Good morning, and welcome to the Zurn Water Solutions Corporation fourth quarter 2021 earnings release conference call with Todd Adams, Chairman and Chief Executive Officer, Mark Peterson, Senior Vice President and Chief Financial Officer, and Dave Pauli, Vice President of Investor Relations for Zurn Water Solutions. This call is being recorded and will be available on replay for a period of two weeks. The phone numbers for the replay can be found in the earnings release the company filed in an 8-K with the SEC yesterday, February first. At this time, for opening remarks and introduction, I'll turn the call over to Dave Pauli. Good morning, everyone. I'd like to remind you that this call contains certain forward-looking statements that are subject to the safe harbor language contained in the press release that we issued yesterday afternoon, as well as in our filings with the SEC. In addition, some comparisons will refer to non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them, and why we believe they're helpful to investors, and contain reconciliations to the corresponding GAAP information. Consistent with prior quarters, we will speak to certain non-GAAP metrics as we feel they provide a better understanding of our operating results. These measures are not a substitute for GAAP, and we encourage you to review the GAAP information in our earnings release and in our SEC filings. With that, I'll turn the call over to Todd Adams, Chairman and CEO of Zurn Water Solutions. Thanks, Dave, and good morning. Hopefully, everyone had a chance to read through the release last night. As I thought Dave was going to mention, this is the quarter where you'll see the former Rexnord PMC results presented as discontinued operations. You know, there's a fair amount of moving parts when you go through one of these complex transactions, but from our view, there were no surprises as to how everything shook out as we went through all the transactional accounting, other than a lot of work for Mark and Dave and our mean and lean team, but no surprises. We're really pleased with our fourth quarter results and frankly, the whole year of 2021. We drove terrific results and executed at a very high level amidst both the complexities of the RMT transaction and separation work, as well as the supply chain and logistics dynamic that when you step back from it, I believe we managed exceptionally well. As far as the quarter sales, we're up 23% year-over-year, 16% organically, and this is against the fourth quarter last year, where we grew 15% and 10% organically. As we communicated last quarter, we successfully worked through some of the temporary logistics constraints we saw in the fall and continue to see a gradually improving market around transportation with respect to availability and costs, and expect that we taper back towards more normal levels as we do go throughout 2022. Our segment margins were 24% in the quarter, very much in line to slightly ahead of our expectations. Free cash flow of $26 million drove our pro forma leverage to 2.1x at the end of December. You can see for the year, record results across the board, and we start 2022 with a lot of positive organic momentum, along with a market outlook that is clearly better than we've seen in the past several years. Our team is energized about the future for Zurn Water Solutions and anticipate 2023 will be another record year for us. I'll quickly move to slide four. I've mentioned in the past that one of the big decisions around the timing of the RFMP was ensuring the trajectory for a standalone business was really strong. With the benefit of another year of strong execution and visibility into the next year's level of activity that's happening in our markets, along with organic investments reading through and even more in the early stages, we really see incredible one way for growth over the next three to five years. Every year, we do a detailed three-year strategic plan, something we've been doing for the last 15+ years. It's the absolute foundation of the Rexnord Business System. It creates a roadmap for our strategic deployment of breakthrough growth or margin opportunities, prioritizes resources towards our biggest opportunities, and takes big three-year objectives and makes them come to life every day with tangible objectives and accountability. It creates the framework and alignment throughout the organization that has matured, continues to improve, and most importantly, measures performance and progress. At any point in time, everyone knows the priorities, why they're important, and how we're doing. It's relentless in providing clarity on why what we're doing today, next week, and next month helps us three years from now. This year's plan is something we've called The Next Wave because it really does build off of prior year's successes and course corrections. It capitalizes and compounds on the unique competitive advantages we've created. We also benefit from the opportunity to focus on Zurn and only Zurn, and we see a path of substantial increase in the size of Zurn organically with really the same financial characteristics that we have today. While optimistically seeing M&A opportunities convert over the planning horizon, allowing us to double the business