Mueller Water Products, Inc. (NYSE:MWA) announced today that for
its fiscal third quarter ended June 30, 2017, net sales were
$232.2 million and net income was $24.0 million, or $0.15 per
diluted share compared with $0.09 in the prior year quarter.
Operating income from continuing operations was $42.6 million.
In the 2017 third quarter, we:
- Increased net sales 3.3% to $232.2 million as compared with
$224.7 million in the 2016 third quarter;
- Increased adjusted operating income from continuing operations
to $44.6 million as compared with $43.8 million in the 2016 third
quarter; and
- Improved adjusted income from continuing operations to $0.16
per diluted share as compared with $0.15 per diluted share in the
2016 third quarter. Adjusted income from continuing
operations was $25.4 million in the 2017 third quarter and $25.0
million in the 2016 third quarter.
“Overall we are pleased with third quarter net sales growth of
3.3 percent, which was about as we expected, highlighted by 4.5
percent growth at Mueller Co. Additionally, although overall
net sales declined slightly at Mueller Technologies, we experienced
net sales growth with both our AMI products and at Echologics,”
said Scott Hall, president and chief executive officer of Mueller
Water Products. “For our fourth quarter, we expect consolidated net
sales percentage growth to improve year-over-year to mid-single
digits.
“Operationally, in the third quarter we continued to execute on
our productivity plans and realize the resulting targeted cost
savings. However, higher material costs represented
stronger-than-expected headwinds in the quarter, offsetting all of
our productivity gains.
“During the quarter, we also completed our $50 million
accelerated share repurchase program and repurchased an
additional $5 million under our existing share repurchase
authorization.
“All in all, we were pleased with the quarter. Progress in
the market, progress in integrating Singer Valve, and progress in
operational improvements all met our expectations.
“Going forward, we will continue to execute on our initiatives
to drive productivity improvements, accelerate product
development and deliver exceptional value for our customers.”
Consolidated Results
Net sales increased 3.3 percent in the 2017 third quarter to
$232.2 million as compared with $224.7 million for the 2016 third
quarter. Net sales increased due to volume growth at Mueller
Co. and the February acquisition of Singer Valve.
Adjusted operating income from continuing operations increased
1.8 percent to $44.6 million as compared with $43.8 million for the
2016 third quarter. Volume growth, productivity improvements
and lower SG&A expenses were partially offset by higher
material costs.
Segment Results
Mueller Co.
Mueller Co. net sales for the 2017 third quarter increased 4.5
percent to $207.6 million as compared with $198.7 million for the
2016 third quarter. The increase was largely due to volume
growth in both the U.S. and Canada as well as the addition of
Singer Valve.
Mueller Co. operating income increased to $52.9 million in the
2017 third quarter compared with $51.7 million in the 2016 third
quarter. Adjusted operating income was $54.1 million in both
the 2017 third quarter and 2016 third quarter. Adjusted
operating income benefited from volume growth and productivity
improvements, offset by higher material costs. Adjusted
operating margin decreased 110 basis points to 26.1 percent for the
2017 third quarter compared with 27.2 percent for the 2016 third
quarter.
Mueller Technologies
Mueller Technologies net sales decreased $1.4 million to $24.6
million in the 2017 third quarter as compared with $26.0 million
for the 2016 third quarter due to lower shipment volumes.
Higher net sales of AMI and leak detection/condition assessment
products were more than offset by lower net sales of AMR and visual
read meters.
Operating loss was $1.6 million in the 2017 third quarter and
$1.5 million in the 2016 third quarter.
Interest Expense, Net
Net interest expense decreased $0.9 million to $5.1 million in
the 2017 third quarter as compared with $6.0 million in the 2016
third quarter.
Discontinued Operations
Discontinued operations pertain to our former Anvil business,
which we sold in January 2017.
Use of Non-GAAP Measures
In an effort to provide investors with additional information
regarding our results as determined by GAAP, we also provide
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 our
results as reported under GAAP. These non-GAAP measures may
not be comparable to similarly titled measures used by other
companies.
