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A. O. Smith(AOS) - 2023 Q3 - Quarterly Report
2023-10-27 17:17
North America Segment Performance - North America segment sales increased by $57.0 million in Q3 2023 compared to Q3 2022, driven by higher residential water heater volumes[91] - North America segment earnings rose 19.9% in Q3 2023 to $170.0 million, with segment margins improving to 23.9%[91] - North America segment earnings for Q3 2023 were $170.0 million, a 19.9% increase from $141.8 million in Q3 2022[104] - North America water treatment product sales are anticipated to grow 5-7% in 2023, primarily driven by pricing[87] - Commercial water heater industry volumes in 2023 are expected to increase mid-teens compared to 2022[87] - Boiler sales in North America decreased 11% in the first nine months of 2023, with a revised outlook of a high single-digit decrease for the full year[87] - The company recorded pre-tax pension settlement income of $5.0 million in the North America segment and $1.0 million in Corporate expenses[109] - The company incurred pre-tax pension settlement expense of $346.8 million in the North America segment and $70.5 million in Corporate expenses[109] - The company reported pre-tax pension expense of $9.7 million in the North America segment and $2.0 million in Corporate expenses[109] Rest of World Segment Performance - Rest of World segment sales in Q3 2023 were $233.4 million, up $3.2 million (1.4%) compared to $230.2 million in Q3 2022, driven by higher volumes in China, partially offset by $11 million unfavorable foreign currency translation[93] - Rest of World segment earnings in Q3 2023 were $23.2 million, up from $21.8 million in Q3 2022, with segment margins improving to 9.9% from 9.5%[93] - Adjusted Rest of World segment earnings for the first nine months of 2023 were $69.3 million, with an adjusted segment margin of 9.9%, excluding a $12.5 million impairment expense[93] - Rest of World segment earnings for Q3 2023 were $23.2 million, a 6.4% increase from $21.8 million in Q3 2022[104] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses[109] Financial Performance and Projections - Company-wide gross profit margin increased to 38.0% in Q3 2023 from 34.9% in Q3 2022, primarily due to lower material costs[89] - The company expects 2023 consolidated sales to increase by 2% compared to 2022, excluding potential future acquisitions[87] - The company expects 2023 consolidated sales to increase by 2% compared to 2022, driven by a 4% increase in residential unit volumes, higher commercial water heater volumes, and increased water treatment sales[94] - Adjusted earnings for the first nine months of 2023 were $430.4 million, compared to $357.1 million in the same period last year, with adjusted EPS of $2.84 versus $2.28 in 2022[101] - Earnings Before Provision for Income Taxes (GAAP) for Q3 2023 was $176.4 million, compared to $144.7 million in Q3 2022, representing a 21.9% increase[104] - Total Segment Earnings (non-GAAP) for Q3 2023 was $193.2 million, up 18.1% from $163.6 million in Q3 2022[104] - Adjusted EPS guidance for 2023 is $3.70 to $3.80, compared to 2022 adjusted EPS of $3.14[108] Cash Flow and Debt Management - Cash provided by operating activities in the first nine months of 2023 was $439.0 million, up from $214.7 million in the same period last year, with free cash flow of $396.3 million compared to $163.8 million in 2022[97] - The company expects 2023 cash provided by operating activities to be between $640 million and $665 million, with free cash flow projected between $575 million and $600 million[97] - Total debt decreased by $214.9 million in the first nine months of 2023, with the leverage ratio improving to 6.4% from 16.5% at the end of 2022[97] - Free cash flow (non-GAAP) for the first nine months of 2023 was $396.3 million, a 141.9% increase from $163.8 million in the same period of 2022[107] Share Repurchases and Tax Rates - The company repurchased 2,388,000 shares in the first nine months of 2023 at a total cost of $161.4 million, with plans to spend approximately $300 million on stock repurchases in 2023[97] - Effective income tax rate for the nine months ended September 30, 2023 was 24.7%, with an estimated annual rate of approximately 24% for 2023[89] China Market and Currency Impact - Sales in China are projected to grow 3-5% in 2023 in local currency, but currency translation is expected to negatively impact sales by approximately 6%[87] Impairment and Pension Expenses - The company recognized a non-cash impairment charge of $15.6 million in Q1 2023 related to the sale of its business in Turkey[87] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses[109] - The company recorded pre-tax pension settlement income of $5.0 million in the North America segment and $1.0 million in Corporate expenses[109] - The company incurred pre-tax pension settlement expense of $346.8 million in the North America segment and $70.5 million in Corporate expenses[109] - The company reported pre-tax pension expense of $9.7 million in the North America segment and $2.0 million in Corporate expenses[109]
A. O. Smith(AOS) - 2023 Q3 - Earnings Call Transcript
2023-10-26 16:40
A. O. Smith Corporation (NYSE:AOS) Q3 2023 Results Conference Call October 26, 2023 10:00 AM ET Company Participants Helen Gurholt - VP, IR and Financial Planning & Analysis Kevin Wheeler - Chairman and CEO Chuck Lauber - CFO Conference Call Participants Saree Boroditsky - Jefferies Nathan Jones - Stifel Bryan Blair - Oppenheimer Susan Maklari - Goldman Sachs Andy Kaplowitz - Citigroup Matt Summerville - D.A. Davidson & Company Damian Karas - UBS Operator Welcome to the A. O. Smith’s Third Quarter 2023 Earn ...
