Zurn Elkay Water Solutions (ZWS) 21 Jul 212021 Q2 Earnings call transcript

Good morning and welcome to the Rexnord Second Quarter 2021 Earnings Results Conference Call with Mr. Todd Adams, Chairman and Chief Executive Officer; Mr. Mark Peterson, Senior Vice President and Chief Financial Officer; and Mr. Dave Pauli, Vice President and Corporate Controller for Rexnord. This call is being recorded and will be available on the replay for a period of 2 weeks. the company be with filed yesterday, XX. for earnings in the numbers July the release in phone replay found can the SEC The an X-K turn opening introduction, At Mr. remarks time, over to for I this will the call and Dave Pauli.

Good morning, everyone.

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

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

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

Thanks, after morning to the Dave morning title everyone. Milwaukee night. and good be Bucks NBA in It’s great a last won the

title, for City the last fantastic of so the since years XX So, Milwaukee.

quarter in to with with As platforms, momentum transaction had the creates terrific strong backdrop Regal. it relates for a RMT pending Rexnord, another we which both great

to PMC way of Water prior our the half in constrained transaction. strong, midst our and pretty want and of cash the the complex sequentially in first navigated overall only year we and cost a both to I quarter. margins the really were recognize second the very And teams year X.Xx. for have both Our flow leverage dropped against

organic Water, to blip, truly customer at with XX%, on organically, to XX the growth of Our top two the here commitment easy. only we exceptional, we to We performance drive quarter, One Hadrian GBS the years. XX%, in we make and In business. a that relentless from while down haven’t additional pandemic-impacted leveraging focus and posted second without last all of the significant results positive point core in culture, have plus integrate only in perspective investments quarter core our X% we line built speaks grew right quarter, one growth Zurn as and RBS comp a satisfaction, were margins last year’s talent on Rexnord. wasn’t were continue the quarters, margins the collectively now and XX% at in

Overall, basis year the announced $XXX we the get million of with of considerably the which synergies January. the combined when it for were PMC continued of a PMC in aerospace were was this from PT margins a the seeing our end as In than at And second the expecting XXX Regal, core quarter expect second quarter, as core markets had we XXXX growth contributor we EBITDA and time across second this basis on the recovery to year exceed the order higher XX% when to So run-rate. up to points. million, aerospace. business $XXX million down are XXXX announcement expanded of of all XX% and in backlog second where compared are expect and rates At we is core was almost to growth and sales half. split XX% up XX% core we anticipated, have only XX% we the to start XXXX all our businesses into transaction ahead in as the puts announcement of in $XX point, half in we be up PMC, really between organically quarter the our of started

To is vote RMT the transaction SEC. have renamed on Exchange upon time that, potentially come second fourth was the September in the that proxy for for early effective have through momentum PMC and the business once the quarter, or noticed consummate be After exceptional our the the the close, PMC set ticker contingent declared by a as Water this to last with Solutions, the performing far got to third X. transaction close late the we wait upon transaction, quarter, the merger And last ruling. As you on standalone a the there, with that shareholder it of sometime trade on perfect Zurn we believe its in under but to night at Stock coupled that in probably in as New Regal. the go separation, and I to recovery the will the exceptionally. IRS continue early continued date performance and Water to the York quarter and in ZWS mentioned we quarter, Water ruling And The related it’s really morning, even separation.

moat our and drive of continue specification investment go new of ago, the slide, build new couple built served Management of open If have spend drive to few over you the Water parts competitive a to markets, as on next I markets, minutes business. inside we have can greater we ramped our years the significantly up just levels mentioned growth to our last of

banner. safe BrightShield hygienic, clean of we under all, environmental by unrivaled haven that and public hygienic package that performance, brand students, First together for Zurn of that create clean of employees a are entire a and portfolio space. and of And taken experience. replenish The with is safe our be and their products a medical when impression a safe. building that have and positive it’s more and favorable clean private customers to we provide paired people and our relevance a backed the in based are equates bringing have show patrons to often know started space with consumables maintenance money, and and BrightShield all schedule entering staff, owners analytics they can of BrightShield public fans, can it’s a on to demand, products return more or suite walk the inside spaces. where and spend private connected and buildings With used up of more can safe market are

washing healthcare which patented have and like incredibly things important things We in hand even scores, facilities hospitals. like are

