Mueller Water Products Reports Fourth Quarter and Full Year 2024 Results
Mueller Water Products (NYSE: MWA) reported strong Q4 and fiscal year 2024 results, with Q4 net sales increasing 15.5% to $348.2 million and full-year sales rising 3.1% to $1.3 billion. Q4 adjusted EBITDA grew 30.9% to $72.5 million with improved margin of 20.8%. Full-year net income reached $115.9 million with EPS of $0.74. The company generated record free cash flow of $191.4 million, up $130 million year-over-year. For fiscal 2025, Mueller expects net sales growth of 1.9-3.4% to $1.34-1.36 billion and adjusted EBITDA of $300-305 million.
Mueller Water Products (NYSE: MWA) ha riportato risultati forti per il quarto trimestre e per l'anno fiscale 2024, con un incremento delle vendite nette del Q4 del 15,5% a $348,2 milioni e un aumento delle vendite annuali del 3,1% a $1,3 miliardi. L'EBITDA rettificato del Q4 è cresciuto del 30,9% a $72,5 milioni, con un margine migliorato del 20,8%. Il reddito netto annuale ha raggiunto $115,9 milioni con un utile per azione di $0,74. L'azienda ha generato un flusso di cassa libero record di $191,4 milioni, in aumento di $130 milioni rispetto all'anno precedente. Per l'anno fiscale 2025, Mueller prevede una crescita delle vendite nette dell'1,9-3,4% a $1,34-1,36 miliardi e un EBITDA rettificato di $300-305 milioni.
Mueller Water Products (NYSE: MWA) informó resultados sólidos para el cuarto trimestre y el año fiscal 2024, con un aumento del 15,5% en las ventas netas del Q4 a $348,2 millones y un incremento del 3,1% en las ventas anuales a $1,3 mil millones. El EBITDA ajustado del Q4 creció un 30,9% a $72,5 millones, con un margen mejorado del 20,8%. El ingreso neto del año alcanzó $115,9 millones con una ganancia por acción de $0,74. La compañía generó un flujo de caja libre récord de $191,4 millones, un aumento de $130 millones en comparación con el año anterior. Para el año fiscal 2025, Mueller espera un crecimiento de las ventas netas del 1,9-3,4% a $1,34-1,36 mil millones y un EBITDA ajustado de $300-305 millones.
Mueller Water Products (NYSE: MWA)는 2024 회계년도 4분기 및 전체 실적이 강세를 보였으며, 4분기 순매출이 15.5% 증가한 3억 4820만 달러로, 연간 매출은 3.1% 증가한 13억 달러에 도달했다고 보고했습니다. 4분기 조정 EBITDA는 30.9% 성장하여 7250만 달러로, 개선된 마진은 20.8%입니다. 연간 순이익은 1억 1590만 달러에 달하며 주당순이익(EPS)은 0.74달러입니다. 회사는 1억 9140만 달러의 기록적인 자유 현금 흐름을 생성했으며, 이는 전년 대비 1억 3000만 달러 증가한 것입니다. 2025 회계년도에 대해 Mueller는 1.9-3.4%의 순매출 성장을 13억 4000만-13억 6000만 달러로 예상하며 조정 EBITDA는 3억-3억 500만 달러로 예상하고 있습니다.
Mueller Water Products (NYSE: MWA) a annoncé de bons résultats pour le quatrième trimestre et l’exercice 2024, avec des ventes nettes du Q4 augmentant de 15,5 % pour atteindre 348,2 millions de dollars et des ventes annuelles en hausse de 3,1 % à 1,3 milliard de dollars. L’EBITDA ajusté du Q4 a crû de 30,9 % pour s’établir à 72,5 millions de dollars, avec une marge améliorée de 20,8 %. Le revenu net annuel a atteint 115,9 millions de dollars avec un BPA de 0,74 $. L’entreprise a généré un flux de trésorerie libre record de 191,4 millions de dollars, soit une augmentation de 130 millions de dollars par rapport à l’année précédente. Pour l’exercice 2025, Mueller prévoit une croissance des ventes nettes de 1,9 à 3,4 % pour atteindre entre 1,34 et 1,36 milliard de dollars, ainsi qu’un EBITDA ajusté de 300 à 305 millions de dollars.
