Investor call scheduled for Wednesday, February 5, 2025 at 8:30
a.m. Eastern Time
Zurn Elkay Water Solutions Corporation (NYSE:ZWS)
Fourth Quarter
Highlights
- Net sales in the quarter were $371 million compared with $357
million in last year’s December quarter (+4% core sales(1)).
- Net income from continuing operations was $36 million (diluted
EPS from continuing operations of $0.21) compared with net income
from continuing operations of $14 million (diluted EPS from
continuing operations of $0.08) in the year-ago quarter.
- Adjusted EPS(1) was $0.32 compared with $0.26 in the year-ago
quarter.
- 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 to repurchase 0.5 million shares of common
stock in the quarter.
Calendar Year 2024
Highlights
- Net sales were $1,567 million and increased by 2% from the
comparable $1,531 million in calendar year 2023 (+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 (diluted
EPS from continuing operations of $0.91), compared with $104
million (diluted EPS from continuing operations of $0.59) in
calendar year 2023.
- Adjusted EPS(1) was $1.28, compared with $0.97 in the prior
calendar year.
- 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 of common stock repurchases and paid $57
million in common stock dividends.
- Generated record free cash flow(1) of $272 million.
Todd A. Adams, Chairman and Chief Executive Officer, commented,
“2024 was another year of solid execution for us as we delivered
record sales, EBITDA and cash flow performance while repurchasing
$150 million of our shares and increasing our dividend 12.5% year
over year. Despite pockets of challenging end markets, we achieved
4% pro forma core sales(1) growth, improved our adjusted EBITDA(1)
margins by 270 basis points and made significant strides in the
deployment of our strategies to deliver even better growth in the
coming years. Our team's belief in and relentless deployment of the
Zurn Elkay Business System positions us to continue to deliver
above market growth and continued superior financial performance in
2025.”
Adams continued, “As it relates to the fourth quarter, we
delivered a solid quarter as sales, margins and cash flow exceeded
the guidance we provided 90 days ago. Core sales(1) grew by 4%,
adjusted EBITDA(1) margins expanded 100 basis points over last year
and free cash flow(1) was $55 million in the quarter.”
“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
Adams continued, “Based on current demand trends, we believe
core sales(1) growth for the first quarter will be up low single
digits and adjusted EBITDA(1) margin will be between 24.5% and
25.0%. For the full year 2025, we anticipate core sales(1) growth
similar to 2024, adjusted EBITDA(1) of $405 million to $420 million
and expect our full year free cash flow(1) to be approximately $290
million.”
Fourth Quarter 2024
Overview
Net sales were $370.7 million and $356.8 million during the
three months ended December 31, 2024 and December 31, 2023,
respectively, an increase of 4% year over year. The increase in net
sales was the result of core sales(1) growth of 4%, including
growth in nearly all product categories.
During the three months ended December 31, 2024, income from
operations was $49.3 million compared to $32.8 million during the
three months ended December 31, 2023. Income from operations as a
percentage of net sales increased by 410 basis points year over
year due to the benefits resulting from productivity synergies and
restructuring actions related to the Elkay Merger. The prior year
also included a loss of $11.4 million on divestiture of asbestos
liabilities and certain assets.
Adjusted EBITDA(1) was $91.1 million, or 24.6% of net sales,
during the three months ended December 31, 2024 compared to $84.1
million, or 23.6% of net sales, during the three months ended
December 31, 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 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 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. Learn more
at www.zurnelkay.com.
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
Condensed Consolidated
Statements of Operations
(in Millions, except share and
per share amounts)
(Unaudited)
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
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended December
31, 2024
(in Millions)
(Unaudited)
Three Months Ended December
31, 2024
Reported Results
Adjustments
Non-GAAP Results
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 Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
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 Results
Adjustments
Non-GAAP Results
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 Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
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 Results
Adjustments
Non-GAAP Results
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 Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
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 Results
Adjustments
Non-GAAP Results
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 Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
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, $0.01 par value; 200,000,000
shares authorized; shares issued and outstanding: 170,308,023 at
December 31, 2024 and 172,262,163 at December 31, 2023
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
Zurn Elkay Water Solutions (NYSE:ZWS)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
Zurn Elkay Water Solutions (NYSE:ZWS)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
