Watts Water Technologies Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Watts Water Technologies Inc. filed its Q1 2024 10-Q, detailing executive compensation, stock plans, and financial statement components.</b>

AI Summary

WATTS WATER TECHNOLOGIES INC (WTS) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Watts Water Technologies Inc. filed a 10-Q report for the period ending March 31, 2024. The filing details stock incentive plans, including the Stock Incentive Plan 2004 and Management Stock Purchase Plan. Information regarding common stock, retained earnings, and additional paid-in capital as of various dates in 2022, 2023, and 2024 is presented. The report references revolving credit facilities and loan arrangements dating back to March 2021. Details on stock repurchase programs, specifically for Class A common stock, are included, with activity noted up to March 31, 2024.

Why It Matters

For investors and stakeholders tracking WATTS WATER TECHNOLOGIES INC, this filing contains several important signals. This 10-Q provides an update on the company's financial position and equity structure, crucial for investors assessing current performance and shareholder value. The inclusion of details on stock incentive plans and repurchase programs offers insight into management compensation strategies and capital allocation decisions.

Risk Assessment

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

Analyst Insight

Monitor future filings for trends in revenue, net income, and EPS to gauge ongoing business performance.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-09 — Filing Date (10-Q filing)
• 0000795403 — Central Index Key (Watts Water Technologies Inc.)
• 3490 — Standard Industrial Classification (Miscellaneous Fabricated Metal Products)

Key Players & Entities

• WATTS WATER TECHNOLOGIES INC (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-09 (date) — Filing date
• 0000795403 (company) — Central Index Key
• 3490 (industry) — Standard Industrial Classification
• DE (state) — State of incorporation
• 12-31 (date) — Fiscal year end
• 815 CHESTNUT ST (address) — Business street address

FAQ

Industry Context

Watts Water Technologies operates in the water technology sector, providing solutions for water control and conservation.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management discussion.
2. Analyze the disclosures related to stock-based compensation and equity changes.
3. Compare the reported period's data with previous filings to identify financial trends.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, providing updated financial information compared to previous filings.

Key Financial Figures

• $0.10 — stered Class A common stock, par value $0.10 per share WTS New York Stock Exchan

Filing Documents

• wts-20240331x10q.htm (10-Q) — 2034KB
• wts-20240331xex10d1.htm (EX-10.1) — 104KB
• wts-20240331xex10d2.htm (EX-10.2) — 71KB
• wts-20240331xex10d3.htm (EX-10.3) — 17KB
• wts-20240331xex31d1.htm (EX-31.1) — 13KB
• wts-20240331xex31d2.htm (EX-31.2) — 13KB
• wts-20240331xex32d1.htm (EX-32.1) — 6KB
• wts-20240331xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-007502.txt (&nbsp;) — 8811KB
• wts-20240331.xsd (EX-101.SCH) — 42KB
• wts-20240331_cal.xml (EX-101.CAL) — 52KB
• wts-20240331_def.xml (EX-101.DEF) — 274KB
• wts-20240331_lab.xml (EX-101.LAB) — 452KB
• wts-20240331_pre.xml (EX-101.PRE) — 347KB
• wts-20240331x10q_htm.xml (XML) — 1734KB

Financial Information

Part I. Financial Information 3 Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 (unaudited) 3 Consolidated Statements of Operations for the First Quarters ended March 31, 2024 and March 26, 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the First Quarters ended March 31, 2024 and March 26, 2023 (unaudited) 5 Consolidated Statements of Stockholders' Equity for the First Quarters ended March 31, 2024 and March 26, 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the First Quarters ended March 31, 2024 and March 26, 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 33

Other Information

Part II. Other Information 33 Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in millions, except share information) (Unaudited) March 31, December 31, 2024 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 237.1 $ 350.1 Trade accounts receivable, less reserve allowances of $ 13.0 million at March 31, 2024 and $ 11.9 million at December 31, 2023 305.7 259.8 Inventories, net: Raw materials 151.9 150.6 Work in process 21.3 20.2 Finished goods 250.4 228.5 Total Inventories 423.6 399.3 Prepaid expenses and other current assets 43.6 51.8 Total Current Assets 1,010.0 1,061.0 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost 683.8 677.2 Accumulated depreciation ( 428.8 ) ( 429.0 ) Property, plant and equipment, net 255.0 248.2 OTHER ASSETS: Goodwill 724.3 693.0 Intangible assets, net 250.9 216.1 Deferred income taxes 21.6 23.6 Other, net 70.6 67.5 TOTAL ASSETS $ 2,332.4 $ 2,309.4 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 162.6 $ 131.8 Accrued expenses and other liabilities 186.6 190.3 Accrued compensation and benefits 58.1 83.7 Total Current Liabilities 407.3 405.8 LONG-TERM DEBT 283.5 298.3 DEFERRED INCOME TAXES 12.6 13.5 OTHER NONCURRENT LIABILITIES 77.2 78.5 STOCKHOLDERS' EQUITY: Preferred Stock, $ 0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding — — Class A common stock, $ 0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding , 27,418,449 shares at March 31, 2024 and 27,352,701 shares at December 31, 2023 2.7 2.7 Class B common stock, $ 0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding , 5,958,290 shares at March 31, 2024 and at December 31, 2023 0.6 0.6 Additional paid-in capital 680.6 674.3 Retained earnin

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the Watts Water Technologies, Inc. (the "Company") Consolidated Balance Sheet as of March 31, 2024, the Consolidated Statements of Operations for the First Quarters ended March 31, 2024 and March 26, 2023, the Consolidated Statements of Comprehensive Income for the First Quarters ended March 31, 2024 and March 26, 2023, the Consolidated Statements of Stockholders' Equity for the First Quarters ended March 31, 2024 and March 26, 2023, and the Consolidated Statements of Cash Flows for the First Quarters ended March 31, 2024 and March 26, 2023. The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date. The accounting policies followed by the Company are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The financial statements included in this report should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2024. The Company operates on a 52 -week fiscal year ending on December 31, with each quarter, except the fourth quarter, ending

View Full Filing

View this 10-Q filing on SEC EDGAR