Zurn Elkay Water Solutions Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable growth in revenue and profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, net sales reached $410.0 million, a 3% increase from $398.4 million in the same period of 2023. The nine-month net sales also grew to $1,195.8 million, up from $1,173.7 million year-over-year. The growth was attributed to a core sales increase across all product categories, despite a planned exit from certain residential sink products impacting results by 100 basis points.
Gross profit for the third quarter was $189.4 million, compared to $169.9 million in the prior year, while gross profit for the nine months increased to $545.8 million from $492.2 million. Income from operations for the third quarter rose to $70.2 million, a 16.8% increase from $60.1 million in Q3 2023, and for the nine months, it increased to $195.3 million from $158.6 million. The operating margin improved by 200 basis points year-over-year, driven by synergies from the Elkay merger and lower material costs.
Net income from continuing operations for the third quarter was $43.5 million, up from $35.2 million in the same quarter of 2023, while net income for the nine months increased to $123.8 million from $98.8 million. Basic net income per share from continuing operations rose to $0.25 for Q3 2024, compared to $0.20 in Q3 2023.
The company’s total assets as of September 30, 2024, were $2,704.8 million, up from $2,667.0 million at the end of 2023. Total liabilities increased to $1,118.3 million from $1,064.2 million, while total stockholders' equity decreased to $1,586.5 million from $1,602.8 million.
Strategically, Zurn Elkay completed a merger with Elkay Manufacturing Company on July 1, 2022, and has since focused on integrating operations and enhancing its product portfolio, which includes water safety and control products. The company also undertook restructuring actions during the reporting period to drive efficiencies, which included workforce reductions and facility rationalization.
In terms of cash flow, Zurn Elkay reported cash provided by operating activities of $229.9 million for the nine months ended September 30, 2024, an increase from $195.7 million in the same period of 2023. The company ended the quarter with $187.9 million in cash and cash equivalents, up from $136.7 million at the end of 2023.
Overall, Zurn Elkay's financial performance reflects a positive trajectory, supported by strategic initiatives and operational efficiencies.
About Zurn Elkay Water Solutions Corp
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