Mueller Water Products (NYSE: MWA) berichtete über starke Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024, mit einem Anstieg der Nettoumsätze im Q4 um 15,5 % auf 348,2 Millionen Dollar und einem Anstieg des Jahresumsatzes um 3,1 % auf 1,3 Milliarden Dollar. Das angepasste EBITDA im Q4 wuchs um 30,9 % auf 72,5 Millionen Dollar, mit einer verbesserten Marge von 20,8 %. Der Nettogewinn für das gesamte Jahr erreichte 115,9 Millionen Dollar, mit einem Gewinn pro Aktie von 0,74 Dollar. Das Unternehmen generierte einen Rekordfreibetrag von 191,4 Millionen Dollar, was einem Anstieg von 130 Millionen Dollar im Jahresvergleich entspricht. Für das Geschäftsjahr 2025 erwartet Mueller ein Wachstum der Nettoumsätze von 1,9-3,4 % auf 1,34-1,36 Milliarden Dollar und ein angepasstes EBITDA von 300-305 Millionen Dollar.
- Q4 net sales increased 15.5% to $348.2 million
- Full-year adjusted EBITDA grew 40.9% to $284.7 million
- Free cash flow increased by $130 million to $191.4 million
- Gross margin improved by over 500 basis points year-over-year
- Strong balance sheet with net debt leverage ratio of 0.5x
- Q4 net income decreased to $10.0 million from $17.2 million year-over-year
- Q4 operating margin declined to 8.2% from 8.3% year-over-year
- Q4 effective tax rate increased significantly to 59.0% from 16.9%
- $16.3 million non-cash goodwill impairment charge in Q4
Insights
The Q4 and FY2024 results show strong performance with several positive indicators. Net sales increased 15.5% to
Key highlights include:
- Record free cash flow of
$191.4 million , up$130 million year-over-year - Strong balance sheet with net debt leverage ratio of just 0.5x
- Healthy
500 basis point improvement in gross margin
The FY2025 guidance suggests continued growth with revenue projected between
Mueller Water Products is well-positioned to capitalize on critical infrastructure trends. The aging North American water infrastructure and federal infrastructure bill funding create substantial long-term growth opportunities, particularly in lead service line replacement projects.
Operational improvements are noteworthy:
- Manufacturing and supply chain efficiencies driving margin expansion
- Strategic closure of legacy brass foundry expected to yield benefits
- Strong order levels indicating healthy end-market demand
The company's focus on water infrastructure modernization aligns with increasing regulatory requirements and environmental concerns. Their product innovation strategy and service improvements should help capture market share in this growing sector.
Achieved Net Sales of
Earned Net Income per Diluted Share of
Reported Adjusted Net Income per Diluted Share of
Generated Adjusted EBITDA of
ATLANTA, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA) today announced financial results for its fourth quarter and fiscal year ended September 30, 2024.
In the fourth quarter, the Company:
- Increased net sales 15.5 percent to
$348.2 million as compared with$301.4 million in the prior year quarter - Reported operating income of
$28.4 million as compared with$24.9 million in the prior year quarter and increased adjusted operating income 41.6 percent to$56.5 million as compared with$39.9 million in the prior year quarter - Reported operating margin of 8.2 percent as compared with 8.3 percent in the prior year quarter and increased adjusted operating margin to 16.2 percent as compared with 13.2 percent in the prior year quarter
- Generated net income of
$10.0 million as compared with$17.2 million in the prior year quarter, with net income margin of 2.9 percent as compared with 5.7 percent in the prior year quarter, and increased adjusted net income 14.1 percent to$33.9 million as compared with$29.7 million in the prior year quarter - Reported net income per diluted share of
$0.06 as compared with$0.11 in the prior year quarter and increased adjusted net income per diluted share 15.8 percent to$0.22 as compared with$0.19 in the prior year quarter - Increased adjusted EBITDA 30.9 percent to
