Mueller Water Products Reports 2024 Second Quarter Results
Mueller Water Products, Inc. reported a 6.2% increase in net sales to $353.4 million for the second quarter of 2024. The company achieved record adjusted net income per diluted share of $0.30 and raised its annual guidance for net sales and adjusted EBITDA. Additionally, there was an update on the leadership team and board refreshment. The CEO expressed confidence in the company's ability to continue its progress despite external uncertainties.
Net sales increased by 6.2% to $353.4 million in the second quarter of 2024.
Adjusted net income per diluted share reached a record $0.30.
The company raised its annual guidance for net sales and adjusted EBITDA.
Operational efficiencies led to the highest quarterly gross margin in over seven years.
Strong performance in the first half of the fiscal year contributed to the positive outlook.
The net sales for Water Management Solutions decreased by 16.0% in the second quarter.
There were increased costs associated with inflation and strategic reorganization.
Lower volumes across most product lines impacted the operating income for Water Management Solutions.
Increased Net Sales 6.2 percent to
Reported Net Income per Diluted Share of
Achieved Record Adjusted Net Income per Diluted Share of
Raises Annual Guidance for Net Sales and Adjusted EBITDA
Company Also Today Announced Update on Leadership Team and Board Refreshment
ATLANTA, May 06, 2024 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA) announced financial results for its 2024 second quarter ended March 31, 2024.
In the second quarter of 2024, the Company:
- Delivered net sales of
$353.4 million , a 6.2 percent increase as compared with$332.9 million in the prior year quarter - Reported operating income of
$63.5 million as compared with$32.9 million in the prior year quarter and increased adjusted operating income 98.5 percent to$66.7 million as compared with$33.6 million in the prior year quarter - Reported operating margin of 18.0 percent as compared with 9.9 percent in the prior year quarter and increased adjusted operating margin to 18.9 percent as compared with 10.1 percent in the prior year quarter
- Reported net income of
$44.3 million as compared with$21.3 million in the prior year quarter, with net income margin of 12.5 percent as compared with 6.4 percent in the prior year quarter, and increased adjusted net income 112.4 percent to$46.3 million as compared with$21.8 million in the prior year quarter - Reported net income per diluted share of
$0.28 as compared with$0.14 in the prior year quarter and increased adjusted net income per diluted share 114.3 percent to$0.30 as compared with$0.14 in the prior year quarter - Increased adjusted EBITDA 70.9 percent to
$82.2 million as compared with$48.1 million in the prior year quarter and improved adjusted EBITDA margin to 23.3 percent as compared with 14.4 percent in the prior year quarter - Increased net cash provided by operating activities for the six-month period by
$84.4 million to$62.2 million as compared with net cash used in operating activities of$22.2 million in the prior year period and increased free cash flow for the six-month period by$89.1 million to$46.4 million as compared with$(42.7) million in the prior year period - Repurchased
$10.0 million of common stock
“We had a fantastic second quarter reflecting the progress our teams have made executing our operational and commercial initiatives to deliver long-term sustainable growth. We achieved record quarterly net sales with a strong sequential increase in volumes supported by our continued enhancements in customer experience. Our ongoing manufacturing and supply chain efficiencies drove significant improvement in margins, leading to our highest quarterly gross margin in more than seven years and record quarterly earnings,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
“We are increasing our annual guidance for net sales and adjusted EBITDA, reflecting our strong first-half performance and order activity across most product lines. We believe overall end market demand is healthy. Our updated expectations reflect improved operational performance with a significant year-over-year increase in consolidated gross margin leading to a 420 basis points expansion in adjusted EBITDA margin, at the midpoint of our annual guidance range.”
“I am grateful for our talented and committed employees who are doing incredible work focusing on serving our customers and driving manufacturing, material and freight efficiencies, while also executing on our large capital projects. Looking forward, I am excited about what we’ve accomplished so far this year, especially given the uncertainties in the external environment. There is still work ahead of us. I am confident in our ability to continue our progress as we look to leverage our leading market positions and investments to deliver more consistent execution and drive future sales and margin growth,” Ms. Zakas concluded.
