Mueller Water Products · NYSE:MWA
Mueller Water Products — Investor Presentation (December 2019)
32 slides from Mueller Water Products's investor presentation, Dec 18, 2019
Slide 1: Where Intelligence Meets Infrastructure - Investor Presentation
Where Intelligence Meets Infrastructure® Investor Presentation December 18, 2019
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 presentation 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, estimate, plan,
Slide 4: Mueller Water Products at a Glance
Mueller Water Products at a Glance HISTORY LTM FINANCIALS END MARKETS* FISCAL YEAR 2019 • Founded 160 years ago as of September 30, 2019 <10% Natural gas utilities % of • Spun off from Walter $ in millions Total Industries in 2006 Net sales $968.0 60-65% • Listed on NYSE (MWA) Repair and replacement
Slide 5: Investment Highlights
Investment Highlights • Leading brand and municipal market specification positions • Large installed base of iron gate valves and fire hydrants STRONG COMPETITIVE POSITION • Comprehensive distribution network and strong end-user relationships • Low-cost manufacturing operations using lost foam proce
Slide 6: Focused Strategy and Execution Driving Results
Focused Strategy and Execution Driving Results Where Intelligence Meets Infrastructure® Committed to delivering sustainable and efficient solutions for our customers and the work they do by bridging the gap between intelligence and infrastructure, helping our customers deliver the most important wat
Slide 7: Products and Markets
Products and Markets (MUELLER) ©"
Slide 8: Our Leading Product Positions
Our Leading Product Positions FIRE IRON GATE BUTTERFLY BRASS HYDRANTS VALVES VALVES PRODUCTS PRODUCT PRODUCT PRODUCT PRODUCT #1 POSITION #1 POSITION #1 POSITION #2 POSITION A.Y. McDonald ACIPCO DeZURIK Ford Meter Box McWane Company estimates based on internal analysis and information from trade asso
Slide 9: Mueller is Uniquely Positioned to Address Utility Pain Points
Mueller is Uniquely Positioned to Address Utility Pain Points 9
Slide 10: U.S. Water Infrastructure Requires Substantial Long-Term Investment
U.S. Water Infrastructure Requires Substantial Long-Term Investment FUTURE DRINKING WATER INFRASTRUCTURE REPAIR & REPLACEMENT MARKET EXPENDITURE NEEDS(4) • Restoring existing water systems and expanding them to serve a growing TREATMENT population through 2050 will require a $1.7 trillion investment
Slide 11: Funding Water Infrastructure Repair
Funding Water Infrastructure Repair Historical Water rates compared to other utilities(1) 600 CPI Utilities (NSA 1982-1984 = 100) 500 400 300 200 100 Utility Sources of Funding 0 • Majority of utilities have service connection fees and/or capital recovery charges, with median fees of about $6,400(3)
Slide 12: Strong Need for Intelligence in Water Infrastructure
Strong Need for Intelligence in Water Infrastructure Black & Veatch 2018 Strategic Directions in the U.S. Water Industry “The true value of digital water emerges when we move from data harvesting to data science. Collecting information is good. Using data to make better decisions and plan for a safe
Slide 13: Technologies Bringing Intelligence to Water Infrastructure
Technologies Bringing Intelligence to Water Infrastructure Intelligent Water TechnologyTM is Mueller’s full-line of innovative solutions, products and services that actively diagnose, monitor and control the delivery of safe, clean drinking water to consumers and businesses SentryxTM Smart Metering
Slide 14: Modernizing Manufacturing Facilities to Drive Margins
Modernizing Manufacturing Facilities to Drive Margins • To increase sales growth and margin expansion strategies, we are prioritizing capital investments over the next two to three years to modernize our manufacturing processes, improve quality, service, employee engagement and drive non-price margi
Slide 15: Financial Performance
Financial Performance (MUELLER) ©"
Slide 16: History of Strong Financial Performance
History of Strong Financial Performance Over last five years, delivered 4.3% net sales CAGR with 9.4% adjusted EBITDA CAGR leading to a 430 bps. improvement in adjusted EBITDA margin, primarily driven by an improvement in gross margin (1) Consolidated Net Sales Consolidated Adjusted EBITDA and ($ in
