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]

Third Quarter 2023 Financial Results November 1, 2023 ZUI'N ELKAY 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 concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other i ...

Merger and Acquisition - The Elkay Merger was completed on July 1, 2022, for a purchase price of $1,457.8 million, which included $1,411.9 million in Zurn's common stock and $45.9 million in net cash payments[110] Financial Performance - Net sales for the three months ended September 30, 2023, were $398.4 million, a decrease of 4.6% from $417.7 million in the same period of 2022[116] - Income from operations for the three months ended September 30, 2023, was $60.1 million, compared to a loss of $10.1 million in the same period of 2022, representing a significant improvement[117] - Net income for the three months ended September 30, 2023, was $41.4 million, compared to a net loss of $19.1 million for the same period in 2022[123] - For the nine months ended September 30, 2023, net sales increased to $1,173.7 million, a 24.7% increase year-over-year, driven by a 28% increase from the Elkay combination[124] - Income from operations for the nine months ended September 30, 2023, was $158.6 million, an increase of 81.7% from $87.3 million in the same period of 2022[125] - Net income for the nine months ended September 30, 2023, was $98.8 million, a significant increase from $47.5 million for the same period in 2022, representing a year-over-year growth of 107%[129] - Diluted net income per share increased to $0.56 for the nine months ended September 30, 2023, compared to $0.33 for the same period in 2022, reflecting a 70% increase[129] - Adjusted EBITDA for the nine months ended September 30, 2023, was $255.4 million, compared to $200.0 million for the same period in 2022, indicating a growth of 27.7%[135] Cash Flow and Investments - Cash provided by operating activities was $195.7 million for the nine months ended September 30, 2023, compared to $12.6 million in the same period of 2022, showing a substantial increase driven by lower cash use for trade working capital and higher net income[144] - Cash used for investing activities was $6.6 million for the nine months ended September 30, 2023, compared to $12.8 million in the same period of 2022, reflecting a decrease in capital expenditures[145] - Cash used for financing activities was $141.5 million for the nine months ended September 30, 2023, compared to $23.1 million for the same period in 2022[146] - The company repurchased $100.2 million of its common stock during the nine months ended September 30, 2023, up from $20.1 million in dividends paid in the same period of 2022[146] Tax and Interest - Interest expense for the three months ended September 30, 2023, was $9.9 million, up from $8.0 million in the same period of 2022, primarily due to higher interest rates[118] - The effective income tax rate for the three months ended September 30, 2023, was 26.2%, compared to (9.1)% for the same period in 2022[120] - The effective income tax rate for the nine months ended September 30, 2023, was 27.7%, down from 32.9% in the same period of 2022, primarily due to various tax accruals and benefits[128] Discontinued Operations - Net income from discontinued operations for the three months ended September 30, 2023, was $6.2 million, compared to $0.0 million in the same period of 2022[123] - Net income from discontinued operations for the nine months ended September 30, 2023, was $8.1 million, up from $0.8 million in the same period of 2022, marking a significant increase[129] Debt and Leverage - Total indebtedness as of September 30, 2023, was $554.2 million, consisting of $532.4 million in term loans and $21.8 million in finance leases[147] - The current maturities of debt amounted to $6.3 million, with the long-term portion at $547.9 million[147] - The Net First Lien Leverage Ratio as of September 30, 2023, was 1.26 to 1.00, well below the maximum allowable ratio of 5.00 to 1.00, indicating strong compliance with debt covenants[136] Risk Management - The company has exposure to market risks from foreign currency exchange rates and interest rates, managed through operating activities and derivative financial instruments[150] Internal Controls - As of September 30, 2023, the company's disclosure controls and procedures were deemed adequate and effective by the CEO and CFO[152] - There were no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[154] Restructuring - Restructuring charges for the three months ended September 30, 2023, totaled $2.2 million, compared to $11.7 million in the same period of 2022[115] Other Expenses - Other expense, net for the nine months ended September 30, 2023, was $3.3 million, a shift from other income of $0.3 million in the same period of 2022, largely due to increased interest costs and environmental remediation accruals[127]

Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Q2 2023 Earnings Conference Call July 25, 2023 8:30 AM ET Company Participants David Pauli - VP, IR Todd Adams - President, CEO & Chairman Mark Peterson - SVP & CFO Conference Call Participants Bryan Blair - Oppenheimer Jeffrey Hammond - KeyBanc Capital Markets Andrew Krill - Deutsche Bank Joseph Ritchie - Goldman Sachs Group Brett Linzey - Mizuho Securities Nathan Jones - Stifel, Nicolaus & Company Michael Halloran - Robert W. Baird & Co. Operator Good morn ...

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 June 30, 2023 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 SOLUT ...

Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Q1 2023 Earnings Conference Call April 26, 2023 8:30 AM ET Company Participants Dave Pauli - Vice President-Investor Relations Todd Adams - Chairman & Chief Executive Officer Mark Peterson - Senior Vice President & Chief Financial Officer Conference Call Participants Bryan Blair - Oppenheimer Jeff Hammond - KeyBanc Mike Halloran - Baird Joe Ritchie - Goldman Sachs Nathan Jones - Stifel Operator Good morning, and welcome to the Zurn Elkay Water Solutions Corp ...

First Quarter 2023 Financial Results April 26, 2023 ZUI'N ELKAY 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 concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other inf ...

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, 2023 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-K (Mark one) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _________________________________________________ ZURN ELKAY WATER SOLUTIONS CORPORATION (Exact name of registrant as ...

Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Q4 2022 Earnings Conference Call February 8, 2023 8:30 AM ET Company Participants Dave Pauli - VP of IR Todd Adams - Chairman and CEO Mark Peterson - SVP and CFO Conference Call Participants Bryan Blair - Oppenheimer Jeff Hammond - KeyBanc Capital Markets Mike Halloran - Baird Vivek Srivastava - Goldman Sachs Nathan Jones - Stifel Operator Good morning, and welcome to the Zurn Elkay Water Solutions Corporation Fourth Quarter 2022 Earnings Results Conference ...