 | $ | 214.8 | $ | 138.8 | $ | 143.8 | $ | 234.0 | $ | 230.0 | $ | 166.9 | $ | 182.8 | $ | 758.2 | $ | 771.4 | ||||||||||
| GAAP Operating Margin | 11.6 | % | 7.7 | % | 4.8 | % | (1.6) | % | 16.8 | % | 16.3 | % | 11.3 | % | 11.4 | % | 11.9 | % | 9.4 | % | ||||||||||
| Adjusted Operating Margin* | 12.0 | % | 8.9 | % | 6.7 | % | 0.6 | % | 17.1 | % | 17.1 | % | 12.8 | % | 11.9 | % | 12.8 | % | 10.5 | % | ||||||||||
| Components of Net Sales: | ||||||||||||||||||||||||||||||
| Organic Sales Growth* | 1.3 | % | (13.6) | % | (2.9) | % | (11.2) | % | 2.5 | % | (4.8) | % | (8.9) | % | (9.3) | % | (1.5) | % | (9.6) | % | ||||||||||
| Businesses Divested/to be Exited | — | % | (13.0) | % | — | % | (0.9) | % | (0.4) | % | (4.6) | % | — | % | (2.1) | % | (0.1) | % | (6.2) | % | ||||||||||
| Foreign Currency Impact | 0.5 | % | (1.0) | % | (0.6) | % | (1.2) | % | (0.8) | % | (0.2) | % | 0.2 | % | (0.6) | % | (0.2) | % | (0.7) | % | ||||||||||
| SEGMENT INFORMATION | ||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||
| Net Sales | $ | 593.8 | $ | 703.3 | $ | 389.0 | $ | 437.4 | $ | 622.3 | $ | 762.1 | $ | 521.4 | $ | 597.0 | $ | 2,126.5 | $ | 2,499.8 | ||||||||||
| Net Sales from Businesses Divested/to be Exited | — | (25.0) | — | — | — | (22.0) | — | (5.6) | — | (52.6) | ||||||||||||||||||||
| Adjusted Net Sales* | $ | 593.8 | $ | 678.3 | $ | 389.0 | $ | 437.4 | $ | 622.3 | $ | 740.1 | $ | 521.4 | $ | 591.4 | $ | 2,126.5 | $ | 2,447.2 | ||||||||||
| GAAP Operating Margin | 7.4 | % | 13.5 | % | 2.4 | % | (1.8) | % | 14.3 | % | 16.8 | % | 12.3 | % | 12.4 | % | 9.7 | % | 11.6 | % | ||||||||||
| Adjusted Operating Margin* | 8.8 | % | 9.5 | % | 4.0 | % | (0.2) | % | 15.1 | % | 16.8 | % | 14.1 | % | 13.0 | % | 11.1 | % | 10.8 | % | ||||||||||
| Components of Net Sales: | ||||||||||||||||||||||||||||||
| Organic Sales Growth | (12.0) | % | (7.4) | % | (9.4) | % | (10.5) | % | (15.3) | % | 0.4 | % | (11.5) | % | (2.2) | % | (12.4) | % | (4.5) | % | ||||||||||
| Acquisitions | — | % | 4.5 | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 1.2 | % | ||||||||||
| Businesses Divested/to be Exited | (3.1) | % | (11.8) | % | — | % | (0.8) | % | (2.4) | % | (3.5) | % | (0.8) | % | (1.4) | % | (1.8) | % | (5.0) | % | ||||||||||
| Foreign Currency Impact | (0.5) | % | (1.3) | % | (1.7) | % | (2.5) | % | (0.6) | % | (0.7) | % | (0.4) | % | (1.0) | % | (0.7) | % | (1.3) | % | ||||||||||
| ADJUSTED DILUTED EARNINGS PER SHARE | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||||||||
| GAAP Diluted Earnings Per Share | $ | 1.60 | $ | 1.19 | $ | 3.41 | $ | 4.75 | ||||||||||||||||||||||
| Restructuring and Related Costs | 0.12 | 0.14 | 0.43 | 0.24 | ||||||||||||||||||||||||||
| Loss (Gain) on Businesses Divested and Assets to be Exited | — | — | 0.08 | (0.70) | ||||||||||||||||||||||||||
| Loss on Sale of Assets | 0.01 | — | 0.01 | — | ||||||||||||||||||||||||||
| Net Loss (Income) from Businesses Divested/to be Exited | — | 0.02 | 0.01 | (0.08) | ||||||||||||||||||||||||||
| Executive Transition Costs | — | — | 0.05 | 0.03 | ||||||||||||||||||||||||||
| Adjusted Diluted Earnings Per Share | $ | 1.73 | $ | 1.35 | $ | 3.99 | $ | 4.24 | ||||||||||||||||||||||
| 2020 ADJUSTED ANNUAL GUIDANCE | Minimum | Maximum | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| 2020 Diluted EPS Annual Guidance | $ | 4.75 | $ | 4.95 | ||||||||||||||||||||||||||
| Restructuring and Related Costs | 0.55 | 0.55 | ||||||||||||||||||||||||||||
| Loss on Businesses Divested and Assets to be Exited | 0.08 | 0.08 | ||||||||||||||||||||||||||||
| Loss on Sale of Assets | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Net Loss from Businesses Divested/to be Exited | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Executive Transition Costs | 0.05 | 0.05 | ||||||||||||||||||||||||||||
| 2020 Adjusted Diluted EPS Annual Guidance | $ | 5.45 | $ | 5.65 | ||||||||||||||||||||||||||
| 2020 ADJUSTED FOURTH QUARTER GUIDANCE | Minimum | Maximum | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| 2020 Diluted EPS Fourth Quarter Guidance | $ | 1.34 | $ | 1.54 | ||||||||||||||||||||||||||
| Restructuring and Related Costs | 0.12 | 0.12 | ||||||||||||||||||||||||||||
| 2020 Adjusted Diluted EPS Fourth Quarter Guidance | $ | 1.46 | $ | 1.66 | ||||||||||||||||||||||||||
| ADJUSTED INCOME FROM OPERATIONS | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||
| GAAP Income (Loss) from Operations | $ | 25.3 | $ | 16.6 | $ | 6.6 | $ | (2.3) | $ | 39.2 | $ | 37.6 | $ | 18.9 | $ | 20.9 | $ | 90.0 | $ | 72.8 | ||||||||||
| Restructuring and Related Costs | 0.8 | 2.5 | 2.4 | 3.1 | 0.7 | 0.8 | 2.4 | 0.9 | 6.3 | 7.3 | ||||||||||||||||||||
| Loss on Businesses Divested and Assets to be Exited | — | 0.1 | — | — | — | 0.1 | — | — | — | 0.2 | ||||||||||||||||||||
| Loss on Sale of Assets | 0.2 | — | 0.3 | — | 0.2 | — | — | — | 0.7 | — | ||||||||||||||||||||