Consolidated Results
Net sales for the 2024 second quarter increased
Operating income for the second quarter increased
During the quarter, the Company incurred
Adjusted operating income increased
Net income increased
Adjusted EBITDA of
Segment Results
Water Flow Solutions
Net sales for the 2024 second quarter increased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Water Management Solutions
Net sales for the 2024 second quarter decreased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Interest Expense, Net
Interest expense, net, for the 2024 second quarter was
Income Taxes
For the 2024 second quarter, income tax expense was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the six-month period increased by
During the quarter, the Company invested
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the six-month period increased by
As of March 31, 2024, Mueller Water Products had
Fiscal 2024 Outlook
The Company is increasing expectations for fiscal 2024 consolidated net sales to be between flat and down 2 percent as compared with the prior fiscal year (
The Company’s expectations for certain additional financial metrics for fiscal 2024 are as follows:
- Total SG&A expenses between
$248 million and$252 million - Net interest expense between
$13 million and$14 million - Effective income tax rate between 22 percent and 24 percent
- Depreciation and amortization between
$65 million and$66 million - Pension expense other than service of approximately
$4 million - Capital expenditures between
$40 million and$45 million
Update on Leadership Team and Board Refreshment
In a separately issued press release, the Company announced that Martie Edmunds Zakas has been appointed Chief Executive Officer. Paul McAndrew, Chief Operating Officer, has been promoted to President. The Company also announced that Christian Garcia joined the Mueller Board of Directors as a Board observer and will serve in this capacity until later this year when he is expected to be appointed as a Board Director. Additionally, as previously disclosed, Brian Healy, initially appointed to the Board as an observer, was elected in February 2024. The press release is available on the Investor Relations section of the Company’s website.
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place Tuesday, May 7, 2024, 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, download and install any necessary software. A replay of the call will be available for 30 days and can be accessed by dialing 1-866-360-8712. 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.
Adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures that the Company presents 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.
Net debt and net debt leverage are non-GAAP measures that the Company presents as liquidity measures because management uses them to evaluate its capital management and financial position, and the investment community commonly uses them as measures of indebtedness. Free cash flow is a non-GAAP liquidity measure used 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 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 of Directors 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, including, without limitation, legal, reputational, audit and financial risks resulting from previously reported cybersecurity incidents and possible future cybersecurity incidents, the effectiveness of the Company’s business continuity plans related thereto, and the Company’s ability to recover under its cybersecurity insurance policies; logistical challenges and supply chain disruptions, geopolitical conditions, including the Israel-Hamas war, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; 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 reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, including executive officers, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against further 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 higher interest rates; the impact of warranty charges and claims, and related accommodations; the strength of our brands and reputation; 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 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.
