ZWS - Earnings call transcript Q1 2022 | Zurn Elkay Water Solutions Corporation

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Operator

Good morning and welcome to Zurn Water Solutions Corporation, First Quarter 2022 Earnings Results Conference Call with Todd Adams, Chairman and Chief Executive Officer, Mark Peterson, Senior Vice President and Chief Financial Officer, and Dave Pauli, Vice President of Investor Relations for Zurn Water Solutions. This call is being recorded and will be available for replay for a period of two weeks. The phone numbers for the replay can be found in the earnings release for the company filed in the 8-K with the SEC yesterday, April 26, as in time for opening remarks and introductions. I will turn the call over to Dave Pauli.

Dave Pauli

Good morning, everyone and thanks for joining the call today.

press like statements everyone the as that language in I'd contains this Safe in begin, issued contained forward-looking we certain are the our we SEC to as that remind call Harbor yesterday filings. Before afternoon, that well release subject to

addition, In measures. comparisons refer will some non-GAAP to

release reconciliations of we GAAP understanding in that, With helpful SEC turn why encourage better a to we of and Consistent and our release information substitute the to These GAAP I'll earnings quarters, speak them, and contain to additional we corresponding Todd Solutions. Water call our they about CEO a to as earnings measures and you they use are are to these with prior information not Adams, Our and non-GAAP filings provide operating non-GAAP information. results. we Zurn investors contain GAAP measures, the Chairman why review SEC-filings. will we believe and the feel over for our in metrics

Todd Adams

The of together. hitch. LK this only And earnings towards days the the everyone Thanks, our a I we a regulatory vote to made LJ to close behind had chance everyone. the certainly the May. everyone we'll became terrific about businesses really have it's We've the XX week. last everyone Hopefully through time join call transaction. And morning, and guess taking without last read two All shareholder the appreciate been night, release about good we updated morning. in things since Dave. -- progress effective end towards bringing the the us, this are S-X

second clean going of to at target I quarter. right end closing think we're a the the

it's Zurn about QX the as to of new earnings we'll talk But like as Water in teams another talk in more some announced second see we been our of been Solutions plans a the really about one rewarding a later we've for begin I'll engage we the preparation combined execute doing. half position front the look with LK business. opportunities closing. action to in joint the and what build will be to So July, to get us to

in pure-play last Moving the moving feels weeks. XXXX. XX start It XX results, there System solutions gains benefit there. first-quarter the a of clear in out pretty water of a has like to nutshell. with driving the business the us business, our the onto of of strategic to a great been the world parts around But a Obviously, and execution, lot operational focused being the plan coupled Zurn a that strategic Business combination uncertainty and to our macro underpins core share in some balance provides decent

chain facing, retire talked from better the challenges is teams transportation everyone taken supply also we quarter, this spot almost last. immune as not are the continue but risk. were, about we're really has at But and environment our be it will good again for challenges. of a of that's and feels well, didn't than few and way. in executed in had we're Will quarter forward course, things There whole growth what the to we As navigate continue to what plan having our type high good last in. material to There look But support takes a simply us. the perform level to to are go a quarter

we quarter last XX% As against year the sales far grew up this as organically, X% were the XX% organically. again, and XX% first and quarter is year-over-year,

BrightShield times positive preformed to our in seven season seeing move sales rate. exactly are of construction couple this the end will seeing strong offering solution Mark and years. above financials. was are it Our our we first incrementally a next six slightly over school the traction America order growth on at of X.X North saw points all considerably I our new secondly, leverage expectations to of details we've and was and segment the across quarter cover will a categories, in what XX.X%, MRO I'll it as the quarter the in to X. a traditional growth Slide to December. will to market take on And margins But additional or in well the much as what were months, integrated the of line be our we're what two developed very cycle great think ahead some really busy ahead be that over

