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 21% adjusted EBITDA
margin. We are on track to achieve record annual results and,
accordingly, are updating our guidance for 2024 net sales and
adjusted EBITDA. While the external environment remains dynamic, we
believe overall end market demand will remain resilient in the
months ahead and we are confident in our teams’ ability to execute
effectively and efficiently as we move into 2025.”
“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 $30.1 million, or
9.2 percent, to $356.7 million as compared with $326.6 million in
the prior year quarter primarily due to increased volumes at Water
Flow Solutions and higher pricing across most product lines,
partially offset by lower volumes at Water Management
Solutions.
Operating income for the third quarter increased $31.4 million,
or 88.2 percent, to $67.0 million as compared with $35.6 million in
the prior year quarter. Benefits from favorable manufacturing
performance, increased volumes and favorable price/cost were
partially offset by the impacts of the Israel-Hamas war at Water
Management Solutions. Operating margin for the third quarter was
18.8 percent as compared with 10.9 percent in the prior year
quarter.
During the quarter, the Company incurred $2.9 million of
strategic reorganization and other charges, which have been
excluded from adjusted results, primarily related to our leadership
transition, severance and certain transaction-related expenses, as
well as a non-cash asset impairment at Water Management
Solutions.
Adjusted operating income increased $30.4 million, or 77.0
percent, to $69.9 million as compared with $39.5 million in the
prior year quarter. Adjusted operating margin improved to 19.6
percent as compared with 12.1 percent in the prior year
quarter.
Net income increased $22.8 million, or 93.1 percent, to $47.3
million as compared with $24.5 million in the prior year quarter.
Net income margin improved to 13.3 percent as compared with 7.5
percent in the prior year quarter. Adjusted net income increased
$21.9 million, or 79.3 percent, to $49.5 million as compared with
$27.6 million in the prior year quarter.
Adjusted EBITDA of $85.2 million increased $30.8 million, or
56.6 percent, as compared with $54.4 million in the prior year
quarter. Adjusted EBITDA margin improved to 23.9 percent as
compared with 16.7 percent in the prior year quarter.
Segment Results
Water Flow Solutions
Net sales for the 2024 third quarter increased $58.0 million, or
38.6 percent, to $208.1 million as compared with $150.1 million in
the prior year quarter primarily due to higher volumes of iron gate
valves as well as higher pricing across most product lines.
Operating income and adjusted operating income were both $57.8
million for the quarter. Adjusted operating income increased $45.1
million, or 355.1 percent, compared with the prior year quarter.
Benefits from favorable manufacturing performance, increased
volumes and favorable price/cost more than offset higher SG&A
expenses. Operating margin and adjusted operating margin were both
27.8 percent as compared with 8.4 percent and 8.5 percent for
operating margin and adjusted operating margin, respectively, in
the prior year quarter.
Adjusted EBITDA of $66.9 million increased $46.0 million, or
220.1 percent, as compared with $20.9 million in the prior year
quarter. Adjusted EBITDA margin was 32.1 percent as compared with
13.9 percent in the prior year quarter.
Water Management Solutions
Net sales for the 2024 third quarter decreased $27.9 million, or
15.8 percent, to $148.6 million as compared with $176.5 million in
the prior year quarter primarily due to lower volumes, partially
offset by higher pricing across most product lines.
Operating income and adjusted operating income were $25.5
million and $26.9 million, respectively, for the third quarter.
Adjusted operating income decreased $13.1 million, or 32.8 percent,
compared with the prior year quarter. Benefits from lower SG&A
expenses and favorable price/cost were more than offset by lower
volumes and the impacts of the Israel-Hamas war. Operating margin
and adjusted operating margin were 17.2 percent and 18.1 percent,
respectively, as compared with the prior year quarter operating
margin of 22.1 percent and adjusted operating margin of 22.7
percent.
Adjusted EBITDA of $34.0 million decreased $13.6 million, or
28.6 percent, as compared with $47.6 million in the prior year
quarter. Adjusted EBITDA margin was 22.9 percent as compared with
27.0 percent in the prior year quarter.
Interest Expense, Net
Interest expense, net, for the 2024 third quarter was $2.8
million as compared with $3.8 million in the prior year quarter,
primarily as a result of higher interest income.
