Franklin Electric Reports Record Third Quarter 2021 Results
Third quarter 2021 GAAP fully diluted earnings per share (EPS) was $0.98, versus GAAP fully diluted EPS in the third quarter 2020 of $0.82.
“We continued to break records in the third quarter of 2021, as we once again delivered the highest consolidated net sales, operating income, and EPS for any quarter in Franklin’s history. Demand remains strong across the business, with notably strong performance in our Distribution business, which posted impressive year-over-year sales growth of 43 percent. At the same time, our Water Systems and Fueling Systems segments maintained a remarkable pace with sales growing 28 and 18 percent, respectively,” commented Gregg Sengstack, Franklin Electric’s Chairperson and Chief Executive Officer.
“While supply chain challenges continue throughout the global economy, our team remains focused on managing these on-going challenges to meet our customers’ needs. The integration of recent acquisitions within Water Treatment continues to progress and offers a promising foundation to drive growth in our Global Water business. We look forward to capitalizing on sustained momentum in all of our business segments across the globe and drive value for our shareholders as we execute our strategic plan,” Mr. Sengstack concluded.
Water Systems sales, a new record for any quarter, were $260.7 million in the third quarter 2021, an increase of $57.8 million or 28 percent versus the third quarter 2020. Water Systems sales, excluding acquisitions and the impact of foreign currency translation, were up about 11 percent compared to the third quarter 2020. Sales of groundwater pumping equipment and sales of both surface pumping and dewatering equipment increased due to strong end market demand. Water Systems operating income in the third quarter was $36.8 million driven by higher sales. Third quarter 2020 Water Systems operating income was $36.6 million.
Distribution sales, a new third quarter record, were $140.2 million in the third quarter 2021. The Distribution segment organic sales increased 30 percent compared to the third quarter of 2020. Revenue growth was driven by broad-based demand in all regions and product categories. The Distribution segment operating income was $12.3 million in the third quarter of 2021 compared to third quarter 2020 operating income of $6.4 million.
Fueling Systems sales, a new record for any quarter, were $81.0 million in the third quarter 2021, an increase of $12.6 million versus the third quarter 2020. Fueling Systems sales in the U.S. and Canada increased by about 27 percent compared to the third quarter 2020. The increase was due to higher demand for Fuel Management and Pumping Systems and Piping. Outside the U.S. and Canada, Fueling Systems revenues decreased by about 1 percent, as sales increases of 11 percent in the rest of the world outside of China were offset by lower sales in China. Fueling Systems operating income in the third quarter was $23.9 million, compared to $18.9 million in the third quarter of 2020, driven by higher sales, as well as favorable geographic and product mix.
Net cash flows from operating activities for the first nine months of 2021 were $93.9 million versus $133.7 million in the same period in 2020. The decrease was primarily due to higher working capital requirements in support of higher revenues.
The Company is raising our most recent full year 2021 earnings per share before restructuring expenses to be in the range from $2.99 to $3.07.
Source: Franklin Electric Co., Inc.