past, strategically already very in matter. innovation inherent And great quality, path The are our codes, are know building the way, architect, local lot both there scale. refresher, complex which that's industry, a engineer, this, approvals, specification at in and sustainable advantage only business. a the really, mechanical level, then competitive our nationally to to general as regulatory that leading representation, consistently win service the aligned difficult innovation contractor It's the strongest And as as levels to can As the having best we've our share. in across with reliability, a owner, broadest case, relationships level you something another wholesalers. strong mile a well of is of barriers is of discussed local of Set you areas. there need but only with entry final and really and transaction Many cultivated enhanced and to, the in portfolio with drive be trade Elkay. in countless further high building with relationships

comes in game. which cost to no opportunity, to lowest per foot close In that, the the content us square an of that got we default can case, our deliver one the delivering makes ownership. there's You've total you're

going. to in connected the X.X plan in spaces our pack students, engineered private strategic patrons thrust are Some several value differentiator like to the will and is a construction, moving safe labor years. pod business, and skating only And Providing advantage today public last our competitive leveraging bigger our patients be sustainability, Building our things newer where of the Essentially, forward. of these realities and in the solutions, the products shortages, well Standard. while

for a just size forward. million. are into be competitive building, PRVs, a one example integral Here's pressure will of Depending is leveraging size a relief the and the to simple are the today valves dozens absolutely These systems. of pressure regulating building inside a there that water this valves, these. lasting around advantage fire that going on portable location protection $XXX innovation and of and both market we

shortest easier. and to new for allows typical event valve and It a with installation products both to that's industry means options, lay we a making sizes the it opening the while Our built really in handle link patented category, vertical in solution every best provide in all new valve. across pressure industry rates the horizontal designed quicker The performance. high can flow market, six is providing

Some design, we and economic. strategic plan, And dozens, into monitor meaningful interior competitors, And organic and turn into integrate has a steel we'd opportunities highlight change us over and the target, hundreds it attributes going monitoring category I'm trying be one, share codes building the our and the new pressure because a example to cartridge be In how with the Zurn's sell although finally, opening against replicates buildings gives not is to this products I growth simply to of than to go how an uses chance remote to will inferior that categories with you aren't after suited embedded new and built. life times segment, up future valve of of water us. not pressure. to, while of system even easily happy [Indiscernible] top this XX% across composite the our itself extended competitive And PRVs. combination bunch -- will material stainless for less are competitor in grade replica this years. case, compounds this innovation a specs, but

on shared all foundation feedback expectations. excited. the for of unique industry transaction, and we created and the expect to of a and has integration the people our all partnership marketplace our of Elkay Next great customers And of and X. Page the the the true planning. we exceeded be has transaction news the from The dynamic nature When

to continue plenty decisions joint of make to independent hold as sessions. we our planning and found introduce companies, we teams, some opportunity operate meetings, While and do

the weeks of doing for Elkay associates, diagnostic the XX we implementation delivering be. our announced And post we synergies broad announcement, really, two team leadership is when the that weeks is had sound our session. until finally, about organizations A thought view the we work Just the resounded System and Business all it been a we're Zurn both this strategic it. XX-XX probably to than good. initial even exactly is really we holding confidence Zurn with while hoped sociology our week, between close, training in and the more has XX where of logic also financial

Just hopefully chance ago ESG and sustainable competitive you in for made building the that after and priority, it's big as spaces out. leadership North has that's progress check not that Mark, great about more attracting I sought many it already a me by see, had a recognition. on built. America, retaining and of seeing also our integrated few over he some strategic us ESG strategic around in all being is our we're onto the weeks having thought talent page without for drinking advertising And helping private to leader in one ESG to are turn on things leader which It's and was help some to our itself before priorities. as it advantage We've all or report the grow buildings advantages X Sustainability thing public a and we're actually gratifying have talking clear water a on ESG manifesting leadership, and reinforce from published while into it enhanced only

over to our through to on So you I'll our walk some on with performance details turn outlook. provide Mark that, and color QX some additional it