Income Taxes
For the 2024 third quarter, income tax expense was $15.9
million, or 25.2 percent of income before tax, as compared with
$6.4 million in the prior year quarter, or 20.7 percent of income
before tax.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month
period ended June 30, 2024, increased by $97.0 million to
$149.5 million as compared with $52.5 million in the prior year
period. The increase was primarily driven by higher net income and
improvements in working capital compared with the prior year
nine-month period.
For the nine-month period, the Company invested $28.0 million in
capital expenditures as compared with $32.4 million in the prior
year period.
Free cash flow (defined as net cash provided by operating
activities less capital expenditures) for the nine-month period
increased by $101.4 million to $121.5 million as compared with
$20.1 million in the prior year period, primarily due to the
increase in net cash provided by operating activities.
As of June 30, 2024, Mueller Water Products had $448.9
million of total debt outstanding and $243.3 million of cash and
cash equivalents, resulting in a debt leverage ratio of 1.7 times
and net debt leverage ratio of 0.8 times. We did not have any
borrowings under our ABL Agreement at quarter end, nor did we
borrow any amounts under our ABL during the quarter. There are no
maturities on the Company’s debt financings until June 2029, and
its 4.0 percent Senior Notes have no financial maintenance
covenants.
Fiscal 2024 Outlook
The Company is increasing its expectations for fiscal 2024
consolidated net sales to be between $1,285 million and $1,295
million, or an increase of 0.7% to 1.5% compared with fiscal 2023.
The Company is also increasing its expectations for fiscal 2024
adjusted EBITDA to be between $271 million and $275 million, or an
increase of 34.1% to 36.1% compared with fiscal 2023. The Company
expects free cash flow as a percentage of adjusted net income to be
more than 85 percent in fiscal 2024.
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
Kincaid770-206-4116wkincaid@muellerwp.com
Media Contact: Jenny
Barabas470-806-5771jbarabas@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 $7.9 million and
$7.3 million |
|
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 $0.01 per share; 60,000,000 shares
authorized; none |
|
|
|
|
|
|
|
outstanding at June 30, 2024, and September 30, 2023 |
|
— |
|
|
|
— |
|
Common stock: par value $0.01 per share; 600,000,000 shares
authorized; |
|
|
|
|
|
|
|
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 $2.9 million in Strategic reorganization and other
charges associated with non-cash asset impairment, our leadership
transition, severance and certain transaction-related expenses. For
the nine-month period ended June 30, 2024, the Company recorded
approximately $12.7 million in Strategic reorganization and other
charges associated with our leadership transition, certain
transaction-related expenses, cybersecurity incidents expense,
non-cash asset impairment and severance. For the three-month period
ended June 30, 2023, the Company recorded approximately $3.9
million in Strategic reorganization and other charges associated
with severance and certain transaction-related expenses. For the
nine-month period ended June 30, 2023, the Company recorded
approximately $0.9 million in Strategic reorganization and other
charges associated with severance and certain transaction-related
expenses, partially offset by a gain from the sale of our facility
in Aurora, Illinois. |
(2) For the
nine-month period ended June 30, 2024, the Company recorded $1.6
million in Other expense for the release of an indemnification
receivable related to an uncertain tax position that expired on
December 31, 2023. This was offset as a $1.6 million benefit within
income tax expense. |
|
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 FlowSolutions |
|
Water ManagementSolutions |
|
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
25.2% and may be subject to rounding. |
(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 FlowSolutions |
|
WaterManagementSolutions |
|
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
20.7% and may be subject to rounding. |
(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 FlowSolutions |
|
WaterManagementSolutions |
|
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
23.8% and may be subject to rounding. |
(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 FlowSolutions |
|
WaterManagementSolutions |
|
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
22.7% and may be subject to rounding. |
(3) The Company
does not allocate interest, income taxes or pension amounts other
than service to its segments. |
Mueller Water Products (NYSE:MWA)
過去 株価チャート
から 9 2024 まで 10 2024
Mueller Water Products (NYSE:MWA)
過去 株価チャート
から 10 2023 まで 10 2024