Zurn Elkay Water reports Q1 adjusted EPS 18c, consensus 15c

Reports Q1 revenue $372M, consensus $347.3M. Todd A. Adams, Chairman and Chief Executive Officer, commented, "We are pleased with our start to the year as demand trends in our business were a bit better than we anticipated and we delivered pro forma core growth of 5% on top of a prior year first quarter where core sales grew 15%. During the quarter we launched a nationwide awareness campaign focused on the need for safe drinking water within K-12 schools here in the US, and we continue to see momentum growing in our drinking water business. Operationally, we executed well as we delivered an adjusted EBITDA margin of 19.5% which was at the high-end of our expectations heading into the quarter. Our Elkay synergy commitment of $25 million in the year remains on track and we expect to see our margin improve sequentially in the second quarter and further improve into the second half of the year as the lower commodity and transportation costs begin to read through. During the quarter, we repurchased $37 million of our common stock which puts us ahead of schedule on our commitment of at least $100 million in share repurchases during the year."