Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q2 2024 Earnings Presentation
9 slides from Zurn Elkay Water Solutions's earnings presentation, Jul 31, 2024
Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results July 31, 2024 zurn + elkay
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 2Q Results Strategic Developments v Proforma Core sales® @ +3% SEIS RUT MESES OS GLEN Sirens) v Adjusted EBITDA® margin of 25.3% ... up +370 bps or YTD share repurchases of $80M (2.6M shares) 20% over prior year Q2 ¥ FCF of $80M in the quarter y Ending net debt leverage at 0.9x ()
Slide 4: Second quarter 2024 vs 2023 financial summary
$ in millions 2Q 2024 2Q 2023 Change Net Sales $412 $403 2% Growth from: Core (1) 2% Pro forma Core (2) 3% Adjusted EBITDA (1) $104 $87 20% % of Sales 25.3% 21.6% +370 bps 4
Slide 5: Net debt leverage and liquidity
2.2x $750 2.0x 1.7x $500 540 536 555 495 496 1.5x 1.4x 1.2x $250 1.1x 0.9x $- 0.7x Dec-21 Dec-22 Dec-23 Jun-23 Jun-24 Dec-21 Dec-22 Dec-23 Jun-23 Jun-24 . 5
Slide 6: Q2 YTD Sustainability Impact
Q2 YTD Sustainability Impact SUSTAINABLE PRODUCTS 86% revenue from products with sustainable attributes ENERGY & EMISSIONS | million kWh of annual electricity savings from projects completed SUSTAINABLE PRODUCTS. 16 billion gallons of water saved from our products COMMUNITY 1,500 employee volunteer
Slide 7: Mid-Year 2024 Perspective
Mid-Year 2024 Perspective ¥ Growing at ~3% organically ... vs. our 10-year CAGR of -6% * Absorbing commercial and residential market headwinds * ~45% MRO and ~50% institutional exposure helping offset headwinds v Baseline margins/FCF can be leveraged as “more” growth returns v Balance sheet optional
Slide 8: Zurn Elkay Outlook
Zurn Elkay Outlook September Quarter (3Q) Outlook + Proforma core sales growth up +LSD 3Q CY23 to 3Q CY23 Proforma Sales + Adjusted EBITDA” margin approximately -25.0% $4 . . $398 ¢ Below the line assumptions: + Interest expense of -$9 million Stock compensation expense of -$10 million Depreciation
Slide 9: Thank You
Thank You
Zurn Elkay Water Solutions — Q2 2024 Earnings Presentation on 6ix