BELOIT,
Wis., Oct. 31, 2022 /PRNewswire/ -- Regal
Rexnord Corporation (NYSE: RRX)
Third Quarter Highlights
- Sales Up 48% Versus PY And Up 8% On An Organic Basis*
- Daily Orders Down 3.6% In 3Q Versus PY On A Pro Forma, Constant
Currency Basis
- Backlog Up Nearly 70% Versus Beginning of 2021; Book-To-Bill
Ratio Above 1.00 For Prior 7 Quarters, Averaging 1.10 In 2021 and
1.01 YTD In 2022
- Adjusted EBITDA Margin* Up 120 Basis Points Versus PY To 20.9%;
Price/Cost Remained Positive
- Adjusted Diluted EPS* Of $2.66
Versus $2.88 In PY; GAAP Diluted EPS
Of $1.80 Versus $1.95 In PY
- Free Cash Flow Conversion* Of 93%
- Net Debt To Adjusted EBITDA Of 1.4x
- Raising Guidance Mid-Point By Revising 2022 Annual Guidance For
Adjusted EPS To A Range Of $10.35 To
$10.75 From $10.20 To $10.80
And Revising GAAP EPS Guidance To A Range Of $7.15 To $7.55 From
$7.01 To $7.61
- M&A Synergies Remain Ahead Of Plan
CEO Louis Pinkham commented,
"I am extremely pleased with our 3Q performance. Our Regal
Rexnord team continued to focus on executing what's under our
control, while navigating against headwinds posed by ongoing supply
chain challenges and high inflation. By leveraging an 80/20 mindset
and acting with urgency to serve our customers, the team delivered
8% organic sales growth, which includes strong price realization
plus share gains. As we highlighted at our September investor day,
we're gaining traction with our many outgrowth initiatives,
including starting to deliver a robust pipeline of mix-positive new
products focused on improving energy-efficiency, plus raising
service levels, and making significant digital and e-commerce
investments. I am also proud of our team's performance continuing
to raise our adjusted EBITDA margin, aided by 80/20, lean, and our
acquisition synergies."
Mr. Pinkham concluded, "In summing up our third quarter
results, the Regal Rexnord team continues to perform. While the
global macro outlook is uncertain, our team remains focused on
controllable execution, and the many self-help opportunities in
front of us related to improving outgrowth, expanding our margins,
and improving cash flow, especially around lowering working
capital. And finally, the integration of MCS continues to be well
ahead of our expectations. With so many value creation levers under
our control, along with our portfolio-transforming Altra Industrial
Motion announcement last week, Regal Rexnord's future continues to
be extremely bright."
*Non-GAAP Financial
Measurement, See Appendix for Reconciliation
|
Guidance Update
The Company continues to expect organic revenue growth at a high
single digit rate for 2022.
The Company is raising its guidance mid-point by revising its
2022 annual guidance for adjusted earnings per share to a range of
$10.35 to $10.75, from $10.20
to $10.80 previously, and revising
its GAAP earnings per share guidance to a range of $7.15 to $7.55 from
$7.01 to $7.61.
The Company's guidance does not take into account any costs,
expenses or other effects of the previously announced transaction
whereby the Company will acquire all of the outstanding shares of
Altra Industrial Motion Corp. (Nasdaq: AIMC).
Segment Performance
Third quarter 2022 segment results versus the prior year:
- Motion Control Solutions segment net sales were $592.7 million, an increase of 185.5%, or 3.6% on
an organic basis. Primary drivers included the merger with Rexnord
PMC and the acquisition of Arrowhead and, on an organic basis,
broad-based strength, particularly in global industrial markets,
and price, partially offset by weakness in the China wind market. Adjusted EBITDA margin was
27.2% of adjusted net sales*.
- Climate Solutions net sales were $279.2
million, an increase of 4.0%, or 4.9% on an organic basis.
Primary drivers include strong price realization and share gains,
partially offset by weakness in Europe. Adjusted EBITDA margin was 16.4% of
adjusted net sales, down due to weaker mix and higher non-metals
inflation. We expect segment margins to improve in the fourth
quarter, with further, more significant improvements in 2023.
- Commercial Systems net sales were $289.9
million, an increase of 7.9%, or 11.5% on an organic basis.
Primary drivers included strong price realization and share gains,
with particular strength in the North
America commercial HVAC and general industrial markets.
Adjusted EBITDA margin was 16.7% of adjusted net sales.
- Industrial Systems net sales were $163.5
million, an increase of 10.5%, or 14.7% on an organic basis.
Primary drivers included strong price realization and outgrowth,
particularly in the North America
general industrial market, partially offset by weakness in
China. Adjusted EBITDA margin was
13.2% of adjusted net sales.
Conference Call
Regal Rexnord will hold a conference call to discuss this
earnings release at 9:00 AM CT
(10:00 AM ET) on Tuesday, November 1, 2022. To listen to the live
audio and view the presentation during the call, please visit Regal
Rexnord's Investor website: https://investors.regalrexnord.com. To
listen by phone or to ask the presenters a question, dial
1.888.317.6003 (U.S. callers) or +1.412.317.6061 (international
callers) and enter 7593094# when prompted.
A webcast replay will be available at the link above, and a
telephone replay will be available at 1.877.344.7529 (U.S. callers)
or +1.412.317.0088 (international callers), using a replay access
code of 4687383#. Both replays will be accessible for three months
after the earnings call.
About Regal Rexnord
Regal Rexnord Corporation is a global leader in the engineering
and manufacturing of industrial powertrain solutions, power
transmission components, electric motors and electronic controls,
air moving products and specialty electrical components and
systems, serving customers around the world. Through longstanding
technology leadership and an intentional focus on producing more
energy-efficient products and systems, Regal Rexnord helps create a
better tomorrow – for its customers and for the planet.
