Investor call scheduled for Wednesday, July 31, 2024 at 8:30
a.m. Eastern Time
Zurn Elkay Water Solutions Corporation (NYSE:ZWS):
Second Quarter
Highlights
- Net sales in the quarter were $412 million compared with $403
million in last year’s June quarter (+2% core sales(1), inclusive
of a 100 basis point impact from the planned exit of certain
residential sink products).
- Net income from continuing operations was $45 million (diluted
EPS from continuing operations of $0.26) compared with net income
from continuing operations of $33 million (diluted EPS from
continuing operations of $0.19) in the year-ago quarter.
- Adjusted EPS(1) was $0.33 compared with $0.24 in the year-ago
quarter.
- Adjusted EBITDA(1) was $104 million (25.3% of net sales)
compared with $87 million (21.6% of net sales) in last year's
second quarter.
- Net debt leverage(1) of 0.9x as of June 30, 2024.
- Deployed $61 million to repurchase 1.9 million shares of common
stock in the quarter.
Todd A. Adams, Chairman and Chief Executive Officer, commented,
“Both sales and margins exceeded our guidance for the second
quarter, as we leveraged 3% pro forma core sales(1) growth into
adjusted EBITDA(1) growth of 20% over the prior year, as margins
improved 370 basis points to 25.3%. We delivered strong second
quarter free cash flow(1) of $80 million while net debt leverage(1)
continues at an all-time low of 0.9x. We also repurchased nearly 2
million shares in the quarter for a total of $61 million, bringing
our year to date repurchases to $80 million.
“Our team’s belief in and relentless deployment of the Zurn
Elkay Business System is what is driving our above market growth
and superior financial performance around margins and free cash
flow(1). We’ve clearly exceeded the original $50 million of
synergies related to the Elkay transaction, while investing in and
positioning ourselves for better long-term growth once the broader
market begins to improve. In the meantime, our focus will be to
concentrate on our customers, drive our strategic breakthroughs,
and continue to build upon our unmatched competitive advantages for
water solutions in North America.”
Third Quarter Outlook
Adams continued, “For the third quarter, we expect pro forma
core sales(1) growth in the low single digit range and an adjusted
EBITDA(1) margin of approximately 25%. We are again raising our
expected full year adjusted EBITDA(1) margin expansion to 200 to
250 basis points (previous guidance was 150 to 200) of adjusted
EBITDA(1) margin expansion over the prior year and now expect full
year free cash flow(1) to exceed $250 million.”
Second Quarter 2024
Overview
Net sales were $412.0 million and $403.2 million during the
three months ended June 30, 2024 and June 30, 2023, respectively,
an increase of 2% year over year. Core sales growth of 2%,
including growth across multiple product categories, was offset by
a 100 basis point impact from the planned exit of certain
residential sink products.
During the three months ended June 30, 2024, income from
operations was $71.9 million compared to $54.8 million during the
three months ended June 30, 2023. Income from operations as a
percentage of net sales increased by 390 basis points year over
year due to the benefits resulting from productivity synergies and
restructuring actions related to the Elkay Merger, as well as lower
material costs and restructuring expense year over year.
Adjusted EBITDA(1) was $104.3 million, or 25.3% of net sales,
during the three months ended June 30, 2024 compared to $87.0
million, or 21.6% of net sales, during the three months ended June
30, 2023.
(1)
Refer to "Non-GAAP Financial Measures" for
a definition of this non-GAAP metric, as well as the accompanying
reconciliations to GAAP.
Non-GAAP Financial Measures
The following non-GAAP financial measures are utilized by
management in comparing our operating performance on a consistent
basis. We believe that these financial measures are appropriate to
enhance an overall understanding of our underlying operating
performance trends compared to historical and prospective periods
and our peers. Management also believes that these measures are
useful to investors in their analysis of our results of operations
and provide improved comparability between fiscal periods as well
as insight into the compliance with our debt covenants. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information calculated in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP
financial measures. A reconciliation of non-GAAP financial measures
presented above to our GAAP results has been provided in the
financial tables included in this press release.
