Mueller Water Products, Inc. (NYSE: MWA) announced financial
results for its fiscal 2023 third quarter ended June 30, 2023.
In the third quarter of 2023, the Company:
- Achieved net sales of $326.6 million
as compared with $333.2 million in the prior year quarter
- Reported operating income of $35.6
million as compared with $36.9 million in the prior year quarter
and adjusted operating income of $39.5 million as compared with
$42.0 million in the prior year quarter, resulting in an adjusted
operating margin of 12.1 percent as compared with 12.6 percent in
the prior year quarter
- Reported net income of $24.5 million
as compared with $26.5 million in the prior year quarter and
adjusted net income of $27.6 million as compared with $30.5 million
in the prior year quarter
- Reported net income per diluted
share of $0.16 and adjusted net income per diluted share of $0.18
as compared with reported net income per diluted share of $0.17 and
adjusted net income per diluted share of $0.19 in the prior year
quarter
- Generated adjusted EBITDA of $54.4
million as compared with $57.8 million in the prior year quarter,
resulting in an adjusted EBITDA margin of 16.7 percent as compared
with 17.3 percent in the prior year quarter
- Increased net cash provided by
operating activities for the nine-month period by $32.0 million to
$52.5 million as compared with $20.5 million in the prior year and
increased free cash flow by $36.3 million to $20.1 million as
compared with $(16.2) million in the prior year
“While the fundamental growth drivers of our business remain
intact, our third quarter net sales were below expectations as we
are experiencing a more prolonged inventory correction than
previously anticipated. With lead times returning to pre-pandemic
levels and end markets continuing to adjust to higher interest
rates, we are seeing lower order rates for the majority of our
short-cycle products. We are revising our annual guidance for 2023
based on current expectations for channel inventories, order levels
and brass production levels. We have taken actions to deliver
approximately $25 million in annual SG&A savings to help
mitigate the headwinds from lower volumes and inflationary
pressures,” said Scott Hall, President and Chief Executive Officer
of Mueller Water Products.
“Despite an increasingly challenging demand environment, I am
encouraged by our execution in the third quarter as we improved
margins sequentially. Our past pricing actions across most product
lines again more than offset ongoing inflationary pressures. Water
Management Solutions delivered strong results primarily driven by
higher pricing and increased volumes of hydrants. However, Water
Flow Solutions continued to experience challenges from lower
volumes of iron gate valves, relatively low brass production levels
and higher costs associated with inefficiencies and start-up costs
for the new brass foundry.
“Though the external environment continues to evolve, we believe
our end markets have strong long-term fundamentals, especially with
the future benefits from the federal infrastructure bill’s funding
for water infrastructure projects. Our new brass foundry remains on
track to fully ramp up by the end of fiscal 2024, positioning us to
capture increased demand related to lead service line replacement
projects. Looking beyond 2024, we remain confident that our growth
strategies, operational improvements and capital investments will
help deliver net sales growth and a return to pre-pandemic margins
in 2025,” Hall concluded.
Consolidated Results
Net sales for the 2023 third quarter decreased $6.6 million, or
2.0 percent, to $326.6 million as compared with $333.2 million in
the prior year quarter, with a decrease in volumes at Water Flow
Solutions partially offset by higher pricing in both segments and
volume growth at Water Management Solutions.
Operating income decreased $1.3 million, or 3.5 percent, to
$35.6 million for the 2023 third quarter as compared with $36.9
million in the prior year quarter as a result of a decrease in
volumes, unfavorable manufacturing performance and increased costs
associated with inflation, partially offset by benefits from higher
pricing. Additionally, the prior year quarter included a $4.5
million warranty accrual charge.
During the quarter, the Company incurred $3.9 million of
strategic reorganization and other charges that have been excluded
from adjusted results.
Adjusted operating income decreased $2.5 million, or 6.0
percent, to $39.5 million for the quarter as compared with $42.0
million in the prior year quarter.
Adjusted EBITDA of $54.4 million decreased $3.4 million, or 5.9
percent, as compared with $57.8 million in the prior year quarter.
Adjusted EBITDA margin was 16.7 percent for the 2023 third quarter
as compared with 17.3 percent in the prior year quarter.
Segment Results
Water Flow Solutions
Net sales for the 2023 third quarter decreased $45.8 million, or
23.4 percent, to $150.1 million as compared with $195.9 million in
the prior year quarter. This decrease was primarily due to lower
volumes in our iron gate valve products, partially offset by higher
pricing across most product lines and volume growth in specialty
valve products.
Operating income and adjusted operating income for the quarter
were $12.6 million and $12.7 million, respectively. Adjusted
operating income decreased $25.4 million, or 66.7 percent, compared
with the prior year quarter. Benefits from higher pricing and lower
SG&A expenses were more than offset by lower volumes in our
iron gate valve products, unfavorable manufacturing performance and
higher costs associated with inflation.
Adjusted EBITDA of $20.9 million decreased $24.8 million, or
54.3 percent, as compared with $45.7 million in the prior year
quarter. Adjusted EBITDA margin was 13.9 percent as compared with
23.3 percent in the prior year quarter.
