Call scheduled for Wednesday, April 27, 2022 at 8:30 a.m.
Eastern Time
Zurn Water Solutions Corporation (NYSE:ZWS)
First Quarter Highlights
- Net sales in the quarter increased 17% to $240 million compared
with $205 million in last year’s March quarter (+15% core sales(1),
+2% acquisitions).
- Net income from continuing operations was $29 million (diluted
EPS from continuing operations of $0.23) compared with net income
from continuing operations of $10 million (diluted EPS from
continuing operations of $0.08) in the year-ago quarter.
- Adjusted EPS(1) was $0.24 compared with $0.13 in the year-ago
quarter.
- Adjusted EBITDA(1) was $52 million (21.7% of net sales)
compared with $44 million (21.6% of net sales) in last year's first
quarter. Corporate costs were $7 million compared to $9 million in
last year's first quarter.
- Net debt leverage of 2.3x as of March 31, 2022. Proforma for
the normalized annual corporate costs, net debt leverage was 2.1x,
as of March 31, 2022.
- Announced entry into a definitive agreement to combine with
Elkay Manufacturing Company (“Elkay”).
- Published our 2021 Sustainability Report.
Todd A. Adams, Chairman and Chief Executive Officer, commented,
“In the first quarter, demand trends in our business remained
strong and quite frankly were a bit better than we anticipated
heading into the year as our organic growth initiatives continue to
gain momentum amidst an improving market outlook. We delivered
solid growth in the quarter as year over year sales grew 17% with
our core sales growing 15% on top of core growth in the prior year
first quarter. Operationally, we continue to execute well as we
delivered adjusted EBITDA margins, excluding corporate costs, of
24.5% which were at the high-end of our expectations heading into
the quarter.
"Our first quarter was highlighted by the announcement of the
planned merger with Elkay Manufacturing Company. We anticipate that
the transaction will close early in the third quarter of 2022. The
combination with Elkay allows us to add a high-growth and
increasingly essential drinking water sector to the product
portfolio and is a significant milestone on our way to doubling the
business over the next several years. As we continue to engage with
the Elkay team, we are increasingly excited about the future
combination of our two strong brands and what this combination will
mean in the marketplace as well as the value it will create for
shareholders.
"During the quarter we published our 2021 Sustainability Report.
This is our third published report, but our first sustainability
report as a stand-alone water business. The report highlights our
ongoing efforts to continually improve the environmental, social
and governance aspects of our business and we have our teams
aligned to deliver on specific ESG related targets highlighted in
the report, including commitments to reduce greenhouse gas
emissions and energy use and goals for diversity among leadership
and suppliers. The combination with Elkay only adds to the momentum
of our ESG initiatives and the relevance our water-centric
solutions bring to the market."
Second Quarter Outlook
Adams continued, “For the second quarter of 2022 we expect Zurn
total sales to increase year over year by a low to mid teens
percentage, Adjusted EBITDA margin, excluding corporate costs, to
range between 24.5% and 25.0% and for our corporate expenses to
approximate $7 million. We continue to expect double digit reported
core growth for 2022 with robust Adjusted EBITDA margins and strong
free cash flow.
First Quarter 2022
Overview
Net sales were $239.6 million during the three months ended
March 31, 2022, an increase of 17% year over year. Excluding a 2%
increase to net sales resulting from our prior-year acquisition,
core sales increased 15% year over year as all of our product
categories contributed to the sales growth.
Income from operations, excluding corporate costs of $10.4
million, was $54.3 million during the three months ended March 31,
2022, or 22.7% of net sales. Income from operations excluding
corporate costs as a percentage of net sales increased by 290 basis
points primarily as a result of the favorable impact of
year-over-year sales growth (inclusive of price realization),
productivity savings, lower intangible asset amortization and the
year-over-year change in the adjustment to state inventories at
last-in-first-out cost, all of which was partially offset by the
year-over-year increases in material and transportation costs, as
well as incremental growth and productivity investments.
Adjusted EBITDA(1), excluding corporate costs of $6.8 million,
was $58.8 million, or 24.5% of net sales during the three months
ended March 31, 2022 compared to $53.3 million, excluding corporate
costs of $9.0 million, or 26.0% of net sales during the three
months ended March 31, 2021.
(1)
Refer to "Non-GAAP Financial Measures" for
a definition of this non-GAAP metric, as well as the accompanying
reconciliations to GAAP.