$72.5 million as compared with$55.4 million in the prior year quarter and improved adjusted EBITDA margin to 20.8 percent as compared with 18.4 percent in the prior year quarter
In the fiscal year, the Company:
- Increased net sales 3.1 percent to
$1,314.7 million as compared with the prior year of$1,275.7 million - Reported operating income of
$181.7 million as compared with$127.4 million in the prior year and increased adjusted operating income 55.3 percent to$222.5 million as compared with$143.3 million in the prior year - Reported operating margin of 13.8 percent as compared with 10.0 percent in the prior year and increased adjusted operating margin to 16.9 percent as compared with 11.2 percent in the prior year
- Generated net income of
$115.9 million as compared with$85.5 million in the prior year, with net income margin of 8.8 percent as compared with 6.7 percent in the prior year, and increased adjusted net income 53.3 percent to$150.2 million as compared with$98.0 million in the prior year - Reported net income per diluted share of
$0.74 as compared with$0.55 in the prior year, and increased adjusted net income per diluted share 52.4 percent to$0.96 as compared with$0.63 in the prior year - Increased adjusted EBITDA 40.9 percent to
$284.7 million as compared with$202.1 million in the prior year, resulting in adjusted EBITDA margin of 21.7 percent as compared with 15.8 percent in the prior year - Increased net cash provided by operating activities
$129.8 million to$238.8 million as compared with$109.0 million in the prior year and increased free cash flow$130.0 million to$191.4 million as compared with$61.4 million in the prior year - Returned
$49.9 million to shareholders through dividends and common stock repurchases
“We delivered a strong fourth quarter with healthy order levels supported by steady end market demand and focused customer service. We achieved record fourth quarter net sales and adjusted EBITDA, which exceeded our expectations and continued to expand margins through increased volumes, consistent operational execution and disciplined SG&A spending,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
“We achieved record annual net sales and margins in fiscal 2024, despite a challenging external environment, with more than a 500 basis point year-over-year improvement in our gross margin driven by significant manufacturing, material and freight efficiencies along with favorable price/cost. We also achieved record cash generation for the year with free cash flow increasing
“Entering our fiscal 2025, we expect to deliver continued net sales growth and margin improvement, supported by manufacturing performance, including anticipated benefits from the closure of our legacy brass foundry along with operational and supply chain efficiencies. We will continue to invest in our operations and return cash to shareholders through share repurchases and our quarterly dividend, which was recently increased for the tenth time since 2014. We are well-positioned to benefit from the investments needed to address the aging North American water infrastructure and the incremental spending associated with the federal infrastructure bill, including lead service line replacement projects. Our teams remain focused on executing key strategies to drive operational improvements, capturing the benefits from favorable long-term end market growth trends through product innovation and service,” Ms. Zakas concluded.
Consolidated Results
Net sales for the 2024 fourth quarter increased
Operating income increased
During the quarter, the Company incurred
Adjusted operating income increased
Net income was
Adjusted EBITDA of
Segment Results
Water Flow Solutions
Net sales for the 2024 fourth quarter increased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Water Management Solutions
Net sales for the 2024 fourth quarter increased
Operating income was
Adjusted EBITDA of
Interest Expense, Net
