Regal Rexnord Files Q2 2024 10-Q

TL;DR

**Regal Rexnord's Q2 2024 10-Q is in. Check financials.**

AI Summary

Regal Rexnord Corporation filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and disclosures are provided, reflecting the company's ongoing business activities and strategic positioning.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Regal Rexnord, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks beyond those typical for publicly traded companies.

Key Players & Entities

• REGAL REXNORD CORP (company) — Filer
• REGAL BELOIT CORP (company) — Former company name
• BELOIT TOOL CORP (company) — Former company name
• RECORD A PUNCH CORP (company) — Former company name
• 20240630 (date) — Period of report
• 20240801 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ding 66,541,115 shares of common stock, $0.01 par value per share. REGAL REXNORD CO

Filing Documents

• rbc-20240630.htm (10-Q) — 1938KB
• exhibit2206302410q.htm (EX-22) — 15KB
• rrx-2024630xex311.htm (EX-31.1) — 11KB
• rrx-2024630xex312.htm (EX-31.2) — 11KB
• rrx-2024630xex321.htm (EX-32.1) — 5KB
• 0000082811-24-000163.txt ( ) — 11053KB
• rbc-20240630.xsd (EX-101.SCH) — 53KB
• rbc-20240630_cal.xml (EX-101.CAL) — 116KB
• rbc-20240630_def.xml (EX-101.DEF) — 320KB
• rbc-20240630_lab.xml (EX-101.LAB) — 758KB
• rbc-20240630_pre.xml (EX-101.PRE) — 564KB
• rbc-20240630_htm.xml (XML) — 2235KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— Condensed Consolidated Financial Statements (Unaudited)

Item 1 — Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Income 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Equity 8 Condensed Consolidated Statements of Cash Flows 9 Notes to Condensed Consolidated Financial Statements 11 1. Basis of Presentation 11 2. Other Financial Information 12 3. Acquisitions and Divestitures 13 4. Accumulated Other Comprehensive Income (Loss) 19 5. Goodwill and Intangible Assets 20 6. Segment Information 21 7. Debt and Bank Credit Facilities 25 8. Retirement Plans 27 9. Shareholders' Equity 27 10. Income Taxes 28 11. Earnings Per Share 28 12. Contingencies 28 13. Derivative Financial Instruments 30 14. Fair Value 35 15. Restructuring Activities 36

— Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations 37

— Quantitative and Qualitative Disclosures about Market Risk

Item 3 — Quantitative and Qualitative Disclosures about Market Risk 46

— Controls and Procedures

Item 4 — Controls and Procedures 48

— OTHER INFORMATION

PART II — OTHER INFORMATION

— Legal Proceedings

Item 1 — Legal Proceedings 48

— Risk Factors

Item 1A — Risk Factors 48

— Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds 49

— Other Information

Item 5 — Other Information 49

— Exhibits

Item 6 — Exhibits 50

Signatures

Signatures 51 2 CAUTIONARY STATEMENT All statements in this report, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "would," "project," "forecast," "could," "should," and similar expressions including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this report include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses, the acquisition of Altra Industrial Motion Corp. (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 Industrial Motion Corp. ("Altra") and the Rexnord PMC business; the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company'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 effe

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in Millions, Except Per Share Data) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net Sales $ 1,547.6 $ 1,768.6 $ 3,095.3 $ 2,992.7 Cost of Sales 976.6 1,204.8 1,971.2 2,030.8 Gross Profit 571.0 563.8 1,124.1 961.9 Operating Expenses 394.3 412.2 792.0 741.4 (Gain) Loss on Sale of Businesses ( 17.2 ) — 4.3 — Total Operating Expenses 377.1 412.2 796.3 741.4 Income from Operations 193.9 151.6 327.8 220.5 Interest Expense 101.7 116.4 207.1 211.8 Interest Income ( 5.0 ) ( 5.1 ) ( 8.1 ) ( 37.0 ) Other Expense (Income), Net 0.3 ( 2.8 ) 0.6 ( 4.2 ) Income before Taxes 96.9 43.1 128.2 49.9 Provision for Income Taxes 33.9 9.9 44.8 22.2 Net Income 63.0 33.2 83.4 27.7 Less: Net Income Attributable to Noncontrolling Interests 0.5 1.1 1.1 1.5 Net Income Attributable to Regal Rexnord Corporation $ 62.5 $ 32.1 $ 82.3 $ 26.2 Earnings Per Share Attributable to Regal Rexnord Corporation: Basic $ 0.94 $ 0.48 $ 1.24 $ 0.40 Assuming Dilution $ 0.94 $ 0.48 $ 1.23 $ 0.39 Weighted Average Number of Shares Outstanding: Basic 66.5 66.3 66.5 66.2 Assuming Dilution 66.8 66.6 66.8 66.6 See Accompanying Notes to Condensed Consolidated Financial Statements 5 REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Dollars in Millions) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net Income $ 63.0 $ 33.2 $ 83.4 $ 27.7 Other Comprehensive Income (Loss) Net of Tax: Foreign Currency Translation Adjustments ( 56.0 ) ( 30.5 ) ( 143.5 ) 4.0 Reclassification of Foreign Currency Translation Losses to Earnings (see Note 3 - Acquisitions and Divestitures) 121.3 — 121.3 — Hedging Activities: (Decrease) Increase in Fair Value of Hedging Activities, Net of Tax Effects of $( 1.8 ) million and $

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View this 10-Q filing on SEC EDGAR