Non-GAAP Financial Measures
The following non-GAAP financial measures are utilized by
management in comparing our operating performance on a consistent
basis. We believe that these financial measures are appropriate to
enhance an overall understanding of our underlying operating
performance trends compared to historical and prospective periods
and our peers. Management also believes that these measures are
useful to investors in their analysis of our results of operations
and provide improved comparability between fiscal periods as well
as insight into the compliance with our debt covenants. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information calculated in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP
financial measures. A reconciliation of non-GAAP financial measures
presented above to our GAAP results has been provided in the
financial tables included in this press release.
Core Sales
Core sales excludes the impact of acquisitions (such as the Wade
Drains acquisition), divestitures and foreign currency translation.
Management believes that core sales facilitates easier and more
meaningful comparison of our net sales performance with prior and
future periods and to our peers. We exclude the effect of
acquisitions and divestitures because the nature, size and number
of acquisitions and divestitures can vary dramatically from period
to period and between us and our peers, and can also obscure
underlying business trends and make comparisons of long-term
performance difficult. We exclude the effect of foreign currency
translation from this measure because the volatility of currency
translation is not under management's control.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted net income and adjusted earnings per share (calculated
on a diluted basis) exclude actuarial gains and losses on pension
and postretirement benefit obligations, restructuring and other
similar charges, gains or losses on divestitures, discontinued
operations, gains or losses on extinguishment of debt, the impact
of acquisition-related fair value adjustments in connection with
purchase accounting, amortization of intangible assets, the
adjustment to state inventories at last-in first-out costs, and
other non-operational, non-cash or non-recurring losses, net of
their income tax impact. The tax rates used to calculate adjusted
net income and adjusted earnings per share are based on a
transaction specific basis. We believe that adjusted net income and
adjusted earnings per share are useful in assessing our financial
performance by excluding items that are not indicative of our core
operating performance or that may obscure trends useful in
evaluating our continuing results of operations. All references to
Net Income and EPS within this earnings release refer to net income
attributable to Zurn Water Solutions common stockholders and net
income per diluted share attributable to Zurn Water Solutions
common stockholders, respectively.
EBITDA
EBITDA represents earnings from continuing operations before
interest and other debt related activities, taxes, depreciation and
amortization. EBITDA is presented because it is an important
supplemental measure of performance and it is frequently used by
analysts, investors and other interested parties in the evaluation
of companies in our industry. EBITDA is also presented and compared
by analysts and investors in evaluating our ability to meet debt
service obligations. Other companies in our industry may calculate
EBITDA differently. EBITDA is not a measurement of financial
performance under GAAP and should not be considered as an
alternative to cash flow from operating activities or as a measure
of liquidity or an alternative to net income as an indicator of
operating performance or any other measures of performance derived
in accordance with GAAP. Because EBITDA is calculated before
recurring cash charges, including interest expense and taxes, and
is not adjusted for capital expenditures or other recurring cash
requirements of the business, it should not be considered as a
measure of discretionary cash available to invest in the growth of
the business.
Adjusted EBITDA
“Adjusted EBITDA” is the term we use to describe EBITDA as
defined and adjusted in our credit agreement, which is net income,
adjusted for the items summarized in the Reconciliation of GAAP to
Non-GAAP Financial Measures table below. Adjusted EBITDA is
intended to show our unleveraged, pre-tax operating results and
therefore reflects our financial performance based on operational
factors, excluding non-operational, non-cash or non-recurring
losses or gains. In view of our debt level, it is also provided to
aid investors in understanding our compliance with our debt
covenants. Adjusted EBITDA is not a presentation made in accordance
with GAAP, and our use of the term Adjusted EBITDA varies from
others in our industry. In addition to Adjusted EBITDA we also use
the term "Adjusted EBITDA excluding corporate costs" which is used
to described our total Adjusted EBITDA at the operating level
without being burdened by the EBITDA costs associated with our
corporate functions. Adjusted EBITDA should not be considered as an
alternative to net income, income from operations or any other
performance measures derived in accordance with GAAP. Adjusted
EBITDA has important limitations as an analytical tool, and you
should not consider it in isolation, or as a substitute for,
analysis of our results as reported under GAAP. For example,
Adjusted EBITDA does not reflect: (a) our capital expenditures,
future requirements for capital expenditures or contractual
commitments; (b) changes in, or cash requirements for, our working
capital needs; (c) the significant interest expenses, or the cash
requirements necessary to service interest or principal payments,
on our debt; (d) tax payments that represent a reduction in cash
available to us; (e) any cash requirements for the assets being
depreciated and amortized that may have to be replaced in the
future; or (f) the impact of earnings or charges resulting from
matters that we and the lenders under our credit agreement may not
consider indicative of our ongoing operations. In particular, our
definition of Adjusted EBITDA allows us to add back certain
non-cash, non-operating or non-recurring charges that are deducted
in calculating net income, even though these are expenses that may
recur, vary greatly and are difficult to predict and can represent
the effect of long-term strategies as opposed to short-term
results.