Interest expense, net, for the 2024 fourth quarter and fiscal year decreased to
Income Taxes
For the 2024 fourth quarter, income tax expense was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the fiscal year increased
During the fiscal year, the Company invested
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the fiscal year increased
As of September 30, 2024, Mueller Water Products had
Fiscal 2025 Outlook
The Company is introducing its fiscal 2025 consolidated net sales guidance to be between
The Company anticipates its fiscal 2025 adjusted EBITDA to be between
The Company’s expectations for certain additional financial metrics for fiscal 2025 are as follows:
- Total SG&A expenses between
$236 million and$240 million - Net interest expense between
$11 million and$12 million - Effective income tax rate between 25 percent and 27 percent
- Depreciation and amortization between
$43 million and$45 million * - Capital expenditures between
$45 million and$50 million - Pension benefit other than service of approximately
$0.2 million
* In 2025, annual amortization expense will decrease by approximately
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place Thursday, November 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), 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, 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 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, risks resulting from possible future cybersecurity incidents, 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 goals and commitments in environmental and sustainability programs; 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 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) | |||||||
September 30, | September 30, | ||||||
2024 | 2023 | ||||||
(in millions, except share amounts) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 309.9 | $ | 160.3 | |||
Receivables, net of allowance for credit losses of | 208.9 | 217.1 | |||||
Inventories, net | 301.7 | 297.9 | |||||
Other current assets | 37.9 | 31.5 | |||||
Total current assets | 858.4 | 706.8 | |||||
Property, plant and equipment, net | 318.8 | 311.7 | |||||
Intangible assets, net | 309.7 | 334.0 | |||||
Goodwill, net | 80.7 | 93.7 | |||||
Other noncurrent assets | 68.3 | 58.8 | |||||
Total assets | $ | 1,635.9 | $ | 1,505.0 | |||
Liabilities and stockholders’ equity: | |||||||
Current portion of long-term debt | $ | 0.8 | $ | 0.7 | |||
Accounts payable | 109.9 | 102.9 | |||||
Other current liabilities | 147.3 | 115.2 | |||||
Total current liabilities | 258.0 | 218.8 | |||||
Long-term debt | 448.7 | 446.7 | |||||
Deferred income taxes | 55.4 | 73.8 | |||||
Other noncurrent liabilities | 63.7 | 54.2 | |||||
Total liabilities | 825.8 | 793.5 | |||||
Commitments and contingencies | |||||||
Preferred stock: par value | |||||||
at September 30, 2024 and 2023 | — | — | |||||
Common stock: par value | |||||||
155,871,932 shares outstanding at September 30, 2024 and 2023, respectively | 1.6 | 1.6 | |||||
Additional paid-in capital | 1,205.2 | 1,240.4 | |||||
Accumulated deficit | (365.9 | ) | (481.8 | ) | |||
Accumulated other comprehensive loss | (30.8 | ) | (48.7 | ) | |||
Total stockholders’ equity | 810.1 | 711.5 | |||||
Total liabilities and stockholders’ equity | $ | 1,635.9 | $ | 1,505.0 | |||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
Three months ended | Year ended | ||||||||||
September 30, | September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
(in millions, except per share amounts) | |||||||||||
Net sales | $ | 348.2 | $ | 301.4 | $ | 1,314.7 | $ | 1,275.7 | |||
Cost of sales(1) | 237.3 | 213.0 | 855.7 | 896.2 | |||||||
Gross profit | 110.9 | 88.4 | 459.0 | 379.5 | |||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 63.1 | 54.2 | 245.2 | 241.9 | |||||||
Strategic reorganization and other charges(2) | 3.1 | 9.3 | 15.8 | 10.2 | |||||||
Goodwill impairment | 16.3 | — | 16.3 | — | |||||||
Total operating expenses | 82.5 | 63.5 | 277.3 | 252.1 | |||||||
