Zurn Elkay Water Solutions Reports Fourth Quarter and Full Year 2024 Financial Results
Zurn Elkay Water Solutions (NYSE:ZWS) reported strong Q4 2024 results with net sales of $371 million, up 4% in core sales from the previous year. Q4 net income from continuing operations reached $36 million with diluted EPS of $0.21, compared to $14 million and $0.08 EPS in Q4 2023.
For full-year 2024, the company achieved net sales of $1,567 million, a 2% increase from 2023, with net income from continuing operations of $159 million. Notable achievements include record free cash flow of $272 million, completion of $150 million in stock repurchases, and dividend payments of $57 million.
Looking ahead to 2025, ZWS expects low single-digit core sales growth in Q1, with adjusted EBITDA margin between 24.5% and 25.0%. Full-year 2025 guidance includes core sales growth similar to 2024, adjusted EBITDA of $405-420 million, and projected free cash flow of approximately $290 million.
Zurn Elkay Water Solutions (NYSE:ZWS) ha riportato risultati solidi per il quarto trimestre del 2024 con vendite nette di $371 milioni, un aumento del 4% nelle vendite core rispetto all'anno precedente. Il reddito netto del quarto trimestre dalle operazioni continuative ha raggiunto i $36 milioni con un utile per azione (EPS) diluito di $0.21, rispetto ai $14 milioni e a $0.08 di EPS nel quarto trimestre del 2023.
Per l'anno intero 2024, l'azienda ha raggiunto vendite nette di $1,567 milioni, con un aumento del 2% rispetto al 2023, e un reddito netto dalle operazioni continuative di $159 milioni. Tra i risultati notabili ci sono un record di flusso di cassa libero di $272 milioni, il completamento di riacquisti di azioni per $150 milioni e pagamenti di dividendi per $57 milioni.
Guardando al 2025, ZWS prevede una crescita delle vendite core a bassa cifra singola nel primo trimestre, con un margine EBITDA rettificato tra il 24.5% e il 25.0%. La previsione per l'intero 2025 include una crescita delle vendite core simile a quella del 2024, un EBITDA rettificato di $405-420 milioni e un flusso di cassa libero previsto di circa $290 milioni.
Zurn Elkay Water Solutions (NYSE:ZWS) reportó sólidos resultados para el cuarto trimestre de 2024 con ventas netas de $371 millones, un aumento del 4% en ventas núcleo con respecto al año anterior. La renta neta del cuarto trimestre de las operaciones continuas alcanzó los $36 millones con una utilidad por acción (EPS) diluida de $0.21, en comparación con $14 millones y $0.08 de EPS en el cuarto trimestre de 2023.
Para todo el año 2024, la empresa logró ventas netas de $1,567 millones, un aumento del 2% con respecto a 2023, con una renta neta de operaciones continuas de $159 millones. Los logros notables incluyen un flujo de caja libre récord de $272 millones, la finalización de recompras de acciones por $150 millones y pagos de dividendos de $57 millones.
De cara a 2025, ZWS espera un crecimiento de ventas núcleo de un solo dígito bajo en el primer trimestre, con un margen EBITDA ajustado entre el 24.5% y el 25.0%. La guía para todo el año 2025 incluye un crecimiento de ventas núcleo similar al de 2024, un EBITDA ajustado de $405-420 millones y un flujo de caja libre proyectado de aproximadamente $290 millones.
Zurn Elkay Water Solutions (NYSE:ZWS)는 2024년 4분기 강력한 실적을 보고했으며, 순매출은 3억 7천1백만 달러로 전년 대비 4% 증가했습니다. 4분기 지속운영 사업에서의 순소득은 3천6백만 달러에 이르렀고, 희석 EPS는 0.21달러로, 2023년 4분기의 1천4백만 달러와 0.08의 EPS와 비교되었습니다.
2024년 전체 연도에 대해 회사는 순매출 15억 6천7백만 달러를 달성했으며, 2023년 대비 2% 증가했으며, 지속운영 사업으로부터의 순소득은 1억 5천9백만 달러입니다. 주목할 만한 성과로는 2억 7천2백만 달러의 기록적인 자유 현금 흐름, 1억 5천만 달러의 자사주 매입 완료, 그리고 5천7백만 달러의 배당금 지급이 있습니다.
2025년을 바라보며, ZWS는 1분기 동안 저조한 단일 숫자 매출 성장을 예상하고 있으며, 조정 EBITDA 마진은 24.5%에서 25.0% 사이일 것입니다. 2025년 전체 연도 예상에는 2024년과 유사한 매출 성장, 조정 EBITDA 4억 5천만~4억 2천만 달러, 그리고 약 2억 9천만 달러의 예상 자유 현금 흐름이 포함됩니다.
Zurn Elkay Water Solutions (NYSE:ZWS) a publié des résultats solides pour le quatrième trimestre 2024 avec des ventes nettes de 371 millions de dollars, en hausse de 4 % des ventes principales par rapport à l'année précédente. Le bénéfice net au quatrième trimestre des opérations continues a atteint 36 millions de dollars avec un BPA dilué de 0,21 dollar, contre 14 millions de dollars et 0,08 dollar de BPA au quatrième trimestre 2023.
