- Reported sales of $597 million increased 12%; organic sales
were flat
- Reported operating margin of 18.7%, down 10 bps; adjusted
operating margin of 18.8%, down 70 bps
- Reported EPS of $2.44, up 8%; adjusted EPS of $2.46, up
5%
- Amended and extended existing credit facility, effective
July 12, 2024
- Maintaining full-year 2024 outlook
Note changes in performance are relative to second quarter
2023
Watts Water Technologies, Inc. (NYSE: WTS) – through its
subsidiaries, one of the world’s leading manufacturers and
providers of plumbing, heating and water quality products and
solutions – today announced results for the second quarter of
2024.
Chief Executive Officer Robert J. Pagano Jr. commented, “We
delivered another quarter that surpassed our expectations with
record sales, operating income and EPS. We are pleased with the
growth and execution in our Americas and APMEA regions, which more
than offset market weakness in Europe. Our success is a direct
result of our team’s unwavering commitment to serving our customers
worldwide.”
Mr. Pagano continued, “We are confident that our business model,
which is largely driven by repair and replacement activity, and our
proven ability to take proactive and decisive actions will continue
to enable us to successfully navigate softening economic
conditions. Our balance sheet is strong and well-positioned to
support incremental strategic investments into the business, return
of capital to shareholders and the execution of our long-term
strategy. In addition, we extended our credit facility through July
2029, which further enhances our financial strength and
flexibility.”
A summary of second quarter financial results is as follows:
Second Quarter Ended
June 30,
June 25,
(In millions, except per share
information)
2024
2023
% Change
Sales
$
597.3
$
532.8
12
%
Organic sales growth % (1)
flat
Operating income - as reported
111.5
100.4
11
%
Operating margin %
18.7
%
18.8
%
(10)
bps
Adjusted operating income (1)
112.1
103.9
8
%
Adjusted operating margin % (1)
18.8
%
19.5
%
(70)
bps
Earnings per share - as reported
$
2.44
$
2.26
8
%
Special items (1)
0.02
0.08
Adjusted earnings per share (1)
$
2.46
$
2.34
5
%
_____________________ (1)
Organic sales growth, adjusted operating income, adjusted
operating margin, special items and adjusted earnings per share
represent non-GAAP financial measures. For a reconciliation of GAAP
to non-GAAP items please see the tables attached to this press
release.
Second Quarter Financial Highlights Second quarter
2024 performance relative to second quarter 2023
Sales of $597 million increased 12% on a reported basis, which
included sales from acquisitions, and were flat organically.
Organic sales growth within the Americas and APMEA was offset by
volume weakness in Europe. Sales from acquisitions totaled $65
million and were reported within the Americas. Unfavorable foreign
exchange movements decreased sales by approximately $2 million.
Operating margin decreased 10 basis points on a reported basis
and 70 basis points on an adjusted basis. Adjusted operating margin
decreased primarily due to the dilutive impact of acquisitions,
volume deleverage in Europe, inflation and incremental investments
which more than offset favorable price and productivity. Reported
operating margin was favorably impacted by a reduction in
restructuring charges and a non-recurring gain on the sale of a
building, partially offset by incremental acquisition-related
charges.
Regional Performance
Americas Sales of $448 million increased 22% on a
reported basis and 5% on an organic basis due to price realization
and growth in core valve products and our heating and hot water
products, which was partly attributed to project timing. The
acquisitions of Bradley and Josam contributed $65 million in sales,
or 17% to reported growth.
Operating margin decreased 70 basis points on a reported basis
and 60 basis points on an adjusted basis as benefits from price
realization, volume and productivity were more than offset by
inflation, incremental investments and the dilutive impact of the
Bradley acquisition. Reported operating margin was unfavorably
impacted by acquisition-related charges which more than offset a
non-recurring gain on the sale of a building.
Europe Sales of $114 million decreased 16% on a reported
basis and 15% on an organic basis. Unfavorable foreign exchange
movements decreased reported sales by 1%. Lower volumes in fluid
solutions products, particularly in the OEM channel that was
impacted by reduced government energy incentives in Germany and
Italy and the related heat pump destocking, more than offset price
realization.
Operating margin decreased 580 basis points on a reported basis
and 620 basis points on an adjusted basis as inflation and the
significant impact of volume deleverage more than offset benefits
from price realization, product mix and productivity. Reported
operating margin was favorably impacted by the reduction in
restructuring charges.