Operating income | 28.4 | 24.9 | 181.7 | 127.4 | |||||||
Pension expense other than service | 1.0 | 0.9 | 4.0 | 3.7 | |||||||
Interest expense, net | 3.0 | 3.3 | 12.7 | 14.7 | |||||||
Other expense(3) | — | — | 1.6 | — | |||||||
Income before income taxes | 24.4 | 20.7 | 163.4 | 109.0 | |||||||
Income tax expense | 14.4 | 3.5 | 47.5 | 23.5 | |||||||
Net income | $ | 10.0 | $ | 17.2 | $ | 115.9 | $ | 85.5 | |||
Net income per basic share | $ | 0.06 | $ | 0.11 | $ | 0.74 | $ | 0.55 | |||
Net income per diluted share | $ | 0.06 | $ | 0.11 | $ | 0.74 | $ | 0.55 | |||
Weighted average shares outstanding: | |||||||||||
Basic | 156.0 | 156.3 | 155.9 | 156.3 | |||||||
Diluted | 157.5 | 157.0 | 156.9 | 156.8 | |||||||
Dividends declared per share | $ | 0.064 | $ | 0.061 | $ | 0.256 | $ | 0.244 | |||
(1) For the years ended September 30, 2024 and 2023, the Company recorded charges of | |||||||||||
(2) For the year ended September 30, 2024, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, non-cash asset impairment, cybersecurity incidents expense, and severance. For the year ended September 30, 2023, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, severance, and certain transaction-related expenses. | |||||||||||
(3) For the year ended September 30, 2024, the Company recorded | |||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
Year ended | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
(in millions) | |||||||
Operating activities: | |||||||
Net income | $ | 115.9 | $ | 85.5 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 39.1 | 34.4 | |||||
Amortization | 27.1 | 28.1 | |||||
Goodwill impairment | 16.3 | — | |||||
Non-cash asset impairment | 1.8 | — | |||||
Gain on sale of assets | 0.5 | (4.0 | ) | ||||
Stock-based compensation | 9.0 | 8.5 | |||||
Pension cost | 4.6 | 4.4 | |||||
Deferred income taxes | (21.5 | ) | (14.4 | ) | |||
Inventory reserve provision | 4.5 | 0.4 | |||||
Other, net | 1.0 | 0.9 | |||||
Changes in assets and liabilities: | |||||||
Receivables, net | 8.4 | 10.9 | |||||
Inventories | (8.0 | ) | (19.9 | ) | |||
Other assets | (7.7 | ) | (3.3 | ) | |||
Accounts payable | 6.8 | (19.7 | ) | ||||
Other current liabilities | 31.7 | (2.0 | ) | ||||
Other noncurrent liabilities | 9.3 | (0.8 | ) | ||||
Net cash provided by operating activities | 238.8 | 109.0 | |||||
Investing activities: | |||||||
Capital expenditures | (47.4 | ) | (47.6 | ) | |||
Proceeds from sales of assets | 0.2 | 5.5 | |||||
Net cash used in investing activities | (47.2 | ) | (42.1 | ) | |||
Financing activities: | |||||||
Dividends paid | (39.9 | ) | (38.1 | ) | |||
Stock repurchased under buyback program | (10.0 | ) | (10.0 | ) | |||
Employee taxes related to stock-based compensation | (2.0 | ) | (2.3 | ) | |||
Common stock issued | 7.7 | 2.7 | |||||
Debt issuance costs | (0.9 | ) | — | ||||
Payments for finance lease obligations | (0.9 | ) | (1.1 | ) | |||
Net cash used in financing activities | (46.0 | ) | (48.8 | ) | |||
Effect of currency exchange rate changes on cash | 4.0 | (4.3 | ) | ||||
Net change in cash and cash equivalents | 149.6 | 13.8 | |||||
Cash and cash equivalents at beginning of year | 160.3 | 146.5 | |||||
Cash and cash equivalents at end of year | $ | 309.9 | $ | 160.3 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | 10.0 | $ | 15.1 | |||
Cash paid for income taxes | $ | 74.4 | $ | 37.7 |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Quarter ended September 30, 2024 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 200.3 | $ | 147.9 | $ | — | $ | 348.2 | |||||||
Gross profit(1) | $ | 66.2 | $ | 44.7 | $ | — | $ | 110.9 | |||||||
Selling, general and administrative expenses | 24.6 | 23.6 | 14.9 | 63.1 | |||||||||||
Strategic reorganization and other charges(2) | — | 0.4 | 2.7 | 3.1 | |||||||||||
Goodwill impairment | — | 16.3 | — | 16.3 | |||||||||||
Operating income (loss) | $ | 41.6 | $ | 4.4 | $ | (17.6 | ) | $ | 28.4 | ||||||
Operating margin | 20.8 | % | 3.0 | % | 8.2 | % | |||||||||