Pour l'année complète 2024, l'entreprise a atteint des ventes nettes de 1 567 millions de dollars, soit une augmentation de 2 % par rapport à 2023, avec un bénéfice net des opérations continues de 159 millions de dollars. Parmi les réalisations notables, on trouve un flux de trésorerie libre record de 272 millions de dollars, complété par des rachats d'actions de 150 millions de dollars et des paiements de dividendes de 57 millions de dollars.
En regardant vers 2025, ZWS prévoit une croissance faible à un chiffre des ventes principales au premier trimestre, avec une marge EBITDA ajustée comprise entre 24,5 % et 25,0 %. Les prévisions pour l'ensemble de l'année 2025 comprennent une croissance des ventes principales similaire à celle de 2024, un EBITDA ajusté de 405 à 420 millions de dollars, et un flux de trésorerie libre projeté d'environ 290 millions de dollars.
Zurn Elkay Water Solutions (NYSE:ZWS) meldete starke Ergebnisse für das vierte Quartal 2024 mit Nettoumsätzen von 371 Millionen Dollar, was einem Anstieg von 4 % im Kernverkauf im Vergleich zum Vorjahr entspricht. Das Nettogewinn aus andauernden Geschäftsbereichen im vierten Quartal belief sich auf 36 Millionen Dollar, mit einem verwässerten EPS von 0,21 Dollar, im Vergleich zu 14 Millionen Dollar und einem EPS von 0,08 Dollar im vierten Quartal 2023.
Für das Gesamtjahr 2024 erzielte das Unternehmen Nettoumsätze von 1.567 Millionen Dollar, ein Anstieg von 2 % im Vergleich zu 2023, mit einem Nettogewinn aus andauernden Geschäftsbereichen von 159 Millionen Dollar. Zu den bemerkenswerten Erfolgen gehören ein Rekord von 272 Millionen Dollar an freiem Cashflow, der Abschluss von Aktienrückkäufen in Höhe von 150 Millionen Dollar und Dividendenzahlungen von 57 Millionen Dollar.
Blickt man auf 2025, erwartet ZWS ein geringes Wachstum im Kernverkauf im ersten Quartal, mit einer bereinigten EBITDA-Marge zwischen 24,5 % und 25,0 %. Die Prognose für das Gesamtjahr 2025 umfasst ein Kernverkaufswachstum ähnlich dem von 2024, ein bereinigtes EBITDA von 405-420 Millionen Dollar und einen projizierten freien Cashflow von etwa 290 Millionen Dollar.
- Q4 net sales increased 4% to $371 million year-over-year
- Q4 net income rose significantly to $36 million from $14 million YoY
- Record free cash flow of $272 million for 2024
- Adjusted EBITDA margin improved to 24.6% from 23.6% in Q4
- Net debt leverage reduced to 0.8x as of December 31, 2024
- Full-year 2024 adjusted EBITDA increased to $390 million from $340 million
- Modest 2% full-year sales growth in 2024
- Challenging end markets noted in certain segments
Insights
Zurn Elkay's Q4 2024 results showcase impressive operational execution and financial discipline. The
The company's cash generation capabilities are particularly noteworthy. The record
Looking ahead, the 2025 guidance suggesting similar core sales growth and adjusted EBITDA of
The water management solutions market continues to demonstrate robust fundamentals, with Zurn Elkay effectively capitalizing on key growth drivers. The company's strategic focus on sustainability and water conservation aligns perfectly with increasing regulatory requirements and growing corporate environmental commitments.
The planned release of their 2024 sustainability report signals a deepening commitment to ESG initiatives, which should resonate well with institutional investors and customers prioritizing environmental stewardship. The company's ability to grow core sales despite selective product exits shows strong underlying demand and effective portfolio management.
Market dynamics favor companies with comprehensive water management solutions and Zurn Elkay's integrated offering positions it advantageously. The emphasis on the Zurn Elkay Business System for operational excellence provides a scalable platform for sustained growth and margin expansion. The company's focus on innovation and customer-centric solutions should continue driving market share gains in both commercial and institutional segments.
Investor call scheduled for Wednesday, February 5, 2025 at 8:30 a.m. Eastern Time
Fourth Quarter Highlights
-
Net sales in the quarter were
$371 million $357 million 4% core sales(1)).
-
Net income from continuing operations was
$36 million $0.21 $14 million $0.08
-
Adjusted EPS(1) was
$0.32 $0.26
-
Adjusted EBITDA(1) was
$91 million 24.6% of net sales) compared with$84 million 23.6% of net sales) in last year's fourth quarter.
- Net debt leverage(1) of 0.8x as of December 31, 2024.
-
Deployed
$20 million
Calendar Year 2024 Highlights
-
Net sales were
$1,567 million 2% from the comparable$1,531 million 3% core sales(1) inclusive of a 100 basis point impact from planned exit of certain residential sink products).
-
Net income from continuing operations was
$159 million $0.91 $104 million $0.59
-
Adjusted EPS(1) was
$1.28 $0.97
-
Adjusted EBITDA(1) was
$390 million 24.9% of net sales) compared with$340 million 22.2% of net sales) in calendar year 2023.