Water Management Solutions
Net sales for the 2023 third quarter increased $39.2 million, or
28.6 percent, to $176.5 million as compared with $137.3 million in
the prior year quarter. This increase was due to higher pricing
across most product lines and increased volumes, primarily in
hydrant and water application products.
Operating income and adjusted operating income for the quarter
were $39.0 million and $40.0 million, respectively. Adjusted
operating income increased $23.5 million, or 142.4 percent, as
compared with $16.5 million in the prior year quarter. Benefits
from higher pricing and increased volumes more than offset
unfavorable manufacturing performance, the impact of foreign
exchange and higher costs associated with inflation.
Adjusted EBITDA of $47.6 million increased $23.9 million, or
100.8 percent, as compared with $23.7 million in the prior year
quarter. Adjusted EBITDA margin was 27.0 percent as compared with
17.3 percent in the prior year quarter.
Interest Expense, Net
Interest expense, net, for the 2023 third quarter declined to
$3.8 million as compared with $4.2 million in the prior year
quarter primarily as a result of higher interest income.
Income Taxes
Income tax expense for the 2023 third quarter was $6.4 million,
or 20.7 percent of income before taxes. Income tax expense in the
prior year quarter was $7.1 million, or 21.1 percent of income
before taxes.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month
period increased by $32.0 million to $52.5 million as compared with
$20.5 million in the prior year, primarily driven by improvements
in working capital compared with the prior year period, including a
sequential decrease in inventories during the third quarter.
The Company invested $11.9 million in capital expenditures
during the third quarter as compared with $10.7 million in the
prior year quarter. For the nine-month period, the Company has
invested $32.4 million in capital expenditures as compared with
$36.7 million in the prior year.
Free cash flow (defined as net cash provided by operating
activities less capital expenditures) for the nine-month period
increased by $36.3 million to $20.1 million as compared with free
cash flow of $(16.2) million in the comparable prior year period,
due to the increase in net cash provided by operating activities
and lower capital expenditures, as previously mentioned.
As of June 30, 2023, Mueller Water Products had $447.5
million of total debt outstanding and $141.2 million of cash and
cash equivalents, resulting in a debt leverage ratio of 2.4 times
and net debt leverage ratio of 1.7 times. There are no maturities
on the Company’s debt financings until June 2029, and its 4.0
percent Senior Notes have no financial maintenance covenants. Based
on June 30, 2023, data, the Company had approximately $162.3
million of excess availability under its ABL Agreement, bringing
its total liquidity to $303.5 million.
Full-Year Fiscal 2023 Outlook
Based on current market conditions, including expectations for
channel inventories and order levels, and anticipated brass
production levels, the Company anticipates annual consolidated net
sales will be between flat and down 2 percent compared with the
prior year and adjusted EBITDA will be between flat and down 5
percent compared with the prior year. This outlook considers
pension expense other than service, which is excluded from adjusted
operating income, of approximately $3.8 million in 2023 compared
with a benefit of $3.9 million in the prior year. The Company
expects free cash flow as a percentage of adjusted net income to be
more than 30 percent for the full-year fiscal 2023.
The Company’s expectations for certain financial metrics for the
full-year fiscal 2023 are as follows:
- Total SG&A expenses between $246
million and $248 million
- Net interest expense between $15
million and $16 million
- Effective income tax rate between 23
percent and 24 percent
- Depreciation and amortization
between $62 million and $63 million
- Capital expenditures between $50
million and $55 million
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will
take place Friday, Aug. 4, 2023, at 10 a.m. ET. Members of Mueller
Water Products’ leadership team will discuss the Company’s recent
financial performance and respond to questions from financial
analysts. A live webcast of the call will be available on the
Investor Relations section of the Company’s website. Please go to
the website (www.muellerwaterproducts.com) at least 15 minutes
prior to the start of the call to register, and to download and
install any necessary software. A replay of the call will be
available for 30 days and can be accessed by dialing
1-866-510-4837. An archive of the webcast will also be available
for at least 90 days on the Investor Relations section of the
Company’s website.
Use of Non-GAAP Measures
In an effort to provide investors with additional information
regarding the Company’s results as determined by accounting
principles generally accepted in the United States (“GAAP”), the
Company also provides non-GAAP information that management believes
is useful to investors. These non-GAAP measures have limitations as
analytical tools, and securities analysts, investors and other
interested parties should not consider any of these non-GAAP
measures in isolation or as a substitute for analysis of the
Company’s results as reported under GAAP. These non-GAAP measures
may not be comparable to similarly titled measures used by other
companies.
The Company presents adjusted net income, adjusted net income
per diluted share, adjusted operating income, adjusted operating
margin, adjusted EBITDA and adjusted EBITDA margin as performance
measures because management uses these measures to evaluate the
Company’s underlying performance on a consistent basis across
periods and to make decisions about operational strategies.
Management also believes these measures are frequently used by
securities analysts, investors and other interested parties in the
evaluation of the Company’s recurring performance.