In addition, certain of these expenses can represent the
reduction of cash that could be used for other corporate purposes.
Further, although not included in the calculation of Adjusted
EBITDA below, the measure may at times allow us to add estimated
cost savings and operating synergies related to operational changes
ranging from acquisitions to dispositions to restructurings and/or
exclude one-time transition expenditures that we anticipate we will
need to incur to realize cost savings before such savings have
occurred. Further, management and various investors use the ratio
of total debt less cash to Adjusted EBITDA (which includes a full
pro-forma last-twelve-month impact of acquisitions), or "net debt
leverage", as a measure of our financial strength and ability to
incur incremental indebtedness when making key investment decisions
and evaluating us against peers. Lastly, management and various
investors use the ratio of the change in Adjusted EBITDA divided by
the change in net sales (referred to as “incremental margin” in the
case of an increase in net sales or “decremental margin” in the
case of a decrease in net sales) as an additional measure of our
financial performance and this ratio is utilized by management when
making key investment decisions and evaluating us against
peers.
Free Cash Flow
We define Free Cash Flow as cash flow from operations less
capital expenditures, and we use this metric in analyzing our
ability to service and repay our debt and to forecast future
periods. However, this measure does not represent funds available
for investment or other discretionary uses since it does not deduct
cash used to service our debt. We define Free Cash Flow Conversion
as Free Cash Flow divided by net income.
Return on Invested Capital (“ROIC”)
ROIC is used because we believe it is an important supplemental
measure of financial performance and it is also currently a
performance measure under our long-term incentive plan. ROIC is
frequently used by analysts, investors and other interested parties
in the evaluation of companies in our industry. ROIC is also used
by investors and analysts to evaluate management’s deployment of
capital to create shareholder value. We define ROIC as tax-effected
net operating income for the last 12 months divided by average
total invested capital over a rolling four-quarter period. Total
invested capital is defined as stockholders' equity plus debt, less
cash and cash equivalents. Other companies may not define or
calculate ROIC in the same way.
About Zurn Water Solutions
Headquartered in Milwaukee, Wisconsin, Zurn Water Solutions is a
growth oriented, pure-play water business that designs, procures,
manufactures and markets what we believe is the broadest
sustainable product portfolio of water management solutions to
improve health, human safety and the environment. The Zurn product
portfolio includes professional grade water control and safety,
water distribution and drainage, finish plumbing, hygienic and
environmental and site works products for public and provide
spaces. Additional information about the Company can be found at
www.zurnwatersolutions.com.
Conference Call Details
Zurn Water Solutions will hold a conference call on Wednesday,
April 27, 2022, at 8:30 a.m. Eastern Time to discuss its first
quarter 2022 results, provide a general business update and respond
to investor questions. Zurn Chairman and CEO, Todd Adams, and
Senior Vice President and CFO, Mark Peterson, will co-host the
call. The conference call can be accessed via telephone as
follows:
Domestic toll-free: 888-510-2359
International toll: 646-960-0215 Access Code: 7660247
A live webcast of the call will also be available on the
Company's investor relations website. Please go to the website
(investors.zurnwatersolutions.com) at least 15 minutes prior to the
start of the call to register, download and install any necessary
audio software.
If you are unable to participate during the live teleconference,
a replay of the conference call will be available from 9:30 a.m.
Central Time April 27, 2022 until 10:59 p.m. Central Time, May 4,
2022. To access the replay, please dial 800-770-2030 (domestic) or
647-362-9199 (international). The Conference ID for the replay is:
7660247. The replay will also be available as a webcast on the
Company’s investor relations website.