Investor Relations Contact: Whit Kincaid
770-206-4116
wkincaid@muellerwp.com
Media Contact: Jenny Barabas
470-806-5771
jbarabas@muellerwp.com
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
| March 31, | September 30, | ||||||
| 2024 | 2023 | ||||||
| (in millions, except share amounts) | |||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 179.2 | $ | 160.3 | |||
| Receivables, net of allowance for credit losses of | 229.7 | 217.1 | |||||
| Inventories, net | 307.3 | 297.9 | |||||
| Other current assets | 32.4 | 31.5 | |||||
| Total current assets | 748.6 | 706.8 | |||||
| Property, plant and equipment, net | 309.1 | 311.7 | |||||
| Intangible assets, net | 322.3 | 334.0 | |||||
| Goodwill, net | 97.0 | 93.7 | |||||
| Other noncurrent assets | 62.4 | 58.8 | |||||
| Total assets | $ | 1,539.4 | $ | 1,505.0 | |||
| Liabilities and stockholders’ equity: | |||||||
| Current portion of long-term debt | $ | 0.7 | $ | 0.7 | |||
| Accounts payable | 96.7 | 102.9 | |||||
| Other current liabilities | 114.9 | 115.2 | |||||
| Total current liabilities | 212.3 | 218.8 | |||||
| Long-term debt | 448.0 | 446.7 | |||||
| Deferred income taxes | 64.7 | 73.8 | |||||
| Other noncurrent liabilities | 59.9 | 54.2 | |||||
| Total liabilities | 784.9 | 793.5 | |||||
| Commitments and contingencies | |||||||
| Preferred stock: par value outstanding at March 31, 2024, and September 30, 2023 | — | — | |||||
| Common stock: par value 155,681,228 and 155,871,932 shares outstanding at March 31, 2024, and September 30, 2023, respectively | 1.6 | 1.6 | |||||
| Additional paid-in capital | 1,214.7 | 1,240.4 | |||||
| Accumulated deficit | (423.2 | ) | (481.8 | ) | |||
| Accumulated other comprehensive loss | (38.6 | ) | (48.7 | ) | |||
| Total stockholders' equity | 754.5 | 711.5 | |||||
| Total liabilities and stockholders' equity | $ | 1,539.4 | $ | 1,505.0 | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||
| Three months ended | Six months ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (in millions, except per share amounts) | ||||||||||||
| Net sales | $ | 353.4 | $ | 332.9 | $ | 609.8 | $ | 647.7 | ||||
| Cost of sales | 223.0 | 235.1 | 393.1 | 456.7 | ||||||||
| Gross profit | 130.4 | 97.8 | 216.7 | 191.0 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 63.7 | 64.2 | 120.6 | 127.1 | ||||||||
| Strategic reorganization and other charges (benefits) (1) | 3.2 | 0.7 | 9.8 | (3.0 | ) | |||||||
| Total operating expenses | 66.9 | 64.9 | 130.4 | 124.1 | ||||||||
| Operating income | 63.5 | 32.9 | 86.3 | 66.9 | ||||||||
| Pension expense other than service | 1.0 | 1.0 | 2.0 | 1.9 | ||||||||
| Interest expense, net | 3.6 | 3.9 | 6.9 | 7.6 | ||||||||
| Other expense (2) | — | — | 1.6 | — | ||||||||
| Income before income taxes | 58.9 | 28.0 | 75.8 | 57.4 | ||||||||
| Income tax expense (2) | 14.6 | 6.7 | 17.2 | 13.6 | ||||||||
| Net income | $ | 44.3 | $ | 21.3 | $ | 58.6 | $ | 43.8 | ||||
| Net income per basic share | $ | 0.28 | $ | 0.14 | $ | 0.38 | $ | 0.28 | ||||
| Net income per diluted share | $ | 0.28 | $ | 0.14 | $ | 0.37 | $ | 0.28 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 156.0 | 156.3 | 156.0 | 157.9 | ||||||||
| Diluted | 156.7 | 156.9 | 156.6 | 158.5 | ||||||||
| Dividends declared per share | $ | 0.064 | $ | 0.061 | $ | 0.128 | $ | 0.122 | ||||
| (1) For the three-month period ended March 31, 2024, the Company recorded approximately | ||||||||||||
