Net sales were $412.0 million and $403.2 million during the three months ended June 30, 2024 and June 30, 2023, respectively, an increase of 2% year over year. Core sales growth of 2%, including growth across multiple product categories, was offset by a 100 basis point impact from the planned exit of certain residential sink products. During the three months ended June 30, 2024, income from operations was $71.9 million compared to $54.8 million during the three months ended June 30, 2023. Income from operat ...

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Zurn Water currently has an Earnings ESP of +0.83%, which sugges ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $407.23 million, up 1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.07% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. E ...

Financial Data and Key Metrics Changes - Q1 2024 sales totaled $374 million, representing a 400 basis points increase year-over-year on a pro-forma core basis [11] - Adjusted EBITDA for Q1 increased by 24% year-over-year to $90 million, with an adjusted EBITDA margin expanding by 460 basis points to 24.1% [13] - Free cash flow generated in Q1 was $50 million, with $19 million used for share repurchases [9][14] Business Line Data and Key Metrics Changes - Mid-single-digit core sales growth was observed in non-residential end markets, while residential sales remained flattish year-over-year [11] - The drinking water segment is expected to grow at double digits, with a focus on increasing the number of filtered units installed [16] Market Data and Key Metrics Changes - The company noted steady strength in institutional markets, with some weakness in commercial and residential sectors [7] - The book-to-bill ratio was one in Q1, indicating that order growth was in line with sales growth [12] Company Strategy and Development Direction - The company is focused on the clean, safe drinking water category, aiming for double-digit growth in this segment [16] - The deployment of the Zurn Elkay Business System (ZEBS) has led to significant margin expansion and improved operational efficiency [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the margin profile established and raised the full-year margin expansion outlook from 150 basis points to 200 basis points [9][25] - The company remains cautious about the commercial market but sees continued strength in institutional markets and growth initiatives [39] Other Important Information - The company is committed to sustainability, with a focus on products that reduce water consumption and protect potable water supplies [20][21] - The company has a balanced capital allocation strategy, focusing on core business investments, M&A opportunities, and share buybacks [14][42] Q&A Session Summary Question: Insights on drinking water growth rates and filtration - Management indicated that filtered units growth is expected to be in the double-digit range, with filtration growing significantly faster [29][30] Question: Margin performance and guidance for Q3 and Q4 - Management stated that the guidance for Q2 is conservative, with confidence in sustaining margins through the year [32][34] Question: Impact of interest rates on business outlook - Management noted that while lower interest rates could help, they do not expect significant changes in growth due to the current interest rate environment [36][39] Question: M&A pipeline and cash flow outlook - Management confirmed ongoing cultivation of M&A opportunities while maintaining a strong cash flow position [40][42] Question: Variance in product category performance - Management reported no significant differences in growth rates among the product categories, with overall stability expected [44][45] Question: Regional growth and distribution strategy - Management highlighted successful rep network creation in Canada and Mexico, contributing to growth outside the U.S. [49][50] Question: Insider selling and buyback potential - Management clarified that recent insider selling was related to personal financial matters, with no indication of significant future sales [73][74]

First Quarter 2024 Financial Results April 24, 2024 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. Forwardlooking statements include statements we make concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 2024 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: 001-35475 _________________________________________________ ZURN ELKAY WATER SOLU ...

Exhibit 99.1 Press Release | April 23, 2024 | Contact Information: | | --- | --- | | For Immediate Release | Dave Pauli | | | Vice President - Investor Relations | | | 414.223.7770 | Zurn Elkay Water Solutions Reports First Quarter 2024 Financial Results Investor call scheduled for Wednesday, April 24, 2024 at 8:30 a.m. Eastern Time MILWAUKEE, WI (USA) - Zurn Elkay Water Solutions Corporation (NYSE:ZWS) First Quarter Highlights Todd A. Adams, Chairman and Chief Executive Officer, commented, "We had a solid ...

Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Q4 2023 Earnings Conference Call February 7, 2024 8:30 AM ET Company Participants David Pauli - VP, IR Todd Adams - Chairman and CEO Mark Peterson - SVP and CFO Conference Call Participants Bryan Blair - Oppenheimer Jeff Hammond - KeyBanc Capital Markets Vivek Srivastava - Goldman Sachs Brett Linzey - Mizuho Adam Farley - Stifel Operator Good morning, and welcome to the Zurn Elkay Water Solutions Corporation Fourth Quarter 2023 Earnings Results Conference Ca ...

