Mueller Water Products Reports 2024 Third Quarter Results
Mueller Water Products (NYSE: MWA) reported strong Q3 2024 results, with net sales increasing 9.2% to $356.7 million. The company achieved record adjusted net income per diluted share of $0.32, up 77.8% year-over-year. Adjusted EBITDA rose 56.6% to $85.2 million, with margin improving to 23.9%. Key highlights include:
- Operating income increased 88.2% to $67.0 million
- Net income grew 93.1% to $47.3 million
- Free cash flow for the nine-month period improved by $101.4 million to $121.5 million
Based on strong performance, Mueller Water Products raised its fiscal 2024 guidance for net sales and adjusted EBITDA. The company expects to benefit from investments in aging water infrastructure and federal infrastructure spending.
Mueller Water Products (NYSE: MWA) ha registrato risultati forti per il terzo trimestre del 2024, con un aumento delle vendite nette del 9,2%, raggiungendo i 356,7 milioni di dollari. L'azienda ha conseguito un reddito netto rettificato per azione diluita record di 0,32 dollari, in aumento del 77,8% rispetto all'anno precedente. L'EBITDA rettificato è aumentato del 56,6% a 85,2 milioni di dollari, con un margine che migliora al 23,9%. I punti salienti includono:
- Il reddito operativo è aumentato dell'88,2% a 67,0 milioni di dollari
- Il reddito netto è cresciuto del 93,1% a 47,3 milioni di dollari
- Il flusso di cassa libero per il periodo di nove mesi è migliorato di 101,4 milioni di dollari, raggiungendo 121,5 milioni di dollari
Grazie a una performance forte, Mueller Water Products ha alzato le previsioni per il 2024 riguardo le vendite nette e l'EBITDA rettificato. L'azienda prevede di beneficiare degli investimenti nelle infrastrutture idriche obsolete e della spesa infrastrutturale federale.
Mueller Water Products (NYSE: MWA) reportó resultados sólidos en el tercer trimestre de 2024, con un aumento del 9.2% en las ventas netas, alcanzando los 356.7 millones de dólares. La compañía logró un ingreso neto ajustado por acción diluida récord de 0.32 dólares, un incremento del 77.8% en comparación anual. El EBITDA ajustado creció un 56.6% a 85.2 millones de dólares, con un margen que mejora al 23.9%. Los aspectos destacados incluyen:
- El ingreso operativo aumentó un 88.2% a 67.0 millones de dólares
- El ingreso neto creció un 93.1% a 47.3 millones de dólares
- El flujo de caja libre para el período de nueve meses mejoró en 101.4 millones de dólares, alcanzando 121.5 millones de dólares
Basado en un desempeño sólido, Mueller Water Products ha elevado su guía fiscal 2024 para las ventas netas y el EBITDA ajustado. La compañía espera beneficiarse de las inversiones en infraestructura hídrica envejecida y el gasto en infraestructura federal.
Mueller Water Products (NYSE: MWA)는 2024년 3분기 강력한 실적을 발표했으며, 순매출이 9.2% 증가하여 3억 5,670만 달러에 달했습니다. 이 회사는 희석 주당 순조정 소득이 0.32달러로 기록적인 증가율인 77.8% 상승했습니다. 조정된 EBITDA는 56.6% 증가하여 8,520만 달러에 이르렀고, 마진은 23.9%로 개선되었습니다. 주요 하이라이트는 다음과 같습니다:
- 운영 소득이 88.2% 증가하여 6,700만 달러 도달
- 순소득이 93.1% 증가하여 4,730만 달러 도달
- 아홉 개월 동안의 자유 현금 흐름이 1억 1,140만 달러 개선되어 1억 2,150만 달러에 도달
강력한 성과를 바탕으로 Mueller Water Products는 2024 회계연도 매출 및 조정 EBITDA 지침을 상향 조정했습니다. 이 회사는 노후한 수도 인프라에 대한 투자와 연방 인프라 지출로부터 혜택을 볼 것으로 예상하고 있습니다.
