Federal Signal Reports Third Quarter Results Including 6% Organic Net Sales Growth and Double-Digit Earnings Improvement; Raises Full-Year Earnings Outlook and EBITDA Margin Targets for Safety and Security Systems Group
Federal Signal (NYSE:FSS) reported strong Q3 2024 results with net sales of $474 million, up 6% year-over-year. The company achieved notable improvements with operating income increasing 21% to $75.9 million and GAAP Diluted EPS rising 23% to $0.87. Backlog remained robust at $1.03 billion, up 3% from last year.
The company raised its 2024 adjusted EPS outlook to $3.30-$3.40 and increased EBITDA margin targets for the Safety and Security Systems Group to 18-24%. Operating cash flow showed significant improvement, up 43% to $69 million in Q3.
Federal Signal (NYSE:FSS) ha riportato risultati solidi nel terzo trimestre del 2024, con vendite nette di $474 milioni, in aumento del 6% rispetto all'anno precedente. L'azienda ha registrato notevoli miglioramenti, con un incremento dell'utile operativo del 21%, che ha raggiunto $75,9 milioni, e l'utile per azione diluito GAAP in aumento del 23%, pari a $0,87. Il portafoglio ordini è rimasto robusto a $1,03 miliardi, in aumento del 3% rispetto all'anno scorso.
L'azienda ha alzato le previsioni per l'utile per azione rettificato del 2024 a un range di $3,30-$3,40 e ha aumentato gli obiettivi per il margine EBITDA per il Safety and Security Systems Group al 18-24%. Il flusso di cassa operativo ha mostrato un miglioramento significativo, con un aumento del 43% a $69 milioni nel terzo trimestre.
Federal Signal (NYSE:FSS) reportó resultados sólidos en el tercer trimestre de 2024, con ventas netas de $474 millones, un aumento del 6% en comparación con el año anterior. La compañía logró mejoras notables, con un incremento del ingreso operativo del 21% alcanzando $75.9 millones y un aumento del 23% en el EPS diluido GAAP, que llegó a $0.87. La cartera de pedidos se mantuvo sólida en $1.03 mil millones, un incremento del 3% respecto al año pasado.
La compañía elevó su proyección de EPS ajustado para 2024 a un rango de $3.30-$3.40 y aumentó los objetivos de margen EBITDA para el Grupo de Sistemas de Seguridad y Protección al 18-24%. El flujo de efectivo operativo mostró una mejora significativa, aumentando un 43% a $69 millones en el tercer trimestre.
Federal Signal (NYSE:FSS)는 2024년 3분기 강력한 실적을 보고했으며, 순매출은 $474백만으로 전년 대비 6% 증가했습니다. 회사는 운영 수익이 21% 증가하여 $75.9백만에 도달하고 GAAP 희석 EPS가 23% 상승하여 $0.87에 이르는 주목할 만한 개선을 이루었습니다. 수주 잔량은 전년 대비 3% 증가한 $1.03십억으로 견조한 상태를 유지했습니다.
회사는 2024년 조정 EPS 전망을 $3.30-$3.40로 상향 조정하고, 안전 및 보안 시스템 그룹의 EBITDA 마진 목표를 18-24%로 증가시켰습니다. 운영 현금 흐름은 3분기 동안 43% 증가하여 $69백만에 이르는 значительные улучшения를 보였습니다.
Federal Signal (NYSE:FSS) a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires net de $474 millions, en hausse de 6 % par rapport à l'année précédente. L'entreprise a réalisé des améliorations notables, avec un résultat opérationnel en hausse de 21 %, atteignant $75,9 millions, et un BPA dilué selon les normes GAAP en hausse de 23 %, à $0,87. Le carnet de commandes est resté solide à $1,03 milliard, en hausse de 3 % par rapport à l'année dernière.
L'entreprise a relevé ses prévisions de BPA ajusté pour 2024 à une fourchette de $3,30-$3,40 et a augmenté les objectifs de marge EBITDA pour le groupe Systèmes de sécurité et de protection à 18-24 %. Le flux de trésorerie opérationnel a montré une amélioration significative, en hausse de 43 %, atteignant $69 millions au troisième trimestre.