A. O. Smith(AOS) - 2023 Q2 - Earnings Call Presentation
2023-08-11 15:04
Second Quarter 2023 Results Participants Kevin J. Wheeler Charles T. Lauber Helen E. Gurholt Chairman and Executive Vice President Vice President - Investor Relations, Chief Executive Officer and Chief Financial Officer Financial Planning & Analysis ...
A. O. Smith(AOS) - 2023 Q2 - Earnings Call Transcript
2023-07-27 17:56
A O Smith Corporation (NYSE:AOS) Q2 2023 Earnings Conference Call July 27, 2023 10:00 AM ET Company Participants Helen Gurholt - VP, IR and Financial Planning & Analysis Kevin Wheeler - Chairman, President, & CEO Charles Lauber - EVP & CFO Conference Call Participants Matt Summerville - D.A. Davidson & Co. Michael Halloran - Robert W. Baird & Co. Joseph Nolan - Longbow Research Adam Farley - Stifel, Nicolaus & Company Damian Karas - UBS Andrew Kaplowitz - Citigroup Jeffrey Hammond - KeyBanc Capital Markets ...
A. O. Smith(AOS) - 2023 Q2 - Quarterly Report
2023-07-27 16:00
North America Segment Performance - North America segment sales in Q2 2023 were $722.3 million, a decrease of 2.9% compared to $744.1 million in Q2 2022, primarily due to lower boiler volumes and unfavorable pricing[90] - North America segment earnings in Q2 2023 increased by 24.5% to $199.1 million, driven by lower material costs and higher water heater volumes[90] - North America segment margin in Q2 2023 improved to 27.6%, up from 21.5% in Q2 2022[90] - North America segment earnings (non-GAAP) for Q2 2023 were $199.1 million, up 24.5% from $159.9 million in Q2 2022[102] - Adjusted North America segment earnings (non-GAAP) for the first six months of 2023 were $382.7 million, up 20.8% from $316.9 million in the same period of 2022[102] - North America water treatment product sales are expected to increase 5-7% in 2023, driven by pricing and consumer demand[86] - Pension settlement income for the first six months of 2023 included $5.0 million in the North America segment[107] Rest of World Segment Performance - Rest of World segment sales in Q2 2023 were $244.2 million, up $14.3 million (6.2%) compared to Q2 2022, driven by strong demand in China for water treatment products[91] - Rest of World segment earnings in Q2 2023 were $28.3 million, up 56.4% from $18.1 million in Q2 2022, with segment margin improving to 11.6% from 7.9%[91] - Adjusted Rest of World segment earnings for the first six months of 2023 were $46.1 million, with an adjusted segment margin of 10.0%, excluding a $12.5 million impairment expense[91] - Rest of World segment earnings (non-GAAP) for Q2 2023 grew to $28.3 million, a 56.4% increase from $18.1 million in Q2 2022[102] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment for the first six months of 2023[107] Consolidated Financial Performance - Consolidated sales in Q2 2023 were $960.8 million, a slight decrease of 0.5% compared to $965.9 million in Q2 2022[88] - Gross profit margin in Q2 2023 increased to 40.0%, up from 34.6% in Q2 2022, primarily due to lower material costs[88] - The company expects 2023 consolidated sales to be approximately flat to up 2% compared to 2022, excluding potential future acquisitions[86] - The company expects 2023 consolidated sales to be flat to up 2% compared to 2022, with full-year adjusted EPS guidance of $3.45 to $3.60[92] - Adjusted earnings for the first six months of 2023 were $295.0 million, up 17.8% from $250.5 million in the same period last year[99] - Adjusted EPS for the first six months of 2023 was $1.94, up 22.0% from $1.59 in the same period last year[99] - Earnings Before Provision for Income Taxes (GAAP) for Q2 2023 increased to $208.9 million, up from $165.3 million in Q2 2022, representing a 26.4% growth[102] - Total Segment Earnings (non-GAAP) for Q2 2023 reached $227.4 million, compared to $178.0 million in Q2 2022, a 27.8% increase[102] - Adjusted EPS guidance for 2023 