Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q2 2022 Earnings Presentation
11 slides from Zurn Elkay Water Solutions's earnings presentation, Jul 27, 2022
Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results JULY 26, 2022
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 Strategic Developments • Completed merger with Elkay Manufacturing Company on July 1st • Final share issuance of 51.6M shares representing $1.4B of value • Integration work-streams well underway … $50M of synergies on-track with a growing funnel of additional opportunities • Incre
Slide 4: 2Q Zurn 2022 Results
2Q Zurn 2022 Results Consolidated Results: Excluding Corporate Costs: $ in millions 2Q 2022 2Q 2021 Change $ in millions 2Q 2022 2Q 2021 Change Net Sales $284 $244 17% Net Sales $284 $244 17% Growth from: Growth from: Core (1) 15% Core (1) 15% Acquisitions 2% Acquisitions 2% Adjusted EBITDA (1) $64
Slide 5: Zurn Cash Flow and Balance Sheet
Zurn Cash Flow and Balance Sheet Net Debt Leverage Ratio (1) Total Debt ($ millions) 2.5x 1,500 2.1x 2.1x 1,000 1,149 1,118 2.0x 2.0x 1.9x 500 1.9x 540 539 538 1.5x 0 Dec-19 Dec-20 Dec-21 Mar-22 Jun-22 Dec-19 Dec-20 Dec-21 Mar-22 Jun-22 (1) Net Debt Leverage is defined as the ratio of total debt les
Slide 6: Zurn Elkay Water Solutions At-a-Glance
Zurn Elkay Water Solutions At-a-Glance Balanced Combined Portfolio of Specified Water Solutions Diverse Combined Business Portfolio New Application Construction, Retrofit, ~45% ~55% Residential, Residential22% End Markets Institutional, 44% Waterworks, 8% Commercial, 26% Commercial ROW, 2% Geography
Slide 7: Synergy Update
Synergy Update • Committed to $50M+ run-rate synergy opportunity over next 2 years • +$25M in 2023 • +$25M in 2024 $50M+ • Integration on schedule with dedicated team focused on synergy Run-Rate Synergies realization and integrating Elkay • Progress on specific synergy initiatives SG&A $25M • 80 / 2
Slide 8: Adding Purpose to Zurn Elkay Business System (ZEBS)
ADDING “PURPOSE” TO ZURN ELKAY BUSINESS SYSTEM (“ZEBS”) OUR PURPOSE AND MISSION We’ve been working to build sustainability into every aspect of how we operate, which We aspire to be the leading provider of means making this important focus on innovative water solutions that promote purpose a part of
Slide 9: Zurn Elkay Value Creation Model
Zurn Elkay Value Creation Model Pure Play: Water and Environmental Zurn Elkay Business System Superior Value Creation Core Incremental Acquisitions Multibillion Dollar Markets Growth Margins Customer Satisfaction Flexible Business Model Leading Brand Positions Long-Term Growth Potential Shareholder
Slide 10: Zurn Elkay Outlook
Zurn Elkay Outlook September Quarter (3Q) • Zurn sales to increase by a high-teens percentage year over year • Elkay sales between $145 million and $155 million • Zurn Elkay Adjusted EBITDA(1) margin in the 21.0% – 22.0% range (excludes corporate expenses)(2) • Anticipate at least 100 bps of YoY mar
Slide 11: Thank You
Thank You ZUrNn ELKAY
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