APMEA Sales of $35 million increased 16% on a reported
basis and 18% on an organic basis. Unfavorable foreign exchange
movements decreased reported sales by 2%. Sales increased due to
growth in all major countries in the segment, which was partly due
to project timing.
Operating margin increased 1,010 basis points on a reported
basis and 70 basis points on an adjusted basis as benefits from
volume leverage and productivity more than offset inflation,
incremental investments and the dilutive impact of the Enware
acquisition. Reported operating margin was favorably impacted by
the reduction in restructuring and acquisition charges.
Cash Flow and Capital Allocation
For the first six months of 2024, operating cash flow was $131
million and net capital expenditures were $11 million, resulting in
free cash flow of $120 million. In the comparable period last year,
operating cash flow was $101 million and net capital expenditures
were $12 million, resulting in free cash flow of $89 million.
Operating and free cash flow increased due to higher net income and
lower working capital investment. Sequential improvement in
operating and free cash flow is expected throughout 2024 due to
normal seasonality.
Effective July 12, 2024, the Company amended and extended its
revolving credit facility through July 12, 2029. The extended
facility maintains the prior interest rate spread and financial
covenants of the prior credit facility and amends the accordion
option to $400 million.
The Company repurchased approximately 20,000 shares of Class A
common stock at a cost of $4.1 million during the second quarter of
2024. For the first six months of 2024, the Company repurchased
approximately 40,000 shares at a cost of $8.1 million.
Approximately $4 million remains available for stock repurchases
under the stock repurchase program authorized in 2019 and $150
million under the stock repurchase program authorized in 2023.
There is no expiration date for these programs.
Full Year 2024 Outlook
The Company is maintaining its previous full year outlook. We
expect reported sales to increase +7% to +12% and organic sales to
range from -4% to +1%. Full year adjusted operating margin is
expected to be between 17.1% and 17.7%, or down 70 basis points to
10 basis points. Further 2024 planning assumptions are included in
the second-quarter earnings materials posted at
www.wattswater.com
For a reconciliation of GAAP to non-GAAP items and a statement
regarding the usefulness of these measures to investors and
management in evaluating our operating performance, please see the
tables attached to this press release.
Watts Water Technologies, Inc. will hold a live webcast of its
conference call to discuss second quarter 2024 results on Thursday,
August 8, 2024, at 9:00 a.m. EDT. This press release and the live
webcast can be accessed by visiting the Investor Relations section
of the Company's website at www.wattswater.com. Following the
webcast, the call recording will be available at the same address
until August 7, 2025.
Watts Water Technologies, Inc., through its subsidiaries, is a
world leader in the manufacture of innovative products to control
the efficiency, safety, and quality of water within residential,
commercial, and institutional applications. Watts’ expertise in a
wide variety of water technologies enables us to be a comprehensive
supplier to the water industry.
This press release includes “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995,
including statements relating to expected full year 2024 financial
results, including organic sales growth and adjusted operating
margin, our strategy, investments, the benefits from recent
acquisitions, improvements in operating and free cash flow
throughout 2024, our ability to manage challenging macro-economic
and softer market conditions and return of capital to shareholders.
These forward-looking statements reflect our current views about
future events. You should not rely on forward-looking statements
because our actual results may differ materially from those
predicted as a result of a number of potential risks and
uncertainties. These potential risks and uncertainties include, but
are not limited to: the effectiveness, timing and expected savings
associated with our cost-cutting actions, restructuring and
initiatives; integration of acquired businesses in a timely and
cost-effective manner, retention of supplier and customer
relationships and key employees, and the ability to achieve
synergies and cost savings in the amounts and within the time
frames currently anticipated; current economic and financial
conditions, which can affect the housing and construction markets
where our products are sold, manufactured and marketed; shortages
in and pricing of raw materials and supplies; our ability to
compete effectively; changes in variable interest rates on our
borrowings; inflation; failure to expand our markets through
acquisitions; failure to successfully develop and introduce new
product offerings or enhancements to existing products; failure to
manufacture products that meet required performance and safety
standards; foreign exchange rate fluctuations; cyclicality of
industries where we market our products, such as plumbing and
heating wholesalers and home improvement retailers; environmental
compliance costs; product liability risks and costs; changes in the
status of current litigation; the war in Ukraine and other global
crises; supply chain and logistical disruptions or labor shortages
and workforce disruptions that could negatively affect our supply
chain, manufacturing, distribution, or other business processes;
and other risks and uncertainties discussed under the heading “Item
1A. Risk Factors” and in Note 16 of the Notes to the Consolidated
Financial Statements in our Annual Report on Form 10-K for the year
ended December 31, 2023, filed with the Securities and Exchange
Commission (“SEC”), as well as risk factors disclosed in our
subsequent filings with the SEC. We undertake no duty to update the
information contained in this press release, except as required by
law.