Capital expenditures | $ | 15.0 | $ | 4.4 | $ | — | $ | 19.4 | |||||||
Net income | $ | 10.0 | |||||||||||||
Net income margin | 2.9 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 10.0 | |||||||||||||
Warranty charge(1) | 8.7 | ||||||||||||||
Strategic reorganization and other charges(2) | 3.1 | ||||||||||||||
Goodwill impairment | 16.3 | ||||||||||||||
Income tax expense of adjusting items(3) | (4.2 | ) | |||||||||||||
Adjusted net income | $ | 33.9 | |||||||||||||
Weighted average diluted shares outstanding | 157.5 | ||||||||||||||
Net income per diluted share | $ | 0.06 | |||||||||||||
Warranty charge per diluted share | 0.06 | ||||||||||||||
Strategic reorganization and other charges per diluted share | 0.02 | ||||||||||||||
Goodwill impairment per diluted share | 0.10 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.02 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.22 | |||||||||||||
Net income | $ | 10.0 | |||||||||||||
Income tax expense(4) | 14.4 | ||||||||||||||
Interest expense, net(4) | 3.0 | ||||||||||||||
Pension expense other than service(4) | 1.0 | ||||||||||||||
Operating income (loss) | $ | 41.6 | $ | 4.4 | $ | (17.6 | ) | 28.4 | |||||||
Warranty charge(1) | — | 8.7 | — | 8.7 | |||||||||||
Strategic reorganization and other charges(2) | — | 0.4 | 2.7 | 3.1 | |||||||||||
Goodwill impairment | — | 16.3 | — | 16.3 | |||||||||||
Adjusted operating income (loss) | 41.6 | 29.8 | (14.9 | ) | 56.5 | ||||||||||
Pension expense other than service(4) | — | — | (1.0 | ) | (1.0 | ) | |||||||||
Depreciation and amortization | 10.1 | 6.9 | — | 17.0 | |||||||||||
Adjusted EBITDA | $ | 51.7 | $ | 36.7 | $ | (15.9 | ) | $ | 72.5 | ||||||
Adjusted operating margin | 20.8 | % | 20.1 | % | 16.2 | % | |||||||||
Adjusted EBITDA margin | 25.8 | % | 24.8 | % | 20.8 | % | |||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 89.3 | |||||||||||||
Less capital expenditures | 19.4 | ||||||||||||||
Free cash flow | $ | 69.9 | |||||||||||||
(1) Gross profit includes a charge of | |||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, and non-cash asset impairment. | |||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
(4) The Company does not allocate interest, income taxes or pension expense other than service to its segments. | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Quarter ended September 30, 2023 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 161.5 | $ | 139.9 | $ | — | $ | 301.4 | |||||||
Gross profit(1) | $ | 47.5 | $ | 40.9 | $ | — | $ | 88.4 | |||||||
Selling, general and administrative expenses | 20.0 | 24.7 | 9.5 | 54.2 | |||||||||||
Strategic reorganization and other (benefits) charges(2) | (0.1 | ) | 0.5 | 8.9 | 9.3 | ||||||||||
Operating income (loss) | $ | 27.6 | $ | 15.7 | $ | (18.4 | ) | $ | 24.9 | ||||||
Operating margin | 17.1 | % | 11.2 | % | 8.3 | % | |||||||||
Capital expenditures | $ | 10.3 | $ | 4.9 | $ | — | $ | 15.2 | |||||||
Net income | $ | 17.2 | |||||||||||||
Net income margin | 5.7 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 17.2 | |||||||||||||
Warranty charge(1) | 5.7 | ||||||||||||||
Strategic reorganization and other charges(2) | 9.3 | ||||||||||||||
Income tax expense of adjusting items(3) | (2.5 | ) | |||||||||||||
Adjusted net income | $ | 29.7 | |||||||||||||
Weighted average diluted shares outstanding | 157.0 | ||||||||||||||
Net income per diluted share | $ | 0.11 | |||||||||||||
Warranty charge per diluted share | 0.04 | ||||||||||||||
Strategic reorganization and other charges per diluted share | 0.06 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.02 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.19 | |||||||||||||
Net income | $ | 17.2 | |||||||||||||
Income tax expense(4) | 3.5 | ||||||||||||||
Interest expense, net(4) | 3.3 | ||||||||||||||
Pension expense other than service(4) | 0.9 | ||||||||||||||
Operating income (loss) | $ | 27.6 | $ | 15.7 | $ | (18.4 | ) | 24.9 | |||||||
Warranty charge(1) | — | 5.7 | — | 5.7 | |||||||||||