The Company presents net debt and net debt leverage as
performance measures because management uses them to evaluate its
capital management and financial position, and the investment
community commonly uses them as measures of indebtedness. The
Company presents free cash flow to assist management and investors
in analyzing the Company’s ability to generate liquidity from its
operating activities.
The calculations of these non-GAAP measures and reconciliations
to GAAP results are included as an attachment to this press
release, which has been posted online at
www.muellerwaterproducts.com. The Company does not reconcile
forward-looking non-GAAP measures to the comparable GAAP measures,
as permitted by Regulation S-K, as certain items, e.g., expenses
related to corporate development activities, transactions, pension
expenses/(benefits) and corporate restructuring, may have not yet
occurred, are out of the Company’s control and/or cannot be
reasonably predicted without unreasonable efforts. Additionally,
such reconciliation would imply a degree of precision and certainty
regarding relevant items that may be confusing to investors. Such
items could have a substantial impact on GAAP measures of the
Company's financial performance.
Forward-Looking Statements
This press release contains certain statements that may be
deemed “forward-looking statements” within the meaning of the
federal securities laws. All statements that address activities,
events or developments that the Company intends, expects, plans,
projects, believes or anticipates will or may occur in the future
are forward-looking statements, including, without limitation,
statements regarding outlooks, projections, forecasts,
expectations, commitments, trend descriptions and the ability to
capitalize on trends, value creation, Board and committee
composition plans, long-term strategies and the execution or
acceleration thereof, operational improvements, inventory
positions, the benefits of capital investments, financial or
operating performance including improving sales growth and driving
increased margins, capital allocation and growth strategy plans,
the Company’s product portfolio positioning and the demand for the
Company’s products. Forward-looking statements are based on certain
assumptions and assessments made by the Company in light of the
Company’s experience and perception of historical trends, current
conditions and expected future developments.
Actual results and the timing of events may differ materially
from those contemplated by the forward-looking statements due to a
number of factors, without limitation, including the future impact
of the COVID-19 pandemic on the Company’s operations and results,
including effects on the financial health of customers (including
collections and inventory positions); logistical challenges and
supply chain disruptions, geopolitical conditions, or other events;
an inability to realize the anticipated benefits from our
operational initiatives, including our large capital investments in
Chattanooga and Kimball, Tennessee, and Decatur, Illinois, plant
closures, and our reorganization and related strategic realignment
activities; an inability to attract or retain a skilled and diverse
workforce, increased competition related to the workforce and labor
markets; an inability to protect the Company’s information systems
against service interruption, misappropriation of data or breaches
of security; failure to comply with personal data protection and
privacy laws; cyclical and changing demand in core markets such as
municipal spending, residential construction, and natural gas
distribution; government monetary or fiscal policies; the impact of
adverse weather conditions; the impact of manufacturing and product
performance; the impact of wage, commodity and materials price
inflation; foreign exchange rate fluctuations; the impact of
warranty claims; an inability to successfully resolve significant
legal proceedings or government investigations; compliance with
environmental, trade and anti-corruption laws and regulations;
climate change and legal or regulatory responses thereto; changing
regulatory, trade and tariff conditions; the failure to integrate
and/or realize any of the anticipated benefits of recent
acquisitions or divestitures; an inability to achieve some or all
of our Environmental, Social, and Governance goals; and other
factors that are described in the section entitled “RISK FACTORS”
in Item 1A of the Company’s most recent Annual Report on Form 10-K
and later filings on Form 10-Q, as applicable.
Forward-looking statements do not guarantee
future performance and are only as of the date they are made. The
Company undertakes no duty to update its forward-looking statements
except as required by law. Undue reliance should not be placed on
any forward-looking statements. You are advised to review any
further disclosures the Company makes on related subjects in
subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the
U.S. Securities and Exchange Commission.
About Mueller Water Products,
Inc.
Mueller Water Products, Inc. is a leading manufacturer and
marketer of products and services used in the transmission,
distribution and measurement of water in North America. Our broad
product and service portfolio includes engineered valves, fire
hydrants, pipe connection and repair products, metering products,
leak detection, pipe condition assessment, pressure management
products, and software technology that provides critical water
system data. We help municipalities increase operational
efficiencies, improve customer service and prioritize capital
spending, demonstrating why Mueller Water Products is Where
Intelligence Meets Infrastructure®. Visit us at
www.muellerwaterproducts.com.
Mueller refers to one or more of Mueller Water Products, Inc.
(MWP), a Delaware corporation, and its subsidiaries. MWP and each
of its subsidiaries are legally separate and independent entities
when providing products and services. MWP does not provide products
or services to third parties. MWP and each of its subsidiaries are
liable only for their own acts and omissions and not those of each
other. Mueller brands include Mueller®, Echologics®, Hydro Gate®,
Hydro-Guard®, HYMAX®, i2O®, Jones®, Krausz®, Mi.Net®, Milliken®,
Pratt®, Pratt Industrial®, SentryxTM, Singer®, and U.S. Pipe Valve
& Hydrant. Please see muellerwp.com/brands to learn more.