-
Completed
$150 million $57 million
-
Generated record free cash flow(1) of
$272 million
Todd A.
“As we move into 2025, we have confidence in the trajectory of our strategic growth initiatives and will continue to amplify our culture of continuous improvement to deliver on our sustainability initiatives, as our mission remains the same - effective protection, conservation and management of cleaner, safer water. We feel even better positioned to capitalize on any recovery across our end markets while our exceptional free cash flow(1) and strong balance sheet gives us the ability to deploy capital to deliver shareholder value.”
“In the coming weeks, you will see us release our 2024 sustainability report that highlights the progress we continue to make with respect to sustainability inside the company as well as how we help our customers achieve their own goals. We continue to make enhancements to our sustainability program and our pursuit of helping our customers protect the vital resource of clean water has never been stronger. We are excited to continue to build on the momentum we have around sustainability as a means to drive the growth of our company.”
First Quarter and Full Year Outlook
Fourth Quarter 2024 Overview
Net sales were
During the three months ended December 31, 2024, income from operations was
Adjusted EBITDA(1) was
(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 gains and 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 gains or losses. 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 and one of America’s Greenest Companies by Newsweek and one of the World’s Best Companies for Sustainable Growth by TIME, Zurn Elkay Water Solutions is headquartered in
Conference Call Details
Zurn Elkay Water Solutions will hold a conference call and webcast presentation on Wednesday, February 5, 2025, at 8:30 a.m. Eastern Time to discuss its fourth quarter and full year 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 |
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Condensed Consolidated Statements of Operations |
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(in Millions, except share and per share amounts) |
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(Unaudited) |
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|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net sales |
|
$ |
370.7 |
|
|
$ |
356.8 |
|
|
$ |
1,566.5 |
|
|
$ |
1,530.5 |
|
Cost of sales |
|
|
209.5 |
|
|
|
200.9 |
|
|
|
859.5 |
|
|
|
882.4 |
|
Gross profit |
|
|
161.2 |
|
|
|
155.9 |
|
|
|
707.0 |
|
|
|
648.1 |
|
Selling, general and administrative expenses |
|
|
93.3 |
|
|
|
93.6 |
|
|
|
389.8 |
|
|
|
371.3 |
|
Restructuring and other similar charges |
|
|
3.8 |
|
|
|
3.4 |
|
|
|
13.5 |
|
|
|
15.3 |
|
Loss on divestiture of asbestos liabilities and certain assets |
|
|
— |
|
|
|
11.4 |
|
|
|
— |
|
|
|
11.4 |
|
Amortization of intangible assets |
|
|
14.8 |
|
|
|
14.7 |
|
|
|
59.1 |
|
|
|
58.7 |
|
Income from operations |
|
|
49.3 |
|
|
|
32.8 |
|
|
|
244.6 |
|
|
|
191.4 |
|
Non-operating expense: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
(7.5 |
) |
|
|
(8.7 |
) |
|
|
(33.1 |
) |
|
|
(38.5 |
) |
Loss on the extinguishment of debt |
|
|
— |
|
|
|
(0.9 |
) |
|
|
— |
|
|
|
(0.9 |
) |
Actuarial gain on pension and postretirement benefit obligations |
|
|
1.4 |
|
|
|
2.0 |
|
|
|
1.4 |
|
|
|
2.0 |
|
Other expense, net |
|
|
(1.4 |
) |
|
|
(3.9 |
) |
|
|
(5.9 |
) |
|
|
(7.2 |
) |
Income before income taxes |
|
|
41.8 |
|
|
|
21.3 |
|
|
|
207.0 |
|
|
|
146.8 |
|
Provision for income taxes |
|
|
(5.7 |
) |
|
|
(7.8 |
) |
|
|
(48.1 |
) |
|
|
(42.6 |
) |
Net income from continuing operations |
|
|
36.1 |
|
|
|
13.5 |
|
|
|
158.9 |
|
|
|
104.2 |
|
Income from discontinued operations, net of tax |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
1.3 |
|
|
|
8.5 |
|
Net income |
|
$ |
36.4 |
|
|
$ |
13.9 |
|
|
$ |
160.2 |
|
|
$ |
112.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per share: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.21 |
|
|
$ |
0.08 |
|
|
$ |
0.92 |
|
|
$ |
0.60 |
|
Discontinued operations |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
