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Dec 31, 2021

Zurn Elkay Q4 2021 Earnings Report

Zurn Water Solutions reported fourth quarter financial results, showcasing sales growth and strategic acquisitions.

Key Takeaways

Zurn Water Solutions reported a 23% increase in net sales to $232 million for the fourth quarter of 2021. Adjusted EPS was $0.22, and Adjusted EBITDA reached $45 million. The company completed the acquisition of Wade Drains and saw core sales grow by 16%.

Net sales increased 23% to $232 million compared to the previous year.

Net income from continuing operations was $3 million, or $0.02 diluted EPS.

Adjusted EPS was $0.22, up from $0.09 in the year-ago quarter.

Adjusted EBITDA was $45 million, representing 19.4% of net sales.

Total Revenue
$232M
Previous year: $563M
-58.7%
EPS
$0.22
Previous year: $0.3
-26.7%
Adjusted EBITDA Margin
24%
Gross Profit
-$289M
Previous year: $80.9M
-457.6%
Cash and Equivalents
$96.6M
Previous year: $62.3M
+55.1%
Total Assets
$1.08B
Previous year: $3.4B
-68.3%

Zurn Elkay

Zurn Elkay

Forward Guidance

For the first quarter of 2022, Zurn expects total sales to increase by a high teens percentage year over year. Adjusted EBITDA margin, excluding corporate costs, is expected to range between 24% and 24.5%, with corporate expenses approximating $7 million. The company continues to expect double-digit core growth for 2022 with robust Adjusted EBITDA margins and strong free cash flow.

Positive Outlook

  • Expects Zurn total sales to increase year over year by a high teens percentage.
  • Adjusted EBITDA margin, excluding corporate costs, to range between 24% and 24.5%.
  • Corporate expenses to approximate $7 million.
  • Continue to expect double digit core growth for 2022
  • Expects robust Adjusted EBITDA margins and strong free cash flow.