BELOIT,
Wis., May 4, 2023 /PRNewswire/ -- Regal Rexnord
Corporation (NYSE: RRX)
First Quarter Highlights
- Closed Transformational Acquisition Of Altra Industrial Motion
Corp. ("Altra")
- Altra's 1Q Performance In Line With RRX Expectations
- Outgrowth In AMC, Strength In IPS, Effectively Managing Market
Headwinds In PES
- Robust Free Cash Flow* Of $174.4
Million
- Organic Revenue* Down 4% Versus PY
- Organic Orders Down 9% Versus PY - Better Than Expected
- GAAP Diluted EPS Of ($0.09) And
Adjusted Diluted EPS* Of $2.22
- Net Debt* To Normalized Adjusted EBITDA* Of 3.96
- Updating 2023 Guidance To Include Altra. Now Expect GAAP
Diluted EPS In A Range Of $2.74 To
$3.64 And For Adjusted Diluted EPS In
A Range Of $10.20 To $11.10 (Altra Expected To Add $0.15 to $0.25)
CEO Louis Pinkham commented,
"The highlight of first quarter was expeditiously closing the
Altra transaction and welcoming our new Regal Rexnord colleagues
from Altra. We see a tremendous opportunity to accelerate
profitable growth together with Altra. Our extensive, pre-close
integration planning allowed us to hit the ground running towards
pursuing the $160 million in Altra
cost synergies. And even though we're only a few weeks
post-closing, teams across the combined organization have already
been meeting and identifying cross-marketing synergies - an
opportunity we are extremely excited about, and will look to
quantify in the future."
Mr. Pinkham continued, "Regarding our legacy Regal Rexnord
business, I am pleased with our first quarter performance. While
our PES business saw pressure related to reducing channel
inventories and market headwinds, the Regal Rexnord team overall
did a great job executing what is under our control. Notably, we
made meaningful progress on working capital and, in particular,
lowering inventory, which resulted in atypically strong cash flow
in the quarter. Our team also continued to execute on Rexnord PMC
synergies, which contributed to double digit organic growth in AMC
and roughly 300 basis points of adjusted EBITDA margin expansion in
AMC and IPS."
Mr. Pinkham concluded, "As I look ahead to the
remainder of 2023, I remain confident about our prospects. While
the global macro outlook continues to be uncertain, the Regal
Rexnord team will remain focused on the many self-help
opportunities in front of us, in particular, an expected
~$160 million of future Altra
synergies on top of the remaining PMC cost synergies that we are on
track to deliver, and continued execution on reducing our working
capital. Our portfolio continues to evolve towards more
technology-differentiated products, well positioned in secular end
markets. In aggregate, we believe Regal Rexnord has a host of
opportunities to create value for our customers, our associates and
our shareholders."
Guidance
The Company is updating its guidance to give effect to the
closing of the Altra transaction and its expected impact on future
performance. The 2023 annual guidance for GAAP diluted earnings per
share is now a range of $2.74 to
$3.64, compared to $5.64 to $6.44
previously. The 2023 annual guidance for adjusted diluted earnings
per share is now a range of $10.20 to
$11.10, up from a range of
$10.05 to $10.85 previously.
*Non-GAAP Financial Measurement, See Appendix for
Reconciliation
Segment Performance
In conjunction with the closing of the Altra acquisition, the
Company established a new segment structure for reporting purposes.
The new structure reflects a corresponding change in leadership as
well as the manner in which the CEO reviews financial information
to allocate resources and assess performance. Additionally, this
new structure better supports the strategic focus by the pro forma
business on driving above-market growth, primarily by leveraging
its deep application expertise and technology leadership across a
select range of end markets, to provide customers with
differentiated, and highly energy-efficient sub-systems. The new
operating segments are: Automation & Motion Control (AMC),
Industrial Powertrain Solutions (IPS), Power Efficiency Solutions
(PES) and Industrial Systems (Industrial).
Altra's results will be incorporated beginning in the second
quarter of 2023. All prior periods identified in this release have
been recast to reflect the new segment structure and provide
comparison to the previous comparable period.
First quarter 2023 segment results versus the prior year are
summarized below:
- Automation & Motion Control net sales were $203.2 million, an increase of 10.3%, or 11.7% on
an organic basis. Results reflect strength in the data center,
aerospace, and food & beverage markets. Adjusted EBITDA margin*
was 23.0% of adjusted net sales*.
- Industrial Powertrain Solutions segment net sales were
$414.4 million, a decrease of 0.5%,
or an increase of 1.3% on an organic basis. Results reflect
strength in the metals & mining and energy markets, partially
offset by project timing in alternative energy. Adjusted EBITDA
margin was 29.3% of adjusted net sales.
- Power Efficiency Solutions net sales were $469.5 million, a decrease of 17.2%, or 15.9% on
an organic basis. The decline reflects weakness in the U.S. pool
pump market, global residential HVAC markets, and U.S. and
China short cycle general
industrial markets. Adjusted EBITDA margin was 13.7% of adjusted
net sales.
- Industrial Systems net sales were $137.0
million, an increase of 4.8%, or 8.0% on an organic basis.