is projected to be between $3.45 and $3.60, compared to the 2022 adjusted EPS of $3.14[107] Cash Flow and Debt Management - Cash provided by operating activities in the first six months of 2023 was $260.2 million, up 378.3% from $54.4 million in the same period last year[95] - The company expects 2023 free cash flow to be between $550 million and $600 million, with capital expenditures projected at $70 to $75 million[95] - Total debt decreased by $138.5 million in the first six months of 2023, with leverage ratio improving to 9.8% from 16.5% at the end of 2022[95] - The company repurchased 1,075,000 shares in the first six months of 2023 at a total cost of $69.6 million, with plans to spend approximately $300 million on stock repurchases in 2023[95] - Free cash flow (non-GAAP) for the first six months of 2023 was $236.0 million, a significant increase from $23.7 million in the same period of 2022[105] - The company's cash provided by operating activities (GAAP) for the first six months of 2023 was $260.2 million, compared to $54.4 million in the same period of 2022[105] Impairment and Tax Expenses - The company recognized a non-cash impairment charge of $15.6 million in Q1 2023 related to the sale of its business in Turkey[86] - The company's effective income tax rate for the six months ended June 30, 2023 was 25.3%, up from 23.6% in the same period last year[89] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses for the first six months of 2023[107] - Pension settlement income for the first six months of 2023 included $1.0 million in Corporate expenses[107] China Market Outlook - In China, the company projects 2023 sales growth of 3-5% in local currency, but expects a negative currency translation impact of approximately 5%[86]
A. O. Smith(AOS) - 2023 Q1 - Earnings Call Transcript
2023-04-27 17:17
A. O. Smith Corporation (NYSE:AOS) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Helen Gurholt - Vice President, Investor Relations and Financial Planning and Analysis Kevin Wheeler - Chairman and CEO Chuck Lauber - Chief Financial Officer Conference Call Participants Michael Halloran - Baird Saree Boroditsky - Jefferies Susan Maklari - Goldman Sachs Matt Summerville - D.A. Davidson & Co. Damian Karas - UBS Andrew Kaplowitz - Citigroup Jeff Hammond - KeyBanc Capital Market ...
A. O. Smith(AOS) - 2023 Q1 - Earnings Call Presentation
2023-04-27 17:14
First Quarter 2023 Results Participants Kevin J. Wheeler Chairman and Chief Executive Officer Charles T. Lauber Executive Vice President and Chief Financial Officer Helen E. Gurholt Vice President - Investor Relations, Financial Planning & Analysis 2 Forward Looking Statements This presentation contains statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of wo ...
A. O. Smith(AOS) - 2023 Q1 - Quarterly Report
2023-04-27 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________ FORM 10-Q ______________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------|------------------------------------ ...
A. O. Smith(AOS) - 2022 Q4 - Annual Report
2023-02-13 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K 1 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-475 A. O. Smith Corporation (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 11270 West Park Place, Milw ...
A. O. Smith(AOS) - 2022 Q4 - Earnings Call Transcript
2023-01-31 17:55
A. O. Smith Corporation (NYSE:AOS) Q4 2022 Earnings Conference Call January 31, 2023 10:00 AM ET Company Participants Helen Gurholt - Head of Investor Relations Kevin Wheeler - Chairman and Chief Executive Officer Chuck Lauber - Chief Financial Officer Conference Call Participants Saree Boroditsky - Jefferies LLC Michael Halloran - Robert W. Baird Jeff Hammond - KeyBanc Capital Markets Will Jellison - D.A. Davidson Charles Perron - Goldman Sachs David MacGregor - Longbow Research Lawrence De Maria - William ...