Watts Water Technologies (WTS) FY2018 results: revenue $1.6 billion, up 7.4% on the year
Watts Water Technologies Inc. (WTS) reported revenue of $1.6 billion for fiscal 2018, the year ended 31 December 2018, up 7.4% on the year before. Net income was $128 million, up 75.1%, and diluted earnings per share $3.73. The figures are the company's own, from the 10-K it filed with the SEC on 22 February 2019.
Revenue
$1.6 billion
+7.4% on the year
FY2011FY2018
Operating margin
12.0%
11.1% a year earlier
FY2011FY2018
Net income
$128 million
+75.1% on the year
FY2011FY2018
Diluted EPS
$3.73
+75.9% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
1,565
1,457
1,398
+7.4%
Cost of revenue
908
854
833
+6.3%
Gross profit
656
602
566
+9.0%
Gross margin
42.0%
41.4%
40.4%
Research and development
34.5
29.0
26.5
+19.0%
Selling, general and administrative
465
432
424
+7.5%
Operating income
188
162
145
+16.1%
Operating margin
12.0%
11.1%
10.4%
Interest expense
16.3
19.1
22.6
-14.7%
Pre-tax income
175
143
128
+22.0%
Income tax
46.6
70.0
43.6
-33.4%
Effective tax rate
26.7%
48.9%
34.1%
Net income
128
73.1
84.2
+75.1%
Net margin
8.2%
5.0%
6.0%
Diluted EPS
$3.73
$2.12
$2.44
+75.9%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
169
156
138
+8.7%
Capital expenditure
35.9
29.4
36.0
+22.1%
Free cash flow
134
126
102
+5.5%
Free cash flow margin
8.5%
8.7%
7.3%
Cash from investing
-35.9
-27.3
-114
Cash from financing
-203
-205
27.7
Depreciation and amortisation
48.5
52.2
51.2
-7.1%
Share-based compensation
13.8
13.9
13.4
-0.7%
Buybacks
26.0
18.2
26.8
+42.9%
Dividends paid
28.3
25.9
24.5
+9.3%
Dividend per share
$0.82
$0.75
$0.71
+9.3%
Diluted shares, weighted
34m
34m
34m
-0.3%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
891
829
736
+7.5%
Debt
355
500
654
-28.9%
Other liabilities
407
408
373
-0.1%
Total liabilities and equity
1,654
1,736
1,763
-4.8%
Fixed assets
202
198
190
+1.7%
Goodwill
545
550
533
-1.0%
Intangible assets
165
185
202
-10.8%
Cash and equivalents
204
280
338
-27.2%
Receivables
206
216
198
-4.9%
Inventory
287
259
239
+10.7%
Other assets
45.4
46.9
62.5
-3.2%
Total assets
1,654
1,736
1,763
-4.8%
10-K for the year ended 31 December 2018, filed 22 February 2019: the filing.