Mueller Water Products (NYSE: MWA) a annoncé de bons résultats pour le troisième trimestre 2024, avec une augmentation des ventes nettes de 9,2 % à 356,7 millions de dollars. L'entreprise a réalisé un revenu net ajusté par action diluée record de 0,32 dollar, en hausse de 77,8 % par rapport à l'année précédente. L'EBITDA ajusté a augmenté de 56,6 % pour atteindre 85,2 millions de dollars, avec une marge améliorée à 23,9 %. Les points forts incluent :
- Le revenu d'exploitation a augmenté de 88,2 % pour atteindre 67,0 millions de dollars
- Le revenu net a crû de 93,1 % à 47,3 millions de dollars
- Le flux de trésorerie libre pour la période de neuf mois s'est amélioré de 101,4 millions de dollars pour atteindre 121,5 millions de dollars
En raison de cette solide performance, Mueller Water Products a rehaussé ses prévisions pour l'exercice 2024 concernant les ventes nettes et l'EBITDA ajusté. L'entreprise prévoit de bénéficier des investissements dans les infrastructures hydrauliques vieillissantes et des dépenses d'infrastructure fédérale.
Mueller Water Products (NYSE: MWA) berichtete starke Ergebnisse für das dritte Quartal 2024, mit einem Anstieg des Nettoumsatzes um 9,2% auf 356,7 Millionen US-Dollar. Das Unternehmen erzielte einen rekordverdächtigen bereinigten Nettogewinn pro verwässerter Aktie von 0,32 US-Dollar, was einem Anstieg von 77,8% im Vergleich zum Vorjahr entspricht. Das bereinigte EBITDA stieg um 56,6% auf 85,2 Millionen US-Dollar, wobei die Marge auf 23,9% anstieg. Wichtige Highlights sind:
- Das Betriebsergebnis stieg um 88,2% auf 67,0 Millionen US-Dollar
- Der Nettogewinn wuchs um 93,1% auf 47,3 Millionen US-Dollar
- Der freie Cashflow für den Zeitraum von neun Monaten verbesserte sich um 101,4 Millionen US-Dollar auf 121,5 Millionen US-Dollar
Basierend auf der starken Leistung hat Mueller Water Products die Prognose für das Geschäftsjahr 2024 angehoben bezüglich Nettoumsatz und bereinigtem EBITDA. Das Unternehmen erwartet, von Investitionen in die alternde Wasserinfrastruktur und den staatlichen Infrastrukturinvestitionen zu profitieren.
- Net sales increased 9.2% to $356.7 million in Q3 2024
- Adjusted net income per diluted share grew 77.8% to a record $0.32
- Adjusted EBITDA rose 56.6% to $85.2 million with margin improving to 23.9%
- Operating income increased 88.2% to $67.0 million
- Net income grew 93.1% to $47.3 million
- Free cash flow for the nine-month period improved by $101.4 million to $121.5 million
- Company raised fiscal 2024 guidance for net sales and adjusted EBITDA
- Water Management Solutions segment saw net sales decrease 15.8% to $148.6 million
- Impacts from the Israel-Hamas war affected Water Management Solutions performance
Insights
Mueller Water Products' Q3 2024 results are impressively strong, showing significant growth across key metrics. Net sales increased
The Water Flow Solutions segment was the star performer, with a
With a strong balance sheet showing
Mueller Water Products' robust performance indicates a resilient demand in the water infrastructure sector. The company's ability to increase prices across most product lines suggests strong pricing power, likely driven by the critical nature of its products in addressing aging water infrastructure.
The mention of lead service line replacement projects and benefits from the federal infrastructure bill points to significant long-term growth opportunities. This aligns with the broader trend of increased investment in upgrading water systems across North America.
