Rexnord Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year Ending March 31, 2018
January 31, 2018 at 05:00 pm
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Rexnord Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported net sales of $492.3 million compared to $451.8 million a year ago. Income from operations was $63.2 million compared to $32.8 million a year ago. Income before income taxes was $31.6 million compared to $1.4 million a year ago. Net income attributable to company's common stockholders was $75.8 million or $0.67 per diluted share compared to $1.7 million or $0.02 per basic and diluted share a year ago. Adjusted EBITDA was $94.9 million compared to $79.2 million a year ago. Adjusted net income was $44.9 million or $0.37 per diluted share compared to $25.9 million or $0.25 per diluted share a year ago. Third-quarter operational results were at the higher end of the company's expectations, as the company leveraged the acceleration in sales growth with the company's improved cost structure to deliver 20% year-over-year Adjusted EBITDA growth.
For the nine months, the company reported net sales of $1,490.8 million compared to $1,414.6 million a year ago. Income from operations was $184.2 million compared to $123.9 million a year ago. Income before income taxes was $110.9 million compared to $43.4 million a year ago. Net income attributable to company's common stockholders was $120.5 million or $1.13 per diluted share compared to $45.2 million or $0.43 per diluted share a year ago. Adjusted EBITDA was $279.0 million compared to $248.5 million a year ago. Adjusted net income was $101.3 million or $0.96 per diluted share compared to $101.6 million or $0.97 per basic and diluted share a year ago. Cash provided by operating activities was $121.9 million compared to $122.1 million a year ago. Expenditures for property, plant and equipment was $25.1 million compared to $44.0 million a year ago. Free cash flow was $96.8 million compared to $78.1 million a year ago.
The company provided earnings guidance for the fiscal year ending March 31, 2018. The company increasing fiscal 2018 outlook to reflect the positive demand trends the company experiencing across the company's primary end markets and the impact of recent U.S. tax law changes. The company now project fiscal 2018 net income attributable to the company's common stockholders to be in a range of $155 million to $159 million, adjusted EBITDA to be in a range of $381 million to $387 million, and the company's free cash flow to exceed net income. Interest expense, net of $77 million. Income tax benefit of $9 million. Depreciation and amortization of $88 million.
Zurn Elkay Water Solutions Corp is a pure-play water management company. The Company designs, procures, manufactures, and markets a sustainable product portfolio of specification-driven water management solutions to improve health, human safety and the environment. The Company's product portfolio includes professional grade water safety and control products, flow system products, hygienic and environmental products, and filtered drinking water products for public and private spaces. Its products are marketed and sold under various brand names, including Zurn, Elkay, Wilkins, Green Turtle, World Dryer, StainlessDrains.com, JUST, Hadrian, Wade, and Halsey Taylor. It serves various range of institutional and commercial end markets, and waterworks and residential end markets. The institutional construction end users include education, healthcare, and government segments. The commercial construction end users include retail, office, lodging, dining, warehouse, and sports arena segments.
Rexnord Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year Ending March 31, 2018