Zurn Elkay Q3 2021 Earnings Report
Key Takeaways
Zurn Water Solutions reported a strong third quarter with net sales of $557 million, a 15% increase year-over-year. Core sales grew by 5%, and adjusted EPS reached $0.55. The company is well-positioned for future growth and expects double-digit core growth in 2022.
Completed the spin-off of Process & Motion Control (PMC) business.
Consolidated net sales increased to $557 million compared to $494 million in the previous year.
Consolidated net income was $64 million (diluted EPS of $0.51), compared to $45 million (diluted EPS of $0.37) in the year-ago quarter.
Adjusted EBITDA was $128 million (23.0% of net sales) compared to $109 million (22.0% of net sales) in the previous year.
Zurn Elkay
Zurn Elkay
Forward Guidance
For the fourth quarter, Zurn expects total sales to increase year over year by a high teens percentage and Adjusted EBITDA margin to range between 24% and 24.5%. Corporate expenses are expected to approximate $10 million. The company remains on track to reduce corporate expenses to approximately $20 million dollars on an annualized basis during the first quarter of 2022.
Positive Outlook
- Expects Zurn's fourth quarter total sales to increase year over year by a high teens percentage
- Adjusted EBITDA margin to range between 24% and 24.5%.
- Corporate expenses to approximate $10 million.
- Remain on track to reduce corporate expenses to approximately $20 million dollars on an annualized basis during the first quarter of 2022.