NYSE$GRC

The Gorman-Rupp Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Gorman-Rupp's first quarter performance was reported, marked by significant sales growth and strategic acquisition.

Gorman-Rupp reported a strong first quarter in 2023, with net sales increasing by 57.1% to $160.5 million, driven by organic growth and the acquisition of Fill-Rite. Net income was $6.5 million, or $0.25 per share, and adjusted EBITDA increased significantly. The company's backlog reached a record level, and incoming orders also saw substantial growth.

  • Net sales increased by 57.1% to $160.5 million, including a 17.9% increase excluding sales from Fill-Rite.
  • Net income was $6.5 million, or $0.25 per share, compared to $7.5 million, or $0.29 per share, for the same period last year.
  • Adjusted EBITDA increased by 98.7% to $28.4 million, driven by organic sales growth, improved gross margin, and the acquisition of Fill-Rite.
  • Incoming orders increased by 49.1% compared to the same period last year, or 12.3% excluding Fill-Rite.

Headline financials

Total Revenue

$160M

Previous: $102M+57.1%
EPS (adj)

$0.27

Previous: $0.29-6.9%
Incoming Orders

$167M

Previous: $112M+49.1%
Free Cash Flow

$6.52M

Previous: $7.54M-13.6%
Net Income

$6.52M

Previous: $7.54M-13.6%
Operating Income

$19.1M

Previous: $9.46M+101.9%
Gross Profit

$45.5M

Previous: $25.5M+78.5%
Cash & Equivalents

$12.2M

Previous: $123M-90.0%
Total Assets

$885M

Previous: $431M+105.2%
Stock-Based Comp

$465K

Previous: $682K-31.8%

Revenue & EPS history

Gorman-Rupp · Revenue · Quarterly

$160M

Q1 2023+57.1%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Gorman-Rupp · $4.1M total across 7 segments · Q2 2021

  • Petroleum
    $2.1M
  • OEM
    $2M
  • Construction
    $1.6M
  • Fire Protection
    $900K
  • Agriculture
    $500K
  • Industrial
    $300K
  • Municipal
    -$3.3M

Forward guidance

The company anticipates a reduction in inventory levels during the second half of the year and is focused on delivering long-term sustained growth and improving margins.

Tailwinds

  • Continued strong organic growth with a sales increase of nearly 18% during the quarter
  • Improved gross margin due to sales increase
  • Incoming orders continued at a good pace
  • Backlog remains at record levels
  • Focused on delivering long term sustained growth and continuing to improve margins

Headwinds

  • Estimates of future earnings and cash flows
  • General economic conditions and supply chain conditions and any related impact on costs and availability of materials
  • Integration of the Fill-Rite business in a timely and cost effective manner
  • Retention of supplier and customer relationships and key employees
  • Ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated and the ability to service and repay indebtedness incurred in connection with the transaction

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.1%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+13.5%

Q2 2023

Best reaction

-14.3%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.9%-0.8%-1.5%
Q4 2025+10.3%+11.3%+2.4%
Q3 2025-5.5%-9.1%-8.2%
Q2 2025-2.7%-3.5%-0.9%
Q1 2025+2.4%+2.2%+1.7%
Q4 2024-2.3%-0.4%+1.3%
Q3 2024-1.5%+2.0%+11.8%
Q2 2024+0.5%+1.7%-3.2%
Q1 2024-8.4%-9.0%-8.7%
Q4 2023+2.2%+4.2%+10.3%
Q3 2023-1.9%-1.0%+5.6%
Q2 2023+13.5%+15.2%+9.4%
Q1 2023+4.7%+6.9%+6.1%
Q4 2022-5.3%-6.9%-7.2%
Q3 2022+1.3%-0.4%+3.4%
Q2 2022-2.3%-5.7%-16.4%
Q1 2022+0.4%-4.2%-10.7%
Q4 2021-4.9%-3.2%-2.1%
Q3 2021+4.5%+9.5%+5.9%
Q2 2021+2.0%+1.0%+2.5%
Q1 2021+0.9%+0.5%+2.0%
Q4 2020+4.8%+1.4%+8.0%
Q3 2020-0.5%-6.1%+3.0%
Q2 2020-0.5%-2.7%+0.4%
Q1 2020+2.1%+6.0%+8.7%
Q4 2019-7.6%-4.9%-12.0%
Q3 2019+2.8%+3.2%+0.6%
Q2 2019+2.6%+4.7%-8.1%
Q1 2019-8.3%-7.8%-14.6%
Q4 2018-2.5%-1.1%-1.5%
Q3 2018+10.0%+12.8%+6.9%
Q2 2018-1.0%-0.0%+0.9%
Q1 2018+4.6%+4.4%+12.1%
Q4 2017+1.3%+0.8%+12.7%
Q3 2017-4.4%-4.3%-0.9%
Q2 2017+13.4%+9.8%+4.0%
Q1 2017-4.8%-8.0%-18.5%
Q4 2016-2.0%-8.0%-1.1%
Q3 2016+2.3%-3.1%+32.8%
Q2 2016+5.6%+5.5%+6.5%
Q1 2016-5.5%
Q4 2015-0.1%
Q3 2015+3.9%
Q2 2015-9.8%
Q1 2015-5.4%
Q4 2014-6.6%
Q3 2014-4.8%
Q2 2014-14.3%
Q1 2014+0.2%
Q4 2013-0.9%
Q3 2013+1.9%
Q2 2013+0.4%
Q1 2013-1.5%
Q4 2012-1.7%
Q3 2012+1.7%
Q2 2012-6.1%
Q1 2012-3.6%
Q4 2011-7.3%
Q3 2011-7.9%
Q2 2011-4.5%
Q1 2011-4.7%
Q4 2010-5.2%
Q3 2010+4.8%
Q2 2010-1.6%
Q1 2010+3.0%

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