Cautionary Statement on Forward-Looking Statements
Information in this release may involve outlook, expectations,
beliefs, plans, intentions, strategies or other statements
regarding the future, which are forward-looking statements. These
forward-looking statements involve risks and uncertainties. All
forward-looking statements included in this release are based on
information available to Zurn Water Solutions Corporation as of the
date of the release, and Zurn assumes no obligation to update any
such forward-looking statements. The statements in this release are
not guarantees of future performance, and actual results could
differ materially from current expectations. Numerous factors could
cause or contribute to such differences. Please refer to “Risk
Factors” and “Cautionary Notice Regarding Forward-Looking
Statements” in our Annual Report on Form 10-K for the year ended
December 31, 2021, as well as the Company’s subsequent annual,
quarterly and current reports filed on Forms 10-K, 10-Q and 8-K
from time to time with the Securities and Exchange Commission for a
further discussion of the factors and risks associated with the
business. In addition, our previously announced transaction with
Elkay Manufacturing Company is subject to various risks,
uncertainties and factors including, among others: the inability to
complete the transaction; the inability to recognize the
anticipated benefits of the proposed transaction, including due to
the failure to receive required security holder approvals, or the
failure of other closing conditions; and costs related to the
proposed transaction; see also Part I, Item 1A, "Risk Factors" in
the Company's Quarterly Reporting on Form 10-Q for the quarterly
period ended March 31, 2022.
Zurn Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Operations
(in Millions, except share and
per share amounts)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Net sales
$
239.6
$
205.2
Cost of sales
137.7
116.8
Gross profit
101.9
88.4
Selling, general and administrative
expenses
53.9
57.7
Restructuring and other similar
charges
1.1
0.6
Amortization of intangible assets
3.0
6.1
Income from operations
43.9
24.0
Non-operating expense:
Interest expense, net
(4.8
)
(9.6
)
Other income, net
0.3
0.3
Income before income taxes
39.4
14.7
Provision for income taxes
(10.0
)
(4.7
)
Net income from continuing operations
29.4
10.0
Income from discontinued operations, net
of tax
0.8
40.0
Net income attributable to Zurn common
stockholders
$
30.2
$
50.0
Basic net income per share:
Continuing operations
$
0.23
$
0.08
Discontinued operations
$
0.01
$
0.33
Net income
$
0.24
$
0.42
Diluted net income per share:
Continuing operations
$
0.23
$
0.08
Discontinued operations
$
0.01
$
0.32
Net income
$
0.24
$
0.40
Weighted-average number of shares
outstanding (in thousands):
Basic
126,281
119,808
Effect of dilutive equity awards
2,160
3,829
Diluted
128,441
123,637
Zurn Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended March 31,
2022
(in Millions)
(Unaudited)
Three Months Ended March 31,
2022
Reported Results
Adjustments
Non-GAAP Results
Net sales
$
239.6
$
—
$
239.6
EBITDA
49.2
2.8
(a)
52.0
Depreciation and amortization
(5.3
)
—
(5.3
)
Income from operations
43.9
2.8
(b)
46.7
Income before income taxes
39.4
1.6
(c)
41.0
Provision for income taxes and indicated
rate
(10.0
)
25.4
%
(0.4
)
25.0
%
(10.4
)
25.4
%
Net income from continuing operations
29.4
1.2
30.6
Income from discontinued operations, net
of tax
0.8
(0.8
)
—
Net income attributable to Zurn common
stockholders
$
30.2
$
0.4
$
30.6
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
1.1
$
1.1
$
1.1
Acquisition-related fair value
adjustment
0.3
0.3
0.3
Other, net (1)
0.3
0.3
0.3
Last-in-first-out inventory
adjustments
(2.8
)
(2.8
)
(2.8
)
Stock-based compensation expense
3.9
3.9
—
Amortization of intangible assets
—
—
3.0
Other income, net (2)
—
—
(0.3
)
Total Adjustments
$
2.8
$
2.8
$
1.6
____________________
(1)
Other, net includes the gains and losses
from the sale of long-lived assets.
(2)
Other income, net for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions and the non-service cost components of net
periodic benefit credits associated with our defined benefit
plans.