Investor Relations Contact: Whit
Kincaid770-206-4116wkincaid@muellerwp.com
Media Contact: Robin Keegan404-206-4152rkeegan@muellerwp.com
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED) |
|
|
|
|
|
June 30, |
|
September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
(in millions, except share amounts) |
Assets: |
|
|
|
Cash and cash equivalents |
$ |
141.2 |
|
|
$ |
146.5 |
|
Receivables, net of allowance for credit losses of $6.4 million and
$5.6 million |
|
210.3 |
|
|
|
228.0 |
|
Inventories, net |
|
312.7 |
|
|
|
278.7 |
|
Other current assets |
|
27.2 |
|
|
|
26.8 |
|
Total current assets |
|
691.4 |
|
|
|
680.0 |
|
Property, plant and equipment, net |
|
306.9 |
|
|
|
301.6 |
|
Intangible assets, net |
|
341.9 |
|
|
|
361.2 |
|
Goodwill, net |
|
97.0 |
|
|
|
98.6 |
|
Other noncurrent assets |
|
56.1 |
|
|
|
56.7 |
|
Total assets |
$ |
1,493.3 |
|
|
$ |
1,498.1 |
|
|
|
|
|
Liabilities and stockholders’
equity: |
|
|
|
Current portion of long-term debt |
$ |
0.8 |
|
|
$ |
0.8 |
|
Accounts payable |
|
101.0 |
|
|
|
122.8 |
|
Other current liabilities |
|
98.1 |
|
|
|
117.4 |
|
Total current liabilities |
|
199.9 |
|
|
|
241.0 |
|
Long-term debt |
|
446.7 |
|
|
|
446.1 |
|
Deferred income taxes |
|
80.0 |
|
|
|
86.3 |
|
Other noncurrent liabilities |
|
52.5 |
|
|
|
55.4 |
|
Total liabilities |
|
779.1 |
|
|
|
828.8 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Preferred stock: par value $0.01 per share; 60,000,000 shares
authorized; none outstanding at June 30, 2023, and September 30,
2022 |
|
— |
|
|
|
— |
|
Common stock: par value $0.01 per share; 600,000,000 shares
authorized; 156,424,123 and 155,844,138 shares outstanding at
June 30, 2023, and September 30, 2022, respectively |
|
1.6 |
|
|
|
1.6 |
|
Additional paid-in capital |
|
1,257.2 |
|
|
|
1,279.6 |
|
Accumulated deficit |
|
(499.0 |
) |
|
|
(567.3 |
) |
Accumulated other comprehensive loss |
|
(45.6 |
) |
|
|
(44.6 |
) |
Total stockholders' equity |
|
714.2 |
|
|
|
669.3 |
|
Total liabilities and stockholders' equity |
$ |
1,493.3 |
|
|
$ |
1,498.1 |
|
|
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
(in millions, except per share amounts) |
Net sales |
$ |
326.6 |
|
$ |
333.2 |
|
|
$ |
974.3 |
|
$ |
916.0 |
|
Cost of sales (1) |
|
226.5 |
|
|
234.9 |
|
|
|
683.2 |
|
|
637.3 |
|
Gross profit |
|
100.1 |
|
|
98.3 |
|
|
|
291.1 |
|
|
278.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
|
60.6 |
|
|
60.8 |
|
|
|
187.7 |
|
|
175.1 |
|
Strategic reorganization and other charges (2) |
|
3.9 |
|
|
0.6 |
|
|
|
0.9 |
|
|
3.6 |
|
Total operating expenses |
|
64.5 |
|
|
61.4 |
|
|
|
188.6 |
|
|
178.7 |
|
Operating income |
|
35.6 |
|
|
36.9 |
|
|
|
102.5 |
|
|
100.0 |
|
Pension expense (benefit) other than service |
|
0.9 |
|
|
(0.9 |
) |
|
|
2.8 |
|
|
(2.9 |
) |
Interest expense, net |
|
3.8 |
|
|
4.2 |
|
|
|
11.4 |
|
|
13.0 |
|
Income before income taxes |
|
30.9 |
|
|
33.6 |
|
|
|
88.3 |
|
|
89.9 |
|
Income tax expense |
|
6.4 |
|
|
7.1 |
|
|
|
20.0 |
|
|
20.4 |
|
Net income |
$ |
24.5 |
|
$ |
26.5 |
|
|
$ |
68.3 |
|
$ |
69.5 |
|
|
|
|
|
|
|
|
|
Net income per basic
share |
$ |
0.16 |
|
$ |
0.17 |
|
|
$ |
0.44 |
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Net income per diluted
share |
$ |
0.16 |
|
$ |
0.17 |
|
|
$ |
0.44 |
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
156.4 |
|
|
157.0 |
|
|
|
156.2 |
|
|
157.6 |
|
Diluted |
|
157.2 |
|
|
157.6 |
|
|
|
156.8 |
|
|
158.3 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.061 |
|
$ |
0.058 |
|
|
$ |
0.183 |
|
$ |
0.174 |
|
|
|
|
|
|
|
|
|
(1) For the
three-month period ended June 30, 2022, the Company recorded a
charge of $4.5 million in connection with its warranty
obligations. |
(2) For the
three-month period ended June 30, 2023, the Company recorded
restructuring charges related to severance and certain