over the coming years. To the right, you'll see the strategic framework we've consistently used to evaluate our performance against the strategic plan. Starting with getting into the right markets where we can build real, sustainable competitive advantage, and then leverage the Zurn Business System to develop plans to drive above-market growth, strong incremental margins, and superior free cash flow to continue to invest in our business and create capacity for M&A while returning cash to shareholders. In order to do all of that, our teams have to be incredibly engaged and delight our customers. We're not gonna get ahead of ourselves, but it's clear to me that as we execute The Next Wave, Zurn Water Solutions can be a much larger company with a consistent financial profile while continuing to build out the business, very much focused on the types of things we do today. I'll move to page five. One of the things that we've made tremendous progress over the last three years on is ESG leadership. I truly believe it's a critical pillar in creating superior shareholder value moving forward. The progress over that time has included things like establishing board-level committee oversight to oversee our ESG efforts, as well as an internal steering committee, streamline reporting by adopting the SASB framework and enhancing our CDP disclosures, implemented and refined policies that reflect our commitments in the areas including diversity and inclusion, human rights, environmental stewardship and sustainability, product safety, and supplier diversity. We have integrated ESG into our strategic planning process, which includes evaluating how climate-related issues impact our business strategy and financial planning. We were recently named one of America's Most Responsible Companies by Newsweek for the second year in a row. In December, we joined the UN Global Compact to reaffirm our commitment to universal principles on human rights, labor, anti-corruption, and the environment. Our entire business aligns incredibly well with the UN goal to ensure availability and sustainable management of water and sanitation for all. Just this week, we're launching an employee-led social impact fund to provide financing, support, and resources for associate ideas that advance our ESG efforts. We know that the best and most innovative ideas come from our teams, and we're ready to fund those ideas. In mid-February, we'll be issuing the inaugural Zurn Sustainability Report. In there, you'll see that we have established ESG-related targets, including commitments to reduce greenhouse gas emissions and energy use, and goals for diversity among leadership and suppliers. We have provided 1% of company time for employee volunteerism and renewed our philanthropic commitment, including setting a $5 million giving target by 2024. We will remain aligned with industry-specific Sustainability Accounting Standards Board metrics from the Value Reporting Foundation, and we'll expand our ESG reporting to measure and disclose our performance on issues that affect people and the planet. You will see an expanded ESG content index, adding multiple new metrics from GRI and from other SASB sectors that apply to our business operations. We're also adding a table in the report that cross-references ESG topics covered within our report and our other published documents with the corresponding SASB Sustainable Industry Classification System code and GRI. Operating as a pure-play water management company presents new opportunities to embed ESG principles and practices into every aspect of our business. We're committed to continually evaluating our approach to ensure that we're committed to the targets that matter, discussing our progress transparently, and always improving. Look for that in just a couple of weeks. With that, I'll turn it over to Mark to walk through some of the additional details on our performance and provide some color on our Q1 outlook. Thanks, Todd. Please turn to slide six. On a year-over-year basis, our fourth quarter sales increased 23% to $232 million. The combination of the December 2020 Hadrian acquisition and the December 2021 Wade Drains acquisition drove 7% of the year-over-year growth, with the remaining 16% of growth coming from the core business as core sales grew year over year across nearly all of our product categories. With respect to profitability, our adjusted EBITDA, excluding corporate costs, increased 21% from the prior year fourth quarter to $56 million, and our adjusted EBITDA margin was in line with our expectations at 24%. In our core business and adjusting for the impact of the temporary cost reduction actions we had in place in the fourth quarter of 2020 due to the COVID-19 pandemic actions we took, our adjusted EBITDA margin expanded by approximately 20 basis points year-over-year. With respect to corporate costs, they were in line with our expectations for the quarter, and as we've communicated over the past few quarters, with the close of the RMT transaction and our transition to a standalone pure-play water business, we will be reducing our annual corporate expenses to approximately $20 million in terms of adjusted EBITDA, and we remain on track to achieve that annualized run rate in our second quarter