0.05 |
|
Net income |
|
$ |
0.21 |
|
|
$ |
0.08 |
|
|
$ |
0.93 |
|
|
$ |
0.65 |
|
Diluted net income per share: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.21 |
|
|
$ |
0.08 |
|
|
$ |
0.91 |
|
|
$ |
0.59 |
|
Discontinued operations |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
0.05 |
|
Net income |
|
$ |
0.21 |
|
|
$ |
0.08 |
|
|
$ |
0.92 |
|
|
$ |
0.64 |
|
Weighted-average number of shares outstanding (in thousands): |
|
|
|
|
|
|
||||||||||
Basic |
|
|
170,583 |
|
|
|
173,119 |
|
|
|
171,686 |
|
|
|
174,251 |
|
Effect of dilutive equity awards |
|
|
2,277 |
|
|
|
2,738 |
|
|
|
2,973 |
|
|
|
3,008 |
|
Diluted |
|
|
172,860 |
|
|
|
175,857 |
|
|
|
174,659 |
|
|
|
177,259 |
|
Zurn Elkay Water Solutions Corporation and Subsidiaries |
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Reconciliation of GAAP to Non-GAAP Financial Measures |
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Three Months Ended December 31, 2024 |
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(in Millions) (Unaudited) |
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Three Months Ended December 31, 2024 |
|||||||||||||||||||
|
|
Reported
|
|
|
|
Adjustments |
|
|
|
Non-GAAP
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Sales |
|
$ |
370.7 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
370.7 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
|
|
72.4 |
|
|
|
|
|
18.7 |
|
(a) |
|
|
|
91.1 |
|
|
|
|||
Depreciation and amortization |
|
|
(23.1 |
) |
|
|
|
|
2.0 |
|
(d) |
|
|
|
(21.1 |
) |
|
|
|||
Income from operations |
|
|
49.3 |
|
|
|
|
|
20.7 |
|
(b) |
|
|
|
70.0 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
|
41.8 |
|
|
|
|
|
26.8 |
|
(c) |
|
|
|
68.6 |
|
|
|
|||
Provision for income taxes and indicated rate |
|
|
(5.7 |
) |
|
13.6 |
% |
|
|
(6.3 |
) |
|
23.5 |
% |
|
|
(12.0 |
) |
|
17.5 |
% |
Net income from continuing operations |
|
|
36.1 |
|
|
|
|
|
20.5 |
|
|
|
|
|
56.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations, net of tax |
|
|
0.3 |
|
|
|
|
|
(0.3 |
) |
|
|
|
|
— |
|
|
|
|||
Net income |
|
$ |
36.4 |
|
|
|
|
$ |
20.2 |
|
|
|
|
$ |
56.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
EBITDA
|
|
|
|
Income from
|
|
|
|
Income before
|
|
|
|||||||||
Restructuring and other similar charges |
|
$ |
3.8 |
|
|
|
|
$ |
3.8 |
|
|
|
|
$ |
3.8 |
|
|
|
|||
Other, net (1) |
|
|
0.2 |
|
|
|
|
|
0.2 |
|
|
|
|
|
0.2 |
|
|
|
|||
Last-in-first-out inventory adjustments |
|
|
6.0 |
|
|
|
|
|
6.0 |
|
|
|
|
|
6.0 |
|
|
|
|||
Stock-based compensation expense |
|
|
8.7 |
|
|
|
|
|
8.7 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangible assets |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
14.8 |
|
|
|
|||
Actuarial gain on pension and postretirement benefit obligations |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(1.4 |
) |
|
|
|||
Supply chain optimization and footprint repositioning initiatives (2) (d) |
|
|
— |
|
|
|
|
|
2.0 |
|
|
|
|
|
2.0 |
|
|
|
|||
Other expense, net (3) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1.4 |
|
|
|
|||
Total Adjustments |
|
$ |
18.7 |
|
|
|
|
$ |
20.7 |
|
|
|
|
$ |
26.8 |
|
|
|
|||
| ____________________ | ||
(1) |
Other, net includes the gains and losses from the sale of long-lived assets. |
|
(2) |
Represents accelerated depreciation associated with our strategic supply chain optimization and footprint repositioning initiatives. |
|
(3) |
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 |
|||||||||||||||||||||
Twelve Months Ended December 31, 2024 |
|||||||||||||||||||||
(in Millions) (Unaudited) |
|||||||||||||||||||||
|
|
Twelve Months Ended December 31, 2024 |
|||||||||||||||||||
|
|
Reported
|
|
|
|
Adjustments |
|
|
|
Non-GAAP
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Sales |
|
$ |
1,566.5 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
1,566.5 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
|
|
332.9 |
|
|
|
|
|
57.5 |
|
(a) |
|
|
|
390.4 |
|
|
|
|||
Depreciation and amortization |
|
|
(88.3 |
) |
|
|
|
|
2.0 |
|
(d) |
|
|
|
(86.3 |
) |
|
|
|||
Income from operations |
|
|
244.6 |
|
|
|
|
|
59.5 |
|
