Zurn Elkay Water Solutions Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Zurn Elkay Water Solutions Corp. has submitted its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Zurn Elkay Water Solutions Corp (ZWS) filed a Annual Report (10-K) with the SEC on February 6, 2024. Zurn Elkay Water Solutions Corp. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing was made on February 6, 2024. The company's principal executive offices are located at 511 West Freshwater Way, Milwaukee, WI 53204. The company was formerly known as Zurn Water Solutions Corp. and Rexnord Corp. The SIC code for the company is 3560 (GENERAL INDUSTRIAL MACHINERY & EQUIPMENT).

Why It Matters

For investors and stakeholders tracking Zurn Elkay Water Solutions Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Zurn Elkay's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. Understanding the company's historical structure, including its former names like Zurn Water Solutions Corp. and Rexnord Corp., provides context for its current market position and strategic evolution.

Risk Assessment

Risk Level: medium — Zurn Elkay Water Solutions Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive report but does not contain immediate, significant positive or negative news, indicating a neutral short-term sentiment. However, the depth of information requires careful analysis to identify specific risks and opportunities.

Analyst Insight

Investors should carefully review the detailed financial statements, risk factors, and management discussion within the 10-K to identify potential investment opportunities or risks associated with Zurn Elkay Water Solutions Corp.

Key Numbers

• 20231231 — Fiscal Year End (Fiscal year end date)
• 20240206 — Filing Date (Date the 10-K was filed)
• 3560 — SIC Code (Standard Industrial Classification code)
• DE — State of Incorporation (State where the company is incorporated)

Key Players & Entities

• Zurn Elkay Water Solutions Corp. (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240206 (date) — Filed as of date
• 511 WEST FRESHWATER WAY (address) — Business address street 1
• MILWAUKEE (city) — Business address city
• WI (state) — Business address state
• 53204 (zip_code) — Business address zip
• Zurn Water Solutions Corp. (company) — Former company name

Forward-Looking Statements

• The company will continue to operate under the name Zurn Elkay Water Solutions Corp for the foreseeable future. (Zurn Elkay Water Solutions Corp) — high confidence, target: 2025-12-31
• Future filings will continue to use the CIK 0001439288. (Zurn Elkay Water Solutions Corp) — high confidence, target: 2025-12-31

FAQ

Industry Context

Zurn Elkay Water Solutions Corp. operates within the general industrial machinery and equipment sector. This filing provides insights into its specific segment within this broad industry.

Regulatory Implications

The filing adheres to the regulations set forth by the Securities and Exchange Commission (SEC) for annual reporting by public companies.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and cash flow.
2. Review the risk factors section to understand potential challenges and their impact on the company.
3. Examine management's discussion and analysis (MD&A) for strategic insights and outlook.

Key Dates

• 2024-02-06: 10-K Filing — Submission of the annual report for the fiscal year ended December 31, 2023.

Year-Over-Year Comparison

This is the initial 10-K filing for Zurn Elkay Water Solutions Corp. under its current name, following previous filings under Zurn Water Solutions Corp. and Rexnord Corp.

Key Financial Figures

• $26.89 — shares of common stock (based upon the $26.89 closing price on the New York Stock Exc

Filing Documents

• zws-20231231.htm (10-K) — 2324KB
• ex41-descriptionofsecuriti.htm (EX-4.1) — 29KB
• ex109scheduleofcompensatio.htm (EX-10.9) — 13KB
• ex211listofsubsidiaries123.htm (EX-21.1) — 21KB
• ex231eyconsent123123.htm (EX-23.1) — 4KB
• ex311123123.htm (EX-31.1) — 10KB
• ex312123123.htm (EX-31.2) — 9KB
• ex321ceocfocertification12.htm (EX-32.1) — 7KB
• ex97-executivecompensation.htm (EX-97) — 35KB
• image.jpg (GRAPHIC) — 16KB
• zws-20231231_g1.jpg (GRAPHIC) — 148KB
• 0001439288-24-000016.txt (&nbsp;) — 14699KB
• zws-20231231.xsd (EX-101.SCH) — 79KB
• zws-20231231_cal.xml (EX-101.CAL) — 167KB
• zws-20231231_def.xml (EX-101.DEF) — 438KB
• zws-20231231_lab.xml (EX-101.LAB) — 1227KB
• zws-20231231_pre.xml (EX-101.PRE) — 805KB
• zws-20231231_htm.xml (XML) — 2589KB

Risk Factors

Item 1A. Risk Factors 12

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 22

Cybersecurity

Item 1C. Cybersecurity 22

Properties

Item 2. Properties 24

Legal Proceedings

Item 3. Legal Proceedings 24

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 24 Information about our Executive Officers 25 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

[Reserved]

Item 6. [Reserved] 27

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 39

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 40

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 82

Controls and Procedures

Item 9A. Controls and Procedures 82

Other Information

Item 9B. Other Information 82

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 82 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 83

Executive Compensation

Item 11. Executive Compensation 83

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 83

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 83

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 83 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 84

Form 10-K Summary

Item 16. Form 10-K Summary 87 2 PART I CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS This report includes "forward-looking statements" within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include statements we make concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information and, in particular, appear in Items 1, 1A and 7 of this report. When used in this report, the words "estimates," "expects," "anticipates," "projects," "forecasts," "plans," "believes," "foresees," "seeks," "likely," "may," "might," "will," "should," "goal," "target" or "intends" and variations of these words or similar expressions (or the negative versions of any such words) are intended to identify forward-looking statements. All forward-looking statements are based upon information available to us on the date of this report. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, the matters discussed in this report in the Items identified above. Some of the factors that we believe could affect our results include: changes in economic and business conditions, generally and, in particular, changes in institutional and commercial building construction activity and in other cyclical industries; increases in cost of our raw materials, including as a result of tariffs, trade wars and other trade protection matters, and our possible inability to increase product prices to offset such increases; the costs and uncertainties related to strategic acquisitions or divestitures or the integration of recent and future acquisitions into our business; performance, and potential f

BUSINESS

ITEM 1. BUSINESS. Overview Zurn Elkay Water Solutions Corporation ("Zurn Elkay", "we", "us", "our", or the "Company") is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets what we believe to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, human safety and the environment. Our 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 that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time. Our heritage of innovation and specification has allowed us to provide highly-engineered, mission-critical solutions to customers for decades and affords us the privilege of having long-term, valued relationships with market leaders. We operate in a disciplined way and the Zurn Elkay Business System ("ZEBS"), described below, is our operating philosophy. Grounded in the spirit of continuous improvement, ZEBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of our business. Zurn Elkay is a leading provider of specification-driven water management solutions to the multi-billion dollar construction market of primarily institutional and commercial buildings and to a lesser extent to the waterworks and residential construction markets. Our strategy is to build Zurn Elkay around a strategic platform that participates in end markets with sustainable growth characteristics where we are, or have the opportunity to become, the industry leader. We have a track record of acquiring and integrating companies and expect to continue to pursue strategic acquisitions that will broaden our product lines, allow u

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View this 10-K filing on SEC EDGAR