Core Sales
Core sales excludes the impact of mergers, acquisitions,
divestitures and foreign currency translation. Management believes
that core sales facilitates easier and more meaningful comparison
of our net sales performance with prior and future periods and to
our peers. We exclude the effect of mergers, acquisitions and
divestitures because the nature, size and number of mergers,
acquisitions and divestitures can vary dramatically from period to
period and between us and our peers, and can also obscure
underlying business trends and make comparisons of long-term
performance difficult. We exclude the effect of foreign currency
translation from this measure because the volatility of currency
translation is not under management's control. Further, management
uses "pro forma core sales", defined as reported sales less the
impact of mergers, acquisitions, divestitures, foreign currency
translation, and product line exits, as a measure of our financial
performance that is more relevant when evaluating us against
peers.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted net income and adjusted earnings per share (calculated
on a diluted basis) exclude actuarial gains and losses on pension
and postretirement benefit obligations, restructuring and other
similar charges, gains or losses on divestitures, discontinued
operations, gains or losses on extinguishment of debt, the impact
of acquisition-related fair value adjustments in connection with
purchase accounting, amortization of intangible assets, the
adjustment to state inventories at last-in first-out costs, and
other non-operational, non-cash or non-recurring losses, net of
their income tax impact. The tax rates used to calculate adjusted
net income and adjusted earnings per share are based on a
transaction specific basis. We believe that adjusted net income and
adjusted earnings per share are useful in assessing our financial
performance by excluding items that are not indicative of our core
operating performance or that may obscure trends useful in
evaluating our continuing results of operations.
EBITDA
EBITDA represents earnings from continuing operations before
interest and other debt related activities, taxes, depreciation and
amortization. EBITDA is presented because it is an important
supplemental measure of performance and it is frequently used by
analysts, investors and other interested parties in the evaluation
of companies in our industry. EBITDA is also presented and compared
by analysts and investors in evaluating our ability to meet debt
service obligations. Other companies in our industry may calculate
EBITDA differently. EBITDA is not a measurement of financial
performance under GAAP and should not be considered as an
alternative to cash flow from operating activities or as a measure
of liquidity or an alternative to net income as indicators of
operating performance or any other measures of performance derived
in accordance with GAAP. Because EBITDA is calculated before
recurring cash charges, including interest expense and taxes, and
is not adjusted for capital expenditures or other recurring cash
requirements of the business, it should not be considered as a
measure of discretionary cash available to invest in the growth of
the business.
Adjusted EBITDA
“Adjusted EBITDA” is the term we use to describe EBITDA as
defined and adjusted in our credit agreement, which is net income,
adjusted for the items summarized in the Reconciliation of GAAP to
Non-GAAP Financial Measures table below. Adjusted EBITDA is
intended to show our unleveraged, pre-tax operating results and
therefore reflects our financial performance based on operational
factors, excluding non-operational, non-cash or non-recurring
losses or gains. In view of our debt level, it is also provided to
aid investors in understanding our compliance with our debt
covenants. Adjusted EBITDA is not a presentation made in accordance
with GAAP, and our use of the term Adjusted EBITDA varies from
others in our industry. Adjusted EBITDA should not be considered as
an alternative to net income, income from operations or any other
performance measures derived in accordance with GAAP. Adjusted
EBITDA has important limitations as an analytical tool, and you
should not consider it in isolation, or as a substitute for,
analysis of our results as reported under GAAP. For example,
Adjusted EBITDA does not reflect: (a) our capital expenditures,
future requirements for capital expenditures or contractual
commitments; (b) changes in, or cash requirements for, our working
capital needs; (c) the significant interest expenses, or the cash
requirements necessary to service interest or principal payments,
on our debt; (d) tax payments that represent a reduction in cash
available to us; (e) any cash requirements for the assets being
depreciated and amortized that may have to be replaced in the
future; or (f) the impact of earnings or charges resulting from
matters that we and the lenders under our credit agreement may not
consider indicative of our ongoing operations. In particular, our
definition of Adjusted EBITDA allows us to add back certain
non-cash, non-operating or non-recurring charges that are deducted
in calculating net income, even though these are expenses that may
recur, vary greatly and are difficult to predict and can represent
the effect of long-term strategies as opposed to short-term
results. “Adjusted EBITDA Margin” is the term we use to describe
Adjusted EBITDA divided by net sales.
