rrx-20230908
0000082811false00000828112023-09-082023-09-08

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):    September 8, 2023
_______________________

              Regal Rexnord Corporation             
(Exact name of registrant as specified in its charter)
Wisconsin1-728339-0875718
(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 classTrading symbolName of each exchange on which registered
Common StockRRXNew York Stock Exchange



Item 7.01    Regulation FD Disclosure.

        Regal Rexnord Corporation (the "Company" or “we”) is disclosing within Exhibit 99.1 of this Current Report certain selected unaudited pro forma financial information relating to the previously announced acquisition of Altra Industrial Motion Corp., a Delaware corporation ("Altra"). In addition, the Company has also included within Exhibit 99.1 information for the three-months ended June 30, 2023, which is consistent with the information presented in the Company's Current Report on Form 8-K filed on August 1, 2023 for the second quarter 2023 financial results.

The assumptions and related pro forma adjustments in the selected unaudited pro forma financial information presented within Exhibit 99.1 are consistent with those presented in the Company's Current Report on Form 8-K filed on June 5, 2023 in connection with the acquisition and related transactions and are inclusive of the measurement period adjustments included in the Company's Quarterly Report on Form 10-Q filed on August 4, 2023.

The selected unaudited pro forma information gives effect to the acquisition and related transactions as if they occurred on January 1, 2022.

These estimates should not be viewed as a substitute for full unaudited pro forma condensed consolidated financial statements prepared in accordance with Article 11 of Regulation S-X.

The pro forma information presented within Exhibit 99.1 does not reflect the Company's actual results or expectations of future performance, and the Company's actual future financial results may differ significantly from the pro forma information presented herein.

Non-GAAP Measures

We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also periodically disclose certain financial measures 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 the selected unaudited pro forma financial information presented within Exhibit 99.1, we disclose the following non-GAAP financial measures, and we reconcile these measures to the most directly comparable GAAP financial measures: adjusted net sales, proforma adjusted net sales, proforma EBITDA, adjusted EBITDA, proforma adjusted EBITDA, adjusted EBITDA margin, proforma adjusted EBITDA margin, adjusted income from operations, proforma adjusted income from operations, adjusted operating margin, and proforma adjusted operating margin. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed 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 use the term “organic sales growth” to refer to the increase in our sales between periods that is attributable to organic sales. “Organic sales” refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any 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.



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 
104.1Cover 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 REXNORD CORPORATION


Date: September 8, 2023           By: /s/ Thomas E. Valentyn                
Thomas E. Valentyn
Executive Vice President, General Counsel and Secretary
















SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended June 30, 2023
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales$698.7 $460.1 $473.1 $136.7 $1,768.6 
Adjusted Net Sales$698.7 $460.1 $473.1 $136.7 $1,768.6 
GAAP Income from Operations40.259.848.63.0151.6
GAAP Operating Margin %5.8 %13.0 %10.3 %2.2 %8.6 %
Adjusted Income from Operations81.270.568.25.5225.4
Adjusted Operating Margin %11.6 %15.3 %14.4 %4.0 %12.7 %
Adjusted EBITDA164.785.8119.59.7379.7
Adjusted EBITDA Margin %23.6 %18.6 %25.3 %7.1 %21.5 %