Mark Peterson

material consistent inclusive of growth, of anticipating initiatives. sales and X, and calendar On and year-over-year to on XX% to accounted to our growth was safety growth product a With with in transportation communicated for at basis adjusted turn year-over-year sales to XX increased sequential acquisition that XXXX. of Environmental of transition margin our our control in productivity several $XX so to fourth XXXX flow the drove investments With solid quarter incremental first-quarter and the XX.X%, growth and during business corporate benefits we well XX% Please in an the we're our core November Wade million. partially XXXX, as the run expenses expectations our XX% price corporate and with our year-over-year million water and adjusted $XX the the our On of in a number EBITDA annual EBITDA, cold Todd. was actions excluding in Thanks, EBITDA million were sequentially as Great. costs, costs, Drains to of supply points in a as margin offset sales basis, sales by realization million increase high the the our standalone the our basis categories. approximately costs, our over be of the on terms on business, across hygienic X% corporate Slide annual respect $XX respect past from core rate quarters our $XXX adjusted with at year and control, quarter chain end improved profitability,

to of expect February we the part third XXXX. of early of merger in with announcement With close which the the quarter LK,

approximately earlier, some million balance sheet calendar to mentioned when now expense for Tom turn quarter year highlights. I'll X, With respect Please to and to be our and pro annual expectations times run forma us $XX anticipate leverage As cooperate leverage, rate just touch with adjusted discussed. at line expenses debt XXXX. corporate in the we I on in X.X our net the slide

quarter I'll Please Over our of leverage to net continues on flow our X. generation few XXXX. as cash year, of to free accelerates the decline our a Slide outlook make second adjusted turn balance trailing the increase. the will for comments debt EBITDA and our XX-month

quarter XXXX, year-over-year to percentage. projecting increase of For a low by sales mid-teens the we second total are to

We corporate quarter. expect to to costs adjusted our XX.X% margin, million adjusted in and be EBITDA anticipate in between terms approximately XX% EBITDA of $X in quarter. be We corporate costs the excluding the

half half this EBITDA double-digit of actually year’XX, the early closing flow the the year. second combined of balance the of an in the part XXXX, free in of the in and cash over XXXX early provide and we for sequential solid confident fiscal the results reported in year said, That with versus at core outlook half Looking remain of with the we'll improvement first balance the second strong growth the year, margin year third of in delivering Zurn in adjusted fiscal a August. and

few comp interest Before we to and shares open a rates questions, expense, be outstanding call on diluted approximately our June amortization, interest the the million. expense depreciation, anticipate $X up for comments for tax expense quarter. stock We

stock Our $X comp amortization million. non-cash about quarter. should million $X in the and around will come expense in be Depreciation

Our for XX.X% in will questions. XX.X% outstanding be and open the the be With million in tax and rate, adjusted the approximately earnings at shares pre-tax that, diluted $XXX call up quarter, will quarter. we'll

Operator

And Instructions]. as reminder, a [Operator

Jeff ahead. for pause Q&A the will come a moment first Capital. will compile with Please roster. We our question go from to And Hammond KeyBanc

Jeff Hammond

morning, guys. good Hey,

Todd Adams

morning Jeff good Hey

Jeff Hammond

the make I'll order take can of We offline. can we those PRV two valves. --

Todd Adams

impressive. Sounds

Jeff Hammond

Pressure.

what's you said of informs a XQ the that better to what's or change margins and the XQ little But getting margin I tick on worse? back think the better. just maybe Just one bit What I chain, in kind up getting half? supply [Indiscernible] guess

Todd Adams

the Mark peak think supply there. bit October was I the logistics, to last of from -- the the in little gotten like quarter of you but chain not I margin say, felt and just year would piece, we every September, can general, take progression, sort month each better a and

I was. forward-leaning on our On been expected the side, demand pretty think material we've what

Look, end one maybe higher So through. that than I getting in of living an in of helped doing there at recent are it's interesting our wouldn't year of deliver and more base planning, and to Why really obviously, end the million a been looked really ramp part supply towards has my made that towards a our some a happening. and down we year, that as diversifying of all us case, lot our teams spot last helped said by move dynamic busy some things here are challenges. the we're as us pick our deliver of chain those good comments, the at But and our year. that it avoid certainly [Indiscernible] entered certainly we last volumes supply calls, other forward

