Mueller Water Products · NYSE:MWA
Mueller Water Products — Q4 2015 Earnings Presentation
18 slides from Mueller Water Products's earnings presentation, Nov 5, 2015
Slide 1: Where Intelligence Meets Infrastructure
Where Intelligence Meets Infrastructure® Earnings Conference Call For The Fourth Quarter Ended September 30, 2015 November 5, 2015 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call 1
Slide 2: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company reports its financial results under accounting These items are excluded because they are not principles generally accepted in the United States (“GAAP”), considered indicative of recurring operations. Free cash as well as through the use of non-GAAP measures.
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain statements that may be Forward-looking statements are based on certain deemed “forward-looking statements” within the meaning assumptions and assessments made by us in light of our of the Private Securities Litigation Reform Act of 1995.
Slide 4: Segment Reporting
SEGMENT REPORTING The Company has redefined its reporting segments to provide great transparency of its operations to stockholders, and the financial community, and to better reflect how the Company manages its business. As a result, the Company now reports results for Mueller Co., Anvil and Mueller
Slide 5: Consolidated Non-GAAP Results
CONSOLIDATED NON-GAAP RESULTS Net sales grew at both Mueller Co. and Mueller Technologies, but were offset by lower 4Q FISCAL 2015 2014 shipments into the oil and gas market at Anvil as well as unfavorable impacts from changes Net sales $311.4 $320.7 in Canadian currency exchange rates Adj. operatin
Slide 6: Consolidated GAAP Results
CONSOLIDATED GAAP RESULTS Gross profit • Gross margin for the 2015 fourth quarter 4Q FISCAL 2015 2014 decreased 20 basis points primarily due to a less favorable product mix at Anvil Net sales $311.4 $320.7 • Gross margin at Mueller Co. improved 80 basis points year-over-year and also Gross profit $
Slide 7: Consolidated Non-GAAP Results
CONSOLIDATED NON-GAAP RESULTS Adjusted operating income increased 4.4 percent to $45.0 million compared with $43.1 million in prior 4Q FISCAL 2015 2014 year, which included a $2.5 million gain on the sale of Anvil's Bloomington, MN fabrication facility Adj. operating income $45.0 $43.1 Excluding the
Slide 8: Mueller Co. Segment Non-GAAP Results
MUELLER CO. SEGMENT NON-GAAP RESULTS Net sales • We experienced net sales growth at Mueller Co.; 4Q FISCAL 2015 2014 however, higher shipment volumes were partially offset by $3.4 million from the divestiture of our Net sales $192.0 $188.8 Canadian municipal castings business earlier this year and $
Slide 9: Anvil Segment Non-GAAP Results
ANVIL SEGMENT NON-GAAP RESULTS Net sales • Net sales decreased $14.0 million to $93.7 4Q FISCAL 2015 2014 million compared with $107.7 million in prior Net sales $93.7 $107.7 year • As expected, net sales decreased due to Adj. operating income $8.9 $16.8 lower sales of oil & gas-related products, wh
Slide 10: Mueller Technologies Segment Non-GAAP Results
MUELLER TECHNOLOGIES SEGMENT NON-GAAP RESULTS Net sales • Net sales for the 2015 fourth quarter 4Q FISCAL 2015 2014 increased $1.5 million to $25.7 million Net sales $25.7 $24.2 compared with $24.2 million for the 2014 fourth quarter Adj. operating loss $(1.8) $(2.1) • Net sales were up 6.2 percent
Slide 11: Net Debt
NET DEBT $600 $541.0 $489.0 $500 Sept. 30, 2015 $161.1 $ in millions $113.1 $400 ($ in millions) ABL Revolver (LIBOR + 175 basis points) $0.0 $300 Term Loan B (LIBOR* + 325 basis points) 486.6 $200 $375.9 $379.9 Other 2.4 $100 Total Debt $489.0 $0 9/30/2015 9/30/2014 Cash Net Debt Net debt leverage
Slide 12: Fourth Quarter Comments and 2016 First Quarter and Full Year Outlook
Fourth Quarter Comments and 2016 First Quarter and Full Year Outlook PAGE 12
Slide 13: Supplemental Data
Supplemental Data PAGE 13
Slide 14: Segment Results and Reconciliation of GAAP to Non-GAAP: Q4 2015
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended September 30, 2015 ($ in millions, except per share amounts) Mueller Co. Anvil Mueller Technologies Corporate Total (in millions, except per share amounts) GAAP Results: Net sales $ 192 $ 93.7 $ 25.7 $ — $ 311.
Slide 15: Segment Results and Reconciliation of GAAP to Non-GAAP: Q4 2014
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended September 30, 2014 ($ in millions, except per share amounts) Mueller Co. Anvil Mueller Corporate Total Technologies (in millions, except per share amounts) GAAP results: Net sales $ 188.8 $ 107.7 $ 24.2 $ — $ 3
Slide 16: Segment Results and Reconciliation of GAAP to Non-GAAP: FY2015
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Year ended September 30, 2015 ($ in millions, except per share amounts) Mueller Mueller Co. Anvil Corporate Total Technologies (in millions, except per share amounts) GAAP Results: Net sales $ 702.2 $ 371.1 $ 91.2 $ — $ 1,16
Slide 17: Segment Results and Reconciliation of GAAP to Non-GAAP: FY2014
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Year ended September 30, 2014 ($ in millions, except per share amounts) Mueller Mueller Co. Anvil Corporate Total Technologies (in millions, except per share amounts) GAAP results: 1,184.7 Net sales $ 679.1 $ 401.4 $ 104.2 $
Slide 18: Q&A
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