Strategic reorganization and other (benefits) charges(2) | (0.1 | ) | 0.5 | 8.9 | 9.3 | ||||||||||
Adjusted operating income (loss) | 27.5 | 21.9 | (9.5 | ) | 39.9 | ||||||||||
Pension expense other than service(4) | — | — | (0.9 | ) | (0.9 | ) | |||||||||
Depreciation and amortization | 9.1 | 7.2 | 0.1 | 16.4 | |||||||||||
Adjusted EBITDA | $ | 36.6 | $ | 29.1 | $ | (10.3 | ) | $ | 55.4 | ||||||
Adjusted operating margin | 17.0 | % | 15.7 | % | 13.2 | % | |||||||||
Adjusted EBITDA margin | 22.7 | % | 20.8 | % | 18.4 | % | |||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 56.5 | |||||||||||||
Less capital expenditures | 15.2 | ||||||||||||||
Free cash flow | $ | 41.3 | |||||||||||||
(1) Gross profit includes a charge of | |||||||||||||||
(2) Strategic reorganization and other (benefits) charges primarily relate to expenses associated with our leadership transition and severance. | |||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
(4) The Company does not allocate interest, income taxes or pension expense other than service to its segments. | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Year ended September 30, 2024 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 755.5 | $ | 559.2 | $ | — | $ | 1,314.7 | |||||||
Gross profit(1) | $ | 271.9 | $ | 187.1 | $ | — | $ | 459.0 | |||||||
Selling, general and administrative expenses | 92.5 | 95.0 | 57.7 | 245.2 | |||||||||||
Strategic reorganization and other charges(2) | 0.2 | 1.8 | 13.8 | 15.8 | |||||||||||
Goodwill impairment | — | 16.3 | — | 16.3 | |||||||||||
Operating income (loss) | $ | 179.2 | $ | 74.0 | $ | (71.5 | ) | $ | 181.7 | ||||||
Operating margin | 23.7 | % | 13.2 | % | 13.8 | % | |||||||||
Capital expenditures | $ | 31.1 | $ | 16.3 | $ | — | $ | 47.4 | |||||||
Net income | $ | 115.9 | |||||||||||||
Net income margin | 8.8 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 115.9 | |||||||||||||
Warranty charge(1) | 8.7 | ||||||||||||||
Strategic reorganization and other charges(2) | 15.8 | ||||||||||||||
Goodwill impairment | 16.3 | ||||||||||||||
Income tax expense of adjusting items(3) | (6.5 | ) | |||||||||||||
Adjusted net income | $ | 150.2 | |||||||||||||
Weighted average diluted shares outstanding | 156.9 | ||||||||||||||
Net income per diluted share | $ | 0.74 | |||||||||||||
Warranty charge per diluted share | 0.06 | ||||||||||||||
Strategic reorganization and other charges per diluted share | 0.10 | ||||||||||||||
Goodwill impairment per diluted share | 0.10 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.04 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.96 | |||||||||||||
Net income | $ | 115.9 | |||||||||||||
Income tax expense(4) | 47.5 | ||||||||||||||
Other expense | 1.6 | ||||||||||||||
Interest expense, net(4) | 12.7 | ||||||||||||||
Pension expense other than service(4) | 4.0 | ||||||||||||||
Operating income (loss) | $ | 179.2 | $ | 74.0 | $ | (71.5 | ) | 181.7 | |||||||
Warranty charge(1) | — | 8.7 | — | 8.7 | |||||||||||
Strategic reorganization and other charges(2) | 0.2 | 1.8 | 13.8 | 15.8 | |||||||||||
Goodwill impairment | — | 16.3 | — | 16.3 | |||||||||||
Adjusted operating income (loss) | 179.4 | 100.8 | (57.7 | ) | 222.5 | ||||||||||
Pension expense other than service(4) | — | — | (4.0 | ) | (4.0 | ) | |||||||||
Depreciation and amortization | 38.3 | 27.7 | 0.2 | 66.2 | |||||||||||
Adjusted EBITDA | $ | 217.7 | $ | 128.5 | $ | (61.5 | ) | $ | 284.7 | ||||||
Adjusted operating margin | 23.7 | % | 18.0 | % | 16.9 | % | |||||||||
Adjusted EBITDA margin | 28.8 | % | 23.0 | % | 21.7 | % | |||||||||
Reconciliation of net debt to total debt (end of period): | |||||||||||||||
Current portion of long-term debt | $ | 0.8 | |||||||||||||
Long-term debt | 448.7 | ||||||||||||||
Total debt | $ | 449.5 | |||||||||||||
Less cash and cash equivalents | 309.9 | ||||||||||||||
Net debt | $ | 139.6 | |||||||||||||
Debt leverage (debt divided by trailing twelve months’ adjusted EBITDA) | 1.6x | ||||||||||||||
