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REGAL NEWS RELEASE Regal Beloit Corporation Announces Record Second Quarter 2021 Financial Results 7/28/2021 BELOIT , Wis . , July 28 , 2021 / PRNewswire / -- Regal Beloit Corporation ( NYSE : RBC ) Second Quarter Highlights • Sales Growth Accelerates , Up 40 % Versus PY and Up 37 % on an Organic Basis • Record Adjusted Operating Margin * of 14.0 % Up 460 bps versus PY ( GAAP Operating Margin 12.3 % ) • Achieving " 300 - in - 3 " 1 Margin Expansion Target Well Ahead of Schedule • Record Adjusted Diluted EPS * of $ 2.28 Up 140 % versus PY ( GAAP Diluted EPS of $ 1.94 ) ⚫ Daily Orders Up 57 % in 2Q and Tracking up Mid - 20's in July versus PY • Net Debt to Adjusted EBITDA of 0.7x , with Free Cash Flow of $ 73.5M for Conversion of 90.3 % • Expect 2021 Adjusted Diluted EPS * Range of $ 8.70 to $ 9.00 ( GAAP Diluted EPS Range of $ 7.29 to $ 7.59 ) Update on Rexnord PMC Merger • Closing is On Track for the Second Half of 2021 • All Required Regulatory Approvals Received • Special Meeting of Shareholders Scheduled for September 1 , 2021 • Raising Expected 2022 Pro Forma Adjusted EBITDA to Greater Than $ 1.0 Billion and Reiterating Adjusted EBITDA Margin of -21 % CEO Louis Pinkham commented , " Regal's performance in Q2 was very strong - setting a record for operating margin two quarters in a row and exceeding our expectations - with organic sales growth YOY approaching 40 % and up low - single digits compared to 2019. This drove adjusted operating margin expansion of nearly 500 basis points versus prior year to a record 14.0 % , resulting in adjusted earnings per share growth of 140 % YOY and up 53 % to 2019. " " The guidance we're providing for 2021 reflects strong top line growth due to market strength as well as share gains , along with continued margin improvement from our multi - year transformation activities . Our targeted mid - point for adjusted 2021 EPS of $ 8.85 represents 53 % growth versus 2020 and 61 % versus 2019. In addition , the combination of our 2Q results plus our performance expectations for the second half of this year equate to delivering on our " 300 - in - 3 " margin expansion plan well ahead of our three year target . Clearly , the structural changes we've implemented over the last couple years have dramatically transformed Regal . " " As I look ahead , I am highly enthusiastic about our upcoming merger with Rexnord PMC , which is on track to close in the second half of 2021 , having now received all required regulatory approvals . At this time , we are awaiting the private letter ruling from the IRS and our shareholder vote scheduled for September 1st . With three months of additional integration planning under our belt , I am even more confident that the combination will deliver tremendous value to all of our stakeholders , driven by best - in - class cost synergies and substantial cross - marketing opportunities . We will leverage Regal's and Rexnord's unparalleled capabilities across the Industrial Powertrain , and continue to deliver the most energy- efficient solutions for our customers . " Mr. Pinkham went on to comment , " Based on strengthening performance at Regal and at Rexnord PMC , and factoring our previously disclosed merger synergy expectations , we now expect the pro forma business to generate more than $ 1 Billion of adjusted EBITDA in 2022 , ahead of our initial expectations . " 1 Regal's 300 - in - 3 margin expansion goal , set at the Company's March 2020 Investor Day , called for 300 bps of adjusted operating margin expansion in three years compared to the 2019 annual result of 10.7 % . * 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 . 2021 Guidance The Company is providing guidance for 2021 , including sales growth rates in the high - teens , GAAP diluted EPS in a range of $ 7.29 to $ 7.59 , and adjusted diluted EPS in a range of $ 8.70 to $ 9.00 . The mid - point of the adjusted diluted EPS