FELE - Earnings call transcript Q2 2021 | Franklin Electric Co., Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Franklin Electric Reports Second Quarter 2021 Sales and Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to hand the conference over to your host Jeff Taylor, Chief Financial Officer.

Jeff Taylor

welcome call. Franklin and XXXX second Whitney, conference earnings you, everyone Electric's to quarter Thank to joining excited Electric's I'm be Chief as first Financial Franklin call Officer. you on my CEO; Financial Officer. is our Gregg With Haines, me Chief Chairperson today and former our and Sengstack, John review Gregg detail. will second today's and call, quarter highlights, results review will On quarter second financial our business I our more in some through for questions we'll have time we're When answers. and

statements company's statements remind me law, company we'll the the we that the made the statements in discussion we With available, and call as conduct could the let on All Gregg differ forward-looking results these now call, any Securities Form and of forward-looking our and Sengstack. as on currently to may cause over that, Before this Reform Report be making CEO, A to which obligation during release. earnings of statements. factors risks materially Private as I Annual Chairperson you within turn information many of are meaning Act begin, such the XX-K of will except today's from various assumes be statements. by actual in uncertainties Litigation no and to XXXX. forward-looking subject update call These to based are found required forward-looking

Gregg Sengstack

you, Thank us. joining Jeff and thank for you all

in operating of quarter. From of strong second history segments. we sales, driven sales robust a the in record EPS income and across We organic performance are for our all Electric pleased very perspective, delivered any our Franklin with growth the financial quarter

to end had the open-order the earnings that momentum environment. second quarter, At sustained last the the record of from benefit demand to four balances. thanks quarters, strong continue for a record we We delivered

market. water the on capitalize our water of two New million $XXX reached position North platform Canada. completed the of mass a companies acquisitions continue meaningful In in foothold We we Aqua, establishing US in critical that north inorganic Puronics opportunities in growing believe and We treatment water annualized the second this now treatment growing treatment well. quarter, the as has revenues to and American

to treatment the build our focus will among manufacture our new faucet. the and reached we from to water the on COVID-related well the Despite facing of and complete value continue pack out help the and distribute delivered much so water our systems shareholders, our factors as stakeholders. and to supply runway valued chain us market to position we and stand leveraging to As headwinds expertise for key globe, other do upon customers the to our add have records consolidate, continues

We systems fuel our grow line as while will are that through provider to as far continue global competency platform global in system our leveraging take and and of confident design. a extensions, geographic we us water expansion strategy current product and

about Our Water and and a an which in quarter growth $XX commodity regions. end XX%. amount dry segment XX% had of million revenue and US Systems any in by housing organic demand demand and XXXX at continued Despite open of business robust strong $XXX our and the $XX our had East, continues this of of led groundwater orders compares our of XX% the America, all continue overall well, in recovery was Systems XX% growth systems prices for growth water be a Europe, about record growth the at across weather pumping to in Water to over Water developing strong to unprecedented the the the second organic to global as demand. Systems in the US, record revenue time second in the with the XX%. XXXX. revenue million. This In increase quarter drove quarter revenue million combined agricultural thanks end both Overall in Outside recovery XXXX total in at was see pandemic Middle businesses systems of quarter. revenues, Latin Demand organic US, globe generating to

same business Franklin's the growth term. facing history, reached we leverage million pandemic, company. in of constraints success XX% quarter. growth translate record the role operating into Our the underscoring will opportunity second throughout much global delivered build overall and expertise the performance our When for and catalyst for about profitability also XX% a $XX faced revenue topline strong any our distribution in of this over of a Headwater's in US has improved. Quarter-after-quarter supply that space as hold quarter grown current revenue for further growth to Headwater with segment's economy, organic long producing chain income this the future

and with Our along of Fueling up of Systems in revenue in second our markets. This increased saw as in and growth and revenue EMEA American producing growth XX%. momentum the XX% Canada was revenue sustained organic with US business well quarter Latin XX% led performance by overall the strength strong growth