really All as adjacent well a channel from our opportunities both market. served some the for capability positive building ROI a come coming BrightShield product greatly and we There as that which offering will around months, is tangible in of owners. to lot more see this generates enhance a

our to and higher sustainable valve, us bulletproof turn built with energy in Hydro of creates sensor solution become hydropower-driven performance opportunity and types ceramic ceramic of of you to creating the BrightShield, at as It faucet that’s sustainable compounding for for recently to water X design with we the basis all maintain gear-driven, of quality solution. drives marketplace inside slide, the our If launched faucet, and a hand on benefit embedded easier gear-driven washing. diaphragm actuation one It’s this a the the install settings. next only an platform

in technology installation. Flow inside and perform use allows new best we next higher a costs is the flow have far rates the industry drains the to to building Force the level, the Stream. launched just Systems, reducing the cost at by Flo owners the of slide, of fewer turn that you patented If This building to through product

and is ago. experts of lab developed We the this XX days hope absolute it over are this industry to an launched X,XXX in taking is is our and of away building we betting has absolutely in more cost What flow have actually homerun with mechanical part basis the so of we contributing Today, these this. to of design specifications anything solutions are and that active is proposition. since from part an of important it’s you no a the exploit it drive the Superior I making portfolio is which about are of building over XX establishing many competitor construction, solutions deal health, been With close all plumbing ample who the value to growth that, only as Mark. to and we for environment we cost powerful human I become really unrivaled with opportunities years. important safety coming see sustainable move cost to Lean forward the and solutions solutions, water with to over will more our equation increasingly that it inflation. going for coupled turn effective, reduce owners

Todd. Thanks, Great.

our into starting benefit XXX basis the as expanded XX% a XXXX in translation divestiture platform the quarter of in temporary in and actions the and and we acquisition from platform SCOFR platform, total margin from drove the of points start June positive points, our cost business The first we reduced to Continuing on quarter million. and approximately year-over-year EBITDA in quarter $XXX our a June our X was quarter sales the headwinds core to basis from second adjusted sales contributed experienced on third of pandemic. increased the from year incremental margin Management due level, On contributed translation, our strength orders second Water across the driven improved increased a quarter our basis the last up the backlog a increased in our portfolio the the from quarter, that EBITDA the XX%, XX this improvement prior $XXX realization during XXX small currency XX% we increased XX% Slide Positive from and foreign by broad consolidated COVID-XX by quarter #X, Hadrian foreign At year-over-year as were XXX the point partially sales contribution PMC basis, the down core was please. by Hadrian point acquisition basis to despite the our our Let’s the Please offset entire growth took an currency year Water year platform to growth we point review our X growth heading points profitability, The XX% increased adjusted that volume in XX.X%. quarter X will year-over-year to growth. reduction the of sales quarter. Slide results. prior quarter, to only X XX%. finally, resulting X%. million With product other our and in turn demand actions faced June second respect over productivity Management our

in As can COVID-XX platform at at With prior XX.X% margins year-over-year the of inclusive temporary platform our quarter, profitability, related prior EBITDA as solid will low actions well. year up year. deliver by of we the in our margin quarter increase a the mix to acquisition, impact investments. growth of as of were The was our comparison a second and half respect expectations recent margin which in for Hadrian the growth core impact XX% we Management the third we the double-digit from over XXXX, temporary took delivered the quarter year the the look as in step see Water feel the as cost and year-over-year back both comparison growth in adjusted well to reduction the high-end impacted the we

XX%. to PMC, XXX increased a translation, markets, reduction core by increase includes in sales XX% basis The small benefit our non-aerospace a a decline end the that Turning was point increase and in aerospace XX%. a XXX of partially core of fourth core in the China, offset by XX% for currency basis quarter sales and anticipated divestiture point our driven XXXX was end sales foreign increase markets sales which from