In addition, certain of these expenses can represent the
reduction of cash that could be used for other corporate purposes.
Further, although not included in the calculation of Adjusted
EBITDA below, the measure may at times allow us to add estimated
cost savings and operating synergies related to operational changes
ranging from acquisitions to dispositions to restructurings and/or
exclude one-time transition expenditures that we anticipate we will
need to incur to realize cost savings before such savings have
occurred. Further, management and various investors use the ratio
of total debt less cash to Adjusted EBITDA (which includes a full
pro forma last-twelve-month impact of acquisitions), or "net debt
leverage", as a measure of our financial strength and ability to
incur incremental indebtedness when making key investment decisions
and evaluating us against peers. Lastly, management and various
investors use the ratio of the change in Adjusted EBITDA divided by
the change in net sales (referred to as “incremental margin” in the
case of an increase in net sales or “decremental margin” in the
case of a decrease in net sales) as an additional measure of our
financial performance and when making key investment decisions and
evaluating us against peers.
Free Cash Flow
We define Free Cash Flow as cash flow from operations less
capital expenditures, and we use this metric in analyzing our
ability to service and repay our debt and to forecast future
periods. However, this measure does not represent funds available
for investment or other discretionary uses since it does not deduct
cash used to service our debt. We define Free Cash Flow Conversion
as Free Cash Flow divided by net income.
Return on Invested Capital (“ROIC”)
ROIC is used because we believe it is an important supplemental
measure of financial performance and it is also currently a
performance measure under our long-term incentive plan. ROIC is
frequently used by analysts, investors and other interested parties
in the evaluation of companies in our industry. ROIC is also used
by investors and analysts to evaluate management’s deployment of
capital to create shareholder value. We define ROIC as tax-effected
net operating income for the last 12 months divided by average
total invested capital over a rolling four-quarter period. Total
invested capital is defined as shareholders equity plus debt, less
cash and cash equivalents. Other companies may not define or
calculate ROIC in the same way.
About Zurn Elkay Water Solutions
Named one of America’s Most Responsible Companies 2024 by
Newsweek for the fourth consecutive year, Zurn Elkay Water
Solutions is headquartered in Milwaukee, WI, and is a
growth-oriented, pure-play water management business that designs,
procures, manufactures, and markets what we believe to be the
broadest sustainable product portfolio of specification-driven
water management solutions to improve health, hydration, human
safety, and the environment. The Zurn Elkay product portfolio
includes professional grade water safety and control products, flow
systems products, hygienic and environmental products, and filtered
drinking water products for public and private spaces. Visit
www.zurnelkay.com for additional information about the Company.
Conference Call Details
Zurn Elkay Water Solutions will hold a conference call and
webcast presentation on Wednesday, July 31, 2024, at 8:30 a.m.
Eastern Time to discuss its second quarter 2024 results, provide a
general business update and respond to investor questions. Zurn
Elkay Water Solutions Chairman and CEO, Todd Adams, and CFO, Dave
Pauli, will co-host the call and webcast. The conference call can
be accessed via telephone as follows:
Domestic toll-free: 800-715-9871
International toll: 646-307-1963 Access Code: 6071902
A live webcast of the call will also be available on the
Company's investor relations website. Please go to the website
(investors.zurnelkay.com) at least 15 minutes prior to the start of
the call to register, download and install any necessary audio
software.
