Mueller Water Products · NYSE:MWA
Mueller Water Products — Q2 2024 Earnings Presentation
23 slides from Mueller Water Products's earnings presentation, May 7, 2024
Slide 1: Where Intelligence Meets Infrastructure - Earnings Conference Call
Where Intelligence Meets Infrastructure® Earnings Conference Call 2024 Second Quarter March 31, 2024 May 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: Second Quarter Highlights
Second Quarter Highlights • Fantastic Q2 reflecting the progress teams have made executing Fiscal 2024 operational and commercial initiatives to deliver long-term sustainable Performance vs. Prior Year growth Q2 YTD • Achieved record quarterly net sales with a strong sequential increase in volumes s
Slide 5: Considerations for 2024
Considerations for 2024 • Increasing annual guidance for net sales and adjusted EBITDA, reflecting strong first-half performance and order activity across most product lines − Believe overall end market demand is healthy; municipal repair and replacement activity remains very resilient and the new r
Slide 6: Consolidated GAAP Results (Q2 FY2024)
Consolidated GAAP Results (Q2 FY2024) Gross Profit ($M) SG&A ($M) Operating Income ($M) Net Sales ($M) % of Net Sales % of Net Sales % of Net Sales +33.3% y/y -0.8% y/y +93.0% y/y +6.2% y/y +750 bps. -130 bps. +810 bps. $130.4 $353.4 $64.2 $63.7 $63.5 $332.9 $97.8 36.9% 19.3% 18.0% 18.0% 29.4% $32.9
Slide 7: Consolidated Non-GAAP Results (Q2 FY2024)
Consolidated Non-GAAP Results (Q2 FY2024) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales +98.5% y/y +70.9% y/y +114.3% y/y +880 bps. +890 bps. $82.2 $0.30 $66.7 23.3% 18.9% $48.1 $33.6 $0.14 14.4% 10.1% Q2 FY2023 Q2 FY2024 Q2 FY2023 Q2
Slide 8: Water Flow Solutions (WFS) Segment Results (Q2 FY2024)
Water Flow Solutions (WFS) Segment Results (Q2 FY2024) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) Net Sales ($M) % of Net Sales % of Net Sales +246.1% y/y +171.3% y/y +30.9% y/y +1,590 bps. +1,570 bps. $52.6 $62.4 $205.8 $157.2 25.6% 30.3% $15.2 $23.0 9.7% 14.6% Q2 FY2023 Q2 FY2024 Q2 FY202
Slide 9: Water Management Solutions (WMS) Segment Results (Q2 FY2024)
Water Management Solutions (WMS) Segment Results (Q2 FY2024) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) Net Sales ($M) % of Net Sales % of Net Sales -9.1% y/y -9.8% y/y -16.0% y/y +140 bps. +170 bps. $31.9 $175.7 $29.0 $39.6 $147.6 $35.7 18.2% 22.5% 19.6% 24.2% Q2 FY2023 Q2 FY2024 Q2 FY2023
Slide 10: Free Cash Flow (YTD Q2 FY2024)
Free Cash Flow (YTD Q2 FY2024) • Increased YTD Q2 net cash provided by operating $70.0 $62.2 activities by $84.4M to $62.2M compared with prior $60.0 year period $50.0 $40.0 − Increase primarily result of higher net income and $30.0 improvements in working capital compared with the prior year, $20.0
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) • Consolidated net sales expected to be Fiscal 2024 Metrics (1) between flat and down 2% y/y -2% to 0% − Believe municipal and new residential construction Consolidated Net Sales Growth y/y ($1,250.2M to $1,275.7M) end markets will continue to be healthy in second half of the
Slide 13: Closing Comments
Closing Comments • Excited about what we’ve accomplished so far this year, especially given the uncertainties in the external environment • Thankful for our talented and committed employees who are doing incredible work focusing on serving our customers and driving manufacturing, material and freigh
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 March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 205.8 $ 147.6 $ — $ 353.4 Gross profit $ 77.2 $
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 March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 44.3 Income tax expense (3) 14.6 Interest expe
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 March 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 157.2 $ 175.7 $ — $ 332.9 Gross profit $ 37.2 $
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 March 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 21.3 Income tax expense (3) 6.7 Interest expen
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) Six months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 347.1 $ 262.7 $ — $ 609.8 Gross profit $ 123.8 $
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) Six months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 58.6 Income tax expense (3) 17.2 Other expense 1
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) Six months ended March 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 322.8 $ 324.9 $ — $ 647.7 Gross profit $ 83.8 $ 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) Six months ended March 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 43.8 Income tax expense (3) 13.6 Interest expens
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