of 2022. Please turn to slide number seven, and I'll touch on some balance sheet and leverage highlights. I'll start with a quick reminder for everyone that in conjunction with the close of the RMT transaction on October 4, we paid off all the debt that was on our balance sheet at September 30th and put in place our new capital structure that includes a $550 million term loan B with a $200 million revolver that is currently undrawn. Our new seven-year erm loan has an interest rate of 2.25% with a 50 basis point LIBOR floor and pushes any debt maturities out to 2028. With respect to our net debt leverage, we anticipate closing out the year at a 2x -2.1x when you pro forma our adjusted EBITDA to the $20 million of annual corporate expenses on a go-forward basis. As you can see, we ended up below in that range on December 31st. Please turn to slide eight. I'll make a few comments on our outlook for the first quarter of 2022 as well as the full year. For the first quarter of 2022, we are projecting total sales to increase year-over-year by a high teens%. With respect to margins, we expect our adjusted EBITDA margin, excluding corporate costs, to be between 24% and 24.5% in the quarter. We anticipate corporate costs in terms of adjusted EBITDA to be approximately $7 million in the quarter as we work our way down to the approximate $20 million annual run rate I discussed earlier. For the 2022 fiscal year, we remain confident in delivering double-digit reported and core growth year-over-year. With respect to profitability, we believe our adjusted EBITDA margin, excluding corporate costs, will be consistent with our margin in fiscal year 2021 and will generally improve each quarter as the year progresses. Our corporate expenses will be approximately $22 million for the year. Before we open the call for questions, just a few comments on our interest expense, stock comp expense, depreciation and amortization, tax rate, and diluted shares outstanding for the quarter and the year. We anticipate our interest expense for the March quarter to be approximately $5 million and approximately $21 million for the fiscal year. Our non-cash stock compensation expense should be about $5 million in the March quarter and approximately $17 million for the fiscal year. Depreciation and amortization will come in around $6 million for the March quarter and approximately $18 million for the fiscal year. Our tax rate on an adjusted pretax earnings basis will be between 26.5% and 27.5% for the March quarter as well as the full fiscal year. Diluted shares outstanding, updated to reflect the conversion of Rexnord equity grants to Zurn equity grants as a result of the RMT transaction, will be approximately 130-131 million for each quarter of fiscal 2022. With that, we'll open the call up for your questions. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad, and we'll pause for just a moment to compile our Q&A roster. Your first question comes from the line of Bryan Blair from Oppenheimer. Your line is open. Thanks, guys. Strong finish to the year. Thanks, Bryan. Morning, Bryan. To start with your double-digit core growth outlook, just wondering if anything over the last 90 days, you know, whether Omicron spread, continued supply chain tightness, and any of the headline risks of the day, you know, has meaningfully concerned your team in maintaining that guide. If possible, it'd be great to hear what you're currently contemplating for underlying market growth, price realization, and Zurn outperformance or share capture within that framework. Yeah, you bet. You know, a lot of headline news, Bryan, but I would call it not a whole lot different than really the last two years in terms of, you know, things changing day to day. You know, underlying that, fundamentally, we're very much committed to that double-digit growth for the year. I think it incorporates sort of a, you know, low to mid single digit market growth outlook, very similar from a price perspective, maybe a touch more, and then 2 points of market outgrowth. You know, you can see your way to something, you know, 10 plus. I think we're sort of starting the year maybe a little cautious, but I think our underlying confidence in delivering that is relatively high and virtually unchanged from 90 days ago. That's great to hear. Any further color or detail you can offer us on project pipeline and your key education and healthcare verticals? Just wondering if you can offer any directional insights on market outlook specific to those spaces, Zurn's positioning, and how that influences your 2022, 2023 prospects and, you know, confidence in continued growth trajectory. I think the level of activity we're seeing in those verticals is very, very strong. You know, I think you're seeing funds flow to state and local governments and ultimately to school districts. You know, there's a high priority on hygiene among other things, including technology and things of the like. Building upgrades is a big part of it. I think the level of activity is very good. As we track our funnels, you know, they continue to grow and be robust. You know, I think it supports you know, the market outlook that we've got very clearly. I think when you think about things like BrightShield and connected products, you