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Franklin Electric
🇺🇸 NASDAQ:FELE
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•
Jun 30, 2020

Franklin Electric Q2 2020 Earnings Report

Franklin Electric's second quarter results were impacted negatively by the effects of the Global Pandemic, but they exceeded revised expectations.

Key Takeaways

Franklin Electric reported a decrease in sales and earnings per share for the second quarter of 2020 compared to the same period in 2019. However, the results exceeded revised expectations, with solid performance in the Water and Distribution businesses.

Second quarter sales were $308.3 million, compared to $355.3 million in 2019.

GAAP fully diluted earnings per share (EPS) of $0.52, versus $0.70 in the second quarter 2019.

Distribution revenues grew by 6 percent and earnings grew by over 40 percent versus the 2019 second quarter.

Year to date free cash flow as a percent of net income was 106 percent compared to a negative 13 percent at the end of the second quarter 2019.

Total Revenue
$308M
Previous year: $355M
-13.2%
EPS
$0.54
Previous year: $0.7
-22.9%
Operating Margin
11%
Gross Profit
$107M
Previous year: $120M
-10.5%
Cash and Equivalents
$43.1M
Previous year: $41M
+5.1%
Free Cash Flow
$37.6M
Previous year: $1.86M
+1925.9%
Total Assets
$1.15B
Previous year: $1.27B
-9.3%

Franklin Electric

Franklin Electric

Franklin Electric Revenue by Segment

Franklin Electric Revenue by Geographic Location

Forward Guidance

Assuming there are no new government mandated restrictions in our key end markets, we estimate our full year 2020 earnings per share before restructuring charges will be between $1.75 to $1.90 and that our Free Cash Flow conversion will be between 130 and 150 percent of Net Income for the full year 2020.

Positive Outlook

  • Water Systems and Distribution businesses are building momentum heading into the back half of this year.
  • Third and fourth quarters’ revenue declines versus 2019 results will be sequentially reduced in the Fueling business.
  • Full year 2020 earnings per share before restructuring charges will be between $1.75 to $1.90.
  • Free Cash Flow conversion will be between 130 and 150 percent of Net Income for the full year 2020.
  • Company's products and services are generally viewed as essential in most jurisdictions in which the Company operates.

Challenges Ahead

  • Ongoing impacts and uncertainty from the Global Pandemic.
  • Fueling business will take longer to recover from the steep declines experienced in the second quarter.
  • Reduction of large dewatering equipment sales in the Water Systems segment.
  • Water Systems customers “de-stocking” their inventory.
  • Deferral or cancellation of the construction of new filling stations in the Fueling Systems segment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Franklin Electric