We the second have it quarter post-COVID regions of have of occurs a end as to positioned capitalize ourselves the million at quarters. the in end orders the increased less last open developing $XX million strong about business those and $XX than to recovery in three from regions. At

the development. of capital critical every us our capitalize cash outstanding business. play organic of strong and emerge our allow and especially to headwinds am growing to regions the strong we from to performance and growing thanks flow still continuing across years a challenges issue our end, team it will Solutions post-COVID globe us we quarter recovering significant in To considering continually many one while opportunities extremely that the year. will forward free inorganic vital balance generated chain demand our and the to sheet will of for see updating to the so across we maintain Systems remain globally. I and global will segments us for future presence to look that Fueling rig you on and the that the reinvest that on of balance our coming demand forward, role proud the appears electrical Looking of we build-out Throughout in over this energy face. many Grid continue and and it a is surge. components The raw through the materials is Availability global supply other enabling

in increasing will particular Additionally, freight Jeff both for in we see the these operating also have continue but increases a is announced to current issues materials experienced In decline. half part the of effective input moment, for to margin in we Water additional in business rapidly quarter. skyrocketed components was able our the Systems the with costs year. and environment. in to not and in explains response, address be inflation more offset price fully This price we Water the Systems our which second income

maintaining For demand some Despite are our environment, the XXXX. $X.XX cost we in in earnings earnings the $X.XX business in current rapid of restructuring guidance this so price increases uncertainties. supply a is units robust before given per of range far year third a increase our to in share chain

strong quality, Franklin's factors cost. forward, staying Looking and foundation are service, the success; availability, we rooted excited in we have innovation, for five key by built about

experience in We customers to the products superior see continue to due elevated deliver. we return

the the term outlined our our our practices success. for in and continually sustainability updates ESG to success look the recently to stakeholders industry. report innovative progress believe ourselves over customers on our integral future providing to in over are We updated journey forward sustainability further our involving bringing more initiatives for our products are providing We and We also long to position that excited sustainable long-term.

a us global through CFO, new and our I before segment, through a of steered number Electric from the most that has the XXXX script John, right business, the here, turn the Headwater Now, to number crisis. as go call I Jeff, Haines. across well recently, with want the a segments. in before over the and recognize pandemic. standup company. through of financial started been it a and as water has other of just to navigated as treatment our John bit John noted Distribution John And as He off little acquisitions Franklin acquisitions, our creation retired of

And so the us and on years. over of with thank – been take I number say have just you moment call want a with John John. following A to you to to this

I'm for think as all that I well. you So saying thanks

I before the so that, turn call just want I to do over And to Jeff.

So thank again, you John.

John Haines

Thank you, Gregg.

Gregg Sengstack

Jeff?

Jeff Taylor

Again, Gregg. you, thank

share earnings a quarter of XXXX. for diluted of in history fully at for were per quarter quarter company's the record for Our the $X.XX second the XXXX any second $X.XX versus

manufacturing the expenses various related a impact segment expenses also in in in was quarter Restructuring the million on to restructuring no compared before manufacturing second the quarter segment, $X.XX Restructuring of $X.X activities and realignment impact the earnings related million were Water the activities expenses of in XXXX. primarily Second of $X.XX earnings and quarter second Water had share. in various were $X.X in XXXX resulted were of XXXX per were XXXX $X.XX. share the EPS second impact of quarter second before to the per quarter realignment to on restructuring EPS and

of to volume of compared and Sales in sales compared Water of equipment million. by about second equipment Water and In were sales Sales second were quarter Sales pumping were and XX% of of end sales XXXX resulting from million, currency of quarter $XX.X second XX%. XXXX the in US in up last second sales acquisition-related by to to Canada XX% businesses by surface XX% about million. of were Canada outside of markets the and up by about the pandemic. of quarter the translation. price. $XX.X quarter increased US up XXXX, organic revenue the due was XX% acquisition-related since strong in equipment or in demand XXXX XXXX, sales $X.X dewatering and acquired Water second due market foreign from Second million to versus pumping from year increased were sales, to XX% part in Systems the the all Canada $XXX.X sales the and due overall. the quarter about increased the lower The million. Systems second sales increased to due XXXX, US quarter groundwater about $XXX.X the second increase quarter. quarter sales Systems sales XXXX X%