PRO FORMA SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended March 31, 2023
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma Net Sales$648.9 $469.5 $419.8 $137.0 $1,675.2 
Pro Forma Adjusted Net Sales$648.9 $469.5 $419.8 $137.0 $1,675.2 
Pro Forma GAAP Income from Operations30.045.412.32.890.5
Pro Forma GAAP Operating Margin %4.6 %9.7 %2.9 %2.0 %5.4 %
Pro Forma Adjusted Income from Operations75.250.136.95.1167.3
Pro Forma Adjusted Operating Margin %11.6 %10.7 %8.8 %3.7 %10.0 %
Pro Forma Adjusted EBITDA159.664.493.99.2327.1
Pro Forma Adjusted EBITDA Margin %24.6 %13.7 %22.4 %6.7 %19.5 %
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PRO FORMA SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended December 31, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma Net Sales$651.6 $495.5 $431.4 $135.6 $1,714.1 
Pro Forma Adjusted Net Sales$651.6 $495.5 $431.4 $135.6 $1,714.1 
Pro Forma GAAP Income from Operations55.865.639.96.5167.8
Pro Forma GAAP Operating Margin %8.6 %13.2 %9.2 %4.8 %9.8 %
Pro Forma Adjusted Income from Operations81.175.152.710.9219.8
Pro Forma Adjusted Operating Margin %12.4 %15.2 %12.2 %8.0 %12.8 %
Pro Forma Adjusted EBITDA155.289.2102.914.7362.0
Pro Forma Adjusted EBITDA Margin %23.8 %18.0 %23.9 %10.8 %21.1 %
PRO FORMA SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended September 30, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma Net Sales$653.7 $569.1 $420.8 $148.0 $1,791.6 
Pro Forma Adjusted Net Sales$653.7 $569.1 $420.8 $148.0 $1,791.6 
Pro Forma GAAP Income from Operations77.770.936.911.8197.3
Pro Forma GAAP Operating Margin %11.9 %12.5 %8.8 %8.0 %11.0 %
Pro Forma Adjusted Income from Operations86.179.747.514.0227.3
Pro Forma Adjusted Operating Margin %13.2 %14.0 %11.3 %9.5 %12.7 %
Pro Forma Adjusted EBITDA163.294.395.417.6370.5
Pro Forma Adjusted EBITDA Margin %25.0 %16.6 %22.7 %11.9 %20.7 %
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PRO FORMA SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended June 30, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma Net Sales$675.0 $595.4 $439.3 $137.8 $1,847.5 
Pro Forma Adjusted Net Sales$675.0 $595.4 $439.3 $137.8 $1,847.5 
Pro Forma GAAP Income from Operations72.886.037.117.9213.8
Pro Forma GAAP Operating Margin %10.8 %14.4 %8.4 %13.0 %11.6 %
Pro Forma Adjusted Income from Operations78.786.349.218.1232.3
Pro Forma Adjusted Operating Margin %11.7 %14.5 %11.2 %13.1 %12.6 %
Pro Forma Adjusted EBITDA159.3100.299.921.9381.3
Pro Forma Adjusted EBITDA Margin %23.6 %16.8 %22.7 %15.9 %20.6 %
PRO FORMA SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
Three Months Ended March 31, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma Net Sales$668.2 $567.2 $442.8 $130.7 $1,808.9 
Net Sales from Businesses Divested/to be Exited(a)
— — (40.1)— $(40.1)
Pro Forma Adjusted Net Sales$668.2 $567.2 $402.7 $130.7 $1,768.8 
Pro Forma GAAP Income from Operations55.2104.436.96.9203.4
Pro Forma GAAP Operating Margin %8.3 %18.4 %8.3 %5.3 %11.2 %
Pro Forma Adjusted Income from Operations73.5104.739.17.0224.3
Pro Forma Adjusted Operating Margin %11.0 %18.5 %9.7 %5.4 %12.7 %
Pro Forma Adjusted EBITDA151.7119.889.411.1372.0
Pro Forma Adjusted EBITDA Margin %22.7 %21.1 %22.2 %8.5 %21.0 %
  (a) This represents Altra's Jacobs Vehicle Systems net sales, which was sold in April 2022.


















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PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended June 30, 2023
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Jun 30, 2023$698.7 $460.1 $473.1 $136.7 $1,768.6 
Impact from Foreign Currency Exchange Rates2.0 3.3 5.0 2.7 13.0 
Pro Forma Organic Sales Three Months Ended Jun 30, 2023$700.7 $463.4 $478.1 $139.4 $1,781.6 
Pro Forma Net Sales Three Months Ended Jun 30, 2022$422.1 $595.4 $194.1 $137.8 $1,349.4 
Pro Forma Net Sales from Businesses Acquired252.9 — 245.2 — 498.1 
Pro Forma Adjusted Net Sales Three Months Ended Jun 30, 2022$675.0 $595.4 $439.3 $137.8 $1,847.5 
Three Months Ended Jun 30, 2023 Pro Forma Organic Sales Growth %(a)
0.6 %(22.2)%4.0 %1.2 %(5.7)%
Three Months Ended Jun 30, 2023 Pro Forma Net Sales Growth %(a)
0.3 %(22.7)%2.9 %(0.8)%(6.4)%
(a) Growth rates for Industrial Powertrain Solutions, Automation & Motion Control, and Total Regal Rexnord are adjusted to normalize the impact of reporting an immaterial amount of Altra’s sales for the first quarter of 2023 within the Regal Rexnord second quarter of 2023 results, which occurred due to transaction close timing.

PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended March 31, 2023
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Mar 31, 2023$414.4 $469.5 $203.2 $137.0 $1,224.1 
Net Sales from Businesses Acquired234.5 — 216.6 — 451.1 
Impact from Foreign Currency Exchange Rates13.2 7.6 9.5 4.2 34.5 
Pro Forma Organic Sales Three Months Ended Mar 31, 2023$662.1 $477.1 $429.3 $141.2 $1,709.7 
Net Sales Three Months Ended Mar 31, 2022$416.3 $567.2 $184.3 $130.7 $1,298.5 
Net Sales from Businesses Acquired(a)
251.9 — 218.4 — 470.3 
Pro Forma Adjusted Net Sales Three Months Ended Mar 31, 2022$668.2 $567.2 $402.7 $130.7 $1,768.8 
Three Months Ended Mar 31, 2023 Pro Forma Organic Sales Growth %(b)
2.3 %(15.9)%11.9 %8.0 %(0.9)%
Three Months Ended Mar 31, 2023 Pro Forma Net Sales Growth %(b)
0.4 %(17.2)%9.5 %4.8 %(2.9)%
(a) Excludes the revenues from Altra's Jacobs Vehicle Systems business, which was sold in April 2022.
(b) Growth rates for Industrial Powertrain Solutions, Automation & Motion Control, and Total Regal Rexnord are adjusted to normalize the impact of reporting an immaterial amount of Altra’s sales for the first quarter of 2023 within the Regal Rexnord second quarter of 2023 results, which occurred due to transaction close timing.
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PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended December 31, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Dec 31, 2022$412.3 $495.5 $201.3 $135.6 $1,244.7 
Net Sales from Businesses Acquired239.3 — 230.1 — 469.4 
Impact from Foreign Currency Exchange Rates(27.6)(13.1)(16.9)(6.5)(64.1)
Pro Forma Organic Sales Three Months Ended Dec 31, 2022$624.0 $482.4 $414.5 $129.1 $1,650.0 
Net Sales Three Months Ended Jan 1, 2022$363.4 $522.9 $198.2 $132.1 $1,216.6 
Net Sales from Businesses Acquired232.9 — 236.9 — 469.8 
Pro Forma Adjusted Net Sales Three Months Ended Jan 1, 2022$596.3 $522.9 $435.1 $132.1 $1,686.4 
Three Months Ended Dec 31, 2022 Pro Forma Organic Sales Growth %4.6 %(7.7)%(4.7)%(2.3)%(2.2)%
Three Months Ended Dec 31, 2022 Pro Forma Net Sales Growth %9.3 %(5.2)%(0.9)%2.6 %1.6 %
PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended September 30, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Sep 30, 2022$415.6 $569.1 $192.6 $148.0 $1,325.3 
Net Sales from Businesses Acquired238.1 — 228.2 — 466.3 
Impact from Foreign Currency Exchange Rates(30.2)(12.1)(15.5)(5.6)(63.4)
Pro Forma Organic Sales Three Months Ended Sep 30, 2022$623.5 $557.0 $405.3 $142.4 $1,728.2 
Net Sales Three Months Ended Oct 2, 2021$168.5 $537.1 $54.9 $132.2 $892.7 
Net Sales from Businesses Acquired(a)
459.8 — 337.0 — 796.8 
Pro Forma Adjusted Net Sales Three Months Ended Oct 2, 2021$628.3 $537.1 $391.9 $132.2 $1,689.5 
Three Months Ended Sep 30, 2022 Pro Forma Organic Sales Growth %(0.8)%3.7 %3.4 %7.7 %2.3 %
Three Months Ended Sep 30, 2022 Pro Forma Net Sales Growth %4.0 %6.0 %7.4 %12.0 %6.0 %
(a) Includes Rexnord PMC and Altra net sales.
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PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended June 30, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Jun 30, 2022$422.1 $595.4 $194.1 $137.8 $1,349.4 