transaction-related expenses. For the three-month period ended June
30, 2022, the Company recorded restructuring charges related to the
closure of our facilities in Aurora, Illinois and Surrey, British
Columbia, Canada. |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(UNAUDITED) |
|
|
Nine months ended |
|
June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
(in millions) |
Operating activities: |
|
|
|
Net income |
$ |
68.3 |
|
|
$ |
69.5 |
|
Adjustments to reconcile net income to net cash provided by
operating activities, net of acquisition: |
|
|
|
Depreciation |
|
25.1 |
|
|
|
23.8 |
|
Amortization |
|
21.0 |
|
|
|
21.1 |
|
Gain on sale of assets |
|
(3.7 |
) |
|
|
— |
|
Stock-based compensation |
|
5.9 |
|
|
|
6.6 |
|
Pension net periodic cost (benefit) |
|
3.4 |
|
|
|
(1.9 |
) |
Deferred income taxes |
|
(6.7 |
) |
|
|
1.8 |
|
Inventory reserves provision |
|
0.4 |
|
|
|
3.9 |
|
Other, net |
|
0.7 |
|
|
|
0.7 |
|
Changes in assets and liabilities, net of acquisition: |
|
|
|
Receivables, net |
|
18.2 |
|
|
|
(10.6 |
) |
Inventories |
|
(34.1 |
) |
|
|
(71.3 |
) |
Other assets |
|
(2.0 |
) |
|
|
(5.5 |
) |
Accounts payable |
|
(21.8 |
) |
|
|
6.7 |
|
Other current liabilities |
|
(19.4 |
) |
|
|
(23.1 |
) |
Other noncurrent liabilities |
|
(2.8 |
) |
|
|
(1.2 |
) |
Net cash provided by operating activities |
|
52.5 |
|
|
|
20.5 |
|
Investing activities: |
|
|
|
Capital expenditures |
|
(32.4 |
) |
|
|
(36.7 |
) |
Acquisition purchase price adjustment |
|
— |
|
|
|
0.2 |
|
Proceeds from sale of assets |
|
5.1 |
|
|
|
— |
|
Net cash used in investing activities |
|
(27.3 |
) |
|
|
(36.5 |
) |
Financing activities: |
|
|
|
Dividends paid |
|
(28.6 |
) |
|
|
(27.4 |
) |
Employee taxes related to stock-based compensation |
|
(1.6 |
) |
|
|
(1.9 |
) |
Common stock issued |
|
1.9 |
|
|
|
1.6 |
|
Common stock repurchased under buyback program |
|
— |
|
|
|
(25.0 |
) |
Payments for finance lease obligations |
|
(0.9 |
) |
|
|
(0.4 |
) |
Net cash used in financing activities |
|
(29.2 |
) |
|
|
(53.1 |
) |
Effect of currency exchange
rate changes on cash |
|
(1.3 |
) |
|
|
(3.5 |
) |
Net change in cash and cash equivalents |
|
(5.3 |
) |
|
|
(72.6 |
) |
Cash and cash equivalents at
beginning of period |
|
146.5 |
|
|
|
227.5 |
|
Cash and cash equivalents at
end of period |
$ |
141.2 |
|
|
$ |
154.9 |
|
|
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
NON-GAAP TO GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
|
Three months ended June 30, 2023 |
|
Water Flow Solutions |
|
Water Management Solutions |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
150.1 |
|
|
$ |
176.5 |
|
|
$ |
— |
|
|
$ |
326.6 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
33.6 |
|
|
$ |
66.5 |
|
|
$ |
— |
|
|
$ |
100.1 |
|
Selling, general and administrative expenses |
|
20.9 |
|
|
|
26.5 |
|
|
|
13.2 |
|
|
|
60.6 |
|
Strategic reorganization and other charges (1) |
|
0.1 |
|
|
|
1.0 |
|
|
|
2.8 |
|
|
|
3.9 |
|
Operating income (loss) |
$ |
12.6 |
|
|
$ |
39.0 |
|
|
$ |
(16.0 |
) |
|
$ |
35.6 |
|
|
|
|
|
|
|
|
|
Operating margin |
|
8.4 |
% |
|
|
22.1 |
% |
|
|
|
|
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
7.5 |
|
|
$ |
4.4 |
|
|
$ |
— |
|
|
$ |
11.9 |
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP to GAAP performance measures: |
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
24.5 |
|
Strategic reorganization and other charges (1) |
|
|
|
|
|
|
|
3.9 |
|
Income tax benefit of adjusting items |
|
|
|
|
|
|
|
(0.8 |
) |
Adjusted net income |
|
|
|
|
|
|
$ |
27.6 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
|
|
|
|
|
157.2 |
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
24.5 |
|
Income tax expense (2) |
|
|
|
|
|
|
|
6.4 |
|
Interest expense, net (2) |
|
|
|
|
|
|
|
3.8 |
|
Pension expense other than service (2) |
|
|
|
|
|