Results reflect strength in the North
America general industrial and global oil & gas markets,
partially offset by slowly recovering China markets. Adjusted EBITDA margin was 6.7%
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 Friday, May 5, 2023. 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 9589240# 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 6625168#. 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 factory automation sub-systems, industrial
powertrain solutions, automation and mechanical 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 operating segments:
Automation & Motion Control, Industrial Powertrain Solutions,
Power Efficiency Solutions 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. Such forward-looking
statements may include, among other things, statements about the
acquisition of Altra Industrial Motion Corp. ("Altra"), the
benefits and synergies of the acquisition of Altra (the "Altra
Transaction"), future opportunities for Regal Rexnord and any other
statements regarding Regal Rexnord's future operations, anticipated
economic activity, business levels, credit ratings, future
earnings, planned activities, anticipated growth, market
opportunities, strategies, competition and other expectations and
estimates for future periods. 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,"
"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 Regal Rexnord's 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: Regal Rexnord's substantial
indebtedness as a result of the Altra Transaction and the effects
of such indebtedness on Regal Rexnord's financial flexibility;
after the Altra Transaction; 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 Altra Transaction, and the merger with the Rexnord Process
& Motion Control business (the "Rexnord PMC business") within
the expected time-frames or at all and to successfully integrate
Altra and the Rexnord PMC business; 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 Altra Transaction or our merger with the
Rexnord PMC business; 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 merger with the Rexnord PMC
business and related transactions; requirements to abide by
potentially significant restrictions with respect to the tax
treatment of the merger with 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 climate change and
uncertainty regarding our ability to deliver on our climate
commitments and/or to meet related investor, customer and other
third party expectations relating to our sustainability efforts;
risks associated with global manufacturing, including risks
associated with 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; 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, banking crises,
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,
including in connection with our evaluation of strategic
alternatives for the global motors and generators portion of our
Industrial Systems operating segment; 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; 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; costs and
unanticipated liabilities arising from rapidly evolving data
privacy laws and regulations; cyclical downturns affecting the
global market for capital goods; and other risks and uncertainties
including, but not limited, to those described in Regal Rexnord's
Annual Report on Form 10-K on file with the Securities and Exchange
Commission (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 - Risk Factors in Regal
Rexnord's Annual Report on Form 10-K for the fiscal year ended
December 31, 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 our 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, EBITDA, adjusted EBITDA, proforma EBITDA, proforma adjusted
EBITDA, normalized adjusted EBITDA, adjusted EBITDA margin,
adjusted net income attributable to Regal Rexnord, adjusted cash
flows from operations, free cash flow, free cash flow as a
percentage of adjusted net income attributable to Regal Rexnord (or
free cash flow conversion), 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 and adjusted operating margin to help us
manage and evaluate our business and make operating decisions,
while adjusted diluted earnings per share, net debt, EBITDA,