We present adjusted income from continuing operations, adjusted
income from continuing operations per share, adjusted
operating income from continuing operations, adjusted operating
margin, adjusted EBITDA and adjusted EBITDA margin as performance
measures because management uses these measures in evaluating our
underlying performance on a consistent basis across periods and in
making decisions about operational strategies. Management
also believes these measures are frequently used by securities
analysts, investors and other interested parties in the evaluation
of our recurring performance.
We present net debt and net debt leverage as performance
measures because management uses them in evaluating its capital
management, and the investment community commonly uses them as
measures of indebtedness. We present free cash flow because
management believes it is commonly used by the investment community
to measure our ability to create liquidity.
The calculations of these non-GAAP measures and reconciliations
to GAAP results are included as an attachment to this press release
and have been posted online at www.muellerwaterproducts.com.
Conference Call Webcast
Mueller Water Products will conduct its quarterly earnings
conference call on Friday, August 4, 2017 at 9:00 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 our
website. Please go to our 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 1-866-446-5476. An archive of
the webcast will also be available on the Investor Relations
section of our website.
Forward-Looking Statements
This press release contains certain statements that may be
deemed “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. All
statements that address activities, events or developments that we
intend, expect, plan, project, believe or anticipate will or may
occur in the future are forward-looking statements.
Forward-looking statements are based on certain assumptions and
assessments made by us in light of our experience and perception of
historical trends, current conditions and expected future
developments. Examples of forward-looking statements include,
but are not limited to, statements we make regarding our
expectations for growth in our key end markets and financial
results. 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 regional, national
or global political, economic, business, competitive, market and
regulatory conditions and the other factors that are described in
the section entitled “RISK FACTORS” in Item 1A of our most recently
filed Annual Report on Form 10-K. Undue reliance should not
be placed on any forward-looking statements. We do not have
any intention or obligation to update forward-looking statements,
except as required by law.
About Mueller Water Products, Inc.
Mueller Water Products, Inc. (NYSE: MWA) 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, metering products and systems,
leak detection and pipe condition assessment. We help
municipalities increase operational efficiencies, improve customer
service and prioritize capital spending, demonstrating why Mueller
Water Products is Where Intelligence Meets Infrastructure®.
For more information about Mueller Water Products, visit
www.muellerwaterproducts.com.
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED) |