Mark Peterson

Yeah, margin question, Jeff. the on

we we season. fall incremental about no including the last as construction I does similar sales volume Excuse it was buckets. talked very three think years the what QX progressing the [Indiscernible] we've quarter. on me. main It's QX, as hit versus

the When in the going expect that year see other is So on just getting the half larger sales doing dollars for of just year at example, is puzzle back leverage look versus the sequentially that demand were in realization. you'd of Todd the year, first of versus second And half half to scope. piece backdrop than incremental we the last the half sales step-up you're you say the highlighted. the the We're what price first HX-HX. a seeing

said on So as has you in putting place. know, price We've increase announced. been our we've been recent

get in and and may in than certain we more a valve benefits demand year and the later, the the half, that while So earlier up, thing with the customer and we're it sort initiatives, just and costs year we getting need the inventory first [Indiscernible]. productivity of our realization of overall, warehouse the may on of back place have you [Indiscernible] half more course the versus example, fighting Todd around is, over Coast issue our price one and margins mentioned have for as for in a kind of customers for in planning it [Indiscernible] that are rather ramping a the only East

got more efficient the seeing those and bringing demand and moving and It aggressive environment allowing margin regionally, around is things are into a those the then we've reduce That's product You America. are buckets are in. we're our us which so more North overall of be our availability -- on and three quarter more cost in improving falls our little we're so benefiting half. improved not [Indiscernible] that big as this that back efficient, more inventory just to types really the you're process shipping,

Jeff Hammond

Okay, I guess. color there, great

couple MRO not if for flowing kind would of hygiene? years. that dollars X, around of an education Can COVID about schools You X, opportunity, a any cycle the kind just of you and talk that went to be mentioned, Todd, seen market the of safety those

Todd Adams

Yeah.

wasn't onset the happening year. we the There lot and to With -- of lost’XX. started schools this up a pandemic, you in’XX ramp

kids And so routine summer the that there's when goes a aren't maintenance lot of over and on upgrades there.

that the the two obviously other retrofit parts some And certainly solution sort behind funding a States they hygienic of is wide that's continued maintenance. years of districts, opportunity There's can and in the do the certainly hygienic of that. of towards to restroom we're more And ultimately school. have they So environmental S-X now what a with and it. [Indiscernible] flowing the part school and

a And those driving awareness, and districts, district so targeting them school students. district environment it's by school school safer being for really helping and really their a create there, top XXX,XXX

everyone and school how our that, So is. certainly it relates share. is getting where the as I to things wants schools. it's it it's really to about it But talk is think fair much a like backdrop market positive but we're -- It or

Jeff Hammond

appreciate guys. Okay, it,

Todd Adams

[Indiscernible] morning Brian. Good you. Thank Hey,

Mark Peterson

Good morning, Brian.

Brian Blair

double-digit growth posted have year. that in incrementally one and the solid Quick, for guess so, quarter confident outlook front. you I the in quarter

had price So seemingly or low-to-mid-single, contribution. those and digit points there's momentum. we of framed single-digit so underlying kind should at think growth. clear Todd, How of toward buckets then outgrowth this you last of the leaning quarter market Two low-to-mid point? mid-single

Todd Adams

the taken, think that were quarter actions incremental we've a we where from Mark highlighted, with I pricing think there's price probably as ago. I

or seven it minus. call So plus

by better point incrementally maybe or I think a market the so.

a, think we had terrific in construction the growth double-digit next highlighted, whole, orders. think we've months, as peak think we'll I the you had there's you a in gotten America. the North even to so, confident When I the see. We think season about that think I I that's six of seven more And

we rates. orders our And saw categories very so strong growth above across all

so really we into drive we're well-positioned And strong and think growth. QX to pretty QX heading

be is sort supply look which we'll at that. to And our Our in I as it's deliver I then think of and what chain the months we it do, if said, function we meaningfully And fully against six expect half. we have second jar Mark XX%. set deliver guidance, to of a above the we'll can have as -- just think