adjusted EBITDA, proforma EBITDA, proforma adjusted EBITDA,
normalized adjusted EBITDA, adjusted EBITDA margin, adjusted net
sales, adjusted net income attributable to Regal Rexnord, adjusted
cash flows from operations, free cash flow, free cash flow as a
percentage of adjusted net income attributable to Regal Rexnord,
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" 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
|
|
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Net Sales
|
|
$
1,224.1
|
|
$ 1,298.5
|
|
Cost of
Sales
|
|
826.0
|
|
876.6
|
|
Gross Profit
|
|
398.1
|
|
421.9
|
|
Operating
Expenses
|
|
329.2
|
|
252.0
|
|
Income from
Operations
|
|
68.9
|
|
169.9
|
|
Interest
Expense
|
|
95.4
|
|
9.0
|
|
Interest
Income
|
|
(31.9)
|
|
(1.1)
|
|
Other Income,
Net
|
|
(1.4)
|
|
(1.3)
|
|
Income before
Taxes
|
|
6.8
|
|
163.3
|
|
Provision for Income
Taxes
|
|
12.3
|
|
36.2
|
|
Net (Loss)
Income
|
|
(5.5)
|
|
127.1
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
|
0.4
|
|
1.5
|
|
Net (Loss) Income
Attributable to Regal Rexnord Corporation
|
|
$
(5.9)
|
|
$
125.6
|
|
(Loss) Earnings Per
Share Attributable to Regal Rexnord Corporation:
|
|
|
|
|
|
Basic
|
|
$
(0.09)
|
|
$
1.86
|
|
Assuming
Dilution
|
|
$
(0.09)
|
|
$
1.85
|
|
Cash Dividends Declared
Per Share
|
|
$
0.35
|
|
$
0.33
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
Basic
|
|
66.2
|
|
67.4
|
|
Assuming
Dilution
|
|
66.6
|
|
67.9
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
Unaudited
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
Mar 31,
2023
|
|
Dec 31, 2022
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
1,143.3
|
|
$
688.5
|
Trade Receivables, Less
Allowances
of
$29.7 million in 2023 and $30.9 million in
2022
|
|
1,028.3
|
|
797.4
|
Inventories
|
|
1,732.5
|
|
1,336.9
|
Prepaid Expenses and
Other Current Assets
|
|
205.0
|
|
177.7
|
Total Current
Assets
|
|
4,109.1
|
|
3,000.5
|
|
|
|
|
|
Net Property, Plant,
Equipment and Noncurrent Assets
|
|
12,438.3
|
|
7,268.4
|
Total Assets
|
|
$
16,547.4
|
|
$
10,268.9
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
Payable
|
|
$
666.7
|
|
$
497.7
|
Other Accrued
Expenses
|
|
664.9
|
|
470.7
|
Current Maturities of
Debt
|
|
74.2
|
|
33.8
|
Total Current
Liabilities
|
|
1,405.8
|
|
1,002.2
|
|
|
|
|
|
Long-Term
Debt
|
|
7,210.6
|
|
1,989.7
|
Other Noncurrent
Liabilities
|
|
1,475.3
|
|
854.4
|
Equity:
|
|
|
|
|
Total Regal Rexnord
Corporation Shareholders' Equity
|
|
6,420.6
|
|
6,388.2
|
Noncontrolling
Interests
|
|
35.1
|
|
34.4
|
Total Equity
|
|
6,455.7
|
|
6,422.6
|
Total Liabilities and
Equity
|
|
$
16,547.4
|
|
$
10,268.9
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
Mar 31, 2022
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net (Loss)
Income
|
|
$
(5.5)
|
|
$
127.1
|
|
Adjustments to
Reconcile Net (Loss) Income and Changes in Assets and
Liabilities (Net of Acquisitions and Divestitures) to Net Cash
Provided by
(Used In) Operating Activities:
|
|
|
|
|
|
Depreciation and
Amortization
|
|
76.5
|
|
77.9
|
|
Noncash Lease
Expense
|
|
7.7
|
|
9.9
|
|
Share-Based
Compensation Expense
|
|
21.7
|
|
6.3
|
|
Financing Fee
Expense
|
|
23.0
|
|
0.9
|
|
Other Non-Cash
Charges
|
|
0.3
|
|
(0.3)
|
|
Change in Operating
Assets and Liabilities
|
|
(17.5)
|
|
(227.7)
|
|
Net Cash Provided by
(Used In) Operating Activities
|
|
106.2
|
|
(5.9)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Additions to Property,
Plant and Equipment
|
|
(18.7)
|
|
(13.4)
|
|
Proceeds Received from
Sales of Property, Plant and Equipment
|
|
6.1
|
|
1.4
|
|
Business Acquisitions,
Net of Cash Acquired
|
|
(4,852.9)
|
|
(35.0)
|
|
Net Cash Used in
Investing Activities
|
|
(4,865.5)
|
|
(47.0)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Net Borrowings Under
Revolving Credit Facility
|
|
253.8
|
|
218.3
|
|
Net Repayments of
Short-Term Borrowings
|
|
(1.8)
|
|
(1.9)
|
|
Proceeds from Long-Term
Borrowings
|
|
5,532.9
|
|
1,036.8
|
|
Repayments of Long-Term
Borrowings
|
|
(500.8)
|
|
(1,107.5)
|
|
Dividends Paid to
Shareholders
|
|
(23.2)
|
|
(22.3)
|
|
Proceeds from the
Exercise of Stock Options
|
|
0.9
|
|
1.8
|
|
Repurchase of Common
Stock
|
|
—
|
|
(114.2)
|
|
Shares Surrendered for
Taxes
|
|