With in decline second we in the geographies, XX.X%. implemented the our as just our Operating points EBITDA to each The our year-over-year quarter the rates increase our to excluding end XXX and the end improve first which first quarter down cash were XXXX month core ratio X.X. quarter actions markets, of backlog, Demand to in execution quarter, to of trends again, end reduction a again book-to-bill growth at aerospace quarter improve increase EBITDA, continue more American our with year-over-year the book-to-bill year’s sales in last and adjusted to continued leverage XX, resulted coming were the the reduction respect start COVID-XX to orders growth to an we from markets the in sequentially second XX% the XXXX markets as margin in Please solid our our strong in flow generation aerospace orders the ratio margin backlog sequentially net was quarter at from demand June progressed. as our an in of and trend our debt markets, from up with the Slide sales up SCOFR sell-through, positive end channel X.X. grew turn cost non-aerospace the of With XX% resulting half of orders in due XX. Please in our pandemic. saw from growth distribution was basis and than headwind from turned under improvement While adjusted free year-over-year North over and with up March just a turn in all #X. reduced over end and temporary Xx the to to X.Xx other nearly from was cost XXXX. offset structural year-over-year quarter, benefits the year-over-year initiatives Slide in a quarter,

outlook we the percentage total by percentage our Water sales increase our external close anticipated timing and said, Water Management transaction, adjusted to projecting between are RMT we in to are and our for Management will to to in margin between increase XX% sales platform and platform. With expectations, platform PMC our PMC by the projecting mid-teens a be platform year-over-year be Based we XX%. our a Given on continue limit expect in our and in quarter. margin XX% upcoming high-teens that that our adjusted will total platform the sales for EBITDA XX% EBITDA our to we

corporate the be quarter. $XX our expenses expect We million to in approximately

on depreciation pre-tax the Before earnings to tax be XX%. amortization. our rate, expense, anticipate comments the adjusted questions, call XX% stock expense, in comp tax we We rate September to for and open in quarter interest our few a approximately up and

Our for approximately to be expected interest September expense the is quarter $XX million.

stock questions. non-cash come $XX we should amortization expense million depreciation around million. will With for comp open up Our about be and that, our the $XX will and call

our Capital of from [Operator KeyBanc the Markets. Hammond from Thank Instructions] line We first you. have question Jeff

Your line is now open.

guys. Hi, morning good

Jeff. Hi

Jeff. morning Good

wanted of to a really better get really So, driving the sense just business. water what’s XQ

what the seeing Is the more was it non-res that biggest to surprise side? broader within or broad-based? just are model. you hygienics in my that, think is the I momentum And maybe it speak more on

Frankly, Jeff, Yes. business. the entire really it’s

a the continues start systems, months all things start begin in to XX to now. hygienics think we to months were But are to opportunity us. huge flow ago perhaps I be that XX seeing for supposed

host control other We with continue products. our to have safety water backflow great and a traction and in of

think of see with year all and environmental just have really, part than and we So business. And index frankly, come look, XXXX non-res beginning Northeast mean it you – the to great back rest is the broad-based was much good. beginning before, is as more really the a The It’s of the the California, local market, hygienic to at Texas I – indicate look, is always activity. doing things. market, strong. the good, signs it’s and there think And life. end I that looks is is we said it hyper momentum

had we what sort of it’s expected. So,

that there hygienics going from sensor. be in is, to the through. have away was a was reality tailwind was be on and activity there to carry are we long conversion think, XXXX got think I regionally going markets and the hygienic this The And and going fine. us environmental a to dearth manual of to end big obviously, I fear

next into the year the way And I think, to think of year, and it this rest sure. so about that’s, for

speak of kind Okay, the had moving comp if a just pieces know underlying are terms Maybe costs in just talk some great. business of of maybe cut it’s And of then the Hadrian, improvement of margin just and – incrementals what of back. FX, Hadrian initiatives? there. Thanks. in a tough coming how margins And to the noise I about you lot then progressing the the integration some in temp out the the

is Yes, Jeff, Mark. this

the I Zurn underlying think, EBITDA approximately mentioned, in core quarter business, Todd as if at was the look you the XX% margin. core business

very cost-out So the business, from business. last the effectively year, well, core be performing headwinds to the equation managing in continue the some the of price/cost despite

job. everything from a think and a standpoint that do yes, we going is So I great to quarter team expected, the

up as some fronts we the time, the on near-term mentioned, drive we well at long-term as growth investment same in multiple growth While to strategy. business opportunities step the our

in are Todd back and he to I margins will turn a good core it cover Hadrian. So, really spot. will

Yes.

opportunity terms travel now. In up Hadrian. do excited look the with it’s integration little Hadrian, to really just of about a been to inability and difficult given long-term we the are Obviously, all the till bit stuff

– the to are into are up it relatively on to XXXX that starts ladder them march period suspect in we the two of a with in short time. going half I to So, and the second something margins Hadrian really the a that year going we and with accelerate of

are have in we So, it portfolio. to thrilled the

that Now we envision, include be commercial in use are to which is the that. starting ways offering would around solutions able it in to SKU we that and restroom

other about no really a things The for remember and is lot that, upgrades thing of months. like this is done XX schools and retrofit hospitals past the have to that in Hadrian

So would inquiry than higher the have just envisioned what months the the backlog, rate rate, substantially is probably ago. we six order

So, good to and where we the Hadrian on are portfolio. path I to want we have it, it think are thrilled get in we a right

Thanks Great. Okay. guys.