Economic and Market Risks - Economic and financial market weakness may adversely affect Zurn Elkay's financial condition and results of operations, particularly in cyclical end markets[73][74] - Sales to the construction industry are influenced by factors such as consumer confidence, employment rates, and interest rates, with potential material impacts on demand and profit margins[75] - The company's business could be adversely affected by increased frequency of severe weather events, which could delay or halt construction activity and reduce demand for its products[101] - Climate change could lead to reduced demand for certain of the company's products and alter its product sales mix in ways that reduce margins[103] - The company's business and operations could be adversely affected by future outbreaks of infectious diseases, including disruptions to global supply chains and increased compensation expenses[105] Customer and Sales Concentration - Zurn Elkay's top five customers accounted for approximately 39% of consolidated net sales in 2023, with one customer representing 20%[88] - Zurn Elkay relies on 1,055 independent sales representatives and approximately 70 third-party warehouses, with the top three distributors generating 33% of consolidated net sales in 2023[90] Supply Chain and Raw Material Risks - Raw material cost increases or availability issues, including due to tariffs or trade protection measures, could adversely affect profitability and operations[94] - Zurn Elkay does not typically hedge against raw material price risks, which could lead to disruptions in business operations[95] - Cost of materials represents approximately 37% of net sales, with strategic sourcing aimed at reducing supplier numbers and material costs[182] Operational and Integration Risks - Ongoing updates to the company's ERP systems could result in substantial business interruptions if ineffective[97] - Zurn Elkay faces risks related to the integration of acquisitions and divestitures, which could adversely affect financial condition and results of operations[83][84] - Integration challenges with Elkay's business may hinder the realization of anticipated synergies and cost savings[134] Intellectual Property and Competition - The company's intellectual property protection efforts may not prevent competitors from infringing or challenging its rights, potentially affecting product margins[92] - The company's inability to attract and retain key personnel in a highly competitive industry could materially affect its business[100] Financial and Debt Management - The company's debt levels could adversely affect its ability to raise additional capital, react to economic changes, make acquisitions, and implement its capital allocation strategy[107] - The company recently amended its credit facilities to switch from LIBOR-based loans to SOFR-based loans, which could expose future borrowings to less favorable rates[109][110] - The company's credit agreement contains various covenants that restrict its ability to incur additional debt, pay dividends, make certain investments, and engage in other business activities[112][113] - The company's required cash contributions to its pension plans may increase further, which could reduce cash available for other obligations and adversely affect its financial condition[118] - The company's Net First Lien Leverage Ratio as of December 31, 2023, was 1.2 to 1.0, well below the maximum allowed ratio of 5.0 to 1.0[224] - Total indebtedness stood at $495.3 million as of December 31, 2023, including $473.6 million in term loans and $21.7 million in finance leases[236] - The weighted-average effective interest rate on the term loan facility was 7.47% as of December 31, 2023, with a 100 basis point increase in Term SOFR potentially raising annual interest expense by $4.9 million[248][249] Technology and Cybersecurity Risks - The company's technology systems could be vulnerable to disability, failures, or unauthorized access, which could impede its ability to record or process orders, manufacture and ship products, and protect sensitive data[98] Regulatory and Compliance Risks - Compliance with government regulations and third-party certification requirements could increase operational costs and impact profitability[121] - Climate change-related regulations may impose significant costs on the company, including energy requirements and environmental monitoring[122] - Environmental compliance costs and liabilities under environmental laws may result in significant capital expenditures[125] - Potential tax changes, including the OECD's Pillar 2 global minimum tax rate of 15%, could affect the company's financial condition[124] Legal and Litigation Risks - Product liability claims and litigation could adversely affect the company's reputation and financial performance[128] - The Spin-Off Transaction may result in substantial additional taxes if it fails to qualify as a tax-free reorganization[129] Financial Performance and Liquidity - The company's backlog as of December 31, 2023, is entirely scheduled to ship during 2024[89] - The company's goodwill and intangible assets totaled $796.0 million and $952.4 million respectively as of December 31, 2023, representing a substantial portion of its assets[116] - The company recognized $2.5 million of fixed asset impairment charges during the year ended December 31, 2023, with no impairment charges in 2022 or 2021[187] - The company recorded a non-cash actuarial gain of $2.0 million, $1.9 million, and $1.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, related to retirement benefit re-measurements[191] - The company's liability for unrecognized tax benefits was $5.6 million and $5.5 million as of December 31, 2023 and 2022, respectively[194] - Valuation allowances against deferred tax assets were $12.0 million and $32.2 million as of December 31, 2023 and 2022, respectively[195] - The company recognized a loss of $11.4 million on the divestiture of asbestos liabilities and certain assets during the year ended December 31, 2023[198] - The Elkay Merger was completed on July 1, 2022, for a purchase price of $1,457.8 million, including $1,411.9 million in common stock and $45.9 million in net cash payments[200] - The company received $35.0 million from Regal Rexnord Corporation in 2022 due to final working capital and cash balances exceeding targets in the PMC spin-off transaction[202] - Income from discontinued operations, net of tax, was $8.5 million, $4.7 million, and $71.2 million for the years ended December 31, 2023, 2022, and 2021, respectively[203] - The company recorded restructuring charges of $15.3 million, $15.4 million, and $3.7 million for the years ended December 31, 2023, 2022, and 2021, respectively[207] - Net sales for the year ended December 31, 2023, were $1,530.5 million, a 19.4% increase year over year, with core sales decreasing by 1% excluding the impact of the Elkay merger[208] - Income from operations for the year ended December 31, 2023, was $191.4 million, or 12.5% of net sales, a 78.7% increase year over year[209] - Interest expense, net for the year ended December 31, 2023, was $38.5 million, compared to $26.9 million for the year ended December 31, 2022[210] - Net income from continuing operations for the year ended December 31, 2023, was $104.2 million, compared to $57.0 million for the year ended December 31, 2022[215] - Net income for the year ended December 31, 2023, was $112.7 million, compared to $61.7 million for the year ended December 31, 2022[216] - Adjusted EBITDA for the year ended December 31, 2023, was $339.5 million, compared to net income of $112.7 million for the same period[223] - The company's primary sources of liquidity include available cash and cash equivalents, cash flow from operations, and borrowing availability under its $200.0 million revolving credit facility[228] - Cash and cash equivalents increased to $136.7 million as of December 31, 2023, up from $124.8 million in 2022[229] - Net cash provided by operating activities surged to $253.9 million in 2023, compared to $97.0 million in 2022[233] - Cash used for investing activities decreased to $4.6 million in 2023 from $6.6 million in 2022, with $21.3 million in capital expenditures partially offset by $9.0 million from an insurance settlement and $7.7 million from asset sales[234] - Cash used for financing activities rose to $239.2 million in 2023, up from $61.1 million in 2022, driven by $50.4 million in dividends, $125.1 million in stock repurchases, and $64.9 million in debt payments[235] - The company had $189.0 million in additional borrowing capacity under its revolving credit facility as of December 31, 2023, reduced by $11.0 million due to outstanding letters of credit[229] Foreign Exchange and International Operations - Approximately 11% of sales originated outside the U.S. in 2023, with foreign currency translation adjustments increasing stockholders' equity by $3.6 million[246] - Stockholders' equity would decrease by approximately $11.7 million if the USD strengthened by 10% as of December 31, 2023[246] - The company did not enter into foreign currency forward contracts as of December 31, 2023[247] Merger and Acquisitions - The Merger with Elkay recorded substantial goodwill and intangible assets, which could lead to future impairment charges[133] - Former Elkay stockholders holding approximately 23% of Zurn Elkay's common stock may impact the trading price if they sell shares[136]

