The Gorman-Rupp Company (NYSE: GRC) has released its financial results for the fourth quarter and full year ending December 31, 2023. Here are the key highlights for the fourth quarter of 2023:
- Net sales reached $160.6 million, reflecting a 10.0% increase compared to the fourth quarter of 2022.
- Fourth-quarter net income stood at $9.0 million, or $0.34 per share, a significant improvement from the $2.4 million, or $0.09 per share, reported in the same period of 2022.
- Adjusted earnings per share1 for the fourth quarter of 2023 and 2022 were $0.34 and $0.11, respectively.
- Adjusted EBITDA1 for the fourth quarter of 2023 was $29.1 million, a 2.1% increase from the same period in 2022.
- Gross profit for the fourth quarter of 2023 was $50.9 million, with a gross margin of 31.7%, compared to $36.6 million and a gross margin of 25.1% for the same period in 2022.
- Selling, general, and administrative (“SG&A”) expenses increased to $26.0 million, representing 16.2% of net sales, compared to $21.0 million and 14.4% of net sales in the fourth quarter of 2022.
- Operating income for the fourth quarter of 2023 was $21.8 million, resulting in an operating margin of 13.6%, compared to operating income of $12.5 million and an operating margin of 8.6% in the same period of 2022.
- Interest expense increased to $10.1 million for the fourth quarter of 2023, compared to $9.4 million for the same period in 2022, primarily due to increased interest rates.
For the full year 2023, the company reported the following highlights:
- Net sales amounted to $659.5 million, reflecting a 26.6% increase compared to 2022, with a 15.8% increase excluding Fill-Rite.
- Net income for the full year was $35.0 million, or $1.34 per share, compared to net income of $11.2 million, or $0.43 per share, in 2022.
- Adjusted earnings per share1 for 2023 and 2022 were $1.37 and $0.94, respectively.
- Adjusted EBITDA1 for 2023 was $121.7 million, a 37.1% increase from $88.7 million in 2022.
- Total debt, net of cash, decreased by $58.2 million during 2023.
- The company’s backlog of orders stood at $218.1 million at December 31, 2023, compared to $267.4 million at December 31, 2022.
- Net cash provided by operating activities in 2023 was $98.2 million, a significant improvement from $13.7 million in 2022.
Scott A. King, President and CEO, expressed satisfaction with the company’s achievements in 2023, citing a second consecutive year of double-digit organic sales growth and a record Adjusted EBITDA1 of $121.7 million. King also highlighted investments for growth, including the relocation and expansion of Fill-Rite’s manufacturing facility in Lenexa, Kansas, and the company’s ability to increase dividends paid to shareholders for the 51st consecutive year. Looking forward, King expects backlog levels to return to normal during 2024, emphasizing the company’s strength in diverse markets and its positioning to benefit from infrastructure spending and increased demand for flood control and stormwater management