in of of the price to Operating sales X%. organic quarter costs by Water two XX% Middle Africa and Systems second delivery costs in compared the North Systems margin to to translation offset issues and Operating increased increased which driven of First pile the was XX.X%. Latin to increases Systems year $XX.X the US freight currency about million quarter Canada, and East America, of costs was not XX% the instituting supply across markets. America. XXXX product in for Water of shipping surcharges XXXX. by for primarily second in Outside operating quarter sales and higher margin quarter $X XXXX compared mostly all their cover sales also freight with prior more items: income these second income in frequent Contributing Foreign $XX.X Europe expediting, operating insurance primarily the margin resulted by fuel. income in many income million by million points and drivers increased due are been have decreased to Water higher that suppliers fully chain along shipment the

XX% businesses the a As by and management other items about the to Canada second incurred income of U.S. in operating revenue effective the Systems about was for of of of sales quarter. And sales Water and percentage profit quarter million second charges second U.S. the million. at in costs legal due in second price fuel of quarter. shipping transaction, administrative resulted $XXX.X about quarter Canada were SG&A for primarily second the and Africa initiated basis million freight Systems quarter pumping the third two in second operating and the and a of the result second versus in gross sales XXXX, The quarter Operating million. lower by was second operating sales Fueling record $XXX.X in quarter higher XXXX piping, XXXX offset offset the segment Fueling at and Middle general sales in the gross its quarter. being quarter XX% from increases XX.X% the in second quarter $X.X quarter XXXX second margin administrative Outside $XX.X XXXX second gross second million to $XX.X a price to about regions the record and operating sales in the XXXX quarter company's These of China. of increases. has and sales distribution the quarter million increased unit the combined in compared XXXX. $XX.X XXXX cost acquired second by million compared $XXX.X million acquired XXXX businesses to was income from second general distribution was the Fueling primarily million. second the in driven Europe, of million compared second Fueling to X%, Canada flat as and in due XXXX and The versus higher were August increase was East $XX.X sales. and leverage. $XXX.X points margin to million XX% XX% quarter Systems or to operating of of grew Distribution XXX the second million. and compared for in $X The and quarter Latin an profit increased due the Water growth part most of increase a product of about of were increase quarter. SG&A broad-based The quarter the organically to in expenses lower sales XXXX profit million by The $XX.X growth Fueling of from since million. driven in X. of second of quarter U.S. Sales of revenue XX.X% Selling, $XX.X America, by were increased demand was higher $XX a distribution XX% XXXX expenses versus was compared and essentially income XXXX in XXXX. systems. income quarter increased sales the revenue by and XXXX Systems increased driven Systems net in to second demand income of Systems were segment all $XX.X second by consolidated categories. by organic in Systems

$XX compensation is million SG&A is about which commissions by higher of Excluding acquisitions expense and $XX.X million expense variable higher sales. on

other effective tax million. as compared XX% were for and sales legal quarter transaction, about costs of to administrative a second of in $X was were about second The addition, quarter XXXX year. XX% a events. for rate the net below In percent XXXX. SG&A costs slightly XX% result rate to projected last XXXX discrete discrete rate effective primarily of be the net quarter in The second is percentage tax pre-tax tax the fundings was of about adjustments. as before decrease The of of the a favorable balance the

quarter, million the the with for million over mentioned, shareholders to quarter revenues. As versus shares of net of half ended authorized repurchased share the to of concludes question-and-answer be paid the about XXXX. its turn capital that XXX,XXX. company support of during share per the $X.XXX primarily of second market due At now before period to higher XXXX. the X. balance during the requirements lead $X.X our $XX August earnings may total the XX,XXX prepared about of on of of a first about of end shares the Whitney for in operations of is stock its from company call remarks. cash session. the that be of like full purchased year the generated will The restructuring per guidance was Gregg August on $XX.X open in million second company reaffirming cash dividend $X.XX the higher We'd about million to XXXX cash decrease remaining to record quarterly $XX.X common same flow XX to This is second expenses company in Yesterday announced XXXX the of working $X.XX. a The quarter and The

Operator

Your Walter Liptak from of question Seaport. with the line Instructions] is [Operator first

Walter Liptak

everyone. morning Good Hi. Thanks.