Regal Rexnord is comprised of four segments: Motion Control
Solutions, Climate Solutions, Commercial Systems and Industrial
Systems. Regal Rexnord is headquartered in Beloit, Wisconsin and has manufacturing, sales
and service facilities worldwide. For more information, visit
RegalRexnord.com.
Forward Looking Statements
This release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, which reflect Regal Rexnord's current estimates,
expectations and projections about Regal Rexnord's future results,
performance, prospects and opportunities. Forward-looking
statements include statements that are not historical facts and can
be identified by forward-looking words such as "anticipate,"
"believe," "confident," "estimate," "expect," "intend," "plan,"
"target," "may," "will," "project," "forecast," "would," "could,"
"should," and similar expressions. These forward-looking statements
are based upon information currently available to Regal Rexnord and
are subject to a number of risks, uncertainties, and other factors
that could cause actual results, performance, prospects or
opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements. Important factors
that could cause Regal Rexnord's actual results to differ
materially from the results referred to in the forward-looking
statements Regal Rexnord makes in this release include: the
possibility that the conditions to the consummation of the proposed
acquisition of Altra Industrial Motion Corp. (the "Proposed
Acquisition") will not be satisfied on the terms or timeline
expected, or at all; failure to obtain, or delays in obtaining, or
adverse conditions related to obtaining shareholder or regulatory
approvals sought in connection with the Proposed Acquisition;
failure to achieve the proposed debt financing necessary for the
Proposed Acquisition on the desired terms, or at all; Regal
Rexnord's substantial indebtedness as a result of the Proposed
Acquisition and the effects of such indebtedness on the combined
company's financial flexibility after the Proposed Acquisition;
Regal Rexnord's ability to achieve its objectives on reducing its
indebtedness on the desired timeline; dependence on key suppliers
and the potential effects of supply disruptions; fluctuations in
commodity prices and raw material costs; any unforeseen changes to
or the effects on liabilities, future capital expenditures,
revenue, expenses, synergies, indebtedness, financial condition,
losses and future prospects; the possibility that Regal Rexnord may
be unable to achieve expected benefits, synergies and operating
efficiencies in connection with the Proposed Acquisition, the
merger with Rexnord Process & Motion Control business (the
"Rexnord PMC business") and the acquisition of Arrowhead Systems,
LLC ("Arrowhead") (together with the Proposed Acquisition and the
merger with the Rexnord PMC business, the "Transactions") within
the expected time-frames or at all and to successfully integrate
Altra, the Rexnord PMC business and Arrowhead; Regal Rexnord's
ability to identify and execute on future M&A opportunities,
including significant M&A transactions; the impact of any such
M&A transactions on Regal Rexnord's results, operations and
financial condition, including the impact from costs to execute and
finance any such transactions; expected or targeted future
financial and operating performance and results; operating costs,
customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients or suppliers) being greater than
expected following the Transactions; Regal Rexnord's ability to
retain key executives and employees; the continued financial and
operational impacts of and uncertainties relating to the COVID-19
pandemic on customers and suppliers and the geographies in which
they operate; uncertainties regarding the ability to execute
restructuring plans within expected costs and timing; challenges to
the tax treatment that was elected with respect to the acquisition
of the Rexnord PMC business and related transactions; requirements
to abide by potentially significant restrictions with respect to
the tax treatment of the Rexnord PMC business which could limit
Regal Rexnord's ability to undertake certain corporate actions that
otherwise could be advantageous; actions taken by competitors and
their ability to effectively compete in the increasingly
competitive global electric motor, drives and controls, power
generation and power transmission industries; the ability to
develop new products based on technological innovation, such as the
Internet of Things, and marketplace acceptance of new and existing
products, including products related to technology not yet adopted
or utilized in geographic locations in which Regal Rexnord does
business; dependence on significant customers; seasonal impact on
sales of products into HVAC systems and other residential
applications; risks associated with global manufacturing, including
public health crises and political, societal or economic
instability, including instability caused by the conflict between
Russia and Ukraine; issues and costs arising from the
integration of acquired companies and businesses and the timing and
impact of purchase accounting adjustments; Regal Rexnord's overall
debt levels and its ability to repay principal and interest on its
outstanding debt; prolonged declines in one or more markets, such
as heating, ventilation, air conditioning, refrigeration, power
generation, oil and gas, unit material handling, water heating and
aerospace; economic changes in global markets, such as reduced
demand for products, currency exchange rates, inflation rates,
interest rates, recession, government policies, including policy
changes affecting taxation, trade, tariffs, immigration, customs,
border actions and the like, and other external factors that Regal
Rexnord cannot control; product liability, asbestos and other
litigation, or claims by end users, government agencies or others
that products or customers' applications failed to perform as
anticipated, particularly in high volume applications or where such
failures are alleged to be the cause of property or casualty
claims; unanticipated liabilities of acquired businesses;
unanticipated adverse effects or liabilities from business exits or
divestitures; unanticipated costs or expenses that may be incurred
related to product warranty issues; infringement of intellectual
property by third parties, challenges to intellectual property, and
claims of infringement on third party technologies; effects on
earnings of any significant impairment of goodwill; losses from
failures, breaches, attacks or disclosures involving information
technology infrastructure and data; cyclical downturns affecting
the global market for capital goods; and other risks and
uncertainties including, but not limited, to those described in the
section entitled "Risk Factors" in Regal Rexnord's Annual Report on
Form 10-K on file with the SEC and from time to time in other filed
reports including Regal Rexnord's Quarterly Reports on Form 10-Q.
For a more detailed description of the risk factors associated with
Regal Rexnord, please refer to Part I, Item 1A in the Regal Rexnord
Annual Report on Form 10-K for the fiscal year ended January 1, 2022 on file with the SEC and
subsequent SEC filings. Shareholders, potential investors, and
other readers are urged to consider these factors in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included in this release are made only as of the date of
this release and Regal Rexnord undertakes no obligation to update
any forward-looking information contained in this release or with
respect to the announcements described herein to reflect subsequent
events or circumstances.
Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)
We prepare financial statements in accordance with accounting
principles generally accepted in the
United States of America ("GAAP"). We also periodically
disclose certain financial measures in our quarterly earnings
releases, on investor conference calls, and in investor
presentations and similar events that may be considered "non-GAAP"
financial measures. This additional information is not meant to be
considered in isolation or as a substitute for our results of
operations prepared and presented in accordance with GAAP.
In this earnings release, we disclose the following non-GAAP
financial measures, and we reconcile these measures in the tables
below to the most directly comparable GAAP financial measures:
adjusted diluted earnings per share, adjusted income from
operations, adjusted operating margin, adjusted net sales, net
debt, adjusted EBITDA, adjusted EBITDA margin, adjusted bank
EBITDA, adjusted net income attributable to Regal Rexnord
Corporation, free cash flow, free cash flow as a percentage of
adjusted net income attributable to Regal Rexnord Corporation,
adjusted income before taxes, adjusted provision for income taxes
and adjusted effective tax rate. We believe that these non-GAAP
financial measures are useful measures for providing investors with
additional information regarding our results of operations and for
helping investors understand and compare our operating results
across accounting periods and compared to our peers. Our management
primarily uses adjusted income from operations, adjusted operating
income, and adjusted operating margin to help us manage and
evaluate our business and make operating decisions, while adjusted
diluted earnings per share, net debt, adjusted EBITDA, adjusted
EBITDA margin, adjusted net sales, adjusted net income attributable
to Regal Rexnord Corporation, free cash flow, free cash flow as a
percentage of adjusted net income attributable to Regal Rexnord
Corporation, adjusted income before taxes, adjusted provision for
income taxes and adjusted effective tax rate are primarily used to
help us evaluate our business and forecast our future results.
Accordingly, we believe disclosing and reconciling each of these
measures helps investors evaluate our business in the same manner
as management.
In addition to these non-GAAP measures, we use the term "organic
sales growth" to refer to the increase in our sales between periods
that is attributable to organic sales. "Organic sales" to refers to
GAAP sales from existing operations excluding any sales from
acquired businesses recorded prior to the first anniversary of the
acquisition and excluding any sales from business divested/to be
exited recorded prior to the first anniversary of the exit and
excluding the impact of foreign currency translation. The impact of
foreign currency translation is determined by translating the
respective period's organic sales using the currency exchange rates
that were in effect during the prior year periods.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in Millions,
Except per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
Net Sales
|
|
$
1,325.3
|
|
$
892.7
|
|
$
3,973.2
|
|
$ 2,593.7
|
Cost of
Sales
|
|
917.6
|
|
624.6
|
|
2,710.1
|
|
1,818.1
|
Gross Profit
|
|
407.7
|
|
268.1
|
|
1,263.1
|
|
775.6
|
Operating
Expenses
|
|
233.8
|
|
144.4
|
|
724.4
|
|
432.9
|
Asset
Impairments
|
|
—
|
|
2.8
|
|
—
|
|
5.1
|
Total Operating
Expenses
|
|
233.8
|
|
147.2
|
|
724.4
|
|
438.0
|
Income from
Operations
|
|
173.9
|
|
120.9
|
|
538.7
|
|
337.6
|
Other Income,
Net
|
|
(1.3)
|
|
(1.2)
|
|
(4.1)
|
|
(3.6)
|
Interest
Expense
|
|
21.4
|
|
22.0
|
|
43.8
|
|
46.1
|
Interest
Income
|
|
1.3
|
|
2.3
|
|
3.2
|
|
5.5
|
Income before
Taxes
|
|
155.1
|
|
102.4
|
|
502.2
|
|
300.6
|
Provision for Income
Taxes
|
|
33.2
|
|
21.0
|
|
110.0
|
|
