Mueller Water Products · NYSE:MWA
Mueller Water Products — Q4 2024 Earnings Presentation
24 slides from Mueller Water Products's earnings presentation, Nov 7, 2024
Slide 1: Earnings Conference Call: 2024 Fourth Quarter
Where Intelligence Meets Infrastructure® Earnings Conference Call 2024 Fourth Quarter September 30, 2024 November 7, 2024 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call
Slide 2: Non-GAAP Measures
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. The
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation 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 a
Slide 4: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights • Pleased with strong finish to a record year as Q4 Net Sales and Adj. Fiscal 2024 (1) EBITDA exceeded expectations (y/y or bps. vs. Fiscal 2023) − Delivered double-digit y/y increase in Net Sales in Q4 with healthy order levels that were Q4 Full Year supporte
Slide 5: ESG is Core to Mueller
ESG is Core to Mueller • 4th Annual ESG Report highlights commitment and ongoing progress to becoming more sustainable, innovative and impactful organization • Committed to providing products and solutions that help cities and municipalities repair and replace their aging infrastructure, increase th
Slide 6: Commercial and Operational Insights
Commercial and Operational Insights • Encouraged by and pleased with the progress our teams achieved this year, in face of external challenges, resulting in significant improvement in gross margin, exceeding pre-pandemic highs − Disciplined focus on serving customers and execution of manufacturing,
Slide 7: Consolidated GAAP Results (Q4 FY2024)
Consolidated GAAP Results (Q4 FY2024) Net Sales ($M) Gross Profit ($M) SG&A ($M) Operating Income ($M) % of Net Sales % of Net Sales % of Net Sales +25.5% y/y +16.4% y/y +14.1% y/y +15.5% y/y +250 bps. +10 bps. -10 bps. $110.9 $28.4 $348.2 $63.1 $88.4 $54.2 $24.9 $301.4 31.8% 8.2% 18.1% 8.3% 29.3% 1
Slide 8: Consolidated Non-GAAP Results (Q4 FY2024)
Consolidated Non-GAAP Results (Q4 FY2024) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales +41.6% y/y +30.9% y/y +300 bps. +240 bps. +15.8% y/y $56.5 $72.5 $0.22 16.2% $0.19 $39.9 $55.4 20.8% 13.2% 18.4% Q4 FY2023 Q4 FY2024 Q4 FY2023 Q4
Slide 9: Water Flow Solutions (WFS) Segment Results (Q4 FY2024)
Water Flow Solutions (WFS) Segment Results (Q4 FY2024) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +51.3% y/y +41.3% y/y +24.0% y/y +380 bps. +310 bps. $41.6 $200.3 $51.7 20.8% $161.5 $27.5 $36.6 25.8% 17.0% 22.7% Q4 FY2023 Q4 FY2024 Q4 FY2023 Q4
Slide 10: Water Management Solutions (WMS) Segment Results (Q4 FY2024)
Water Management Solutions (WMS) Segment Results (Q4 FY2024) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +36.1% y/y +26.1% y/y +5.7% y/y +440 bps. +400 bps. $139.9 $147.9 $29.8 $36.7 $29.1 24.8% $21.9 20.1% 20.8% 15.7% Q4 FY2023 Q4 FY2024 Q4 FY202
Slide 11: Free Cash Flow (Fiscal 2024)
Free Cash Flow (Fiscal 2024) • Achieved record level of cash flow in FY2024 $260.0 $238.8 • Increased FY2024 net cash provided by operating $240.0 $220.0 activities by $129.8M to $238.8M compared with $47.4 $200.0 prior year period $180.0 − Increase primarily a result of improvements in working $160
Slide 12: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Ample capacity, liquidity and flexibility to support our strategic priorities, including acquisitions • Moody’s: Ba1 Corporate and Notes Ratings, Stable Outlook Debt Maturities Credit Rating • S&P: BB Corporate and Notes Ratings, Stable Outlook $500 • $450M of 4.0%
Slide 13: Fiscal 2025 Outlook
Fiscal 2025 Outlook (1) • Net sales expected to be between $1,340M and $1,360M Fiscal 2025 Metrics (1) (+1.9% to +3.4% y/y) − Expect seasonality to be normalized with quarterly consolidated Net Sales highest in Consolidated Net Sales $1,340M to $1,360M Q3 and lowest in Q1 with a sequential increase
Slide 14: Strategic Priorities to Drive Growth and Margin Improvement
Strategic Priorities to Drive Growth and Margin Improvement Supported by Purpose-driven Organization IMPROVE ACCELERATE FOSTER CULTURE INCREASE MARGINS STRATEGIC OPERATIONAL SALES GROWTH THROUGH PURPOSE, AND FREE CASH FLOW PRIORITIES EXCELLENCE THROUGH CUSTOMER COLLABORATION, TO SUPPORT FUTURE AND E
Slide 15: Q&A
Q&A
Slide 16: Supplemental Data
Supplemental Data
Slide 17: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 200.3 $ 147.9 $ — $ 348.2 Gross profit (1) $ 66.
Slide 18: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 10.0 Income tax expense (4) 14.4 Interest expen
Slide 19: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 161.5 $ 139.9 $ — $ 301.4 Gross profit (1) $ 47.
Slide 20: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 17.2 Income tax expense (4) 3.5 Interest expens
Slide 21: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 755.5 $ 559.2 $ — $ 1,314.7 Gross profit (1) $ 271.
Slide 22: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 115.9 Income tax expense (4) 47.5 Other expense 1.
Slide 23: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 634.4 $ 641.3 $ — $ 1,275.7 Gross profit (1) $ 164.
Slide 24: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 85.5 Income tax expense (4) 23.5 Interest expense,
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