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.
|Operating income as a percent of sales||%||9.8||9.6||12.8|
|Debt net of cash, equivalents and investments||$||139.5||118.6||55.0|
|Net debt as a percent of equity||%||25.0||19.9||9.2|
|Net cash flow from operating activities||$||99.6||47.3||98.3|
|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|
Earnings per Share
Five Year Financial History
|2015||2014 (b)||2013||2012 (c)||2011 (d)|
|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||$||35,476||37,210||31,356||28,335||25,295|
|Property, plant, and equipment, net||$||190,039||209,786||208,596||171,975||146,409|
|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|
|Market price range|
|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.