62.9
|
Net Income
|
|
121.9
|
|
81.4
|
|
392.2
|
|
237.7
|
Less: Net Income
Attributable to Noncontrolling
Interests
|
|
2.1
|
|
1.6
|
|
4.8
|
|
4.6
|
Net Income Attributable
to Regal Rexnord
Corporation
|
|
$
119.8
|
|
$
79.8
|
|
$
387.4
|
|
$
233.1
|
Earnings Per Share
Attributable to Regal Rexnord
Corporation:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.81
|
|
$
1.96
|
|
$
5.80
|
|
$
5.73
|
Assuming
Dilution
|
|
$
1.80
|
|
$
1.95
|
|
$
5.76
|
|
$
5.69
|
Cash Dividends Declared
Per Share
|
|
$
0.35
|
|
$
0.33
|
|
$
1.03
|
|
$
0.96
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
66.3
|
|
40.7
|
|
66.8
|
|
40.7
|
Assuming
Dilution
|
|
66.7
|
|
41.0
|
|
67.2
|
|
41.0
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Sep 30,
2022
|
|
Jan 1, 2022
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
723.6
|
|
$
672.8
|
Trade Receivables, less
Allowances
of
$29.2 million in 2022 and $18.7 million in
2021
|
|
816.0
|
|
785.8
|
Inventories
|
|
1,361.5
|
|
1,192.4
|
Prepaid Expenses and
Other Current Assets
|
|
145.0
|
|
157.6
|
Total Current
Assets
|
|
3,046.1
|
|
2,808.6
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
7,202.9
|
|
7,558.8
|
Total Assets
|
|
$
10,249.0
|
|
$
10,367.4
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
548.2
|
|
$
643.8
|
Other Accrued
Expenses
|
|
473.9
|
|
446.6
|
Current Maturities of
Debt
|
|
30.7
|
|
4.9
|
Total Current
Liabilities
|
|
1,052.8
|
|
1,095.3
|
|
|
|
|
|
Long-Term
Debt
|
|
2,165.2
|
|
1,913.6
|
Other Noncurrent
Liabilities
|
|
859.2
|
|
950.3
|
Equity:
|
|
|
|
|
Total Regal Rexnord
Corporation Shareholders' Equity
|
|
6,139.9
|
|
6,370.0
|
Noncontrolling
Interests
|
|
31.9
|
|
38.2
|
Total Equity
|
|
6,171.8
|
|
6,408.2
|
Total Liabilities and
Equity
|
|
$
10,249.0
|
|
$
10,367.4
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOW
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2022
|
|
Oct 2, 2021
|
|
Sep 30,
2022
|
|
Oct 2, 2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
121.9
|
|
$
81.4
|
|
$
392.2
|
|
$
237.7
|
Adjustments to
Reconcile Net Income and Changes in Assets
and Liabilities (Net of Acquisitions and Divestitures) to Net
Cash (Used in) Provided by Operating Activities:
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
74.1
|
|
30.5
|
|
230.4
|
|
92.8
|
Noncash Lease
Expense
|
|
8.0
|
|
5.9
|
|
24.3
|
|
18.3
|
Loss (Gain) on Disposal
of Assets
|
|
2.5
|
|
(1.6)
|
|
0.8
|
|
(1.1)
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
2.8
|
|
—
|
|
5.1
|
Share-Based
Compensation Expense
|
|
5.8
|
|
3.7
|
|
17.0
|
|
11.5
|
Financing Fees
Amortization
|
|
0.4
|
|
3.9
|
|
1.8
|
|
12.5
|
Early Debt
Extinguishment Charge
|
|
—
|
|
12.7
|
|
—
|
|
12.7
|
Change in Operating
Assets and Liabilities
|
|
(79.6)
|
|
(17.8)
|
|
(428.5)
|
|
(131.4)
|
Net Cash Provided by
Operating Activities
|
|
133.1
|
|
121.5
|
|
238.0
|
|
258.1
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to Property,
Plant and Equipment
|
|
(22.0)
|
|
(13.2)
|
|
(54.6)
|
|
(37.5)
|
Proceeds Received from
Sales of Property, Plant and
Equipment
|
|
—
|
|
2.3
|
|
5.5
|
|
4.1
|
Business Acquisitions,
Net of Cash Acquired
|
|
—
|
|
(0.3)
|
|
(35.0)
|
|
(4.1)
|
Net Cash Used in
Investing Activities
|
|
(22.0)
|
|
(11.2)
|
|
(84.1)
|
|
(37.5)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net Borrowings
(Repayments) Under Revolving Credit Facility
|
|
40.0
|
|
27.8
|
|
(136.7)
|
|
27.8
|
Net Borrowings
(Repayments) of Short-Term Borrowings
|
|
—
|
|
0.1
|
|
(2.0)
|
|
0.1
|
Proceeds from Long-Term
Borrowings
|
|
—
|
|
—
|
|
1,536.8
|
|
—
|
Repayments of Long-Term
Borrowings
|
|
(7.5)
|
|
(400.1)
|
|
(1,115.9)
|
|
(450.3)
|
Dividends Paid to
Shareholders
|
|
(23.6)
|
|
(13.4)
|
|
(67.9)
|
|
(37.8)
|
Proceeds from the
Exercise of Stock Options
|
|
1.4
|
|
—
|
|
4.8
|
|
0.1
|
Early Debt
Extinguishment Payments
|
|
—
|
|
(12.7)
|
|
—
|
|
(12.7)
|