WATTS WATER TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in millions, except
per share information)
(Unaudited)
Second Quarter Ended
Six Months Ended
June 30,
June 25,
June 30,
June 25,
2024
2023
2024
2023
Net sales
$
597.3
$
532.8
$
1,168.2
$
1,004.5
Cost of goods sold
312.5
280.0
615.9
533.6
GROSS PROFIT
284.8
252.8
552.3
470.9
Selling, general and administrative
expenses
173.1
150.8
342.6
284.5
Restructuring
0.2
1.6
1.5
1.3
OPERATING INCOME
111.5
100.4
208.2
185.1
Other (income) expense:
Interest income
(1.9
)
(1.3
)
(4.0
)
(1.7
)
Interest expense
4.1
1.7
8.3
3.2
Other income, net
(0.2
)
(0.6
)
(0.8
)
(0.5
)
Total other expense (income)
2.0
(0.2
)
3.5
1.0
INCOME BEFORE INCOME TAXES
109.5
100.6
204.7
184.1
Provision for income taxes
27.5
24.7
50.2
43.5
NET INCOME
$
82.0
$
75.9
$
154.5
$
140.6
BASIC EPS
NET INCOME PER SHARE
$
2.44
$
2.27
$
4.61
$
4.21
Weighted average number of shares
33.5
33.5
33.5
33.4
DILUTED EPS
NET INCOME PER SHARE
$
2.44
$
2.26
$
4.61
$
4.19
Weighted average number of shares
33.5
33.6
33.5
33.5
Dividends declared per share
$
0.43
$
0.36
$
0.79
$
0.66
WATTS WATER TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Amounts in millions, except
share information)
(Unaudited)
June 30,
December 31,
2024
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
279.4
$
350.1
Trade accounts receivable, less reserve
allowances of $13.4 million at June 30, 2024 and $11.9 million at
December 31, 2023
310.6
259.8
Inventories, net:
Raw materials
155.6
150.6
Work in process
21.1
20.2
Finished goods
249.7
228.5
Total Inventories
426.4
399.3
Prepaid expenses and other current
assets
44.6
51.8
Total Current Assets
1,061.0
1,061.0
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost
683.6
677.2
Accumulated depreciation
(429.4
)
(429.0
)
Property, plant and equipment, net
254.2
248.2
OTHER ASSETS:
Goodwill
719.6
693.0
Intangible assets, net
245.7
216.1
Deferred income taxes
28.0
23.6
Other, net
74.8
67.5
TOTAL ASSETS
$
2,383.3
$
2,309.4
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
163.2
$
131.8
Accrued expenses and other liabilities
198.0
190.3
Accrued compensation and benefits
63.4
83.7
Total Current Liabilities
424.6
405.8
LONG-TERM DEBT
258.7
298.3
DEFERRED INCOME TAXES
12.8
13.5
OTHER NONCURRENT LIABILITIES
69.0
78.5
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.10 par value;
5,000,000 shares authorized; no shares issued or outstanding
—
—
Class A common stock, $0.10 par value;
120,000,000 shares authorized; 1 vote per share; issued and
outstanding: 27,404,090 shares at June 30, 2024 and 27,352,701
shares at December 31, 2023
2.7
2.7
Class B common stock, $0.10 par value;
25,000,000 shares authorized; 10 votes per share; issued and
outstanding: 5,953,290 shares at June 30, 2024 and 5,958,290 shares
at December 31, 2023
0.6
0.6
Additional paid-in capital
686.6
674.3
Retained earnings
1,086.0
979.1
Accumulated other comprehensive loss
(157.7
)
(143.4
)
Total Stockholders' Equity
1,618.2
1,513.3
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
2,383.3
$
2,309.4
WATTS WATER TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Amounts in millions)
(Unaudited)
Six Months Ended
June 30,
June 25,
2024
2023
OPERATING ACTIVITIES
Net income
$
154.5
$
140.6
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
16.9
14.3
Amortization of intangibles
9.8
6.0
(Gain) on sale of assets, loss on disposal
and impairment of long-lived asset
(4.1
)
0.2
Stock-based compensation
10.0
9.5
Deferred income tax
(5.2
)
(10.1
)
Changes in operating assets and
liabilities, net of effects from business acquisitions:
Accounts receivable
(50.0
)
(29.2
)
Inventories
(16.8
)
(35.0
)
Prepaid expenses and other assets
(0.8
)
(8.9
)
Accounts payable, accrued expenses and
other liabilities
16.6
13.1
Net cash provided by operating
activities
130.9