Bryan question is from next from Blair Oppenheimer. The you. Thank

line now open. Your is

little outlook. influencing to more strong very vertical Zurn’s hoping is guys, on are and revised the XXXX growth specifically, we seeing obviously, how momentum the could the in current and business quarter. morning Good was what I dig your core a education in you space

year. regionally a in specific And extra specific that’s the going the economic follow people don’t anticipated again, markets. local of verticals to activity many had the obviously, these think I tailwind course think last I Well, some when you be that at look funding, positive over of the

significant like And think you real I that incremental seeing whether it, opportunity. getting, around or drives growth, where high with additional this schools, Texas, to think that’s are Florida, things so population a about And that extra facilities be funding all going etcetera. places K-XX the Arizona, are when there other now is school, you healthcare states

quotation it’s things through, tracking are boards, We to money got and school where And levels that how going, opportunities. get is going etcetera. through you frankly, the funding spent allocated of then work just like to

So, us fully be six a probably for it’s probably positive anticipate didn’t tailwind to that months ago. going we

detail. That Helpful sense. makes

ideal momentum teens, been above high the good from Hadrian that You million you the but like Revenue that, annualized. integration, out for Hadrian? obviously touched it looks this of year on shook in the What haven’t conditions pandemic are for $XX growth quarter kind overall. expecting

I it’s, it’s – basically a mid you the think Bryan, yes, to number. look if high-teens at numbers,

a are business. X.X% to more so fiscal case a the come [indiscernible] the the level that feels look half, year-over-year synergy EBITDA a and on to improvement the up core with it around back is think that more relatively contribute year, half half back then more next given we on business a the margin if in earlier, down we of growing I doing basis in mission. versus core our at good first the that’s of retro So, projects as overall in progress, are making time, The XXXX, in basis, the the consistent meaningful few And It’s that. itself on that I you margin, in the will well to over quarters are next that the really to very momentum on starting in the retrofit like how seeing growth. little the coming fruition in some mentioned opening side, these margin

Can being outlook, backdrop, would level your your the momentum about and think don’t but indicators the drastic color how outlook quite preliminary higher press perhaps bit it. reading business. then least Got on this, too have would shift into a one the be and own hand there? the I of a at team much for bullish I assuming one, you offer thinking then puts given the takes decent we the your is certainly at some in release. more was market XXXX And

decent months to go characterize I Bryan, it, in is is to to Well, way six or guess so an ‘XX, appropriate it. way with I the think read

As I will in we hang get – upgrade things and closer accordingly. we to that our there, would outlook

world to everyone view a So ago, had I end a year going the we in did. that wasn’t ‘XX, and think

read upgraded we about feel gets year. into so think the speaking, it. decent, think to that And the I go good only as generally is pretty But probably I way we through

Thanks guys.

one Dobre Thank from Mig next open. now is you. from line The your Baird,

midnight Well, you last I fan be. myself, maybe as guys night to but delay guess would a Bucks I that hoping around that wasn’t call, the was

had a and strong of am. I I coffees, couple here So,

of us, mate, few a yes. makes That

a think and commercial do on asked maybe a wondering to and finer mean to have how questions you and are that versus I to entity? structure the and market what be commercial based entity, guess as are about standalone as on closer business? provide the the that? true as to segment or going gets are to we business, within we you what about a new Are am kind if I ZWS either planning is going would, sub-verticals, put to But as point you be already, here then makeup I been – about you standalone right? talking ZWS education am versus thinking be closer talking healthcare How some the industrial. even you a are institutional by of I of end going able about wondering,

again sort that’s think, just Well, is, that do business, drainage flow finally, of of in different would we other I and say I we categories. about we quarter, the which thing sensor cut the a think and all do, primarily previewed then safety water hygienic things. which across three about talked And terms is, systems, cuts which how it, last doing but a I on to planning eventual is the we that’s business sector on retrofit, are verticals. basis. how think view different we expect a out, about talk Each of to it through pure-play a business, little dynamics the a to water ZWS bit bit will of going essentially sectors, environmental, the forward. dynamic one of the we and we across people And different and is exposure getting get what are as the to think, little product is and with we category verticals. to all little will mini I go-forward outlined the on And essentially some a perform of talked control it we respect or how some talking business, going closer roadshow I how We bit has standalone our be