Federal Signal (NYSE:FSS) hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit Nettoumsätzen von $474 Millionen, was einem Anstieg von 6% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte bemerkenswerte Verbesserungen, da das Betriebsergebnis um 21% auf $75,9 Millionen stieg und das GAAP verwässerte EPS um 23% auf $0,87 zunahm. Der Auftragsbestand blieb mit $1,03 Milliarden robust, was einer Steigerung um 3% im Vergleich zum Vorjahr entspricht.
Das Unternehmen hob seine Prognose für das bereinigte EPS 2024 auf $3,30-$3,40 an und erhöhte die EBITDA-Margen-Ziele für die Sicherheits- und Schutzsystemgruppe auf 18-24%. Der operative Cashflow zeigte eine signifikante Verbesserung und stieg im dritten Quartal um 43% auf $69 Millionen.
- Net sales increased 6% to $474 million
- Operating income grew 21% to $75.9 million
- GAAP Diluted EPS increased 23% to $0.87
- Operating cash flow improved 43% to $69 million
- Aftermarket revenues increased 10%
- Raised full-year adjusted EPS guidance to $3.30-$3.40
- Adjusted EBITDA margin expanded 200 basis points to 19.6%
- Orders decreased from $450 million to $426 million in Q3
Insights
Federal Signal's Q3 2024 results demonstrate robust financial performance with significant improvements across key metrics. Net sales increased 6% to
The 43% increase in operating cash flow to
The $1.03 billion backlog and consistent aftermarket revenue growth (
Third Quarter Highlights
- Net sales of
$474 million $28 million 6% , from last year - Operating income of
$75.9 million $13.4 million 21% , from last year - GAAP Diluted EPS of
$0.87 $0.16 23% , from last year - Adjusted EPS of
$0.88 $0.17 24% , from last year - Backlog of
$1.03 billion $27 million 3% , from last year - Operating cash flow of
$69 million $21 million 43% , from last year - Raises 2024 adjusted EPS* outlook to a new range of
$3.30 $3.40 $3.20 $3.35 - Raises EBITDA margin targets for the Safety and Security Systems Group to a new range of
18% to24% , from the previous range of17% to21%
Consolidated net sales for the third quarter were
The Company also reported adjusted net income for the third quarter of
Organic Year-over-Year Net Sales Growth and Double-Digit Improvement in Earnings; Raising EBITDA Margin Targets for the Safety and Security Systems Group
"With our teams' continued focus on operational execution and serving our customers, our businesses were able to deliver
In the Environmental Solutions Group, net sales for the third quarter were
Consolidated operating income for the third quarter was
Consolidated adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA") for the third quarter was
In the Environmental Solutions Group, adjusted EBITDA for the third quarter was
Consolidated orders for the third quarter were
Increased Operating Cash Flow Further Strengthens Financial Position, Providing Flexibility to Fund Growth Opportunities and Cash Returns to Stockholders
Net cash provided by operating activities during the third quarter was
At September 30, 2024, consolidated debt was
"Our operating cash flow generation this quarter was outstanding, enabling us to pay down approximately
The Company funded dividends of
Outlook
"Demand for our products and aftermarket offerings remains high, with our order intake this quarter contributing to a backlog of
CONFERENCE CALL
Federal Signal will host its third quarter conference call on Thursday, October 31, 2024 at 10:00 a.m. Eastern Time. The call will last approximately one hour. The call may be accessed over the internet through Federal Signal's website at www.federalsignal.com or by dialing phone number 1-877-704-4453 and entering the pin number 13749732. A replay will be available on Federal Signal's website shortly after the call.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Headquartered in
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic and political uncertainty, risks and adverse economic effects associated with geopolitical conflicts, legal and regulatory developments, foreign currency exchange rate changes, inflationary pressures, product and price competition, supply chain disruptions, availability and pricing of raw materials, interest rate changes, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, work stoppages, increases in pension funding requirements, cybersecurity risks, increased legal expenses and litigation results and other risks, and uncertainties described in filings with the Securities and Exchange Commission.
