Second Quarter 2024 Highlights Consolidated net sales of $543.3 million, a decrease of 5% to the prior year, with lower sales across all three segments Operating income was $79.1 million with operating margin of 14.6% GAAP fully diluted earnings per share (EPS) was $1.26 FORT WAYNE, Ind., July 23, 2024 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its second quarter financial results for fiscal year 2024. Second quarter 2024 net sales were $543.3 million, compared to second quarter 2023 net sales of $569.1 million. Second quarter 2024 operating income was $79.1 million, compared to second quarter 2023 operating income of $80.9 million. Second quarter 2024 EPS was $1.26, versus EPS in the second quarter 2023 of $1.27. "The Franklin team achieved solid results in the second quarter, marking one of the strongest quarters from an earnings perspective in Franklin's history. We continue to deliver margin expansion on sales below the record levels reached in the prior year period. While unfavorable weather continued to adversely impact sales, strong operational performance in the Water Systems and Fueling Systems segments helped offset this headwind," commented Gregg Sengstack, Franklin Electric's Executive Chairperson. "Franklin Electric's diverse product line, customer base, and geographic exposure continue to prove resilient despite macroeconomic, geopolitical, and weather-related pressures. These factors, along with our great people and strong working capital position, give us confidence as we look towards the back half of the year." "It has been an incredible journey working with the exceptional team here at Franklin Electric. I look forward to continuing to support our mission and our new CEO, Joe Ruzynski, in my position as Executive Chairperson." concluded Mr. Sengstack. Segment Summaries Water Systems net sales were $315.6 million in the second quarter, a decrease of $6.1 million or 2 percent compared to the record second quarter sales of 2023. The sales decrease was driven by lower sales of large dewatering pumps, which had a record quarter last year, partially offset by sales increases in all other surfaces products, water treatment products and groundwater products. Water Systems operating income in the second quarter 2024 was $62.3 million, a new quarterly record for any quarter. Second quarter 2023 Water Systems operating income was $50.8 million. Distribution net sales were $190.5 million, a decrease of $2.6 million or 1 percent compared to the second quarter 2023. Sales decreases were driven by the continued negative impact of wet weather across the U.S. that has delayed contractor installations, partially offset by sales from a recent acquisition. The Distribution segment operating income in the second quarter 2024 was $9.8 million. Second quarter 2023 Distribution operating income was $17.8 million. Fueling Systems net sales were $73.1 million in the second quarter 2024, a decrease of $7.3 million or 9 percent compared to the second quarter 2023. Sales decreases were driven by lower volumes. Fueling Systems operating income in the second quarter 2024 was $26.0 million. Second quarter 2023 Fueling Systems operating income was $26.7 million. 2024 Guidance The Company is maintaining its sales guidance for full year 2024 to be in the range of $2.10 billion to $2.17 billion and reducing its EPS guidance for full year 2024 to be in the range of $4.16 to $4.34 which incorporates the Company's first half performance and its outlook for continued solid execution in the second half while maintaining strong margins similar to the first half. Earnings Conference Call A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The second quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to: https://edge.media-server.com/mmc/p/f8j7t4wj For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below. https://register.vevent.com/register/BI8d56cfdc94aa49358360ba12cb42e3e2 All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). A replay of the conference call will be available from Tuesday, July 23, 2024, through 9:00 am ET on Tuesday, July 30, 2024, by visiting the listen-only webcast link above. Forward Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company's financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company's business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases,  raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company's accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company's Securities and Exchange Commission filings, included in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. About Franklin Electric Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2023 and America's Climate Leaders 2023 by USA Today. FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)                 (In thousands, except per share amounts)                                 Second Quarter Ended   Six Months Ended   June 30, 2024   June 30, 2023   June 30, 2024   June 30, 2023                 Net sales $ 543,258     $ 569,181     $ 1,004,158     $ 1,053,732                   Cost of sales   343,461       380,700       640,781       702,986                   Gross profit   199,797       188,481       363,377       350,746                   Selling, general, and administrative expenses   120,648       107,429       236,292       216,964                   Restructuring expense   —       149       —       273                   Operating income   79,149       80,903       127,085       133,509                   Interest expense   (1,976 )     (4,178 )     (3,424 )     (7,325 ) Other income, net   184       1,179       890       1,588   Foreign exchange expense   (436 )     (3,571 )     (5,316 )     (5,615 )                 Income before income taxes   76,921       74,333       119,235       122,157                   Income tax expense   17,590       14,173       26,812       24,421                   Net income $ 59,331     $ 60,160     $ 92,423     $ 97,736                   Less: Net income attributable to noncontrolling interests   (232 )     (560 )     (365 )     (811 )