However, the divergence between segments highlights potential market shifts. The strong performance in Water Flow Solutions, particularly in iron gate valves, may indicate a focus on large-scale infrastructure projects. Conversely, the challenges in Water Management Solutions could signal some softening in certain end-markets or regional disparities.
Overall, Mueller's results and outlook suggest a favorable market environment for water infrastructure companies, with potential for sustained growth driven by regulatory and infrastructure spending initiatives.
Increased Net Sales 9.2 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
ATLANTA, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA) announced financial results for its 2024 third quarter ended June 30, 2024.
In the third quarter of 2024, the Company:
- Delivered net sales of
$356.7 million , a 9.2 percent increase as compared with$326.6 million in the prior year quarter - Reported operating income of
$67.0 million as compared with$35.6 million in the prior year quarter and increased adjusted operating income 77.0 percent to$69.9 million as compared with$39.5 million in the prior year quarter - Reported operating margin of 18.8 percent as compared with 10.9 percent in the prior year quarter and increased adjusted operating margin to 19.6 percent as compared with 12.1 percent in the prior year quarter
- Reported net income of
$47.3 million as compared with$24.5 million in the prior year quarter, with net income margin of 13.3 percent as compared with 7.5 percent in the prior year quarter, and increased adjusted net income 79.3 percent to$49.5 million as compared with$27.6 million in the prior year quarter - Reported net income per diluted share of
$0.30 as compared with$0.16 in the prior year quarter and increased adjusted net income per diluted share 77.8 percent to$0.32 as compared with$0.18 in the prior year quarter - Increased adjusted EBITDA 56.6 percent to
$85.2 million as compared with$54.4 million in the prior year quarter and improved adjusted EBITDA margin to 23.9 percent as compared with 16.7 percent in the prior year quarter - Increased net cash provided by operating activities for the nine-month period by
$97.0 million to$149.5 million as compared with$52.5 million in the prior year period - Increased free cash flow for the nine-month period by
$101.4 million to$121.5 million as compared with$20.1 million in the prior year period
“We are pleased to report a record third quarter that exceeded our expectations. We experienced healthy order levels supported by steady end market demand. Strong execution from our commercial and operational teams, including ongoing benefits from manufacturing and supply chain efficiencies, and disciplined SG&A spending helped drive records for quarterly earnings and adjusted EBITDA,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
“I am highly encouraged by the progress our teams have achieved this year based on their unrelenting focus on customer service and operational efficiency. A testament to our operational progress is the improvement in adjusted EBITDA for the latest twelve months which reached a record level with more than a
“We are moving forward with confidence and strength with leading brands, improving manufacturing operations, a large installed base and strong channel and end customer relationships. As we look ahead, we are well-positioned to benefit from the investment to address the aging North American water infrastructure and the incremental spending associated with the federal infrastructure bill, including lead service line replacement projects. With the ramp-up of our new brass foundry close to completion and our improved execution, we are confident that we can continue to grow sales and expand margins,” Ms. Zakas concluded.
