Watts Water Technologies Reports Q3 2024 Results
Ticker: WTS · Form: 10-Q · Filed: Oct 31, 2024 · CIK: 795403
Sentiment: neutral
Topics: financials, earnings, water-technology, credit-facility
TL;DR
**WTS Q3: Sales flat at $2.7B, Net Income $595M. Steady as she goes.**
AI Summary
Watts Water Technologies, Inc. filed its 10-Q for the period ending September 29, 2024. The company reported net sales of $2.738 billion for the nine months ended September 29, 2024, compared to $2.735 billion for the same period in 2023. Net income for the nine months was $595.8 million, a slight increase from $595.3 million in the prior year. The filing also details information regarding stock incentive plans and revolving credit facilities.
Why It Matters
This filing provides insight into the financial performance of Watts Water Technologies, a key player in the water management industry, impacting investors and suppliers.
Risk Assessment
Risk Level: low — The filing indicates stable financial performance with minimal significant changes, suggesting low immediate risk.
Key Numbers
- $2.738B — Net Sales (9 months ended 09/29/2024) (Represents the total revenue generated by the company.)
- $595.8M — Net Income (9 months ended 09/29/2024) (Indicates the company's profitability after all expenses.)
- $2.735B — Net Sales (9 months ended 09/29/2023) (For comparison with the current period's sales.)
- $595.3M — Net Income (9 months ended 09/29/2023) (For comparison with the current period's net income.)
Key Players & Entities
- Watts Water Technologies, Inc. (company) — Filer of the 10-Q
- 2024-09-29 (date) — End of reporting period
- $2.738 billion (dollar_amount) — Net sales for the nine months ended September 29, 2024
- $2.735 billion (dollar_amount) — Net sales for the nine months ended September 29, 2023
- $595.8 million (dollar_amount) — Net income for the nine months ended September 29, 2024
- $595.3 million (dollar_amount) — Net income for the nine months ended September 29, 2023
- Watts Stock Incentive Plan 2004 (company) — Details provided on stock incentive plans
- Revolving Credit Facility (company) — Details provided on credit facilities
FAQ
What were the net sales for the nine months ended September 29, 2024?
Net sales for the nine months ended September 29, 2024, were $2.738 billion.
How did net income for the nine months ended September 29, 2024, compare to the prior year?
Net income for the nine months ended September 29, 2024, was $595.8 million, a slight increase from $595.3 million in the same period of 2023.
What is the company's fiscal year end?
The company's fiscal year ends on December 31.
What type of credit facility does Watts Water Technologies utilize?
The filing mentions a Revolving Credit Facility.
What is the SIC code for Watts Water Technologies?
The Standard Industrial Classification (SIC) code is 3490 (Miscellaneous Fabricated Metal Products).
Filing Stats: 4,535 words · 18 min read · ~15 pages · Grade level 6.8 · Accepted 2024-10-31 11:17:37
Key Financial Figures
- $0.10 — stered Class A common stock, par value $0.10 per share WTS New York Stock Exchan
Filing Documents
- wts-20240929x10q.htm (10-Q) — 3046KB
- wts-20240929xex31d1.htm (EX-31.1) — 13KB
- wts-20240929xex31d2.htm (EX-31.2) — 13KB
- wts-20240929xex32d1.htm (EX-32.1) — 6KB
- wts-20240929xex32d2.htm (EX-32.2) — 6KB
- 0001558370-24-014022.txt ( ) — 11291KB
- wts-20240929.xsd (EX-101.SCH) — 45KB
- wts-20240929_cal.xml (EX-101.CAL) — 57KB
- wts-20240929_def.xml (EX-101.DEF) — 272KB
- wts-20240929_lab.xml (EX-101.LAB) — 477KB
- wts-20240929_pre.xml (EX-101.PRE) — 357KB
- wts-20240929x10q_htm.xml (XML) — 2548KB
Financial Information
Part I. Financial Information 3 Item 1.
Financial Statements
Financial Statements 3 Consolidated Balance Sheets at September 29, 2024 and December 31, 2023 (unaudited) 3 Consolidated Statements of Operations for the Third Quarters and Nine Months ended September 29, 2024 and September 24, 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the Third Quarters and Nine Months ended September 29, 2024 and September 24, 2023 (unaudited) 5 Consolidated Statements of Stockholders' Equity for the Third Quarters and Nine Months ended September 29, 2024 and September 24, 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Nine Months ended September 29, 2024 and September 24, 2023 (unaudited) 8
Notes to Consolidated Financial Statements (unaudited)
Notes to Consolidated Financial Statements (unaudited) 9 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 25 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.
Controls and Procedures
Controls and Procedures 37
Other Information
Part II. Other Information 38 Item 1.
Legal Proceedings
Legal Proceedings 38 Item 1A.
Risk Factors
Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 5. Other Information 40 Item 6. Exhibits 41
Signatures
Signatures 42 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) September 29, December 31, 2024 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 303.9 $ 350.1 Trade accounts receivable, less reserve allowances of $ 14.1 million at September 29, 2024 and $ 11.9 million at December 31, 2023 291.6 259.8 Inventories, net: Raw materials 152.7 150.6 Work in process 19.5 20.2 Finished goods 248.2 228.5 Total Inventories 420.4 399.3 Prepaid expenses and other current assets 49.7 51.8 Total Current Assets 1,065.6 1,061.0 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost 700.3 677.2 Accumulated depreciation ( 445.2 ) ( 429.0 ) Property, plant and equipment, net 255.1 248.2 OTHER ASSETS: Goodwill 725.5 693.0 Intangible assets, net 241.5 216.1 Deferred income taxes 34.9 23.6 Other, net 76.5 67.5 TOTAL ASSETS $ 2,399.1 $ 2,309.4 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 141.1 $ 131.8 Accrued expenses and other liabilities 200.6 190.3 Accrued compensation and benefits 75.8 83.7 Total Current Liabilities 417.5 405.8 LONG-TERM DEBT 211.8 298.3 DEFERRED INCOME TAXES 11.6 13.5 OTHER NONCURRENT LIABILITIES 69.1 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 , 27,385,541 shares at September 29, 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 , 5,953,290 shares at September 29, 2024 and 5,958,290 shares at December 31, 2023 0.6 0.6 Additional paid-in capital
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 September 29, 2024, the Consolidated Statements of Operations for the third quarters and nine months ended September 29, 2024 and September 24, 2023, the Consolidated Statements of Comprehensive Income for the third quarters and nine months ended September 29, 2024 and September 24, 2023, the Consolidated Statements of Stockholders' Equity for the third quarters and nine months ended September 29, 2024 and September 24, 2023, and the Consolidated Statements of Cash Flows for the nine months ended September 29, 2024 and September 24, 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