|
|
0.9 |
|
Operating income (loss) |
$ |
12.6 |
|
|
$ |
39.0 |
|
|
$ |
(16.0 |
) |
|
|
35.6 |
|
Strategic reorganization and other charges (1) |
|
0.1 |
|
|
|
1.0 |
|
|
|
2.8 |
|
|
|
3.9 |
|
Adjusted operating income (loss) |
|
12.7 |
|
|
|
40.0 |
|
|
|
(13.2 |
) |
|
|
39.5 |
|
Pension expense other than service |
|
— |
|
|
|
— |
|
|
|
(0.9 |
) |
|
|
(0.9 |
) |
Depreciation and amortization |
|
8.2 |
|
|
|
7.6 |
|
|
|
— |
|
|
|
15.8 |
|
Adjusted EBITDA |
$ |
20.9 |
|
|
$ |
47.6 |
|
|
$ |
(14.1 |
) |
|
$ |
54.4 |
|
|
|
|
|
|
|
|
|
Adjusted operating margin |
|
8.5 |
% |
|
|
22.7 |
% |
|
|
|
|
12.1 |
% |
Adjusted EBITDA margin |
|
13.9 |
% |
|
|
27.0 |
% |
|
|
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
20.9 |
|
|
$ |
47.6 |
|
|
$ |
(14.1 |
) |
|
$ |
54.4 |
|
Three prior quarters' adjusted EBITDA |
|
82.9 |
|
|
|
88.1 |
|
|
|
(40.1 |
) |
|
|
130.9 |
|
Trailing twelve months' adjusted EBITDA |
$ |
103.8 |
|
|
$ |
135.7 |
|
|
$ |
(54.2 |
) |
|
$ |
185.3 |
|
|
|
|
|
|
|
|
|
Reconciliation of net debt to
total debt (end of period): |
|
|
|
|
|
|
|
Current portion of long term debt |
|
|
|
|
|
|
$ |
0.8 |
|
Long-term debt |
|
|
|
|
|
|
|
446.7 |
|
Total debt |
|
|
|
|
|
|
|
447.5 |
|
Less cash and cash equivalents |
|
|
|
|
|
|
|
141.2 |
|
Net debt |
|
|
|
|
|
|
$ |
306.3 |
|
|
|
|
|
|
|
|
|
Net debt leverage (net debt divided by trailing twelve months'
adjusted EBITDA) |
|
|
|
|
|
1.7 |
x |
|
|
|
|
|
|
|
|
Reconciliation of
free cash flow to net cash provided by operating activities: |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
$ |
74.7 |
|
Less capital expenditures |
|
|
|
|
|
|
|
11.9 |
|
Free cash flow |
|
|
|
|
|
|
$ |
62.8 |
|
|
|
|
|
|
|
|
|
(1) Strategic
reorganization and other charges includes severance and certain
transaction-related expenses. |
(2) The Company
does not allocate interest, income taxes or pension amounts other
than service to its segments. |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
NON-GAAP TO GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
|
Three months ended June 30, 2022 |
|
Water Flow Solutions |
|
Water Management Solutions |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
195.9 |
|
|
$ |
137.3 |
|
|
$ |
— |
|
|
$ |
333.2 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
60.8 |
|
|
$ |
37.5 |
|
|
$ |
— |
|
|
$ |
98.3 |
|
Selling, general and administrative expenses |
|
22.7 |
|
|
|
25.5 |
|
|
|
12.6 |
|
|
|
60.8 |
|
Strategic reorganization and other charges (1) |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
0.6 |
|
Operating income (loss) |
$ |
38.1 |
|
|
$ |
12.0 |
|
|
$ |
(13.2 |
) |
|
$ |
36.9 |
|
|
|
|
|
|
|
|
|
Operating margin |
|
19.4 |
% |
|
|
8.7 |
% |
|
|
|
|
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
8.1 |
|
|
$ |
2.6 |
|
|
$ |
— |
|
|
$ |
10.7 |
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP to GAAP performance measures: |
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
26.5 |
|
Warranty charge (2) |
|
|
|
|
|
|
|
4.5 |
|
Strategic reorganization and other charges (1) |
|
|
|
|
|
|
|
0.6 |
|
Income tax benefit of adjusting items |
|
|
|
|
|
|
|
(1.1 |
) |
Adjusted net income |
|
|
|
|
|
|
$ |
30.5 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
|
|
|
|
|
157.6 |
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
26.5 |
|
Income tax expense (3) |
|
|
|
|
|
|
|
7.1 |
|
Interest expense, net (3) |
|
|
|
|
|
|
|
4.2 |
|
Pension benefit other than service (3) |
|
|
|
|
|
|
|
(0.9 |
) |
Operating income (loss) |
$ |
38.1 |
|
|
$ |
12.0 |
|
|
$ |
(13.2 |
) |
|
|
36.9 |
|
Warranty charge (2) |
|
— |
|
|
|
4.5 |
|
|
|
— |
|
|
|
4.5 |
|
Strategic reorganization and other charges (1) |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
0.6 |
|
Adjusted operating income (loss) |
|
38.1 |
|
|
|
16.5 |
|
|
|
(12.6 |
) |
|
|
42.0 |
|
