Franklin Electric Co., Inc. Files 10-Q for Period Ending March 31, 2024

AI Summary

FRANKLIN ELECTRIC CO INC (FELE) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Franklin Electric reported financial results for the quarter ended March 31, 2024. The filing includes data related to fair value measurements and acquisition costs. Details on equity swaps and foreign exchange forwards are provided. Customer relationships and intangible assets are listed as of March 31, 2024. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking FRANKLIN ELECTRIC CO INC, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial snapshot, including asset valuations and derivative instrument details. Understanding the company's financial position and any changes in its asset structure is crucial for investment decisions.

Risk Assessment

Risk Level: low — FRANKLIN ELECTRIC CO INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Review the detailed financial statements and notes within the 10-Q to understand revenue streams, expenses, and asset changes for Q1 2024.

Key Numbers

• 2024-03-31 — Report Date (Conformed period of report)
• 2024-04-30 — Filing Date (Filed as of date)
• 2024-01-01 — Q1 Start Date (First quarter period)
• 2023-03-31 — Prior Year Q1 End Date (Prior year first quarter period)

Key Players & Entities

• FRANKLIN ELECTRIC CO INC (company) — Filer
• 2024-03-31 (date) — Period of report
• 2024-04-30 (date) — Filed as of date
• 3621 (sic_code) — Standard Industrial Classification
• IN (state) — State of incorporation
• 1231 (fiscal_year_end) — Fiscal year end
• 1934 Act (regulation) — SEC Act

FAQ

Industry Context

Franklin Electric Co., Inc. operates in the Motors & Generators industry (SIC 3621).

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring regular disclosure of financial information.

What Investors Should Do

1. Analyze the consolidated balance sheets for changes in assets and liabilities.
2. Review the consolidated statements of operations for revenue and net income trends.
3. Examine the notes to the financial statements for details on accounting policies and significant transactions.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, reporting on the first quarter.

Key Financial Figures

• $0.10 — ection 12(b) of the Act: Common Stock, $0.10 par value FELE NASDAQ Global Select Mar

Filing Documents

• fele-20240331.htm (10-Q) — 832KB
• a2024q1form10qex311.htm (EX-31.1) — 11KB
• a2024q1form10qex312.htm (EX-31.2) — 11KB
• a2024q1form10qex321.htm (EX-32.1) — 5KB
• a2024q1form10qex322.htm (EX-32.2) — 5KB
• fele-20240331_g1.jpg (GRAPHIC) — 15KB
• 0000038725-24-000078.txt ( ) — 5738KB
• fele-20240331.xsd (EX-101.SCH) — 26KB
• fele-20240331_cal.xml (EX-101.CAL) — 74KB
• fele-20240331_def.xml (EX-101.DEF) — 138KB
• fele-20240331_lab.xml (EX-101.LAB) — 510KB
• fele-20240331_pre.xml (EX-101.PRE) — 336KB
• fele-20240331_htm.xml (XML) — 910KB

FINANCIAL INFORMATION Number

PART I. FINANCIAL INFORMATION Number

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 4 Condensed Consolidated Statements of Income for the First Quarters Ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income/(Loss) for the First Quarters Ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 25

Risk Factors

Item 1A. Risk Factors 25

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) First Quarter Ended (In thousands, except per share amounts) March 31, 2024 March 31, 2023 Net sales $ 460,900 $ 484,551 Cost of sales 297,320 322,286 Gross profit 163,580 162,265 Selling, general, and administrative expenses 115,644 109,535 Restructuring expense — 124 Operating income 47,936 52,606 Interest expense ( 1,448 ) ( 3,147 ) Other income, net 706 409 Foreign exchange expense ( 4,880 ) ( 2,044 ) Income before income taxes 42,314 47,824 Income tax expense 9,222 10,248 Net income $ 33,092 $ 37,576 Less: Net income attributable to noncontrolling interests ( 133 ) ( 251 ) Net income attributable to Franklin Electric Co., Inc. $ 32,959 $ 37,325 Earnings per share: Basic $ 0.71 $ 0.81 Diluted $ 0.70 $ 0.79 See Notes to Condensed Consolidated Financial Statements. 4 FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) First Quarter Ended (In thousands) March 31, 2024 March 31, 2023 Net income $ 33,092 $ 37,576 Other comprehensive income/(loss), before tax: Foreign currency translation adjustments ( 7,215 ) 6,494 Employee benefit plan activity 576 555 Other comprehensive income/(loss) ( 6,639 ) 7,049 Income tax expense related to items of other comprehensive income/(loss) ( 143 ) ( 138 ) Other comprehensive income/(loss), net of tax ( 6,782 ) 6,911 Comprehensive income 26,310 44,487 Less: Comprehensive income attributable to noncontrolling interests ( 92 ) ( 274 ) Comprehensive income attributable to Franklin Electric Co., Inc. $ 26,218 $ 44,213 See Notes to Condensed Consolidated Financial Statements. 5 FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share amounts) March 31, 2024 D

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