* Adjusted earnings per share ("EPS") is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. In the three and nine months ended September 30, 2024 and 2023, we made adjustments to exclude the impact of acquisition and integration-related expenses, net, and certain special income tax items, where applicable. In prior years, we have also made adjustments to exclude the impact of environmental remediation costs of a discontinued operation, purchase accounting effects, pension settlement charges, and certain other unusual or non-recurring items. Should any similar items occur in the remainder of 2024, we would expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B).
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net sales | $ 474.2 | $ 446.4 | |||||
Cost of sales | 333.8 | 328.7 | 989.1 | 943.5 | |||
Gross profit | 140.4 | 117.7 | 400.4 | 330.8 | |||
Selling, engineering, general and administrative expenses | 60.1 | 50.6 | 175.6 | 156.0 | |||
Amortization expense | 3.8 | 3.9 | 11.2 | 11.4 | |||
Acquisition and integration-related expenses, net | 0.6 | 0.7 | 2.3 | 2.0 | |||
Operating income | 75.9 | 62.5 | 211.3 | 161.4 | |||
Interest expense, net | 3.0 | 5.1 | 9.4 | 15.4 | |||
Other expense, net | 0.3 | 0.3 | 0.9 | 1.5 | |||
Income before income taxes | 72.6 | 57.1 | 201.0 | 144.5 | |||
Income tax expense | 18.7 | 13.8 | 34.7 | 33.5 | |||
Net income | $ 53.9 | $ 43.3 | $ 166.3 | $ 111.0 | |||
Earnings per share: | |||||||
Basic | $ 0.88 | $ 0.71 | $ 2.73 | $ 1.83 | |||
Diluted | $ 0.87 | $ 0.71 | $ 2.70 | $ 1.81 | |||
Weighted average common shares outstanding: | |||||||
Basic | 61.0 | 60.8 | 61.0 | 60.7 | |||
Diluted | 61.7 | 61.4 | 61.7 | 61.4 | |||
Cash dividends declared per common share | $ 0.12 | $ 0.10 | $ 0.36 | $ 0.29 | |||
Operating data: | |||||||
Operating margin | 16.0 % | 14.0 % | 15.2 % | 12.7 % | |||
Adjusted EBITDA | $ 93.0 | $ 78.5 | $ 261.3 | $ 208.5 | |||
Adjusted EBITDA margin | 19.6 % | 17.6 % | 18.8 % | 16.4 % | |||
Total orders | $ 425.9 | $ 450.2 | |||||
Backlog | 1,032.8 | 1,005.8 | 1,032.8 | 1,005.8 | |||
Depreciation and amortization | 16.5 | 15.3 | 47.7 | 45.1 | |||
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | |||
September 30, | December 31, | ||
(in millions, except per share data) | (Unaudited) | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 73.7 | $ 61.0 | |
Accounts receivable, net of allowances for doubtful accounts of | 220.3 | 186.2 | |
Inventories | 337.0 | 303.4 | |
Prepaid expenses and other current assets | 18.2 | 19.6 | |
Total current assets | 649.2 | 570.2 | |
Properties and equipment, net of accumulated depreciation of | 205.6 | 190.8 | |
Rental equipment, net of accumulated depreciation of | 159.8 | 134.8 | |
Operating lease right-of-use assets | 27.0 | 21.0 | |
Goodwill | 471.6 | 472.7 | |
Intangible assets, net of accumulated amortization of | 197.1 | 207.5 | |
Deferred tax assets | 11.7 | 12.0 | |
Other long-term assets | 11.6 | 11.5 | |
Total assets | $ 1,733.6 | $ 1,620.5 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Current portion of long-term borrowings and finance lease obligations | $ 8.1 | $ 4.7 | |
Accounts payable | 88.9 | 66.7 | |
Customer deposits | 22.0 | 27.1 | |
Accrued liabilities: | |||
Compensation and withholding taxes | 41.0 | 42.3 | |
Current operating lease liabilities | 7.1 | 6.8 | |
Other current liabilities | 62.3 | 48.2 | |
Total current liabilities | 229.4 | 195.8 | |
Long-term borrowings and finance lease obligations | 223.3 | 294.3 | |
Long-term operating lease liabilities | 20.7 | 14.9 | |
Long-term pension and other postretirement benefit liabilities | 41.0 | 44.2 | |