| Operating Loss from Businesses Divested/to be Exited | — | — | — | — | — | 0.9 | — | — | — | 0.9 | ||||||||||||||||||||
| Executive Transition Costs | — | — | — | 0.1 | — | — | — | — | — | 0.1 | ||||||||||||||||||||
| Adjusted Income from Operations | $ | 26.3 | $ | 19.2 | $ | 9.3 | $ | 0.9 | $ | 40.1 | $ | 39.4 | $ | 21.3 | $ | 21.8 | $ | 97.0 | $ | 81.3 | ||||||||||
| GAAP Operating Margin % | 11.6% | 7.7% | 4.8% | (1.6)% | 16.8% | 16.3% | 11.3% | 11.4% | 11.9% | 9.4% | ||||||||||||||||||||
| Adjusted Operating Margin % | 12.0% | 8.9% | 6.7% | 0.6% | 17.1% | 17.1% | 12.8% | 11.9% | 12.8% | 10.5% | ||||||||||||||||||||
| ADJUSTED INCOME (LOSS) FROM OPERATIONS | ||||||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||
| GAAP Income (Loss) from Operations | $ | 44.0 | $ | 95.2 | $ | 9.3 | $ | (7.9) | $ | 88.7 | $ | 128.2 | $ | 63.9 | $ | 73.9 | $ | 205.9 | $ | 289.4 | ||||||||||
| Restructuring and Related Costs | 4.9 | 4.8 | 5.3 | 5.5 | 3.1 | 1.5 | 9.5 | 1.4 | 22.8 | 13.2 | ||||||||||||||||||||
| Purchase Accounting and Transaction Costs | — | 0.1 | — | — | — | — | — | — | — | 0.1 | ||||||||||||||||||||
| Loss (Gain) on Businesses Divested and Assets to be Exited | 2.7 | (32.7) | 0.2 | 1.0 | 1.3 | (4.7) | — | 1.2 | 4.2 | (35.2) | ||||||||||||||||||||
| Loss (Gain) on Sale of Assets | 0.2 | — | 0.3 | — | 0.2 | — | (0.1) | — | 0.6 | — | ||||||||||||||||||||
| Operating (Income) Loss from Businesses Divested/to be Exited | — | (3.3) | — | — | 0.4 | (1.1) | — | (0.3) | 0.4 | (4.7) | ||||||||||||||||||||
| Executive Transition Costs | 0.5 | 0.5 | 0.4 | 0.4 | 0.5 | 0.5 | 0.4 | 0.4 | 1.8 | 1.8 | ||||||||||||||||||||
| Adjusted Income (Loss) from Operations | $ | 52.3 | $ | 64.6 | $ | 15.5 | $ | (1.0) | $ | 94.2 | $ | 124.4 | $ | 73.7 | $ | 76.6 | $ | 235.7 | $ | 264.6 | ||||||||||
| GAAP Operating Margin % | 7.4% | 13.5% | 2.4% | (1.8)% | 14.3% | 16.8% | 12.3% | 12.4% | 9.7% | 11.6% | ||||||||||||||||||||
| Adjusted Operating Margin % | 8.8% | 9.5% | 4.0% | (0.2)% | 15.1% | 16.8% | 14.1% | 13.0% | 11.1% | 10.8% | ||||||||||||||||||||
| DEBT TO EBITDA | Last Twelve Months | |||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| Sep 26, 2020 | Dec 28, 2019 | |||||||||||||||||||||||||||||
| Net Income | $ | 179.9 | $ | 242.6 | ||||||||||||||||||||||||||
| Interest Expense | 43.7 | 53.0 | ||||||||||||||||||||||||||||
| Interest Income | (5.4) | (5.6) | ||||||||||||||||||||||||||||
| Taxes | 53.2 | 61.2 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 133.0 | 134.5 | ||||||||||||||||||||||||||||
| EBITDA | $ | 404.4 | $ | 485.7 | ||||||||||||||||||||||||||
| Restructuring and Related Costs | 40.9 | 31.3 | ||||||||||||||||||||||||||||
| Purchase Accounting and Transactions Costs | — | 0.1 | ||||||||||||||||||||||||||||
| Impairment and Exit Related Costs | 4.3 | 10.0 | ||||||||||||||||||||||||||||
| Executive Transition Costs | 2.2 | 2.2 | ||||||||||||||||||||||||||||
| Operating Loss (Income) from Businesses Divested/to be Exited | 1.0 | (4.1) | ||||||||||||||||||||||||||||
| Gain on Sale of Assets | (3.2) | (3.8) | ||||||||||||||||||||||||||||
| Loss (Gain) on Divestiture of Businesses | 0.4 | (44.7) | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 450.0 | $ | 476.7 | ||||||||||||||||||||||||||
| Current Maturities of Long-Term Debt | $ | 230.6 | $ | 0.6 | ||||||||||||||||||||||||||
| Long-Term Debt | 840.2 | 1,136.9 | ||||||||||||||||||||||||||||
| Total Gross Debt | $ | 1,070.8 | $ | 1,137.5 | ||||||||||||||||||||||||||
| Cash | (487.5) | (331.4) | ||||||||||||||||||||||||||||
| Net Debt | $ | 583.3 | $ | 806.1 | ||||||||||||||||||||||||||
| Gross Debt/EBITDA | 2.6 | 2.3 | ||||||||||||||||||||||||||||
| Gross Debt/Adjusted EBITDA | 2.4 | 2.4 | ||||||||||||||||||||||||||||
| Net Debt/EBITDA | 1.4 | 1.7 | ||||||||||||||||||||||||||||
| Net Debt/Adjusted EBITDA | 1.3 | 1.7 | ||||||||||||||||||||||||||||
| FREE CASH FLOW | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||||||||
| Net Cash Provided by Operating Activities | $ | 120.3 | $ | 140.6 | $ | 309.9 | $ | 271.2 | ||||||||||||||||||||||
| Additions to Property Plant and Equipment | (9.3) | (21.1) | (29.7) | (77.3) | ||||||||||||||||||||||||||
| Free Cash Flow | $ | 111.0 | $ | 119.5 | $ | 280.2 | $ | 193.9 | ||||||||||||||||||||||
| GAAP Net Income Attributable to Regal Beloit Corporation | $ | 65.0 | $ | 49.7 | $ | 138.9 | $ | 202.2 | ||||||||||||||||||||||
| Loss (Gain) on Businesses Divested and Impairments | — | 0.2 | 4.2 | (35.2) | ||||||||||||||||||||||||||
| Tax Effect from Loss (Gain) on Businesses Divested and Impairments | — | — | (0.9) | 5.5 | ||||||||||||||||||||||||||
| Adjusted Net Income Attributable to Regal Beloit Corporation1 | $ | 65.0 | $ | 49.9 | $ | 142.2 | $ | 172.5 | ||||||||||||||||||||||
| Free Cash Flow as a Percentage of Adjusted Net Income Attributable to Regal Beloit Corporation | 170.8 | % | 239.5 | % | 197.0 | % | 112.4 | % | ||||||||||||||||||||||
