regal-beloit corp (RBC) Key Developments
Regal Beloit Corporation Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended January 3, 2015; Provides Earnings Guidance for the Year of 2015; Reports Impairment Charges for the Fourth Quarter Ended January 3, 2015
Feb 17 15
Regal Beloit Corporation announced unaudited consolidated financial results for the fourth quarter and year ended January 3, 2015. For the quarter, the company reported net sales of $775.6 million against $727.3 million a year ago. Loss from operations was $110.6 million against $27.8 million a year ago. Loss before taxes was $116.7 million against $36.5 million a year ago. Net loss attributable to the company was $116.5 million or $2.61 per basic and diluted share against $33.2 million or $0.74 per basic and diluted share a year ago. Net cash provided by operating activities was $71.1 million against $66.5 million a year ago. Additions to property, plant, and equipment were $23.1 million against $17.3 million a year ago. Adjusted loss from operations was $60.2 million against $57.5 million a year ago. Adjusted diluted earnings per share were $0.82 against $0.97 a year ago. Effective tax rate in the fourth quarter was a 0.8% tax benefit. Net debt was $300 million.
For the year, the company reported net sales of $3,257.1 million against $3,095.7 million a year ago. Profit from operations was $121.5 million against $208 million a year ago. Income before taxes was $90.3 million against $170.5 million a year ago. Net income attributable to the company was $31 million or $0.69 per basic and diluted share against $120 million or $2.64 per diluted share a year ago. Net cash provided by operating activities was $298.2 million against $305 million a year ago. Additions to property, plant, and equipment were $83.6 million against $82.7 million a year ago. Adjusted loss from operations was $307.3 million against $296.8 million a year ago. Adjusted diluted earnings per share were $4.31 against $4.36 a year ago.
The company expects 2015 adjusted diluted earnings per share to be in the range of $5.45 to $5.85, which includes accretion from the PTS acquisition. 2015 GAAP earnings per share expected to be in the range of $4.91 to $5.31. The company expecting an effective tax rate to be 26% in 2015. This includes the tax synergies from the PTS acquisition. Capital expenditures are estimated to be $105 million in 2015. Guidance for 2015 adjusted EPS is an increase of approximately 25% to 35% over 2014 results.
Noncash goodwill and long-lived asset impairment charge of $146 million or a $2.50 earnings per share loss. The impairment was the result of the annual impairment analysis conducted during the fourth quarter of 2014. The impairment was primarily related to businesses with exposure to either oil and gas, Venezuela or commodities.
Regal Beloit Corporation Enters into Credit Agreement with JPMorgan Chase Bank, N.A. and Terminates the Credit Agreement Dated June 30, 2011
Feb 4 15
On January 30, 2015, Regal Beloit Corporation entered into a Credit Agreement among the company, certain of its subsidiaries, JPMorgan Chase Bank, N.A., as Administrative Agent and the lenders named therein, providing for a 5-year unsecured term loan facility for the company in the principal amount of $1.25 billion and a 5-year unsecured multicurrency revolving facility for the company and, if so designated by the company, certain of its subsidiaries, in the principal amount of $500.0 million. The Credit Agreement replaces the company's existing credit agreement dated as of June 30, 2011. The loans under the Term Facility require quarterly amortization at a rate starting at 5.0% per annum, increasing to 7.5% per annum after two years and further increasing to 10.0% per annum for the last two years of the facility. The Credit Agreement requires the company to reduce Term Facility unused commitments and prepay the loans under the Term Facility with 100% of the net cash proceeds received from specified asset sales and in currencies of borrowed money indebtedness, subject to certain exceptions. On January 30, 2015, in connection with entering into the new credit facility, Entry into a Material Definitive Agreement, the company terminated the Credit Agreement dated June 30, 2011, by and among the company, various subsidiaries thereof, various financial institutions, Bank of America, N.A., as Syndication Agent, and Wells Fargo Bank, N.A., U.S. Bank National Association and Fifth Third Bank, as Co-Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arrangers and Joint book Managers. The Credit Agreement was to mature on June 30, 2016.
Regal Beloit Corporation Appoints Robert Rehard as Vice President and Corporate Controller
Jan 29 15
On January 26, 2015, Regal Beloit Corporation appointed Robert Rehard to serve as the company's Vice President and Corporate Controller. Mr. Rehard will serve as the company's principal accounting officer. Prior to joining the company, Mr. Rehard served as Director of Finance for the Cooper Lighting business of Cooper Industries plc from 2007 until Eaton Corporation's acquisition of Cooper Industries plc in 2012.
Regal Beloit Declares Quarterly Dividend, Payable on April 17
Jan 26 15
Regal Beloit announced that it will pay a quarterly dividend on its common stock of $0.22 per share on April 17 to shareholders of record on April 2. The electric motor manufacturer has maintained its dividend rate from the previous quarter.
Regal Beloit Corporation, Board Meeting, Jan 23, 2015
Jan 26 15
Regal Beloit Corporation, Board Meeting, Jan 23, 2015. Agenda: To declare regular quarterly dividend.