(b) |
|
|
|
304.1 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
|
207.0 |
|
|
|
|
|
85.2 |
|
(c) |
|
|
|
292.2 |
|
|
|
|||
Provision for income taxes and indicated rate |
|
|
(48.1 |
) |
|
23.2 |
% |
|
|
(20.2 |
) |
|
23.7 |
% |
|
|
(68.3 |
) |
|
23.4 |
% |
Net income from continuing operations |
|
|
158.9 |
|
|
|
|
|
65.0 |
|
|
|
|
|
223.9 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations, net of tax |
|
|
1.3 |
|
|
|
|
|
(1.3 |
) |
|
|
|
|
— |
|
|
|
|||
Net income |
|
$ |
160.2 |
|
|
|
|
$ |
63.7 |
|
|
|
|
$ |
223.9 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
EBITDA
|
|
|
|
Income from
|
|
|
|
Income before
|
|
|
|||||||||
Restructuring and other similar charges |
|
$ |
13.5 |
|
|
|
|
$ |
13.5 |
|
|
|
|
$ |
13.5 |
|
|
|
|||
Other, net (1) |
|
|
0.6 |
|
|
|
|
|
0.6 |
|
|
|
|
|
0.6 |
|
|
|
|||
Last-in-first-out inventory adjustments |
|
|
5.5 |
|
|
|
|
|
5.5 |
|
|
|
|
|
5.5 |
|
|
|
|||
Stock-based compensation expense |
|
|
37.9 |
|
|
|
|
|
37.9 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangible assets |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
59.1 |
|
|
|
|||
Actuarial gain on pension and postretirement benefit obligations |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(1.4 |
) |
|
|
|||
Supply chain optimization and footprint repositioning initiatives (2) (d) |
|
|
— |
|
|
|
|
|
2.0 |
|
|
|
|
|
2.0 |
|
|
|
|||
Other expense, net (3) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5.9 |
|
|
|
|||
Total Adjustments |
|
$ |
57.5 |
|
|
|
|
$ |
59.5 |
|
|
|
|
$ |
85.2 |
|
|
|
|||
____________________ |
||
| (1) | Other, net includes the gains and losses from the sale of long-lived assets. |
|
| (2) | Represents accelerated depreciation associated with our strategic supply chain optimization and footprint repositioning initiatives. |
|
| (3) | 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 December 31, 2023 |
|||||||||||||||||||||
(in Millions) (Unaudited) |
|||||||||||||||||||||
|
|
Three Months Ended December 31, 2023 |
|||||||||||||||||||
|
|
Reported
|
|
|
|
Adjustments |
|
|
|
Non-GAAP
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Sales |
|
$ |
356.8 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
356.8 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
|
|
54.4 |
|
|
|
|
|
29.7 |
|
(a) |
|
|
|
84.1 |
|
|
|
|||
Depreciation and amortization |
|
|
(21.6 |
) |
|
|
|
|
— |
|
|
|
|
|
(21.6 |
) |
|
|
|||
Income from operations |
|
|
32.8 |
|
|
|
|
|
29.7 |
|
(b) |
|
|
|
62.5 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
|
21.3 |
|
|
|
|
|
37.7 |
|
(c) |
|
|
|
59.0 |
|
|
|
|||
Provision for income taxes and indicated rate |
|
|
(7.8 |
) |
|
36.6 |
% |
|
|
(5.8 |
) |
|
15.4 |
% |
|
|
(13.6 |
) |
|
23.1 |
% |
Net income from continuing operations |
|
|
13.5 |
|
|
|
|
|
31.9 |
|
|
|
|
|
45.4 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations, net of tax |
|
|
0.4 |
|
|
|
|
|
(0.4 |
) |
|
|
|
|
— |
|
|
|
|||
Net income |
|
$ |
13.9 |
|
|
|
|
$ |
31.5 |
|
|
|
|
$ |
45.4 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
EBITDA
|
|
|
|
Income from
|
|
|
|
Income before
|
|
|
|||||||||
Restructuring and other similar charges |
|
$ |
3.4 |
|
|
|
|
$ |
3.4 |
|
|
|
|
$ |
3.4 |
|
|
|
|||
Last-in-first-out inventory adjustments |
|
|
5.4 |
|
|
|
|
|
5.4 |
|
|
|
|
|
5.4 |
|
|
|
|||
Stock-based compensation expense |
|
|
9.5 |
|
|
|
|
|
9.5 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangible assets |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
14.7 |
|
|
|
|||
Actuarial gain on pension and postretirement benefit obligations |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(2.0 |
) |
|
|
|||
Loss on the extinguishment of debt |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.9 |
|
|
|
|||
Loss on divestiture of asbestos liabilities and certain assets |
|
|
11.4 |
|
|
|
|
|
11.4 |
|
|
|
|
|
11.4 |
|
|
|
|||
Other expense, net (1) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3.9 |
|
|
|
|||
Total Adjustments |
|
$ |
29.7 |
|
|
|
|
$ |
29.7 |
|
|
|
|
$ |
37.7 |
|
|
|
|||
____________________ |
||
| (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 |