Consolidated Results
Net sales for the 2024 third quarter increased
Operating income for the third 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 third quarter increased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Water Management Solutions
Net sales for the 2024 third quarter decreased
Operating income and adjusted operating income were
Adjusted EBITDA of
Interest Expense, Net
Interest expense, net, for the 2024 third quarter was
Income Taxes
For the 2024 third quarter, income tax expense was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month period ended June 30, 2024, increased by
For the nine-month period, the Company invested
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the nine-month period increased by
As of June 30, 2024, Mueller Water Products had
Fiscal 2024 Outlook
The Company is increasing its expectations for fiscal 2024 consolidated net sales to be between
The Company’s expectations for certain additional financial metrics for fiscal 2024 are as follows:
- Total SG&A expenses between
$248 million and$250 million - Net interest expense between
$12 million and$13 million - Effective income tax rate of approximately 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
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place Tuesday, August 6, 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 1-800-813-5525. 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), corporate restructuring and non-cash asset impairment, 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) | |||||||
June 30, | September 30, | ||||||
2024 | 2023 | ||||||
(in millions, except share amounts) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 243.3 | $ | 160.3 | |||
Receivables, net of allowance for credit losses of | 213.2 | 217.1 | |||||
Inventories, net | 293.8 | 297.9 | |||||
Other current assets | 35.2 | 31.5 | |||||
Total current assets | 785.5 | 706.8 | |||||
Property, plant and equipment, net | 309.8 | 311.7 | |||||
Intangible assets, net | 315.4 | 334.0 | |||||
Goodwill, net | 95.5 | 93.7 | |||||
Other noncurrent assets | 62.4 | 58.8 | |||||
Total assets | $ | 1,568.6 | $ | 1,505.0 | |||
Liabilities and stockholders’ equity: | |||||||
Current portion of long-term debt | $ | 0.7 | $ | 0.7 | |||
Accounts payable | 85.7 | 102.9 | |||||
Other current liabilities | 126.0 | 115.2 | |||||
Total current liabilities | 212.4 | 218.8 | |||||
Long-term debt | 448.2 | 446.7 | |||||
Deferred income taxes | 56.0 | 73.8 | |||||
Other noncurrent liabilities | 60.4 | 54.2 | |||||
Total liabilities | 777.0 | 793.5 | |||||
Commitments and contingencies | |||||||
Preferred stock: par value | |||||||
outstanding at June 30, 2024, and September 30, 2023 | — | — | |||||
Common stock: par value | |||||||
155,765,042 and 155,871,932 shares outstanding at June 30, 2024, and | |||||||
September 30, 2023, respectively | 1.6 | 1.6 | |||||
Additional paid-in capital | 1,208.3 | 1,240.4 | |||||
Accumulated deficit | (375.9 | ) | (481.8 | ) | |||
Accumulated other comprehensive loss | (42.4 | ) | (48.7 | ) | |||
Total stockholders' equity | 791.6 | 711.5 | |||||
Total liabilities and stockholders' equity | $ | 1,568.6 | $ | 1,505.0 | |||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 356.7 | $ | 326.6 | $ | 966.5 | $ | 974.3 | |||||||
Cost of sales | 225.3 | 226.5 | 618.4 | 683.2 | |||||||||||
Gross profit | 131.4 | 100.1 | 348.1 | 291.1 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 61.5 | 60.6 | 182.1 | 187.7 | |||||||||||
Strategic reorganization and other charges (1) | 2.9 | 3.9 | 12.7 | 0.9 | |||||||||||
Total operating expenses | 64.4 | 64.5 | 194.8 | 188.6 | |||||||||||
Operating income | 67.0 | 35.6 | 153.3 | 102.5 | |||||||||||
Pension expense other than service | 1.0 | 0.9 | 3.0 | 2.8 | |||||||||||
