Zur Elkay Water reports Q3 adjusted EPS 29c, consensus 27c

Reports Q3 revenue $398M, consensus $396.42M. Todd A. Adams, Chairman and Chief Executive Officer, commented, “The third quarter represents the one-year anniversary of the Elkay transaction and we’re delighted with the progress we’ve made on the integration not only operationally, but also with the strategic growth opportunities we’ve invested in and see benefiting our growth moving forward. We delivered an exceptionally strong third quarter, as our adjusted EBITDA margin of 24.1% improved by 410 basis points over the prior year, demonstrating the execution and sustainability of the integration work we’ve accomplished over the past year. Our free cash flow continues to be robust, and we’re again raising our free cash flow outlook to approximately $230 million for the year, against our original target of $200 million. We continue to leverage our substantial free cash flow to invest in our business and return money to shareholders, having repurchased $13 million of shares in the quarter, bringing our year to date repurchases to $100 million, while increasing our dividend by 14% and reducing our net debt leverage to an all-time low of 1.2x.”