| (2) For the six-month period ended March 31, 2024, the Company recorded | ||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| Six months ended | |||||||
| March 31, | |||||||
| 2024 | 2023 | ||||||
| (in millions) | |||||||
| Operating activities: | |||||||
| Net income | $ | 58.6 | $ | 43.8 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
| Depreciation | 19.2 | 16.3 | |||||
| Amortization | 13.7 | 14.0 | |||||
| Loss (gain) on sale of assets | 0.4 | (3.7 | ) | ||||
| Stock-based compensation | 4.5 | 4.2 | |||||
| Pension cost | 2.3 | 2.2 | |||||
| Deferred income taxes | (9.9 | ) | 0.1 | ||||
| Inventory reserve provision | 5.4 | 1.7 | |||||
| Other, net | 0.3 | 0.6 | |||||
| Changes in assets and liabilities: | |||||||
| Receivables, net | (12.4 | ) | (0.9 | ) | |||
| Inventories | (14.6 | ) | (44.5 | ) | |||
| Other assets | (3.9 | ) | (1.9 | ) | |||
| Accounts payable | (6.3 | ) | (19.3 | ) | |||
| Other current liabilities | (0.6 | ) | (30.9 | ) | |||
| Other noncurrent liabilities | 5.5 | (3.9 | ) | ||||
| Net cash provided by (used in) operating activities | 62.2 | (22.2 | ) | ||||
| Investing activities: | |||||||
| Capital expenditures | (15.8 | ) | (20.5 | ) | |||
| Proceeds from sale of assets | 0.1 | 5.1 | |||||
| Net cash used in investing activities | (15.7 | ) | (15.4 | ) | |||
| Financing activities: | |||||||
| Dividends paid | (20.0 | ) | (19.0 | ) | |||
| Common stock repurchased under buyback program | (10.0 | ) | — | ||||
| Employee taxes related to stock-based compensation | (1.6 | ) | (1.5 | ) | |||
| Common stock issued | 1.5 | 1.0 | |||||
| Debt issuance costs | (0.8 | ) | — | ||||
| Payments for finance lease obligations | (0.5 | ) | (0.6 | ) | |||
| Net cash used in financing activities | (31.4 | ) | (20.1 | ) | |||
| Effect of currency exchange rate changes on cash | 3.8 | 0.4 | |||||
| Net change in cash and cash equivalents | 18.9 | (57.3 | ) | ||||
| Cash and cash equivalents at beginning of period | 160.3 | 146.5 | |||||
| Cash and cash equivalents at end of period | $ | 179.2 | $ | 89.2 | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended March 31, 2024 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 205.8 | $ | 147.6 | $ | — | $ | 353.4 | |||||||
| Gross profit | $ | 77.2 | $ | 53.2 | $ | — | $ | 130.4 | |||||||
| Selling, general and administrative expenses | 24.6 | 24.2 | 14.9 | 63.7 | |||||||||||
| Strategic reorganization and other charges (1) | — | — | 3.2 | 3.2 | |||||||||||
| Operating income (loss) | $ | 52.6 | $ | 29.0 | $ | (18.1 | ) | $ | 63.5 | ||||||
| Operating margin | 25.6 | % | 19.6 | % | 18.0 | % | |||||||||
| Capital expenditures | $ | 6.0 | $ | 4.1 | $ | — | $ | 10.1 | |||||||
| Net income | $ | 44.3 | |||||||||||||
| Net income margin | 12.5 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 44.3 | |||||||||||||
| Strategic reorganization and other charges (1) | 3.2 | ||||||||||||||
| Income tax expense of adjusting items (2) | (1.2 | ) | |||||||||||||
| Adjusted net income | $ | 46.3 | |||||||||||||
| Weighted average diluted shares outstanding | 156.7 | ||||||||||||||
| Net income per diluted share | $ | 0.28 | |||||||||||||
| Strategic reorganization and other charges (1) | 0.02 | ||||||||||||||
| Income tax expense of adjusting items (2) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.30 | |||||||||||||
| Net income | $ | 44.3 | |||||||||||||
| Income tax expense (3) | 14.6 | ||||||||||||||
| Interest expense, net (3) | 3.6 | ||||||||||||||
| Pension expense other than service (3) | 1.0 | ||||||||||||||
