This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mueller Water Products Reports Fiscal 2011 Third-Quarter Results

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is headquartered in Atlanta, GA and manufactures and markets products and services that are used in the transmission and distribution of safe, clean drinking water and in water treatment facilities. Our broad product portfolio includes engineered valves, fire hydrants, pipe fittings, water meters and ductile iron pipe, which are used by municipalities, as well as the residential and non-residential construction industries. Net sales for the year ended June 30, 2011 were $1.3 billion and total employees were approximately 4,800 at June 30, 2011. The Company operates primarily through three segments: Mueller Co., U.S. Pipe and Anvil. The Company's common stock trades on the New York Stock Exchange under the ticker symbol MWA. For more information about Mueller Water Products, Inc., please visit our website at www.muellerwaterproducts.com.

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
             
June 30, September 30,
2011 2010
(in millions)
Assets:
Cash and cash equivalents $ 45.8 $ 83.7
Receivables, net 226.6 202.5
Inventories 261.0 268.4
Deferred income taxes 30.9 30.3
Other current assets   57.5     51.5  
Total current assets 621.8 636.4
 
Property, plant and equipment, net 248.3 264.4
Identifiable intangible assets 617.5 632.4
Other noncurrent assets   33.3     35.0  
 
Total assets $ 1,520.9   $ 1,568.2  
 
Liabilities and stockholders' equity:
Current portion of long-term debt $ 0.9 $ 0.7
Accounts payable 116.5 93.2
Other current liabilities   72.7     89.8  
Total current liabilities 190.1 183.7
 
Long-term debt 692.1 691.5
Deferred income taxes 168.0 165.5
Other noncurrent liabilities   68.3     122.2  
Total liabilities   1,118.5     1,162.9  
 
Commitments and contingencies
 
Series A common stock: 600,000,000 shares authorized;
155,588,525 shares and 154,708,474 shares outstanding
at June 30, 2011 and September 30, 2010, respectively 1.6 1.5
Additional paid-in capital 1,595.5 1,597.5
Accumulated deficit (1,152.0 ) (1,123.5 )
Accumulated other comprehensive loss   (42.7 )   (70.2 )
Total stockholders' equity   402.4     405.3  
 
Total liabilities and stockholders' equity $ 1,520.9   $ 1,568.2  
 
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                               
Three months ended Nine months ended
June 30, June 30,
2011 2010 2011 2010
(in millions, except per share amounts)
 
Net sales $ 366.7 $ 375.9 $ 965.6 $ 990.8
Cost of sales   296.4     305.3     795.7     826.1  
 
Gross profit   70.3     70.6     169.9     164.7  
 
Operating expenses:
Selling, general and administrative 54.7 57.2 161.5 163.0
Restructuring   1.7     0.9     5.7     11.8  
Total operating expenses   56.4     58.1     167.2     174.8  
 
Income (loss) from operations 13.9 12.5 2.7 (10.1 )
 
Interest expense, net 16.8 15.8 49.0 47.4
Loss on early extinguishment of debt   -     -     -     0.5  
 
Loss before income taxes (2.9 ) (3.3 ) (46.3 ) (58.0 )
Income tax expense (benefit)   (0.2 )   0.5     (17.8 )   (19.8 )
 
Net loss $ (2.7 ) $ (3.8 ) $ (28.5 ) $ (38.2 )
 
Net loss per share:
Basic $ (0.02 ) $ (0.02 ) $ (0.18 ) $ (0.25 )
Diluted $ (0.02 ) $ (0.02 ) $ (0.18 ) $ (0.25 )
 
Weighted average shares outstanding:
Basic   155.5     154.5     155.2     154.3  
Diluted   155.5     154.5     155.2     154.3  
 
Dividends declared per share $ 0.0175   $ 0.0175   $ 0.0525   $ 0.0525  
 
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
NINE MONTHS ENDED JUNE 30, 2011
(UNAUDITED)
                                 
 
Accumulated
Additional other
Common paid-in Accumulated comprehensive
stock capital deficit loss Total
(in millions)
 
