Franklin Electric Files Q2 2024 10-Q

Ticker: FELE · Form: 10-Q · Filed: Jul 26, 2024 · CIK: 38725

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

**FELE Q2 10-Q FILED: Check financials for latest performance.**

AI Summary

Franklin Electric Co. Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial details for the company. Specific financial figures and operational highlights are detailed within the report, which is a standard quarterly disclosure for publicly traded companies.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Franklin Electric, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Franklin Electric Co. Inc.?

Franklin Electric Co. Inc. is primarily involved in the manufacturing of motors and generators, as indicated by its Standard Industrial Classification code [3621].

What period does this 10-Q filing cover?

This 10-Q filing covers the period ending June 30, 2024, specifically the second quarter of fiscal year 2024.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted to the SEC on July 26, 2024.

What is the company's state of incorporation?

Franklin Electric Co. Inc. is incorporated in Indiana (IN).

Does the filing mention any specific acquisitions?

The filing references 'SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember' for various periods in 2023 and 2024, and specifically 'fele:HydropompeSrlMember' for the period ending March 31, 2023, suggesting a history of smaller acquisitions.

Filing Stats: 4,723 words · 19 min read · ~16 pages · Grade level 10.3 · Accepted 2024-07-26 16:10:51

Key Financial Figures

Filing Documents

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 Second Quarters and Six Months Ended June 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income/(Loss) for the Second Quarters and Six Months Ended June 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 10

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 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 29

- 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) Second Quarter Ended Six Months Ended (In thousands, except per share amounts) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net sales $ 543,258 $ 569,181 $ 1,004,158 $ 1,053,732 Cost of sales 343,461 380,700 640,781 702,986 Gross profit 199,797 188,481 363,377 350,746 Selling, general, and administrative expenses 120,648 107,429 236,292 216,964 Restructuring expense — 149 — 273 Operating income 79,149 80,903 127,085 133,509 Interest expense ( 1,976 ) ( 4,178 ) ( 3,424 ) ( 7,325 ) Other income, net 184 1,179 890 1,588 Foreign exchange expense ( 436 ) ( 3,571 ) ( 5,316 ) ( 5,615 ) Income before income taxes 76,921 74,333 119,235 122,157 Income tax expense 17,590 14,173 26,812 24,421 Net income $ 59,331 $ 60,160 $ 92,423 $ 97,736 Less: Net income attributable to noncontrolling interests ( 232 ) ( 560 ) ( 365 ) ( 811 ) Net income attributable to Franklin Electric Co., Inc. $ 59,099 $ 59,600 $ 92,058 $ 96,925 Earnings per share: Basic $ 1.28 $ 1.29 $ 1.99 $ 2.09 Diluted $ 1.26 $ 1.27 $ 1.97 $ 2.06 See Notes to Condensed Consolidated Financial Statements. 4 FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) Second Quarter Ended Six Months Ended (In thousands) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income $ 59,331 $ 60,160 $ 92,423 $ 97,736 Other comprehensive income/(loss), before tax: Foreign currency translation adjustments ( 10,299 ) 4,495 ( 17,514 ) 10,989 Employee benefit plan activity 577 555 1,153 1,110 Other comprehensive income/(loss) ( 9,722 ) 5,050 ( 16,361 ) 12,099 Income tax expense related to items of other comprehensive income/(loss) ( 143 ) ( 139 ) ( 286 ) ( 277 ) Other comprehensive income/(loss), net of tax ( 9,865 ) 4,911 ( 16,647 ) 1

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