Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q1 2024 Earnings Presentation
10 slides from Zurn Elkay Water Solutions's earnings presentation, Apr 24, 2024
Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results April 24, 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 co
Slide 3: Performance Update
Performance Update 1Q Results Strategic Developments Proforma Core sales(1) (2) +4% Share repurchases of $19M (~620k shares) Adjusted EBITDA(1) margin of 24.1% … up 460 bps Published our 2023 Sustainability Report or 24% over prior year Q1 FCF(1) of $50M in the quarter Ending net debt le
Slide 4: 1Q Zurn Elkay 2024 Results
1Q Zurn Elkay 2024 Results Consolidated Results $ in millions 1Q 2024 1Q 2023 Change Net Sales $374 $372 0% Growth from: Core (1) 0% Pro forma Core (2) 4% Adjusted EBITDA (1) $90 $72 24% % of Sales 24.1% 19.5% +460 bps (1) Non-GAAP measure defined, reconciled, and discussed in the earnings release i
Slide 5: Zurn Elkay Leverage and Debt
Zurn Elkay Leverage and Debt Net Debt Leverage Ratio(1) Total Debt ($ millions) 2.2x 750 2.0x 1.7x 1.6x 500 557 540 536 495 495 1.4x 1.2x 250 1.1x 0.9x 0.7x 0 Dec-21 Dec-22 Dec-23 Mar-23 Mar-24 Dec-21 Dec-22 Dec-23 Mar-23 Mar-24 (1) Net Debt Leverage is defined as the ratio of total debt less cash t
Slide 6: Innovation Driving Share Gains
Innovation Driving Share Gains Reliable, Sustainable Performance Hydro•X Power® technology powers renewable, uninterrupted hydropower for no unplanned downtime. Low Maintenance Solenoid-free gear-driven ceramic cartridge that is less susceptible to debris and buildup for less maintenance. Industry-l
Slide 7: 1Q Sustainability Impact
1Q Sustainability Impact SUSTAINABLE PRODUCTS SUSTAINABLE PRODUCTS SUSTAINABLE PRODUCTS 86% 7.6 billion 450 million Revenue from products Gallons of water saved Gallons of safer, cleaner with sustainable from our products filtered water delivered attributes by our filters PEOPLE PEOPLE WASTE REDUCTI
Slide 8: ZWS Business Model
ZWS Business Model Pure Play Water Zurn Elkay Business System Superior Value Creation Multibillion Dollar Dasa abel cous ons Markets Margins Flexible Business Model Customer Satisfaction Leading Brand Positions zurn+elkay Long-Term Growth Potential Shareholder Returns Sustainable Competitive Advanta
Slide 9: Zurn Elkay Outlook
Zurn Elkay Outlook June Quarter (2Q) Outlook • Proforma core sales growth(1) up +LSD 2Q CY23 to 2Q CY23 Proforma Sales • Adjusted EBITDA(1) margin between 24.5% and 25.0%(2) – $4 $403 • Below the line assumptions: $399 • Interest expense of ~$9 million • Stock compensation expense of ~$10 million •
Slide 10: Thank You
Thank You
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