Mueller Water Products · NYSE:MWA
Mueller Water Products — Q1 2019 Earnings Presentation
19 slides from Mueller Water Products's earnings presentation, Feb 5, 2019
Slide 1: Earnings Conference Call For The First Quarter Ended December 31, 2018
Where Intelligence Meets Infrastructure® Earnings Conference Call For The First Quarter Ended December 31, 2018 February 5, 2019 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 under GAAP, the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical t
Slide 3: Forward-Looking Statements
Forward-Looking Statements This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that address activities, events or developments that we intend, expect, plan, project,
Slide 4: First Quarter Highlights
First Quarter Highlights • 8.1% organic net sales growth driven by higher shipment volumes and pricing • 22.4% increase in adjusted operating income with 20.4% adjusted EBITDA growth driven by sales growth and improved manufacturing performance • Both Infrastructure and Technologies reported growth
Slide 5: Consolidated GAAP Results
Consolidated GAAP Results • Net sales increased 8.1%, or $14.5 million, to $192.8 million driven by higher volumes at both First Quarter 2019 2018 Infrastructure and Technologies, as well as higher pricing at Infrastructure Net sales $ 192.8 $ 178.3 • Gross profit increased 8.5% to $60.1 million yie
Slide 6: Consolidated Non-GAAP Results
Consolidated Non-GAAP Results • Adjusted operating income increased 22.4%, or $3.5 million, to $19.1 million compared with $15.6 First Quarter 2019 2018 million Adj. operating income $ 19.1 $ 15.6 • Both segments contributed to the improvement in operating performance which was primarily due to Adj.
Slide 7: Infrastructure Results
Infrastructure Results • Net sales grew 7.4% to $172.0 million for the quarter compared with $160.1 million last year First Quarter 2019 2018 • Increase driven by higher shipment volumes and Net sales $ 172.0 $ 160.1 higher pricing • Adjusted operating income of $30.9 million Adj. operating income $
Slide 8: Technologies Results
Technologies Results • Net sales increased 14.3% to $20.8 million in the quarter as compared with $18.2 million last year First Quarter 2019 2018 • Primarily driven by higher volumes at Mueller Net sales $ 20.8 $ 18.2 Systems • Adjusted operating loss improved $0.9 million Adj. operating loss $ (3.7
Slide 9: Free Cash Flow
Free Cash Flow $15.0 • Cash flow from operating activities improved $10.0 $9.9 $9.4 million to $9.9 million compared to the prior year $5.0 $0.5 • Invested $15.9 million in capital expenditures $0.0 in first quarter as compared with $6.4 million $ in millions ($15.9) ($6.4) ($5.0) in 2018 to upgrade
Slide 10: Net Debt
Net Debt $500 • Total debt of $445.6 million and cash and cash $445.6 $445.0 $450 equivalents of $198.8 million, after Krausz $400 acquisition $350 $198.8 • Net debt leverage was 1.3x at December 31, 2018 $300 • $94 million of excess availability under the ABL at $ in millions $347.1 $250 December 3
Slide 11: First Quarter Comments and 2019 Full Year Outlook
First Quarter Comments and 2019 Full Year Outlook
Slide 12: Krausz Industries
Krausz Industries Krausz is a leader in pipe repair couplings, grips and clamps with a suite of products that can address virtually any water and wastewater pipe connection or repair scenario Broad Portfolio of Products HYMAX Coupling HYMAX Grip HYMAX Versa HYMAX Clamp Two-bolt wide-range Two-bolt w
Slide 13: 2019 Full Year Outlook
2019 Full Year Outlook Full year 2019 expectations reflect the current business environment and include the impact from the acquisition of Krausz Industries Ltd., which will commence January 1, 2019 • Growth in all end markets with municipal spending growth in the low to mid-single digit range, resi
Slide 14: Q&A
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Slide 15: Supplemental Data
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Slide 16: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures
Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures (UNAUDITED) Quarter ended December 31, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 172.0 $ 20.8 $ — $ 192.8 Gross profit $ 56.8 $ 3.3 $ — $ 60.1 Selling
Slide 17: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures
Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures (UNAUDITED) Quarter ended December 31, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net loss $ (21.0) Income tax expense (benefit) (1) (5.9) Interest expense, net (1
Slide 18: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures
Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures (UNAUDITED) Quarter ended December 31, 2017 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 160.1 $ 18.2 $ — $ 178.3 Gross profit $ 52.5 $ 2.9 $ — $ 55.4 Selling
Slide 19: Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures
Segment Results and Reconciliation of GAAP to Non-GAAP Performance Measures (UNAUDITED) Quarter ended December 31, 2017 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 55.1 Income tax expense (1) (39.8) Interest expense, net (1) 5.2 Pen
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