Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q4 2023 Earnings Presentation
10 slides from Zurn Elkay Water Solutions's earnings presentation, Feb 7, 2024
Slide 1: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results February 7, 2024
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 4Q Results ✓ Proforma Core sales(1) (2) +9% Strategic Developments ✓ Adjusted EBITDA(1) margin of 23.6% ✓ YTD share repurchases total ~$125M (5.3M ✓ FCF(1) of $53M in the quarter shares, ~3% of outstanding shares) ✓ Quarterly dividend increased 14% CY 2023 Results ✓ Completed sale
Slide 4: 4Q Zurn Elkay 2023 Results
4Q Zurn Elkay 2023 Results Consolidated Results $ in millions 4Q 2023 4Q 2022 Change Net Sales $357 $340 5% Growth from: Core (1) 5% Pro forma Core (2) 9% Adjusted EBITDA (1) $84 $65 30% % of Sales 23.6% 19.0% 460 bps (1) Non-GAAP measure defined and discussed in the earnings release included in the
Slide 5: Zurn Elkay Leverage Debt
Zurn Elkay Leverage Debt Net Debt Leverage Ratio(1) Total Debt ($ millions) 2.5x 1,500 2.1x 2.0x 2.0x 1,000 1,118 1.6x 1.5x 1.5x 500 540 536 557 555 554 1.4x 495 1.2x 1.1x 1.0x 0 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 $60 million prepayment
Slide 6: 2023 Sustainability Report
2023 Report to be issued in coming weeks 2023 Sustainability Report Enhanced transparency and disclosures ✓ Three new targets: ✓ Reduce waste to landfill ✓ Increase use of renewable electricity ✓ Increase in training hours ✓ Separate GRI Index with additional material GRI KPIs ✓ ESG Performance Inde
Slide 7: Environmental Benefit of Elkay Bottle Fillers
Environmental Benefit of Elkay Bottle Fillers 7
Slide 8: Sustainability Impact in 2023
Sustainability Impact in 2023 SUSTAINABLE PRODUCTS HEALTH AND SAFETY WASTE REDUCTION RESEARCH & DEVELOPMENT 86% 0.68 18 billion $24 million Revenue from Total Recordable Single-use plastic Investment in products with Incident Rate compared water bottles engineering, research sustainable attributes t
Slide 9: Q1 2024 and CY 2024 Guidance Framework
Q1 2024 and CY 2024 Guidance Framework Key 2024 Assumptions Positive Proforma core sales growth YoY 1Q CY23 to 1Q CY23 Proforma Sales CY23 to CY23 Proforma Sales Commercial market down –MSD – $12 – $20 Residential market flat $372 $1,531 Waterworks market up +LSD Institutional market up +LSD $360 $1
Slide 10: Thank You
Thank You
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