Financial Data and Key Metrics Changes - Q3 2023 sales were $398 million, with a proforma increase of 100 basis points year-over-year [12] - Adjusted EBITDA increased 15% year-over-year to $96 million, with an adjusted EBITDA margin of 24.1%, up 410 basis points from the prior year [14] - Record free cash flow of almost $100 million was achieved in the quarter, with a net debt leverage of 1.2 times [7][15] Business Line Data and Key Metrics Changes - Core sales growth in non-residential markets saw a mid-single digit increase, while residential markets experienced a mid-teens decline [13] - Proforma orders increased high single digits year-over-year, with non-residential order growth above the fleet average [13] Market Data and Key Metrics Changes - The company expects mid-teens organic growth for drinking water in 2023, despite some market uncertainty [10] - The non-residential construction market is projected to remain steady, with institutional starts averaging 80 to 90 million square feet per quarter over the past five years [29] Company Strategy and Development Direction - The company plans to introduce more new products in the drinking water category over the next 12 months than in the past decade [9] - Focus on sustainability and addressing climate risks related to water scarcity is a core part of the business strategy [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased market uncertainty but does not foresee it as a significant issue for 2024 and 2025 [11] - The company is confident in its ability to maintain high growth rates in drinking water and filtration despite potential market challenges [48] Other Important Information - The company has received high sustainability ratings from various agencies, ranking in the top percentages of its industry [19] - A new PFAS filter has been launched, enhancing the company's product offerings in response to regulatory changes [24] Q&A Session Summary Question: What prevents continued growth in drinking water for 2024? - Management sees no significant challenges to growth in drinking water, expecting high confidence in continued growth [48] Question: What are the impacts of new institutional versus commercial non-residential exposures? - Management anticipates a slight decline in commercial construction but sees potential for growth in other areas [50] Question: What caused September's performance to be below expectations? - The decline was attributed to retrofit and replacement business, particularly in the Northwest and New England [55] Question: What is the expected impact of SKU rationalization on organic growth in 2024? - The impact is expected to be modest, around $9 to $12 million for the year [83] Question: How does the company view pricing in a slower growth environment? - Management expects to maintain pricing power and sees opportunities for modest price increases in 2024 [88]