Slide 17: Q4 2019 Consolidated Financial Highlights
Q4 2019 Consolidated Financial Highlights • Net sales increased 5.0%, or $12.6 million, to $266.9 million driven by the acquisition of Krausz and higher Fourth Quarter 2019 2018 pricing, partially offset by lower volumes at Infrastructure • Delivered a 50 basis point year-over-year improvement in Ne
Slide 18: Full-Year 2020 Outlook
Full-Year 2020 Outlook* Expectations for full-year 2020, which reflect the current business environment, are as follows: • Municipal spending growth in the low-single digit range, residential construction growth in the low- single digit range and natural gas distribution growth in the mid-single dig
Slide 19: Strong Balance Sheet with Significant Flexibility
Strong Balance Sheet with Significant Flexibility • Reduced debt by $1.1 billion since March 31, 2006 and $650 million since September 30, 2008 • Capital structure and net leverage position provide flexibility to support acquisitions and shareholders • Total debt of $446.3 million and cash and cash
Slide 20: Balanced and Disciplined Capital Allocation
Balanced and Disciplined Capital Allocation • Strategic investments largest use of cash including Cash Allocation since Dec. 31, 2016 capital investments to modernize our manufacturing END MARKETS* operations and enhance the technological $176M to Shareholders fundamentals in our business and acquis
Slide 21: Investment Highlights
Investment Highlights • Leading brand and municipal market specification positions • Large installed base of iron gate valves and fire hydrants STRONG COMPETITIVE POSITION • Comprehensive distribution network and strong end-user relationships • Low-cost manufacturing operations using lost foam proce
Slide 22: Questions
Questions (MUELLER) ©"
Slide 23: Supplemental Data
Supplemental Data (MUELLER) ©"
Slide 24: Segment Results and Reconciliation of Non-GAAP to GAAP - Q4 2019
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2019 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 234.7 $ 32.2 $ — $ 266.9 Gross profit $ 81.5 $ 7.3 $ — $ 88.8 Sellin
Slide 25: Segment Results and Reconciliation of Non-GAAP to GAAP - Q4 2019
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2019 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 40.2 Income tax expense (1) 11.4 Interest expense, net (1) 4.2 Walt
Slide 26: Segment Results and Reconciliation of Non-GAAP to GAAP - Q4 2018
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 223.5 $ 30.8 $ — $ 254.3 Gross profit $ 77.4 $ 8.1 $ — $ 85.5 Sellin
Slide 27: Segment Results and Reconciliation of Non-GAAP to GAAP - Q4 2018
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Quarter ended September 30, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 25.0 Loss on early extinguishment of debt 0.3 Income tax expense (1
Slide 28: Segment Results and Reconciliation of Non-GAAP to GAAP - FY2019
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2019 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 871.0 $ 97.0 $ — $ 968.0 Gross profit $ 302.9 $ 18.0 $ — $ 320.9 Sellin
Slide 29: Segment Results and Reconciliation of Non-GAAP to GAAP - FY2019
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2019 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 63.8 Income tax expense (1) 18.3 Interest expense, net (1) 19.8 Walter
Slide 30: Segment Results and Reconciliation of Non-GAAP to GAAP - FY2018
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 818.8 $ 97.2 $ — $ 916.0 Gross profit $ 284.7 $ 5.2 $ — $ 289.9 Selling
Slide 31: Segment Results and Reconciliation of Non-GAAP to GAAP - FY2018
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Year ended September 30, 2018 Infrastructure Technologies Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 105.6 Loss on early extinguishment of debt 6.5 Gain on settlement of i
Slide 32: Where Intelligence Meets Infrastructure
Where Intelligence Meets Infrastructure®
Mueller Water Products — Investor Presentation (December 2019) on 6ix