Balance at September 30, 2010 $ 1.5 $ 1,597.5 $ (1,123.5 ) $ (70.2 ) $ 405.3
 
Net loss - - (28.5 ) - (28.5 )
Dividends declared - (8.1 ) - - (8.1 )
Stock-based compensation - 5.6 - - 5.6
Stock issued under stock compensation plans 0.1 0.5 - - 0.6
Derivative instruments - - - 3.7 3.7
Foreign currency translation - - - 3.1 3.1
Minimum pension liability   -   -     -     20.7     20.7  
 
Balance at June 30, 2011 $ 1.6 $ 1,595.5   $ (1,152.0 ) $ (42.7 ) $ 402.4  
 
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                     
Nine months ended
June 30,
2011 2010
(in millions)
Operating activities:
Net loss $ (28.5 ) $ (38.2 )
Adjustments to reconcile net loss to net cash provided
by (used in) operating activities:
Depreciation 38.4 39.9
Amortization 22.6 23.4
Non-cash restructuring - 6.1
Loss on early extinguishment of debt - 0.5
Stock-based compensation 5.6 6.7
Deferred income taxes (14.5 ) (20.3 )
Gain on disposal of assets (0.6 ) (4.9 )
Interest rate swap contracts 6.0 (0.7 )
Other, net 5.6 5.6
Changes in assets and liabilities:
Receivables (23.2 ) (10.0 )
Inventories 8.4 46.5
Other current assets and other noncurrent assets - 29.1
Accounts payable and other liabilities   (22.5 )   (48.0 )
 
Net cash provided by (used in) operating activities   (2.7 )   35.7  
 
Investing activities:
Capital expenditures (21.9 ) (21.4 )
Acquisition of business, net of cash acquired (7.9 ) -
Proceeds from sales of assets   0.9     54.5  
 
Net cash provided by (used in) investing activities   (28.9 )   33.1  
 
Financing activities:
Increase in outstanding checks - 0.6

Debt borrowings (payments), net

0.5

(47.5

)

Payment of deferred financing fees (0.4 ) -
Common stock issued 0.6 0.8
Dividends paid   (8.1 )   (8.1 )
 
Net cash used in financing activities   (7.4 )   (54.2 )
 
Effect of currency exchange rate changes on cash   1.1     1.0  
 
Net change in cash and cash equivalents (37.9 ) 15.6
Cash and cash equivalents at beginning of period   83.7     61.5  
 
Cash and cash equivalents at end of period $ 45.8   $ 77.1  
 
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES
(UNAUDITED)
(in millions, except per share amounts)
                                       
Three months ended June 30, 2011
Mueller Co. U.S. Pipe Anvil Corporate Total
GAAP results:
Net sales $ 165.8   $ 107.1   $ 93.8   $ -   $ 366.7  
 
Gross profit (loss) $ 46.7 $ (2.8 ) $ 26.6 $ (0.2 ) $ 70.3
Selling, general and administrative expenses 23.9 6.6 17.0 7.2 54.7
Restructuring   0.2     1.4     0.1     -     1.7  
Income (loss) from operations $ 22.6   $ (10.8 ) $ 9.5   $ (7.4 ) 13.9
Interest expense, net 16.8
Income tax benefit   (0.2 )
Net loss $ (2.7 )
Net loss per diluted share $ (0.02 )
 
Capital expenditures $ 4.1   $ 1.8   $ 1.8   $ -   $ 7.7  
 
Non-GAAP results:
Adjusted income (loss) from operations and EBITDA:
Income (loss) from operations $ 22.6 $ (10.8 ) $ 9.5 $ (7.4 ) $ 13.9
Restructuring   0.2     1.4     0.1     -     1.7  
Adjusted income (loss) from operations 22.8 (9.4 ) 9.6 (7.4 ) 15.6
Depreciation and amortization   11.8     4.6     3.7     0.2     20.3  
Adjusted EBITDA $ 34.6   $ (4.8 ) $ 13.3   $ (7.2 ) $ 35.9  
 