Deferred tax liabilities | 56.5 | 53.2 | |
Other long-term liabilities | 13.3 | 16.2 | |
Total liabilities | 584.2 | 618.6 | |
Stockholders' equity: | |||
Common stock, | 70.3 | 70.0 | |
Capital in excess of par value | 306.0 | 291.1 | |
Retained earnings | 1,060.1 | 915.8 | |
Treasury stock, at cost, 9.2 and 9.0 shares, respectively | (205.5) | (193.7) | |
Accumulated other comprehensive loss | (81.5) | (81.3) | |
Total stockholders' equity | 1,149.4 | 1,001.9 | |
Total liabilities and stockholders' equity | $ 1,733.6 | $ 1,620.5 | |
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
Nine Months Ended September 30, | |||
(in millions) | 2024 | 2023 | |
Operating activities: | |||
Net income | $ 166.3 | $ 111.0 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 47.7 | 45.1 | |
Stock-based compensation expense | 12.2 | 8.9 | |
Changes in fair value of contingent consideration | 0.1 | (0.2) | |
Amortization of interest rate swap settlement gain | (1.4) | (1.8) | |
Deferred income taxes | 4.0 | 2.0 | |
Changes in operating assets and liabilities | (88.2) | (74.0) | |
Net cash provided by operating activities | 140.7 | 91.0 | |
Investing activities: | |||
Purchases of properties and equipment | (32.1) | (21.4) | |
Payments for acquisition-related activity, net of cash acquired | — | (55.1) | |
Other, net | 1.3 | 0.8 | |
Net cash used for investing activities | (30.8) | (75.7) | |
Financing activities: | |||
(Decrease) increase in revolving lines of credit, net | (64.4) | 4.6 | |
Payments on long-term borrowings | (1.6) | — | |
Purchases of treasury stock | (4.5) | (4.3) | |
Redemptions of common stock to satisfy withholding taxes related to stock-based compensation | (6.0) | (5.6) | |
Payments for acquisition-related activity | — | (0.5) | |
Cash dividends paid to stockholders | (22.0) | (17.7) | |
Proceeds from stock-based compensation activity | 1.6 | 2.3 | |
Other, net | (0.3) | — | |
Net cash used for financing activities | (97.2) | (21.2) | |
Effects of foreign exchange rate changes on cash and cash equivalents | — | (0.6) | |
Increase (decrease) in cash and cash equivalents | 12.7 | (6.5) | |
Cash and cash equivalents at beginning of year | 61.0 | 47.5 | |
Cash and cash equivalents at end of period | $ 73.7 | $ 41.0 | |
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES GROUP RESULTS (Unaudited) | |||||||||||
The following tables summarize group operating results as of and for the three and nine months ended September 30, 2024 and 2023: Environmental Solutions Group | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||
Net sales | $ 398.2 | $ 373.0 | $ 25.2 | $ 1,161.0 | $ 1,064.8 | $ 96.2 | |||||
Operating income | 71.5 | 57.2 | 14.3 | 196.1 | 151.0 | 45.1 | |||||
Adjusted EBITDA | 87.2 | 72.0 | 15.2 | 241.9 | 193.9 | 48.0 | |||||
Operating data: | |||||||||||
Operating margin | 18.0 % | 15.3 % | 2.7 % | 16.9 % | 14.2 % | 2.7 % | |||||
Adjusted EBITDA margin | 21.9 % | 19.3 % | 2.6 % | 20.8 % | 18.2 % | 2.6 % | |||||
Total orders | $ 352.7 | $ 374.8 | $ (22.1) | $ 1,176.6 | $ 1,179.2 | $ (2.6) | |||||
Backlog | 979.7 | 938.6 | 41.1 | 979.7 | 938.6 | 41.1 | |||||
Depreciation and amortization | 15.4 | 14.3 | 1.1 | 44.4 | 41.8 | 2.6 | |||||
Safety and Security Systems Group | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
($ in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||
Net sales | $ 76.0 | $ 73.4 | $ 2.6 | $ 228.5 | $ 209.5 | $ 19.0 | |||||
Operating income | 16.8 | 13.7 | 3.1 | 48.9 | 39.9 | 9.0 | |||||
Adjusted EBITDA | 17.8 | 14.6 | 3.2 | 51.9 | 43.0 | 8.9 | |||||
Operating data: | |||||||||||
Operating margin | 22.1 % | 18.7 % | 3.4 % | 21.4 % | 19.0 % | 2.4 % | |||||