Net Sales from Businesses Acquired252.9 — 245.2 — 498.1 
Impact from Foreign Currency Exchange Rates(23.5)(8.5)(12.0)(3.5)(47.5)
Pro Forma Organic Sales Three Months Ended Jun 30, 2022$651.5 $586.9 $427.3 $134.3 $1,800.0 
Net Sales Three Months Ended Jul 3, 2021$174.5 $526.6 $57.9 $127.9 $886.9 
Net Sales from Businesses Acquired(a)
461.4 — 351.8 — 813.2 
Pro Forma Adjusted Net Sales Three Months Ended Jul 3, 2021$635.9 $526.6 $409.7 $127.9 $1,700.1 
Three Months Ended Jun 30, 2022 Pro Forma Organic Sales Growth %2.5 %11.5 %4.3 %5.0 %5.9 %
Three Months Ended Jun 30, 2022 Pro Forma Net Sales Growth %6.2 %13.1 %7.2 %7.7 %8.7 %
(a) Includes Rexnord PMC and Altra net sales.
PRO FORMA ORGANIC SALES GROWTH
(Dollars in Millions)Three Months Ended March 31, 2022
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Net Sales Three Months Ended Mar 31, 2022$416.3 $567.2 $184.3 $130.7 $1,298.5 
Net Sales from Businesses Acquired(a)
251.9 — 218.4 — 470.3 
Impact from Foreign Currency Exchange Rates(13.1)(3.3)(6.0)(1.4)(23.8)
Pro Forma Organic Sales Three Months Ended Mar 31, 2022$655.1 $563.9 $396.7 $129.3 $1,745.0 
Net Sales Three Months Ended Mar 31, 2021$165.4 $476.1 $50.6 $122.0 $814.1 
Net Sales from Businesses Acquired(b)
443.0 — 293.7 — 736.7 
Pro Forma Adjusted Net Sales Three Months Ended Mar 31, 2021$608.4 $476.1 $344.3 $122.0 $1,550.8 
Three Months Ended Mar 31, 2022 Pro Forma Organic Sales Growth %7.7 %18.4 %15.2 %6.0 %12.5 %
Three Months Ended Mar 31, 2022 Pro Forma Net Sales Growth %9.8 %19.1 %17.0 %7.1 %14.1 %
(a) Excludes the revenues from Altra's Jacobs Vehicle Systems business, which was sold in April 2022.
(b) Includes Rexnord PMC and Altra net sales. Excludes net sales from Altra's Jacobs Vehicle Systems business, which was sold in April 2022.
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PRO FORMA NET INCOME TO ADJUSTED EBITDA
Unaudited
(Dollars in Millions)
Three Months EndedYear EndedThree Months Ended
Mar 31,
2022		Jun 30,
2022		Sep 30,
2022		Dec 31,
2022		Dec 31,
2022		Mar 31,
2023
Jun 30, 2023(a)
Pro Forma Net Income$86.9 $76.5 $71.6 $42.3 $277.3 $(37.6)$33.2 
Plus: Income Taxes24.8 42.9 22.4 (2.1)88.0 4.5 9.9 
Plus: Interest Expense94.2 98.6 106.6 128.6 428.0 127.7 116.4 
Less: Interest Income(1.1)(0.8)(1.3)(2.0)(5.2)(2.7)(5.1)
Plus: Depreciation48.0 49.1 45.1 47.6 189.8 46.0 47.6 
Plus: Amortization88.1 87.3 86.4 86.9 348.7 87.1 89.4 
Pro Forma EBITDA340.9 353.6 330.8 301.3 1,326.6 225.0 291.4 
Plus: Transaction and Related Costs3.2 4.9 0.9 30.1 39.1 69.8 11.3 
Plus: Inventory Step Up4.2 14.6 (3.5)— 15.3 — 44.1 
Plus: Share-Based Compensation Expense10.2 9.2 9.7 8.7 37.8 25.3 14.5 
Plus: Restructuring and Related Costs17.4 (0.6)29.6 19.1 65.5 7.6 16.0 
Plus: Impairments and Exit Related Costs6.1 2.2 3.0 2.8 14.1 — 2.4 
Less: Gain on Sale of Assets(0.7)(2.6)— — (3.3)(0.6)— 
Less: Jacobs Vehicle Systems Adjusted EBITDA(9.3)— — — (9.3)— — 
Pro Forma Adjusted EBITDA$372.0 $381.3 $370.5 $362.0 $1,485.8 $327.1 $379.7 
(a) The information for the three-months ended June 30, 2023 is consistent with the information presented in the Company's Current Report on Form 8-K filed on August 1, 2023 for the second quarter 2023 financial results.