Adjusted operating margin   13.8 %   -8.8 %   10.2 %   -     4.3 %
Adjusted EBITDA margin   20.9 %   -4.5 %   14.2 %   -     9.8 %
 
Adjusted net loss:
Net loss $ (2.7 )
Restructuring, net of tax 1.0
Interest rate swap settlement costs, net of tax   1.3  
Adjusted net loss $ (0.4 )
Adjusted net loss per diluted share $ -  
 
Free cash flow:
Net cash provided by operating activities $ 12.1
Capital expenditures   (7.7 )
Free cash flow $ 4.4  
 
Net debt (end of period):
Current portion of long-term debt $ 0.9
Long-term debt   692.1  
Total debt 693.0
Less cash and cash equivalents   (45.8 )
Net debt $ 647.2  
 
 
Three months ended June 30, 2010
Mueller Co. U.S. Pipe Anvil Corporate Total
GAAP results:
Net sales $ 174.6   $ 120.2   $ 81.1   $ -   $ 375.9  
 
Gross profit (loss) $ 52.1 $ (2.7 ) $ 21.1 $ 0.1 $ 70.6
Selling, general and administrative expenses 23.3 7.7 16.6 9.6 57.2
Restructuring   -     0.9     -     -     0.9  
Income (loss) from operations $ 28.8   $ (11.3 ) $ 4.5   $ (9.5 ) 12.5
Interest expense, net 15.8
Income tax expense   0.5  
Net loss $ (3.8 )
Net loss per diluted share $ (0.02 )
 
Capital expenditures $ 2.7   $ 2.1   $ 2.0   $ -   $ 6.8  
 
Non-GAAP results:
Adjusted income (loss) from operations and EBITDA:
Income (loss) from operations $ 28.8 $ (11.3 ) $ 4.5 $ (9.5 ) $ 12.5
Restructuring   -     0.9     -     -     0.9  
Adjusted income (loss) from operations 28.8 (10.4 ) 4.5 (9.5 ) 13.4
Depreciation and amortization   12.3     4.6     3.9     0.3     21.1  
Adjusted EBITDA $ 41.1   $ (5.8 ) $ 8.4   $ (9.2 ) $ 34.5  
 
Adjusted operating margin   16.5 %   -8.7 %   5.5 %   -     3.6 %
Adjusted EBITDA margin   23.5 %   -4.8 %   10.4 %   -     9.2 %
 
Adjusted net loss:
Net loss $ (3.8 )
Tax on repatriation on Canadian earnings 2.2
Restructuring, net of tax   0.5  
Adjusted net loss $ (1.1 )
Adjusted net loss per diluted share $ (0.01 )
 
Free cash flow:
Net cash used in operating activities $ (8.6 )
Capital expenditures   (6.8 )
Free cash flow $ (15.4 )
 
Net debt (end of period):
Current portion of long-term debt $ 10.5
Long-term debt   682.2  
Total debt 692.7
Less cash and cash equivalents   (77.1 )
Net debt $ 615.6  
 
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES
(UNAUDITED)
(in millions, except per share amounts)
                                       
Nine months ended June 30, 2011
Mueller Co. U.S. Pipe Anvil Corporate Total
GAAP results:
Net sales $ 444.5   $ 257.3   $ 263.8   $ -   $ 965.6  
 
Gross profit (loss) $ 109.7 $ (13.3 ) $ 73.4 $ 0.1 $ 169.9
Selling, general and administrative expenses 67.6 21.2 50.4 22.3 161.5
Restructuring   1.2     3.3     1.2     -     5.7  
Income (loss) from operations $ 40.9   $ (37.8 ) $ 21.8   $ (22.2 ) 2.7
Interest expense, net 49.0
Income tax benefit   (17.8 )
Net loss $ (28.5 )
Net loss per diluted share $ (0.18 )
 