Zurn Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended March 31,
2021
(in Millions)
(Unaudited)
Three Months Ended March 31,
2021
Reported Results
Adjustments
Non-GAAP Results
Net sales
$
205.2
$
—
$
205.2
EBITDA
32.3
12.0
(a)
44.3
Depreciation and amortization
(8.3
)
—
(8.3
)
Income from operations
24.0
12.0
(b)
36.0
Income before income taxes
14.7
8.7
(c)
23.4
Provision for income taxes and indicated
rate
(4.7
)
32.0
%
(2.1
)
24.1
%
(6.8
)
29.1
%
Net income from continuing operations
10.0
6.6
16.6
Income from discontinued operations, net
of tax
40.0
(40.0
)
—
Net income attributable to Zurn common
stockholders
$
50.0
$
(33.4
)
$
16.6
EBITDA Adjustments (a)
Income from Operations
Adjustments (b)
Income before Income Taxes
Adjustments (c)
Restructuring and other similar
charges
$
0.6
$
0.6
$
0.6
Acquisition-related fair value
adjustment
0.6
0.6
0.6
Last-in-first-out inventory
adjustments
1.7
1.7
1.7
Stock-based compensation expense
9.1
9.1
—
Amortization of intangible assets
—
—
6.1
Other income, net (1)
—
—
(0.3
)
Total Adjustments
$
12.0
$
12.0
$
8.7
____________________
(1)
Other income, net, for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions and the non-service cost components of net
periodic benefit credits associated with our defined benefit
plans.
Zurn Water Solutions
Corporation and Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures
Three Months Ended March 31,
2022 and March 31, 2021
(in Millions, except share and
per share amounts) (Unaudited)
Three Months Ended
Adjusted EBITDA
March 31, 2022
March 31, 2021
Net income attributable to Zurn common
stockholders
$
30.2
$
50.0
Income from discontinued operations, net
of tax (1)
(0.8
)
(40.0
)
Provision for income taxes
10.0
4.7
Other income, net (2)
(0.3
)
(0.3
)
Interest expense
4.8
9.6
Income from operations
$
43.9
$
24.0
Adjustments
Depreciation and amortization
$
5.3
$
8.3
Restructuring and other similar
charges
1.1
0.6
Stock-based compensation expense
3.9
9.1
Last-in first-out inventory adjustment
(2.8
)
1.7
Acquisition-related fair value
adjustment
0.3
0.6
Other, net (3)
0.3
—
Subtotal of adjustments
8.1
20.3
Adjusted EBITDA
$
52.0
$
44.3
Corporate costs
$
(6.8
)
$
(9.0
)
Adjusted EBITDA excluding corporate
costs
$
58.8
$
53.3
____________________
(1)
Income from discontinued operations, net
of tax is not included in Adjusted EBITDA in accordance with the
terms of our credit agreement.
(2)
Other income, net, for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions and the non-service cost components of net
periodic benefit credits associated with our defined benefit
plans.
(3)
Other, net includes the gains and losses
from the sale of long-lived assets.
Three Months Ended
Adjusted Net Income and Earnings Per
Share
March 31, 2022
March 31, 2021
Net income attributable to Zurn common
stockholders
$
30.2
$
50.0
Income from discontinued operations, net
of tax
(0.8
)
(40.0
)
Amortization of intangible assets
3.0
6.1
Restructuring and other similar
charges
1.1
0.6
Acquisition-related fair value
adjustment
0.3
0.6
Last-in first-out inventory adjustment
(2.8
)
1.7
Other income, net (1)
(0.3
)
(0.3
)
Other, net (2)
0.3
—
Tax effect on above items
(0.4
)
(2.1
)
Adjusted net income
$
30.6
$
16.6
GAAP diluted net income per share from
continuing operations
$
0.23
$
0.08
Adjusted earnings per share - diluted
$
0.24
$
0.13
Weighted-average number of shares
outstanding (in thousands)
GAAP basic weighted-average shares
126,281
119,808
Effect of dilutive equity securities
2,160
3,829
Adjusted diluted weighted-average
shares
128,441
123,637
____________________
(1)
Other income, net, for the periods
indicated, consists primarily of gains and losses from foreign
currency transactions and the non-service cost components of net
periodic benefit credits associated with our defined benefit
plans.
(2)
Other, net includes the gains and losses
from the sale of long-lived assets.
Three Months Ended (1)
March 31, 2022
March 31, 2021
Cash (used for) provided by operating
activities
$
(53.9
)
$
71.3
Expenditures for property, plant and
equipment
(0.8
)
(9.2
)
Free cash flow
$
(54.7
)
$
62.1
(1)
The condensed consolidated statements of
cash flows for the period ended March 31, 2021 have not been
adjusted to separately disclose cash flows related to the
discontinued operations.