know, it only reinforces our ability to drive some huge growth in those categories and in those verticals. I think it's a positive outlook for those two remains, and I think now we're starting to see that next phase of money actually, you know, getting to school districts to be able to invest in infrastructure and hygiene and upgrades for students. It's a good dynamic. That sounds like solid momentum there. Maybe offer some quick color on early stage Wade integration and what your team's expecting for year one revenue, where current margins are, and where you expect to drive profitability over time? Wade Drains is very complementary to our, you know, core Zurn drain business, very high relative spec share, strong regionally. I think we see, you know, the opportunity to implement the Zurn Business System, drive 80/20 and, you know, really create, you know, an even stronger position within our specs and even more so regionally. You know, from a revenue standpoint, it's relatively small today, circa $15 million, and the margins would come in at below the fleet average. I think we've got a very solid plan to convert the business to, you know, the model that we have and drive some additional simplifications. I would say, you know, towards the end of 2022, you should see that, you know, at or near the fleet average and with a solid growth outlook. You know, it was a little tuck-in for us, not huge, but I think strategically important when you think about the importance of spec share in our business. our ability to drive, you know, the efficiencies through the Zurn Business System, and what can do for our portfolio over time. Understood. Thanks again. You bet. Your next question comes from the line of Jeff Hammond from KeyBanc Capital Markets. Your line is open. Hey, good morning, guys. Morning. Morning, Jeff. Mark, you mentioned margins should progress and improve, like through the year. I'm just wondering, you know, what the big drivers of that are, and maybe you can speak within that, you know, how you see price cost, you know, playing out as you move through and maybe an update on what is getting better, you know, or stabilizing on the supply chain side. Sure. Yeah, Jeff, I think a couple things driving the margin improvement. You know, as the year progresses, we'll continue to make headway on the integration of both acquisitions. You know, the Hadrian deal we did over a year ago, as well as the Wade acquisition Todd just talked about. As the year progresses and our integration plans, you know, move forward, we'll see margin, you know, improvement in both of those, M&A deals that we've done over the past month and the past year. That's one piece of it. From a price cost standpoint, you know, that equation for us will get better as the year progresses, as everyone can appreciate. You know, the first half of the year, the overall cost was a little bit tougher when you look at that equation, given the environment we're in today versus where we were a year ago. Things that we're doing, our productivity initiatives and some cost reduction initiatives, you know, progress as the year moves forward. That equation gets better for us. I'd say, you know, we've been putting some, we talked about in the latter part of 2021 and here in the early part of 2022, a little bit outsize growth investment as well as investment around some of the nearshoring initiatives we've been putting in place. We start kind of, you know, again, as we get into the back half of 2022, we start comping against the way we started that investment in 2021. I'd say those are probably the three big buckets, Jeff, that are gonna, you know, allow that margin as the year progresses to steadily improve. Okay. Just on supply chain, I think your biggest issue maybe last quarter was really, you know, some freight dynamics. Just maybe update us on what's going on there. Yeah. You're right. Last quarter was really some timing issues, right? Just getting things, you know, over here into the U.S., into our plants and out in a timely fashion. We had some timing issues with that. As you can see, you know, in the results this quarter, that didn't impact us at all. I think some of the things that we've done from an econometric standpoint in the third quarter to get in front of it definitely helped. We've talked about from an inventory standpoint, you know, carrying a little more inventory to assure availability. Both actions, you know, started this last quarter. You'll see some of that in the first half of next year. I think everything that we've done to try to, you know, kind of counter that initial issue we hit in the third quarter definitely paid dividends in this quarter, as you can see the numbers, and we'll expect those same actions to keep us in a good spot. Right now, Jeff, you know, we don't have any significant concerns about an air pocket like we experienced in the third quarter. Never say never, obviously, but knowing what we know today, the things we've put in place on econometrics, some of that, we feel pretty good about where we are with inventory levels and availability of our products. Okay. Just last one. Just any differentiation in the growth between the different, you know, business groups, either in the fourth quarter or kind of within