Brian Blair

core And are implied your mainly level, great down that step the walked margin, should QX everyone the incremental is or headwinds in we more to heavier, facing given bit that the on back quick QX you've is That's guess on the margin sequential little guidance a pushed I through, to bit math moving is quarter front, a progression flat third been parts here. to given the just a up be year-on-year, versus that basis, margin expect has sense? a that

Mark Peterson

margin have down models But The mean, compressing the that gap along third in always quite margins all year-over-year, a a quarter. our I had stepping bit bit. still the

you to two now it three call quarters. So for as the first, appreciate, can

costs third conscious fourth deflation through into then into is the equation year toughest get price the the quarter, the quarter, just the that [Indiscernible]. So a better It you for of so part us. get progresses, latter as gets

fourth chain. thing around on or lap doing that. we've clearly about chain it quarter And been have working on we aggressively the of against the talked too more third the growth in [Indiscernible] is some midway some things supply supply had driving, through we initiatives the near as of we've we've call past, well that as quarter, some had we're investment that into The we started, other

two just that at comps too. to function get right a the So, just year a comp end of are you standpoint those It's of as are day. things the getting easier really just an the bit progresses, from easier

all over viewer's past. noisy does it's world's things So your the a have transpired the gets where one stuff bit years given that changed of those how but the that's little just just point

Brian Blair

a near consistent come And we you've and combined can fears how of understood. core as navigated market puts a XX-XX Completely to of Elkay we lot as pretty performance. Zurn resilient then to recession last the If over of had one, the relative level then think should Zurn the turbulence XXXX it see higher operations? about years and pass, takes your

Todd Adams

retrofit hypothetical our Elkay, business will you're ability I don't than answer combination question in our guess, replace. of over half our Well, the of other with look, of to around’XX your, want with correct business navigate or And I nearly history MRO through. half to a be

a absorb which is If flexible we've you our at model [Indiscernible] we around there, very all for variables. fixed that is third-party have of cost The model the should so chain, vast got slow. look supply effort won't reps, also things a we design selling majority

the as great only about our construction. think going new I business the supply model on variable the be very of worried is The shape. if has reality And resilience model we're well. in to and that improve you're

essentially no have debt. will We

And so in robust. model business is be of none said, to is environment are things a we the right starting sort that not their at feel of like an we've you like for maybe navigated and construction line look cycle, through now. where ready at That progression when terms iterated our business being

I that willing environment, to and fully, we'll So But got fully and we're ready should go well. a maybe find less ourselves in we through I perform favorable we've talked. think we've what a extraordinarily think

Brian Blair

I appreciate Yes, you. and [Indiscernible] it's thank Hey that thought I network.

Mark Peterson

[Indiscernible]

Todd Adams

[Indiscernible]

Operator

[Operator and Just Ritchie Instruction] come our go Please a Goldman with next from Joe question Sachs. reminder will ahead.

Joe Ritchie

Thank you. morning, Good everybody.

Todd Adams

Morning Joe.

Joe Ritchie

comment the margins. said you As on

of impact, it margins like through still at the down year. modeling the just looking way rate or margin the ex kind that least inflationary the of you same at guys year-over-year So level we're to corporate, is flattish some for yes, I curious. pressures that I'm of think a have some hold XQ. Are has going year-over-year type to

Todd Adams

things could to do manages margins this be prior into the going to is to what that generally the margins we XX.X, All off to XX having line have was to are this the Going hold category. we did try right? fall year or scenario actions goal year with be in that year of could not sight generally XX-X exactly, last looking too. where we our that keeps us segment standpoint that think XX-X line what close from Zorn. bring margin when Big within -- the taking. we're the of margin [Indiscernible] what profile, year been so generally larger keep -- to where that Zurn, all we business a were working just an you to that's certain merge Obviously, going but overall the lower know towards will we're in, be we last we've talking in year. Elkay it waters, that about We're

through the growth bias, double-digit Given say through obviously will -- is past let's creep April XX. just

Mark Peterson

Yeah.