Gregg Sengstack

Good Walter. morning,

Jeff Taylor

Walter. morning, Good

Walter Liptak

John well. of the a profit Thanks. and Yes. pleasure to Jeff margins best And distribution all good. with the question it's working you luck. Hey. hello about very been as My is look

have so or And all there like level this sustainable? some of just double-digits And the could in going revenue And distribution? for was profitability? mix that if $XX at million pricing back any covering fixed profit level, some Are half that Is that we a profitability look -- sounds if kind the of demand strong I is wondered on But or the sort kind may cost? like. there what was helped categories. was about of it new the thoughts that that maybe of if in is was

Gregg Sengstack

Yes. Well, let me take a that then stab and in. at Jeff weigh

First, we get this as performed, the the past. in we've operating business business discussed great leverage, is seasonal

as But It's and black the QX will act QX the that they But certainly in a solid we a if during factor averages It's for are cost QX a debt QX QX we're then So bit quicker kind of But the operating fixed to base. margins had good can lower of out quarters are execution in now distribution stronger know the overall, are little in. and manufacturing getting and and than in margin softer good QX off and pricing leverage just season, we've XXXX we the quarters, respect. those you XXXX, -- while great pay there's execution. environment. in quarters. that

Walter Liptak

organic that's there, how it I the too the much that and and that Yes the much growth? price wanted growth was talk some seasonality. volumes of was of of when right from – to dewatering Great. we Okay. ask from about saw how you growth about about the

Gregg Sengstack

year. On volume it don't had line. product single-digits this would And on we've really of specific then pick low dewatering? overall, I the price have But a be actions the in pricing most dewatering volume up. the earlier

Jeff Taylor

volume sure price. more it's than for Yes, Walt,

quarter year last impacted That second was line COVID. by that the product business recall was meaningfully in You impacted.

we that Brazil, lift Argentina, are that I Hemisphere markets seeing the Africa. in other would South in Southern think Australia, is product some note like I thing international

certainly some there but bulk as in of well. the there's it price So is volume

Walter Liptak

the of same is related? volume that for the And too Okay. that groundwater that is most growth

Jeff Taylor

qualified The product than that. About by water we But Yes. more is individual look by at times call we we – volume the – change change. more line. volume price this it do in at look it geography four the

Walter Liptak

Okay.

Great. Okay.

Jeff Taylor

generally will and Yes, that lines. through product across hold

Walter Liptak

related a is then was But one-time And expense one million, is questions. expense? let that just charge, quick else shot of I'll recurring And Okay. at or someone the that a legal what $X and that a a have to?

Jeff Taylor

well. was a was It view is it Walt, things. Yes. it one-time. as It combination we of – related transaction as

were So a that as there second fees. you legal that had were kind of then know, matters globe normal for are around course we as quarter. other There that. the for well. legal banker quarter And cost There a we did second treatment at in water transactions these also were in fees the that dealing in with surge the just the

total, in So of that as million about Yes. SG&A characterize we that and would generally $X one-time. was

Walter Liptak

Okay. Great.

Okay. Thanks, guys.

Operator

Your next Baird. line question Halloran is from Mike with the of

Mike Halloran

morning, good Hey, everyone.

Jeff Taylor

Hey, Mike.

