Regal Rexnord Corporation (RRX) Earnings Call Transcript & Summary

Good morning, and welcome to the Regal Beloit 2020 Annual Shareholder Meeting Conference Call. [Operator Instructions] I would now like to turn the conference over to Louis Pinkham. Please go ahead.

Yes. Thank you, Anita. Welcome to Regal's 2020 Annual Meeting of Shareholders. This is Regal's 65th Annual Meeting. I am Louis Pinkham, CEO of Regal Beloit Corporation. Some points of order. Due to the COVID-19 pandemic and to support the health and safety of Regal's associates and shareholders, we are providing live webcast and audio access to this meeting. Please note that shareholders are not able to vote or revoke a proxy throughout the webcast or audio access nor participate actively. Shareholders were strongly encouraged to vote as instructed in the notice of annual meeting. Thank you for your support of Regal as we navigate this uncertain time. On the phone listening is Regal's Board of Directors, including our Chairman, Rakesh Sachdev. Due to the Board's remote attendance, I will Chair the meeting. I now call the meeting to order. Please let me briefly introduce some attendees. Attending via the webcast and live audio are: Jan Bertsch, who's been with the Board for 9 months; Steve Burt, who's been with the Board for 10 years; Anesa Chaibi, who's been with the Board for 5 years; Chris Doerr, who's been with the Board for 17 years; Dean Foate, who's been with the Board for 15 years; Mike Hilton, who's been with the Board for 6 months; Rakesh Sachdev, he's been with the Board for 13 years; and Curt Stoelting, who's been with the Board for 14 years. Also on the phone are Tom Fischer, who is retiring from the Board after 16 years of service; and Jane Warner, who's retiring from the Board after 6.5 years of service. Also attending via webcast are the following Regal officers: Rob Rehard, Vice President and Chief Financial Officer, who's been with Regal for 5 years; Cheryl Lewis, Vice President and Chief Human Resources Officer, who's been with Regal for 2 months; John Avampato, Vice President and Chief Information Officer; who's been with Regal for 14 years. And our segment presidents, Scott Brown; John Kunze; Eric Mcginnis and Jerry Morton, all became officers on February 1 of this year. Also on the phone -- on the call are our new Vice President of Business Development and Strategy, Justin Baier; our new Vice President, Investor Relations, Rob Barry is also on the line, making sure our webcast reaches all interested shareholders, and a representative from Regal's external auditor, Deloitte & Touche, P.J. DiStefano, is on the phone. Our auditor and our Chairman, Rakesh Sachdev, are also available to answer questions during the proceedings. Thank you to the Board and to the others I just mentioned for your service to and support of Regal. In particular, I want to take this moment to further acknowledge Tom Fischer and Jane Warner, who are not standing for election and will retire from the Board at the conclusion of this meeting. As I mentioned, Tom has served as a director to Regal for 16 years, contributing greatly to our Audit Committee and has had a lasting impact on our Board. Jane has been with the Board for 6.5 years and has still truly led our Governance Committee since 2016. Each of them has helped guide Regal through many transformative moments during which they provided important and invaluable perspective and leadership. Thank you, Tom and Jane, for your service to Regal. We wish you nothing but the best in your future endeavors. To all shareholders, proper notice of this meeting was provided on March 19, 2020. Tom Valentyn, Regal's Vice President, General Counsel and Secretary, will now conduct the official portion of this meeting. Tom?

Thank you, Louis. Good morning, everyone. My name is Tom Valentyn. I'm the company's General Counsel and Secretary. Welcome to Regal's 2020 Annual Meeting of Shareholders. I'd like to first introduce Patrick Cannon was appointed as the inspector of elections for this meeting. Also, please note that the rules for the conduct of the meeting are available at the registration table located in the reception area. Turning to the next slide. On March 19, 2020, we mailed a notice of Internet availability of our proxy statement, 2019 annual report to shareholders and formal proxy card to holders of our common stock as of March 5, 2020, which was the record date for this meeting. Copies of these documents are available for review by shareholders at the registration table. Mr. Cannon provided a tabulation of the number of shares represented in person or by proxy at this meeting. Based on that tabulation, as you can see from the slide materials, I'm confirming that a quorum of shares entitled to vote is present. Legal notice of the meeting has been given and there is a quorum of our common stock present. This meeting is, therefore, lawfully convened and ready to transact business. Moving to the next slide. In accordance with the notice of meeting, this annual meeting is being held for the following purposes: to elect Jan A. Bertsch; Stephen M. Burt; Anesa T. Chaibi; Christopher L. Doerr; Dean A. Foate; Michael F. Hilton; Michael S. Hilton; Louis V. Pinkham; Rakesh Sachdev; and Curtis W. Stoelting as directors of the company for terms expiring at the 2021 annual meeting of shareholders. Number 2, to consider a shareholder advisory vote on the compensation of the company's named executive officers as disclosed in the company's 2020 proxy statement. And third, to ratify the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the year ending January 2, 2021. Is there a motion to act on the proposals set forth in the meeting notes?

I move for approval for these proposals.

Is there a second?

I second the motion.

Thank you. If you've already submitted your proxy or transmitted your voting instructions by phone or Internet, your shares will be voted as you indicated. If you have not voted and wish to do so in person or if you wish to change your vote or revoke your proxy inversion, then please proceed to the registration table and complete a shareholder ballot, sign it and hand it to the inspector of elections. Is there any shareholder here who wishes to vote or to change his or her vote? Seeing none, the voting on these proposals is now closed. Turning to the next slide. From the tabulation provided this morning by the inspector of elections, I'm able to confirm that a large majority of shareholders and an overwhelming percentage of the shares represented at this meeting have voted in favor of all 3 proposals. Specifically, each of the directors nominated for election have been elected as directors of the company for terms expiring at the 2021 annual meeting of shareholders. The shareholders approved by advisory vote, the compensation of the company's named executive officers as disclosed in the company's 2020 proxy statement and the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the year ending January 2, 2021, has been ratified. Since there is no further business to be conducted, let me now close the formal portion of this meeting by entertaining a motion to adjourn.

I move to a joint meeting.

Is there a second?

I second the motion.

All in favor, please signify by saying aye.

Aye.

Aye.

Aye.

Aye.

Oppose? The motion has carried. Formal portion of this meeting is now adjourned. And now I turn things back to Louis Pinkham, our Chief Executive Officer, for some final words.

As many of you may have concluded last month at our Investor Day, Regal has embarked on the next stage of its journey. We believe our strategy will drive profitable growth and increase shareholder value. You can expect Regal to continue to live by our core values and drive the business focused on technology differentiation, improving sustainability through our products and services and operating with a world-class business system led by top talent. Despite the immediate challenges of the coronavirus pandemic, I am truly excited about our future. On behalf of the Regal team worldwide, I want to thank our stakeholders, including our shareholders, our customers and our associates for their commitment to and confidence in Regal. Thank you all for attending or listening in. I look forward to providing a review of our first quarter results next week during our scheduled earnings call. Please stay safe and healthy. And thank you all. Operator, that concludes the meeting.

Thank you. This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.