Repurchase of Common
Stock
|
|
(55.2)
|
|
—
|
|
(239.2)
|
|
—
|
Distributions to
Noncontrolling Interest
|
|
(6.2)
|
|
—
|
|
(6.2)
|
|
(4.5)
|
Shares Surrendered for
Taxes
|
|
(0.5)
|
|
(0.4)
|
|
(8.6)
|
|
(6.5)
|
Financing Fees
Paid
|
|
—
|
|
—
|
|
(6.5)
|
|
(17.0)
|
Net Cash Used in
Financing Activities
|
|
(51.6)
|
|
(398.7)
|
|
(41.4)
|
|
(500.8)
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH
EQUIVALENTS
|
|
(38.4)
|
|
(1.5)
|
|
(61.7)
|
|
(2.5)
|
Net Increase (Decrease)
in Cash and Cash Equivalents
|
|
21.1
|
|
(289.9)
|
|
50.8
|
|
(282.7)
|
Cash and Cash
Equivalents at Beginning of Period
|
|
702.5
|
|
618.5
|
|
672.8
|
|
611.3
|
Cash and Cash
Equivalents at End of Period
|
|
$
723.6
|
|
$
328.6
|
|
$
723.6
|
|
$
328.6
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion Control
Solutions
|
|
Total Regal
Rexnord
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
Net Sales
|
|
$
289.9
|
|
$
268.7
|
|
$
163.5
|
|
$
148.0
|
|
$
279.2
|
|
$
268.4
|
|
$
592.7
|
|
$
207.6
|
|
$
1,325.3
|
|
$
892.7
|
Adjusted Net
Sales*
|
|
$
289.9
|
|
$
268.7
|
|
$
163.5
|
|
$
148.0
|
|
$
279.2
|
|
$
268.4
|
|
$
592.7
|
|
$
207.6
|
|
$
1,325.3
|
|
$
892.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
13.6 %
|
|
13.2 %
|
|
9.6 %
|
|
6.0 %
|
|
11.2 %
|
|
20.7 %
|
|
14.7 %
|
|
10.1 %
|
|
13.1 %
|
|
13.5 %
|
Adjusted Operating
Margin*
|
|
13.8 %
|
|
13.4 %
|
|
10.9 %
|
|
5.1 %
|
|
14.3 %
|
|
20.8 %
|
|
16.6 %
|
|
20.0 %
|
|
14.8 %
|
|
15.8 %
|
Adjusted EBITDA
Margin %
|
|
16.7 %
|
|
16.5 %
|
|
13.2 %
|
|
9.5 %
|
|
16.4 %
|
|
23.1 %
|
|
27.2 %
|
|
26.9 %
|
|
20.9 %
|
|
19.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
11.5 %
|
|
20.9 %
|
|
14.7 %
|
|
3.6 %
|
|
4.9 %
|
|
14.2 %
|
|
3.6 %
|
|
23.7 %
|
|
8.2 %
|
|
16.3 %
|
Acquisitions
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
184.1 %
|
|
— %
|
|
42.8 %
|
|
— %
|
Foreign Currency
Impact
|
|
(3.6) %
|
|
2.1 %
|
|
(4.2) %
|
|
3.0 %
|
|
(0.9) %
|
|
0.5 %
|
|
(2.2) %
|
|
0.7 %
|
|
(2.5) %
|
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion Control
Solutions
|
|
Total Regal
Rexnord
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
Net Sales
|
|
$
885.1
|
|
$
775.0
|
|
$
462.9
|
|
$
429.6
|
|
$
846.6
|
|
$
764.8
|
|
$
1,778.6
|
|
$
624.3
|
|
$
3,973.2
|
|
$
2,593.7
|
Adjusted Net
Sales*
|
|
$
885.1
|
|
$
775.0
|
|
$
462.9
|
|
$
429.6
|
|
$
846.6
|
|
$
764.8
|
|
$
1,778.6
|
|
$
624.3
|
|
$
3,973.2
|
|
$
2,593.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
15.2 %
|
|
11.8 %
|
|
9.7 %
|
|
4.2 %
|
|
15.0 %
|
|
19.4 %
|
|
13.1 %
|
|
12.8 %
|
|
13.6 %
|
|
13.0 %
|
Adjusted Operating
Margin*
|
|
15.2 %
|
|
12.7 %
|
|
10.2 %
|
|
4.1 %
|
|
16.1 %
|
|
19.5 %
|
|
15.1 %
|
|
19.7 %
|
|
14.8 %
|
|
15.0 %
|
Adjusted EBITDA
Margin %
|
|
18.1 %
|
|
16.1 %
|
|
12.7 %
|
|
8.7 %
|
|
18.2 %
|
|
21.8 %
|
|
26.2 %
|
|
26.7 %
|
|
21.1 %
|
|
19.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth
|
|
16.6 %
|
|
27.3 %
|
|
10.5 %
|
|
5.7 %
|
|
11.3 %
|
|
22.4 %
|
|
6.6 %
|
|
18.1 %
|
|
11.6 %
|
|
19.7 %
|
Acquisitions
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
180.0 %
|
|
— %
|
|
43.3 %
|
|
— %
|
Foreign Currency
Impact
|
|
(2.4) %
|
|
3.2 %
|
|
(2.7) %
|
|
4.7 %
|
|
(0.6) %
|
|
0.5 %
|
|
(1.7) %
|
|
1.6 %
|
|
(1.8) %
|
|
2.3 %
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
GAAP Diluted Earnings
Per Share
|
|
$
1.80
|
|
$
1.95
|
|
$
5.76
|
|
$
5.69
|
Restructuring and
Related Costs
|
|
0.29
|
|
0.05
|
|
0.47
|
|
0.19
|
Transaction and Related
Costs
|
|
—
|
|
0.59
|
|
0.05
|
|
1.14
|
Inventory Step Up
Adjustment
|
|
(0.04)
|
|
—
|
|
0.06
|
|
—
|
Intangible
Amortization
|
|
0.51
|
|
0.20
|
|
1.56
|
|
0.61
|
Share-Based
Compensation Expense
|
|
0.08
|
|
0.07
|
|
0.22
|
|
0.21
|
Gain on Sale of
Assets
|
|
—
|
|
(0.03)
|
|
(0.04)
|
|
(0.04)
|
Loss on Businesses
Divested and Assets to be Exited
|
|
—
|
|
0.05
|
|
—
|
|
0.09
|
Discrete Tax
Items
|