| Operating income (loss) | $ | 52.6 | $ | 29.0 | $ | (18.1 | ) | 63.5 | |||||||
| Strategic reorganization and other charges (1) | — | — | 3.2 | 3.2 | |||||||||||
| Adjusted operating income (loss) | 52.6 | 29.0 | (14.9 | ) | 66.7 | ||||||||||
| Pension expense other than service | — | — | (1.0 | ) | (1.0 | ) | |||||||||
| Depreciation and amortization | 9.8 | 6.7 | — | 16.5 | |||||||||||
| Adjusted EBITDA | $ | 62.4 | $ | 35.7 | $ | (15.9 | ) | $ | 82.2 | ||||||
| Adjusted operating margin | 25.6 | % | 19.6 | % | 18.9 | % | |||||||||
| Adjusted EBITDA margin | 30.3 | % | 24.2 | % | 23.3 | % | |||||||||
| Adjusted EBITDA | $ | 62.4 | $ | 35.7 | $ | (15.9 | ) | $ | 82.2 | ||||||
| Three prior quarters' adjusted EBITDA | 94.2 | 98.8 | (38.4 | ) | 154.6 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 156.6 | $ | 134.5 | $ | (54.3 | ) | $ | 236.8 | ||||||
| Reconciliation of net debt to total debt (end of period): | |||||||||||||||
| Current portion of long term debt | $ | 0.7 | |||||||||||||
| Long-term debt | 448.0 | ||||||||||||||
| Total debt | 448.7 | ||||||||||||||
| Less cash and cash equivalents | 179.2 | ||||||||||||||
| Net debt | $ | 269.5 | |||||||||||||
| Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 1.9 | x | |||||||||||||
| Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 1.1 | x | |||||||||||||
| Reconciliation of free cash flow to net cash used in operating activities: | |||||||||||||||
| Net cash used in operating activities | $ | (5.7 | ) | ||||||||||||
| Less capital expenditures | 10.1 | ||||||||||||||
| Free cash flow | $ | (15.8 | ) | ||||||||||||
| (1) The Company recorded approximately | |||||||||||||||
| (2) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended March 31, 2023 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 157.2 | $ | 175.7 | $ | — | $ | 332.9 | |||||||
| Gross profit | $ | 37.2 | $ | 60.6 | $ | — | $ | 97.8 | |||||||
| Selling, general and administrative expenses | 22.0 | 28.7 | 13.5 | 64.2 | |||||||||||
| Strategic reorganization and other charges (1) | — | 0.2 | 0.5 | 0.7 | |||||||||||
| Operating income (loss) | $ | 15.2 | $ | 31.7 | $ | (14.0 | ) | $ | 32.9 | ||||||
| Operating margin | 9.7 | % | 18.0 | % | 9.9 | % | |||||||||
| Capital expenditures | $ | 7.8 | $ | 2.8 | $ | — | $ | 10.6 | |||||||
| Net income | $ | 21.3 | |||||||||||||
| Net income margin | 6.4 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 21.3 | |||||||||||||
| Strategic reorganization and other charges (1) | 0.7 | ||||||||||||||
| Income tax expense of adjusting items (2) | (0.2 | ) | |||||||||||||
| Adjusted net income | $ | 21.8 | |||||||||||||
| Weighted average diluted shares outstanding | 156.9 | ||||||||||||||
| Net income per diluted share | $ | 0.14 | |||||||||||||
| Strategic reorganization and other charges (1) | — | ||||||||||||||
| Income tax expense of adjusting items (2) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.14 | |||||||||||||
| Net income | $ | 21.3 | |||||||||||||
| Income tax expense (3) | 6.7 | ||||||||||||||
| Interest expense, net (3) | 3.9 | ||||||||||||||
| Pension expense other than service (3) | 1.0 | ||||||||||||||
| Operating income (loss) | $ | 15.2 | $ | 31.7 | $ | (14.0 | ) | 32.9 | |||||||
| Strategic reorganization and other charges (1) | — | 0.2 | 0.5 | 0.7 | |||||||||||
| Adjusted operating income (loss) | 15.2 | 31.9 | (13.5 | ) | 33.6 | ||||||||||
| Pension expense other than service (3) | — | — | (1.0 | ) | (1.0 | ) | |||||||||
