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Mar 31, 2020
Franklin Electric Q1 2020 Earnings Report
Franklin Electric's first quarter results exceeded expectations despite a decrease in manufacturing revenue, driven by improved mix, margins, and reduced operating expenses.
Key Takeaways
Franklin Electric reported a decrease in sales but an increase in operating income and earnings per share for the first quarter of 2020. The company's balance sheet remains strong, and they are confident in their ability to navigate the challenges posed by the Global Pandemic.
First quarter sales were $266.8 million, compared to $290.7 million in the first quarter 2019.
GAAP fully diluted earnings per share (EPS) of $0.23, versus a GAAP fully diluted EPS in the first quarter 2019 of $0.19.
Operating income before restructuring expense was up 11 percent on 8 percent lower sales.
Earnings per share before restructuring expenses increased 14 percent versus the first quarter 2019.
Franklin Electric
Franklin Electric
Franklin Electric Revenue by Segment
Franklin Electric Revenue by Geographic Location
Revenue by Segment
Water Systems Revenue
CapyFin.comDistribution Revenue
CapyFin.comRevenue by Geographic Location
United States & Canada Revenue
CapyFin.comLatin America Revenue
CapyFin.comEurope, Middle East & Africa Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Due to the uncertainty caused by the Global Pandemic, Franklin Electric is withdrawing its 2020 financial guidance and will revisit the subject after the second quarter.
Positive Outlook
- Company's ability to serve customers.
- Company's ability to meet marketplace demands.
- People are the greatest strength.
- Franklin Electric is a great company.
- Company’s products and services are generally viewed as essential.
Challenges Ahead
- Reduction of large dewatering equipment sales in the Water Systems segment.
- Water Systems customers “de-stocking” their inventory, particularly in the U.S. and Canada plumbing channel.
- Deferral or cancellation of the construction of new filling stations in the Fueling Systems segment in the U.S and Canada.
- Strengthening of the U.S. dollar versus most international currencies will result in lower translations of both Net Sales and earnings from many of the Company’s businesses outside the U.S.
- Lost operational efficiencies, de-leveraging of the manufacturing fixed costs base due to lower manufactured volumes, and the potential for higher bad debt expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income