|||||||||||||||||||||
Twelve Months Ended December 31, 2023 |
|||||||||||||||||||||
(in Millions) (Unaudited) |
|||||||||||||||||||||
|
|
Twelve Months Ended December 31, 2023 |
|||||||||||||||||||
|
|
Reported
|
|
|
|
Adjustments |
|
|
|
Non-GAAP
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Sales |
|
$ |
1,530.5 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
1,530.5 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
|
|
279.3 |
|
|
|
|
|
60.2 |
|
(a) |
|
|
|
339.5 |
|
|
|
|||
Depreciation and amortization |
|
|
(87.9 |
) |
|
|
|
|
— |
|
|
|
|
|
(87.9 |
) |
|
|
|||
Income from operations |
|
|
191.4 |
|
|
|
|
|
60.2 |
|
(b) |
|
|
|
251.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
|
146.8 |
|
|
|
|
|
85.0 |
|
(c) |
|
|
|
231.8 |
|
|
|
|||
Provision for income taxes and indicated rate |
|
|
(42.6 |
) |
|
29.0 |
% |
|
|
(17.1 |
) |
|
20.1 |
% |
|
|
(59.7 |
) |
|
25.8 |
% |
Net income from continuing operations |
|
|
104.2 |
|
|
|
|
|
67.9 |
|
|
|
|
|
172.1 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations, net of tax |
|
|
8.5 |
|
|
|
|
|
(8.5 |
) |
|
|
|
|
— |
|
|
|
|||
Net income |
|
$ |
112.7 |
|
|
|
|
$ |
59.4 |
|
|
|
|
$ |
172.1 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
EBITDA
|
|
|
|
Income from
|
|
|
|
Income before
|
|
|
|||||||||
Restructuring and other similar charges |
|
$ |
15.3 |
|
|
|
|
$ |
15.3 |
|
|
|
|
$ |
15.3 |
|
|
|
|||
Last-in-first-out inventory adjustments |
|
|
(6.5 |
) |
|
|
|
|
(6.5 |
) |
|
|
|
|
(6.5 |
) |
|
|
|||
Stock-based compensation expense |
|
|
40.0 |
|
|
|
|
|
40.0 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangible assets |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
58.7 |
|
|
|
|||
Actuarial gain on pension and postretirement benefit obligations |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(2.0 |
) |
|
|
|||
Loss on the extinguishment of debt |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.9 |
|
|
|
|||
Loss on divestiture of asbestos liabilities and certain assets |
|
|
11.4 |
|
|
|
|
|
11.4 |
|
|
|
|
|
11.4 |
|
|
|
|||
Other expense, net (1) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
7.2 |
|
|
|
|||
Total Adjustments |
|
$ |
60.2 |
|
|
|
|
$ |
60.2 |
|
|
|
|
$ |
85.0 |
|
|
|
|||
____________________ |
||
| (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 Twelve Months Ended December 31, 2024 and December 31, 2023 |
||||||||||||||||
(in Millions, except share and per share amounts) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
Adjusted EBITDA |
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net income |
|
$ |
36.4 |
|
|
$ |
13.9 |
|
|
$ |
160.2 |
|
|
$ |
112.7 |
|
Income from discontinued operations, net of tax |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(1.3 |
) |
|
|
(8.5 |
) |
Provision for income taxes |
|
|
5.7 |
|
|
|
7.8 |
|
|
|
48.1 |
|
|
|
42.6 |
|
Actuarial gain on pension and postretirement benefit obligations |
|
|
(1.4 |
) |
|
|
(2.0 |
) |
|
|
(1.4 |
) |
|
|
(2.0 |
) |
Other expense, net (1) |
|
|
1.4 |
|
|
|
3.9 |
|
|
|
5.9 |
|
|
|
7.2 |
|
Loss on the extinguishment of debt |
|
|
— |
|
|
|
0.9 |
|
|
|
— |
|
|
|
0.9 |
|
Interest expense, net |
|
|
7.5 |
|
|
|
8.7 |
|
|
|
33.1 |
|
|
|
38.5 |
|
Income from operations |
|
$ |
49.3 |
|
|
$ |
32.8 |
|
|
$ |
244.6 |
|
|
$ |
191.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
$ |
23.1 |
|
|
$ |
21.6 |
|
|
$ |
88.3 |
|
|
$ |
87.9 |
|
Restructuring and other similar charges |
|
|
3.8 |
|
|
|
3.4 |
|
|
|
13.5 |
|
|
|
15.3 |
|
Stock-based compensation expense |
|
|
8.7 |
|
|
|
9.5 |
|
|
|
37.9 |
|
|
|
40.0 |
|
Last-in first-out inventory adjustment |
|
|
6.0 |
|
|
|
5.4 |
|
|
|
5.5 |
|
|
|
(6.5 |
) |
Loss on divestiture of asbestos liabilities and certain assets |
|
|
— |
|
|
|
11.4 |
|
|
|
— |
|
|
|
11.4 |
|
Other, net (2) |
|
|
0.2 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
Subtotal of adjustments |
|
|
41.8 |
|
|
|
51.3 |
|
|
|
145.8 |
|
|
|
148.1 |
|
Adjusted EBITDA |
|
$ |
91.1 |
|
|
$ |
84.1 |
|
|
$ |
390.4 |
|
|
$ |
339.5 |
|
____________________ |
||
(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. |
|
(2) |