|
|
June 30, |
|
September 30, |
|
2017 |
|
2016 |
|
(in millions, except share
amounts) |
Assets: |
|
|
|
Cash and
cash equivalents |
$ |
353.2 |
|
|
$ |
195.0 |
|
Receivables, net |
140.7 |
|
|
131.8 |
|
Inventories |
141.1 |
|
|
130.7 |
|
Other
current assets |
20.0 |
|
|
12.7 |
|
Current
assets held for sale |
— |
|
|
142.1 |
|
Total
current assets |
655.0 |
|
|
612.3 |
|
Property,
plant and equipment, net |
110.1 |
|
|
108.4 |
|
Intangible assets |
442.0 |
|
|
434.6 |
|
Other
noncurrent assets |
27.1 |
|
|
25.4 |
|
Noncurrent assets held for sale |
— |
|
|
99.9 |
|
Total
assets |
$ |
1,234.2 |
|
|
$ |
1,280.6 |
|
|
|
|
|
Liabilities and
equity: |
|
|
|
Current
portion of long-term debt |
$ |
5.5 |
|
|
$ |
5.6 |
|
Accounts
payable |
58.7 |
|
|
73.7 |
|
Other
current liabilities |
46.9 |
|
|
61.7 |
|
Current
liabilities held for sale |
— |
|
|
44.8 |
|
Total
current liabilities |
111.1 |
|
|
185.8 |
|
Long-term
debt |
475.7 |
|
|
478.8 |
|
Deferred
income taxes |
99.0 |
|
|
109.9 |
|
Other
noncurrent liabilities |
86.1 |
|
|
85.8 |
|
Noncurrent liabilities held for sale |
— |
|
|
0.8 |
|
Total
liabilities |
771.9 |
|
|
861.1 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Common
stock: 600,000,000 shares authorized; 158,514,187 and 161,693,051
shares outstanding at June 30,
2017 and September 30, 2016, respectively |
1.6 |
|
|
1.6 |
|
Additional paid-in capital |
1,497.5 |
|
|
1,563.9 |
|
Accumulated deficit |
(974.9 |
) |
|
(1,078.9 |
) |
Accumulated other comprehensive loss |
(63.0 |
) |
|
(68.3 |
) |
Total
Company stockholders’ equity |
461.2 |
|
|
418.3 |
|
Noncontrolling interest |
1.1 |
|
|
1.2 |
|
Total
equity |
462.3 |
|
|
419.5 |
|
Total
liabilities and equity |
$ |
1,234.2 |
|
|
$ |
1,280.6 |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions, except per share
amounts) |
Net sales |
$ |
232.2 |
|
|
$ |
224.7 |
|
|
$ |
599.1 |
|
|
$ |
585.0 |
|
Cost of sales |
149.7 |
|
|
141.5 |
|
|
412.5 |
|
|
394.9 |
|
Gross
profit |
82.5 |
|
|
83.2 |
|
|
186.6 |
|
|
190.1 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling,
general and administrative |
38.7 |
|
|
39.4 |
|
|
114.2 |
|
|
112.2 |
|
Pension
settlement |
— |
|
|
16.6 |
|
|
— |
|
|
16.6 |
|
Other
charges |
1.2 |
|
|
4.6 |
|
|
5.0 |
|
|
6.2 |
|
Total
operating expenses |
39.9 |
|
|
60.6 |
|
|
119.2 |
|
|
135.0 |
|
Operating
income |
42.6 |
|
|
22.6 |
|
|
67.4 |
|
|
55.1 |
|
Interest expense,
net |
5.1 |
|
|
6.0 |
|
|
17.0 |
|
|
18.0 |
|
Income
before income taxes |
37.5 |
|
|
16.6 |
|
|
50.4 |
|
|
37.1 |
|
Income tax expense |
13.4 |
|
|
5.6 |
|
|
16.2 |
|
|
11.8 |
|
Income
from continuing operations |
24.1 |
|
|
11.0 |
|
|
34.2 |
|
|
25.3 |
|
Income (loss) from
discontinued operations |
(0.1 |
) |
|
4.5 |
|
|
69.8 |
|
|
12.1 |
|
Net
income |
$ |
24.0 |
|
|
$ |
15.5 |
|
|
$ |
104.0 |
|
|
$ |
37.4 |
|
|
|
|
|
|
|
|
|
Income per basic
share: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.15 |
|
|
$ |
0.07 |
|
|
$ |
0.21 |
|
|
$ |
0.15 |
|
Discontinued operations |
— |
|
|
0.03 |
|
|
0.44 |
|
|
0.08 |
|
Net
income |
$ |
0.15 |
|
|
$ |
0.10 |
|
|
$ |
0.65 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
Income per diluted
share: |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.15 |
|
|
$ |