Gregg Sengstack

morning. Good

Mike Halloran

inflation. the pushing pressures at How they'll thoughts thinking parity have you're And just point the bounce So system? pricing into can do what guys back likely you through, rampant. Obviously, some come inflation are environment, been out. of cost price when some efficacy on think about you

when on, would it commentary think kind things you around year? of thoughts they Any next some Just Is be bounce great. year? it out. Is this those

Jeff Taylor

I we the price more are US, in Mike, in happening would more we I the Water distribution versus inflation. advanced. it's It's and price specifically, freight dealing Canada would we We're seeing talked and And it greater Well, more what we're costs say, characterize – to then seems then that and year-over-year it's actually specifically, in in in Systems water second to as we're in than really is even we're about bit freight as generally, inflation. sequentially were And positive, second first in that freight quarter. adjusted at and did we Systems a Fueling the a where When way actually volume surprising I flipped the the meaningful look negative in experiencing that It well. think in lower costs. quarter. our us quarter

of cases we're his and then falling suppliers our on fulfilling in having chain our mentioned components, of trouble some that the with the requirements Jeff material supply comments, and behind with customers. we meeting and idea also, the as that of So, inbound getting because in were

So, to freight outbound side, variance very we're the all shipping on contributing expediting that activity year. is significant unfavorable prior a from of the

there's So, call to your signs question, that starting some of I that to think down.

read. have a the I you've our the more talked in example, Beach, country, the maybe other shape, Chicago, Midwest about I'm Angeles. being little there's chain for think bit supply Long in in shipping sure of ports constraints But and parts and guys Los through better then, seen

that part for little a bit to us So, it gauge. is harder of

of we of we half in effective price August have price we water X, us coming. also business, half third and the US inflation. a more in year way our along As going second this of announced which increase think is back the We go the to mentioned, offset helping the some

concern, kind So, quarter. that's driving quite the frankly, biggest Mike went of more OI driving about the where margins what's really the water and in

Mike Halloran

mentioned margins are based Headwater have sustainability revenue on going how level you to upticks about very thinking some you're the but Obviously seasonal thoughts And at sustainability? high there. a on the levels, you impressive, maybe just the

A –Unidentified Company Representative

Yes.

half in our very in about second year's are first margins just about range. the so margins X.X%. of Mike, Last at Headwater The half X.X%, end expected low were Headwater

half that in second So meaningfully be we better expect this to the year.

X% X% half. to high the of the expected range, in our second something for end think I

Gregg we're volume on here. their into some the But as job leverage -- said business done yes, lower a They've managing adjusted, to really -- nice volume a So lose costs. job we going has price. as on we're nice done periods go

So, getting we But of expansion X.X%. I that back to don't margin see that to half definitely first second half half. second think margin

short just of be we'll that. think I

Mike Halloran

inflation about water developing. on sort side, you, demand really there. pocket then, the broad-based of, that strong pretty basically on air you're obviously Anything It some, impacting or just seems the forward momentum. And worried like else pretty and you the curious worries consistent But a feel there's basis. like trajectory if good about here is momentum that seems It pretty yeah. anything

Gregg Sengstack

Again short-cycle we're a Yeah. business.

mean days But point, what in the I about we've than the normally incremental XX So later almost open it past. of than we -- got see to we most orders your people. learned

way work to plenty got we've So our through.

the through and the certainly very average to half We're US certainly good dry actually in in Africa. in chain As demand had well East housing, in go supply catch documented commodity to North back we're the It's prices. down, up strong year, the continuing market be dry, going been that of strong America West a seeing little age on bit West. timing in a the issue the seeing dry America. demand in but Mississippi East, shipments. little Latin or of We Middle bit We're of good Europe, some

So the as Asian we see still market strong.

not really and and that good as we're strong coming well pumps in our also business. smaller that's there piece metal way businesses our dewatering our our So large as air a a -- an impacted as of commodities margins, it in seeing for demand it's overall anything out the of with up much pocket with prices

So really seeing and product lines the across all we're demand all geographies.