Adjusted EBITDA margin | 23.4 % | 19.9 % | 3.5 % | 22.7 % | 20.5 % | 2.2 % | |||||
Total orders | $ 73.2 | $ 75.4 | $ (2.2) | $ 225.0 | $ 225.9 | $ (0.9) | |||||
Backlog | 53.1 | 67.2 | (14.1) | 53.1 | 67.2 | (14.1) | |||||
Depreciation and amortization | 1.0 | 0.9 | 0.1 | 3.0 | 3.1 | (0.1) | |||||
Corporate Expenses
Corporate operating expenses were
SEC REGULATION G NON-GAAP RECONCILIATION
The financial measures presented below are unaudited and are not in accordance with
Adjusted Net Income and Earnings Per Share ("EPS"):
The Company believes that modifying its 2024 and 2023 net income and diluted EPS provides additional measures which are representative of the Company's underlying performance and improves the comparability of results across reporting periods. During the three and nine months ended September 30, 2024 and 2023 adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration-related expenses, net, environmental remediation costs of a discontinued operation and certain special income tax items, where applicable.
Three Months Ended | Nine Months Ended | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
Net income, as reported | $ 53.9 | $ 43.3 | $ 166.3 | $ 111.0 | |||
Add: | |||||||
Income tax expense | 18.7 | 13.8 | 34.7 | 33.5 | |||
Income before income taxes | 72.6 | 57.1 | 201.0 | 144.5 | |||
Add: | |||||||
Acquisition and integration-related expenses, net | 0.6 | 0.7 | 2.3 | 2.0 | |||
Environmental remediation costs of a discontinued operation (a) | — | — | — | 0.8 | |||
Adjusted income before income taxes | 73.2 | 57.8 | 203.3 | 147.3 | |||
Adjusted income tax expense (b) (c) | (19.0) | (14.0) | (50.8) | (34.2) | |||
Adjusted net income | $ 54.2 | $ 43.8 | $ 152.5 | $ 113.1 | |||
Three Months Ended | Nine Months Ended | ||||||
(dollars per diluted share) | 2024 | 2023 | 2024 | 2023 | |||
EPS, as reported | $ 0.87 | $ 0.71 | $ 2.70 | $ 1.81 | |||
Add: | |||||||
Income tax expense | 0.31 | 0.22 | 0.56 | 0.55 | |||
Income before income taxes | 1.18 | 0.93 | 3.26 | 2.36 | |||
Add: | |||||||
Acquisition and integration-related expenses, net | 0.01 | 0.01 | 0.04 | 0.03 | |||
Environmental remediation costs of a discontinued operation (a) | — | — | — | 0.01 | |||
Adjusted income before income taxes | 1.19 | 0.94 | 3.30 | 2.40 | |||
Adjusted income tax expense (b) (c) | (0.31) | (0.23) | (0.83) | (0.56) | |||
Adjusted EPS | $ 0.88 | $ 0.71 | $ 2.47 | $ 1.84 | |||
(a) | Environmental remediation costs of a discontinued operation in the nine months ended September 30, 2023 relate to estimated environmental clean up costs at a facility associated with a business that was discontinued in 2009. Such charges are included as a component of Other expense, net on the Condensed Consolidated Statements of Operations. |
(b) | Adjusted income tax expense for the three and nine months ended September 30, 2024 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net. Adjusted income tax expense for the nine months ended September 30, 2024 also excludes |
(c) | Adjusted income tax expense for the three and nine months ended September 30, 2023 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and environmental remediation costs of a discontinued operation. |
Adjusted EBITDA and Adjusted EBITDA Margin:
The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), at both the consolidated and segment level, as additional measures which are representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin, at both the consolidated and segment level, are meaningful metrics to investors in evaluating the Company's underlying financial performance.