| 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 | Nine Months Ended | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| Sep 26,<br>2020 | Sep 28,<br>2019 | Sep 26,<br>2020 | Sep 28,<br>2019 | |||||||||||||||||||||||||||
| Income before Taxes | $ | 83.4 | $ | 60.7 | $ | 181.8 | $ | 252.5 | ||||||||||||||||||||||
| Provision for Income Taxes | 17.1 | 9.9 | 39.5 | 47.5 | ||||||||||||||||||||||||||
| Effective Tax Rate | 20.5 | % | 16.3 | % | 21.7 | % | 18.8 | % | ||||||||||||||||||||||
| Income before Taxes | $ | 83.4 | $ | 60.7 | $ | 181.8 | $ | 252.5 | ||||||||||||||||||||||
| Loss (Gain) on Businesses Divested and Assets to be Exited | — | 0.2 | 4.2 | (35.2) | ||||||||||||||||||||||||||
| Adjusted Income before Taxes | $ | 83.4 | $ | 60.9 | $ | 186.0 | $ | 217.3 | ||||||||||||||||||||||
| Provision for Income Taxes | $ | 17.1 | $ | 9.9 | $ | 39.5 | $ | 47.5 | ||||||||||||||||||||||
| Tax Effect from Loss (Gain) on Businesses Divested and Assets to be Exited | — | — | 0.9 | (5.5) | ||||||||||||||||||||||||||
| Non-deductible Portion of Executive Transition Costs | — | — | (0.5) | — | ||||||||||||||||||||||||||
| Adjusted Provision for Income Taxes | $ | 17.1 | $ | 9.9 | $ | 39.9 | $ | 42.0 | ||||||||||||||||||||||
| Adjusted Effective Tax Rate | 20.5 | % | 16.3 | % | 21.5 | % | 19.3 | % | ||||||||||||||||||||||
| ORGANIC SALES GROWTH | Three Months Ended | |||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||
| September 26, 2020 | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Net Sales Three Months Ended Sep 26, 2020 | $ | 218.5 | $ | 138.8 | $ | 234.0 | $ | 166.9 | $ | 758.2 | ||||||||||||||||||||
| Impact from Foreign Currency Exchange Rates | (1.0) | 0.9 | 1.8 | (0.4) | 1.3 | |||||||||||||||||||||||||
| Organic Sales Three Months Ended Sep 26, 2020 | $ | 217.5 | $ | 139.7 | $ | 235.8 | $ | 166.5 | $ | 759.5 | ||||||||||||||||||||
| Net Sales Three Months Ended Sep 28, 2019 | $ | 214.8 | $ | 143.8 | $ | 230.9 | $ | 182.8 | $ | 772.3 | ||||||||||||||||||||
| Net Sales from Businesses Divested/to be Exited | — | — | (0.9) | — | (0.9) | |||||||||||||||||||||||||
| Adjusted Net Sales Three Months Ended Sep 28, 2019 | $ | 214.8 | $ | 143.8 | $ | 230.0 | $ | 182.8 | $ | 771.4 | ||||||||||||||||||||
| Three Months Ended Sep 26, 2020 Organic Sales Growth % | 1.3 | % | (2.9) | % | 2.5 | % | (8.9) | % | (1.5) | % | ||||||||||||||||||||
| Three Months Ended Sep 26, 2020 Net Sales Growth % | 1.7 | % | (3.5) | % | 1.3 | % | (8.7) | % | (1.8) | % | ||||||||||||||||||||
| ORGANIC SALES GROWTH | Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2020 | ||||||||||||||||||||||||||||||
| Commercial Systems | Industrial Systems | Climate Solutions | Power Transmission Solutions | Total Regal | ||||||||||||||||||||||||||
| Net Sales Nine Months Ended Sep 26, 2020 | $ | 593.8 | $ | 389.0 | $ | 622.3 | $ | 521.4 | $ | 2,126.5 | ||||||||||||||||||||
| Impact from Foreign Currency Exchange Rates | 3.4 | 7.3 | 4.6 | 2.1 | 17.4 | |||||||||||||||||||||||||
| Organic Sales Nine Months Ended Sep 26, 2020 | $ | 597.2 | $ | 396.3 | $ | 626.9 | $ | 523.5 | $ | 2,143.9 | ||||||||||||||||||||
| Net Sales Nine Months Ended Sep 28, 2019 | $ | 703.3 | $ | 437.4 | $ | 762.1 | $ | 597.0 | $ | 2,499.8 | ||||||||||||||||||||
| Net Sales from Businesses Divested/to be Exited | (25.0) | — | (22.0) | (5.6) | (52.6) | |||||||||||||||||||||||||
| Adjusted Net Sales Nine Months Ended Sep 28, 2019 | $ | 678.3 | $ | 437.4 | $ | 740.1 | $ | 591.4 | $ | 2,447.2 | ||||||||||||||||||||
| Nine Months Ended Sep 26, 2020 Organic Sales Growth % | (12.0) | % | (9.4) | % | (15.3) | % | (11.5) | % | (12.4) | % | ||||||||||||||||||||
| Nine Months Ended Sep 26, 2020 Net Sales Growth % | (15.6) | % | (11.1) | % | (18.3) | % | (12.7) | % | (14.9) | % |
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,<br>2019 | Jun 29,<br>2019 | Sep 28,<br>2019 | Dec 28,<br>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 |
a3q20callslidesfinal
October 29, 2020 Third Quarter 2020 Earnings 3Q CONFERENCE CALL Louis Pinkham Rob Rehard Chief Executive Officer Vice President Chief Financial Officer