Capital expenditures $ 11.0   $ 6.0   $ 4.4   $ 0.5   $ 21.9  
 
Non-GAAP results:
Adjusted income (loss) from operations and EBITDA:
Income (loss) from operations $ 40.9 $ (37.8 ) $ 21.8 $ (22.2 ) $ 2.7
Restructuring   1.2     3.3     1.2     -     5.7  
Adjusted income (loss) from operations 42.1 (34.5 ) 23.0 (22.2 ) 8.4
Depreciation and amortization   35.7     13.8     10.9     0.6     61.0  
Adjusted EBITDA $ 77.8   $ (20.7 ) $ 33.9   $ (21.6 ) $ 69.4  
 
Adjusted operating margin   9.5 %   -13.4 %   8.7 %   -     0.9 %
Adjusted EBITDA margin   17.5 %   -8.0 %   12.9 %   -     7.2 %
 
Adjusted net loss:
Net loss $ (28.5 )
Interest rate swap settlement costs, net of tax 3.7
Restructuring, net of tax   3.5  
Adjusted net loss $ (21.3 )
Adjusted net loss per diluted share $ (0.14 )
 
Free cash flow:
Net cash used in operating activities $ (2.7 )
Capital expenditures   (21.9 )
Free cash flow $ (24.6 )
 
Net debt (end of period):
Current portion of long-term debt $ 0.9
Long-term debt   692.1  
Total debt 693.0
Less cash and cash equivalents   (45.8 )
Net debt $ 647.2  
 
 
Nine months ended June 30, 2010
Mueller Co. U.S. Pipe Anvil Corporate Total
GAAP results:
Net sales $ 449.1   $ 282.9   $ 258.8   $ -   $ 990.8  
 
Gross profit (loss) $ 121.2 $ (19.6 ) $ 63.0 $ 0.1 $ 164.7
Selling, general and administrative expenses 66.7 22.3 48.0 26.0 163.0
Restructuring   0.1     11.6     0.1     -     11.8  
Income (loss) from operations $ 54.4   $ (53.5 ) $ 14.9   $ (25.9 ) (10.1 )
Interest expense, net 47.4
Loss on early extinguishment of debt 0.5
Income tax benefit   (19.8 )
Net loss $ (38.2 )
Net loss per diluted share $ (0.25 )
 
Capital expenditures $ 9.8   $ 7.4   $ 4.1   $ 0.1   $ 21.4  
 
Non-GAAP results:
Adjusted income (loss) from operations and EBITDA:
Income (loss) from operations $ 54.4 $ (53.5 ) $ 14.9 $ (25.9 ) $ (10.1 )
Restructuring   0.1     11.6     0.1     -     11.8  
Adjusted income (loss) from operations 54.5 (41.9 ) 15.0 (25.9 ) 1.7
Depreciation and amortization   37.2     14.0     11.5     0.6     63.3  
Adjusted EBITDA $ 91.7   $ (27.9 ) $ 26.5   $ (25.3 ) $ 65.0  
 
Adjusted operating margin   12.1 %   -14.8 %   5.8 %   -     0.2 %
Adjusted EBITDA margin   20.4 %   -9.9 %   10.2 %   -     6.6 %
 
Adjusted net loss
Net loss $ (38.2 )
Restructuring, net of tax 7.1
Tax on repatriation on Canadian earnings 2.2
Interest rate swap settlement costs, net of tax (0.7 )
Loss on early extinguishment of debt, net of tax   0.3  
Adjusted net loss $ (29.3 )
Adjusted net loss per diluted share $ (0.19 )
 
Free cash flow:
Net cash provided by operating activities $ 35.7
Capital expenditures   (21.4 )
Free cash flow $ 14.3  
 
Net debt (end of period):
Current portion of long-term debt $ 10.5
Long-term debt   682.2  
Total debt 692.7
Less cash and cash equivalents   (77.1 )
Net debt $ 615.6  
 




6 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,977.35 -148.77 -0.82%
S&P 500 2,113.06 -7.73 -0.36%
NASDAQ 5,078.5520 -19.4240 -0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs