Mueller Water Products, Inc. (NYSE: MWA) today reported net sales of $257.4 million and net income of $1.1 million for the fiscal 2014 first quarter ended December 31, 2013. The following compares fiscal 2014 first quarter results from continuing operations with those of the prior year period. In the 2014 first quarter, the Company:
- Increased net sales $12.3 million to $257.4 million from $245.1 million,
- Improved operating income 103 percent to $14.0 million from $6.9 million and adjusted operating income 86 percent to $14.1 million from $7.6 million,
- Increased net income per diluted share to $0.01 from a loss of $0.03 and increased adjusted net income per diluted share to $0.01 from a loss of $0.02, and
- Improved adjusted EBITDA 29 percent to $28.8 million from $22.4 million.
“Mueller Co. increased net sales 9.2 percent in the first quarter, with growth across most product lines, especially valves and brass products,” said Gregory E. Hyland, chairman, president and chief executive officer of Mueller Water Products. “This increase was achieved despite a decline in domestic hydrant sales volume of about 13% due to some of our distributors and end users delaying orders as they sought further clarity regarding the applicability of the Reduction of Lead in Drinking Water Act to fire hydrants. Legislation was passed in late December specifically exempting fire hydrants from the Act. Consequently, we believe the decline in hydrant sales was only a timing issue, and we expect to see year-over-year domestic sales volume improve in subsequent quarters.
“We are pleased with the year-over-year operating income improvement at Mueller Co. Adjusted operating income improved 82 percent, and adjusted operating margin improved 390 basis points to 9.7 percent. In addition, net sales of Mueller Co.'s newer technology products and services grew about 12 percent this quarter compared with last year.