First Quarter 2024 Highlights Consolidated net sales of $460.9 million, a decrease of 5% to the prior year Distribution net sales increased 3%, while Water Systems and Fueling Systems net sales decreased 7% and 15%, respectively Operating income was $47.9 million with operating margin of 10.4% GAAP fully diluted earnings per share (EPS) was $0.70 FORT WAYNE, Ind., April 30, 2024 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its first quarter financial results for fiscal year 2024. First quarter 2024 net sales were $460.9 million, compared to first quarter 2023 net sales of $484.6 million. First quarter 2024 operating income was $47.9 million, compared to first quarter 2023 operating income of $52.6 million.   First quarter 2024 EPS was $0.70, versus EPS in the first quarter 2023 of $0.79. "Our first quarter started slower than expected but improved as we moved through the quarter and demand seasonally increased. While results were slightly below our expectations due to the impact from unfavorable weather patterns and lingering commodity price headwinds in our Distribution business, underlying demand in our core markets remains healthy. Strong execution by our global teams drove improved margins on lower sales in our Water Systems and Fueling Systems segments," commented Gregg Sengstack, Franklin Electric's Chairperson and Chief Executive Officer.  "Our disciplined management of working capital delivered an improvement in cash flow from operations. Open orders increased sequentially, as expected, which combined with our further strengthening balance sheet, leaves us well-positioned to build momentum as we move into the busier summer months," concluded Mr. Sengstack. Segment Summaries Water Systems net sales were $286.6 million in the first quarter, a decrease of $20.0 million or 7 percent compared to the record first quarter sales of 2023. Sales decreases were driven by lower sales of large dewatering pumps, which had a record quarter last year. Additionally, sales increases in Water Treatment products were partially offset by lower sales of groundwater products. Water Systems operating income in the first quarter 2024 was $47.1 million. First quarter 2023 Water Systems operating income was $49.0 million. Distribution net sales were $147.0 million, an increase of $4.0 million or 3 percent compared to the first quarter 2023. Sales increases were driven by higher volumes and the sales from a recent acquisition, partially offset by unfavorable pricing of commodity-based products sold through the business. The Distribution segment operating income decreased to $1.8 million in the first quarter 2024 compared to first quarter 2023 operating income of $4.7 million primarily due to continued margin compression from unfavorable pricing of commodity-based products. Fueling Systems net sales were $62.1 million in the first quarter 2024, a decrease of $10.6 million or 15 percent compared to the record sales of the first quarter 2023. Sales decreases were driven by lower volumes as demand and order patterns have normalized. Fueling Systems operating income in the first quarter 2024 was $18.8 million. First quarter 2023 Fueling Systems operating income was $20.8 million. 2024 Guidance The Company is maintaining its guidance for full year 2024 sales to be in the range of $2.10 billion to $2.17 billion and full year 2024 EPS to be in the range of $4.22 to $4.40. Earnings Conference Call A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The first quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to: https://edge.media-server.com/mmc/p/np8yrgn4 For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below. https://register.vevent.com/register/BI69e000919c5c4cc4ab5f19c089297b7b All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the start of the event (although you may register and dial in at any time during the call). A replay of the conference call will be available from Tuesday, April 30, 2024, through 9:00 am ET on Tuesday, May 7, 2024, by visiting the listen-only webcast link above. Forward Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company's financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company's business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases,  raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company's accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company's Securities and Exchange Commission filings, included in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. About Franklin Electric Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2023 and America's Climate Leaders 2023 by USA Today.   FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)         (In thousands, except per share amounts)                 First Quarter Ended   March 31,   March 31,   2024   2023         Net sales $ 460,900     $ 484,551           Cost of sales   297,320       322,286           Gross profit   163,580       162,265           Selling, general, and administrative expenses   115,644       109,535           Restructuring expense   —       124           Operating income   47,936       52,606           Interest expense   (1,448 )     (3,147 ) Other income, net   706       409   Foreign exchange expense   (4,880 )     (2,044 )         Income before income taxes   42,314       47,824           Income tax expense   9,222       10,248           Net income $ 33,092     $ 37,576           Less: Net income attributable to noncontrolling interests   (133 )     (251 )         Net income attributable to Franklin Electric Co., Inc. $ 32,959     $ 37,325           Earnings per share:       Basic $ 0.71     $ 0.81   Diluted $ 0.70     $ 0.79           FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)         (In thousands)                 March 31,   December 31,   2024   2023 ASSETS               Cash and cash equivalents $ 65,314     $ 84,963   Receivables (net)   262,632       222,418   Inventories   532,242       508,696   Other current assets   41,175