If you are unable to participate during the live teleconference,
a replay of the conference call will be available as a webcast on
the Company's investor relations website.
Cautionary Statement on Forward-Looking Statements
Information in this release may involve outlook, expectations,
beliefs, plans, intentions, strategies or other statements
regarding the future, which are forward-looking statements. These
forward-looking statements involve risks and uncertainties. All
forward-looking statements included in this release are based on
information available to Zurn Elkay Water Solutions as of the date
of this release, and Zurn Elkay Water Solutions assumes no
obligation to update any such forward-looking statements. The
statements in this release are not guarantees of future
performance, and actual results could differ materially from
current expectations. Numerous factors could cause or contribute to
such differences. Please refer to “Risk Factors” and “Cautionary
Notice Regarding Forward-Looking Statements” in our report on Form
10-K for the period ended December 31, 2023, as well as the
Company’s subsequent annual, quarterly and current reports filed on
Forms 10-K, 10-Q and 8-K from time to time with the Securities and
Exchange Commission for a further discussion of the factors and
risks associated with the business.
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Operations
(in Millions, except share and
per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net sales
$
412.0
$
403.2
$
785.8
$
775.3
Cost of sales
225.7
229.7
429.4
453.0
Gross profit
186.3
173.5
356.4
322.3
Selling, general and administrative
expenses
98.9
96.3
194.8
184.8
Restructuring and other similar
charges
0.7
7.8
7.0
9.7
Amortization of intangible assets
14.8
14.6
29.5
29.3
Income from operations
71.9
54.8
125.1
98.5
Non-operating expense:
Interest expense, net
(8.5
)
(10.3
)
(17.3
)
(19.9
)
Other income (expense), net
(1.6
)
1.6
(3.0
)
(0.8
)
Income before income taxes
61.8
46.1
104.8
77.8
Provision for income taxes
(16.5
)
(13.2
)
(25.5
)
(22.3
)
Net income from continuing operations
45.3
32.9
79.3
55.5
Income from discontinued operations, net
of tax
0.7
1.7
1.0
1.9
Net income
$
46.0
$
34.6
$
80.3
$
57.4
Basic net income per share:
Continuing operations
$
0.26
$
0.19
$
0.46
$
0.32
Discontinued operations
$
0.01
$
0.01
$
0.01
$
0.01
Net income
$
0.27
$
0.20
$
0.47
$
0.33
Diluted net income per share:
Continuing operations
$
0.26
$
0.19
$
0.45
$
0.31
Discontinued operations
$
0.01
$
0.01
$
0.01
$
0.01
Net income
$
0.27
$
0.20
$
0.46
$
0.32
Weighted-average number of shares
outstanding (in thousands):
Basic
172,627
174,260
172,818
175,333
Effect of dilutive equity awards
2,376
2,221
2,738
2,365
Diluted
175,003
176,481
175,556
177,698
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended June 30,
2024
(in Millions)
(Unaudited)
Three Months Ended June 30,
2024
Reported Results
Adjustments
Non-GAAP Results
Net Sales
$
412.0
$
—
$
412.0
EBITDA
93.6
10.7
(a)
104.3
Depreciation and amortization
(21.7
)
—
(21.7
)
Income from operations
71.9
10.7
(b)
82.6
Income before income taxes
61.8
17.7
(c)
79.5
Provision for income taxes and indicated
rate
(16.5
)
26.7
%
(4.2
)
23.7
%
(20.7
)
26.0
%
Net income from continuing operations
45.3
13.5
58.8
Income from discontinued operations, net
of tax
0.7
(0.7
)
—
Net income
$
46.0
$
12.8
$
58.8
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
0.7
$
0.7
$
0.7
Other, net (1)
0.2
0.2
0.2
Last-in-first-out inventory
adjustments
0.4
0.4
0.4
Stock-based compensation expense
9.4
9.4
—
Amortization of intangible assets
—
—
14.8
Other expense, net (2)
—
—
1.6
Total Adjustments
$
10.7
$
10.7
$
17.7
____________________
(1) Other, net includes the gains and
losses from the disposition of long-lived assets.
