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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 29, 2024

FRANKLIN ELECTRIC CO., INC.
(Exact name of registrant as specified in its charter)
Indiana 0-362 35-0827455
(State of incorporation) (Commission File Number) (IRS employer identification no.)
9255 Coverdale Road
Fort Wayne,Indiana46809
(Address of principal executive offices)(Zip code)

(260) 824-2900
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.10 par valueFELENASDAQGlobal Select Market
(Title of each class)(Trading symbol)(Name of each exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On October 29, 2024, Franklin Electric Co., Inc. issued a press release announcing its earnings for the third quarter of 2024. A copy of the release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits:
Exhibit NumberDescription
99.1
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from this Current Report on Form 8-K, formatted as Inline XBRL



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN ELECTRIC CO., INC.
(Registrant)
Date: October 29, 2024
By/s/ Jeffery L. Taylor
Jeffery L. Taylor
Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)




Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE DISTRIBUTION


FRANKLIN ELECTRIC REPORTS THIRD QUARTER 2024 RESULTS

Third Quarter 2024 Highlights
•Consolidated net sales of $531.4 million, a decrease of 1% to the prior year
•Water Systems and Distribution net sales increased 2% and 1%, respectively, while Fueling Systems net sales decreased 10%
•Operating income was $73.5 million with operating margin of 13.8%
•GAAP fully diluted earnings per share (EPS) was $1.17

Fort Wayne, IN – October 29, 2024 – Franklin Electric Co., Inc. today announced its third quarter financial results for fiscal year 2024.

Third quarter 2024 net sales were $531.4 million, compared to third quarter 2023 net sales of $538.4 million. Third quarter 2024 operating income was $73.5 million, compared to third quarter 2023 operating income of $78.1 million. Third quarter 2024 EPS was $1.17, versus EPS in the third quarter 2023 of $1.23.

“Our third quarter results were softer than expected due to continued macro pressure from lower home sales and starts, along with weather being wetter than normal. However, the demand environment remains healthy across our key end markets, which has normalized following record levels of sales in recent years. Margins remained stable due to our disciplined cost management, and we are actively pursuing opportunities to further reduce expenses across the enterprise,” commented Joe Ruzynski, Franklin Electric’s CEO.

“As we close out the year, we expect tempered order activity in-line with seasonal patterns. That said, having spent time with our incredible global team members over the past few months, I am energized by the potential of Franklin Electric. With our wide range of capabilities, strategic footprint, and flexible balance sheet, we have the ability to drive differentiated growth and accelerate productivity for years to come,” concluded Mr. Ruzynski.

Segment Summaries

Water Systems net sales were $302.2 million, a new third quarter record, an increase of $6.4 million or 2 percent compared to the third quarter 2023. The sales increase was driven by higher sales of groundwater products, all other surface products and water treatment products. The sales increase was partially offset by lower sales of large dewatering pumps, which had a record quarter last year. Water Systems operating income in the third quarter 2024 was $52.8 million, a new third quarter record. Third quarter 2023 Water Systems operating income was $52.7 million.

Distribution net sales were $190.8 million, an increase of $1.6 million or 1 percent compared to the third quarter 2023. Sales increases were driven by sales from a recent acquisition. The Distribution segment operating income in the third quarter 2024 was $12.2 million. Third quarter 2023 Distribution operating income was $10.7 million.





Fueling Systems net sales were $69.7 million in the third quarter 2024, a decrease of $8.0 million or 10 percent compared to the third quarter 2023. Sales decreases were driven by lower volumes. Fueling Systems operating income in the third quarter 2024 was $24.1 million. Third quarter 2023 Fueling Systems operating income was $25.8 million.

2024 Guidance

The Company is lowering its sales guidance for full year 2024 to be approximately $2.00 billion and reducing its EPS guidance for full year 2024 to be in the range of $3.75 to $3.85 which incorporates the Company’s first nine months performance and its outlook for the fourth quarter.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The third quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

https://edge.media-server.com/mmc/p/cp5pmtx9

For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.

https://register.vevent.com/register/BIa5e3e952cc2d47c28144fef8683c97e0

All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A replay of the conference call will be available from Tuesday, October 29, 2024, through 9:00 am ET on Tuesday, November 5, 2024, by visiting the listen-only webcast link above.

Forward Looking Statements

"Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.






About Franklin Electric

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2023 and America’s Climate Leaders 2023 by USA Today.

Franklin Electric Contact:

Jeffery L. Taylor
Franklin Electric Co., Inc.
InvestorRelations@fele.com


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Third Quarter EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Net sales$531,438 $538,431 $1,535,596 $1,592,163 
Cost of sales341,775 352,178 982,556 1,055,164 
Gross profit189,663 186,253 553,040 536,999 
Selling, general, and administrative expenses115,998 107,687 352,290 324,651 
Restructuring expense139 462 139 735 
Operating income73,526 78,104 200,611 211,613 
Interest expense(1,556)(2,984)(4,980)(10,309)
Other (expense) income, net(181)277 709 1,865 
Foreign exchange income (expense), net88 (2,483)(5,228)(8,098)
Income before income taxes71,877 72,914 191,112 195,071 
Income tax expense16,983 14,746 43,795 39,167 
Net income$54,894 $58,168 $147,317 $155,904 
Less: Net income attributable to noncontrolling interests(298)(370)(663)(1,181)
Net income attributable to Franklin Electric Co., Inc.$54,596 $57,798 $146,654 $154,723 
Earnings per share:
Basic$1.19 $1.25 $3.18 $3.34 
Diluted$1.17 $1.23 $3.14 $3.29 



FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, 2024December 31, 2023
ASSETS
Cash and cash equivalents$106,273 $84,963 
Receivables (net)272,003 222,418 
Inventories524,647 508,696 
Other current assets39,560 37,718 
Total current assets942,483 853,795 
Property, plant, and equipment, net226,072 229,739 
Lease right-of-use assets, net62,694 57,014 
Goodwill and other assets575,994 587,574 
Total assets$1,807,243 $1,728,122 
LIABILITIES AND EQUITY
Accounts payable$173,935 $152,419 
Accrued expenses and other current liabilities124,865 104,949 
Current lease liability17,963 17,316 
Current maturities of long-term debt and short-term borrowings76,402 12,355 
Total current liabilities393,165 287,039 
Long-term debt11,581 88,056 
Long-term lease liability43,484 38,549 
Income taxes payable non-current— 4,837 
Deferred income taxes31,128 29,461 
Employee benefit plans30,781 35,973 
Other long-term liabilities23,219 33,914 
Redeemable noncontrolling interest1,179 1,145 
Total equity1,272,706 1,209,148 
Total liabilities and equity$1,807,243 $1,728,122 



FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
(In thousands)
September 30, 2024September 30, 2023
Cash flows from operating activities:
Net income$147,317 $155,904 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization41,825 39,582 
Non-cash lease expense15,223 12,664 
Share-based compensation10,127 8,449 
Other5,178 10,894 
Changes in assets and liabilities:
Receivables(51,440)(20,427)
Inventory(18,760)2,537 
Accounts payable and accrued expenses17,218 4,376 
Operating leases(15,700)(12,847)
Income taxes-U.S. Tax Cuts and Jobs Act(3,870)(2,902)
Other3,968 399 
Net cash flows from operating activities151,086 198,629 
Cash flows from investing activities:
Additions to property, plant, and equipment(28,897)(30,155)
Proceeds from sale of property, plant, and equipment704 — 
Acquisitions and investments(1,151)(6,641)
Other investing activities37 26 
Net cash flows from investing activities(29,307)(36,770)
Cash flows from financing activities:
Net change in debt(12,477)(87,653)
Proceeds from issuance of common stock5,269 9,010 
Purchases of common stock(56,989)(29,888)
Dividends paid(35,442)(31,315)
Deferred payments for acquisitions(348)(448)
Net cash flows from financing activities(99,987)(140,294)
Effect of exchange rate changes on cash and cash equivalents(482)(4,848)
Net change in cash and cash equivalents21,310 16,717 
Cash and cash equivalents at beginning of period84,963 45,790 
Cash and cash equivalents at end of period$106,273 $62,507 






Key Performance Indicators: Net Sales Summary

Net Sales
(in millions)United States & CanadaLatin AmericaEurope, Middle East & AfricaAsia PacificTotal WaterFuelingDistributionOther/ElimsConsolidated
Q3 2023$182.0 $45.5 $48.7 $19.6 $295.8 $77.7 $189.2 $(24.3)$538.4 
Q3 2024$183.6 $43.5 $53.4 $21.7 $302.2 $69.7 $190.8 $(31.3)$531.4 
Change$1.6 $(2.0)$4.7 $2.1 $6.4 $(8.0)$1.6 $(7.0)$(7.0)
% Change1 %(4)%10 %11 %2 %(10)%1 %(1)%
Foreign currency translation, net*$(0.3)$(4.4)$(0.3)$— $(5.0)$0.1 $— $(4.9)
% Change— %(10)%(1)%— %(2)%— %— %(1)%
Acquisitions$4.5 $— $— $— $4.5 $— $4.7 $9.2 
% Change2 %— %— %— %2 %— %2 %2 %
Volume/Price$(2.6)$2.4 $5.0 $2.1 $6.9 $(8.1)$(3.1)$(7.0)$(11.3)
% Change(1)%5 %10 %11 %2 %(10)%(2)%29 %(2)%

*The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey hyperinflationary economies within the foreign currency translation, net row above.

Key Performance Indicators: Operating Income and Margin Summary

Operating Income and Margins
(in millions)
For the Third Quarter 2024
WaterFuelingDistributionOther/ElimsConsolidated
Operating Income/(Loss)$52.8 $24.1 $12.2 $(15.6)$73.5 
% Operating Income To Net Sales17.5 %34.6 %6.4 %13.8 %
Operating Income and Margins
(in millions)
For the Third Quarter 2023
WaterFuelingDistributionOther/ElimsConsolidated
Operating Income/(Loss)$52.7 $25.8 $10.7 $(11.1)$78.1 
% Operating Income To Net Sales17.8 %33.2 %5.7 %14.5 %

v3.24.3
Cover
Oct. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 29, 2024
Entity Registrant Name FRANKLIN ELECTRIC CO., INC.
Entity Incorporation, State or Country Code IN
Entity File Number 0-362
Entity Tax Identification Number 35-0827455
Entity Address, Address Line One 9255 Coverdale Road
Entity Address, City or Town Fort Wayne,
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46809
City Area Code 260
Local Phone Number 824-2900
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol FELE
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000038725
Amendment Flag false
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