Interest expense, net | 2.8 | 3.8 | 9.7 | 11.4 | |||||||||||
Other expense (2) | — | — | 1.6 | — | |||||||||||
Income before income taxes | 63.2 | 30.9 | 139.0 | 88.3 | |||||||||||
Income tax expense (2) | 15.9 | 6.4 | 33.1 | 20.0 | |||||||||||
Net income | $ | 47.3 | $ | 24.5 | $ | 105.9 | $ | 68.3 | |||||||
Net income per basic share | $ | 0.30 | $ | 0.16 | $ | 0.68 | $ | 0.44 | |||||||
Net income per diluted share | $ | 0.30 | $ | 0.16 | $ | 0.68 | $ | 0.44 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 155.7 | 156.4 | 155.9 | 156.2 | |||||||||||
Diluted | 156.7 | 157.2 | 156.6 | 156.8 | |||||||||||
Dividends declared per share | $ | 0.064 | $ | 0.061 | $ | 0.192 | $ | 0.183 | |||||||
(1) For the three-month period ended June 30, 2024, the Company recorded approximately | |||||||||||||||
(2) For the nine-month period ended June 30, 2024, the Company recorded | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
Nine months ended | |||||||
June 30, | |||||||
2024 | 2023 | ||||||
(in millions) | |||||||
Operating activities: | |||||||
Net income | $ | 105.9 | $ | 68.3 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 28.8 | 25.1 | |||||
Amortization | 20.4 | 21.0 | |||||
Non-cash asset impairment | 1.4 | — | |||||
Loss (gain) on sale of assets | 0.4 | (3.7 | ) | ||||
Stock-based compensation | 7.0 | 5.9 | |||||
Pension cost | 3.5 | 3.4 | |||||
Deferred income taxes | (18.6 | ) | (6.7 | ) | |||
Inventory reserve provision | 8.4 | 0.4 | |||||
Other, net | 0.3 | 0.7 | |||||
Changes in assets and liabilities: | |||||||
Receivables, net | 3.8 | 18.2 | |||||
Inventories | (4.6 | ) | (34.1 | ) | |||
Other assets | (6.9 | ) | (2.0 | ) | |||
Accounts payable | (17.2 | ) | (21.8 | ) | |||
Other current liabilities | 10.7 | (19.4 | ) | ||||
Other noncurrent liabilities | 6.2 | (2.8 | ) | ||||
Net cash provided by operating activities | 149.5 | 52.5 | |||||
Investing activities: | |||||||
Capital expenditures | (28.0 | ) | (32.4 | ) | |||
Proceeds from sale of assets | 0.1 | 5.1 | |||||
Net cash used in investing activities | (27.9 | ) | (27.3 | ) | |||
Financing activities: | |||||||
Dividends paid | (29.9 | ) | (28.6 | ) | |||
Common stock repurchased under buyback program | (10.0 | ) | — | ||||
Employee taxes related to stock-based compensation | (1.7 | ) | (1.6 | ) | |||
Common stock issued | 2.5 | 1.9 | |||||
Debt issuance costs | (0.9 | ) | — | ||||
Payments for finance lease obligations | (0.7 | ) | (0.9 | ) | |||
Net cash used in financing activities | (40.7 | ) | (29.2 | ) | |||
Effect of currency exchange rate changes on cash | 2.1 | (1.3 | ) | ||||
Net change in cash and cash equivalents | 83.0 | (5.3 | ) | ||||
Cash and cash equivalents at beginning of period | 160.3 | 146.5 | |||||
Cash and cash equivalents at end of period | $ | 243.3 | $ | 141.2 | |||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||||||||||
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 208.1 | $ | 148.6 | $ | — | $ | 356.7 | |||||||
Gross profit | $ | 81.9 | $ | 49.5 | $ | — | $ | 131.4 | |||||||
Selling, general and administrative expenses | 24.1 | 22.6 | 14.8 | 61.5 | |||||||||||
Strategic reorganization and other charges (1) | — | 1.4 | 1.5 | 2.9 | |||||||||||
Operating income (loss) | $ | 57.8 | $ | 25.5 | $ | (16.3 | ) | $ | 67.0 | ||||||
Operating margin | 27.8 | % | 17.2 | % | 18.8 | % | |||||||||
Capital expenditures | $ | 6.2 | $ | 6.0 | $ | — | $ | 12.2 | |||||||
Net income | $ | 47.3 | |||||||||||||
Net income margin | 13.3 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 47.3 | |||||||||||||
Strategic reorganization and other charges (1) | 2.9 | ||||||||||||||
Income tax expense of adjusting items (2) | (0.7 | ) | |||||||||||||
Adjusted net income | $ | 49.5 | |||||||||||||
