Franklin Electric Co., Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Franklin Electric Co., Inc. has filed its 2023 10-K annual report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

FRANKLIN ELECTRIC CO INC (FELE) filed a Annual Report (10-K) with the SEC on February 23, 2024. Franklin Electric Co., Inc. filed its annual report for the fiscal year ended December 31, 2023. The report covers the period from January 1, 2023, to December 31, 2023. The company's principal business is in the Motors & Generators industry (SIC 3621). Franklin Electric Co., Inc. is incorporated in Indiana. The filing was made on February 23, 2024.

Why It Matters

For investors and stakeholders tracking FRANKLIN ELECTRIC CO INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Franklin Electric's financial health, operational performance, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's value and future prospects. As a Motors & Generators company, the detailed financial and operational data in this report will be important for understanding its competitive position and market trends within the manufacturing sector.

Risk Assessment

Risk Level: low — FRANKLIN ELECTRIC CO INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or events that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-K to understand Franklin Electric's performance drivers and identify any emerging risks or opportunities.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240223 — Filing Date (Filed as of date)
• 3621 — SIC Code (Motors & Generators)

Key Players & Entities

• FRANKLIN ELECTRIC CO INC (company) — Filer name
• 0000038725 (company) — Central Index Key
• 3621 (industry) — Standard Industrial Classification for Motors & Generators
• IN (location) — State of incorporation
• 20231231 (date) — Conformed period of report
• 20240223 (date) — Filed as of date

FAQ

Industry Context

Franklin Electric Co., Inc. operates within the Motors & Generators industry, a sector focused on the design, manufacturing, and distribution of electric motors and related power generation equipment.

Regulatory Implications

The filing is a standard SEC Form 10-K, which is a mandatory annual report for publicly traded companies in the United States, providing comprehensive financial and operational disclosures.

What Investors Should Do

1. Analyze the company's revenue streams and profitability metrics for the fiscal year 2023.
2. Examine any disclosed risks or uncertainties that could impact future performance.
3. Compare key financial ratios and performance indicators against industry benchmarks and prior years.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 10-K. Comparative financial data for the previous fiscal year (2022) will be available within the document's financial statements.

Key Financial Figures

• $0.10 — ction 12(b) of the Act: Common Stock, $0.10 par value FELE NASDAQ Global Select Mar
• $2.1 b — ems. With 2023 revenue of approximately $2.1 billion, the Company designs, manufacture

Filing Documents

• fele-20231231.htm (10-K) — 1984KB
• a20231231ex21.htm (EX-21) — 27KB
• a20231231ex231.htm (EX-23.1) — 2KB
• a20231231ex311.htm (EX-31.1) — 11KB
• a20231231ex312.htm (EX-31.2) — 11KB
• a20231231ex321.htm (EX-32.1) — 5KB
• a20231231ex322.htm (EX-32.2) — 5KB
• a20231231ex97.htm (EX-97) — 25KB
• a20231231ex991.htm (EX-99.1) — 14KB
• fele-20231231_g1.jpg (GRAPHIC) — 46KB
• fele-20231231_g2.jpg (GRAPHIC) — 36KB
• 0000038725-24-000038.txt (&nbsp;) — 12611KB
• fele-20231231.xsd (EX-101.SCH) — 56KB
• fele-20231231_cal.xml (EX-101.CAL) — 126KB
• fele-20231231_def.xml (EX-101.DEF) — 372KB
• fele-20231231_lab.xml (EX-101.LAB) — 1099KB
• fele-20231231_pre.xml (EX-101.PRE) — 701KB
• fele-20231231_htm.xml (XML) — 2222KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 10

Cybersecurity

Item 1C. Cybersecurity 10

Properties

Item 2. Properties 11

Legal Proceedings

Item 3. Legal Proceedings 11

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 11 Supplemental Item - Information about our Executive Officers 12 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 13

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 15

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 21

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 22 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 52

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54

Controls and Procedures

Item 9A. Controls and Procedures 54 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) 55

Other Information

Item 9B. Other Information 56

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 56 PART III.

Directors, Executive Officers, and Corporate Governance

Item 10. Directors, Executive Officers, and Corporate Governance 56

Executive Compensation

Item 11. Executive Compensation 56

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 56

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 56

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 56 PART IV.

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 57

Signatures

Signatures 61 3 PART I

BUSINESS

ITEM 1. BUSINESS Description of the Business Franklin Electric Co., Inc. ("Franklin Electric" or the "Company") is an Indiana corporation founded in 1944 and incorporated in 1946. Named after America's pioneer electrical engineer, Benjamin Franklin, Franklin Electric manufactured the first water-lubricated submersible motor for water systems and the first submersible motor for fueling systems. With 2023 revenue of approximately $2.1 billion, the Company designs, manufactures and distributes water and fuel pumping systems, composed primarily of submersible motors, pumps, electronic controls, water treatment systems, and related parts and equipment. The Company's water pumping systems move fresh and wastewater for the residential, agricultural and other industrial end markets. The Company also sells various groundwater equipment products to well installation contractors, including water pumping systems, through its and third-party distribution branches located in the U.S. With a growing global footprint, the Company has also evolved into a top supplier of submersible fueling systems at gas stations, making pumps, pipes, electronic controls and monitoring devices. The Company's products are sold worldwide by its employee sales force and independent manufacturing representatives. The Company offers normal and customary trade terms to its customers, no significant part of which is of an extended nature. Special inventory requirements are not necessary, and customer merchandise return rights do not extend beyond normal warranty provisions. Franklin Electric's Key Factors for Success While maintaining a culture of safety and lean principles, Franklin Electric strives to deliver quality, availability, service, innovation, and cost in every encounter the Company has with stakeholders, including direct or indirect customers, employees, shareholders, and suppliers. These key factors for success are a roadmap for the Company's growth as a global provider of water and

RISK FACTORS

ITEM 1A. RISK FACTORS The following describes the principal risks affecting the Company and its business. Additional risks and uncertainties, not presently known to the Company, could negatively impact the Company's results of operations or financial condition in the future. Risks Related to the Industry Reduced housing starts adversely affect demand for the Company's products, thereby reducing revenues and earnings. Demand for certain Company products is affected by housing starts. Variation in housing starts due to economic volatility both within the United States and globally could adversely impact gross margins and operating results. The Company's results may be adversely affected by global macroeconomic supply and demand conditions related to the energy and mining industries. The energy and mining industries are users of the Company's products, including the coal, iron ore, gold, copper, oil, and natural gas industries. Decisions to purchase the Company's products are dependent upon the performance of the industries in which our customers operate. If demand or output in these industries increases, the demand for our products will generally increase. Likewise, if demand or output in these industries declines, the demand for our products will generally decrease. The energy and mining industries' demand and output are impacted by the prices of commodities in these industries which are frequently volatile and change in response to general economic conditions, economic growth, commodity inventories, and any disruptions in production or distribution. Changes in these conditions could adversely impact sales, gross margin, and operating results. Volatility in the prices and availability of raw materials, components, finished goods and other commodities could adversely affect operations. The Company purchases most of the raw materials for its products on the open market and relies on third parties for the sourcing of certain finished goods. Accordingly, the cos

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