Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q3 2023 Earnings Presentation
11 slides from Zurn Elkay Water Solutions's earnings presentation, Nov 1, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results November 1, 2023
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 includes "forward-looking statements" within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include statements we make con
Slide 3: Performance Update
Performance Update 3Q Results Strategic Developments ✓ Proforma Core sales(1) (2) +1% ✓ YTD share repurchases total ~$100M (4.4M ✓ Adjusted EBITDA(1) margin of 24.1% shares) at an average price of $22.55 ✓ Quarterly dividend increased 14% ✓ FCF(1) of $99M in the quarter ✓ In October prepaid $60 mill
Slide 4: 3Q Zurn Elkay 2023 Results
3Q Zurn Elkay 2023 Results Consolidated Results $ in millions 3Q 2023 3Q 2022 Change Net Sales $398 $418 (5%) Growth from: Core (1) (5%) Pro forma Core (2) 1% Adjusted EBITDA (1) $96 $84 15% % of Sales 24.1% 20.0% 410 bps (1) Non-GAAP measure defined, reconciled, and discussed in the earnings releas
Slide 5: Zurn Elkay Leverage and Debt
Zurn Elkay Leverage and Debt Net Debt Leverage Ratio(1) Total Debt ($ millions) 2.5x 1,500 2.1x 2.0x 2.0x 1,118 1,000 1.6x 1.5x 1.5x 500 1.4x 540 536 557 555 554 1.2x 1.0x 0 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 $60 million prepayment on Term loan made O
Slide 6: ESG/Sustainability Impact
ESG/Sustainability Impact SUSTAINABLE PRODUCTS WASTE REDUCTION R&D 84% 14 Billion $18 Million % revenue from products with Single-use plastic water Investment in engineering, sustainable attributes YTD bottles eliminated YTD research and development YTD ENERGY / GHG REDUCTION COMMUNITY DONATIONS SUS
Slide 7: Commitment to Water Quality: PFAS Filtration
Commitment to Water quality… PFAS Filtration ✓ Immediate solution to reduce PFOA and PFOS, the two most widely used and studied chemicals in the PFAS group WaterSentry® 71300C Filter ✓ Tested and certified to NSF/ANSI 53 standards ✓ Continues to filter lead, Class 1 Exposure to PFAS at certain parti
Slide 8: Market Update
Market Update Average Nonresidential Construction Backlog(2) (in 11 months) Quarterly Institutional Starts(1) (Sq Feet) 120,000 Commercial & Institutional 10 100,000 80,000 9 60,000 8 40,000 7 20,000 6 - 2019 2020 2021 2022 2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 9: Resilient Financial Performance
Resilient Financial Performance Historical Revenue Growth ($M) Core Growth CAGR $1,600 +13% $1,400 Core $1,200 3 Years +8% +11% $1,000 Core +4% +4% $800 +3% +2% +3% +9% Core Core 7 Years +6% +10% Core +7% Core Core Core $600 Core Core $400 10 Years +6% $200 $- 2013 2014 2015 2016 2017 2018 2019 2020
Slide 10: Zurn Elkay Outlook – 4Q CY23
Zurn Elkay Outlook – 4Q CY23 December Quarter (4Q) ✓ Total net sales around $351 million…outlook assumes the following 4Q ‘22 Pro Forma Sales proforma sales growth: ✓ Non-residential sales growth up + high-single digits ✓ Residential sales down - low single digits $340 - $12 ✓ Total Adjusted EBITDA(
Slide 11: Thank You
THANK YOU zZurn ELKAY —_ ___
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