Wisconsin
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1-7283
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39-0875718
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(a)
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Not Applicable
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(b)
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Not Applicable
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(c)
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Not Applicable
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(d)
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Exhibits. The following exhibit is being furnished herewith:
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99.1
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News Release of Regal Beloit Corporation, dated October 29, 2012.
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Exhibit Number
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Exhibit Description
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99.1
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News Release of Regal Beloit Corporation, dated October 29, 2012.
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·
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Record Third Quarter Sales and Earnings
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·
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Another Quarter of Strong Free Cash Flow
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ADJUSTED DILUTED EARNINGS PER SHARE
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Three Months Ended
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Nine Months Ended
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||||||||||||||
September 29,
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October 1,
|
September 29,
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October 1,
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|||||||||||||
2012
|
2011
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2012
|
2011
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|||||||||||||
GAAP Diluted Earnings Per Share
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$ | 1.29 | $ | 1.13 | $ | 3.94 | $ | 3.00 | ||||||||
EPC Acquisition Costs and Purchase Accounting Costs
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- | 0.28 | - | 0.46 | ||||||||||||
2Q 2011 Warranty Expense Item
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- | - | - | 0.44 | ||||||||||||
Restructuring Costs
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0.08 | - | 0.09 | - | ||||||||||||
Gain on Disposal of Real Estate
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- | - | (0.02 | ) | - | |||||||||||
Gain on Divestiture
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- | (0.10 | ) | - | (0.10 | ) | ||||||||||
Prior Year Tax Benefit
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(0.05 | ) | - | (0.05 | ) | - | ||||||||||
Adjusted Diluted Earnings Per Share
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$ | 1.32 | $ | 1.31 | $ | 3.96 | $ | 3.80 |
NET SALES
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(In millions)
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|||||||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||||||
September 29,
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October 1,
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%
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September 29,
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October 1,
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%
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|||||||||||||||
2012
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2011
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Change
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2012
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2011
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Change
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|||||||||||||||
Net Sales
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$ | 779.5 | $ | 736.9 | 5.8 | % | $ | 2,451.3 | $ | 2,081.3 | 17.8 | % | ||||||||
Net Sales by Segment:
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||||||||||||||||||||
Electrical segment
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708.3 | 667.5 | 6.1 | % | 2,223.3 | 1,873.0 | 18.7 | % | ||||||||||||
Mechanical segment
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71.2 | 69.4 | 2.6 | % | 228.0 | 208.3 | 9.5 | % |
GROSS PROFIT
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(In millions)
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|||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Gross Profit
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$ | 192.6 | $ | 179.6 | $ | 610.3 | $ | 495.1 | ||||||||
As a percentage of net sales
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24.7 | % | 24.4 | % | 24.9 | % | 23.8 | % | ||||||||
Gross Profit
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||||||||||||||||
Electrical segment
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$ | 173.2 | $ | 160.0 | $ | 549.3 | $ | 436.0 | ||||||||
As a percentage of net sales
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24.5 | % | 24.0 | % | 24.7 | % | 23.3 | % | ||||||||
Mechanical segment
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$ | 19.4 | 19.6 | $ | 61.0 | $ | 59.1 | |||||||||
As a percentage of net sales
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27.2 | % | 28.2 | % | 26.8 | % | 28.4 | % |