Net debt leverage (net debt divided by trailing twelve months’ adjusted EBITDA) | 0.5x | ||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 238.8 | |||||||||||||
Less capital expenditures | 47.4 | ||||||||||||||
Free cash flow | $ | 191.4 | |||||||||||||
(1) Gross profit includes a charge of | |||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, non-cash asset impairment, cybersecurity incidents expense and severance. | |||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
(4) The Company does not allocate interest, income taxes or pension expense other than service to its segments. | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Year ended September 30, 2023 | |||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 634.4 | $ | 641.3 | $ | — | $ | 1,275.7 | |||||||
Gross profit(1) | $ | 164.9 | $ | 214.6 | $ | — | $ | 379.5 | |||||||
Selling, general and administrative expenses | 85.3 | 106.9 | 49.7 | 241.9 | |||||||||||
Strategic reorganization and other charges(2) | — | 1.7 | 8.5 | 10.2 | |||||||||||
Operating income (loss) | $ | 79.6 | $ | 106.0 | $ | (58.2 | ) | $ | 127.4 | ||||||
Operating margin | 12.5 | % | 16.5 | % | 10.0 | % | |||||||||
Capital expenditures | $ | 33.4 | $ | 14.2 | $ | — | $ | 47.6 | |||||||
Net income | $ | 85.5 | |||||||||||||
Net income margin | 6.7 | % | |||||||||||||
Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
Net income | $ | 85.5 | |||||||||||||
Warranty charge(1) | 5.7 | ||||||||||||||
Strategic reorganization and other charges(2) | 10.2 | ||||||||||||||
Income tax expense of adjusting items(3) | (3.4 | ) | |||||||||||||
Adjusted net income | $ | 98.0 | |||||||||||||
Weighted average diluted shares outstanding | 156.8 | ||||||||||||||
Net income per diluted share | $ | 0.55 | |||||||||||||
Warranty charge per diluted share | 0.04 | ||||||||||||||
Strategic reorganization and other charges per diluted share | 0.07 | ||||||||||||||
Income tax expense of adjusting items per diluted share | (0.03 | ) | |||||||||||||
Adjusted net income per diluted share | $ | 0.63 | |||||||||||||
Net income | $ | 85.5 | |||||||||||||
Income tax expense(4) | 23.5 | ||||||||||||||
Interest expense, net(4) | 14.7 | ||||||||||||||
Pension expense other than service(4) | 3.7 | ||||||||||||||
Operating income (loss) | $ | 79.6 | $ | 106.0 | $ | (58.2 | ) | 127.4 | |||||||
Warranty charge(1) | — | 5.7 | — | 5.7 | |||||||||||
Strategic reorganization and other charges(2) | — | 1.7 | 8.5 | 10.2 | |||||||||||
Adjusted operating income (loss) | 79.6 | 113.4 | (49.7 | ) | 143.3 | ||||||||||
Pension expense other than service(4) | — | — | (3.7 | ) | (3.7 | ) | |||||||||
Depreciation and amortization | 32.8 | 29.5 | 0.2 | 62.5 | |||||||||||
Adjusted EBITDA | $ | 112.4 | $ | 142.9 | $ | (53.2 | ) | $ | 202.1 | ||||||
Adjusted operating margin | 12.5 | % | 17.7 | % | 11.2 | % | |||||||||
Adjusted EBITDA margin | 17.7 | % | 22.3 | % | 15.8 | % | |||||||||
Reconciliation of net debt to total debt (end of period): | |||||||||||||||
Current portion of long-term debt | $ | 0.7 | |||||||||||||
Long-term debt | 446.7 | ||||||||||||||
Total debt | 447.4 | ||||||||||||||
Less cash and cash equivalents | 160.3 | ||||||||||||||
Net debt | $ | 287.1 | |||||||||||||
Debt leverage (debt divided by trailing twelve months’ adjusted EBITDA) | 2.2x | ||||||||||||||
Net debt leverage (net debt divided by trailing twelve months’ adjusted EBITDA) | 1.4x | ||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 109.0 | |||||||||||||
Less capital expenditures | 47.6 | ||||||||||||||
Free cash flow | $ | 61.4 | |||||||||||||
(1) Gross profit includes a charge of | |||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, other restructuring charges related to severance in addition to certain transaction-related expenses. | |||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
(4) The Company does not allocate interest, income taxes or pension expense other than service to its segments. |
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