Annual Report

  • 2015 Sales Revenue & Income

    We continued to expand our influence in 2015 by focusing on our long-term strategy of growing as a global provider of water and fueling systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design.

  • Continued Organic Growth

    We continued to grow organically, especially from our growing platform in developing regions, where about 40 percent of Franklin sales are achieved. Over five billion people live in developing countries whose economies are expected to grow much faster than the more mature economies of North America, Europe and Japan.

  • Product Line Extensions

    We launched a record number of new products that integrate the best of Franklin’s strengths and capabilities in electrical, mechanical, electronic, and hydraulic engineering, including products to boost water pressure, systems to transfer gray water, and products to protect the environment; all with an eye toward greater system efficiency and reliability.

  • Exploring Adjacent Markets

    Current adjacencies that we are working on include: coal bed methane well water pumping solutions, high efficiency water pumping systems, fuel vapor control systems for developing markets, remote monitoring of high-voltage switchgear, and integrated drives for air moving systems.


Financial Highlights

(in millions, except per share amounts and ratios)
2015 2014 2013
Operations:
Net sales $ 924.9 1,047.8 965.5
Operating income $ 90.4 100.1 123.8
Operating income as a percent of sales % 9.8 9.6 12.8
Balance Sheet:
Debt net of cash, equivalents and investments $ 139.5 118.6 55.0
Shareowners' equity $ 557.7 596.8 595.7
Net debt as a percent of equity % 25.0 19.9 9.2
Cash Flow:
Net cash flow from operating activities $ 99.6 47.3 98.3
Capital expenditures $ 26.2 35.5 67.6
Acquisitions $ 3.9 35.6 3.5
Investment Data:
Return on average invested capital(1) % 13.5 14.5 19.7
Weighted average common shares outstanding 47.6 48.2 48.1
Income per Share:
Per weighted average common share, assuming dilution $ 1.50 1.41 1.68
Dividends per common share $ 0.3825 0.3475 0.3050

Net Sales

($ millions)

Net Income

($ millions)

Earnings per Share

($)

Five Year Financial History

(In thousands, except per share amounts and ratios)
    2015 2014 (b) 2013 2012 (c) 2011 (d)
Operations:            
Net sales $ 924,923 1,047,777 965,462 891,345 821,077
Gross profit $ 297,608 344,410 331,514 301,664 272,305
Interest expense $ 10,039 10,735 10,597 10,208 10,502
Income tax expense $ 12,625 18,851 28,851 32,250 23,412
Net income attributable to Franklin Electric Co., Inc. $ 72,945 69,806 81,958 82,864 63,099
Depreciation and amortization $ 35,476 37,210 31,356 28,335 25,295
Capital expenditures $ 25,933 42,396 67,206 42,062 21,144
Balance sheet:            
Working capital(a)(e) $ 293,463 268,434 333,880 283,278 276,386
Property, plant, and equipment, net $ 190,039 209,786 208,596 171,975 146,409
Total assets $ 996,408 1,075,887 1,051,873 976,379 829,530
Long-term debt $ 188,103 143,695 174,166 150,729 150,000
Shareowners’ equity $ 557,700 596,840 595,707 514,406 448,135
Other data:            
Net income attributable to Franklin Electric Co., Inc., to sales % 7.9 6.7 8.5 9.3 7.7
Net income attributable to Franklin Electric Co., Inc., to average total assets % 7.0 6.6 8.1 9.2 7.8
Current ratio (a)(f)   3.0 2.3 3.4 2.9 3.2
Number of common shares outstanding   46,219 47,594 47,715 47,132 46,677
Per share:            
Market price range            
High $ 39.56 45.42 45.62 30.98 26.09
Low $ 26.75 33.93 29.95 22.77 16.41
Net income attributable to Franklin Electric Co., Inc., per weighted average common share $ 1.52 1.43 1.70 1.76 1.36
Net income attributable to Franklin Electric Co., Inc., per weighted average common share, assuming dilution $ 1.50 1.41 1.68 1.73 1.33
Book value (g) $ 11.73 12.38 12.38 10.78 9.45
Dividends per common share $ 0.3825 0.3475 0.3050 0.2850 0.2675
  • (1) Return on average invested capital = (earnings before interest, taxes divided by average year-end net debt plus equity).
  • (a) Balances as of year-end 2014, 2013, 2012, and 2011 were not retrospectively adjusted for the adoption of ASU 2015-17, which related to the presentation of deferred taxes.
  • (b) Includes the results of operations of the Company's 100% wholly owned subsidiary, Bombas Leao S.A., since its acquisition in the second quarter of 2014, and 90% of the Company's owned subsidiary, Impo Motor Pompa Sanayi ve Ticaret A.S., since the Company's acquisition of an additional 10% in the second quarter of 2014.
  • (c) Includes the results of operations of the Company's 70.5% owned subsidiary, Pioneer Pump Holdings, Inc., since the Company's acquisition of an additional 39.5% in the first quarter of 2012, 100% of the wholly owned subsidiary, Cerus Industrial Corporation, since its acquisition in the third quarter of 2012, and 100% of the wholly owned subsidiary, Flexing, Incorporated, since the Company's acquisition in the fourth quarter of 2012.
  • (d) Includes the results of operations of the Company's 80% owned subsidiary, Impo Motor Pompa Sanayi ve Ticaret A.S., since its acquisition in the second quarter of 2011, and 100% of the wholly owned subsidiary, Vertical S.p.A., since the Company's acquisition of the remaining 25% in the fourth quarter of 2011.
  • (e) Working capital = Current assets minus current liabilities.
  • (f) Current ratio = Current assets divided by current liabilities.
  • (g) Book value = Shareowners’ equity divided by weighted average common shares, assuming full dilution.
  • “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending January 2, 2016, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

Past Annual Reports