0.07 |
|
|
$ |
0.21 |
|
|
$ |
0.15 |
|
Discontinued operations |
— |
|
|
0.02 |
|
|
0.43 |
|
|
0.08 |
|
Net
income |
$ |
0.15 |
|
|
$ |
0.09 |
|
|
$ |
0.64 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
159.1 |
|
|
161.6 |
|
|
160.6 |
|
|
161.2 |
|
Diluted |
160.6 |
|
|
163.6 |
|
|
162.4 |
|
|
163.3 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
0.11 |
|
|
$ |
0.07 |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(UNAUDITED) |
|
|
Nine months ended |
|
June 30, |
|
2017 |
|
2016 |
|
(in millions) |
Operating
activities: |
|
|
|
Net
income |
$ |
104.0 |
|
|
$ |
37.4 |
|
Less
income from discontinued operations |
69.8 |
|
|
12.1 |
|
Income
from continuing operations |
34.2 |
|
|
25.3 |
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities of
continuing operations: |
|
|
|
Depreciation |
14.9 |
|
|
13.4 |
|
Amortization |
16.2 |
|
|
15.9 |
|
Stock-based compensation |
3.5 |
|
|
3.5 |
|
Retirement plans |
2.6 |
|
|
20.2 |
|
Deferred
income taxes |
(14.4 |
) |
|
(8.5 |
) |
Other,
net |
1.4 |
|
|
3.0 |
|
Changes
in assets and liabilities, net of acquisitions: |
|
|
|
Receivables |
(5.8 |
) |
|
(13.0 |
) |
Inventories |
(4.6 |
) |
|
4.8 |
|
Other
assets |
(4.0 |
) |
|
(5.7 |
) |
Liabilities |
(18.6 |
) |
|
(4.5 |
) |
Net cash
provided by operating activities of continuing operations |
25.4 |
|
|
54.4 |
|
Investing
activities: |
|
|
|
Business
acquisitions, net of cash acquired |
(26.0 |
) |
|
— |
|
Capital
expenditures |
(21.6 |
) |
|
(17.0 |
) |
Proceeds
from sales of assets |
0.2 |
|
|
0.2 |
|
Net cash
used in investing activities of continuing operations |
(47.4 |
) |
|
(16.8 |
) |
Financing
activities: |
|
|
|
Stock
repurchased under buyback program |
(55.0 |
) |
|
— |
|
Dividends |
(17.6 |
) |
|
(11.3 |
) |
Employee
taxes related to stock-based compensation |
(2.7 |
) |
|
(3.2 |
) |
Repayments of debt |
(3.7 |
) |
|
(3.8 |
) |
Issuance
of common stock |
5.2 |
|
|
2.9 |
|
Deferred
financing costs |
(1.0 |
) |
|
(0.1 |
) |
Other |
0.2 |
|
|
(0.3 |
) |
Net cash
used in financing activities of continuing operations |
(74.6 |
) |
|
(15.8 |
) |
Net cash flows from
discontinued operations: |
|
|
|
Operating
activities |
(42.5 |
) |
|
19.2 |
|
Investing
activities |
297.2 |
|
|
(5.6 |
) |
Financing
activities |
(0.1 |
) |
|
— |
|
Net cash
provided by discontinued operations |
254.6 |
|
|
13.6 |
|
Effect of currency
exchange rate changes on cash |
0.2 |
|
|
(0.2 |
) |
Net
change in cash and cash equivalents |
158.2 |
|
|
35.2 |
|
Cash and cash
equivalents at beginning of period |
195.0 |
|
|
113.1 |
|
Cash and
cash equivalents at end of period |
$ |
353.2 |
|
|
$ |
148.3 |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
GAAP TO NON-GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
Quarter ended June 30, 2017 |
|
Mueller Co. |
|
MuellerTechnologies |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
207.6 |
|
|
$ |
24.6 |
|
|
$ |
— |
|
|
$ |
232.2 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
76.9 |
|
|
$ |
5.6 |
|
|
$ |
— |
|
|
$ |
82.5 |
|
Selling, general and
administrative expenses |
23.6 |
|
|
7.2 |
|
|
7.9 |
|
|
38.7 |
|
Other charges |
0.4 |
|
|
— |
|
|
0.8 |
|
|
1.2 |
|
Operating
income (loss) from continuing operations |
$ |
52.9 |
|
|
$ |
(1.6 |
) |
|
$ |
(8.7 |