(8.2)
|
|
(2.8)
|
|
Financing Fees
Paid
|
|
(50.0)
|
|
(4.5)
|
|
Net Cash Provided by
Financing Activities
|
|
5,203.6
|
|
3.7
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
10.5
|
|
1.1
|
|
Net Increase (Decrease)
in Cash and Cash Equivalents
|
|
454.8
|
|
(48.1)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
688.5
|
|
672.8
|
|
Cash and Cash
Equivalents at End of Period
|
|
$ 1,143.3
|
|
$
624.7
|
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Industrial
Powertrain
Solutions
|
|
Power Efficiency
Solutions
|
|
Automation &
Motion Control
|
|
Industrial
Systems
|
|
Total Regal
Rexnord
|
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
Net Sales
|
|
$
414.4
|
|
$
416.3
|
|
$
469.5
|
|
$
567.2
|
|
$
203.2
|
|
$
184.3
|
|
$
137.0
|
|
$
130.7
|
|
$
1,224.1
|
|
$
1,298.5
|
Adjusted Net
Sales
|
|
$
414.4
|
|
$
416.3
|
|
$
469.5
|
|
$
567.2
|
|
$
203.2
|
|
$
184.3
|
|
$
137.0
|
|
$
130.7
|
|
$
1,224.1
|
|
$
1,298.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
6.3 %
|
|
11.1 %
|
|
9.7 %
|
|
18.4 %
|
|
(2.6) %
|
|
6.7 %
|
|
2.0 %
|
|
5.3 %
|
|
5.6 %
|
|
13.1 %
|
Adjusted Operating
Margin*
|
|
16.6 %
|
|
15.5 %
|
|
10.7 %
|
|
18.5 %
|
|
9.0 %
|
|
8.7 %
|
|
3.7 %
|
|
5.4 %
|
|
11.6 %
|
|
14.8 %
|
Adjusted EBITDA
Margin %
|
|
29.3 %
|
|
26.4 %
|
|
13.7 %
|
|
21.1 %
|
|
23.0 %
|
|
20.1 %
|
|
6.7 %
|
|
8.5 %
|
|
19.7 %
|
|
21.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales
Growth*
|
|
1.3 %
|
|
6.8 %
|
|
(15.9) %
|
|
19.8 %
|
|
11.7 %
|
|
16.6 %
|
|
8.0 %
|
|
8.2 %
|
|
(4.1) %
|
|
15.2 %
|
Acquisitions
|
|
— %
|
|
145.6 %
|
|
— %
|
|
— %
|
|
— %
|
|
249.6 %
|
|
— %
|
|
— %
|
|
— %
|
|
45.1 %
|
Foreign Currency
Impact
|
|
(1.8) %
|
|
(0.6) %
|
|
(1.3) %
|
|
(0.7) %
|
|
(1.4) %
|
|
(2.1) %
|
|
(3.2) %
|
|
(1.1) %
|
|
(1.7) %
|
|
(0.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
GAAP Diluted (Loss)
Earnings Per Share
|
|
$
(0.09)
|
|
$
1.85
|
|
Transaction and Related
Costs (a)
|
|
1.31
|
|
0.03
|
|
Intangible
Amortization
|
|
0.53
|
|
0.52
|
|
Share-Based
Compensation Expense (h)
|
|
0.31
|
|
0.06
|
|
Discrete Tax
Items
|
|
0.10
|
|
—
|
|
Restructuring and
Related Costs (b)
|
|
0.07
|
|
0.19
|
|
Inventory Step
Up
|
|
—
|
|
0.04
|
|
Gain on Sale of
Assets
|
|
(0.01)
|
|
(0.01)
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
2.22
|
|
$
2.68
|
|
|
|
|
|
|
|
(a)
|
For 2023, primarily
relates to (1) legal, professional service, severance, certain
other employee compensation and financing costs and incremental
net interest expense on new debt associated with the Altra
Transaction and (2) legal and professional service costs associated
with the strategic
review of the Industrial Systems operating segment. For 2022,
primarily relates to legal and professional service costs
associated with the merger
with the Rexnord PMC business and acquisition of the Arrowhead
business.
|
(b)
|
Relates to costs
associated with actions taken for employee reductions, facility
consolidations and site closures, product line exits and other
asset
charges.
|
(h)
|
Includes the impact
related to the accelerated vesting of awards for certain former
Altra employees in the first quarter 2023.
|
|
|
Legacy Regal
Rexnord
|
|
Altra
Impact
|
|
Total Regal
Rexnord
|
2023 ADJUSTED ANNUAL
GUIDANCE
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
2023
GAAP Diluted EPS Annual
Guidance
|
|
$
6.69
|
|
$
7.49
|
|
$
(3.95)
|
|
$
(3.85)
|
|
$
2.74
|
|
$
3.64
|
Intangible
Amortization
|
|
2.15
|
|
2.15
|
|
1.45
|
|
1.45
|
|
3.60
|
|
3.60
|
Transaction and Related
Costs (a)
|
|
—
|
|
—
|
|
1.44
|
|
1.44
|
|
1.44
|
|
1.44
|
Restructuring and
Related Costs (b)
|
|
0.80
|
|
0.80
|
|
0.10
|
|
0.10
|
|
0.90
|
|
0.90
|
Inventory Step
Up
|
|
—
|
|
—
|
|
0.73
|
|
0.73
|
|
0.73
|
|
0.73
|
Share-Based
Compensation Expense
|
|
0.32
|
|
0.32
|
|
0.38
|
(h)
|
0.38
|
(h)
|
0.70
|
|
0.70
|
Discrete Tax
Items
|
|
0.10
|
|
0.10
|
|
—
|
|
—
|
|
0.10
|
|
0.10
|
Gain on Sales of
Assets
|
|
(0.01)
|
|
(0.01)
|
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
2023
Adjusted Diluted EPS Annual
Guidance
|
|
$
10.05
|
|
$
10.85
|
|
$
0.15
|
|
$
0.25
|
|
$
10.20
|
|
$
11.10
|
|
|
Three Months
Ended
|
ADJUSTED
EBITDA
|
|
Industrial
Powertrain
Solutions
|
|
Power Efficiency
Solutions
|
|