Mike Halloran

hope pleasure Great. you working last great luck. over years. goes I well want been for And really appreciate in future. the for over that. of luck. just thing, say the And a a of Best appreciate I the all with It's help decade I best one to everything I John now. you

John Haines

Mike. Thanks

Operator

Okay.

is question D.A. Summerville line of the next Matt Davidson. with Your from

Matt Summerville

order great around comment A respect sharing or historically remember John so. congratulations. last the yes, Gregg I you over years to open this It's And you working with don't that. your of guys Thanks. XX questions. been number, couple With

going backlog. use XX of the word a of mentioned days So for little put I'm that? the around word lack can you context to a You better more

much will. you if backlog back days and is more of go term So a that if What you normal at longer over look a Franklin for XX number period?

Gregg Sengstack

on because Matt we rapid to and business; selling normally short-cycle your basis. orders a that Yeah, we're normally point, about isn't pretty talk a it something filling we're

the the of of be XXXX, second And for year, like for at our was second $XX million. the quarter $XXX XXXX million. to manufacturing think the back the this look it end about you closer end quarter I it'd at business typically So if company

billion of $X.X as rate, a million, business being you at that number. to run $X million if look our of, So you kind it, manufacturing or run month incremental rate $XXX $XXX $XXX kind billion that million gets

wanted you what have working the So it past as on, would significant say catching that out is call that we're it was that what orders in we've we we on enough much than backlog and higher to up. seen unfilled

Matt Summerville

their be four the -- And in own seeing typically a that rates do that like standpoint whether they do number to get get saying? your sense order end as would Do is demand, supply? up about are maybe may product you and fears trying the sense or what on get ability given indicative five. three then get the ordering truly stock to sense order whether feel is you to indicative of the of of they're or what's get instead a that truly door ordering trying demand to that supply that you chain from point, concerned this for I'm incoming their the feel type customers channel I'm you or of to you like you're the about going

Gregg Sengstack

of distribution and Franklin But indicator itself. we our Headwater one that of it's product market in have there's US sure greater than Headwater of the latter. I'm some is purchase our sell-through business the of one for is an buying. -- again, rate lines the the is The is that things

So inventory down they're are as others. clearly drawing

to demand demand be So normal trying robust -- pretty across environment. It going you're refill to the inventory consider see customers globe, they back was basis. to just to on up at requirement go-forward a a levels one level, what

some at what XX% in system might But fueling is example, our look on which as we in see you a gives of And that inventory going your -- lens and just cancellations. States us you're the also year so ordering fueling point, last revenue. when distribution on down me business the what Now the and States, multiple or we numbers the some bourgie, may there's suppliers, of a view the be look to demand to outlook anxiety see it United the add strong. they United to is at remains were in over I some mean broader for can ordering or lot for we world, of our not side business

the example had to thought on the market back business. the the revenue that's had maybe the our for end in was initiative a in fueling of we the fueling to distribution US Well, that looked year always Now companies, the in an I've year we the coming sell actually EMV. EMV last now -- neutral fueling learned first at that we to that one now ones quarter. record was

surge of fueling. I strong So that because we're not seeing in a think

So the it US, business as capital than and in dollars in market other seeing fueling quarter spending their the up up, strong EMV. end marketers are was things XX% is demand now the we're

So that's as good well. for us

just we're a getting in we're that sense channel. inventory the So really there's lot of demand strong and a not seeing

a So And overorder to that fair it I'm they get sure risk so overtime. out a rebuilding is trying share. their of there's yes, inventory there people

Matt Summerville

is August And magnitude? you and If a the then, next in talking you've the what want maybe already -- I put about. recap The contemplates we price. in already magnitude follow-up can this X had of what pricing place on and in for pricing wave terms set magnitude I'm to just the do of place

Gregg Sengstack

Yeah.

increase two Matt States There in of our the a was all case second about and increase businesses is talking made where went X% one this price a In So, price August the all X% have of again. least businesses made have spread we're price and in coming increase, actually in then three what one at many a water quarter. now and price X% is the the United our think of the highest I negative increases.

