Slide 1: First Quarter 2020 Earnings Conference Call
1Q May 5, 2020 First Quarter 2020 Earnings CONFERENCE CALL Louis Pinkham Rob Rehard Chief Executive Officer Vice President Chief Financial Officer
Slide 2: 1Q 2020 Non-GAAP Financial Measures
1Q 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 (“GAAP”). We also periodically disclose certain financial m
Slide 3: Adjusted Diluted Earnings Per Share
1Q 2020 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Mar 28, Mar 30, 2020 2019 GAAP Diluted Earnings Per Share $ 1.12 $ 1.99 Restructuring and Related Costs 0.10 0.04 Loss (Gain) on Businesses Divested and Assets to be Exited 0.03 (0.59) Net Loss (Income) from Businesses Divested/
Slide 4: Adjusted Income (Loss) from Operations
1Q 2020 APPENDIX Three Months Ended Power Commercial Transmission ADJUSTED INCOME (LOSS) FROM OPERATIONS Systems Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, 2020 2019 2020 2019 2020 2
Slide 5: Adjusted Net Sales
1Q 2020 APPENDIX Three Months Ended Commercial Power Transmission ADJUSTED NET SALES Systems Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, Mar 28, Mar 30, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2
Slide 6: Adjusted Effective Tax Rate
1Q 2020 APPENDIX ADJUSTED EFFECTIVE TAX RATE Three Months Ended (Dollars in Millions) Mar 28, Mar 30, 2020 2019 Income before Taxes $ 60.6 $ 108.0 Provision for Income Taxes 13.9 21.2 Effective Tax Rate 22.9% 19.6% Income before Taxes $ 60.6 $ 108.0 Loss (Gain) on Businesses Divested and Assets to b
Slide 7: Free Cash Flow
1Q 2020 APPENDIX Three Months FREE CASH FLOW Ended (Dollars in Millions) Mar 28, Mar 30, 2020 2019 Net Cash Provided by Operating Activities $ 102.7 $ 18.3 Additions to Property Plant and Equipment (10.9) (20.2) Free Cash Flow $ 91.8 $ (1.9) GAAP Net Income Attributable to Regal Beloit Corporation $
Slide 8: Organic Sales Growth
1Q 2020 APPENDIX ORGANIC SALES GROWTH Three Months Ended (Dollars in Millions) Power Commercial Industrial Climate Transmission Systems Systems Solutions Solutions Total Regal Net Sales Three Months Ended Mar 28, 2020 $ 199.4 $ 129.6 $ 210.1 $ 195.1 $ 734.2 Impact from Foreign Currency Exchange Rate
Slide 9: Total Gross Debt/Adjusted EBITDA
1Q 2020 APPENDIX TOTAL GROSS DEBT/ADJUSTED EBITDA (Dollars in Millions) TOTAL GROSS DEBT/EBITDA LTM Mar 28, (Dollars in Millions) 2020 LTM Mar 28, Net Income $ 202.5 2020 Plus: Taxes 53.9 Net Income $ 202.5 Plus: Interest Expense 51.0 Plus: Taxes Less: Interest Income (5.6) 53.9 Plus: Depreciation a
Slide 10: Total Net Debt/Adjusted EBITDA
1Q 2020 APPENDIX TOTAL NET DEBT/ADJUSTED EBITDA (Dollars in Millions) TOTAL NET DEBT/EBITDA LTM Mar 28, (Dollars in Millions) 2020 LTM Mar 28, Net Income $ 202.5 2020 Plus: Taxes 53.9 Net Income Plus: Interest Expense 51.0 $ 202.5 Less: Interest Income (5.6) Plus: Taxes 53.9 Plus: Depreciation and A
Slide 11: Operating Leverage - Total Regal
1Q 2020 APPENDIX OPERATING LEVERAGE-TOTAL REGAL Three Months Ended (Dollars in Millions) Mar 28, Mar 30, 2020 2019 Change GAAP Income from Operations $ 70.0 $ 120.6 $ (50.6) Adjusted Income from Operations $ 79.2 $ 89.5 $ (10.3) Net Sales $ 734.2 $ 853.8 $ (119.6) Adjusted Net Sales $ 734.2 $ 820.3
Slide 12: Operating Leverage - Commercial Systems and Climate Solutions
1Q 2020 APPENDIX OPERATING LEVERAGE-COMMERCIAL SYSTEMS Three Months Ended (Dollars in Millions) Mar 28, Mar 30, 2020 2019 Change GAAP Income from Operations $ 12.5 $ 57.8 $ (45.3) Adjusted Income from Operations $ 15.5 $ 23.2 $ (7.7) Net Sales $ 199.4 $ 242.2 $ (42.8) Adjusted Net Sales $ 199.4 $ 22
Slide 13: Fiscal 2019 First Quarter Schedule for Ongoing Business
1Q 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 Systems Syste
Slide 14: Fiscal 2019 Third Quarter Schedule for Ongoing Business
1Q 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 Systems Syste
Slide 15: Fiscal 2019 Twelve Months Schedule for Ongoing Business
1Q 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 Systems Syste
Slide 16: Shipping Days
1Q 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 2