Mueller Water Products, Inc. (NYSE: MWA) today reported net sales of $251.5 million and a net loss of $109.8 million ($0.70 per diluted share) for the fiscal 2012 second quarter ended March 31, 2012, the net loss due almost entirely to the sale of its U.S. Pipe business. On April 1, 2012, the Company sold U.S. Pipe for $89.8 million in cash, subject to working capital and other adjustments, and reimbursement for certain potential liabilities estimated at $10.2 million. U.S. Pipe’s operating results have been reclassified as discontinued operations, and its assets and liabilities have been reclassified as items held for sale, for all periods presented.
Summarized consolidated results of continuing operations for the 2012 second quarter compared to the 2011 second quarter results are:
- Net sales for the 2012 second quarter increased 6.8 percent to $251.5 million from $235.5 million for the 2011 second quarter.
- Operating income for the 2012 second quarter increased to $10.6 million from $9.8 million for the 2011 second quarter. Adjusted operating income for the 2012 second quarter increased to $11.5 million from $10.9 million for the 2011 second quarter.
- Adjusted net loss per share for the 2012 second quarter improved to $0.01 from $0.02 for the 2011 second quarter.
- Adjusted EBITDA for the 2012 second quarter of $26.7 million was essentially flat with adjusted EBITDA for the 2011 second quarter.
Subsequent to the end of the quarter, the Company announced the redemption of $22.5 million in principal amount of its 8.75 percent Senior Unsecured Notes on May 18, 2012. The Company also repaid $48.0 million that was outstanding at March 31, 2012 under its asset based lending agreement.
“Since our last conference call, we have taken several significant steps to strengthen the company,” said Gregory E. Hyland, chairman, president and chief executive officer of Mueller Water Products. “We completed the divestiture of U.S. Pipe and reduced our total outstanding debt and net debt leverage. The divestiture of U.S. Pipe enables us to focus on Mueller Co.’s higher-margin base business, as well as on our newer technology businesses - Mueller Systems and Echologics.