Market Overview

Franklin Electric Reports Record Third Quarter 2019 Sales and Earnings

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FORT WAYNE, Ind., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ:FELE) reported record third quarter 2019 GAAP fully diluted earnings per share (EPS) of $0.72, versus a GAAP fully diluted EPS in the third quarter 2018 of $0.63.  Third quarter 2019 sales were a record $348.4 million, compared to 2018 third quarter sales of $341.9 million. Third quarter EPS before the impact of restructuring expenses was also a record at $0.73 compared to 2018 third quarter EPS before restructuring of $0.64 (see table below for a reconciliation of GAAP EPS to EPS before restructuring). 

Gregg Sengstack, Franklin Electric's Chairman and Chief Executive Officer, commented:

"Our third quarter earnings were a record for any third quarter in the Company's history.  Our earnings per share grew by 14 percent from the third quarter 2018. Our improvement in earnings was led by our Distribution segment which grew operating income by over 70 percent as a result of more favorable weather conditions in much of the United States and acquisitions.  Our free cash flow after capital expenditures is about 65 percent higher through the first three quarters of the year versus the same period of 2018.  Despite these earnings and cash generation improvements, organic sales growth was below expectations in our Water and Fueling systems businesses."

Key Performance Indicators:

    For the Third Quarter
Earnings Before and After Restructuring   2019 2018 Change
(in millions)        
Net Income attributable to FE Co., Inc. Reported   $ 33.9   $ 30.0   13 %
Allocated Earnings   $ (0.2 ) $ (0.2 )  
Earnings for EPS Calculations   $ 33.7   $ 29.8   13 %
         
Restructuring (before tax):   $ 0.4   $ 0.3    
         
Restructuring, net of tax:   $ 0.3   $ 0.2    
         
Earnings before Restructuring   $ 34.0   $ 30.0   13 %
         
    For the Third Quarter
Earnings Per Share   2019 2018 Change
Before and After Restructuring        
(in millions except Earnings Per Share)        
         
Average Fully Diluted Shares Outstanding     46.7     47.2   -1 %
         
Fully Diluted Earnings Per Share ("EPS") Reported   $ 0.72   $ 0.63   14 %
         
Restructuring Per Share, net of tax   $ 0.01   $ 0.01    
         
Fully Diluted EPS before Restructuring   $ 0.73   $ 0.64   14 %
         


                   
  Net Sales
  United States Latin Europe, Middle Asia Total        
(in millions) & Canada America East & Africa Pacific Water Fueling Distribution Other/Elims Consolidated
                   
Q3 2018 $110.2   $31.0   $40.8   $17.3   $199.3   $77.8   $78.0   ($13.2 ) $341.9  
Q3 2019 $111.4   $30.6   $40.8   $17.0   $199.8   $78.1   $87.0   ($16.5 ) $348.4  
Change $1.2   ($0.4 ) $0.0   ($0.3 ) $0.5   $0.3   $9.0   ($3.3 ) $6.5  
% Change 1 % -1 % 0 % -2 % 0 % 0 % 12 %   2 %
                   
Foreign currency translation ($0.4 ) ($2.3 ) ($2.0 ) ($0.2 ) ($4.9 ) ($0.9 ) $0.0      
% Change 0 % -7 % -5 % -1 % -2 % -1 % 0 %    
                   
Acquisitions $2.3   $0.0   $0.0   $0.0   $2.3   $0.0   $7.3      
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