|
0.02
|
|
—
|
|
0.02
|
|
—
|
Adjusted Diluted
Earnings Per Share
|
|
$
2.66
|
|
$
2.88
|
|
$
8.10
|
|
$
7.89
|
|
|
|
|
|
|
|
|
|
2022 ADJUSTED ANNUAL
GUIDANCE
|
|
Minimum
|
|
Maximum
|
2022
Diluted EPS Annual Guidance
|
|
$
7.15
|
|
$
7.55
|
Restructuring and
Related Costs
|
|
0.72
|
|
0.72
|
Intangible
Amortization
|
|
2.08
|
|
2.08
|
Share-Based
Compensation Expense
|
|
0.30
|
|
0.30
|
Transaction and Related
Costs
|
|
0.06
|
|
0.06
|
Inventory Step Up
Adjustment
|
|
0.06
|
|
0.06
|
Gain on Sales of
Assets
|
|
(0.04)
|
|
(0.04)
|
Discrete Tax
Items
|
|
0.02
|
|
0.02
|
2022
Adjusted Diluted EPS Annual
Guidance
|
|
$
10.35
|
|
$
10.75
|
|
|
Three Months
Ended
|
ADJUSTED
EBITDA
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion Control
Solutions
|
|
Total Regal
Rexnord
|
(Dollars in
Millions)
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
GAAP Income from
Operations
|
|
$
39.5
|
|
$
35.4
|
|
$
15.7
|
|
$ 8.9
|
|
$
31.4
|
|
$
55.6
|
|
$
87.3
|
|
$
21.0
|
|
$
173.9
|
|
$
120.9
|
Restructuring and
Related Costs
|
|
0.4
|
|
0.3
|
|
2.2
|
|
0.8
|
|
8.4
|
|
0.1
|
|
14.7
|
|
1.6
|
|
25.7
|
|
2.8
|
Transaction and Related
Costs
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16.1
|
|
—
|
|
16.1
|
Inventory Step Up
Adjustment
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.5)
|
|
—
|
|
(3.5)
|
|
—
|
Loss on Businesses
Divested
and Assets to be Exited
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.8
|
|
—
|
|
2.8
|
Loss (Gain) on Sale of
Assets
|
|
—
|
|
0.2
|
|
—
|
|
(2.1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1.9)
|
Adjusted Income from
Operations
|
|
$
39.9
|
|
$
35.9
|
|
$
17.9
|
|
$ 7.6
|
|
$
39.8
|
|
$
55.7
|
|
$
98.5
|
|
$
41.5
|
|
$
196.1
|
|
$
140.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$ 5.6
|
|
$ 5.7
|
|
$ 3.1
|
|
$ 5.6
|
|
$ 3.9
|
|
$ 3.5
|
|
$
15.9
|
|
$ 5.2
|
|
$
28.5
|
|
$
20.0
|
Amortization
|
|
1.6
|
|
1.5
|
|
0.2
|
|
0.2
|
|
0.5
|
|
0.9
|
|
43.3
|
|
7.9
|
|
45.6
|
|
10.5
|
Other Income,
Net
|
|
0.3
|
|
0.3
|
|
—
|
|
0.2
|
|
0.3
|
|
0.4
|
|
0.7
|
|
0.3
|
|
1.3
|
|
1.2
|
Adjusted Bank
EBITDA
|
|
$
47.4
|
|
$
43.4
|
|
$
21.2
|
|
$
13.6
|
|
$
44.5
|
|
$
60.5
|
|
$
158.4
|
|
$
54.9
|
|
$
271.5
|
|
$
172.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-Based
Compensation Expense
|
|
$ 1.1
|
|
$ 0.9
|
|
$ 0.4
|
|
$ 0.4
|
|
$ 1.3
|
|
$ 1.4
|
|
$ 3.0
|
|
$ 1.0
|
|
$ 5.8
|
|
$ 3.7
|
Adjusted
EBITDA
|
|
$
48.5
|
|
$
44.3
|
|
$
21.6
|
|
$
14.0
|
|
$
45.8
|
|
$
61.9
|
|
$
161.4
|
|
$
55.9
|
|
$
277.3
|
|
$
176.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
13.6 %
|
|
13.2 %
|
|
9.6 %
|
|
6.0 %
|
|
11.2 %
|
|
20.7 %
|
|
14.7 %
|
|
10.1 %
|
|
13.1 %
|
|
13.5 %
|
Adjusted Operating
Margin %
|
|
13.8 %
|
|
13.4 %
|
|
10.9 %
|
|
5.1 %
|
|
14.3 %
|
|
20.8 %
|
|
16.6 %
|
|
20.0 %
|
|
14.8 %
|
|
15.8 %
|
Adjusted EBITDA Margin
%
|
|
16.7 %
|
|
16.5 %
|
|
13.2 %
|
|
9.5 %
|
|
16.4 %
|
|
23.1 %
|
|
27.2 %
|
|
26.9 %
|
|
20.9 %
|
|
19.7 %
|
|
|
Nine Months
Ended
|
ADJUSTED
EBITDA
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion Control
Solutions
|
|
Total Regal
Rexnord
|
(Dollars in
Millions)
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
GAAP Income from
Operations
|
|
$
134.1
|
|
$
91.6
|
|
$
44.8
|
|
$
18.1
|
|
$
127.2
|
|
$ 148.3
|
|
$
232.6
|
|
$
79.6
|
|
$
538.7
|
|
$
337.6
|
Restructuring and
Related Costs
|
|
1.0
|
|
4.6
|
|
2.5
|
|
1.6
|
|
9.1
|
|
0.7
|
|
29.0
|
|
3.2
|
|
41.6
|
|
10.1
|
Transaction and Related
Costs
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4.3
|
|
37.9
|
|
4.3
|
|
37.9
|
Inventory Step Up
Adjustment
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5.5
|
|
—
|
|
5.5
|
|
—
|
Loss on Businesses
Divested
and Assets to be Exited
|
|
—
|
|
1.8
|
|
—
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
2.8
|
|
—
|
|
5.1
|
(Gain) Loss on Sale of
Assets
|
|
(0.7)
|
|
0.2
|
|
—
|
|
(2.2)
|
|
—
|
|
—
|
|