3Q 2020 CAUTIONARY STATEMENT The following is a cautionary statement made under the Private Securities Litigation Reform Act of 1995: rates, inflation rates, interest rates, recession, government policies, including policy changes affecting With the exception of historical facts, the statements contained in this presentation may be forward-looking taxation, trade, tariffs, immigration, customs, border actions and the like, and other external factors that we statements. Forward-looking statements represent our management’s judgment regarding future events. In cannot control; product liability and other litigation, or claims by end users, government agencies or others many cases, you can identify forward-looking statements by terminology such as “may,” “will,” “expect,” that our products or our customers’ applications failed to perform as anticipated, particularly in high volume “intend,” “estimate,” “forecast,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative of applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated these terms or other similar words. These forward-looking statements are not guarantees of future liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or performance and are subject to risks, uncertainties, assumptions and other factors, some of which are divestitures; unanticipated costs or expenses we may incur related to product warranty issues; our beyond our control, which could cause actual results to differ materially from those expressed or implied by dependence on key suppliers and the potential effects of supply disruptions; infringement of our intellectual such forward-looking statements, including but not limited to: the continued financial and operational property by third parties, challenges to our intellectual property, and claims of infringement by us of third impacts of and uncertainties relating to the COVID-19 pandemic on us and our customers and suppliers and party technologies; effects on earnings of any significant impairment of goodwill or intangible assets; losses the geographies in which we operate; uncertainties regarding our ability to execute our restructuring plans from failures, breaches, attacks or disclosures involving our information technology infrastructure and data; within expected costs and timing; actions taken by our competitors and our ability to effectively compete in cyclical downturns affecting the global market for capital goods; and other risks and uncertainties including the increasingly competitive global electric motor, drives and controls, power generation and power but not limited to those described in “Item 1A-Risk Factors” of the Company’s Annual Report on Form 10-K transmission industries; our ability to develop new products based on technological innovation, such as the filed with the U.S. Securities and Exchange Commission on February 26, 2020 and from time to time in other Internet of Things, and marketplace acceptance of new and existing products, including products related to filed reports including the Company’s Quarterly Reports on Form 10-Q. All subsequent written and oral technology not yet adopted or utilized in certain geographic locations in which we do business; fluctuations forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in in commodity prices and raw material costs; our dependence on significant customers; risks associated with their entirety by the applicable cautionary statements. The forward-looking statements included in this global manufacturing, including risks associated with public health crises; issues and costs arising from the presentation are made only as of their respective dates, and we undertake no obligation to update these integration of acquired companies and businesses and the timing and impact of purchase accounting statements to reflect subsequent events or circumstances. 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 ©2020 Regal Beloit Corporation 2
3Q 2020 NON-GAAP FINANCIAL MEASURES We prepare financial statements in accordance with accounting principles generally accepted percentage of adjusted net income attributable to Regal Beloit Corporation, adjusted income in the United States of America (“GAAP”). We also periodically disclose certain financial before taxes, adjusted provision for income taxes, adjusted effective tax rate, net sales from measures in our quarterly earnings releases, on investor conference calls, and in investor ongoing business, adjusted income from operations of ongoing business, ongoing business presentations and similar events that may be considered “non-GAAP” financial measures. This adjusted operating margin and adjusted diluted earnings per share for ongoing business are additional information is not meant to be considered in isolation or as a substitute for our primarily used to help us evaluate our business and forecast our future results. Accordingly, we results of operations prepared and presented in accordance with GAAP. believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. In this presentation, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables in the appendix to the most directly comparable GAAP financial In addition to these non-GAAP measures, we also use the term “organic sales” to refer to GAAP measures: adjusted diluted earnings per share (both historical and projected), adjusted income sales from existing operations excluding any sales from acquired businesses recorded prior to from operations, adjusted operating margin, adjusted net sales, net debt, adjusted EBITDA, the first anniversary of the acquisition (“net sales from