Watts Water Technologies (WTS) FY2021 results: revenue $1.8 billion, up 19.9% on the year

Watts Water Technologies Inc. (WTS) reported revenue of $1.8 billion for fiscal 2021, the year ended 31 December 2021, up 19.9% on the year before. Net income was $166 million, up 45.0%, and diluted earnings per share $4.88. The figures are the company's own, from the 10-K it filed with the SEC on 22 February 2022.

Revenue

$1.8 billion

+19.9% on the year

FY2014FY2021

Operating margin

13.2%

12.0% a year earlier

FY2014FY2021

Net income

$166 million

+45.0% on the year

FY2014FY2021

Diluted EPS

$4.88

+45.2% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	1,809	1,509	1,600	+19.9%
Cost of revenue	1,042	883	923	+18.0%
Gross profit	767	625	678	+22.7%
Gross margin	42.4%	41.5%	42.3%
Research and development	45.6	42.2	39.6	+8.1%
Selling, general and administrative	508	434	476	+17.0%
Operating income	240	181	197	+32.3%
Operating margin	13.2%	12.0%	12.3%
Interest expense	6.3	13.3	14.1	-52.6%
Pre-tax income	234	167	184	+40.2%
Income tax	68.4	52.7	52.4	+29.8%
Effective tax rate	29.2%	31.6%	28.5%
Net income	166	114	132	+45.0%
Net margin	9.2%	7.6%	8.2%
Diluted EPS	$4.88	$3.36	$3.85	+45.2%

$ million except per share.

Free 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	FY2021	FY2020	FY2019	On the year
Operating cash flow	181	229	194	-21.0%
Capital expenditure	26.7	43.8	29.2	-39.0%
Free cash flow	154	185	165	-16.7%
Free cash flow margin	8.5%	12.3%	10.3%
Cash from investing	-30.7	-54.8	-71.8
Cash from financing	-119	-182	-106
Depreciation and amortisation	45.1	46.5	46.6	-3.0%
Share-based compensation	22.9	12.7	17.8	+80.3%
Buybacks	16.0	28.9	19.5	-44.6%
Dividends paid	34.3	31.4	31.4	+9.2%
Dividend per share	$1.01	$0.92	$0.90	+9.8%
Diluted shares, weighted	34m	34m	34m	-0.3%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	1,173	1,070	978	+9.7%
Debt	142	200	310	-29.0%
Operating lease liabilities	42.0	47.0	31.9	-10.6%
Finance lease liabilities	1.9	2.9	2.2	-34.5%
Other liabilities	497	418	401	+18.7%
Total liabilities and equity	1,856	1,738	1,723	+6.8%
Fixed assets	201	212	200	-5.5%
Goodwill	601	602	581	-0.3%
Intangible assets	129	142	151	-9.3%
Cash and equivalents	242	219	220	+10.6%
Receivables	221	198	220	+11.8%
Inventory	371	264	270	+40.6%
Other assets	92.0	102	81.0	-9.4%
Total assets	1,856	1,738	1,723	+6.8%

10-K for the year ended 31 December 2021, filed 22 February 2022: the filing.