Okay.

that quarters of obviously, For are now, are of, all this of you how been sort that point, products margin, create you product all and are management. algorithm terms are with talk about about the for are new lot X say, from But talking that’s you here you been for they what’s several fair have done contribution water how on our thinking focused you product now new at these are the the growth product these new I introducing thinking the expectations ago And years of a you “Hey, value in unique. first, growth. basically in introductions, what terms Can to work wondering happens vitality right, and customers.” am versus, that? about, They organic saying, also, about differentiated,

more is, development years question, X the innovation to start by saying that. without far and last in XX I product the there would than prior new Well, probably

a – level to drive really three, And at it’s better the to product can’t fleet is than introducing probably of best highest profile a develop been think I specification margin to you have number we you important that understand financial that product can. or the that every average. Secondly,

new don’t user, drive end rewards engineer, – or And that an with work so having reap I the doesn’t on spade if specification. specification and done a to want that introduce architect you you product the

product that necessarily compounding this, going I specification to get basis doing for think you to make this. all think get if And road pure don’t important specification you’re design about walk look of So innovation, way product construction specified. get the the of moat you numbers, down goes So but we’re really right the to right? or want because It’s within work different want or just a bought, when pacing to it at the comes either equally the time you to driving to and vitality vitality a into is this you’re the if work new is site that sure product, upfront. it high-level

a there level understanding I think mean, as almost has But XX%, the So from on well obviously Core Mark on this understood stack look, your said, side business be XX%. that to grew and of margins, a basis. is I investors. XX%

something I right. doing we’re think

overall new sectors will obviously, growth. growth can you again, as drive even focus moat a the in core think so is of beyond three go-forward, And about able be the to that pounding products products, expect – more just creating organically. then to these those do driving greater specification competitive and we And we M&A some around and

a can Yes. that’s I question... No, If fair. ask

Thanks, Mig. Well, you. thank

If previously ask on better I question like here, you welcome. than anticipated. you what a can You’re bit recovery said, a the little PMC

some this that? up cycle? either of drive curious, maybe different maybe think you’re right, for what is are – cycles, in and As that’s synergies aerospace we there. understand the prior kind the on dynamics based transaction comparing going you’re looking line, at And do those I’m what to seeing But you way this to implications the business able that’s right? incremental leaving aside, our to or be all Post are down downturns, growth RBC it in business you prior

was would perspective, mining market is and an from market-driven. end back, Meaning, say oil looking back, This end far great. individual less think, more was I much it’s broad-based. Well, looking I gas great or

but own first like to to to opportunity more win markets and markets Regal more this, of as win fit end then stable and broadly on for I continue think amount long and playing look they And process-based these clearly period around the the diversify with these I continue a is into industries I think, more diversification of the aftermarket our content, end business significant level win partner and time. a the of forward in see and food think beverage we through. stable with

the it’s So at time. coming I perfect think together

together strokes excited just years. broad-based I get down and focused the our think really, or the and X more more diversification to working on and speaking, I are we’re done X whatever, we’ve think, think teams far over final last, I generally the of to well. the just But And done. end more far markets think, I stable what get really merger

questions. Great. Thanks taking for the

You bet.

Bank of line Thank the you. is America. The from of Obin from Andrew Please next ahead. question go

Obin. Shu Andrew on This Hi, for Emily good morning. is

Good morning.

