Slide 1: Fourth Quarter 2018 Earnings Conference Call
Fourth Quarter 2018 Earnings Conference Call February 5, 2019 Mark Gliebe Jon Schlemmer Chairman and Chief Operating Officer Chief Executive Officer Rob Rehard Robert Cherry Vice President Vice President Chief Financial Officer Business Development & Investor Relations Creating a better tomorrow™… ©
Slide 2: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Twelve Months Ended Dec 29, Dec 30, Dec 29, Dec 30, 2018 2017 2018 2017 GAAP Diluted Earnings Per Share $ 1.28 $ 1.15 $ 5.26 $ 4.74 Restructuring and Related Costs 0.04 0.02 0.13 0.22 Purchase Accounting and Tra
Slide 3: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Three Months Ended Commercial & Power Transmission ADJUSTED INCOME FROM OPERATIONS Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Dec 29, Dec 30, Dec 29, Dec 30, Dec 29, Dec 30, Dec 29, Dec 30, 2018 2017 2018 2017 2018 2017 2018 201
Slide 4: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Three Months Ended Commercial & Industrial Power Transmission ADJUSTED NET SALES Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Dec 29, Dec 30, Dec 29, Dec 30, Dec 29, Dec 30, Dec 29, Dec 30, 2018 2017 2018 2017 2018 2017 2018 2017 Net Sales $
Slide 5: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 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 Indu
Slide 6: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 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 Indu
Slide 7: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 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 ac
Slide 8: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations ADJUSTED EFFECTIVE TAX RATE Three Months Ended Twelve Months Ended Dec 29, Dec 30, Dec 29, Dec 30, 2018 2017 2018 2017 Income before Taxes $ 75.3 $ 65.3 $ 292.2 $ 277.2 Provision for Income Taxes 18.8 12.7 56.4 59.1 Effective Tax Rate 25.0% 19.4% 19.3% 21.3% Income
Slide 9: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations FREE CASH FLOW Three Months Ended Twelve Months Ended (Dollars in Millions) Dec 29, Dec 30, Dec 29, Dec 30, 2018 2017 2018 2017 Net Cash Provided by Operating Activities $ 112.4 $ 56.9 $ 362.7 $ 291.9 Additions to Property Plant and Equipment (18.4) (16.2) (77.6) (6
Slide 10: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations ORGANIC SALES GROWTH Three Months Ended (Dollars in Millions) Commercial & Power Industrial Climate Transmission Systems Solutions Solutions Total Regal Net Sales Three Months Ended Dec 29, 2018 $ 436.7 $ 232.2 $ 212.8 $ 881.7 Net Sales from Business Acquired (31.4)
Slide 11: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations TOTAL NET DEBT/ADJUSTED EBITDA (Dollars in Millions) LTM Dec 29, 2018 Net Income Attributable to Regal Beloit Corporation $ 231.2 Plus: Minority Interest 4.6 Plus: Taxes 56.4 Plus: Interest Expense 55.2 Less: Interest Income (1.9) Plus: Depreciation and Amortization
Slide 12: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations RETURN ON INVESTED CAPITAL (ROIC) (Dollars in Millions) Dec 29, Dec 30, Dec 31, Jan 2, 2018 2017 2016 2016 Cash and Cash Equivalents $ (248.6) $ (139.6) $ (284.5) $ (252.9) Current Maturities of Debt 0.5 101.2 100.6 6.3 Long-Term Debt 1,306.6 1,039.9 1,310.9 1,715.6
Slide 13: Regal Shipping Days
Appendix Regal Shipping Days 1Q 2Q 3Q 4Q FY 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 Regal operates on a 52/53 week fiscal year ending on the Saturday closest to December 31 Fiscal Years 2015, 2016, 2017, 2018 a