) |
|
42.6 |
|
Interest
expense, net |
|
|
|
|
|
|
5.1 |
|
Income
tax expense |
|
|
|
|
|
|
13.4 |
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
24.1 |
|
|
|
|
|
|
|
|
|
Income from continuing
operations per diluted share |
|
|
|
|
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
6.1 |
|
|
$ |
1.3 |
|
|
$ |
0.1 |
|
|
$ |
7.5 |
|
|
|
|
|
|
|
|
|
Operating margin |
25.5 |
% |
|
(6.5 |
)% |
|
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP performance measures to GAAP performance measures: |
|
|
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
24.1 |
|
Inventory
purchase accounting adjustment |
|
|
|
|
|
|
0.8 |
|
Other
charges |
|
|
|
|
|
|
1.2 |
|
Income
tax benefit of adjusting items |
|
|
|
|
|
|
(0.7 |
) |
Adjusted
income from continuing operations |
|
|
|
|
|
|
$ |
25.4 |
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares outstanding |
|
|
|
|
|
|
160.6 |
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations per share |
|
|
|
|
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
$ |
24.0 |
|
Plus loss
from discontinued operations |
|
|
|
|
|
|
0.1 |
|
Interest
expense, net (1) |
|
|
|
|
|
|
5.1 |
|
Income
tax expense (1) |
|
|
|
|
|
|
13.4 |
|
Operating
income (loss) from continuing operations |
$ |
52.9 |
|
|
$ |
(1.6 |
) |
|
$ |
(8.7 |
) |
|
42.6 |
|
Inventory
purchase accounting adjustment |
0.8 |
|
|
— |
|
|
— |
|
|
0.8 |
|
Other
charges |
0.4 |
|
|
— |
|
|
0.8 |
|
|
1.2 |
|
Adjusted
operating income (loss) from continuing operations |
54.1 |
|
|
(1.6 |
) |
|
(7.9 |
) |
|
44.6 |
|
Depreciation and amortization |
8.9 |
|
|
1.2 |
|
|
0.1 |
|
|
10.2 |
|
Adjusted
EBITDA |
$ |
63.0 |
|
|
$ |
(0.4 |
) |
|
$ |
(7.8 |
) |
|
$ |
54.8 |
|
|
|
|
|
|
|
|
|
Adjusted
operating margin |
26.1 |
% |
|
(6.5 |
)% |
|
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin |
30.3 |
% |
|
(1.6 |
)% |
|
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
(1) We do not
allocate interest or income taxes to our segments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
63.0 |
|
|
$ |
(0.4 |
) |
|
$ |
(7.8 |
) |
|
$ |
54.8 |
|
Three
prior quarters' adjusted EBITDA |
137.8 |
|
|
(2.6 |
) |
|
(26.9 |
) |
|
108.3 |
|
Trailing
twelve months' adjusted EBITDA |
$ |
200.8 |
|
|
$ |
(3.0 |
) |
|
$ |
(34.7 |
) |
|
$ |
163.1 |
|
|
|
|
|
|
|
|
|
Reconciliation of net
debt to total debt (end of period): |
|
|
|
|
|
|
|
Current
portion of long-term debt |
|
|
|
|
|
|
$ |
5.5 |
|
Long-term
debt |
|
|
|
|
|
|
475.7 |
|
Total
debt |
|
|
|
|
|
|
481.2 |
|
Less cash
and cash equivalents |
|
|
|
|
|
|
353.2 |
|
Net
debt |
|
|
|
|
|
|
$ |
128.0 |
|
|
|
|
|
|
|
|
|
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 of
continuing operations: |
|
|
|
|
|
|
|
Net cash
provided by operating activities of continuing operations |
|
|
|
|
|
|
$ |
41.7 |
|
Less
capital expenditures |
|
|
|
|
|
|
(7.5 |
) |
Free cash
flow |
|
|
|
|
|
|
$ |
34.2 |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
GAAP TO NON-GAAP PERFORMANCE
MEASURES(UNAUDITED)
|
|
Quarter ended June 30, 2016 |
|
Mueller Co. |
|
MuellerTechnologies |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
198.7 |
|
|
$ |
26.0 |
|
|
$ |
— |
|
|
$ |
224.7 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
77.5 |
|
|
$ |
5.7 |
|
|
$ |