Zurn Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Comprehensive Income
(in Millions)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Net income
$
30.2
$
50.0
Other comprehensive income (loss):
Foreign currency translation
adjustments
2.0
(1.7
)
Change in pension and postretirement
defined benefit plans, net of tax
—
(0.1
)
Total comprehensive income
$
32.2
$
48.3
Zurn Water Solutions
Corporation and Subsidiaries
Condensed Consolidated Balance
Sheets
(in Millions, except share
amounts)
(Unaudited)
March 31, 2022
December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
73.2
$
96.6
Receivables, net
172.1
144.1
Inventories
224.3
184.5
Income taxes receivable
27.4
33.1
Other current assets
23.1
16.5
Total current assets
520.1
474.8
Property, plant and equipment, net
63.1
64.4
Intangible assets, net
176.9
179.1
Goodwill
255.0
254.1
Insurance for asbestos claims
66.0
66.0
Other assets
37.5
39.3
Total assets
$
1,118.6
$
1,077.7
Liabilities and stockholders' equity
Current liabilities:
Current maturities of debt
$
5.6
$
5.6
Trade payables
113.7
105.1
Compensation and benefits
6.6
22.0
Current portion of pension and
postretirement benefit obligations
1.3
1.3
Other current liabilities
87.3
106.4
Total current liabilities
214.5
240.4
Long-term debt
532.9
533.9
Pension and postretirement benefit
obligations
56.7
57.3
Deferred income taxes
7.7
3.1
Operating lease liability
7.4
8.9
Reserve for asbestos claims
66.0
66.0
Other liabilities
39.7
41.7
Total liabilities
924.9
951.3
Stockholders' equity:
Common stock, $0.01 par value; 200,000,000
shares authorized; shares issued and outstanding: 125,847,069 at
March 31, 2022 and 125,720,068 at December 31, 2021
1.3
1.3
Additional paid-in capital
1,440.8
1,436.9
Retained deficit
(1,175.5
)
(1,236.9
)
Accumulated other comprehensive loss
(72.9
)
(74.9
)
Total stockholders' equity
193.7
126.4
Total liabilities and stockholders'
equity
$
1,118.6
$
1,077.7
Zurn Water Solutions
Corporation and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(in Millions)
(Unaudited)
Three Months Ended (1)
March 31, 2022
March 31, 2021
Operating activities
Net income
$
30.2
$
50.0
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation
2.3
14.1
Amortization of intangible assets
3.0
9.4
Deferred income taxes
4.6
(1.3
)
Other non-cash expenses
0.5
0.7
Stock-based compensation expense
3.9
14.8
Changes in operating assets and
liabilities:
Receivables
(27.7
)
(36.9
)
Inventories
(39.6
)
(19.9
)
Other assets
(1.1
)
3.1
Accounts payable
8.4
50.7
Accruals and other
(38.4
)
(13.4
)
Cash (used for) provided by operating
activities
(53.9
)
71.3
Investing activities
Expenditures for property, plant and
equipment
(0.8
)
(9.2
)
Acquisitions, net of cash acquired
—
0.4
Proceeds from dispositions of long-lived
assets
1.3
0.7
Proceeds associated with divestiture of
discontinued operations
35.0
—
Cash provided by (used for) investing
activities
35.5
(8.1
)
Financing activities
Proceeds from borrowings of debt
10.0
—
Repayments of debt
(11.4
)
(0.5
)
Proceeds from exercise of stock
options
0.5
2.8
Taxes withheld and paid on employees'
share-based payment awards
(0.5
)
—
Repurchase of common stock
—
(0.9
)
Payment of common stock dividends
(3.8
)
(10.8
)
Cash used for financing activities
(5.2
)
(9.4
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
0.2
(2.1
)
(Decrease) increase in cash, cash
equivalents and restricted cash
(23.4
)
51.7
Cash, cash equivalents and restricted cash
at beginning of period
96.6
255.6
Cash, cash equivalents and restricted cash
at end of period
$
73.2
$
307.3
(1)
The condensed consolidated statements of
cash flows for the period ended March 31, 2021 have not been
adjusted to separately disclose cash flows related to the
discontinued operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220426006198/en/
Dave Pauli Vice President - Investor Relations 414.223.7770
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