Automation &
Motion Control
|
|
Industrial
Systems
|
|
Total Regal
Rexnord
|
(Dollars in
Millions)
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
GAAP Income (Loss)
from
Operations
|
|
$
25.9
|
|
$
46.3
|
|
$
45.4
|
|
$
104.4
|
|
$
(5.2)
|
|
$
12.3
|
|
$ 2.8
|
|
$ 6.9
|
|
$
68.9
|
|
$
169.9
|
Transaction and Related
Costs (c)
|
|
42.0
|
|
2.0
|
|
—
|
|
—
|
|
23.5
|
|
1.0
|
|
2.1
|
|
—
|
|
67.6
|
|
3.0
|
Restructuring and
Related Costs (b)
|
|
0.8
|
|
14.4
|
|
4.7
|
|
1.0
|
|
0.5
|
|
1.5
|
|
0.2
|
|
0.1
|
|
6.2
|
|
17.0
|
Inventory Step
Up
|
|
—
|
|
1.8
|
|
—
|
|
—
|
|
—
|
|
1.2
|
|
—
|
|
—
|
|
—
|
|
3.0
|
Gain on Sale of
Assets
|
|
—
|
|
—
|
|
—
|
|
(0.7)
|
|
(0.6)
|
|
—
|
|
—
|
|
—
|
|
(0.6)
|
|
(0.7)
|
Adjusted Income from
Operations*
|
|
$
68.7
|
|
$
64.5
|
|
$
50.1
|
|
$
104.7
|
|
$
18.2
|
|
$
16.0
|
|
$ 5.1
|
|
$ 7.0
|
|
$
142.1
|
|
$
192.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
$
29.8
|
|
$
29.8
|
|
$ 2.1
|
|
$ 2.2
|
|
$
14.2
|
|
$
15.1
|
|
$ 0.2
|
|
$ 0.2
|
|
$
46.3
|
|
$
47.3
|
Depreciation
|
|
11.8
|
|
12.8
|
|
9.6
|
|
9.9
|
|
5.5
|
|
4.6
|
|
3.3
|
|
3.3
|
|
30.2
|
|
30.6
|
Share-Based
Compensation
Expense (h)
|
|
10.6
|
|
2.2
|
|
2.0
|
|
2.4
|
|
8.6
|
|
1.2
|
|
0.5
|
|
0.5
|
|
21.7
|
|
6.3
|
Other Income,
Net
|
|
0.5
|
|
0.4
|
|
0.6
|
|
0.6
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
1.4
|
|
1.3
|
Adjusted
EBITDA
|
|
$
121.4
|
|
$
109.7
|
|
$
64.4
|
|
$
119.8
|
|
$
46.7
|
|
$
37.1
|
|
$ 9.2
|
|
$
11.1
|
|
$
241.7
|
|
$
277.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
6.3 %
|
|
11.1 %
|
|
9.7 %
|
|
18.4 %
|
|
(2.6) %
|
|
6.7 %
|
|
2.0 %
|
|
5.3 %
|
|
5.6 %
|
|
13.1 %
|
Adjusted Operating
Margin %
|
|
16.6 %
|
|
15.5 %
|
|
10.7 %
|
|
18.5 %
|
|
9.0 %
|
|
8.7 %
|
|
3.7 %
|
|
5.4 %
|
|
11.6 %
|
|
14.8 %
|
Adjusted EBITDA Margin
%
|
|
29.3 %
|
|
26.4 %
|
|
13.7 %
|
|
21.1 %
|
|
23.0 %
|
|
20.1 %
|
|
6.7 %
|
|
8.5 %
|
|
19.7 %
|
|
21.4 %
|
(c)
|
For 2023, primarily
relates to (1) legal, professional service, severance and certain
other employee compensation costs associated with the Altra
Transaction and (2) legal and professional service costs associated
with the strategic review of the Industrial Systems operating
segment. For 2022,
primarily relates to
legal and professional service costs associated with the merger
with the Rexnord PMC business and acquisition of the
Arrowhead
business.
|
NET INCOME TO
ADJUSTED EBITDA
|
|
|
|
Unaudited
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Net (Loss)
Income
|
|
$
(5.5)
|
|
$
127.1
|
|
Plus: Income
Taxes
|
|
12.3
|
|
36.2
|
|
Plus: Interest
Expense
|
|
95.4
|
|
9.0
|
|
Less: Interest
Income
|
|
(31.9)
|
|
(1.1)
|
|
Plus:
Depreciation
|
|
30.2
|
|
30.6
|
|
Plus:
Amortization
|
|
46.3
|
|
47.3
|
|
EBITDA*
|
|
146.8
|
|
249.1
|
|
Plus: Transaction and
Related Costs (c)
|
|
67.6
|
|
3.0
|
|
Plus: Share-Based
Compensation Expense (h)
|
|
21.7
|
|
6.3
|
|
Plus: Restructuring and
Related Costs (b)
|
|
6.2
|
|
17.0
|
|
Plus: Inventory Step
Up
|
|
—
|
|
3.0
|
|
Less: Gain on Sale of
Assets
|
|
(0.6)
|
|
(0.7)
|
|
Adjusted
EBITDA
|
|
$
241.7
|
|
$
277.7
|
|
DEBT TO
EBITDA
|
|
|
|
Last Twelve
Months
|
|
|
|
|
Mar 31,
2023
|
Proforma Net Income
(d)
|
|
|
|
$
168.6
|
Plus: Income
Taxes
|
|
|
|
61.2
|
Plus: Interest
Expense
|
|
|
|
461.4
|
Less: Interest
Income
|
|
|
|
(6.8)
|
Plus:
Depreciation
|
|
|
|
181.3
|
Plus:
Amortization
|
|
|
|
353.6
|
Proforma
EBITDA*
|
|
|
|
$
1,219.3
|
Plus: Restructuring and
Related Costs (b)
|
|
|
|
55.7
|
Plus: Transaction and
Related Costs (c)
|
|
|
|
104.5
|
Plus: Inventory Step
Up
|
|
|
|
3.7
|
Plus: Impairments and
Exit Related Costs
|
|
|
|
8.0
|
Less: Gain on Sale of
Assets
|
|
|
|
(3.2)
|
Plus: Share-Based
Compensation Expense (h)
|
|
|
|
52.9
|
Proforma Adjusted
EBITDA*
|
|
|
|
$
1,440.9
|
Altra Synergies
Expected to be Realized Within 24 Months
|
|
|
|
110.0
|
Normalized Adjusted
EBITDA
|
|
|
|
$
1,550.9
|
|
|
|
|
|
Current Maturities of
Long-Term Debt
|
|
|
|
$
74.2
|
Long-Term
Debt
|
|
|
|
7,210.6
|
Total Gross
Debt
|
|
|
|
$
7,284.8
|
Cash
|
|
|
|
(1,143.3)
|
Net
Debt
|
|
|
|
$
6,141.5
|
|
|
|
|
|
Gross Debt/Normalized
Adjusted EBITDA
|
|
|
|
4.70
|
|
|
|
|
|
Net Debt/Normalized
Adjusted EBITDA
|
|
|
|
3.96
|
|
|
(d)
|
Includes Altra
results.