— |
|
|
$ |
83.2 |
|
Selling, general and
administrative expenses |
23.4 |
|
|
7.2 |
|
|
8.8 |
|
|
39.4 |
|
Pension settlement |
2.2 |
|
|
— |
|
|
14.4 |
|
|
16.6 |
|
Other charges |
0.2 |
|
|
— |
|
|
4.4 |
|
|
4.6 |
|
Operating
income (loss) |
$ |
51.7 |
|
|
$ |
(1.5 |
) |
|
$ |
(27.6 |
) |
|
22.6 |
|
Interest
expense, net |
|
|
|
|
|
|
6.0 |
|
Income
tax expense |
|
|
|
|
|
|
5.6 |
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
11.0 |
|
|
|
|
|
|
|
|
|
Income from continuing
operations per diluted share |
|
|
|
|
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
3.6 |
|
|
$ |
1.5 |
|
|
$ |
— |
|
|
$ |
5.1 |
|
|
|
|
|
|
|
|
|
Operating margin |
26.0 |
% |
|
(5.8 |
)% |
|
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP performance measures to GAAP performance measures: |
|
|
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
11.0 |
|
Pension
settlement |
|
|
|
|
|
|
16.6 |
|
Other
charges |
|
|
|
|
|
|
4.6 |
|
Income
tax benefit of adjusting items |
|
|
|
|
|
|
(7.2 |
) |
Adjusted
income from continuing operations |
|
|
|
|
|
|
$ |
25.0 |
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares outstanding |
|
|
|
|
|
|
163.6 |
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations per share |
|
|
|
|
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
$ |
15.5 |
|
Less
income from discontinued operations |
|
|
|
|
|
|
(4.5 |
) |
Interest
expense, net (1) |
|
|
|
|
|
|
6.0 |
|
Income
tax expense (1) |
|
|
|
|
|
|
5.6 |
|
Operating
income (loss) from continuing operations |
$ |
51.7 |
|
|
$ |
(1.5 |
) |
|
$ |
(27.6 |
) |
|
22.6 |
|
Pension
settlement |
2.2 |
|
|
— |
|
|
14.4 |
|
|
16.6 |
|
Other
charges |
0.2 |
|
|
— |
|
|
4.4 |
|
|
4.6 |
|
Adjusted
operating income (loss) from continuing operations |
54.1 |
|
|
(1.5 |
) |
|
(8.8 |
) |
|
43.8 |
|
Depreciation and amortization |
8.5 |
|
|
1.2 |
|
|
0.1 |
|
|
9.8 |
|
Adjusted
EBITDA |
$ |
62.6 |
|
|
$ |
(0.3 |
) |
|
$ |
(8.7 |
) |
|
$ |
53.6 |
|
|
|
|
|
|
|
|
|
Adjusted
operating margin |
27.2 |
% |
|
(5.8 |
)% |
|
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin |
31.5 |
% |
|
(1.2 |
)% |
|
|
|
23.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We do not
allocate interest or income taxes to our segments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
62.6 |
|
|
$ |
(0.3 |
) |
|
$ |
(8.7 |
) |
|
$ |
53.6 |
|
Three
prior quarters' adjusted EBITDA |
131.6 |
|
|
(6.5 |
) |
|
(23.8 |
) |
|
101.3 |
|
Trailing
twelve months' adjusted EBITDA |
$ |
194.2 |
|
|
$ |
(6.8 |
) |
|
$ |
(32.5 |
) |
|
$ |
154.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
debt to total debt (end of period): |
|
|
|
|
|
|
|
Current
portion of long-term debt |
|
|
|
|
|
|
$ |
5.6 |
|
Long-term
debt |
|
|
|
|
|
|
479.7 |
|
Total
debt |
|
|
|
|
|
|
485.3 |
|
Less cash
and cash equivalents |
|
|
|
|
|
|
148.3 |
|
Net
debt |
|
|
|
|
|
|
$ |
337.0 |
|
|
|
|
|
|
|
|
|
Net debt
leverage (net debt divided by trailing twelve months' adjusted
EBITDA) |
|
|
|
|
|
|
|
2.2x |
|
|
|
|
|
|
|
|
|
Reconciliation of free
cash flow to net cash provided by operating activities of
continuing operations: |
|
|
|
|
|
|
|
Net cash
provided by operating activities of continuing operations |
|
|
|
|
|
|
59.5 |
|
Less
capital expenditures |
|
|
|
|
|
|
(5.1 |
) |