100.5
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(16.9
)
(11.6
)
Proceeds from the sale of property, plant
and equipment
5.7
—
Business acquisitions, net of cash
acquired and other
(96.3
)
(11.7
)
Net cash used in investing activities
(107.5
)
(23.3
)
FINANCING ACTIVITIES
Proceeds from long-term borrowings
—
30.0
Payments of long-term debt
(40.0
)
(80.0
)
Payments for tax withholdings on vested
stock awards
(12.8
)
(15.6
)
Payments for finance leases and other
(1.3
)
(1.4
)
Proceeds from share transactions under
employee stock plans
—
0.1
Payments to repurchase common stock
(8.1
)
(7.7
)
Dividends
(26.7
)
(22.3
)
Net cash used in financing activities
(88.9
)
(96.9
)
Effect of exchange rate changes on cash
and cash equivalents
(5.2
)
0.8
DECREASE IN CASH AND CASH EQUIVALENTS
(70.7
)
(18.9
)
Cash and cash equivalents at beginning of
year
350.1
310.8
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
279.4
$
291.9
WATTS WATER TECHNOLOGIES, INC.
AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions)
(Unaudited)
Net Sales
Second Quarter Ended
Six Months Ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Americas
$
448.1
$
366.9
$
866.9
$
690.1
Europe
114.1
135.6
237.4
263.9
APMEA
35.1
30.3
63.9
50.5
Total
$
597.3
$
532.8
$
1,168.2
$
1,004.5
Operating Income
Second Quarter Ended
Six Months Ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Americas
$
108.4
$
91.6
$
193.8
$
164.1
Europe
11.3
21.5
31.8
40.7
APMEA
6.5
2.5
11.5
6.5
Corporate
(14.7)
(15.2)
(28.9)
(26.2)
Total
$
111.5
$
100.4
$
208.2
$
185.1
Intersegment Sales
Second Quarter Ended
Six Months Ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Americas
$
2.2
$
2.0
$
4.8
$
4.0
Europe
6.4
8.3
12.1
13.9
APMEA
25.1
28.5
46.4
50.6
Total
$
33.7
$
38.8
$
63.3
$
68.5
Key Performance Indicators and Non-GAAP
Measures
In this press release, we refer to non-GAAP financial measures
(including adjusted operating income, adjusted operating margins,
adjusted net income, adjusted earnings per share, organic sales,
free cash flow, cash conversion rate of free cash flow to net
income and net debt to capitalization ratio) and provide a
reconciliation of those non-GAAP financial measures to the
corresponding financial measures contained in our consolidated
financial statements prepared in accordance with GAAP. We believe
that these financial measures enhance the overall understanding of
our historical financial performance and give insight into our
future prospects. Adjusted operating income, adjusted operating
margins, adjusted net income and adjusted earnings per share
eliminate certain expenses incurred and benefits recognized in the
periods presented that relate primarily to our global restructuring
programs, acquisition-related costs, gain on sale of asset and the
related income tax impacts on these items. Management then utilizes
these adjusted financial measures to assess the run rate of the
Company’s operations against those of comparable periods. Organic
sales growth is a non-GAAP measure of sales growth excluding the
impacts of foreign exchange, acquisitions and divestitures from
period-over-period comparisons. Management believes reporting
organic sales growth provides useful information to investors,
potential investors and others, and allows for a more complete
understanding of underlying sales trends by providing sales growth
on a consistent basis. Free cash flow, cash conversion rate of free
cash flow to net income, and the net debt to capitalization ratio,
which are adjusted to exclude certain cash inflows and outlays, and
include only certain balance sheet accounts from the comparable
GAAP measures, are an indication of our performance in cash flow
generation and also provide an indication of the Company's relative
balance sheet leverage to other industrial manufacturing companies.