OPERATING EXPENSES
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(In millions)
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|||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
|
2011
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2012
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2011
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|||||||||||||
Operating Expenses
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$ | 109.3 | $ | 101.5 | $ | 344.6 | $ | 298.0 | ||||||||
As a percentage of net sales
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14.0 | % | 13.8 | % | 14.1 | % | 14.3 | % | ||||||||
Operating Expenses by Segment:
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||||||||||||||||
Electrical segment
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$ | 99.9 | $ | 90.7 | $ | 315.2 | $ | 266.1 | ||||||||
As a percentage of net sales
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14.1 | % | 13.6 | % | 14.2 | % | 14.2 | % | ||||||||
Mechanical segment
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$ | 9.4 | $ | 10.8 | $ | 29.4 | $ | 31.9 | ||||||||
As a percentage of net sales
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13.2 | % | 15.6 | % | 12.9 | % | 15.3 | % |
INCOME FROM OPERATIONS
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(In millions)
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|||||||||||||||
Three Months Ended
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Nine Months Ended
|
|||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Income from Operations
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$ | 83.3 | $ | 78.1 | $ | 265.7 | $ | 197.1 | ||||||||
As a percentage of net sales
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10.7 | % | 10.6 | % | 10.8 | % | 9.5 | % | ||||||||
Income from Operations by Segment:
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||||||||||||||||
Electrical segment
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$ | 73.2 | $ | 69.3 | $ | 234.1 | $ | 169.8 | ||||||||
As a percentage of net sales
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10.3 | % | 10.4 | % | 10.5 | % | 9.1 | % | ||||||||
Mechanical segment
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$ | 10.1 | $ | 8.8 | $ | 31.6 | $ | 27.3 | ||||||||
As a percentage of net sales
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14.2 | % | 12.7 | % | 13.9 | % | 13.1 | % |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
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||||||||||||||||
Unaudited
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||||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
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2011
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2012
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2011
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Net Sales
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$ | 779.5 | $ | 736.9 | $ | 2,451.3 | $ | 2,081.3 | ||||||||
Cost of Sales
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586.9 | 557.3 | 1,841.0 | 1,586.2 | ||||||||||||
Gross Profit
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192.6 | 179.6 | 610.3 | 495.1 | ||||||||||||
Operating Expenses
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109.3 | 101.5 | 344.6 | 298.0 | ||||||||||||
Income From Operations
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83.3 | 78.1 | 265.7 | 197.1 | ||||||||||||
Interest Expense
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10.6 | 10.5 | 33.6 | 20.4 | ||||||||||||
Interest Income
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0.4 | 0.5 | 1.2 | 1.2 | ||||||||||||
Income Before Taxes & Noncontrolling Interests
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73.1 | 68.1 | 233.3 | 177.9 | ||||||||||||
Provision For Income Taxes
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17.9 | 20.6 | 63.9 | 53.6 | ||||||||||||
Net Income
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55.2 | 47.5 | 169.4 | 124.3 | ||||||||||||
Less: Net Income Attributable to Noncontrolling
Interests, net of tax
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0.9 | 1.8 | 3.7 | 5.5 | ||||||||||||
Net Income Attributable to Regal Beloit Corporation
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$ | 54.3 | $ | 45.7 | $ | 165.7 | $ | 118.8 | ||||||||
Earnings Per Share Attributable to Regal Beloit Corporation:
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Basic
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$ | 1.30 | $ | 1.14 | $ | 3.98 | $ | 3.04 | ||||||||
Assuming Dilution
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$ | 1.29 | $ | 1.13 | $ | 3.94 | $ | 3.00 | ||||||||
Cash Dividends Declared
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$ | 0.19 | $ | 0.18 | $ | 0.56 | $ | 0.53 | ||||||||
Weighted Average Number of Shares Outstanding (in millions):
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Basic
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41.7 | 39.9 | 41.7 | 39.1 | ||||||||||||
Assuming Dilution
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42.0 | 40.4 | 42.0 | 39.6 |
SEGMENT INFORMATION
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||||||||||||||||
Unaudited
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||||||||||||||||
(Dollars in Millions)
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||||||||||||||||
Electrical Segment
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Mechanical Segment
