Slide 1: 4th Quarter 2010 Earnings Call
4th Quarter 2010 Earnings Call February 3, 2011 Welcome!
Slide 2: Safe Harbor Statement
1 Safe Harbor Statement This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management's judgment regarding future events. In many cases, you can identify forward-looking statements by te
Slide 3: 2010 Overview
2 2010 Annual Sales of $2,238M 22.5% Growth Added sales of $119.5M from acquisitions 17.9% of sales of energy efficient products 2010 Earnings of $149.4M Increase of 57% over 2009 Record EPS of $3.84 per share 2010 Overview
Slide 4: Financial Highlights: Sales Growth
3 Sales Growth Sales up 20.0% in 4Q10 and up 22.5% in 2010. 4Q10 Price Increase realization beginning in December 2010. Financial Highlights Impact of Acquired Businesses $56.8 million Sales in 4Q10 and $119.5 million Sales in 2010 from businesses acquired in 2010 Profitability weighed down by purch
Slide 5: Percentage of Sales by Quarter
4 4 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2010 0.24 0.27 0.26 0.23 * Excludes Acquisitions 24% 27% 26% 23% Percentage of Sales by Quarter Five Year Average Number of Quarterly Workdays 63 63 63 64 64 64 63 60 64 63 63 60
Slide 6: Financial Highlights
5 Financial Highlights Capital Expenditures $15 million in 4Q10 and $45 million in 2010. Averages 2.4% of sales 2011 capital expenditures up to $90 million Income Tax Rate 4Q10 ETR of 22.7% 2010 ETR of 29.9% 2011 ETR of 31 - 32% Depreciation and Amortization $18.6 million in 4Q10 $72.9 million in 20
Slide 7: Business Highlights For The Quarter
6 Business Highlights For The Quarter Mechanical Sales up 18.5% Asian Sales up 16% Commercial and Industrial Sales up 12.5% HVAC Sales up 1%
Slide 8: Copper Market
7 COPPER MARKET 6/10/2010 7/10/2010 8/1/2010 9/10/2010 10/10/2010 11/10/2010 12/10/2010 1/10/2011 Copper Comex 2.9371 3.0643 3.3198 3.518 3.7731 3.8421 4.1697 4.3443
Slide 9: Business Highlights For The Quarter: New Products
9 Business Highlights For The Quarter New Products
Slide 10: Introducing Unico CRP (Crank Rod Pump)
10 Introducing Unico CRP(r) (Crank Rod Pump) Innovative Alternative to Beam Pumps for Oil Wells Up to 3,000 Ft Mounts Directly To Well Head Replaces Nodding Donkey Small Footprint For Simple Installation Less Intrusive Logistics Inherent Safety Benefits Hub City Gear Box and Marathon Motor Inside Un
Slide 11: Takeaways
11 TAKE A WAYS GREAT 2010 1st Qtr 2011 Challenging but bottom line winner Positioned For Strong for Growth New Products Geographic Reach Acquisition Position Balance Sheet Remains Strong
Slide 12: Thank You!
SSREGAL BELOIT Thank You!
Slide 13: Appendix: Reconciliation of EBITDA
13 Appendix Reconciliation of EBITDA FY 2010 Net Income Attributable to Regal Beloit $149,379 Noncontrolling Interests, net of tax 5,305 Interest Income (2,570) Interest Expense 19,576 Provision for Income Taxes 66,045 FY 2010 Depreciation and Amortization 72,869 EBITDA $310,604