Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q3 2021 Earnings Presentation
11 slides from Zurn Elkay Water Solutions's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results October 27, 2021
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT Forward-Looking Statements This presentation contains “forward-looking statements” that are subject to Cautionary Statement on Forward-Looking Statements contained in the press release we issued on October 26, 2021 and which is
Slide 3: 3Q 2021 Performance Update
3Q 2021 Performance Update Strategic Developments • Completed RMT transaction on October 4, 2021 • Zurn Water Solutions (ZWS) now a stand-alone pure-play water management business • PMC segment to be reported as a discontinued operation starting in 4Q Consolidated Results • Strong order rates across
Slide 4: Poised to Benefit from Multiple Megatrends
Poised to Benefit from Multiple Megatrends Climate Change and Issue Water Scarcity Sustainability COVID-19/Hygiene Flooding Importance of mitigating Increased droughts and Desire to avoid material Heightened sanitary impact of heavy rains acute water shortage waste (i.e. paper towels) focus and need
Slide 5: Providing Sustainable Solutions for our Customers
Providing Sustainable Solutions for our Customers 100% of products devoted to water solutions for health, human safety and the environment ~34 Billion gallons of water saved last year by Zurn products ~70% of Zurn product sales incorporate recycled material ~46 thousand tons of recycled materials us
Slide 6: ZWS Capital Allocation Strategy
ZWS Capital Allocation Strategy Dividend Acquisitions Leverage Initiated $0.03/ Maintaining capacity Maintaining net share quarterly for strategic bolt on debt leverage in dividend acquisitions 2x – 3x range Maximizing Shareholder Value 6
Slide 7: 3Q 2021 Summary
3Q 2021 Summary $ in millions 3Q 2021 3Q 2020 Change 3Q 2021 3Q 2021 Segment Net Sales Adjusted EBITDA Net Sales $557 $494 +13% Growth from: Core (1) +9% 44% 41% Acq & Divest +3% 59% 56% Translation +1% Adjusted EBITDA (1) $128 $109 +18% Process & Motion Control Process & Motion Control Water Manage
Slide 8: 3Q 2021 Platform Results
3Q 2021 Platform Results Water Management Process & Motion Control • Continued strong demand across product lines • Demand remained solid during the third quarter • Adjusted EBITDA dollars grow +9% year over year • Adjusted EBITDA margin expanded by +260 bps year over year $ in millions 3Q 2021 3Q 2
Slide 9: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Free Cash Flow ($ millions) (1) Net Debt Leverage Ratio (2) Total Debt ($ millions) (3) 300 2,000 2.7x 250 276 244 1,500 200 2.3x 210 2.2x 1,303 2.1x 1,192 1,196 1,192 150 1,149 1,000 1.9x 2.0x 224 100 207 1.7x 500 1.5x 50 0 1.2x 0 CY18 CY19 CY20 9 Mos 9 Mos Dec-18 Dec-19 D
Slide 10: Zurn Outlook
Zurn Outlook December Quarter (4Q) • Total sales to increase by a high-teens percentage year over year • Adjusted EBITDA(1) margin in the 24.0% – 24.5% range (excludes corporate expenses) (2) • Corporate expense of ~$10 million • Interest expense of ~$5 million • Stock compensation expense of ~$16 m
Slide 11: Thank You
Thank You
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