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Three Months Ended
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||||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
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2011
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2012
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2011
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Net Sales
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$ | 708.3 | $ | 667.5 | $ | 71.2 | $ | 69.4 | ||||||||
Income from Operations
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73.2 | 69.3 | 10.1 | 8.8 | ||||||||||||
Electrical Segment
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Mechanical Segment
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Nine Months Ended
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||||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net Sales
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$ | 2,223.3 | $ | 1,873.0 | $ | 228.0 | $ | 208.3 | ||||||||
Income from Operations
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234.1 | 169.8 | 31.6 | 27.3 |
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
Unaudited
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||||||||
(Dollars in Millions)
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||||||||
September 29,
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December 31,
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|||||||
2012
|
2011
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|||||||
ASSETS
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Current Assets:
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||||||||
Cash and Cash Equivalents
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$ | 185.8 | $ | 142.6 | ||||
Trade Receivables, less Allowances
of $12.0 million in 2012 and $13.6 million in 2011
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466.5 | 424.2 | ||||||
Inventories
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594.9 | 575.8 | ||||||
Prepaid Expenses and Other Current Assets
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108.5 | 99.9 | ||||||
Deferred Income Tax Benefits
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42.9 | 48.6 | ||||||
Total Current Assets
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1,398.6 | 1,291.1 | ||||||
Property, Plant, Equipment and Noncurrent Assets
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2,025.1 | 1,975.4 | ||||||
Total Assets
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$ | 3,423.7 | $ | 3,266.5 | ||||
LIABILITIES AND EQUITY
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Current Liabilities:
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Accounts Payable
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$ | 292.7 | $ | 249.4 | ||||
Other Accrued Expenses
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226.4 | 265.1 | ||||||
Current Maturities of Debt
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83.8 | 10.0 | ||||||
Total Current Liabilities
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602.9 | 524.5 | ||||||
Long-Term Debt
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781.7 | 909.2 | ||||||
Other Noncurrent Liabilities
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262.2 | 256.4 | ||||||
Equity:
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||||||||
Total Regal Beloit Corporation Shareholders' Equity
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1,735.1 | 1,535.9 | ||||||
Noncontrolling Interests
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41.8 | 40.5 | ||||||
Total Equity
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1,776.9 | 1,576.4 | ||||||
Total Liabilities and Equity
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$ | 3,423.7 | $ | 3,266.5 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
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|||||||||||||||
Unaudited
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|||||||||||||||
(Dollars in Millions)
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|||||||||||||||
Three Months Ended
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Nine Months Ended
|
||||||||||||||
September 29,
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October 1,
|
September 29,
|
October 1,
|
||||||||||||
2012
|
2011
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2012
|
2011
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||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 55.2 | $ | 47.5 | $ | 169.4 | $ | 124.3 | |||||||
Adjustments to reconcile net income and changes in assets and liabilities (net of acquisitions) to net cash provided by operating activities:
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Depreciation and amortization
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31.9 | 26.1 | 95.0 | 69.7 | |||||||||||
Excess tax benefits from share-based compensation
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(0.8 | ) | - | (1.7 | ) | (1.0 | ) | ||||||||
(Gain) loss on disposition of property, net
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(0.3 | ) | (6.1 | ) | (1.7 | ) | (5.6 | ) | |||||||
Share-based compensation expense
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2.2 | 3.9 | 6.7 | 10.1 | |||||||||||
Change in assets and liabilities
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(16.4 | ) | (4.7 | ) | 8.5 | (21.3 | ) | ||||||||
Net cash provided by operating activities
