The Company signed an agreement to acquire Pureit from Unilever for approximately $120 million. This acquisition is expected to expand the Company's market penetration in the South Asia region.

Combining all factors, the company expects its 2024 consolidated sales to be approximately flat to 2023. This guidance excludes the impacts from potential future acquisitions.

The company anticipates sales of its North America water treatment products will increase approximately eight to ten percent in 2024, compared to 2023, as it continues its geographic expansion.

The company anticipates that commercial water heater industry volumes will be approximately flat in 2024 compared to 2023 as growth in commercial electric water heaters greater than 55 gallons will be offset by lower shipments of commercial gas water heaters.

Management projects 2024 industry residential unit volumes will be flat after approximately six percent growth in 2023. Proactive replacement has been above historical levels for the last several years and we project that will continue in 2024.

The company projects its third-party sales in China to decrease six to eight percent in 2024 in local currency compared to 2023 as it expects consumer demand softness will persist through the remainder of 2024.

The company saw soft residential and commercial water heater order demand in the third quarter after a strong first half of the year. Management believes that a pre-buy ahead of a March 1st price increase pulled forward some demand into the first half of the year.

Third quarter China sales declined 17 percent year-over-year as consumer demand headwinds were more significant than expected. The company projects third-party sales in China to decrease six to eight percent in 2024.

The filing contains a cautionary note regarding forward-looking statements, highlighting that actual results could differ materially due to various factors including economic conditions, supply chain issues, and geopolitical risks.

Our supply chain has been relatively stable. However, we continue to monitor potential disruptions and increase our safety stock of key components when we believe it is warranted.

The company is expanding its commercial water heater capacity in preparation for the new efficiency rule for commercial water heaters that the Department of Energy (DOE) has adopted that will take effect in 2026.

The company recently introduced its internally designed and manufactured gas tankless water heaters in North America.

The lower gross profit margin in the third quarter was primarily due to lower volumes and the associated negative impact on our operational efficiencies compared to the third quarter of 2023.

Our supply chain has been relatively stable. However, we continue to monitor potential disruptions and increase our safety stock of key components when we believe it is warranted.

During the third quarter of 2024, the Company continued the process of exiting its operations in Vietnam. The restructuring expense associated with the exit was recorded in the fourth quarter of 2023 and did not have a material impact on the Company's consolidated financial statements.

During the first quarter of 2024, the Company acquired a privately-held water treatment company. The addition of the acquired company expanded the Company's water treatment footprint in North America.

The company continues to look for opportunities to add to its existing product portfolio in high growth regions demonstrated by its previous introductions of kitchen products in China.

The company recently introduced its internally designed and manufactured gas tankless water heaters in North America.

In the first quarter of 2024, the Board of Directors approved adding 2,000,000 shares of common stock to our existing discretionary share repurchase authority. During the first nine months of 2024, we repurchased 2,850,500 shares of our stock at a total cost of $237.1 million.

On October 7, 2024, the Board of Directors declared a regular quarterly cash dividend of $0.34 per share on our Common Stock and Class A common stock.

Capital expenditures totaled $77.4 million in the first nine months of 2024 compared with $42.7 million in the same period last year. Higher capital expenditures compared to the prior year period was primarily due to our capacity expansion projects.

Beginning in 2023, certain executives may be awarded performance stock units under the Incentive Plan. Performance stock units vest over three years following the date of the grant. Performance stock units vest under a set of measurement criteria which are based upon achievement of certain Environmental, Social, and Governance targets.

The company expects its consolidated sales in 2024 to be flat to 2023. Our sales projection is driven by expected flat industry residential and commercial unit water heater volumes in North America compared to the prior year.

The company expects to see an eight percent increase in its sales of boilers in 2024 compared to 2023 as it continues to benefit from the transition to higher-efficiency boilers.

The company expects sales in China to decrease six to eight percent in local currency compared to 2023, driven by expected softness in consumer demand.