Weighted average diluted shares outstanding | 156.7 | ||||||||||||||
Net income per diluted share | $ | 0.30 | |||||||||||||
Strategic reorganization and other charges per diluted share | 0.02 | ||||||||||||||
Income tax expense of adjusting items per diluted share | — | ||||||||||||||
Adjusted net income per diluted share | $ | 0.32 | |||||||||||||
Net income | $ | 47.3 | |||||||||||||
Income tax expense (3) | 15.9 | ||||||||||||||
Interest expense, net (3) | 2.8 | ||||||||||||||
Pension expense other than service (3) | 1.0 | ||||||||||||||
Operating income (loss) | $ | 57.8 | $ | 25.5 | $ | (16.3 | ) | 67.0 | |||||||
Strategic reorganization and other charges (1) | — | 1.4 | 1.5 | 2.9 | |||||||||||
Adjusted operating income (loss) | 57.8 | 26.9 | (14.8 | ) | 69.9 | ||||||||||
Pension expense other than service | — | — | (1.0 | ) | (1.0 | ) | |||||||||
Depreciation and amortization | 9.1 | 7.1 | 0.1 | 16.3 | |||||||||||
Adjusted EBITDA | $ | 66.9 | $ | 34.0 | $ | (15.7 | ) | $ | 85.2 | ||||||
Adjusted operating margin | 27.8 | % | 18.1 | % | 19.6 | % | |||||||||
Adjusted EBITDA margin | 32.1 | % | 22.9 | % | 23.9 | % | |||||||||
Adjusted EBITDA | $ | 66.9 | $ | 34.0 | $ | (15.7 | ) | $ | 85.2 | ||||||
Three prior quarters' adjusted EBITDA | 135.7 | 86.9 | (40.2 | ) | 182.4 | ||||||||||
Trailing twelve months' adjusted EBITDA | $ | 202.6 | $ | 120.9 | $ | (55.9 | ) | $ | 267.6 | ||||||
Reconciliation of net debt to total debt (end of period): | |||||||||||||||
Current portion of long term debt | $ | 0.7 | |||||||||||||
Long-term debt | 448.2 | ||||||||||||||
Total debt | 448.9 | ||||||||||||||
Less cash and cash equivalents | 243.3 | ||||||||||||||
Net debt | $ | 205.6 | |||||||||||||
Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 1.7x | ||||||||||||||
Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 0.8x | ||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 87.3 | |||||||||||||
Less capital expenditures | 12.2 | ||||||||||||||
Free cash flow | $ | 75.1 | |||||||||||||
(1) Strategic reorganization and other charges include non-cash asset impairment, expenses associated with our leadership transition, 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) | |||||||||||||||
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 | |||||||
Net income | $ | 24.5 | |||||||||||||
Net income margin | 7.5 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 24.5 | |||||||||||||
Strategic reorganization and other charges (1) | 3.9 | ||||||||||||||
Income tax expense of adjusting items (2) | (0.8 | ) | |||||||||||||
Adjusted net income | $ | 27.6 | |||||||||||||
Weighted average diluted shares outstanding | 157.2 | ||||||||||||||
Net income per diluted share | $ | 0.16 | |||||||||||||
Strategic reorganization and other charges per diluted share | 0.02 | ||||||||||||||
Income tax expense of adjusting items per diluted share | — | ||||||||||||||
Adjusted net income per diluted share | $ | 0.18 | |||||||||||||
Net income | $ | 24.5 | |||||||||||||
Income tax expense (3) | 6.4 | ||||||||||||||
Interest expense, net (3) | 3.8 | ||||||||||||||
Pension expense other than service (3) | 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 (3) | — | — | (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 | |||||||||||||
Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 2.4x | ||||||||||||||
Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 1.7x | ||||||||||||||
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 include 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) | |||||||||||||||
Nine months ended June 30, 2024 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 555.2 | $ | 411.3 | $ | — | $ | 966.5 | |||||||
Gross profit | $ | 205.7 | $ | 142.4 | $ | — | $ | 348.1 | |||||||
Selling, general and administrative expenses | 67.9 | 71.4 | 42.8 | 182.1 | |||||||||||