(2.6)
|
|
(0.5)
|
|
(3.3)
|
|
(2.5)
|
Adjusted Income from
Operations
|
|
$
134.4
|
|
$
98.2
|
|
$
47.3
|
|
$
17.5
|
|
$
136.3
|
|
$ 149.5
|
|
$
268.8
|
|
$ 123.0
|
|
$
586.8
|
|
$
388.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
17.3
|
|
$
17.6
|
|
$ 9.7
|
|
$
16.6
|
|
$
11.8
|
|
$ 9.6
|
|
$
52.2
|
|
$
16.2
|
|
$
91.0
|
|
$
60.0
|
Amortization
|
|
5.0
|
|
5.2
|
|
0.6
|
|
0.8
|
|
1.4
|
|
2.9
|
|
132.4
|
|
23.9
|
|
139.4
|
|
32.8
|
Other Income,
Net
|
|
0.9
|
|
0.9
|
|
0.4
|
|
0.6
|
|
0.9
|
|
1.2
|
|
1.9
|
|
0.9
|
|
4.1
|
|
3.6
|
Adjusted Bank
EBITDA
|
|
$
157.6
|
|
$ 121.9
|
|
$
58.0
|
|
$
35.5
|
|
$
150.4
|
|
$ 163.2
|
|
$
455.3
|
|
$ 164.0
|
|
$
821.3
|
|
$
484.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-Based
Compensation
Expense
|
|
$ 2.8
|
|
$ 2.9
|
|
$ 0.8
|
|
$ 1.9
|
|
$ 3.5
|
|
$ 3.7
|
|
$ 9.9
|
|
$ 3.0
|
|
$
17.0
|
|
$
11.5
|
Adjusted
EBITDA
|
|
$
160.4
|
|
$ 124.8
|
|
$
58.8
|
|
$
37.4
|
|
$
153.9
|
|
$ 166.9
|
|
$
465.2
|
|
$ 167.0
|
|
$
838.3
|
|
$
496.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
15.2 %
|
|
11.8 %
|
|
9.7 %
|
|
4.2 %
|
|
15.0 %
|
|
19.4 %
|
|
13.1 %
|
|
12.8 %
|
|
13.6 %
|
|
13.0 %
|
Adjusted Operating
Margin %
|
|
15.2 %
|
|
12.7 %
|
|
10.2 %
|
|
4.1 %
|
|
16.1 %
|
|
19.5 %
|
|
15.1 %
|
|
19.7 %
|
|
14.8 %
|
|
15.0 %
|
Adjusted EBITDA Margin
%
|
|
18.1 %
|
|
16.1 %
|
|
12.7 %
|
|
8.7 %
|
|
18.2 %
|
|
21.8 %
|
|
26.2 %
|
|
26.7 %
|
|
21.1 %
|
|
19.1 %
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Sep 30,
2022
|
|
Jan 1, 2022
|
Net Income
|
|
$
390.3
|
|
$
235.8
|
Interest
Expense
|
|
|
|
58.1
|
|
60.4
|
Interest
Income
|
|
|
|
(5.1)
|
|
(7.4)
|
Taxes
|
|
|
|
121.8
|
|
74.7
|
Depreciation and
Amortization
|
|
|
|
308.2
|
|
170.6
|
EBITDA
|
|
|
|
$
873.3
|
|
$
534.1
|
Restructuring and
Related Costs
|
|
|
|
53.5
|
|
22.0
|
Transaction and Related
Costs
|
|
|
|
55.5
|
|
89.1
|
Impairments and Exit
Related Costs
|
|
|
|
0.5
|
|
5.6
|
Goodwill
Impairment
|
|
|
|
33.0
|
|
33.0
|
Inventory Step
Up
|
|
|
|
29.8
|
|
24.3
|
Gain on Sale of
Assets
|
|
|
|
(3.3)
|
|
(2.5)
|
Adjusted Bank
EBITDA
|
|
|
|
$
1,042.3
|
|
$
705.6
|
|
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
30.7
|
|
$
4.9
|
Long-Term
Debt
|
|
|
|
2,165.2
|
|
1,913.6
|
Total Gross
Debt
|
|
|
|
$
2,195.9
|
|
$
1,918.5
|
Cash
|
|
|
|
(723.6)
|
|
(672.8)
|
Net
Debt
|
|
|
|
$
1,472.3
|
|
$
1,245.7
|
|
|
|
|
|
|
|
Gross
Debt/EBITDA
|
|
|
|
2.5
|
|
3.6
|
Gross Debt/Adjusted
Bank EBITDA
|
|
|
|
2.1
|
|
2.7
|
|
|
|
|
|
|
|
Net
Debt/EBITDA
|
|
|
|
1.7
|
|
2.3
|
Net Debt/Adjusted Bank
EBITDA
|
|
|
|
1.4
|
|
1.8
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
Net Cash Provided by
Operating Activities
|
|
$
133.1
|
|
$
121.5
|
|
$
238.0
|
|
$
258.1
|
Additions to Property
Plant and Equipment
|
|
(22.0)
|
|
(13.2)
|
|
(54.6)
|
|
(37.5)
|
Free Cash
Flow
|
|
$
111.1
|
|
$
108.3
|
|
$
183.4
|
|
$
220.6
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
Attributable to Regal Rexnord
Corporation
|
|
$
119.8
|
|
$
79.8
|
|
$
387.4
|
|
$
233.1
|
Early Debt Termination
Charge
|
|
—
|
|
12.7
|
|
—
|
|
12.7
|
Loss on Businesses
Divested and Impairments
|
|
—
|
|
2.8
|
|
—
|
|
5.1
|
Tax Effect from Loss on
Businesses Divested and
Impairments
|
|
—
|
|
(3.8)
|
|
—
|
|
(4.3)
|
Adjusted Net Income
Attributable to Regal Rexnord
Corporation
|
|
$
119.8
|
|
$
91.5
|
|
$
387.4
|
|
$
246.6
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net
Income Attributable to Regal Rexnord Corporation
|
|
92.7 %
|
|
118.4 %
|
|
47.3 %
|
|
89.5 %
|
|
|
|
|
|
|
|
|
|
ADJUSTED EFFECTIVE
TAX RATE
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
Sep 30,
2022
|
|
Oct 2,
2021
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
155.1
|
|
$
102.4
|
|
$
502.2
|
|
$
300.6
|
Provision for Income
Taxes
|
|
33.2
|
|
21.0
|
|
110.0
|
|
62.9
|
Effective Tax
Rate
|
|
21.4 %
|
|
20.5 %
|
|
21.9 %
|
|
20.9 %
|
|