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71.8 | 66.7 | 276.2 | 176.2 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Additions to property, plant, and equipment
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(21.3 | ) | (5.9 | ) | (66.1 | ) | (44.3 | ) | |||||||
Purchase of investment securities
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(4.7 | ) | - | (4.7 | ) | - | |||||||||
Sales of investment securities
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1.5 | - | 1.5 | 56.0 | |||||||||||
Business acquisitions, net of cash acquired
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(7.7 | ) | (742.8 | ) | (103.0 | ) | (764.8 | ) | |||||||
Grants received for capital expenditures
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4.7 | - | 7.1 | - | |||||||||||
Proceeds from sale of assets
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- | 14.9 | 2.7 | 15.0 | |||||||||||
Net cash used in investing activities
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(27.5 | ) | (733.8 | ) | (162.5 | ) | (738.1 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
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Borrowings under revolving credit facility
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50.0 | 200.0 | 281.0 | 200.0 | |||||||||||
Repayments under revolving credit facility
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(23.0 | ) | (172.0 | ) | (263.0 | ) | (172.0 | ) | |||||||
Proceeds from short-term borrowings
|
35.6 | 0.9 | 36.4 | 21.5 | |||||||||||
Repayments of short-term borrowings
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(32.9 | ) | (1.9 | ) | (32.9 | ) | (17.3 | ) | |||||||
Proceeds from long-term borrowings
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- | 500.0 | - | 500.0 | |||||||||||
Payments of long-term debt
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(75.1 | ) | - | (75.2 | ) | (0.1 | ) | ||||||||
Dividends paid to shareholders
|
(7.9 | ) | (6.9 | ) | (22.9 | ) | (20.1 | ) | |||||||
Proceeds from the exercise of stock options
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1.4 | 0.1 | 3.5 | 1.9 | |||||||||||
Excess tax benefits from share-based compensation
|
0.8 | - | 1.7 | 1.0 | |||||||||||
Financing fee paid
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- | (0.9 | ) | - | (2.8 | ) | |||||||||
Net cash provided by (used in) financing activities
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(51.1 | ) | 519.3 | (71.4 | ) | 512.1 | |||||||||
EFFECT OF EXCHANGE RATES ON CASH
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1.7 | (3.1 | ) | 0.9 | (0.3 | ) | |||||||||
Net (decrease) increase in cash and cash equivalents
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(5.1 | ) | (150.9 | ) | 43.2 | (50.1 | ) | ||||||||
Cash and cash equivalents at beginning of period
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190.9 | 275.3 | 142.6 | 174.5 | |||||||||||
Cash and cash equivalents at end of period
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$ | 185.8 | $ | 124.4 | $ | 185.8 | $ | 124.4 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||
Sep. 29,
|
Oct. 1,
|
Sep. 29,
|
Oct. 1,
|
|||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
GAAP Diluted Earnings Per Share
|
$ | 1.29 | $ | 1.13 | $ | 3.94 | $ | 3.00 | ||||
EPC Acquisition Costs and Purchase Accounting Costs
|
- | 0.28 | - | 0.46 | ||||||||
2Q 2011 Warranty Expense Item
|
- | - | - | 0.44 | ||||||||
Restructuring Costs
|
0.08 | - | 0.09 | - | ||||||||
Gain on Disposal of Real Estate
|
- | - | (0.02 | ) | - | |||||||
Gain on Divestiture
|
- | (0.10 | ) | - | (0.10 | ) | ||||||
Prior Year Tax Benefit
|
(0.05 | ) | - | (0.05 | ) | - | ||||||
Adjusted Diluted Earnings Per Share
|
$ | 1.32 | $ | 1.31 | $ | 3.96 | $ | 3.80 | ||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
Sep. 29,
|
Oct. 1,
|
Sep. 29,
|
Oct. 1,
|
|||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
GAAP Gross Profit
|
$ | 192.6 | $ | 179.6 | $ | 610.3 | $ | 495.1 | ||||
EPC Purchase Accounting Costs
|
- | 10.3 | - | 10.3 | ||||||||
Restructuring Costs
|
2.8 | - | 3.3 | - | ||||||||
2Q 2011 Warranty Expense Item
|
- | - | - | 28.0 | ||||||||
Adjusted Gross Profit
|
$ | 195.4 | $ | 189.9 | $ | 613.6 | $ | 533.4 | ||||
Adjusted Gross Profit as a Percentage of Net Sales
|
25.1 | % | 25.8 | % | 25.0 | % | 25.6 | % | ||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
Sep. 29,
|
Oct. 1,
|
Sep. 29,
|
Oct. 1,
|
|||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
GAAP Income from Operations
|
$ | 83.3 | $ | 78.1 | $ | 265.7 | $ | 197.1 | ||||
EPC Acquisition Costs and Purchase Accounting Costs
|
- | 16.1 | - | 25.7 | ||||||||
2Q 2011 Warranty Expense Item
|
- | - | - | 28.0 | ||||||||
Restructuring Costs
|
5.2 | - | 5.7 | - | ||||||||
Gain on Disposal of Real Estate
|
- | - | (1.3 | ) | - | |||||||
Gain on Divestiture
|
- | (6.5 | ) | - | (6.5 | ) | ||||||
Adjusted Income from Operations
|
$ | 88.5 | $ | 87.7 | $ | 270.1 | $ | 244.3 | ||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
Sep. 29,
|
Oct. 1,
|
Sep. 29,
|
Oct. 1,
|
|||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
GAAP Net Cash Provided by Operating Activities
|
$ | 71.8 | $ | 66.7 | $ | 276.2 | $ | 176.2 | ||||
Additions to Property Plant and Equipment
|
(21.3 | ) | (5.9 | ) | (66.1 | ) | (44.3 | ) | ||||
Grants Received for Capital Expenditures
|
4.7 | - | 7.1 | - | ||||||||
Free Cash Flow
|
$ | 55.2 | $ | 60.8 | $ | 217.2 | $ | 131.9 | ||||
Free Cash Flow as a Percentage of Net Income
Attributable to Regal Beloit
|
101.7 | % | 133.0 | % | 131.1 | % | 111.0 | % |