Strategic reorganization and other charges (1) | 0.2 | 1.4 | 11.1 | 12.7 | |||||||||||
Operating income (loss) | $ | 137.6 | $ | 69.6 | $ | (53.9 | ) | $ | 153.3 | ||||||
Operating margin | 24.8 | % | 16.9 | % | 15.9 | % | |||||||||
Capital expenditures | $ | 16.1 | $ | 11.9 | $ | — | $ | 28.0 | |||||||
Net income | $ | 105.9 | |||||||||||||
Net income margin | 11.0 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 105.9 | |||||||||||||
Strategic reorganization and other charges (1) | 12.7 | ||||||||||||||
Income tax expense of adjusting items (2) | (3.0 | ) | |||||||||||||
Adjusted net income | $ | 115.6 | |||||||||||||
Weighted average diluted shares outstanding | 156.6 | ||||||||||||||
Net income per diluted share | $ | 0.68 | |||||||||||||
Strategic reorganization and other charges per diluted share | 0.08 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.02 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.74 | |||||||||||||
Net income | $ | 105.9 | |||||||||||||
Income tax expense (3) | 33.1 | ||||||||||||||
Other expense | 1.6 | ||||||||||||||
Interest expense, net (3) | 9.7 | ||||||||||||||
Pension expense other than service (3) | 3.0 | ||||||||||||||
Operating income (loss) | $ | 137.6 | $ | 69.6 | $ | (53.9 | ) | 153.3 | |||||||
Strategic reorganization and other charges (1) | 0.2 | 1.4 | 11.1 | 12.7 | |||||||||||
Adjusted operating income (loss) | 137.8 | 71.0 | (42.8 | ) | 166.0 | ||||||||||
Pension expense other than service | — | — | (3.0 | ) | (3.0 | ) | |||||||||
Depreciation and amortization | 28.2 | 20.8 | 0.2 | 49.2 | |||||||||||
Adjusted EBITDA | $ | 166.0 | $ | 91.8 | $ | (45.6 | ) | $ | 212.2 | ||||||
Adjusted operating margin | 24.8 | % | 17.3 | % | 17.2 | % | |||||||||
Adjusted EBITDA margin | 29.9 | % | 22.3 | % | 22.0 | % | |||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 149.5 | |||||||||||||
Less capital expenditures | 28.0 | ||||||||||||||
Free cash flow | $ | 121.5 | |||||||||||||
(1) Strategic reorganization and other charges include expenses associated with our leadership transition, certain transaction-related expenses, the cybersecurity incidents, non-cash asset impairment and severance. | |||||||||||||||
(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) | |||||||||||||||
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 | |||||||
Net income | $ | 68.3 | |||||||||||||
Net income margin | 7.0 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 68.3 | |||||||||||||
Strategic reorganization and other charges (benefits) (1) | 0.9 | ||||||||||||||
Income tax expense of adjusting items (2) | (0.2 | ) | |||||||||||||
Adjusted net income | $ | 69.0 | |||||||||||||
Weighted average diluted shares outstanding | 156.8 | ||||||||||||||
Net income per diluted share | $ | 0.44 | |||||||||||||
Strategic reorganization and other charges (benefits) per diluted share | 0.01 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.01 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.44 | |||||||||||||
Net income | $ | 68.3 | |||||||||||||
Income tax expense (3) | 20.0 | ||||||||||||||
Interest expense, net (3) | 11.4 | ||||||||||||||
Pension expense other than service (3) | 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 expense 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) include severance and certain transaction-related expenses partially offset by a gain from the sale of our Aurora, Illinois facility. | |||||||||||||||
(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. |
FAQ
What was Mueller Water Products' (MWA) net sales growth in Q3 2024?
How much did Mueller Water Products' (MWA) adjusted net income per diluted share grow in Q3 2024?
What was Mueller Water Products' (MWA) adjusted EBITDA for Q3 2024?