Mueller Water Products · NYSE:MWA

Mueller Water Products — Q2 2017 Earnings Presentation

21 slides from Mueller Water Products's earnings presentation, Apr 28, 2017

  1. Slide 1: Where Intelligence Meets Infrastructure

    Where Intelligence Meets Infrastructure® Earnings Conference Call For The Second Quarter Ended March 31, 2017 April 28, 2017 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call.

  2. Slide 2: Non-GAAP Financial Measures

    NON-GAAP FINANCIAL MEASURES In an effort to provide investors with additional information The Company presents net debt and net debt leverage as regarding the Company's results as determined by GAAP, performance measures because management uses them in the Company also provides non-GAAP information

  3. Slide 3: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS This presentation contains certain statements that Forward-looking statements are based on certain may be deemed “forward-looking statements” within assumptions and assessments made by us in light the meaning of the Private Securities Litigation of our experience and perce

  4. Slide 4: Reclassified Financials

    RECLASSIFIED FINANCIALS We sold Anvil in January 2017. As a result, Anvil's operating results for all prior periods, and the gain from its sale, have been classified as discontinued operations. We filed a Form 8-K on February 21st which included the reclassified 2016 results by quarter. PAGE 4

  5. Slide 5: Second Quarter Highlights

    Second Quarter Highlights  20.7% net sales growth at Mueller Technologies; however, Mueller Co. net sales declined slightly, impacted by lower international shipments and severe weather conditions in the west  Both Mueller Co. and Mueller Technologies improved adjusted operating margin and adjuste

  6. Slide 6: Consolidated Non-GAAP Results

    CONSOLIDATED NON-GAAP RESULTS ■ Increased net sales 1.3 percent to $199.7 million as compared with $197.2 million last Second Quarter 2017 2016 year. Net sales $ 199.7 $ 197.2 ■ Adjusted gross margin increased 100 basis points in the quarter Adj. gross profit $ 62.2 $ 59.3 ■ Both Mueller Co. and Mue

  7. Slide 7: Mueller Co. Segment Non-GAAP Results

    MUELLER CO. SEGMENT NON-GAAP RESULTS Net sales ■ Net sales decreased $0.6 million to $181.6 million, as Second Quarter 2017 2016 compared with $182.2 million last year Net sales $ 181.6 $ 182.2 Adjusted operating income Adj. operating income $ 35.9 $ 35.3 ■ Increased adjusted operating income and ad

  8. Slide 8: Mueller Technologies Segment Non-GAAP Results

    MUELLER TECHNOLOGIES SEGMENT NON-GAAP RESULTS Net sales Second Quarter 2017 2016 ■ Net sales increased 20.7 percent to $18.1 million, as compared with $15.0 million last year Net sales $ 18.1 $ 15.0 Warranty Charge Adj. operating loss $ (3.8) $ (4.9) ■ Took a discrete warranty charge of $9.8 million

  9. Slide 9: Net Debt

    NET DEBT $ millions $ in millions March 31, 2017 Net Debt ABL Revolver (LIBOR + 125 basis points) $ 0.0 $500.0 $450.0 $93.6 Term Loan B (LIBOR* + 250 basis points) 480.5 $400.0 Other 1.3 $350.0 $328.3 $300.0 Total Debt $481.8 $250.0 $392.6 $200.0 $150.0 Net debt leverage 0.9x $100.0 $153.5 $50.0 Exc

  10. Slide 10: Second Quarter Key Operating Take Aways

    Second Quarter Key Operating Take Aways  Mueller Technologies AMI business grows by 40%; sixth consecutive quarter of year-over-year double digit growth in our AMI product line  Fourth consecutive quarter of improved adjusted operating performance year- over-year at Mueller Technologies.  Both se

  11. Slide 11: Third Quarter and Full Year Outlook

    Third Quarter and Full Year Outlook  2017 third quarter consolidated net sales percentage growth expected in the low-to-mid single digits  With tougher comp in AMI products and the lower pre-buy in advance of the effective date of the price increase at Mueller Co.  2017 third quarter consolidated

  12. Slide 12: Supplemental Data

    Supplemental Data PAGE 12

  13. Slide 13: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended March 31, 2017 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 181.6 $ 18.1 $ — $ 199.7 Gross profit $ 58.9 $ (6.5) $ — $ 52.4 Selling, genera

  14. Slide 14: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended March 31, 2017 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 73.3 Less income from discontinued operations (68.6) Interest expense, net (1)

  15. Slide 15: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended March 31, 2016 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 182.2 $ 15.0 $ — $ 197.2 Gross profit $ 57.7 $ 1.6 $ — $ 59.3 Selling, general

  16. Slide 16: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Quarter ended March 31, 2016 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 15.7 Less income from discontinued operations (5.4) Interest expense, net (1)

  17. Slide 17: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Six months ended March 31, 2017 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 327.9 $ 39.0 $ — $ 366.9 Gross profit $ 106.4 $ (2.3) $ — $ 104.1 Selling, g

  18. Slide 18: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Six months ended March 31, 2017 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 80.0 Less income from discontinued operations (69.9) Interest expense, net

  19. Slide 19: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Six months ended March 31, 2016 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 326.9 $ 33.4 $ — $ 360.3 Gross profit $ 101.7 $ 5.2 $ — $ 106.9 Selling, gen

  20. Slide 20: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures

    SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES Six months ended March 31, 2016 Mueller Mueller Co. Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 21.9 Less income from discontinued operations (7.6) Interest expense, net (

  21. Slide 21: Q&A

    Q&A PAGE 21

Mueller Water Products — Q2 2017 Earnings Presentation on 6ix