These non-GAAP financial measures are among the primary indicators
management uses as a basis for evaluating our cash flow generation
and our capitalization structure. In addition, free cash flow is
used as a criterion to measure and pay certain compensation-based
incentives. For these reasons, management believes these non-GAAP
financial measures can be useful to investors, potential investors
and others. The Company’s non-GAAP financial measures may not be
comparable to similarly titled measures reported by other
companies. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for
financial measures prepared in accordance with GAAP.
TABLE 1
RECONCILIATION OF GAAP "AS
REPORTED" TO "AS ADJUSTED" NON-GAAP
EXCLUDING THE EFFECT OF
ADJUSTMENTS FOR SPECIAL ITEMS
(Amounts in millions, except
per share information)
(Unaudited)
CONSOLIDATED RESULTS
Second Quarter Ended
Six Months Ended
June 30,
June 25,
June 30,
June 25,
2024
2023
2024
2023
Net sales
$
597.3
$
532.8
$
1,168.2
$
1,004.5
Operating income - as reported
$
111.5
$
100.4
$
208.2
$
185.1
Operating margin %
18.7
%
18.8
%
17.8
%
18.4
%
Adjustments for special items:
Restructuring
$
0.2
$
1.6
$
1.4
$
1.3
Acquisition-related costs
3.7
1.9
10.7
1.9
Gain on sale of assets
(3.3)
—
(4.4)
—
Total adjustments for special
items
$
0.6
$
3.5
$
7.7
$
3.2
Operating income - as adjusted
$
112.1
$
103.9
$
215.9
$
188.3
Adjusted operating margin %
18.8
%
19.5
%
18.5
%
18.7
%
Net income - as reported
$
82.0
$
75.9
$
154.5
$
140.6
Adjustments for special items - tax
effected:
Restructuring
$
0.1
$
1.2
$
1.1
$
1.0
Acquisition-related costs
2.8
1.3
8.0
1.3
Gain on sale of assets
(2.5)
—
(3.3)
—
Total adjustments for special items -
tax effected
$
0.4
$
2.5
$
5.8
$
2.3
Net income - as adjusted
$
82.4
$
78.4
$
160.3
$
142.9
Diluted earnings per share - as
reported
$
2.44
$
2.26
$
4.61
$
4.19
Restructuring
—
0.04
0.03
0.03
Acquisition-related costs
0.08
0.04
0.24
0.04
Gain on sale of assets
(0.06)
—
(0.10)
—
Diluted earnings per share - as
adjusted
$
2.46
$
2.34
$
4.78
$
4.26
TABLE 2
SEGMENT INFORMATION -
RECONCILIATION OF GAAP "AS REPORTED" TO "AS ADJUSTED"
NON-GAAP
EXCLUDING THE EFFECT OF
ADJUSTMENTS FOR SPECIAL ITEMS
(Amounts in millions)
(Unaudited)
Second Quarter Ended
Second Quarter Ended
June 30, 2024
June 25, 2023
Americas
Europe
APMEA
Corporate
Total
Americas
Europe
APMEA
Corporate
Total
Net sales
$
448.1
114.1
35.1
—
597.3
$
366.9
135.6
30.3
—
532.8
Operating income (loss) - as
reported
$
108.4
11.3
6.5
(14.7)
111.5
$
91.6
21.5
2.5
(15.2)
100.4
Operating margin %
24.2
%
10.0
%
18.5
%
18.7
%
24.9
%
15.8
%
8.4
%
18.8
%
Adjustments for special items
$
0.4
0.1
0.1
—
0.6
$
—
0.5
3.0
—
3.5
Operating income (loss) - as
adjusted
$
108.8
11.4
6.6
(14.7)
112.1
$
91.6
22.0
5.5
(15.2)
103.9
Adjusted operating margin %
24.3
%
10.0
%
18.9
%
18.8
%
24.9
%
16.2
%
18.2
%
19.5
%
Six Months Ended
Six Months Ended
June 30, 2024
June 25, 2023
Americas
Europe
APMEA
Corporate
Total
Americas
Europe
APMEA
Corporate
Total
Net sales
$
866.9
237.4
63.9
—
1,168.2
$
690.1
263.9
50.5
—
1,004.5
Operating income (loss) - as
reported
$
193.8
31.8
11.5
(28.9)
208.2
$
164.1
40.7
6.5
(26.2)
185.1