ADJUSTED EBITDAThree Months Ended June 30, 2023
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
GAAP Income from Operations$40.2 $59.8 $48.6 $3.0 $151.6 
Transaction and Related Costs6.5 — 3.0 1.8 11.3 
Inventory Step Up 31.6 — 12.5 — 44.1 
Restructuring and Related Costs 2.6 10.7 2.0 0.7 16.0 
Impairments and Exit Related Costs0.3 — 2.1 — 2.4 
Adjusted Income from Operations$81.2 $70.5 $68.2 $5.5 $225.4 
Amortization$51.7 $2.1 $35.4 $0.2 $89.4 
Depreciation22.7 9.7 12.2 3.0 47.6 
Share-Based Compensation Expense8.0 2.8 3.0 0.7 14.5 
Other Income, Net1.1 0.7 0.7 0.3 2.8 
Adjusted EBITDA$164.7 $85.8 $119.5 $9.7 $379.7 
GAAP Operating Margin %5.8%13.0%10.3%2.2%8.6%
Adjusted Operating Margin %11.6%15.3%14.4%4.0%12.7%
Adjusted EBITDA Margin %23.6%18.6%25.3%7.1%21.5%



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PRO FORMA ADJUSTED EBITDAThree Months Ended March 31, 2023
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma GAAP Income from Operations$30.0 $45.4 $12.3 $2.8 $90.5 
Transaction and Related Costs43.1 — 24.6 2.1 69.8 
Inventory Step Up — — — — — 
Restructuring and Related Costs 2.1 4.7 0.6 0.2 7.6 
Impairments and Exit Related Costs— — — — — 
Gain on Sale of Assets— — (0.6)— (0.6)
Pro Forma Adjusted Income from Operations$75.2 $50.1 $36.9 $5.1 $167.3 
Amortization$50.4 $2.1 $34.4 $0.2 $87.1 
Depreciation21.2 9.6 11.9 3.3 46.0 
Share-Based Compensation Expense12.3 2.0 10.5 0.5 25.3 
Other Income, Net0.5 0.6 0.2 0.1 1.4 
Pro Forma Adjusted EBITDA$159.6 $64.4 $93.9 $9.2 $327.1 
Pro Forma GAAP Operating Margin %4.6%9.7%2.9%2.0%5.4%
Pro Forma Adjusted Operating Margin %11.6%10.7%8.8%3.7%10.0%
Pro Forma Adjusted EBITDA Margin %24.6%13.7%22.4%6.7%19.5%
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PRO FORMA ADJUSTED EBITDAThree Months Ended December 31, 2022
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma GAAP Income from Operations$55.8 $65.6 $39.9 $6.5 $167.8 
Transaction and Related Costs14.5 — 9.3 3.3 27.1 
Inventory Step Up — — — — — 
Restructuring and Related Costs 9.9 9.5 1.6 1.1 22.1 
Impairments and Exit Related Costs0.9 — 1.9 — 2.8 
Gain on Sale of Assets— — — — — 
Pro Forma Adjusted Income from Operations$81.1 $75.1 $52.7 $10.9 $219.8 
Amortization$49.3 $2.0 $35.4 $0.2 $86.9 
Depreciation21.9 9.4 13.2 3.1 47.6 
Share-Based Compensation Expense3.7 2.1 2.5 0.4 8.7 
Other Income, Net(0.8)0.6 (0.9)0.1 (1.0)
Pro Forma Adjusted EBITDA$155.2 $89.2 $102.9 $14.7 $362.0 
Pro Forma GAAP Operating Margin %8.6%13.2%9.2%4.8%9.8%
Pro Forma Adjusted Operating Margin %12.4%15.2%12.2%8.0%12.8%
Pro Forma Adjusted EBITDA Margin %23.8%18.0%23.9%10.8%21.1%
PRO FORMA ADJUSTED EBITDAThree Months Ended September 30, 2022
