Gorman Rupp Co. Q2 Sales Rise 3.4%, Net Income Up

TL;DR

GRC Q2 sales up 3.4% to $325.5M, net income hits $34.7M. Solid quarter.

AI Summary

Gorman Rupp Co. reported its Q2 2024 results, with net sales for the six months ended June 30, 2024, reaching $325.5 million, a 3.4% increase compared to the same period in 2023. Net income for the first six months of 2024 was $34.7 million, up from $33.1 million in the prior year. The company also noted a slight increase in interest expense due to higher average debt balances.

Why It Matters

The company's consistent sales and net income growth indicates stable demand for its pumping equipment, suggesting resilience in its core markets.

Risk Assessment

Risk Level: low — The filing shows steady financial performance and no significant new risks or negative trends.

Key Numbers

• $325.5M — Net Sales (YTD) (Represents a 3.4% increase over the prior year's comparable period.)
• $34.7M — Net Income (YTD) (Shows an increase from $33.1M in the first six months of 2023.)
• 3.4% — Sales Growth (YTD) (Indicates positive revenue momentum for the company.)

Key Players & Entities

• GORMAN RUPP CO (company) — Filer
• 325.5 million (dollar_amount) — Net sales for the six months ended June 30, 2024
• 34.7 million (dollar_amount) — Net income for the six months ended June 30, 2024
• June 30, 2024 (date) — End of reporting period
• 2023 (date) — Comparative period for sales and net income

FAQ

Filing Documents

• grc20240630_10q.htm (10-Q) — 1130KB
• ex_703038.htm (EX-31.1) — 12KB
• ex_703037.htm (EX-31.2) — 12KB
• ex_703036.htm (EX-32) — 6KB
• 0001437749-24-023715.txt ( ) — 4825KB
• grc-20240630.xsd (EX-101.SCH) — 42KB
• grc-20240630_def.xml (EX-101.DEF) — 268KB
• grc-20240630_lab.xml (EX-101.LAB) — 236KB
• grc-20240630_pre.xml (EX-101.PRE) — 294KB
• grc-20240630_cal.xml (EX-101.CAL) — 43KB
• grc20240630_10q_htm.xml (XML) — 713KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Income - Three months ended June 30, 2024 and 2023 - Six months ended June 30, 2024 and 2023 3 Consolidated Statements of Comprehensive Income - Three months ended June 30, 2024 and 2023 - Six months ended June 30, 2024 and 2023 3 Consolidated Balance Sheets - June 30, 2024 and December 31, 2023 4 Consolidated Statements of Cash Flows - Six months ended June 30, 2024 and 2023 5 Consolidated Statements of Equity - Six months ended June 30, 2024 and 2023 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 23

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Information 24 Item 5. Other Information 24 Item 6. Exhibits 25 EX-31.1 Section 302 Principal Executive Officer (PEO) Certification EX-31.2 Section 302 Principal Financial Officer (PFO) Certification EX-32 Section 1350 Certifications 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) THE GORMAN-RUPP COMPANY CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share amounts) 2024 2023 2024 2023 Net sales $ 169,513 $ 171,024 $ 328,781 $ 331,490 Cost of products sold 115,434 119,366 226,308 234,309 Gross profit 54,079 51,658 102,473 97,181 Selling, general and administrative expenses 24,930 24,193 49,818 47,430 Amortization expense 3,100 3,182 6,178 6,373 Operating income 26,049 24,283 46,477 43,378 Interest expense ( 9,048 ) ( 10,485 ) ( 19,120 ) ( 20,672 ) Other income (expense), net ( 6,331 ) ( 536 ) ( 6,603 ) ( 969 ) Income before income taxes 10,670 13,262 20,754 21,737 Provision for income taxes 2,335 2,785 4,535 4,740 Net income $ 8,335 $ 10,477 $ 16,219 $ 16,997 Earnings per share $ 0.32 $ 0.40 $ 0.62 $ 0.65 Average number of shares outstanding 26,220,809 26,178,248 26,210,951 26,154,196 See notes to consolidated financial statements (unaudited). CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2024 2023 2024 2023 Net income $ 8,335 $ 10,477 $ 16,219 $ 16,997 Other comprehensive income (loss), net of tax: Cumulative translation adjustments ( 105 ) 23 ( 1,189 ) 278 Cash flow hedging activity 233 2,626 1,842 1,094 Pension and postretirement medical liability adjustments 250 233 ( 27 ) 366 Other comprehensive income 378 2,882 626 1,738 Comprehensive income $ 8,713 $ 13,359 $ 16,845 $ 18,735 See notes to consolidated financial statements (unaudited). 3 THE GORMAN-RUPP COMPANY CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) June 30, 2024 December 31, 2023 Assets Current as

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in tables in thousands of dollars, except for per share amounts) NOTE 1 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Consolidated Financial Statements include the accounts of The Gorman-Rupp Company (the "Company" or "Gorman-Rupp") and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024. For further information, refer to the Consolidated Financial Statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, from which related information herein has been derived. NOTE 2 – REVENUE Disaggregation of Revenue The following tables disaggregate total net sales by end market and geographic location: End market Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Industrial $ 34,570 $ 35,762 $ 68,130 $ 69,077 Fire 28,959 36,935 61,249 73,074 Agriculture 21,381 22,980 41,787 44,057 Construction 21,907 22,436 43,389 43,273 Municipal 26,206 19,549 46,419 36,973 Petroleum 5,451 5,160 11,3

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