Mueller Water Products · NYSE:MWA
Mueller Water Products — Q3 2024 Earnings Presentation
23 slides from Mueller Water Products's earnings presentation, Aug 6, 2024
Slide 1: Where Intelligence Meets Infrastructure - Earnings Conference Call
Where Intelligence Meets Infrastructure® Earnings Conference Call 2024 Third Quarter June 30, 2024 August 6, 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: Third Quarter Highlights
Third Quarter Highlights • Pleased with performance this quarter as we reported record Fiscal 2024 quarterly results that exceeded expectations Performance vs. Prior Year • Achieved record quarterly net sales with 9.2% y/y growth with Q3 YTD healthy order levels during the quarter supported by stead
Slide 5: Key Messages
Key Messages • Highly encouraged by progress teams have achieved this year based on unrelenting focus on customer service and operational efficiency • Teams continue to perform at a high level while controlling costs and driving manufacturing, material and freight efficiencies • Improvement in margi
Slide 6: Consolidated GAAP Results (Q3 FY2024)
Consolidated GAAP Results (Q3 FY2024) Net Sales ($M) Gross Profit ($M) SG&A ($M) Operating Income ($M) % of Net Sales % of Net Sales % of Net Sales +31.3% y/y +1.5% y/y +88.2% y/y +9.2% y/y +620 bps. -140 bps. +790 bps. $131.4 $356.7 $60.6 $61.5 $67.0 $326.6 36.8% $100.1 18.6% 17.2% 18.8% 30.6% $35.
Slide 7: Consolidated Non-GAAP Results (Q3 FY2024)
Consolidated Non-GAAP Results (Q3 FY2024) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales +77.0% y/y +56.6% y/y +750 bps. +720 bps. +77.8% y/y $85.2 $0.32 $69.9 23.9% 19.6% $54.4 $39.5 $0.18 16.7% 12.1% Q3 FY2023 Q3 FY2024 Q3 FY2023 Q3
Slide 8: Water Flow Solutions (WFS) Segment Results (Q3 FY2024)
Water Flow Solutions (WFS) Segment Results (Q3 FY2024) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +355.1% y/y +220.1% y/y +38.6% y/y +1,930 bps. +1,820 bps. $208.1 $57.8 $66.9 $150.1 27.8% 32.1% $20.9 $12.7 8.5% 13.9% Q3 FY2023 Q3 FY2024 Q3 FY202
Slide 9: Water Management Solutions (WMS) Segment Results (Q3 FY2024)
Water Management Solutions (WMS) Segment Results (Q3 FY2024) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales -32.8% y/y -28.6% y/y -15.8% y/y -460 bps. -410 bps. $40.0 $47.6 $176.5 $148.6 22.7% 27.0% $26.9 $34.0 18.1% 22.9% Q3 FY2023 Q3 FY2024 Q3 FY20
Slide 10: Free Cash Flow (YTD Q3 FY2024)
Free Cash Flow (YTD Q3 FY2024) • Increased Q3 YTD net cash provided by $160.0 $149.5 operating activities by $97.0M to $149.5M $140.0 compared with in prior year period $28.0 $120.0 − Increase primarily a result of higher net income and improvements in working capital compared with the $100.0 $ in M
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 and Notes Ratings, Stable Outlook Debt Maturities Credit Rating • S&P: BB Corporate and Notes Ratings, Stable Outlook $500 • $450M of 4.0% Senior Notes (mature June
Slide 12: Fiscal 2024 Outlook
Fiscal 2024 Outlook (1) • Raising net sales expectations to be between $1.285M Fiscal 2024 Metrics (1) and $1.295M, or +0.7% to +1.5% y/y − Believe municipal and new residential construction end markets Consolidated Net Sales $1,285M to $1,295M will continue to be healthy for the balance of the year
Slide 13: Closing Comments
Closing Comments • Moving forward with confidence and strength with leading brands, improving manufacturing operations, a large installed base and strong channel and end customer relationships • Well-positioned to benefit from investment to address aging water North American infrastructure and the i
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 June 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 208.1 $ 148.6 $ — $ 356.7 Gross profit $ 81.9 $
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 June 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 47.3 Income tax expense (3) 15.9 Interest 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 June 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 150.1 $ 176.5 $ — $ 326.6 Gross profit $ 33.6 $
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 June 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 24.5 Income tax expense (3) 6.4 Interest expens
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) Nine months ended June 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 555.2 $ 411.3 $ — $ 966.5 Gross profit $ 205.7 $
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) Nine months ended June 30, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 105.9 Income tax expense (3) 33.1 Other expense
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) Nine months ended June 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 472.9 $ 501.4 $ — $ 974.3 Gross profit $ 117.4 $
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) Nine months ended June 30, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 68.3 Income tax expense (3) 20.0 Interest expens
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