Operating margin %
22.4
%
13.4
%
17.9
%
17.8
%
23.8
%
15.4
%
12.9
%
18.4
%
Adjustments for special items
$
7.7
(1.0)
0.4
0.6
7.7
$
0.1
0.1
3.0
—
3.2
Operating income (loss) - as
adjusted
$
201.5
30.8
11.9
(28.3)
215.9
$
164.2
40.8
9.5
(26.2)
188.3
Adjusted operating margin %
23.2
%
13.0
%
18.6
%
18.5
%
23.8
%
15.5
%
18.8
%
18.7
%
TABLE 3
SEGMENT INFORMATION -
RECONCILIATION OF REPORTED NET SALES TO NON-GAAP ORGANIC
SALES
(Amounts in millions)
(Unaudited)
Second Quarter Ended
Americas
Europe
APMEA
Total
Reported net sales June 30, 2024
$
448.1
$
114.1
$
35.1
$
597.3
Reported net sales June 25, 2023
366.9
135.6
30.3
532.8
Dollar change
$
81.2
$
(21.5)
$
4.8
$
64.5
Net sales % increase (decrease)
22.1
%
(15.9)
%
15.8
%
12.1
%
Increase due to foreign exchange
0.1
%
0.9
%
2.6
%
0.5
%
Increase due to acquisition
(17.6)
%
—
%
—
%
(12.2)
%
Organic sales increase
(decrease)
4.6
%
(15.0)
%
18.4
%
0.4
%
Six Months Ended
Americas
Europe
APMEA
Total
Reported net sales June 30, 2024
$
866.9
$
237.4
$
63.9
$
1,168.2
Reported net sales June 25, 2023
690.1
263.9
50.5
1,004.5
Dollar change
$
176.8
$
(26.5)
$
13.4
$
163.7
Net sales % increase (decrease)
25.6
%
(10.0)
%
26.5
%
16.3
%
Increase (decrease) due to foreign
exchange
0.1
%
(0.2)
%
3.2
%
0.2
%
Increase due to acquisition
(18.1)
%
—
%
(16.0)
%
(13.2)
%
Organic sales increase
(decrease)
7.6
%
(10.2)
%
13.7
%
3.3
%
TABLE 4
RECONCILIATION OF NET CASH
PROVIDED BY OPERATIONS TO FREE CASH FLOW
(Amounts in millions)
(Unaudited)
Six Months Ended
June 30,
June 25,
2024
2023
Net cash provided by operations - as
reported
$
130.9
$
100.5
Less: additions to property, plant, and
equipment
(16.9)
(11.6)
Plus: proceeds from the sale of property,
plant, and equipment
5.7
—
Free cash flow
$
119.7
$
88.9
Net income - as reported
$
154.5
$
140.6
Cash conversion rate of free cash flow to
net income
77.5
%
63.2
%
TABLE 5
RECONCILIATION OF LONG-TERM
DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO
CAPITALIZATION RATIO
(Amounts in millions)
(Unaudited)
June 30,
December 31,
2024
2023
Current portion of long-term debt
$
—
$
—
Plus: Long-term debt, net of current
portion
258.7
298.3
Less: Cash and cash equivalents
(279.4)
(350.1)
Net debt
$
(20.7)
$
(51.8)
Net debt
$
(20.7)
$
(51.8)
Plus: Total stockholders' equity
1,618.2
1,513.3
Capitalization
$
1,597.5
$
1,461.5
Net debt to capitalization ratio
(1.3)
%
(3.5)
%
TABLE 6
2024 FULL YEAR OUTLOOK –
RECONCILIATION OF REPORTED NET SALES GROWTH TO ORGANIC SALES GROWTH
AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN
(Unaudited)
Total Watts
Full Year
2024 Outlook
Approximately
Net Sales
Reported net sales growth
7% to 12%
Forecasted impact of acquisition / FX
(11)%
Organic sales growth
(4)% to 1%
Operating Margin
Operating margin
16.6% to 17.2%
Forecasted restructuring / other costs
0.5%
Adjusted operating margin
17.1% to 17.7%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807897327/en/
Diane McClintock SVP FP&A & Investor Relations email:
investorrelations@wattswater.com
Grafico Azioni Watts Water Technologies (NYSE:WTS)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Watts Water Technologies (NYSE:WTS)
Storico
Da Feb 2024 a Feb 2025