Pension benefit other than service (3) |
|
— |
|
|
|
— |
|
|
|
0.9 |
|
|
|
0.9 |
|
Depreciation and amortization |
|
7.6 |
|
|
|
7.2 |
|
|
|
0.1 |
|
|
|
14.9 |
|
Adjusted EBITDA |
$ |
45.7 |
|
|
$ |
23.7 |
|
|
$ |
(11.6 |
) |
|
$ |
57.8 |
|
|
|
|
|
|
|
|
|
Adjusted operating margin |
|
19.4 |
% |
|
|
12.0 |
% |
|
|
|
|
12.6 |
% |
Adjusted EBITDA margin |
|
23.3 |
% |
|
|
17.3 |
% |
|
|
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
45.7 |
|
|
$ |
23.7 |
|
|
$ |
(11.6 |
) |
|
$ |
57.8 |
|
Three prior quarters' adjusted EBITDA |
|
117.2 |
|
|
|
59.6 |
|
|
|
(33.1 |
) |
|
|
143.7 |
|
Trailing twelve months' adjusted EBITDA |
$ |
162.9 |
|
|
$ |
83.3 |
|
|
$ |
(44.7 |
) |
|
$ |
201.5 |
|
|
|
|
|
|
|
|
|
Reconciliation of net debt to
total debt (end of period): |
|
|
|
|
|
|
|
Current portion of long term debt |
|
|
|
|
|
|
$ |
0.9 |
|
Long-term debt |
|
|
|
|
|
|
|
446.1 |
|
Total debt |
|
|
|
|
|
|
|
447.0 |
|
Less cash and cash equivalents |
|
|
|
|
|
|
|
154.9 |
|
Net debt |
|
|
|
|
|
|
$ |
292.1 |
|
|
|
|
|
|
|
|
|
Net debt leverage (net debt divided by trailing twelve months'
adjusted EBITDA) |
|
|
|
|
|
|
1.4 |
x |
|
|
|
|
|
|
|
|
Reconciliation of
free cash flow to net cash provided by operating activities: |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
$ |
19.7 |
|
Less capital expenditures |
|
|
|
|
|
|
|
10.7 |
|
Free cash flow |
|
|
|
|
|
|
$ |
9.0 |
|
|
|
|
|
|
|
|
|
(1) Strategic
reorganization and other charges includes charges related to the
closure of our facilities in Aurora, Illinois and Surrey, British
Columbia, Canada. |
(2) The Company
recorded a charge of $4.5 million in connection with its warranty
obligations. |
(3) The Company
does not allocate interest, income taxes or pension amounts other
than service to its segments. |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
NON-GAAP TO GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
|
Nine months ended June 30, 2023 |
|
Water Flow Solutions |
|
Water Management Solutions |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
472.9 |
|
|
$ |
501.4 |
|
|
$ |
— |
|
|
$ |
974.3 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
117.4 |
|
|
$ |
173.7 |
|
|
$ |
— |
|
|
$ |
291.1 |
|
Selling, general and
administrative expenses |
|
65.3 |
|
|
|
82.2 |
|
|
|
40.2 |
|
|
|
187.7 |
|
Strategic reorganization and
other charges (benefits) (1) |
|
0.1 |
|
|
|
1.2 |
|
|
|
(0.4 |
) |
|
|
0.9 |
|
Operating income (loss) |
$ |
52.0 |
|
|
$ |
90.3 |
|
|
$ |
(39.8 |
) |
|
$ |
102.5 |
|
|
|
|
|
|
|
|
|
Operating margin |
|
11.0 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
23.1 |
|
|
$ |
9.3 |
|
|
$ |
— |
|
|
$ |
32.4 |
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP to GAAP performance measures: |
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
68.3 |
|
Strategic reorganization and other charges (benefits) (1) |
|
|
|
|
|
|
|
0.9 |
|
Income tax benefit of adjusting items |
|
|
|
|
|
|
|
(0.2 |
) |
Adjusted net income |
|
|
|
|
|
|
$ |
69.0 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
|
|
|
|
|
156.8 |
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
68.3 |
|
Income tax expense (2) |
|
|
|
|
|
|
|
20.0 |
|
Interest expense, net (2) |
|
|
|
|
|
|
|
11.4 |
|
Pension expense other than service (2) |
|
|
|
|
|
|
|
2.8 |
|
Operating income (loss) |
$ |
52.0 |
|
|
$ |
90.3 |
|
|
$ |
(39.8 |
) |
|
|
102.5 |
|
Strategic reorganization and other charges (benefits) (1) |
|
0.1 |
|
|
|
1.2 |
|
|
|
(0.4 |
) |
|
|
0.9 |
|
Adjusted operating income (loss) |
|
52.1 |
|
|
|
91.5 |
|
|
|
(40.2 |
) |
|
|
103.4 |
|
Pension benefit other than service |
|
— |
|
|
|
— |
|
|
|
(2.8 |
) |
|
|
(2.8 |
) |
Depreciation and amortization |
|
23.7 |
|
|
|
22.3 |
|
|
|
0.1 |
|
|
|
46.1 |
|
Adjusted EBITDA |
$ |
75.8 |
|
|
$ |
113.8 |
|
|
$ |
(42.9 |
) |
|
$ |
146.7 |
|
|
|
|
|
|
|
|
|
Adjusted operating margin |