Other, net includes the gains and losses from the sale of long-lived assets. |
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
Adjusted Net Income and Earnings Per Share |
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|||||||||
Net income |
$ |
36.4 |
|
|
$ |
13.9 |
|
|
$ |
160.2 |
|
|
$ |
112.7 |
|
|
Income from discontinued operations, net of tax |
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(1.3 |
) |
|
|
(8.5 |
) |
|
Loss on the extinguishment of debt |
|
— |
|
|
|
0.9 |
|
|
|
— |
|
|
|
0.9 |
|
|
Amortization of intangible assets |
|
14.8 |
|
|
|
14.7 |
|
|
|
59.1 |
|
|
|
58.7 |
|
|
Restructuring and other similar charges |
|
3.8 |
|
|
|
3.4 |
|
|
|
13.5 |
|
|
|
15.3 |
|
|
Supply chain optimization and footprint repositioning initiatives |
|
2.0 |
|
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
Last-in first-out inventory adjustment |
|
6.0 |
|
|
|
5.4 |
|
|
|
5.5 |
|
|
|
(6.5 |
) |
|
Actuarial gain on pension and postretirement benefit obligations |
|
(1.4 |
) |
|
|
(2.0 |
) |
|
|
(1.4 |
) |
|
|
(2.0 |
) |
|
Other expense, net (1) |
|
1.4 |
|
|
|
3.9 |
|
|
|
5.9 |
|
|
|
7.2 |
|
|
Other, net (2) |
|
0.2 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
Loss on divestiture of asbestos liabilities and certain assets |
|
— |
|
|
|
11.4 |
|
|
|
— |
|
|
|
11.4 |
|
|
Tax effect on above items |
|
(6.3 |
) |
|
|
(5.8 |
) |
|
|
(20.2 |
) |
|
|
(17.1 |
) |
|
Adjusted net income |
$ |
56.6 |
|
|
$ |
45.4 |
|
|
$ |
223.9 |
|
|
$ |
172.1 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP diluted net income per share from continuing operations |
$ |
0.21 |
|
|
$ |
0.08 |
|
|
$ |
0.91 |
|
|
$ |
0.59 |
|
|
Adjusted earnings per share - diluted |
$ |
0.32 |
|
|
$ |
0.26 |
|
|
$ |
1.28 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average number of shares outstanding (in thousands): |
|
|
|
|
|
|
|
|||||||||
GAAP basic weighted-average shares |
|
170,583 |
|
|
|
173,119 |
|
|
|
171,686 |
|
|
|
174,251 |
|
|
Effect of dilutive equity awards |
|
2,277 |
|
|
|
2,738 |
|
|
|
2,973 |
|
|
|
3,008 |
|
|
Adjusted diluted weighted-average shares |
|
172,860 |
|
|
|
175,857 |
|
|
|
174,659 |
|
|
|
177,259 |
|
|
____________________ |
||
| (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. |
|
| (2) | Other, net includes the gains and losses from the sale of long-lived assets. |
|
|
|
Twelve Months Ended |
||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
Cash provided by operating activities |
|
$ |
293.5 |
|
|
$ |
253.9 |
|
Expenditures for property, plant and equipment |
|
|
(21.8 |
) |
|
|
(21.3 |
) |
Free cash flow |
|
$ |
271.7 |
|
|
$ |
232.6 |
|
Zurn Elkay Water Solutions Corporation and Subsidiaries |
||||||||||||||
Condensed Consolidated Statements of Comprehensive Income |
||||||||||||||
(in Millions) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||
Net income |
|
$ |
36.4 |
|
|
$ |
13.9 |
|
$ |
160.2 |
|
|
$ |
112.7 |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments |
|
|
(6.6 |
) |
|
|
2.2 |
|
|
(10.0 |
) |
|
|
3.6 |
Change in pension and postretirement defined benefit plans, net of tax |
|
|
3.3 |
|
|
|
3.7 |
|
|
3.3 |
|
|
|
3.7 |
Other comprehensive income (loss), net of tax |
|
|
(3.3 |
) |
|
|
5.9 |
|
|
(6.7 |
) |
|
|
7.3 |
Total comprehensive income |
|
$ |
33.1 |
|
|
$ |
19.8 |
|
$ |
153.5 |
|
|
$ |
120.0 |
Zurn Elkay Water Solutions Corporation and Subsidiaries |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in Millions, except share amounts) |
||||||||
|
|
(Unaudited) |
|
|
||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
198.0 |
|
|
$ |
136.7 |
|
Receivables, net |
|
|
202.2 |
|
|
|
210.2 |
|
Inventories, net |
|
|
272.6 |
|
|
|
277.6 |
|
Income taxes receivable |
|
|
19.6 |
|
|
|
17.0 |
|
Other current assets |
|
|
29.7 |
|
|
|
26.3 |
|
Total current assets |
|
|
722.1 |
|
|
|
667.8 |
|
Property, plant and equipment, net |
|
|
164.0 |
|
|
|
180.3 |
|
Intangible assets, net |
|
|
891.6 |
|
|
|
952.4 |
|
Goodwill |
|
|
794.2 |
|
|
|
796.0 |
|
Other assets |
|
|
76.6 |
|
|
|
70.5 |
|
Total assets |
|
$ |
2,648.5 |
|
|
$ |
2,667.0 |
|
Liabilities and stockholders' equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current maturities of debt |