Free cash
flow |
|
|
|
|
|
|
$ |
54.4 |
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
GAAP TO NON-GAAP PERFORMANCE
MEASURES(UNAUDITED) |
|
Nine months ended June 30, 2017 |
|
Mueller Co. |
|
MuellerTechnologies |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
535.5 |
|
|
$ |
63.6 |
|
|
$ |
— |
|
|
$ |
599.1 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
183.3 |
|
|
$ |
3.3 |
|
|
$ |
— |
|
|
$ |
186.6 |
|
Selling, general and
administrative expenses |
67.9 |
|
|
20.7 |
|
|
25.6 |
|
|
114.2 |
|
Other charges |
2.1 |
|
|
0.1 |
|
|
2.8 |
|
|
5.0 |
|
Operating
income (loss) from continuing operations |
$ |
113.3 |
|
|
$ |
(17.5 |
) |
|
$ |
(28.4 |
) |
|
67.4 |
|
Interest
expense, net |
|
|
|
|
|
|
17.0 |
|
Income
tax expense |
|
|
|
|
|
|
16.2 |
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
34.2 |
|
|
|
|
|
|
|
|
|
Income from continuing
operations per diluted share |
|
|
|
|
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
13.8 |
|
|
$ |
7.6 |
|
|
$ |
0.2 |
|
|
$ |
21.6 |
|
|
|
|
|
|
|
|
|
Operating margin |
21.2 |
% |
|
(27.5 |
)% |
|
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP performance measures to GAAP performance measures: |
|
|
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
34.2 |
|
Discrete
warranty charge |
|
|
|
|
|
|
9.8 |
|
Inventory
purchase accounting adjustment |
|
|
|
|
|
|
0.8 |
|
Other
charges |
|
|
|
|
|
|
5.0 |
|
Income
tax benefit of adjusting items |
|
|
|
|
|
|
(2.7 |
) |
Adjusted
income from continuing operations |
|
|
|
|
|
|
$ |
47.1 |
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares outstanding |
|
|
|
|
|
|
162.4 |
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations per share |
|
|
|
|
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
$ |
104.0 |
|
Less
income from discontinued operations |
|
|
|
|
|
|
(69.8 |
) |
Interest
expense, net (1) |
|
|
|
|
|
|
17.0 |
|
Income
tax expense (1) |
|
|
|
|
|
|
16.2 |
|
Operating
income (loss) from continuing operations |
$ |
113.3 |
|
|
$ |
(17.5 |
) |
|
$ |
(28.4 |
) |
|
67.4 |
|
Discrete
warranty charge |
— |
|
|
9.8 |
|
|
— |
|
|
9.8 |
|
Inventory
purchase accounting adjustment |
0.8 |
|
|
— |
|
|
— |
|
|
0.8 |
|
Other
charges |
2.1 |
|
|
0.1 |
|
|
2.8 |
|
|
5.0 |
|
Adjusted
operating income (loss) from continuing operations |
116.2 |
|
|
(7.6 |
) |
|
(25.6 |
) |
|
83.0 |
|
Depreciation and amortization |
27.0 |
|
|
3.8 |
|
|
0.3 |
|
|
31.1 |
|
Adjusted
EBITDA |
$ |
143.2 |
|
|
$ |
(3.8 |
) |
|
$ |
(25.3 |
) |
|
$ |
114.1 |
|
|
|
|
|
|
|
|
|
Adjusted
operating margin |
21.7 |
% |
|
(11.9 |
)% |
|
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin |
26.7 |
% |
|
(6.0 |
)% |
|
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
Free cash flow: |
|
|
|
|
|
|
|
Net cash
provided by operating activities of continuing operations |
|
|
|
|
|
|
$ |
25.4 |
|
Less
capital expenditures |
|
|
|
|
|
|
(21.6 |
) |
Free cash
flow |
|
|
|
|
|
|
$ |
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We do not
allocate interest or income taxes to our segments. |
|
|
|
|
|
|
|
MUELLER WATER PRODUCTS, INC. AND
SUBSIDIARIESSEGMENT RESULTS AND RECONCILIATION OF
GAAP TO NON-GAAP PERFORMANCE
MEASURES(UNAUDITED)
|
|
Nine months ended June 30, 2016 |
|
Mueller Co. |
|
MuellerTechnologies |
