Regal Rexnord Corporation (RRX) Earnings Call Transcript & Summary

Welcome to Regal's 2021 Annual Meeting of Shareholders. This is Regal's 66th Annual Meeting. I'm Louis Pinkham, CEO of Regal Beloit Corporation. Some points of order. Due to continuing caution related 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 through 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 at Regal as we navigate this uncertain time. On the phone listening is Regal's Board of Directors, including our non-Executive 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. Regal's Board of Directors are attending the meeting via the webcast and live audio. On the phone are Jan Bertsch, who's been on the Board for 1 year; Steve Burt, who's been on the Board 11 years. Anesa Chaibi, 6 years; Chris Doerr, 18 years; Dean Foate, 16 years; Mike Hilton, 1 year; Rakesh Sachdev, 14 years; and Curt Stoelting, 15 years. Our Vice President and Chief Financial Officer, Rob Rehard; our Vice President, Chief Human Resources Officer; Cheryl Lewis; and our Vice President, Chief Information Officer, John Avampato, are attending the meeting in person. Also attending via webcast are the following Regal officers, our segment presidents, Scott Brown, John Kunze, Eric Mcginnis; and Jerry Morton, all who became officers in 2020. Our 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, Sean Conroy, is attending the meeting in person. Thank you to the Board, to the others I just mentioned and to all Regal associates for your service to and support of Regal. To all the shareholders, proper notice of this meeting was provided on March 18, 2021. Tom Valentyn, Regal's Vice President, General Counsel and Secretary, will now conduct the official portion of the meeting. Tom?

Thank you, Louis. Good morning, everyone. As Louis said, my name is Tom Valentyn. I'm the company's General Counsel and Secretary. Welcome to Regal's 2021 Annual Meeting of Shareholders. I want to first introduce Patrick Cannon, who was appointed as the inspector of elections for this meeting. Patrick. Also, please note that rules for the conduct of the meeting are available at the registration table located in the reception area. On March 18, 2021, we mailed Notice of Internet Availability of our Proxy Statement, 2020 annual report to shareholders and form of proxy card to the holders of our common stock as of March 5, 2021, 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 behind me, I confirm 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. 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, Louis V. Pinkham, Rakesh Sachdev and Curtis W. Stoelting as directors of the company for terms expiring at the 2022 annual meeting of shareholders; also, to consider a shareholder advisory vote on the compensation of the company's named executive officers as disclosed in the company's 2021 proxy statement; and thirdly, to ratify the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the year ending January 1, 2022. Is there a motion to act on the proposal set forth in the meeting notice?

I move for approval of the proposal.

Thank you. Is there a second?

I second the motion.

Thank you. If you 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 in person, then please proceed to the registration table and complete a shareholder ballot, sign it and hand it to the inspector of election. Is there any shareholder here who wishes to vote or change his or her vote? Seeing none, the voting on these proposals is now closed. From the tabulation provided this morning by the inspector of elections, I'm able to confirm that a large majority of shareholders, an overwhelming percentage of the shares represented at this meeting in person or by proxy, 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 2022 annual meeting of shareholders. The shareholders also approved by advisory vote the compensation of the company's named executive officers as disclosed in the company's 2021 proxy statement. Finally, the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the year ending January 1, 2022, 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 adjourn the meeting.

Thank you. Is there a second?

I second the motion.

All the favor, please signify by saying aye.

Aye.

Opposed? The motion is carried. The formal portion of the meeting is now adjourned. And now I ask you to please welcome Louis, our Chief -- our CEO, back on the podium.

Great. Thanks, Tom. While 2020 was a uniquely challenging year, we are proud of our associate's efforts to drive profitable growth and increase shareholder value. Consistent with our commitment to driving increased shareholder value, we were pleased to announce yesterday that our Board of Directors declared a dividend of $0.33 per share, which represents an increase of 10% from last quarter. You can expect Regal to continue to live by our core values and drive a business focused on technology differentiation, improving sustainability through our products and operating with a world-class business system led by top talent. With the transformative merger with Rexnord Corporation's Process and Motion Controls business on the horizon, 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. Thank you.

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