business acquired") and excluding any adjusted operating leverage, adjusted net income attributable to Regal Beloit Corporation, free sales from business divested/to be exited (“net sales from business divested/to be exited“) cash flow, free cash flow as a percentage of adjusted net income attributable to Regal Beloit recorded prior to the first anniversary of the exit and excluding the impact of foreign currency Corporation, adjusted income before taxes, adjusted provision for income taxes, adjusted translation. The impact of foreign currency translation is determined by translating the effective tax rate, net sales from ongoing business, adjusted income from operations of respective period’s organic sales using the currency exchange rates that were in effect during ongoing business, ongoing business adjusted operating margin, and adjusted diluted earnings the prior year periods. We use the term “organic sales growth” to refer to the increase in our per share for ongoing business. We believe that these non-GAAP financial measures are useful sales between periods that is attributable to organic sales. For further clarification, we may use measures for providing investors with additional information regarding our results of the term “acquisition growth” to refer to the increase in our sales between periods that is operations and for helping investors understand and compare our operating results across attributable to acquisition sales. 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 ©2020 Regal Beloit Corporation 3
3Q 2020 AGENDA Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2020 Results & 4Q 2020 Outlook ROB REHARD, CFO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO ©2020 Regal Beloit Corporation 4
3Q 2020 CEO COMMENTARY AND OVERVIEW • Sales Down 1.5% on an Organic Basis ($ in millions, except per share data) 3Q 2019 3Q 2020 • Moderating Headwinds From COVID-19 • 80/20 Pruning Initiatives Reduced Sales by ~200bps Adjusted Net Sales* $771.4 $758.2 • Operating Margin Up 230bps On Cost-Out Initiatives And Mix Adjusted Income from $81.3 $97.0 • Operating Income Up 19.3% On Sales Down 1.8% Operations* • Strong Free Cash Flow of $111M Adjusted Operating Margin* 10.5% 12.8% • FCF Conversion at 171% • Order Rates Turn Positive Adjusted Diluted EPS* $1.35 $1.73 • Orders for Jul./Aug./Sep./Oct. QTD of (6%)/+4%/+2%/+11% • N.A. HVAC Orders in Aug./Sep./Oct. QTD +12%/+27%/+22% Free Cash Flow* $119.5 $111.0 • Pump Orders +32% in 3Q, +38% in Oct. QTD * Non-GAAP Financial Measurement, See Appendix for Reconciliation. ©2020 Regal Beloit Corporation 5
3Q 2020 AGENDA Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2020 Results & 4Q 2020 Outlook ROB REHARD, CFO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO ©2020 Regal Beloit Corporation 6
3Q 2020 COMMERCIAL SYSTEMS Sales Adjusted Net Sales* Adjusted Income • Organic Sales* Up 1.3% ($ Millions) from Operations* • Key Drivers ($ Millions) + Pool + China Share Gain + N.A. Non-Res (C-HVAC) $214.8 $218.5 – Mexico Output Challenges ‒ 80/20 Account Pruning (~2.0%) Adjusted Operating Margin* $26.3 • 12.0% of Adj. Net Sales • Up 310 bps from Prior Year $19.2 + Price/cost + Mix ‒ Expedited Freight 3Q19 3Q20 3Q19 3Q20 * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Return To Growth, Favorable Price/Cost & Mix Drive Solid Margin Gains ©2020 Regal Beloit Corporation 7
3Q 2020 INDUSTRIAL SYSTEMS Sales Adjusted Net Sales* Adjusted Income • Organic Sales* Down 2.9% ($ Millions) from Operations* • Key Drivers ($ Millions) – General Industrial (N.A., APAC) – Oil & Gas – 80/20 Account Pruning (~1.8%) + Data Centers $9.3 $143.8 $138.8 Adjusted Operating Margin* • 6.7% of Adj. Net Sales • Up 610 bps from Prior Year + Cost Reductions + N.A. Supply Chain Optimization + Mix $0.9 + Price/Material Costs – Volume 3Q19 3Q20 3Q19 3Q20 * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Cost Reductions & Mix Drive Margin Gains; Significant Mid-Term Upside Remains ©2020 Regal Beloit Corporation 8
3Q 2020 CLIMATE SOLUTIONS Sales Adjusted Net Sales* Adjusted Income • Organic Sales* Up 2.5% ($ Millions) from Operations* • Key Drivers ($ Millions) + N.A. HVAC – 80/20 Pruning (~3.0%) $230.0 $234.0 – Commercial Refrigeration – Light C-HVAC $39.4 $40.1 Adjusted Operating Margin* • 17.1% of Adj. Net Sales • Flat with Prior Year + Mix (Distribution, ECM, pruning) + Cost Actions + Volume – FX – Expedited Freight 3Q19 3Q20 3Q19 3Q20 – Price/Cost * Non-GAAP Financial Measurement, See Appendix for Reconciliation. HVAC Orders Rebound, With Solid Momentum Remaining ©2020 Regal Beloit Corporation 9