|
Corporate |
|
Consolidated |
|
(dollars in millions, except per share
amounts) |
Net sales |
$ |
525.6 |
|
|
$ |
59.4 |
|
|
$ |
— |
|
|
$ |
585.0 |
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
179.2 |
|
|
$ |
10.9 |
|
|
$ |
— |
|
|
$ |
190.1 |
|
Selling, general and
administrative expenses |
65.8 |
|
|
20.6 |
|
|
25.8 |
|
|
112.2 |
|
Pension settlement |
2.2 |
|
|
— |
|
|
14.4 |
|
|
16.6 |
|
Other charges |
0.8 |
|
|
0.5 |
|
|
4.9 |
|
|
6.2 |
|
Operating
income (loss) |
$ |
110.4 |
|
|
$ |
(10.2 |
) |
|
$ |
(45.1 |
) |
|
55.1 |
|
Interest
expense, net |
|
|
|
|
|
|
18.0 |
|
Income
tax expense |
|
|
|
|
|
|
11.8 |
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
25.3 |
|
|
|
|
|
|
|
|
|
Income from continuing
operations per diluted share |
|
|
|
|
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
12.4 |
|
|
$ |
4.5 |
|
|
$ |
0.1 |
|
|
$ |
17.0 |
|
|
|
|
|
|
|
|
|
Operating margin |
21.0 |
% |
|
(17.2 |
)% |
|
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP performance measures to GAAP performance measures: |
|
|
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$ |
25.3 |
|
Pension
settlement |
|
|
|
|
|
|
16.6 |
|
Other
charges |
|
|
|
|
|
|
6.2 |
|
Income
tax benefit of adjusting items |
|
|
|
|
|
|
(7.7 |
) |
Adjusted
income from continuing operations |
|
|
|
|
|
|
$ |
40.4 |
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares outstanding |
|
|
|
|
|
|
163.3 |
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations per share |
|
|
|
|
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
$ |
37.4 |
|
Less
income from discontinued operations |
|
|
|
|
|
|
(12.1 |
) |
Interest
expense, net (1) |
|
|
|
|
|
|
18.0 |
|
Income
tax expense (1) |
|
|
|
|
|
|
11.8 |
|
Operating
income (loss) from continuing operations |
$ |
110.4 |
|
|
$ |
(10.2 |
) |
|
$ |
(45.1 |
) |
|
55.1 |
|
Pension
settlement |
2.2 |
|
|
— |
|
|
14.4 |
|
|
16.6 |
|
Other
charges |
0.8 |
|
|
0.5 |
|
|
4.9 |
|
|
6.2 |
|
Adjusted
operating income (loss) from continuing operations |
113.4 |
|
|
(9.7 |
) |
|
(25.8 |
) |
|
77.9 |
|
Depreciation and amortization |
25.5 |
|
|
3.5 |
|
|
0.3 |
|
|
29.3 |
|
Adjusted
EBITDA |
$ |
138.9 |
|
|
$ |
(6.2 |
) |
|
$ |
(25.5 |
) |
|
$ |
107.2 |
|
|
|
|
|
|
|
|
|
Adjusted
operating margin |
21.6 |
% |
|
(16.3 |
)% |
|
|
|
13.3 |
% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin |
26.4 |
% |
|
(10.4 |
)% |
|
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
Free cash flow: |
|
|
|
|
|
|
|
Net cash
provided by operating activities of continuing operations |
|
|
|
|
|
|
$ |
54.4 |
|
Less
capital expenditures |
|
|
|
|
|
|
(17.0 |
) |
Free cash
flow |
|
|
|
|
|
|
$ |
37.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We do not
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Investor Contacts: Martie Edmunds Zakas
Sr. Vice President - Strategy, Corporate Development
& Communications
770-206-4237
mzakas@muellerwp.com
John DeYarman
Director - Strategy, Corporate Development & Investor Relations
770-206-4228
jdeyarman@muellerwp.com
Mueller Water Products (NYSE:MWA)
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From Apr 2024 to May 2024
Mueller Water Products (NYSE:MWA)
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From May 2023 to May 2024