UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 5, 2017 FRANKLIN ELECTRIC CO., INC. (Exact name of registrant as specified in its charter) Indiana (State of incorporation) (Commission File Number) (IRS employer identification no.) 9255 Coverdale Road Fort Wayne, Indiana (Address of principal executive offices) (Zip code) (260) (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 ( of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( b-2 of this chapter). Emerging growth company o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

2 Item Regulation FD Disclosure Gregg Sengstack, Chairman and Chief Executive Officer, of Franklin Electric Co. Inc. (the "Company") will present at the Annual Shareholders' Meeting in Fort Wayne, Indiana on May 5, A copy of the presentation slides are furnished herewith as Exhibit 99.1 and are incorporated herein by reference. The presentation slides will be available on the Company's website ( in the Investor Relations - Presentations section of the website for thirty days after the presentation. This Current Report on Form 8-K and the presentation slides attached hereto are being furnished pursuant to Item 7.01 of Form 8-K. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended. Item Financial Statements and Exhibits (d) Exhibits: Exhibit Number Description 99.1 Presentation slides of Franklin Electric Co. Inc.'s Annual Shareholders' Meeting on May 5, 2017

3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FRANKLIN ELECTRIC CO., INC. (Registrant) Date: May 5, 2017 By /s/ John J. Haines John J. Haines Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

4 EXHIBIT INDEX Exhibit Number Description 99.1 Presentation slides of Franklin Electric Co. Inc.'s Annual Shareholders' Meeting on May 5, 2017

5 Shareholders Presentation May 2017

6 2 SAFE HARBOR STATEMENT: Safe Harbor Statement under the Private Securities Litigation Reform Act of 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.

7 Earnings Per Share $1.73 $1.68 $1.41 $1.50 $1.65 $0.00 $0.50 $1.00 $1.50 $ REASONS FOR DECLINE: Strong $ Decline in oil price Distribution reset Weather 3 GAAP fully diluted

8 First Quarter 2017 Results Amounts in millions except share data 1Q Q 2016 % +(-) Prior Year Sales $220.3 $ % Operating Income $18.5 $21.1 (12%) EPS $0.33 $ % 4

9 Return on Invested Capital (ROIC) 21.5% 19.9% 14.5% 12.6% 15.7% 0% 25% ROIC = Operating Income Divided by Average Year-end Net Debt Plus Equity

10 Cash Flow $82.9 $82.0 $69.8 $72.9 $78.7 $33.2 $30.9 $13.4 $73.6 $82.3 $0 $25 $50 $75 $ Net Income Free Cash Flow 6 Free Cash Flow = Operating Cash Flow minus Net Capital Expenditures

11 23 Consecutive Annual Dividend Payment Increases 7 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $

12 NEW DISTRIBUTION SEGMENT FUEL IN G W A TE R Acquisitions 2004

13 Leverage (Net Debt/EBITDA) Q2 Forecast EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization Borrowing Limit = 3.5 Additional Borrowing Capacity $300 Million+ Includes Headwater Acquisitions

14 Strategic Focus 10 Residential, Agricultural, Commercial Water Systems $6.0 B Global Market Potential(1) Complete Fueling Systems $1.2 B Global Market Potential(1) (1) Current Franklin management estimates Strong Brand Franchise #1 or #2 in Addressable Markets Growing Global Footprint Fragmented Customer Base Fragmented Supply Base Mission Critical Products and Systems Applications with High Cost of Downtime Contractors Value Technical Support Deep Understanding of Applications

15 11 STRATEGIC FOCUS: To grow as a global provider of water and fuel systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design.

16 Geographic Expansion 12

17 13 Global Footprint Locations with 50+ employees New sites, Last 5 years

18 14 US/CANADA Sales $495 LATIN AMERICA Sales $138 EMENA Sales $150 INDIA Sales $22 ASIA/PACIFIC Sales $112 SOUTHERN AFRICA Sales $33 Geographic Expansion 2016 Sales in millions

19 Sales in Developing Regions $92 $149 $218 $202 $242 $288 $316 $336 $372 $363 $366 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $ ($ in milli o n s) 15 Actual

20 Sales in Developing Regions $92 $149 $226 $218 $246 $286 $335 $356 $413 $459 $481 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $ ($ in milli o n s) 16 Constant Currency

21 Product Line Extensions 17

22 18

23 Water System Design 19 ELECTRONICS DEVELOPMENT PUMPS DEVELOPMENT MOTORS DEVELOPMENT

24 Drives & Controls 20 Residential Applications Municipal/Agricultural Applications Benefits to user: Constant pressure Better system protection Benefits to user: Better system protection Greater efficiency Lower total cost of ownership $200 $100 $500 $2,200 $1,600 $4,200

25 Drives & Controls 21 Residential Applications Municipal/Agricultural Applications Benefits to user: Constant pressure Better system protection Benefits to user: Better system protection Greater efficiency Lower total cost of ownership $200 $100 $500 $2,200 $1,600 $4,200 Leverage our application knowledge and expertise Focus on system solutions increases our revenue per installation

26 22 Fueling System Design FUEL MANAGEMENT SYSTEMS DISPENSING SYSTEMS PIPE & CONTAINMENT SUBMERSIBLE PUMPING SYSTEMS SERVICE STATION HARDWARE

27 (a) Sales growth excluding the impact of acquisitions for the first twelve months of ownership and the impact of Foreign Exchange. 4.9% 6.8% 7.8% -7.2% 5.1% -1.4% 7.1% 5.9% 11.7% 2.1% 5.2% 8.7% 5.4% 6.6% 8.6% -5.2% 5.1% 0.9% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Water Fueling Consolidated Annual Organic Growth(a) Summary 2012 to 1Q Goal is 5% to 7% Q 2017

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29 Why Headwater? Headwater is a direct result of a shared vision to safeguard the long-term success of groundwater distribution channels. Functioning as a holding company and investment vehicle, The Headwater Companies will support the continued growth and success of the entire groundwater industry. 25

30 2M Company, Inc. Drillers Service, Inc. 2MDSI/Headwater Wholesale Western Hydro Extend our position in groundwater Move closer to contractor Opportunities to move into adjacencies: Filtration Treatment Irrigation Commercial 26

31 Shareholders Presentation May 2017

32 2016 Efforts: 5 installations spanning 5 different countries Impacting nearly 18,000 people Leveraged our solar pumping technology Communities are already experiencing increased school enrollment Also offered civil work, post-installation service, and assistance with feeding programs 28

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