3Q 2020 POWER TRANSMISSION SOLUTIONS Sales Adjusted Net Sales* Adjusted Income • Organic Sales* Down 8.9% ($ Millions) from Operations* • Key Drivers ($ Millions) – N.A. General Industrial – Upstream Oil & Gas – Alternative Energy lumpiness – 80/20 Account Pruning (~0.7%) $182.8 $166.9 + Unit handling (Modsort share gain) Adjusted Operating Margin* • 12.8% of Adj. Net Sales $21.8 $21.3 • Up 90 bps from Prior Year + Price/Cost + Cost Reductions + Mix – Volume 3Q19 3Q20 3Q19 3Q20 * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Margins Up On Down Sales; Deleverage of 3.1%; Short Cycle Industrial Recovery Still Ahead ©2020 Regal Beloit Corporation 10
3Q 2020 KEY FINANCIAL METRICS Capital Expenditures Balance Sheet as September 26, 2020 • $9.3 Million in 3Q 2020 • Total Debt of $1,070.8 Million • $45.0 Million Expected in FY 2020 • Net Debt of $583.3 Million • Down $110.2 Million from 2Q 2020 Effective Tax Rate (ETR) • Net Debt/Adj. EBITDA* of 1.3 • 20.5% Adj. ETR* in 3Q 2020 • 21.0% Adj. ETR* Expected in FY 2020 Free Cash Flow* Restructuring & Related Costs • $111.0 Million in 3Q 2020 • $6.3 Million in 3Q 2020 • Q3 Conversion of 170.8% • $29.0 Million Expected in FY 2020 • YTD Conversion of 197.0% • No Shares Purchased in 3Q 2020 • Ending Pause on Share Purchases • Remaining authorization $210M * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Net Leverage At 1.3x; Ending Pause On Share Purchases ©2020 Regal Beloit Corporation 11
3Q 2020 4Q 2020 OUTLOOK Introducing 4Q 2020 Guidance • Adjusted Diluted Earnings per Share* in a Range of $1.46 to $1.66 for 4Q, Up Almost 25% Y/Y at the Mid-Point • Implies Adjusted Diluted Earnings per Share in a Range of $5.45 to $5.65 for FY 2020, Up Y/Y at the Mid-Point Other FY 2020 Modeling Assumptions • Net Interest Expense of ~$35 Million • Capital Expenditures of ~$45 Million • Depreciation & Amortization Expense of ~$132 Million • Effective Tax Rate of ~21% • Restructuring & Related Expense of ~$29 Million • Expect FCF > 150% of Adj. Net Income * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Expect EPS Growth For 2020, Despite COVID-19 Headwinds…Building Momentum Into 2021 ©2020 Regal Beloit Corporation 12
3Q 2020 AGENDA Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2020 Results & 4Q 2020 Outlook ROB REHARD, CFO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO ©2020 Regal Beloit Corporation 13
3Q Appendix
3Q 2020 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Nine Months Ended Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 GAAP Diluted Earnings Per Share $ 1.60 $ 1.19 $ 3.41 $ 4.75 Restructuring and Related Costs 0.12 0.14 0.43 0.24 Loss (Gain) on Businesses Divested and Assets to be Exited — — 0.08 (0.70) Loss on Sales of Assets 0.01 — 0.01 — Net Loss (Income) from Businesses Divested/to be Exited — 0.02 0.01 (0.08) Executive Transition Costs — — 0.05 0.03 Adjusted Diluted Earnings Per Share $ 1.73 $ 1.35 $ 3.99 $ 4.24 ©2020 Regal Beloit Corporation 15
3Q 2020 APPENDIX 2020 ADJUSTED ANNUAL GUIDANCE Minimum Maximum 2020 Diluted EPS Annual Guidance $ 4.75 $ 4.95 Restructuring and Related Costs 0.55 0.55 Loss on Businesses Divested and Assets to be Exited 0.08 0.08 Loss on Sales of Assets 0.01 0.01 Net Loss from Businesses Divested/to be Exited 0.01 0.01 Executive Transition Costs 0.05 0.05 2020 Adjusted Diluted EPS Annual Guidance $ 5.45 $ 5.65 2020 ADJUSTED FOURTH QUARTER GUIDANCE Minimum Maximum 2020 Diluted EPS Fourth Quarter Guidance $ 1.34 $ 1.54 Restructuring and Related Costs 0.12 0.12 2020 Adjusted Diluted EPS Fourth Quarter Guidance $ 1.46 $ 1.66 ©2020 Regal Beloit Corporation 16
3Q 2020 APPENDIX Three Months Ended Power Commercial Transmission ADJUSTED INCOME FROM OPERATIONS Syste ms Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 GAAP Income (Loss) from Operations $ 25.3 $ 16.6 $ 6.6 $ (2.3) $ 39.2 $ 37.6 $ 18.9 $ 20.9 $ 90.0 $ 72.8 Restructuring and Related Costs 0.8 2.5 2.4 3.1 0.7 0.8 2.4 0.9 6.3 7.3 Loss on Businesses Divested and Assets to be Exited - 0.1 - - - 0.1 - - - 0.2 Loss on Sale of Assets 0.2 - 0.3 - 0.2 - - - 0.7 - Operating Loss from Businesses Divested/to be Exited - - - - - 0.9 - - - 0.9 Executive Transition Costs - - - 0.1 - - - - - 0.1 Adjusted Income from Operations $ 26.3 $ 19.2 $ 9.3 $ 0.9 $ 40.1 $ 39.4 $ 21.3 $ 21.8 $ 97.0 $ 81.3 GAAP Operating Margin % 11.6 % 7.7 % 4.8 % (1.6)% 16.8 % 16.3 % 11.3 % 11.4 % 11.9 % 9.4 % Adjusted Operating Margin % 12.0 % 8.9 % 6.7 % 0.6 % 17.1 % 17.1 % 12.8 % 11.9 % 12.8 % 10.5 % Nine Months Ended Power Commercial Transmission ADJUSTED INCOME (LOSS) FROM OPERATIONS Syste ms Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 GAAP Income (Loss) from Operations $ 44.0 $ 95.2 $ 9.3 $ (7.9) $ 88.7 $ 128.2 $ 63.9 $ 73.9 $ 205.9 $ 289.4 Restructuring and Related Costs 4.9 4.8 5.3 5.5 3.1 1.5 9.5 1.4 22.8 13.2 Purchase Accounting and Transaction Costs - 0.1 - - - - - - - 0.1 Loss (Gain) on Businesses Divested and Assets to be Exited 2.7 (32.7) 0.2 1.0 1.3 (4.7) - 1.2 4.2 (35.2) Loss (Gain) on Sale of Assets 0.2 - 0.3 - 0.2 - (0.1) - 0.6 - Operating (Income) Loss from Businesses Divested/to be Exited - (3.3) - - 0.4 (1.1) - (0.3) 0.4 (4.7) Executive Transition Costs 0.5 0.5 0.4 0.4 0.5 0.5 0.4 0.4 1.8 1.8 Adjusted Income (Loss) from Operations $ 52.3 $ 64.6 $ 15.5 $ (1.0) $ 94.2 $ 124.4 $ 73.7 $ 76.6 $ 235.7 $ 264.6 GAAP Operating Margin % 7.4 % 13.5 % 2.4 % (1.8)% 14.3 % 16.8 % 12.3 % 12.4 % 9.7 % 11.6 % Adjusted Operating Margin % 8.8 % 9.5 % 4.0 % (0.2)% 15.1 % 16.8 % 14.1 % 13.0 % 11.1 % 10.8 % ©2020 Regal Beloit Corporation 17