|
11.0 |
% |
|
|
18.2 |
% |
|
|
|
|
10.6 |
% |
Adjusted EBITDA margin |
|
16.0 |
% |
|
|
22.7 |
% |
|
|
|
|
15.1 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
free cash flow to net cash provided by operating activities: |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
$ |
52.5 |
|
Less capital expenditures |
|
|
|
|
|
|
|
32.4 |
|
Free cash flow |
|
|
|
|
|
|
$ |
20.1 |
|
|
|
|
|
|
|
|
|
(1) Strategic
reorganization and other charges (benefits) includes severance and
certain transaction-related expenses partially offset by a gain on
the sale of our facility in Aurora, Illinois. |
(2) The Company
does not allocate interest, income taxes or pension amounts other
than service to its segments. |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
NON-GAAP TO GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
|
Nine months ended June 30, 2022 |
|
Water Flow Solutions |
|
Water Management Solutions |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
534.7 |
|
|
$ |
381.3 |
|
|
$ |
— |
|
|
$ |
916.0 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
169.9 |
|
|
$ |
108.8 |
|
|
$ |
— |
|
|
$ |
278.7 |
|
Selling, general and
administrative expenses |
|
65.1 |
|
|
|
73.5 |
|
|
|
36.5 |
|
|
|
175.1 |
|
Strategic reorganization and
other charges (1) |
|
— |
|
|
|
0.2 |
|
|
|
3.4 |
|
|
|
3.6 |
|
Operating income (loss) |
$ |
104.8 |
|
|
$ |
35.1 |
|
|
$ |
(39.9 |
) |
|
$ |
100.0 |
|
|
|
|
|
|
|
|
|
Operating margin |
|
19.6 |
% |
|
|
9.2 |
% |
|
|
|
|
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
29.6 |
|
|
$ |
7.1 |
|
|
$ |
— |
|
|
$ |
36.7 |
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP to GAAP performance measures: |
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
69.5 |
|
Warranty charge (2) |
|
|
|
|
|
|
|
4.5 |
|
Strategic reorganization and other charges (1) |
|
|
|
|
|
|
|
3.6 |
|
Income tax benefit of adjusting items |
|
|
|
|
|
|
|
(1.8 |
) |
Adjusted net income |
|
|
|
|
|
|
$ |
75.8 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
|
|
|
|
|
158.3 |
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
$ |
69.5 |
|
Income tax expense (3) |
|
|
|
|
|
|
|
20.4 |
|
Interest expense, net (3) |
|
|
|
|
|
|
|
13.0 |
|
Pension benefit other than service (3) |
|
|
|
|
|
|
|
(2.9 |
) |
Operating income (loss) |
$ |
104.8 |
|
|
$ |
35.1 |
|
|
$ |
(39.9 |
) |
|
|
100.0 |
|
Warranty charge (2) |
|
— |
|
|
|
4.5 |
|
|
|
— |
|
|
|
4.5 |
|
Strategic reorganization and other charges (1) |
|
— |
|
|
|
0.2 |
|
|
|
3.4 |
|
|
|
3.6 |
|
Adjusted operating income (loss) |
|
104.8 |
|
|
|
39.8 |
|
|
|
(36.5 |
) |
|
|
108.1 |
|
Pension benefit other than service |
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
2.9 |
|
Depreciation and amortization |
|
22.5 |
|
|
|
22.2 |
|
|
|
0.2 |
|
|
|
44.9 |
|
Adjusted EBITDA |
$ |
127.3 |
|
|
$ |
62.0 |
|
|
$ |
(33.4 |
) |
|
$ |
155.9 |
|
|
|
|
|
|
|
|
|
Adjusted operating margin |
|
19.6 |
% |
|
|
10.4 |
% |
|
|
|
|
11.8 |
% |
Adjusted EBITDA margin |
|
23.8 |
% |
|
|
16.3 |
% |
|
|
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
free cash flow to net cash provided by operating activities: |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
$ |
20.5 |
|
Less capital expenditures |
|
|
|
|
|
|
|
36.7 |
|
Free cash flow |
|
|
|
|
|
|
$ |
(16.2 |
) |
|
|
|
|
|
|
|
|
(1) Strategic
reorganization and other charges includes expenses associated with
the Albertville tragedy and restructuring activities. |
(2) The Company
recorded a charge of $4.5 million in connection with its warranty
obligations. |
(3) The Company
does not allocate interest, income taxes or pension amounts other
than service to its segments. |
Mueller Water Products (NYSE:MWA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Mueller Water Products (NYSE:MWA)
Gráfica de Acción Histórica
De May 2023 a May 2024