|
FREE CASH
FLOW
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
Mar 31,
2022
|
|
Net Cash Provided by
(Used In) Operating Activities
|
|
$
106.2
|
|
$
(5.9)
|
|
Payments for Certain
Acquisition Costs (Net of Tax of $11.4 Million)
(e)
|
|
86.9
|
|
—
|
|
Adjusted Cash Flows
from Operations*
|
|
193.1
|
|
(5.9)
|
|
Additions to Property
Plant and Equipment
|
|
(18.7)
|
|
(13.4)
|
|
Free Cash
Flow
|
|
$
174.4
|
|
$
(19.3)
|
|
|
|
|
|
|
|
GAAP Net (Loss) Income
Attributable to Regal Rexnord Corporation
|
|
$
(5.9)
|
|
$
125.6
|
|
Certain Acquisition
Costs (Net of Tax of $5.9 Million) (f)
|
|
32.3
|
|
—
|
|
Write-Off of Bridge
Facility Costs (Net of Tax of $4.1 Million)
|
|
13.0
|
|
—
|
|
Adjusted Net Income
Attributable to Regal Rexnord Corporation*
|
|
$
39.4
|
|
$
125.6
|
|
|
|
|
|
|
|
Free Cash Flow as a
Percentage of Adjusted Net Income Attributable
to Regal Rexnord Corporation*
|
|
442.6 %
|
|
(15.4) %
|
|
|
|
|
|
|
|
(e)
|
Reflects the payment of
Regal Rexnord's and Altra's advisor success fees.
|
(f)
|
Reflects the charge
related to Regal Rexnord's advisor success fees.
|
ADJUSTED EFFECTIVE
TAX RATE
|
|
Three Months
Ended
|
|
|
|
Mar 3,
2023
|
|
Mar 31,
2022
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
6.8
|
|
$
163.3
|
|
Provision for Income
Taxes
|
|
12.3
|
|
36.2
|
|
Effective Tax
Rate
|
|
180.9 %
|
|
22.2 %
|
|
|
|
|
|
|
|
Income before
Taxes
|
|
$
6.8
|
|
$
163.3
|
|
Transaction and Related
Costs (a)
|
|
105.8
|
|
3.0
|
|
Intangible
Amortization
|
|
46.3
|
|
47.3
|
|
Share-Based
Compensation Expense (h)
|
|
21.7
|
|
6.3
|
|
Restructuring and
Related Costs (b)
|
|
6.2
|
|
17.0
|
|
Inventory Step
Up
|
|
—
|
|
3.0
|
|
Gain on Sales of
Assets
|
|
(0.6)
|
|
(0.7)
|
|
Adjusted Income before
Taxes*
|
|
$
186.2
|
|
$
239.2
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
$
12.3
|
|
$
36.2
|
|
Tax Effect of
Transaction and Related Costs
|
|
18.3
|
|
0.7
|
|
Tax Effect of
Intangible Amortization
|
|
11.4
|
|
11.8
|
|
Tax Effect of
Share-Based Compensation Expense
|
|
1.2
|
|
2.2
|
|
Tax Effect from
Restructuring and Related Costs
|
|
1.6
|
|
4.1
|
|
Tax Effect of Inventory
Step Up
|
|
—
|
|
0.6
|
|
Tax Effect of Gain on
Sales of Assets
|
|
(0.1)
|
|
(0.2)
|
|
Discrete Tax
Items
|
|
(6.5)
|
|
—
|
|
Adjusted Provision for
Income Taxes*
|
|
$
38.2
|
|
$
55.4
|
|
|
|
|
|
|
|
Adjusted Effective Tax
Rate*
|
|
20.5 %
|
|
23.2 %
|
|
ORGANIC SALES
GROWTH
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
|
Industrial
Powertrain
Solutions
|
|
Power
Efficiency
Solutions
|
|
Automation
& Motion
Control
|
|
Industrial
Systems
|
|
Total Regal
Rexnord
|
Net Sales Three Months
Ended Mar 31,
2023
|