3Q 2020 APPENDIX Three Months Ended Commercial Power Transmission ADJUSTED NET SALES Syste ms Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Net Sales $ 218.5 $ 214.8 $ 138.8 $ 143.8 $ 234.0 $ 230.9 $ 166.9 $ 182.8 $ 758.2 $ 772.3 Nets Sales from Businesses Divested/to be Exited - - - - - (0.9) - - - (0.9) Adjusted Net Sales $ 218.5 $ 214.8 $ 138.8 $ 143.8 $ 234.0 $ 230.0 $ 166.9 $ 182.8 $ 758.2 $ 771.4 Nine Months Ended Commercial Power Transmission ADJUSTED NET SALES Syste ms Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Net Sales $ 593.8 $ 703.3 $ 389.0 $ 437.4 $ 622.3 $ 762.1 $ 521.4 $ 597.0 $ 2,126.5 $ 2,499.8 Nets Sales from Businesses Divested/to be Exited - (25.0) - - - (22.0) - (5.6) - (52.6) Adjusted Net Sales $ 593.8 $ 678.3 $ 389.0 $ 437.4 $ 622.3 $ 740.1 $ 521.4 $ 591.4 $ 2,126.5 $ 2,447.2 ©2020 Regal Beloit Corporation 18
3Q 2020 APPENDIX ADJUSTED EFFECTIVE TAX RATE Three Months Ended Nine Months Ended (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 Income before Taxes $ 83.4 $ 60.7 $ 181.8 $ 252.5 Provision for Income Taxes 17.1 9.9 39.5 47.5 Effective Tax Rate 20.5% 16.3% 21.7% 18.8% Income before Taxes $ 83.4 $ 60.7 $ 181.8 $ 252.5 Loss (Gain) on Businesses Divested and Assets to be Exited - 0.2 4.2 (35.2) Adjusted Income before Taxes $ 83.4 $ 60.9 $ 186.0 $ 217.3 Provision for Income Taxes $ 17.1 $ 9.9 $ 39.5 $ 47.5 Tax Effect from Loss (Gain) on Businesses Divested and Assets to be Exited - - 0.9 (5.5) Non-deductible Portion of Executive Transition Costs - - (0.5) - Adjusted Provision for Income Taxes $ 17.1 $ 9.9 $ 39.9 $ 42.0 Adjusted Effective Tax Rate 20.5% 16.3% 21.5% 19.3% ©2020 Regal Beloit Corporation 19
3Q 2020 APPENDIX Three Months Nine Months FREE CASH FLOW Ended Ended (Dollars in Millions) Sep 26, Sep 28, Sep 26, Sep 28, 2020 2019 2020 2019 Net Cash Provided by Operating Activities $ 120.3 $ 140.6 $ 309.9 $ 271.2 Additions to Property Plant and Equipment (9.3) (21.1) (29.7) (77.3) Free Cash Flow $ 111.0 $ 119.5 $ 280.2 $ 193.9 GAAP Net Income Attributable to Regal Beloit Corporation $ 65.0 $ 49.7 $ 138.9 $ 202.2 Loss (Gain) on Businesses Divested and Impairments - 0.2 4.2 (35.2) Tax Effect from Loss (Gain) on Businesses Divested and Impairments - - (0.9) 5.5 Adjusted Net Income Attributable to Regal Beloit Corporation $ 65.0 $ 49.9 $ 142.2 $ 172.5 Free Cash Flow as a Percentage of Adjusted Net Income Attributable to Regal Beloit Corporation 170.8 % 239.5 % 197.0 % 112.4 % ©2020 Regal Beloit Corporation 20
3Q 2020 APPENDIX ORGANIC SALES GROWTH Three Months Ended (Dollars in Millions) Power Commercial Industrial Climate Transmission Syste ms Syste ms Solutions Solutions Total Regal Net Sales Three Months Ended Sep 26, 2020 $ 218.5 $ 138.8 $ 234.0 $ 166.9 $ 758.2 Impact from Foreign Currency Exchange Rates (1.0) 0.9 1.8 (0.4) 1.3 Organic Sales Three Months Ended Sep 26, 2020 $ 217.5 $ 139.7 $ 235.8 $ 166.5 $ 759.5 Net Sales Three Months Ended Sep 28, 2019 $ 214.8 $ 143.8 $ 230.9 $ 182.8 $ 772.3 Net Sales from Business Divested/to be Exited - - (0.9) - (0.9) Adjusted Net Sales Three Months Ended Sep 28, 2019 $ 214.8 $ 143.8 $ 230.0 $ 182.8 $ 771.4 Organic Sales Growth % 1.3 % (2.9)% 2.5 % (8.9)% (1.5)% Net Sales Growth % 1.7 % (3.5)% 1.3 % (8.7)% (1.8)% ORGANIC SALES GROWTH Nine Months Ended (Dollars in Millions) Power Commercial Industrial Climate Transmission Syste ms Syste ms Solutions Solutions Total Regal Net Sales Nine Months Ended Sep 26, 2020 $ 593.8 $ 389.0 $ 622.3 $ 521.4 $ 2,126.5 Impact from Foreign Currency Exchange Rates 3.4 7.3 4.6 2.1 17.4 Organic Sales Nine Months Ended Sep 26, 2020 $ 597.2 $ 396.3 $ 626.9 $ 523.5 $ 2,143.9 Net Sales Nine Months Ended Sep 28, 2019 $ 703.3 $ 437.4 $ 762.1 $ 597.0 $ 2,499.8 Net Sales from Business Divested/to be Exited (25.0) - (22.0) (5.6) (52.6) Adjusted Net Sales Nine Months Ended Sep 28, 2019 $ 678.3 $ 437.4 $ 740.1 $ 591.4 $ 2,447.2 Organic Sales Growth % (12.0)% (9.4)% (15.3)% (11.5)% (12.4)% Net Sales Growth % (15.6)% (11.1)% (18.3)% (12.7)% (14.9)% ©2020 Regal Beloit Corporation 21
3Q 2020 APPENDIX OPERATING LEVERAGE-POWER TRANSMISSION SOLUTIONS Three Months Ended (Dollars in Millions) Sep 26, Sep 28, 2020 2019 Change GAAP Income from Operations $ 18.9 $ 20.9 $ (2.0) Adjusted Income from Operations $ 21.3 $ 21.8 $ (0.5) Net Sales $ 166.9 $ 182.8 $ (15.9) Adjusted Net Sales $ 166.9 $ 182.8 $ (15.9) GAAP Operating Leverage 12.6 % Adjusted Operating Leverage 3.1 % ©2020 Regal Beloit Corporation 22