(2) Other expense, net for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions, the non-service cost components of net
periodic benefit costs associated with our defined benefit plans
and other non-operational gains and losses.
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Six Months Ended June 30,
2024
(in Millions)
(Unaudited)
Six Months Ended June 30,
2024
Reported Results
Adjustments
Non-GAAP Results
Net Sales
$
785.8
$
—
$
785.8
EBITDA
168.4
25.9
(a)
194.3
Depreciation and amortization
(43.3
)
—
(43.3
)
Income from operations
125.1
25.9
(b)
151.0
Income before income taxes
104.8
39.0
(c)
143.8
Provision for income taxes and indicated
rate
(25.5
)
24.3
%
(9.3
)
23.8
%
(34.8
)
24.2
%
Net income from continuing operations
79.3
29.7
109.0
Income from discontinued operations, net
of tax
1.0
(1.0
)
—
Net income
$
80.3
$
28.7
$
109.0
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
7.0
$
7.0
$
7.0
Other, net (1)
0.4
0.4
0.4
Last-in-first-out inventory
adjustments
(0.9
)
(0.9
)
(0.9
)
Stock-based compensation expense
19.4
19.4
—
Amortization of intangible assets
—
—
29.5
Other expense, net (2)
—
—
3.0
Total Adjustments
$
25.9
$
25.9
$
39.0
______________________
(1) Other, net includes the gains and
losses from the disposition of long-lived assets.
(2) Other expense, net for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions, the non-service cost components of net
periodic benefit costs associated with our defined benefit plans
and other non-operational gains and losses.
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended June 30,
2023
(in Millions)
(Unaudited)
Three Months Ended June 30,
2023
Reported Results
Adjustments
Non-GAAP Results
Net Sales
$
403.2
$
—
$
403.2
EBITDA
76.6
10.4
(a)
87.0
Depreciation and amortization
(21.8
)
—
(21.8
)
Income from operations
54.8
10.4
(b)
65.2
Income before income taxes
46.1
13.2
(c)
59.3
Provision for income taxes and indicated
rate
(13.2
)
28.6
%
(3.1
)
23.5
%
(16.3
)
27.5
%
Net income from continuing operations
32.9
10.1
43.0
Income from discontinued operations, net
of tax
1.7
(1.7
)
—
Net income
$
34.6
$
8.4
$
43.0
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
7.8
$
7.8
$
7.8
Last-in-first-out inventory
adjustments
(7.6
)
(7.6
)
(7.6
)
Stock-based compensation expense
10.2
10.2
—
Amortization of intangible assets
—
—
14.6
Other income, net (1)
—
—
(1.6
)
Total Adjustments
$
10.4
$
10.4
$
13.2
____________________
(1) Other income, net for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions, the non-service cost components of net
periodic benefit costs associated with our defined benefit plans
and other non-operational gains and losses.
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Six Months Ended June 30,
2023
(in Millions)
(Unaudited)
Six Months Ended June 30,
2023
Reported Results
Adjustments
Non-GAAP Results
Net Sales
$
775.3
$
—
$
775.3
EBITDA
143.1
16.3
(a)
159.4
Depreciation and amortization
(44.6
)
—
(44.6
)
Income from operations
98.5
16.3
(b)
114.8
Income before income taxes
77.8
25.9
(c)
103.7
Provision for income taxes and indicated
rate
(22.3
)
28.7
%
(6.2
)
23.9
%
(28.5
)
27.5
%
Net income from continuing operations
55.5
19.7
75.2
Income from discontinued operations, net
of tax
1.9
(1.9
)
—
Net income
$
57.4
$
17.8
$
75.2
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
9.7
$
9.7
$
9.7
Last-in-first-out inventory
adjustments
(13.9
)
(13.9
)
(13.9
)
Stock-based compensation expense
20.5
20.5
—
Amortization of intangible assets
—
—
29.3
Other expense, net (1)
—
—
0.8
Total Adjustments
$
16.3
$
16.3
$
25.9
____________________
(1) Other expense, net for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions, the non-service cost components of net
periodic benefit costs associated with our defined benefit plans
and other non-operational gains and losses.