|
$
414.4
|
|
$
469.5
|
|
$
203.2
|
|
$
137.0
|
|
$ 1,224.1
|
Impact from Foreign
Currency Exchange
Rates
|
|
7.4
|
|
7.6
|
|
2.6
|
|
4.2
|
|
21.8
|
Organic Sales Three
Months Ended Mar
31, 2023
|
|
$
421.8
|
|
$
477.1
|
|
$
205.8
|
|
$
141.2
|
|
$ 1,245.9
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Three Months
Ended Mar 31,
2022
|
|
$
416.3
|
|
$
567.2
|
|
$
184.3
|
|
$
130.7
|
|
$ 1,298.5
|
Adjusted Net Sales
Three Months Ended
Mar 31, 2022
|
|
$
416.3
|
|
$
567.2
|
|
$
184.3
|
|
$
130.7
|
|
$ 1,298.5
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Mar
31, 2023
Organic Sales Growth %
|
|
1.3 %
|
|
(15.9) %
|
|
11.7 %
|
|
8.0 %
|
|
(4.1) %
|
Three Months Ended Mar
31, 2023 Net
Sales Growth %
|
|
(0.5) %
|
|
(17.2) %
|
|
10.3 %
|
|
4.8 %
|
|
(5.7) %
|
|
|
|
|
|
|
|
|
|
|
|
2022 QUARTERLY
SEGMENT RECAST
|
|
Industrial
Powertrain Solutions
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Mar 31,
2022
|
|
Jun 30,
2022
|
|
Sep 30,
2022
|
|
Dec 31,
2022
|
|
Dec 31,
2022
|
Net Sales
|
|
$
416.3
|
|
$
422.1
|
|
$
415.6
|
|
$
412.3
|
|
$ 1,666.3
|
Adjusted Net
Sales
|
|
$
416.3
|
|
$
422.1
|
|
$
415.6
|
|
$
412.3
|
|
$ 1,666.3
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations
|
|
$
46.3
|
|
$
68.8
|
|
$
71.9
|
|
$
55.2
|
|
$
242.2
|
Restructuring and
Related Costs (b)
|
|
14.4
|
|
(4.6)
|
|
6.4
|
|
8.0
|
|
23.2
|
Transaction and Related
Costs (g)
|
|
2.0
|
|
0.9
|
|
—
|
|
9.4
|
|
13.3
|
Inventory Step
Up
|
|
1.8
|
|
4.7
|
|
(3.5)
|
|
—
|
|
3.0
|
Impairments and Exit
Related Costs
|
|
—
|
|
—
|
|
—
|
|
0.9
|
|
0.9
|
Gain on Sale of
Assets
|
|
—
|
|
(2.6)
|
|
—
|
|
—
|
|
(2.6)
|
Adjusted Income from
Operations
|
|
$
64.5
|
|
$
67.2
|
|
$
74.8
|
|
$
73.5
|
|
$
280.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
12.8
|
|
$
13.1
|
|
$
11.6
|
|
$
12.0
|
|
$
49.5
|
Amortization
|
|
29.8
|
|
31.0
|
|
30.0
|
|
28.7
|
|
119.5
|
Other Income,
Net
|
|
0.4
|
|
0.5
|
|
0.4
|
|
0.4
|
|
1.7
|
Share-Based
Compensation Expense
|
|
2.2
|
|
$
1.9
|
|
2.2
|
|
2.1
|
|
8.4
|
Adjusted
EBITDA
|
|
$
109.7
|
|
$
113.7
|
|
$
119.0
|
|
$
116.7
|
|
$
459.1
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
11.1 %
|
|
16.3 %
|
|
17.3 %
|
|
13.4 %
|
|
14.5 %
|
Adjusted Operating
Margin %
|
|
15.5 %
|
|
15.9 %
|
|
18.0 %
|
|
17.8 %
|
|
16.8 %
|
Adjusted EBITDA Margin
%
|
|
26.4 %
|
|
26.9 %
|
|
28.6 %
|
|
28.3 %
|
|
27.6 %
|
|
|
(g)
|
Primarily relates to
legal, professional service and financing costs (as applicable)
associated with the Altra Transaction, the merger with the
Rexnord
PMC business, the acquisition of the Arrowhead business and the
strategic review of the Industrial Systems operating
segment.
