Zurn Elkay Water Solutions (ZWS) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales were $371 million, a 4% increase from $357 million in the same quarter last year[6] - Net income from continuing operations was $36 million, with diluted EPS of $0.21, compared to $14 million and $0.08 in the prior year[6] - Adjusted EBITDA for the fourth quarter was $91 million, representing 24.6% of net sales, up from $84 million or 23.6% of net sales in the previous year[6] - Full year net sales reached $1,567 million, a 2% increase from $1,531 million in 2023, with core sales growth of 3%[6] - Full year adjusted EBITDA was $390 million, or 24.9% of net sales, compared to $340 million or 22.2% in 2023[6] - Free cash flow for the year was a record $272 million[6] - For the twelve months ended December 31, 2024, net income was $160.2 million, up from $112.7 million in 2023, indicating a year-over-year increase of 42.2%[25] - The company reported an EBITDA of $72.4 million for the three months ended December 31, 2024, compared to $54.4 million in the same period of 2023, an increase of 33.1%[27] - The company’s income from operations for the twelve months ended December 31, 2024, was $244.6 million, compared to $191.4 million in 2023, reflecting a growth of 27.8%[25] - The adjusted net income for the twelve months ended December 31, 2024, was $223.9 million, compared to $172.1 million for the same period in 2023[41] - Net income for the twelve months ended December 31, 2024, increased to $160.2 million, up from $112.7 million in the previous year, representing a growth of 42.2%[50] Cash Flow and Investments - The company repurchased $150 million of common stock and paid $57 million in dividends during the year[6] - Cash provided by operating activities rose to $293.5 million, compared to $253.9 million in the prior year, reflecting an increase of 15.6%[50] - The company reported a free cash flow of $271.7 million for the twelve months ended December 31, 2024, compared to $232.6 million in the prior year[43] - Cash used for investing activities was $20.2 million, compared to $4.6 million in the previous year, indicating a substantial increase in investment outflows[50] - Cash used for financing activities decreased to $207.5 million from $239.2 million, showing a reduction of 13.3%[50] - The company repurchased common stock amounting to $150.2 million, up from $125.1 million in the previous year, indicating a 20.5% increase in buybacks[50] Tax and Income - The provision for income taxes for the twelve months ended December 31, 2024, was $48.1 million, with an effective tax rate of 23.2%[30] - The provision for income taxes indicated a rate of 25.8% for the twelve months ended December 31, 2023[36] Stock and Shares - Basic net income per share for the three months ended December 31, 2024, was $0.21, compared to $0.08 in the same period of 2023, an increase of 162.5%[25] - The weighted-average number of shares outstanding for the three months ended December 31, 2024, was 170,583 thousand, down from 173,119 thousand in the same period of 2023[25] - The diluted earnings per share for the twelve months ended December 31, 2024, was $1.28, an increase from $0.97 in the previous year[41] Sustainability and Strategic Initiatives - The company plans to release its 2024 sustainability report, highlighting progress in sustainability initiatives[7] - The company has undertaken strategic supply chain optimization initiatives, which included accelerated depreciation of $2.0 million for the twelve months ended December 31, 2024[30] Assets and Liabilities - The total assets as of December 31, 2024, were $2,648.5 million, slightly down from $2,667.0 million as of December 31, 2023[48] - The company’s cash and cash equivalents increased to $198.0 million as of December 31, 2024, up from $136.7 million a year earlier[48] - The company experienced a loss on divestiture of asbestos liabilities and certain assets amounting to $9.3 million in the previous year, which was not present in the current year[50] - Accounts payable showed a significant change, increasing by $15.8 million compared to a decrease of $60.8 million in the previous year[50] - The company reported a decrease in inventories, net, to $2.7 million from $65.0 million, indicating a substantial reduction in stock levels[50]