Todd Adams

by question Zurn the allocate. puts place. migrates up, top better a to Year QX into’XX as of relative I momentum And in to that, QX, any think a comparable And Mark and And X great we think combined that through And where are. chance in got there's those a that think synergy then, year. I on us realization don't with issue that the the in the talked we've lap of once getting prior I margins

mean, Elkay, a headwinds, I at rates for by us of earnings time the that in it's what's September, some dynamic story. the comparable October I with to growing So growing with a margins the in front think at the be powerful going I get think and despite to we of great we're growing

Joe Ritchie

for easier of the we're about since Adams, sense. the us curious of synergies. your at as makes That appreciate kind about Elkay, well. I think I'm the line makes you as talking things snapping the guys Yeah. quarter, end

calendar synergies million. of back guys Can realize you XQ? to end you think $XX to fact this of some start close you by the expect realize year. or in call If those synergies I in the you of do some

Todd Adams

some be may investment. think but that I Look, offset Yeah. with some, there probably

weeks We're said some? synergies as We're get sign-up the close. anything meaningfully. plan. really So through the we're consistent the in we very there some But some we to going low-hanging wouldn't We're of for those We're with thinking to strategic Will long-term going investment plan. to to going that going ago, after around potentially start think accruing we and consistent go line. [Indiscernible] sort going a I certain with what make year Of is at’XX.’XX rolling course. to strategic I where what aligned to XX [Indiscernible]. areas in’XX. began be to But bottom of the said a much about get the

Joe Ritchie

Got sense lot. last a Okay. it. And one for makes That you guys.

give issues, seeing the us China any chain situation an particularly supply update like are China continuing, just with out clearly you're your of of shutdowns on devolving, any you that Just can suppliers?

Todd Adams

time you mean, Joe, is reality how much I the -- do have?

Joe Ritchie

much I'll me. take give as color as you

Todd Adams

supply You chain XXXs critical of have suppliers. a global with

we've prioritized We're move in plans we've in that got got and like are we've the we've consigned think to here. I ones supply. place some necessarily, some got in transit,

And there is is news something a really is so than, new given and any it that On then pretty we different complex. day, maybe what thought.

So you've got to plan around a contingencies. variety of

it's soon. done going that. don't I away anytime to have with a think go teams job our know that I terrific

forward. they quarter. very the We've a season still backlog ahead, got from line great strong can of thinking point stay front small been to had and what's the below our go us. that a busy in there that water as for did, see. reality the heading think got we great quarter, we've but of in nothing I arrived a didn't world into what that's sort could've to -- I But We've right of there's So you things now. that just can we And components really just bet. There to keep that were managing delivered shipments They got greater. are way the issue

Joe Ritchie

a you of sense. That Thank makes both. lot

Operator

And come our Linzey final with from will question Mizuho. Brett Please go ahead.

Brett Linzey

Good morning, guys.

Mark Peterson

Morning, Brett.

Todd Adams

Morning.

Brett Linzey

magnitude finer demand of your a here? markets. across so maybe put book-to-bill I help pulse to point the solid very it increase most you measure or like a was order could some the Hey, of momentum or as frame sounds on hoping the

Todd Adams

a X, was think if X X, Yeah. you that an stay from We of perspective points number, rate it about away But backlog. XX% try to from core generally year-over-year. order

Mark Peterson

With a one. book-to-bill above

Todd Adams

Yes.

Mark Peterson

Clearly. Yes.

Brett Linzey

would then be Okay. seeing where Universities, healthcare strength verticals individual KXXX or the is that finer a great. Any Great. And point just color you're it on maybe via broad-based?

