Mueller Water Products · NYSE:MWA
Mueller Water Products — Q1 2024 Earnings Presentation
19 slides from Mueller Water Products's earnings presentation, Feb 9, 2024
Slide 1: Where Intelligence Meets Infrastructure: Earnings Conference Call
Where Intelligence Meets Infrastructure® Earnings Conference Call 2024 First Quarter December 31, 2023 February 9, 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 Financial Measures
Non-GAAP Financial 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 inve
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: First Quarter Highlights
First Quarter Highlights • Delivered solid start to the year as we expanded margins versus the prior year Q1 Fiscal 2024 quarter, despite the expected decrease in net sales Performance vs. Prior Year − Q1 net sales exceeded the high end of our previously-announced expectations − Lapped strong sales
Slide 5: Considerations for 2024
Considerations for 2024 • Initial fiscal 2024 adjusted EBITDA guidance reflects higher margins despite a forecasted decrease in net sales versus the prior year − Face lower volumes resulting from lapping the elevated short cycle backlog, mainly for iron gate valves and hydrants • Expect our consolid
Slide 6: Consolidated GAAP Results (Q1 FY2024)
Consolidated GAAP Results (Q1 FY2024) Gross Profit ($M) SG&A ($M) Operating Income ($M) Net Sales ($M) % of Net Sales % of Net Sales % of Net Sales -7.4% y/y -9.5% y/y -32.9% y/y -18.6% y/y +410 bps. -220 bps. -190 bps. $314.8 $93.2 $62.9 $86.3 $56.9 $34.0 $256.4 29.6% 20.0% 33.7% 10.8% 22.2% $22.8
Slide 7: Consolidated Non-GAAP Results (Q1 FY2024)
Consolidated Non-GAAP Results (Q1 FY2024) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales -3.0% y/y +1.4% y/y 0.0% y/y +190 bps. +350 bps. $44.2 $44.8 $0.13 $0.13 $30.3 $29.4 9.6% 14.0% 17.5% 11.5% Q1 FY2023 Q1 FY2024 Q1 FY2023 Q1 FY202
Slide 8: Water Flow Solutions Segment Results (Q1 FY2024)
Water Flow Solutions Segment Results (Q1 FY2024) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) Net Sales ($M) % of Net Sales % of Net Sales +13.2% y/y +15.0% y/y -14.7% y/y +480 bps. +670 bps. $165.6 $27.4 $36.7 $141.3 $24.2 $31.9 19.4% 26.0% 14.6% 19.3% Q1 FY2023 Q1 FY2024 Q1 FY2023 Q1 FY2024
Slide 9: Water Management Solutions Segment Results (Q1 FY2024)
Water Management Solutions Segment Results (Q1 FY2024) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) Net Sales ($M) % of Net Sales % of Net Sales -23.0% y/y -16.9% y/y -22.9% y/y 0 bps. +140 bps. $149.2 $26.6 $19.6 $22.1 $115.1 $15.1 17.8% 13.1% 19.2% 13.1% Q1 FY2023 Q1 FY2024 Q1 FY2023 Q1 FY2
Slide 10: Free Cash Flow (Q1 FY2024)
Free Cash Flow (Q1 FY2024) • Increased net cash provided by operating activities by $80.0 $74.4M to $67.9M compared with prior year quarter $67.9 $70.0 − Increase driven by improvements in working capital compared with prior $60.0 year, including smaller increase in inventories, higher receivables c
Slide 11: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Ample capacity to support our strategic priorities, including acquisitions • Moody’s: Ba1 Corporate Rating, Ba1 Notes Rating, Stable Outlook Debt Maturities Credit Rating • S&P: BB Corporate and Notes Ratings, Stable Outlook $500 • $450M of 4.0% Senior Notes (matur
Slide 12: Fiscal 2024 Outlook
Fiscal 2024 Outlook (1) • Slightly improving expectations for consolidated net sales to decrease between 2% and 6% as Fiscal 2024 Metrics (1) compared with the prior year Consolidated Net Sales Growth y/y -2% to -6% − Takes into account first quarter performance and recent Adjusted EBITDA Growth y/y
Slide 13: Closing Comments
Closing Comments • Mueller plays a critical role in helping our customers deliver clean, safe drinking water to hundreds of millions of people − Wouldn’t be where we are today without our dedicated team members, customers and suppliers • Remain focused on delivering value to our customers while also
Slide 14: Q&A
Q&A
Slide 15: Supplemental Data
Supplemental Data
Slide 16: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Three months ended December 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 141.3 $ 115.1 $ — $ 256.4 Gross profit $ 46.
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) Three months ended December 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 14.3 Income tax expense (3) 2.6 Other expen
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) Three months ended December 31, 2022 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 165.6 $ 149.2 $ — $ 314.8 Gross profit $ 46.
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) Three months ended December 31, 2022 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 22.5 Income tax expense (3) 6.9 Interest ex
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