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three and Six Months Ended
June 30, 2024 and June 30, 2023
(in Millions, except share and
per share amounts) (Unaudited)
Three Months Ended
Six Months Ended
Adjusted EBITDA
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income
$
46.0
$
34.6
$
80.3
$
57.4
Income from discontinued operations, net
of tax
(0.7
)
(1.7
)
(1.0
)
(1.9
)
Provision for income taxes
16.5
13.2
25.5
22.3
Other (income) expense, net (1)
1.6
(1.6
)
3.0
0.8
Interest expense
8.5
10.3
17.3
19.9
Income from operations
$
71.9
$
54.8
$
125.1
$
98.5
Adjustments
Depreciation and amortization
$
21.7
$
21.8
$
43.3
$
44.6
Restructuring and other similar
charges
0.7
7.8
7.0
9.7
Stock-based compensation expense
9.4
10.2
19.4
20.5
Last-in first-out inventory adjustment
0.4
(7.6
)
(0.9
)
(13.9
)
Other, net (2)
0.2
—
0.4
—
Subtotal of adjustments
32.4
32.2
69.2
60.9
Adjusted EBITDA
$
104.3
$
87.0
$
194.3
$
159.4
____________________
(1) Other (income) expense, net for the
periods indicated, consists primarily of gains and losses from
foreign currency transactions, the non-service cost components of
net periodic benefit costs associated with our defined benefit
plans and other non-operational gains and losses.
(2) Other, net includes the gains and
losses from disposition of long-lived assets.
Three Months Ended
Six Months Ended
Adjusted Net Income and Earnings Per
Share
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income attributable to Zurn Elkay
common stockholders
$
46.0
$
34.6
$
80.3
$
57.4
Income from discontinued operations, net
of tax
(0.7
)
(1.7
)
(1.0
)
(1.9
)
Amortization of intangible assets
14.8
14.6
29.5
29.3
Restructuring and other similar
charges
0.7
7.8
7.0
9.7
Last-in first-out inventory adjustment
0.4
(7.6
)
(0.9
)
(13.9
)
Other (income) expense, net (1)
1.6
(1.6
)
3.0
0.8
Other, net (2)
0.2
—
0.4
—
Tax effect on above items
(4.2
)
(3.1
)
(9.3
)
(6.2
)
Adjusted net income
$
58.8
$
43.0
$
109.0
$
75.2
GAAP diluted net income per share from
continuing operations
$
0.26
$
0.19
$
0.45
$
0.31
Adjusted earnings per share - diluted
$
0.33
$
0.24
$
0.62
$
0.42
Weighted-average number of shares
outstanding (in thousands):
GAAP basic weighted-average shares
172,627
174,260
172,818
175,333
Effect of dilutive equity awards
2,376
2,221
2,738
2,365
Adjusted diluted weighted-average
shares
175,003
176,481
175,556
177,698
____________________
(1) Other (income) expense, net for the
periods indicated, consists primarily of gains and losses from
foreign currency transactions, the non-service cost components of
net periodic benefit costs associated with our defined benefit
plans and other non-operational gains and losses.
(2) Other, net includes the gains and
losses from the disposition of long-lived assets.