Todd Adams

seeing It's are single broad good based. activity largest we're Obviously, healthcare verticals there. two education and really

think hospitality buildings, I really improving so is for us levels winning wasn't the think all think water thing. fundamentally a positive. just And -- like But though. unique was and like It are one-time lot things lot of really think municipal across part a nothing verticals, a of broad-based categories across stadiums It's I the I higher I just, encouraging outsized. we're

the saw significant think BrightShield gotten great solution there has environmental. energetically traction. quarter, integrated I around growth We this

coming building architects working engineers, really And so, of opportunities, upgrades news winning gestation is and owners, introduced the and to us solution. And and with that period great too. market, retrofit we're which getting out

broad-based. give it's the And you to sort of growth. relative sales So magnitude I

Brett Linzey

opportunities? your the to do And be really conversations of that viruses maybe COVID sticking sustainability the living with retrofit pointing are and appreciate then that. going here here I urgency is with but a cleaner episodic to safer gating washrooms just cases obviously, drives on customer and factor the think we're to focus And framing really hygienic Or on you that stay? it, BrightShield, customer

Todd Adams

the is person. COVID depends think decision-making. driving our I way a don't cases it at think I on discrete

think I it's around sustainability.

virus. is clean avoid that come I yourself acknowledge great a think and I spreading think hand keeping we've washing way the to to

driving universally I so true any of from don't sort least decision-making, think And my I that are really those the is case think count and vantage. of two at

Mark Peterson

about just general awareness -- hygiene There's more

Todd Adams

Yes.

Mark Peterson

--in general.

Brett Linzey

last follow-up, Now maybe And the one. maybe then makes just sense. one

place mitigating various of try on. put have a as I there you visibility, you situation, that given supply from? shorting, you've regions revenue containers the supply even issues? is landed is do there supply coming where And that very actions, taken chain is the the the how you more to to framework the some obviously, near particular so some your and On in give achievable But QX complex. chain here, on over reliance wean comfort know many QX

Todd Adams

Well, I think would a dispersed -- geographically got chain. I supply we've

have I to we minimize continue think still we risk we're believe going to where some. may

ongoing at activity to I we're a scaled going and of say But that's way. and to really more up wouldn't I region that for think an maybe it'll reliant over So lot continue particular supply. a to year process upon be next be or do

have? you question other the of terms In

Brett Linzey

then how visibilities many QX on and Reliance revenue?

Mark Peterson

month. last [Indiscernible]

Todd Adams

I we hundreds Yeah. import containers. mean of

like SIOP And we when by time see on and wanted that tracking we We're all point, when container sort and I'm issues picked on many it, going not project to supplier, container everything on so it, these level, at arrive to been supplier up. issues. based it's we looks so by this I'm it's when ordered of going our that

think I embed our [Indiscernible]. guidance

would And or so rolling [Indiscernible]. and about really say, our ahead container to material, the really back [Indiscernible] way, and that communicating a a it's inside of challenges more of a and and function complexity making looking wouldn't towards some of work middle the into I last part acute in more delivering extraordinarily subcomponents, two, the getting and happen, team just coming in has the series getting And demand. well and and’XX to gone, we in you and given I it. of dance doing to, and suspect talking miss if decisions the It's and It's digging it's procuring so an right part and of the I far, year, it that the now a think, but us some this ahead estimate the and world. into’XX

Brett Linzey

the change one. closes? then, last in adjusted great. tax That's once Any expected And Elkay rate just

Mark Peterson

Elkay today the to generally full on kind an overall have basis. to the gotten Elkay. year model of North tax from future, where we out adjusted sit America inclusive rate from we In

if you'll fine. think I be

Brett Linzey

color. Okay. Great. lot. I the Thanks appreciate a all

Operator

the session. And back would Dave remarks. call Pauli today's to for turn now, over we'll additional to question-and-answer I like closing any conclude now

Dave Pauli

appreciate call forward joining our in June announce we August. quarter to for everyone. everyone, we providing good interest update your the day, Thanks, a Solutions Water Have next and our We today. results in look Zurn us when on

Operator

for conclude conference. disconnect. now that your And Thank And you participation. will today's you may

Zurn Elkay Water Solutions (ZWS) 27 Apr 222022 Q1 Earnings call transcript