Consolidated adjusted EBITDA is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, other expense, net, income tax expense, and depreciation and amortization expense, as applicable. Consolidated adjusted EBITDA margin is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, other expense, net, income tax expense, and depreciation and amortization expense, as applicable, divided by net sales for the applicable period(s).
Segment adjusted EBITDA is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, and depreciation and amortization expense, as applicable. Segment adjusted EBITDA margin is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, and depreciation and amortization expense, as applicable, divided by segment net sales for the applicable period(s). Segment operating income includes all revenues, costs and expenses directly related to the segment involved. In determining segment operating income, neither corporate nor interest expenses are included. Segment depreciation and amortization expense relates to those assets, both tangible and intangible, that are utilized by the respective segment.
Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin.
Consolidated
The following table summarizes the Company's consolidated adjusted EBITDA and adjusted EBITDA margin and reconciles net income to consolidated adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended | Nine Months Ended | ||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 53.9 | $ 43.3 | $ 166.3 | $ 111.0 | |||
Add: | |||||||
Interest expense, net | 3.0 | 5.1 | 9.4 | 15.4 | |||
Acquisition and integration-related expenses, net | 0.6 | 0.7 | 2.3 | 2.0 | |||
Other expense, net | 0.3 | 0.3 | 0.9 | 1.5 | |||
Income tax expense | 18.7 | 13.8 | 34.7 | 33.5 | |||
Depreciation and amortization | 16.5 | 15.3 | 47.7 | 45.1 | |||
Consolidated adjusted EBITDA | $ 93.0 | $ 78.5 | $ 261.3 | $ 208.5 | |||
Net sales | $ 474.2 | $ 446.4 | |||||
Consolidated adjusted EBITDA margin | 19.6 % | 17.6 % | 18.8 % | 16.4 % | |||
Environmental Solutions Group
The following table summarizes the Environmental Solutions Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended | Nine Months Ended | ||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |||
Operating income | $ 71.5 | $ 57.2 | $ 196.1 | $ 151.0 | |||
Add: | |||||||
Acquisition and integration-related expenses, net | 0.3 | 0.5 | 1.4 | 1.1 | |||
Depreciation and amortization | 15.4 | 14.3 | 44.4 | 41.8 | |||
Adjusted EBITDA | $ 87.2 | $ 72.0 | $ 241.9 | $ 193.9 | |||
Net sales | $ 398.2 | $ 373.0 | |||||
Adjusted EBITDA margin | 21.9 % | 19.3 % | 20.8 % | 18.2 % | |||
Safety and Security Systems Group
The following table summarizes the Safety and Security Systems Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended | Nine Months Ended | ||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |||
Operating income | $ 16.8 | $ 13.7 | $ 48.9 | $ 39.9 | |||
Add: | |||||||
Depreciation and amortization | 1.0 | 0.9 | 3.0 | 3.1 | |||
Adjusted EBITDA | $ 17.8 | $ 14.6 | $ 51.9 | $ 43.0 | |||
Net sales | $ 76.0 | $ 73.4 | $ 228.5 | $ 209.5 | |||
Adjusted EBITDA margin | 23.4 % | 19.9 % | 22.7 % | 20.5 % | |||
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What is Federal Signal's (FSS) new EPS guidance for 2024?
What was Federal Signal's (FSS) Q3 2024 backlog?
What was Federal Signal's (FSS) operating cash flow in Q3 2024?