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
155.1
|
|
$
102.4
|
|
$
502.2
|
|
$
300.6
|
Restructuring and
Related Costs
|
|
25.7
|
|
2.8
|
|
41.6
|
|
10.1
|
Transaction and Related
Costs
|
|
—
|
|
32.2
|
|
4.3
|
|
61.7
|
Inventory Step Up
Adjustment
|
|
(3.5)
|
|
—
|
|
5.5
|
|
—
|
Intangible
Amortization
|
|
45.6
|
|
10.5
|
|
139.4
|
|
32.8
|
Share-Based
Compensation Expense
|
|
5.8
|
|
3.7
|
|
17.0
|
|
11.5
|
Gain on Sales of
Assets
|
|
—
|
|
(1.9)
|
|
(3.3)
|
|
(2.5)
|
Loss on Businesses
Divested and Assets to
be Exited
|
|
—
|
|
2.8
|
|
—
|
|
5.1
|
Adjusted Income before
Taxes
|
|
$
228.7
|
|
$
152.5
|
|
$
706.7
|
|
$
419.3
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
33.2
|
|
$
21.0
|
|
$
110.0
|
|
$
62.9
|
Tax Effect from
Restructuring and Related Costs
|
|
6.3
|
|
0.7
|
|
10.3
|
|
2.4
|
Tax Effect of
Transaction and Related Costs
|
|
—
|
|
7.8
|
|
1.0
|
|
14.9
|
Tax Effect of Inventory
Step Up Adjustment
|
|
(0.8)
|
|
—
|
|
1.3
|
|
—
|
Tax Effect of
Intangible Amortization
|
|
11.2
|
|
2.5
|
|
34.2
|
|
7.9
|
Tax Effect of
Share-Based Compensation Expense
|
|
0.8
|
|
0.9
|
|
2.3
|
|
2.8
|
Tax Effect of Gain on
Sales of Assets
|
|
—
|
|
(0.5)
|
|
(0.8)
|
|
(0.6)
|
Tax Effect from Loss on
Businesses Divested and Assets to be Exited
|
|
—
|
|
0.7
|
|
—
|
|
1.2
|
Discrete Tax
Items
|
|
(1.4)
|
|
—
|
|
(1.4)
|
|
—
|
Adjusted Provision for
Income Taxes
|
|
$
49.3
|
|
$
33.1
|
|
$
156.9
|
|
$
91.5
|
|
|
|
|
|
|
|
|
|
Adjusted Effective Tax
Rate
|
|
21.6 %
|
|
21.7 %
|
|
22.2 %
|
|
21.8 %
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
September 30,
2022
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion
Control
Solutions
|
|
Total Regal
Rexnord
|
Net Sales Three Months
Ended Sep 30,
2022
|
|
$
289.9
|
|
$
163.5
|
|
$
279.2
|
|
$
592.7
|
|
$ 1,325.3
|
Net Sales from
Businesses Acquired
|
|
—
|
|
—
|
|
—
|
|
(382.1)
|
|
(382.1)
|
Impact from Foreign
Currency Exchange
Rates
|
|
9.7
|
|
6.2
|
|
2.4
|
|
4.5
|
|
22.8
|
Organic Sales Three
Months Ended Sep
30, 2022
|
|
$
299.6
|
|
$
169.7
|
|
$
281.6
|
|
$
215.1
|
|
$
966.0
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three Months
Ended Oct 2,
2021
|
|
$
268.7
|
|
$
148.0
|
|
$
268.4
|
|
$
207.6
|
|
$
892.7
|
Adjusted Net Sales
Three Months Ended
Oct 2, 2021
|
|
$
268.7
|
|
$
148.0
|
|
$
268.4
|
|
$
207.6
|
|
$
892.7
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Sep
30, 2022
Organic Sales Growth %
|
|
11.5 %
|
|
14.7 %
|
|
4.9 %
|
|
3.6 %
|
|
8.2 %
|
Three Months Ended Sep
30, 2022 Net
Sales Growth %
|
|
7.9 %
|
|
10.5 %
|
|
4.0 %
|
|
185.5 %
|
|
48.5 %
|
|
|
|
|
|
|
|
|
|
|
|
ORGANIC SALES
GROWTH
|
|
Nine Months
Ended
|
|
|
September 30,
2022
|
|
|
Commercial
Systems
|
|
Industrial
Systems
|
|
Climate
Solutions
|
|
Motion
Control
Solutions
|
|
Total Regal
Rexnord
|
Net Sales Nine Months
Ended Sep 30,
2022
|
|
$
885.1
|
|
$
462.9
|
|
$
846.6
|
|
$
1,778.6
|
|
$ 3,973.2
|
Net Sales from
Businesses Acquired
|
|
—
|
|
—
|
|
—
|
|
(1,123.7)
|
|
(1,123.7)
|
Impact from Foreign
Currency Exchange
Rates
|
|
18.9
|
|
11.8
|
|
5.0
|
|
10.5
|
|
46.2
|
Organic Sales Nine
Months Ended Sep
30, 2022
|
|
$
904.0
|
|
$
474.7
|
|
$
851.6
|
|
$
665.4
|
|
$ 2,895.7
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Nine Months
Ended Oct 2,
2021
|
|
$
775.0
|
|
$
429.6
|
|
$
764.8
|
|
$
624.3
|
|
$ 2,593.7
|
Adjusted Net Sales Nine
Months Ended
Oct 2, 2021
|
|
$
775.0
|
|
$
429.6
|
|
$
764.8
|
|
$
624.3
|
|
$ 2,593.7
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended Sep
30, 2022
Organic Sales Growth %
|
|
16.6 %
|
|
10.5 %
|
|
11.3 %
|
|
6.6 %
|
|
11.6 %
|
Nine Months Ended Sep
30, 2022 Net
Sales Growth %
|
|
14.2 %
|
|
7.8 %
|
|
10.7 %
|
|
184.9 %
|
|
53.2 %
|
View original
content:https://www.prnewswire.com/news-releases/regal-rexnord-corporation-reports-strong-third-quarter-2022-financial-results-301663929.html
SOURCE Regal Rexnord Corporation