I just to the current backlog then down that’s money? of how break wanted Zurn. last that the being there Good of work year? retrofit the vertical on new pushed was spent any much is Thanks. on And out existing dig work by for is what stimulus school to morning. deeper way Is

too. Emily, that Yes. exists, love we’d it, to if have

I think think of looking we a out local these have the basis, for we regional break opportunities think just to very but that hyper we’re in each don’t I you. at ability that

are now? to No strategy are navigate Asia? your supply through Thank types of my supply is do you you chain has allowed in challenges problem. What And right you you. suppliers chain. experiencing, How question the then your shortages follow-up that and going Okay. on on all particularly think

to we’ve then done, we because component establish last China, whether time. suppliers that run leveraged to very able suppliers be predict things in the SIOP helping on the of rely that’s get be the diversify is Well, be super supply, model. that to The our suppliers, an and establish want SIOP numerous in. And appropriate, costs, chosen outstanding over to shipping it years strong lanes. multiple general, from sources – business bring of heavily we We’ve and third-party think But a has us a a that I are that demand ensure to and we it’s to challenges shipping as design-procure-assemble-test individual leverage out do obviously our on process process market. we products think, I supplying job robust then for XX

And so thing helped the that’s most. been, I us that’s the think,

lead terrific times that’s be job and win of in to staying order business. availability done we have class, and demand best helping that may are us a teams in think of in what expected also ensure Our front

of to So levels have mean, day ability it’s the to and anybody allowing to keep but often than not. done like more what day, and we’ve high challenges lead to to else, through really win super us view is times continue navigate I multifaceted do. a service those we

Thank it on. Great. you. I will pass

Thank The is Joe you. next one Ritchie Goldman from Sachs. from

congrats guys the Good It Thanks. the night. partying. Bucks looks on like only wasn’t win and Mig one morning last

like feel that. We

that it put Let’s way.

and of following supply the look of guess, they line particularly of yesterday one of built really that in But of their ship Yes, on backlog segments heard have quick chain got headwind enough just they on We last a ones little labor products. I to because yes. out disinflation price this for bit and their year, they labor What quarter [indiscernible] just didn’t of they on kind Dover night. some a couple the inflation in of the just that the the you questioning half from me. maybe like really highlighted general. kind of second side. capably more And like in being

you any maybe curious just seeing what hear to I’m that make along those business. and guys your comments lines you’re So in

the with on of outlook our obviously, QX all that. view has we Well, best provided

then of. start line a ability We of impacting that, online And are of and our world obviously, it you pandemic in labor of we that parts the you are, to are that course, you off. the the get labor fashion, in comes with as couple to have you have interconnected never the up shut guess the capacity not market and certain the challenge that dynamic array top I And certain across it shortages starting then a just the in on of seeing straight there industries. industries spoke tariffs, when wide world back you last try view years, it’s it, that and same and on synchronous suppliers back of have a

in little that a And and expect and winter, about bit of inflation we we’re like we’re cut and in terms with time But view seeing margins by Mark our the seeing what of top that we’re now sort our transitory. the we so And it’s and about that see our that that talked all spoke abate. will that to of have everything best get how is I it. the seeing things of line

the that managing year, we half we’re to more would costs it. around the the see and in We of become the in would than fourth. point, the expect it, we shipping we it. We’ve little that some we quarter third agree freight trend Dover’s that. comment that’s with And back know built steeper see agree But the cost, Joe, for with a of

it. Got

helpful. like follow just Okay. one be M&A. And maybe just then on That’s would my around

in and pipeline us the you I’m thinking robust give is and is I how can continuing the you’re guess valuations where pipeline to job nice working down clearly, working how down, sure, any your today, maybe fit on once about color leverage just So numbers the completed. transaction today?

a sheet decision pipeline it we and to acquire made were leave Look, balance that. – to the we do better that made this, with be going to stand-alone and enough when do to to robust the with be have we ourselves able knowing to we begin

I we we’re been core number time. think see going And a opportunities. think M&A long, we’ve time. but of around terms so feel in I over really and obviously, for time in acquirer of extensions predict and about long we And or opportunities good some our the maybe don’t I disciplined a valuation, the business timing, line to a think

that. do I to continue think going to we’re

value going cultivate a to a been change. ROIC and short that Our and in discipline sense period make of high a philosophy that’s the that has doing things of lot that creates not relatively time,

things so for calls, We gripe to these and value create these we’re of how just and continue about and expensive do. going things to shareholders, some get get people what that’s are. to to done listen You paid

quarter. That’s hear. Thanks guys. great Nice to

Joe. Thanks,

There you. please Thank are this no at continue. further time. questions Presenters,

us our quarter when thanks, a today. could definitely Have interest late appreciate results announce September the to Rexnord great Well, our I October. and forward Great. your we on call update next we everyone providing on Thanks. that look join day, everyone.

today’s call. conference concludes This you. for participating. Thank you Thank

You may disconnect. now