kind we're the world, look to getting the list to that at everywhere, the When that's XX% magnitude that's of ask different XX% around the So to somewhere of but kind that they're three. price businesses of basically increases range. price order X% X% the the range, of of makeup you -- in

Matt Summerville

queue. there Thank it. I’ll and get you. Got lever back it in

Operator

you. Thank

Your is next with the Sidoti. of from question Chris line McGinnis

Chris McGinnis

already, they're maybe being and integrated? you on to for Headwater just questions. as can Thanks. taking morning. is forward? acquisitions talk as the my the -- And about the how the thanks retirement and bit Thanks Yes. Good you for Can well. going plan help Puronics that Aqua John, the and going well just or a they little are congratulations And

Gregg Sengstack

Yes. Chris. Sure,

treatment the course, we’ve companies integrating quality a platform. acquisition is last months. we'll dealers. water couple last one over acquired And deep four eight in-water for the of reasons the Systems three the of in Systems is But Headwater is have, Aqua the a the of common we're in that years, but Aqua on So customer,

sales channel or and less that's -- deep effectively a maybe degree Puronics, for plumbing both the the the area. Systems first to pretty groundwater real Whereas, it's to us, new that in more wholesale and water, Aqua a So dealers.

locations -- Aqua So really business. for Headwater will Puronics so and that the at a outlet natural Headwater those those that can are stores be all earn

branded in water, well Aqua in very in branded Franklin Franklin one through that channels in very branded a and well well, water particularly are groundwater have as channel the segment that the will We large well channel. Electric products is quality has Water product, and done important Canada. go Treated will has dealer again, and done other But as the U.S. Puronics is a

large the of for focus that's the area So company.

Chris McGinnis

holding And just there? opportunities just can just lot bit acquisitions of the you recent And given point, opportunity? this at still a are little are out or M&A Thanks. the maybe you talk a that off about

Gregg Sengstack

at acquisitions up We opportunistically. word acquisitions would -- our across at Yes. use looked always the look John, standing new business. and segments We've

would also we capacity. pursue. about that, build do methodical So, you a have who we what -- the pretty we're number we're of me, and if like we know of available, I'm certainly engaged and properties were identified to they those

If lot business in team and his platform, one four pump Davis on Franklin respectively businesses were had we on businesses that. use had their Headwater of another getting cut one the back we the and in -- those deal their primary had to organic line you we up Headwater, of off. pump to did was XXXX, We with a when hands about, stand-up think initial with stood line --

saw whereas So for year actually lot seeing at the which -- now, have of had -- Western in suffered a profitability quickly. -- is going a it example, Hydro But increase. And there increased when did are Gicon very was there, decline was initial and that couple product sales end at we we competitor's of Headwater, Gicon line we’re the a sales in year, actually of acquisition on integrating and actually the sales years. completed first our last

see our deals capacity opportunities And our our for we do and another in and serves So ERP to ability -- them common now that manufacturing continue in well. as platform, we one and fueling, we and to distribution look at to online, bring for have platform both adjacencies. a

looking looking fueling, in we're and well. opportunities is business segment at water grid we're course our -- as subset of a Our which of

lot who over have of we He's -- President continue water business, the Kenney, businesses going our are from leadership to he charge, confident opportunities. to and at team other we is And the we're done and came up these get So Systems these the Fueling. of get a to integrated. Don look platforms leading integration with Aqua integrated water work. we'll of I'm treatment,

got don't So formal pause, see some things to I a we've taking really but us adjust.

Chris McGinnis

for Thanks in luck and Great. my good taking QX. questions

Gregg Sengstack

Thanks, Chris. Great.

Operator

questions I now call back the Gregg I further turn am this will time. Sengstack. showing the at to

Gregg Sengstack

our Thank for today, third call speaking after this much to good you have and a joining Everyone for to we look have quarter you us forward week. very results. we

Operator

today's Thank concludes participation and wonderful you have very this gentlemen, and Ladies a your conference. day. for

disconnect. all may You

Franklin Electric (FELE) 27 Jul 212021 Q2 Earnings call transcript