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» REGAL-BELOIT's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Regal Beloit Management Presents at 2011 Investors and Analysts Conference - Event Transcript
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» Regal Beloit's CEO Discusses Q2 2011 Results - Earnings Call Transcript
On slide 2, we mentioned that we are presenting certain non-GAAP financial measures related to the adjusted diluted earnings per share, adjusted gross profit, adjusted gross profit as a percentage of net sales and free cash flow. We believe that these measures are useful financial measures for providing you with additional insight into our operating performance. Please read this slide for information regarding these non-GAAP financial measures and please see the appendix where you can find reconciliation of these measures to the most comparable measures in accordance with GAAP.Now I’ll turn the call over to Mark. Mark J. Gliebe Thank you John and welcome everyone. Thank you for joining the call and for your interest in Regal Beloit. I will follow our normal agenda here. I’ll make a few opening comments; Chuck Hinrichs will give a financial update; Jon Schlemmer will add color on products, markets and operations. At the end, I’ll summarize and then I’ll also add a few comments on the recent change to our corporate brand and then we’ll move on to our Q&A. Overall, we felt good about our performance in the first quarter. The bottom line as that our businesses preformed pretty much as we would expected, plus we have the added benefit of a gain on the property sale, as well as a one time benefit from a tax provision. In terms of our operating performance during the quarter, we achieved record first quarter revenues and record first quarter net income. Our North America C&I, mechanical and our global Unico businesses grew, I mean quarter offsetting headwinds in our HVAC and China businesses. Outside of our operating performance, recent highlights included first this past Monday, the company declare a 5.6% dividend increase representing our seventh increase in the last eight years. Second was the acquisition of Milwaukee Gear.
Third, we began to move into our new hermetic motor facility in China. Fourth also in China we began construction of our new generator facility, Jon will cover both of those areas here in a few minutes. Fifth, we continue to smooth integration of EPC and we are on track to achieve our performance targets and finally consistent with our customer care and simplification initiatives. We launched a new corporate visual identity that we’ll discuss at the end of this call.With that, I will turn it over to Chuck Hinrichs. Chuck A. Hinrichs Thank you Mark and good morning everyone. My first slide summarizes some of the highlights of our first quarter 2012 results. Net sales increased 21.9% over the prior year reflecting the inclusion of sales from the acquired businesses, including seven weeks of sales from our most recent acquisition, Milwaukee Gear. Sales in the quarter reflected continued growth in our North American commercial and industrial motor and mechanical businesses and Unico. This growth helps to offset weak sales in our HVAC, China and European businesses. As we said on our previous calls, the EPC business is being integrated with our other businesses. We are not providing standalone results, but the EPC results continue to be excellent, reflecting good seasonal sales growth and operating profit in the first quarter. Our first quarter results benefitted from two non-operating items. First, we sold a parcel of land at a facility closed several years ago. The sale resulted in a gain of $1.3 million or $0.02 per share, which reduced our SG&A expenses in the quarter. Secondly, our income tax expense in the quarter benefited from a $1.4 million tax decrease at a non-U.S. entity. This represented a $0.04 per share benefit in the quarter. In summary, our first quarter 2012 earnings per share of a $1.16 included the benefit of these two non-operating items, which totaled $0.06 a share. Excluding these non-operating items, our earnings per share would have been $1.10 inline with our earlier guidance for the quarter. Read the rest of this transcript for free on seekingalpha.com