| Depreciation and amortization | 7.8 | 7.7 | — | 15.5 | |||||||||||
| Adjusted EBITDA | $ | 23.0 | $ | 39.6 | $ | (14.5 | ) | $ | 48.1 | ||||||
| Adjusted operating margin | 9.7 | % | 18.2 | % | 10.1 | % | |||||||||
| Adjusted EBITDA margin | 14.6 | % | 22.5 | % | 14.4 | % | |||||||||
| Adjusted EBITDA | $ | 23.0 | $ | 39.6 | $ | (14.5 | ) | $ | 48.1 | ||||||
| Three prior quarters' adjusted EBITDA | 105.6 | 72.2 | (37.2 | ) | 140.6 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 128.6 | $ | 111.8 | $ | (51.7 | ) | $ | 188.7 | ||||||
| Reconciliation of net debt to total debt (end of period): | |||||||||||||||
| Current portion of long term debt | $ | 0.9 | |||||||||||||
| Long-term debt | 446.6 | ||||||||||||||
| Total debt | 447.5 | ||||||||||||||
| Less cash and cash equivalents | 89.2 | ||||||||||||||
| Net debt | $ | 358.3 | |||||||||||||
| Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 2.4 | x | |||||||||||||
| Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 1.9 | x | |||||||||||||
| Reconciliation of free cash flow to net cash used in operating activities: | |||||||||||||||
| Net cash used in operating activities | $ | (15.7 | ) | ||||||||||||
| Less capital expenditures | 10.6 | ||||||||||||||
| Free cash flow | $ | (26.3 | ) | ||||||||||||
| (1) Strategic reorganization and other charges includes severance and certain transaction-related expenses. | |||||||||||||||
| (2) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Six months ended March 31, 2024 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 347.1 | $ | 262.7 | $ | — | $ | 609.8 | |||||||
| Gross profit | $ | 123.8 | $ | 92.9 | $ | — | $ | 216.7 | |||||||
| Selling, general and administrative expenses | 43.8 | 48.8 | 28.0 | 120.6 | |||||||||||
| Strategic reorganization and other charges (1) | 0.2 | — | 9.6 | 9.8 | |||||||||||
| Operating income (loss) | $ | 79.8 | $ | 44.1 | $ | (37.6 | ) | $ | 86.3 | ||||||
| Operating margin | 23.0 | % | 16.8 | % | 14.2 | % | |||||||||
| Capital expenditures | $ | 9.9 | $ | 5.9 | $ | — | $ | 15.8 | |||||||
| Net income | $ | 58.6 | |||||||||||||
| Net income margin | 9.6 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 58.6 | |||||||||||||
| Strategic reorganization and other charges (1) | 9.8 | ||||||||||||||
| Income tax expense of adjusting items (2) | (2.2 | ) | |||||||||||||
| Adjusted net income | $ | 66.2 | |||||||||||||
| Weighted average diluted shares outstanding | 156.6 | ||||||||||||||
| Net income per diluted share | $ | 0.37 | |||||||||||||
| Strategic reorganization and other charges (1) | 0.06 | ||||||||||||||
| Income tax expense of adjusting items (2) | (0.01 | ) | |||||||||||||
| Adjusted net income per diluted share | $ | 0.42 | |||||||||||||
| Net income | $ | 58.6 | |||||||||||||
| Income tax expense (3) | 17.2 | ||||||||||||||
| Other expense | 1.6 | ||||||||||||||
| Interest expense, net (3) | 6.9 | ||||||||||||||
| Pension expense other than service (3) | 2.0 | ||||||||||||||
| Operating income (loss) | $ | 79.8 | $ | 44.1 | $ | (37.6 | ) | 86.3 | |||||||
| Strategic reorganization and other charges (1) | 0.2 | — | 9.6 | 9.8 | |||||||||||
| Adjusted operating income (loss) | 80.0 | 44.1 | (28.0 | ) | 96.1 | ||||||||||
| Pension expense other than service | — | — | (2.0 | ) | (2.0 | ) | |||||||||
| Depreciation and amortization | 19.1 | 13.7 | 0.1 | 32.9 | |||||||||||
| Adjusted EBITDA | $ | 99.1 | $ | 57.8 | $ | (29.9 | ) | $ | 127.0 | ||||||
| Adjusted operating margin | 23.0 | % | 16.8 | % | 15.8 | % | |||||||||