|
Power Efficiency
Solutions
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Mar 31,
2022
|
|
Jun 30,
2022
|
|
Sep 30,
2022
|
|
Dec 31,
2022
|
|
Dec 31,
2022
|
Net Sales
|
|
$
567.2
|
|
$
595.4
|
|
$
569.1
|
|
$
495.5
|
|
$ 2,227.2
|
Adjusted Net
Sales
|
|
$
567.2
|
|
$
595.4
|
|
$
569.1
|
|
$
495.5
|
|
$ 2,227.2
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations
|
|
$
104.4
|
|
$
86.0
|
|
$
70.9
|
|
$
65.6
|
|
$
326.9
|
Restructuring and
Related Costs (b)
|
|
1.0
|
|
0.3
|
|
8.8
|
|
9.5
|
|
19.6
|
Gain on Sale of
Assets
|
|
(0.7)
|
|
—
|
|
—
|
|
—
|
|
(0.7)
|
Adjusted Income from
Operations
|
|
$
104.7
|
|
$
86.3
|
|
$
79.7
|
|
$
75.1
|
|
$
345.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
9.9
|
|
$
9.7
|
|
$
9.5
|
|
$
9.4
|
|
$
38.5
|
Amortization
|
|
2.2
|
|
2.1
|
|
2.1
|
|
2.0
|
|
8.4
|
Other Income,
Net
|
|
0.6
|
|
0.6
|
|
0.6
|
|
0.6
|
|
2.4
|
Share-Based
Compensation Expense
|
|
2.4
|
|
1.5
|
|
2.4
|
|
2.1
|
|
8.4
|
Adjusted
EBITDA
|
|
$
119.8
|
|
$
100.2
|
|
$
94.3
|
|
$
89.2
|
|
$
403.5
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
18.4 %
|
|
14.4 %
|
|
12.5 %
|
|
13.2 %
|
|
14.7 %
|
Adjusted Operating
Margin %
|
|
18.5 %
|
|
14.5 %
|
|
14.0 %
|
|
15.2 %
|
|
15.5 %
|
Adjusted EBITDA Margin
%
|
|
21.1 %
|
|
16.8 %
|
|
16.6 %
|
|
18.0 %
|
|
18.1 %
|
|
Automation &
Motion Control
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Mar 31,
2022
|
|
Jun 30,
2022
|
|
Sep 30,
2022
|
|
Dec 31,
2022
|
|
Dec 31,
2022
|
Net Sales
|
|
$
184.3
|
|
$
194.1
|
|
$
192.6
|
|
$
201.3
|
|
$
772.3
|
Adjusted Net
Sales
|
|
$
184.3
|
|
$
194.1
|
|
$
192.6
|
|
$
201.3
|
|
$
772.3
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations
|
|
$
12.3
|
|
$
22.2
|
|
$
19.3
|
|
$
24.4
|
|
$
78.2
|
Restructuring and
Related Costs (b)
|
|
1.5
|
|
3.0
|
|
8.3
|
|
1.4
|
|
14.2
|
Transaction and Related
Costs (g)
|
|
1.0
|
|
0.4
|
|
—
|
|
4.3
|
|
5.7
|
Inventory Step
Up
|
|
1.2
|
|
1.3
|
|
—
|
|
—
|
|
2.5
|
Adjusted Income from
Operations
|
|
$
16.0
|
|
$
26.9
|
|
$
27.6
|
|
$
30.1
|
|
$
100.6
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
4.6
|
|
$
5.7
|
|
$
4.5
|
|
$
6.4
|
|
$
21.2
|
Amortization
|
|
15.1
|
|
13.2
|
|
13.3
|
|
15.2
|
|
56.8
|
Other Income,
Net
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.8
|
Share-Based
Compensation Expense
|
|
1.2
|
|
1.5
|
|
0.8
|
|
0.9
|
|
4.4
|
Adjusted
EBITDA
|
|
$
37.1
|
|
$
47.5
|
|
$
46.4
|
|
$
52.8
|
|
$
183.8
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
6.7 %
|
|
11.4 %
|
|
10.0 %
|
|
12.1 %
|
|
10.1 %
|
Adjusted Operating
Margin %
|
|
8.7 %
|
|
13.9 %
|
|
14.3 %
|
|
15.0 %
|
|
13.0 %
|
Adjusted EBITDA Margin
%
|
|
20.1 %
|
|
24.5 %
|
|
24.1 %
|
|
26.2 %
|
|
23.8 %
|
|
Industrial
Systems
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Mar 31,
2022
|
|
Jun 30,
2022
|
|
Sep 30,
2022
|
|
Dec 31,
2022
|
|
Dec 31,
2022
|
Net Sales
|
|
$
130.7
|
|
$
137.8
|
|
$
148.0
|
|
$
135.6
|
|
$
552.1
|
Adjusted Net
Sales
|
|
$
130.7
|
|
$
137.8
|
|
$
148.0
|
|
$
135.6
|
|
$
552.1
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from
Operations
|
|
$
6.9
|
|
$
17.9
|
|
$
11.8
|
|
$
6.5
|
|
$
43.1
|
Restructuring and
Related Costs (b)
|
|
0.1
|
|
0.2
|
|
2.2
|
|
1.1
|
|
1.6
|
Transaction and Related
Costs (g)
|
|
—
|
|
—
|
|
—
|
|
3.3
|
|
5.3
|
Adjusted Income from
Operations
|
|
$
7.0
|
|
$
18.1
|
|
$
14.0
|
|
$
10.9
|
|
$
50.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
3.3
|
|
$
3.4
|
|
$
2.9
|
|
$
3.1
|
|
$
12.7
|
Amortization
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.8
|
Other Income,
Net
|
|
0.1
|
|
0.2
|
|
0.1
|
|
0.1
|
|
0.5
|
Share-Based
Compensation Expense
|
|
0.5
|
|
—
|
|
0.4
|
|
0.4
|
|
1.3
|
Adjusted
EBITDA
|
|
$
11.1
|
|
$
21.9
|
|
$
17.6
|
|
$
14.7
|
|
$
65.3
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
%
|
|
5.3 %
|
|
13.0 %
|
|
8.0 %
|
|
4.8 %
|
|
7.8 %
|
Adjusted Operating
Margin %
|
|
5.4 %
|
|
13.1 %
|
|
9.5 %
|
|
8.0 %
|
|
9.1 %
|
Adjusted EBITDA Margin
%
|
|
8.5 %
|
|
15.9 %
|
|
11.9 %
|
|
10.8 %
|
|
11.8 %
|
View original
content:https://www.prnewswire.com/news-releases/regal-rexnord-corporation-reports-strong-first-quarter-2023-financial-results-301816721.html
SOURCE Regal Rexnord Corporation