3Q 2020 APPENDIX TOTAL GROSS DEBT/EBITDA TOTAL GROSS DEBT/ADJUSTED EBITDA (Dollars in Millions) (Dollars in Millions) LTM Sep 26, LTM Sep 26, 2020 2020 Net Income $ 179.9 Net Income $ 179.9 Plus: Taxes 53.2 Plus: Taxes 53.2 Plus: Interest Expense 43.7 Plus: Interest Expense 43.7 Less: Interest Income (5.4) Less: Interest Income (5.4) Plus: Depreciation and Amortization 133.0 Plus: Depreciation and Amortization 133.0 Plus: Restructuring and Related Costs 40.9 EBITDA $ 404.4 Plus: Impairment and Exit Related Costs 4.3 Plus: Executive Transition Costs 2.2 Current Maturities of Debt $ 230.6 Plus: Operating Loss from Businesses Divested/to be Exited 1.0 Long-Term Debt 840.2 Less: Gain on Sale of Assets (3.2) Total Gross Debt $ 1,070.8 Less: Gain on Divestiture of Business 0.4 Adjusted EBITDA $ 450.0 Total Gross Debt/EBITDA 2.6 Current Maturities of Debt $ 230.6 Long-Term Debt 840.2 Total Gross Debt $ 1,070.8 Total Gross Debt/Adjusted EBITDA 2.4 ©2020 Regal Beloit Corporation 23
3Q 2020 APPENDIX TOTAL NET DEBT/EBITDA TOTAL NET DEBT/ADJUSTED EBITDA (Dollars in Millions) (Dollars in Millions) LTM Sep 26, LTM Sep 26, 2020 2020 Net Income $ 179.9 Net Income $ 179.9 Plus: Taxes 53.2 Plus: Taxes 53.2 Plus: Interest Expense 43.7 Plus: Interest Expense 43.7 Less: Interest Income (5.4) Less: Interest Income (5.4) Plus: Depreciation and Amortization 133.0 Plus: Depreciation and Amortization 133.0 Plus: Restructuring and Related Costs 40.9 EBITDA $ 404.4 Plus: Impairment and Exit Related Costs 4.3 Plus: Executive Transition Costs 2.2 Current Maturities of Debt $ 230.6 Plus: Operating Loss from Businesses Divested/to be Exited 1.0 Long-Term Debt 840.2 Less: Gain on Sale of Assets (3.2) Less: Cash (487.5) Less: Gain on Divestiture of Business 0.4 Total Net Debt $ 583.3 Adjusted EBITDA $ 450.0 Total Net Debt/EBITDA 1.4 Current Maturities of Debt $ 230.6 Long-Term Debt 840.2 Less: Cash (487.5) Total Net Debt $ 583.3 Total Net Debt/Adjusted EBITDA 1.3 ©2020 Regal Beloit Corporation 24
3Q 2020 APPENDIX 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. Power Commercial Industrial Climate Transmission Syste ms Syste ms Solutions 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) Adjusted 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) Operating Income from 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) Adjusted 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 Purchase Accounting and Transaction Costs - - - - - (Gain) Loss on Businesses Divested and Assets to be Exited 1.8 - (6.1) 0.1 (4.2) Operating Income from 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 % ©2020 Regal Beloit Corporation 25
3Q 2020 APPENDIX Power Commercial Industrial Climate Transmission Syste ms Syste ms Solutions 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) Adjusted 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 Purchase Accounting and Transaction Costs - - - - - Loss on Businesses Divested and Assets to be Exited 0.1 - 0.1 - 0.2 Operating Income from 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 GAAP Operating Margin % 7.7% -1.6% 16.3% 11.4% 9.4% 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 $ 175.9 $ 120.6 $ 178.2 $ 159.4 $ 634.1 Net Sales from Businesses Divested/to be Exited - - - - - Adjusted Net Sales from Ongoing Business $ 175.9 $ 120.6 $ 178.2 $ 159.4 $ 634.1 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 Operating (Income) 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 of Ongoing Business $ 15.1 $ 1.6 $ 35.3 $ 25.5 $ 77.5 Ongoing Business Adjusted Operating Margin % 8.6% 1.3% 19.8% 16.0% 12.2% ©2020 Regal Beloit Corporation 26
3Q 2020 APPENDIX Power Commercial Industrial Climate Transmission Syste ms Syste ms Solutions Solutions Total Regal Fiscal 2019 Twelve Months Ended for Ongoing Business Net Sales Twelve Months Ended December 28, 2019 $ 879.2 $ 558.0 $ 940.3 $ 756.4 $ 3,133.9 Net Sales from Businesses Divested/to be Exited (25.0) - (22.0) (5.6) (52.6) Adjusted Net Sales from Ongoing Business $ 854.2 $ 558.0 $ 918.3 $ 750.8 $ 3,081.3 GAAP Income (Loss) from Operations Nine 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) Operating Income from 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 % 9.3 % 0.1 % 17.4 % 13.6 % 11.1 % 2019 ADJUSTED DILUTED EARNINGS PER SHARE FOR ONGOING Twelve BUSINESS Three Months Ended Months Ended Dec Mar 30, 2019 Jun 29, 2019 Sep 28, 2019 Dec 28, 2019 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 ©2020 Regal Beloit Corporation 27
3Q 2020 APPENDIX Shipping 1Q 2Q 3Q 4Q FY Days 2014 63 63 63 64 253 2015 64 63 64 59 250 2016 64 64 63 60 251 2017 64 63 63 60 250 2018 63 64 63 61 251 2019 63 63 63 61 250 2020 63 63 63 64 253 . Regal operates on a 52/53 week fiscal year ending on the Saturday closest to December 31 . Fiscal Years 2015, 2016, 2017, 2018 and 2019 have 52 weeks . Fiscal Year 2014 and 2020 have 53 weeks ©2020 Regal Beloit Corporation 28