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REGAL FOR RELEASE ON : May 3 , 2021 CONTACT : Robert Barry , VP - Investor Relations 608-361-7530 robert.barry@regalbeloit.com Regal Beloit Corporation Announces Record First Quarter 2021 Financial Results NEWS RELEASE • Sales Growth Accelerates , Up 10.9 % Versus PY and Up 9.1 % on an Organic Basis • Record Adjusted Operating Margin of 13.9 % Up 310 bps versus PY ( GAAP Operating Margin 11.9 % ) • Record Adjusted Diluted EPS of $ 1.98 Up Over 50 % versus PY ( GAAP Diluted EPS of $ 1.60 ) • Raised Quarterly Dividend in April by 10 % to $ 0.33 • Daily Orders Up 17 % in 1Q and Up Almost 90 % in April versus PY • Net Debt to Adjusted EBITDA of 0.9x Announced Transformational Merger with Rexnord's PMC Business ; On Track to Close in 4Q 2021 BELOIT , WI - Regal Beloit Corporation ( NYSE : RBC ) , a global leader in the engineering and manufacturing of power transmission solutions and high - efficiency electric motors and systems , reported first quarter 2021 diluted earnings per share of $ 1.60 compared to $ 1.12 a year ago , up 43 % . First quarter 2021 adjusted diluted earnings per share was a record $ 1.98 compared to $ 1.31 a year ago , up 51 % . Key financial results for the first quarter 2021 included : • • Total net sales of $ 814.1 million increased 10.9 % from the prior year . Excluding the positive impacts of 1.8 % from foreign currency , sales increased 9.1 % on an organic basis . Income from operations was $ 97.1 million or 11.9 % of net sales , up 240 bps versus prior year . Adjusted income from operations rose $ 33.9 million or 42.8 % from a year ago , to $ 113.1 million . Adjusted operating margin of 13.9 % - a record quarterly result for Regal - was up 310 basis points versus the prior year's 10.8 % . Net cash provided by operating activities was $ 49.5 million and capital expenditures totaled $ 10.7 million , resulting in free cash flow of $ 38.8 million , which is 59.1 % of adjusted net income . First quarter 2021 segment results versus the prior year first quarter : Commercial Systems segment net sales were $ 237.0 million , an increase of 18.9 % . Foreign currency had a positive 2.9 % impact . The result was a positive organic sales growth rate of 15.9 % , driven by strong growth in China and Asia Pacific , gains in the global commercial HVAC business , and continued solid growth in the pool pump market . Operating margin was 11.6 % . After net adjustments of $ 0.2 million , adjusted operating margin was 11.7 % of adjusted net sales . Industrial Systems segment net sales were $ 136.4 million , an increase of 5.2 % . Foreign currency had a positive 3.7 % impact . The result was a positive organic sales growth rate of 1.5 % , driven by strength in China , strong demand in India and continued healthy growth in the data center market . Somewhat offsetting these tailwinds were persistent , albeit diminishing , pressures on later cycle N.A. general industrial end * This earnings release includes non - GAAP financial measures . Descriptions of why we believe these non - GAAP measures are useful and reconciliations of these non - GAAP financial measures to the most directly comparable GAAP measures are included with this earnings release .