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Mar 31, 2022

Zurn Elkay Q1 2022 Earnings Report

Zurn Water Solutions reported first quarter results with sales growth and progress on Elkay merger.

Key Takeaways

Zurn Water Solutions reported a 17% increase in net sales to $240 million for the first quarter of 2022. Net income from continuing operations was $29 million, or $0.23 per diluted share, compared to $10 million, or $0.08 per diluted share, in the year-ago quarter. Adjusted EPS was $0.24 compared to $0.13 in the prior year. Adjusted EBITDA was $52 million, representing 21.7% of net sales.

Net sales increased 17% to $240 million compared to $205 million in the prior year.

Net income from continuing operations was $29 million ($0.23 diluted EPS) compared to $10 million ($0.08 diluted EPS) in the prior year.

Adjusted EPS was $0.24 compared to $0.13 in the prior year.

Adjusted EBITDA was $52 million (21.7% of net sales) compared to $44 million (21.6% of net sales) in the prior year.

Total Revenue
$240M
Previous year: $205M
+16.8%
EPS
$0.24
Previous year: $0.42
-42.9%
Adjusted EBITDA Margin
21.7%
Gross Profit
$102M
Previous year: $88.4M
+15.3%
Cash and Equivalents
$73.2M
Previous year: $307M
-76.2%
Free Cash Flow
-$54.7M
Previous year: $62.1M
-188.1%
Total Assets
$1.12B
Previous year: $3.49B
-67.9%

Zurn Elkay

Zurn Elkay

Forward Guidance

For the second quarter of 2022, Zurn expects total sales to increase year over year by a low to mid teens percentage. Adjusted EBITDA margin, excluding corporate costs, is expected to range between 24.5% and 25.0%, and corporate expenses are expected to approximate $7 million. The company continues to expect double digit reported core growth for 2022 with robust Adjusted EBITDA margins and strong free cash flow.