|
$ |
0.8 |
|
|
$ |
0.9 |
|
Trade payables |
|
|
71.7 |
|
|
|
56.4 |
|
Compensation and benefits |
|
|
37.9 |
|
|
|
30.5 |
|
Current portion of pension and postretirement benefit obligations |
|
|
1.2 |
|
|
|
1.3 |
|
Other current liabilities |
|
|
136.2 |
|
|
|
131.8 |
|
Total current liabilities |
|
|
247.8 |
|
|
|
220.9 |
|
|
|
|
|
|
||||
Long-term debt |
|
|
494.8 |
|
|
|
494.4 |
|
Pension and postretirement benefit obligations |
|
|
14.1 |
|
|
|
36.6 |
|
Deferred income taxes |
|
|
196.5 |
|
|
|
210.0 |
|
Operating lease liability |
|
|
43.3 |
|
|
|
37.3 |
|
Other liabilities |
|
|
65.2 |
|
|
|
65.0 |
|
Total liabilities |
|
|
1,061.7 |
|
|
|
1,064.2 |
|
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Common stock, |
|
|
1.7 |
|
|
|
1.7 |
|
Additional paid-in capital |
|
|
2,828.2 |
|
|
|
2,847.0 |
|
Retained deficit |
|
|
(1,168.7 |
) |
|
|
(1,178.2 |
) |
Accumulated other comprehensive loss |
|
|
(74.4 |
) |
|
|
(67.7 |
) |
Total stockholders' equity |
|
|
1,586.8 |
|
|
|
1,602.8 |
|
Total liabilities and stockholders' equity |
|
$ |
2,648.5 |
|
|
$ |
2,667.0 |
|
Zurn Elkay Water Solutions Corporation and Subsidiaries |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in Millions) |
||||||||
(Unaudited) |
||||||||
|
|
Twelve Months Ended |
||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
Operating activities |
|
|
|
|
||||
Net income |
|
$ |
160.2 |
|
|
$ |
112.7 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
29.2 |
|
|
|
29.2 |
|
Amortization of intangible assets |
|
|
59.1 |
|
|
|
58.7 |
|
Non-cash restructuring charges |
|
|
8.0 |
|
|
|
2.5 |
|
Loss on divestiture of asbestos liabilities and certain assets |
|
|
— |
|
|
|
9.3 |
|
Divestiture of asbestos liabilities and certain assets |
|
|
— |
|
|
|
(13.0 |
) |
Loss (gain) on dispositions of long-lived assets |
|
|
0.6 |
|
|
|
(2.7 |
) |
Deferred income taxes |
|
|
(14.8 |
) |
|
|
(4.2 |
) |
Other non-cash expenses |
|
|
5.1 |
|
|
|
1.9 |
|
Actuarial gain on pension and other postretirement benefit obligations |
|
|
(1.4 |
) |
|
|
(2.0 |
) |
Loss on the extinguishment of debt |
|
|
— |
|
|
|
0.9 |
|
Stock-based compensation expense |
|
|
37.9 |
|
|
|
40.0 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Receivables, net |
|
|
6.3 |
|
|
|
10.1 |
|
Inventories, net |
|
|
2.7 |
|
|
|
65.0 |
|
Other assets |
|
|
1.4 |
|
|
|
2.5 |
|
Accounts payable |
|
|
15.8 |
|
|
|
(60.8 |
) |
Accruals and other |
|
|
(16.6 |
) |
|
|
3.8 |
|
Cash provided by operating activities |
|
|
293.5 |
|
|
|
253.9 |
|
|
|
|
|
|
||||
Investing activities |
|
|
|
|
||||
Expenditures for property, plant and equipment |
|
|
(21.8 |
) |
|
|
(21.3 |
) |
Proceeds from dispositions of long-lived assets |
|
|
1.6 |
|
|
|
7.7 |
|
Proceeds from insurance claims |
|
|
— |
|
|
|
9.0 |
|
Cash used for investing activities |
|
|
(20.2 |
) |
|
|
(4.6 |
) |
|
|
|
|
|
||||
Financing activities |
|
|
|
|
||||
Proceeds from borrowings of debt |
|
|
— |
|
|
|
13.0 |
|
Repayments of debt |
|
|
(0.8 |
) |
|
|
(77.9 |
) |
Proceeds from exercise of stock options and ESPP contributions |
|
|
8.7 |
|
|
|
4.3 |
|
Taxes withheld and paid on employees' share-based payment awards |
|
|
(8.6 |
) |
|
|
(3.1 |
) |
Repurchase of common stock |
|
|
(150.2 |
) |
|
|
(125.1 |
) |
Payment of common stock dividends |
|
|
(56.6 |
) |
|
|
(50.4 |
) |
Cash used for financing activities |
|
|
(207.5 |
) |
|
|
(239.2 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(4.5 |
) |
|
|
1.8 |
|
Increase in cash, cash equivalents and restricted cash |
|
|
61.3 |
|
|
|
11.9 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
136.7 |
|
|
|
124.8 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
198.0 |
|
|
$ |
136.7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204597929/en/
Dave Pauli
Chief Financial Officer
414.223.7770
Source: Zurn Elkay Water Solutions Corporation
FAQ
What were Zurn Elkay's (ZWS) Q4 2024 earnings per share?
How much free cash flow did ZWS generate in 2024?
What is ZWS's revenue guidance for 2025?
How much did Zurn Elkay spend on share repurchases in 2024?
What is ZWS's adjusted EBITDA guidance for 2025?