the outlook, or is it pretty broad-based? I'd say it's pretty broad-based, Jeff. I wouldn't say there's a material differentiation as you think about sort of those three subsectors of the Zurn business. You know, as we look forward in 2022, you know, right now we see a path where all those sectors are growing in that double-digit type category that we've been talking about. You know, good momentum in the funnel around all those categories. I think ultimately, you know, the one that could stand out and be a little different, especially with some of the school projects and education projects we talked about earlier, would be the Hygienic and Environmental sector. You know, could be a little, you know, a tad above the other two. Again, I'd say overall broad-based across all three of those sectors, yeah. Okay, great color. Thanks, guys. Again, if you'd like to ask a question, press star then the number one on your telephone keypad. Your next question comes from Joe Ritchie from Goldman Sachs. Your line is open. Thank you. Good morning, everyone. Morning. Morning, Joe. Maybe just staying on margins for a second and just thinking about the one key margin guide. Looks like you're expecting a little bit more revenue sequentially, but the margins kind of like in line with 4Q. Just maybe talk a little bit about the puts and takes on the margins for Q1. I know that you kind of already answered the progression throughout the year. Yeah. I feel if you kind of look at it sequentially, Joe, you know, if you're in the higher end of that range, you're sequentially looking at a margin that's gonna be, you know, close to what we would expect with our incrementals or decrementals sequentially. I think, you know, kind of look at where we ended this number, you expect to kind of be in a similar range. The difference would be, I think, if you just look at the overall sort of timing of how our price is rolling in, how some material cost is rolling in. This is the margin. This is the quarter where that overall dynamic just gets the tightest for us. It's really just a timing function of some of our pricing actions, some of the costs that we're seeing and how that's gonna roll through into the quarters. That really is the reason why you see a margin basis generally. From a stable standpoint, you know, Q4 into Q1, and then as I mentioned earlier, in Jeff's question then as you get into three and four, you see that margin progressing. The other thing too is that Wade acquisition in the first quarter, you know, we really haven't started a lot of our integration actions to benefit that first quarter margin. So that does put a little bit of a mixed impact in Q1 as well, just that new acquisition that'll then ramp as the year progresses as well. Got it. That's helpful. As you kinda think about that margin progression then throughout the year, and you think about the swing factors, it seems like you guys are pretty confident in the growth outlook. Things are looking good there. Your price actions are coming through. Would you say that like, you know, freight logistics is probably the biggest swing factor? I'm just curious how you're thinking about it, on what can push the margins higher or lower, throughout the year. Yeah. I Joe, I think a big part of it is, you know, when you think about the Zurn business, it really follows the construction season in North America. Q4, Q1 are the relative low points in terms of top line throughout a year, and Q2, Q3 is more. It's really, you know, just that tremendous operating leverage on the asset light model as you roll through the middle part of the year, I think is the biggest thing. I mean, obviously, you know, freight and logistics are a piece of it, but I wouldn't call it the swing factor by any means, based on the assumptions that we've given you. I think it's just more that core operating leverage that we get in the asset light model over the course of, you know, a revenue base that grows pretty significantly in the middle of the year when the level of activity is higher. Okay. Yeah, that makes a ton of sense. Maybe one last one for me. I'd be remiss if I didn't ask you about the M&A pipeline, how you feel about things today now that you've got the standalone business up and running. Like, how does the pipeline look today and how are you thinking about M&A for 2022? Yeah, I mean, I think we're not gonna predict it or time it, but I think we feel really good about the targets, the quality of the targets. I think that, you know, the reality is everything we do is generally proprietary. You know, the timing of those is difficult to predict, but I would say the richness of the conversations, and I think our anticipated conversion is pretty good on some high priority things. We just got to, you know, keep doing the work, and you know, the cultivations and I think they'll be there over time. I would say, I think I'm very pleased with the quality of the funnel and the progression of where they are in that funnel. You know, stay tuned, I suppose. I feel really good about our ability to convert some things over the course of 2022. Great. Thank you all. This concludes the Zurn Water Solutions Corporation fourth quarter 2021 earnings call. Thank you for your participation. You may now disconnect.