Slide 1: Second Quarter 2019 Earnings Conference Call
2Q AUGUST 6, 2019 Second Quarter 2019 Earnings CONFERENCE CALL Louis Pinkham Jon Schlemmer Rob Rehard Rob Cherry Chief Executive Officer Chief Operating Officer Vice President Vice President Chief Financial Officer Business Development & Investor Relations
Slide 2: Adjusted Diluted Earnings Per Share
2Q 2019 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Six Months Ended Jun 29, Jun 30, Jun 29, Jun 30, 2019 2018 2019 2018 GAAP Diluted Earnings Per Share $ 1.55 $ 1.50 $ 3.54 $ 2.81 Restructuring and Related Costs 0.07 0.03 0.11 0.06 Purchase Accounting and Transaction Costs — 0.0
Slide 3: Adjusted Income From Operations
2Q 2019 APPENDIX Three Months Ended Commercial & Power Transmission ADJUSTED INCOME FROM OPERATIONS Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Jun 29, Jun 30, Jun 29, Jun 30, Jun 29, Jun 30, Jun 29, Jun 30, 2019 2018 2019 2018 2019 2018 2019 2018 GAAP Income fro
Slide 4: Adjusted Net Sales
2Q 2019 APPENDIX Three Months Ended Commercial & Industrial Power Transmission ADJUSTED NET SALES Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Jun 29, Jun 30, Jun 29, Jun 30, Jun 29, Jun 30, Jun 29, Jun 30, 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales $ 401.8 $ 469.0 $
Slide 5: Adjusted Effective Tax Rate
2Q 2019 APPENDIX ADJUSTED EFFECTIVE TAX RATE Three Months Ended Six Months Ended Jun 29, Jun 30, Jun 29, Jun 30, 2019 2018 2019 2018 Income before Taxes $ 83.8 $ 85.6 $ 191.8 $ 160.6 Provision for Income Taxes 16.4 18.3 37.6 34.0 Effective Tax Rate 19.6% 21.4% 19.6% 21.2% Income before Taxes $ 83.8
Slide 6: Free Cash Flow
2Q 2019 APPENDIX FREE CASH FLOW Three Months Ended Six Months Ended (Dollars in Millions) Jun 29, Jun 30, Jun 29, Jun 30, 2019 2018 2019 2018 Net Cash Provided by Operating Activities $ 112.3 $ 101.8 $ 130.6 $ 144.3 Additions to Property Plant and Equipment (36.0) (21.2) (56.2) (40.5) Free Cash Flow
Slide 7: Organic Sales Growth
2Q 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 Jun 29, 2019 $ 401.8 $ 267.9 $ 204.0 $ 873.7 Net Sales from Business Divested/to be Exited - (5.6) -
Slide 8: Total Net Debt/Adjusted EBITDA
2Q 2019 APPENDIX TOTAL NET DEBT/ADJUSTED EBITDA (Dollars in Millions) LTM Jun 29, 2019 Net Income $ 263.4 Plus: Taxes 60.0 Plus: Interest Expense 55.0 Less: Interest Income (3.6) Plus: Depreciation and Amortization 137.9 Plus: Restructuring and Related Costs 10.4 Plus: Purchase Accounting & Transact
Slide 9: Fiscal 2018 First Quarter Schedule For Ongoing Business
2Q 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: Fiscal 2018 Third Quarter Schedule For Ongoing Business
2Q 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: Fiscal 2018 Full Year Schedule For Ongoing Business
2Q 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: Fiscal Calendar Weeks by Quarter
2Q 2019 APPENDIX 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 and 2019 have