Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Regal Beloit — Q3 2019 Earnings Presentation
12 slides from Regal Rexnord's earnings presentation, Nov 4, 2019
Slide 1: Third Quarter 2019 Earnings Conference Call
3Q NOVEMBER 4, 2019 Third Quarter 2019 Earnings CONFERENCE CALL Louis Pinkham Rob Rehard Rob Cherry Chief Executive Officer Vice President Vice President Chief Financial Officer Business Development & Investor Relations
Slide 2: Adjusted Diluted Earnings Per Share
3Q 2019 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Nine Months Ended Sep 28, Sep 29, Sep 28, Sep 29, 2019 2018 2019 2018 GAAP Diluted Earnings Per Share $ 1.19 $ 1.17 $ 4.75 $ 3.98 Restructuring and Related Costs 0.14 0.03 0.24 0.09 Purchase Accounting and Transaction Costs — 0.
Slide 3: Adjusted Income From Operations
3Q 2019 APPENDIX Three Months Ended Power Commercial & Transmission ADJUSTED INCOME FROM OPERATIONS Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 28, Sep 29, Sep 28, Sep 29, Sep 28, Sep 29, Sep 28, Sep 29, 2019 2018 2019 2018 2019 2018 2019 2018 GAAP Income fro
Slide 4: Adjusted Net Sales
3Q 2019 APPENDIX Three Months Ended Commercial & Power Transmission ADJUSTED NET SALES Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Sep 28, Sep 29, Sep 28, Sep 29, Sep 28, Sep 29, Sep 28, Sep 29, 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales $ 358.6 $ 462.3 $
Slide 5: Adjusted Effective Tax Rate
3Q 2019 APPENDIX ADJUSTED EFFECTIVE TAX RATE Three Months Ended Nine Months Ended Sep 28, Sep 29, Sep 28, Sep 29, 2019 2018 2019 2018 Income before Taxes $ 60.7 $ 56.3 $ 252.5 $ 216.9 Provision for Income Taxes 9.9 3.6 47.5 37.6 Effective Tax Rate 16.3% 6.4% 18.8% 17.3% Income before Taxes $ 60.7 $
Slide 6: Free Cash Flow
3Q 2019 APPENDIX Three Months Nine Months FREE CASH FLOW Ended Ended (Dollars in Millions) Sep 28, Sep 29, Sep 28, Sep 29, 2019 2018 2019 2018 Net Cash Provided by Operating Activities $ 140.6 $ 106.0 $ 271.2 $ 250.3 Additions to Property Plant and Equipment (21.1) (18.7) (77.3) (59.2) Free Cash Flo
Slide 7: Organic Sales Growth
3Q 2019 APPENDIX ORGANIC SALES GROWTH Three Months Ended (Dollars in Millions) Commercial & Power Industrial Climate Transmission Systems Solutions Solutions Total Regal Net Sales Three Months Ended Sep 28, 2019 $ 358.6 $ 230.9 $ 182.8 $ 772.3 Net Sales from Business Divested/to be Exited - (0.9) -
Slide 8: Total Net Debt/Adjusted EBITDA Operating Leverage
3Q 2019 APPENDIX TOTAL NET DEBT/ADJUSTED EBITDA OPERATING LEVERAGE Three Months Ended (Dollars in Millions) (Dollars in Millions) Sep 28, Sep 29, LTM Sep 28, 2019 2018 Change 2019 GAAP Income from Operations $ 72.8 $ 69.4 $ 3.4 Net Income Adjusted Income from Operations $ 81.3 $ 99.8 $ (18.5) $ 261.
Slide 9: Schedule For Ongoing Business
3Q 2019 APPENDIX The following tables outline the first and second quarter 2018 net sales and income from operations illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and actual performance. Commercial & Power Industrial Climate Tr
Slide 10: Schedule For Ongoing Business
3Q 2019 APPENDIX The following tables outline the third and fourth quarter 2018 net sales and income from operations illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and actual performance. Commercial & Power Industrial Climate Tr
Slide 11: Schedule For Ongoing Business
3Q 2019 APPENDIX The following tables outline the full year 2018 net sales and income from operations, and the full year adjusted diluted earnings per share, illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and actual performance.
Slide 12: Shipping Days
3Q 2019 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 2