| Adjusted EBITDA margin | 28.6 | % | 22.0 | % | 20.8 | % | |||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
| Net cash provided by operating activities | $ | 62.2 | |||||||||||||
| Less capital expenditures | 15.8 | ||||||||||||||
| Free cash flow | $ | 46.4 | |||||||||||||
| (1) The Company recorded approximately | |||||||||||||||
| (2) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Six months ended March 31, 2023 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 322.8 | $ | 324.9 | $ | — | $ | 647.7 | |||||||
| Gross profit | $ | 83.8 | $ | 107.2 | $ | — | $ | 191.0 | |||||||
| Selling, general and administrative expenses | 44.4 | 55.7 | 27.0 | 127.1 | |||||||||||
| Strategic reorganization and other charges (benefits) (1) | — | 0.2 | (3.2 | ) | (3.0 | ) | |||||||||
| Operating income (loss) | $ | 39.4 | $ | 51.3 | $ | (23.8 | ) | $ | 66.9 | ||||||
| Operating margin | 12.2 | % | 15.8 | % | 10.3 | % | |||||||||
| Capital expenditures | $ | 15.6 | $ | 4.9 | $ | — | $ | 20.5 | |||||||
| Net income | $ | 43.8 | |||||||||||||
| Net income margin | 6.8 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 43.8 | |||||||||||||
| Strategic reorganization and other charges (benefits) (1) | (3.0 | ) | |||||||||||||
| Income tax benefit of adjusting items (2) | 0.7 | ||||||||||||||
| Adjusted net income | $ | 41.5 | |||||||||||||
| Weighted average diluted shares outstanding | 158.5 | ||||||||||||||
| Net income per diluted share | $ | 0.28 | |||||||||||||
| Strategic reorganization and other charges (benefits) (1) | (0.02 | ) | |||||||||||||
| Income tax benefit of adjusting items (2) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.26 | |||||||||||||
| Net income | $ | 43.8 | |||||||||||||
| Income tax expense (3) | 13.6 | ||||||||||||||
| Interest expense, net (3) | 7.6 | ||||||||||||||
| Pension expense other than service (3) | 1.9 | ||||||||||||||
| Operating income (loss) | $ | 39.4 | $ | 51.3 | $ | (23.8 | ) | 66.9 | |||||||
| Strategic reorganization and other charges (benefits) (1) | — | 0.2 | (3.2 | ) | (3.0 | ) | |||||||||
| Adjusted operating income (loss) | 39.4 | 51.5 | (27.0 | ) | 63.9 | ||||||||||
| Pension expense other than service | — | — | (1.9 | ) | (1.9 | ) | |||||||||
| Depreciation and amortization | 15.5 | 14.7 | 0.1 | 30.3 | |||||||||||
| Adjusted EBITDA | $ | 54.9 | $ | 66.2 | $ | (28.8 | ) | $ | 92.3 | ||||||
| Adjusted operating margin | 12.2 | % | 15.9 | % | 9.9 | % | |||||||||
| Adjusted EBITDA margin | 17.0 | % | 20.4 | % | 14.3 | % | |||||||||
| Reconciliation of free cash flow to net cash used in operating activities: | |||||||||||||||
| Net cash used in operating activities | $ | (22.2 | ) | ||||||||||||
| Less capital expenditures | 20.5 | ||||||||||||||
| Free cash flow | $ | (42.7 | ) | ||||||||||||
| (1) Strategic reorganization and other benefits relates primarily to a gain from the sale of the Aurora, Illinois facility, partially offset by certain transaction-related expenses. | |||||||||||||||
| (2) The income tax benefit of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||
FAQ
What was Mueller Water Products' net sales in the second quarter of 2024?
What was the adjusted net income per diluted share in the second quarter of 2024?
What guidance did Mueller Water Products raise for net sales and adjusted EBITDA?
Who was appointed as the Chief Executive Officer of Mueller Water Products?
When will Mueller Water Products' quarterly earnings conference call take place?