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma GAAP Income from Operations$77.7 $70.9 $36.9 $11.8 $197.3 
Transaction and Related Costs0.5 — 0.4 — 0.9 
Inventory Step Up (3.5)— — — (3.5)
Restructuring and Related Costs 8.4 8.8 10.2 2.2 29.6 
Impairments and Exit Related Costs3.0 — — — 3.0 
Gain on Sale of Assets— — — — — 
Pro Forma Adjusted Income from Operations$86.1 $79.7 $47.5 $14.0 $227.3 
Amortization$50.6 $2.1 $33.5 $0.2 $86.4 
Depreciation21.5 9.5 11.2 2.9 45.1 
Share-Based Compensation Expense4.2 2.4 2.7 0.4 9.7 
Other Income, Net0.8 0.6 0.5 0.1 2.0 
Pro Forma Adjusted EBITDA$163.2 $94.3 $95.4 $17.6 $370.5 
Pro Forma GAAP Operating Margin %11.9%12.5%8.8%8.0%11.0%
Pro Forma Adjusted Operating Margin %13.2%14.0%11.3%9.5%12.7%
Pro Forma Adjusted EBITDA Margin %25.0%16.6%22.7%11.9%20.7%
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PRO FORMA ADJUSTED EBITDAThree Months Ended June 30, 2022
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma GAAP Income from Operations$72.8 $86.0 $37.1 $17.9 $213.8 
Transaction and Related Costs2.7 — 2.2 — 4.9 
Inventory Step Up 10.3 — 4.3 — 14.6 
Restructuring and Related Costs (4.5)0.3 3.4 0.2 (0.6)
Impairments and Exit Related Costs— — 2.2 — 2.2 
Gain on Sale of Assets(2.6)— — — (2.6)
Pro Forma Adjusted Income from Operations$78.7 $86.3 $49.2 $18.1 $232.3 
Amortization$51.6 $2.1 $33.4 $0.2 $87.3 
Depreciation23.4 9.7 12.6 3.4 49.1 
Share-Based Compensation Expense4.1 1.5 3.6 — 9.2 
Other Income, Net1.5 0.6 1.1 0.2 3.4 
Pro Forma Adjusted EBITDA$159.3 $100.2 $99.9 $21.9 $381.3 
Pro Forma GAAP Operating Margin %10.8%14.4%8.4%13.0%11.6%
Pro Forma Adjusted Operating Margin %11.7%14.5%11.2%13.1%12.6%
Pro Forma Adjusted EBITDA Margin %23.6%16.8%22.7%15.9%20.6%
PRO FORMA ADJUSTED EBITDAThree Months Ended March 31, 2022
(Dollars in Millions)Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal Regal Rexnord
Pro Forma GAAP Income from Operations$55.2 $104.4 $36.9 $6.9 $203.4 
Transaction and Related Costs2.1 — 1.1 — 3.2 
Inventory Step Up 1.8 — 2.4 — 4.2 
Restructuring and Related Costs 14.4 1.0 1.9 0.1 17.4 
Impairments and Exit Related Costs— — 6.1 — 6.1 
Gain on Sale of Assets— (0.7)— — (0.7)
Less: Jacobs Vehicle Systems Adjusted Income from Operations— — (9.3)— (9.3)
Pro Forma Adjusted Income from Operations$73.5 $104.7 $39.1 $7.0 $224.3 
Amortization$50.4 $2.2 $35.3 $0.2 $88.1 
Depreciation23.3 9.9 11.5 3.3 48.0 
Share-Based Compensation Expense4.1 2.4 3.2 0.5 10.2 
Other Income, Net0.4 0.6 0.3 0.1 1.4 
Pro Forma Adjusted EBITDA$151.7 $119.8 $89.4 $11.1 $372.0 
Pro Forma GAAP Operating Margin %8.3%18.4%8.3%5.3%11.2%
Pro Forma Adjusted Operating Margin %11.0%18.5%9.7%5.4%12.7%
Pro Forma Adjusted EBITDA Margin %22.7%21.1%22.2%8.5%21.0%
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