Three Months Ended
Six Months Ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Cash provided by operating activities
$
85.1
$
87.2
$
139.0
$
92.2
Expenditures for property, plant and
equipment
(4.9
)
(5.9
)
(8.6
)
(11.1
)
Free cash flow
$
80.2
$
81.3
$
130.4
$
81.1
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Comprehensive Income
(in Millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income
$
46.0
$
34.6
$
80.3
$
57.4
Other comprehensive income (loss):
Foreign currency translation
adjustments
(1.5
)
3.6
(4.0
)
3.5
Other comprehensive income (loss), net of
tax
(1.5
)
3.6
(4.0
)
3.5
Total comprehensive income
$
44.5
$
38.2
$
76.3
$
60.9
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Condensed Consolidated Balance
Sheets
(in Millions, except share
amounts)
(Unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
162.7
$
136.7
Receivables, net
240.1
210.2
Inventories, net
276.2
277.6
Income taxes receivable
0.7
17.0
Other current assets
43.5
26.3
Total current assets
723.2
667.8
Property, plant and equipment, net
168.5
180.3
Intangible assets, net
922.3
952.4
Goodwill
795.1
796.0
Other assets
72.4
70.5
Total assets
$
2,681.5
$
2,667.0
Liabilities and stockholders'
equity
Current liabilities:
Current maturities of debt
$
0.9
$
0.9
Trade payables
77.9
56.4
Compensation and benefits
26.2
30.5
Current portion of pension and
postretirement benefit obligations
1.3
1.3
Other current liabilities
148.8
131.8
Total current liabilities
255.1
220.9
Long-term debt
494.6
494.4
Pension and postretirement benefit
obligations
38.1
36.6
Deferred income taxes
197.0
210.0
Operating lease liability
39.0
37.3
Other liabilities
63.3
65.0
Total liabilities
1,087.1
1,064.2
Stockholders' equity:
Common stock, $0.01 par value; 200,000,000
shares authorized; shares issued and outstanding: 171,097,696 at
June 30, 2024 and 172,262,163 at December 31, 2023
1.7
1.7
Additional paid-in capital
2,842.5
2,847.0
Retained deficit
(1,178.1
)
(1,178.2
)
Accumulated other comprehensive loss
(71.7
)
(67.7
)
Total stockholders' equity
1,594.4
1,602.8
Total liabilities and stockholders'
equity
$
2,681.5
$
2,667.0
Zurn Elkay Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(in Millions)
(Unaudited)
Six Months Ended
June 30, 2024
June 30, 2023
Operating activities
Net income
$
80.3
$
57.4
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation
13.8
15.3
Amortization of intangible assets
29.5
29.3
Non-cash restructuring charges
5.2
2.5
Loss on dispositions of long-lived
assets
0.4
—
Deferred income taxes
(13.0
)
(1.6
)
Other non-cash expenses
2.3
0.3
Stock-based compensation expense
19.4
20.5
Changes in operating assets and
liabilities:
Receivables, net
(30.6
)
(22.2
)
Inventories
0.4
28.8
Other assets
2.0
13.6
Accounts payable
21.8
(50.6
)
Accruals and other
7.5
(1.1
)
Cash provided by operating activities
139.0
92.2
Investing activities
Expenditures for property, plant and
equipment
(8.6
)
(11.1
)
Proceeds from dispositions of long-lived
assets
1.6
0.3
Proceeds from insurance claims
—
9.0
Cash used for investing activities
(7.0
)
(1.8
)
Financing activities
Proceeds from borrowings of debt
—
13.0
Repayments of debt
(0.4
)
(16.1
)
Proceeds from exercise of stock
options
3.8
1.2
Repurchase of common stock
(79.9
)
(87.1
)
Payment of common stock dividends
(27.7
)
(24.5
)
Cash used for financing activities
(104.2
)
(113.5
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1.8
)
1.3
Increase (decrease) in cash, cash
equivalents and restricted cash
26.0
(21.8
)
Cash, cash equivalents and restricted cash
at beginning of period
136.7
124.8
Cash, cash equivalents and restricted cash
at end of period
$
162.7
$
103.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730186942/en/
Dave Pauli Chief Financial Officer 414.223.7770
Grafico Azioni Zurn Elkay Water Solutions (NYSE:ZWS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Zurn Elkay Water Solutions (NYSE:ZWS)
Storico
Da Nov 2023 a Nov 2024
