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RegalRexnord NEWS RELEASE Regal Rexnord Corporation Reports Record Third Quarter 2021 Financial Results , Announces Strategic Acquisition Of Arrowhead Systems For $ 297 Million 11/2/2021 BELOIT , Wis . , Nov. 2 , 2021 / PRNewswire / -- Regal Rexnord Corporation ( NYSE : RRX ) Third Quarter Highlights • Sales Up 18 % Versus PY And Up 16 % On An Organic Basis • Record Adjusted Operating Margin * of 14.2 % Up 140 bps Versus PY And GAAP Operating Margin of 12.0 % Up 10 bps Versus PY Record Adjusted Diluted EPS ** Of $ 2.36 Up 36 % Versus PY And GAAP Diluted EPS Of $ 1.70 Up 6 % Versus PY • Daily Orders Up 27 % In 3Q And Up Low 20's In October Versus PY . Net Cash Provided By Operating Activities of $ 121.5M And Free Cash Flow * Of $ 108.3M For Conversion Of 133.4 % • Increased Stock Purchase Authorization To $ 500M From $ 250M • Redefining Adjusted EPS To Add Back Amortization And Stock - Based Compensation Expense , After - Tax , Beginning 4Q 2021 Expect 4Q 2021 Adjusted Diluted EPS In A Range of $ 1.97 to $ 2.27 • Expect 2022 Adjusted Diluted EPS In A Range of $ 9.95 to $ 10.35 , Including Arrowhead Systems • For Reference , The Outlook For 4Q 2021 Is Consistent With Prior Guidance For Legacy Regal And For Rexnord PMC After Giving Effect To Completing The Merger With PMC On October 4 , 2021 And Redefining The Calculation Of Adjusted EPS M & A Update • Completed Transformational Merger With Rexnord PMC , Significantly Enhancing The Company's Growth , Margin & Free Cash Flow Prospects • Announcing Acquisition Of Arrowhead Systems ( " Arrowhead " ) , A Global Leader In Providing Industrial Process Automation Solutions , For $ 297 Million . The Deal Is Expected To Be Immediately Accretive On An Adjusted EPS Basis * * Non - GAAP Financial Measurement , See Appendix for Reconciliation ** As defined at the time of the Company's 2Q 2021 earnings report CEO Louis Pinkham commented , " Our performance in Q3 was exceptionally strong , including mid - teens organic top line growth plus records on operating margin and earnings - for the third quarter in a row on both metrics . The team's performance is even more noteworthy given it is occurring in the face of unprecedented headwinds from inflation , component shortages and global supply chain disruptions . Helping to drive our success is continued execution of our multi - year restructuring program , strict pricing discipline and leveraging 80/20 principles throughout the Company to ensure that we're directing our resources to the highest value opportunities . " Mr. Pinkham went on to comment , " I am also extremely pleased with our progress driving highly accretive inorganic growth . At the start of the fourth quarter , we closed on the merger with Rexnord's PMC business , transforming our business in many ways , including our name - now Regal Rexnord Corporation . I am confident the combination will deliver best - in - class cost synergies and help Regal Rexnord accelerate profitable , above market growth , as we harness the power of delivering integrated industrial powertrain solutions . " " I am also very excited about Arrowhead , which positions us in an end market with accelerated growth compared to our 1