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Mar 31, 2023

Zurn Elkay Q1 2023 Earnings Report

Zurn Elkay Water Solutions reported first quarter results with net sales increasing by 55% and adjusted EBITDA at 19.5% of net sales.

Key Takeaways

Zurn Elkay Water Solutions reported a strong start to the year with net sales increasing by 55% to $372 million. The company's adjusted EBITDA was $72 million, representing 19.5% of net sales. They also deployed $37 million to share repurchases.

Net sales increased 55% to $372 million compared to $240 million in the prior year.

Net income from continuing operations was $23 million, with diluted EPS of $0.13.

Adjusted EPS was $0.18 compared to $0.24 in the year-ago quarter.

Adjusted EBITDA was $72 million (19.5% of net sales) compared to $52 million (21.7% of net sales) in the prior year.

Total Revenue
$372M
Previous year: $240M
+55.3%
EPS
$0.18
Previous year: $0.24
-25.0%
Adjusted EBITDA Margin
19.5%
Previous year: 21.7%
-10.1%
Gross Profit
$149M
Previous year: $102M
+46.0%
Cash and Equivalents
$74.8M
Previous year: $73.2M
+2.2%
Free Cash Flow
-$200K
Previous year: -$54.7M
-99.6%
Total Assets
$2.81B
Previous year: $1.12B
+151.2%

Zurn Elkay

Zurn Elkay

Forward Guidance

The company's outlook for the year remains unchanged with sales to be in the range of $1,500 million to $1,550 million, Adjusted EBITDA to be in the range of $325 million to $345 million and free cash flow to total approximately $200 million. For the second quarter, the company expects sales to be in a range of $385 million to $395 million and consolidated Adjusted EBITDA margins to range between 21.0% and 21.5%.

Positive Outlook

  • Sales to be in the range of $1,500 million to $1,550 million for the year.
  • Adjusted EBITDA to be in the range of $325 million to $345 million for the year.
  • Free cash flow to total approximately $200 million for the year.
  • Sales to be in a range of $385 million to $395 million for the second quarter.
  • Consolidated Adjusted EBITDA margins to range between 21.0% and 21.5% for the second quarter.