Mueller Water Products, Inc 8-K, filed Jan 19, 2022
Mueller Water Products, Inc. (MWA)
8-K
2022-01-19
For: 2022-01-18
View Original
Added on
April 11, 2026
About this 8-K
Mueller Water Products, Inc filed this 8-K on January 19, 2022, reporting on events of January 18, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): January 18, 2022
(Exact Name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of Principal Executive Offices)
(Registrant's telephone number, including area code)
Not applicable.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
| Emerging growth company | ||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
Item 7.01. Regulation FD Disclosure.
As previously announced, Mueller Water Products, Inc. (“we”, "our" or the "Company") implemented a realignment of our operations and management structure effective as of October 1, 2021 to better support our business strategy. As a result, we will now report our financial results in two reportable segments: Water Flow Solutions and Water Management Solutions. Our Water Flow Solutions segment includes iron gate valves, specialty valves and service brass products. Our Water Management Solutions segment includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products. Previously, we reported results in two segments: Infrastructure and Technologies.
We are furnishing this Form 8-K under Regulation FD to provide a description of our new segments and to present summary financial information and historical data on a basis consistent with our new structure. These recast historical financial results are unaudited and may change during the course of quarterly reviews and the Company's annual audit. Beginning with the fiscal quarter ended December 31, 2021, our financial statements will reflect the new reporting structure with prior periods adjusted accordingly. This recasting has no effect on the Company's previously reported consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: January 18, 2022 | MUELLER WATER PRODUCTS, INC. | |||||||||||||
| By: | /s/ Marietta Edmunds Zakas | |||||||||||||
| Marietta Edmunds Zakas | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Quarter ended September 30, 2021 | ||||||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | |||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||
| GAAP results: | ||||||||||||||||||||||||||
| Net sales | $ | 164.9 | $ | 130.7 | $ | — | $ | 295.6 | ||||||||||||||||||
| Gross profit | $ | 50.4 | $ | 35.9 | $ | — | $ | 86.3 | ||||||||||||||||||
| Selling, general and administrative expenses | 22.5 | 21.9 | 12.2 | 56.6 | ||||||||||||||||||||||
| Strategic reorganization and other charges | — | 0.1 | 1.8 | 1.9 | ||||||||||||||||||||||
Operating income (loss) | $ | 27.9 | $ | 13.9 | $ | (14.0) | $ | 27.8 | ||||||||||||||||||
| Operating margin | 16.9 | % | 10.6 | % | 9.4 | % | ||||||||||||||||||||
| Capital expenditures | $ | 13.4 | $ | 3.2 | $ | — | $ | 16.6 | ||||||||||||||||||
| Non-GAAP results: | ||||||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | ||||||||||||||||||||||||||
| Operating income (loss) | $ | 27.9 | $ | 13.9 | $ | (14.0) | $ | 27.8 | ||||||||||||||||||
| Strategic reorganization and other charges | — | 0.1 | 1.8 | 1.9 | ||||||||||||||||||||||
| Adjusted operating income (loss) | 27.9 | 14.0 | (12.2) | 29.7 | ||||||||||||||||||||||
| Pension benefit other than service | — | — | 0.9 | 0.9 | ||||||||||||||||||||||
| Depreciation and amortization | 7.7 | 7.3 | — | 15.0 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 35.6 | $ | 21.3 | $ | (11.3) | $ | 45.6 | ||||||||||||||||||
| Adjusted operating margin | 16.9 | % | 10.7 | % | 10.0 | % | ||||||||||||||||||||
| Adjusted EBITDA margin | 21.6 | % | 16.3 | % | 15.4 | % | ||||||||||||||||||||
| Quarter ended September 30, 2020 | ||||||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | |||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||
| GAAP results: | ||||||||||||||||||||||||||
| Net sales | $ | 145.9 | $ | 119.4 | $ | — | $ | 265.3 | ||||||||||||||||||
| Gross profit | $ | 51.0 | $ | 42.9 | $ | — | $ | 93.9 | ||||||||||||||||||
| Selling, general and administrative expenses | 19.9 | 19.5 | 12.7 | 52.1 | ||||||||||||||||||||||
| Strategic reorganization and other charges | — | 0.3 | 0.8 | 1.1 | ||||||||||||||||||||||
| Operating income (loss) | $ | 31.1 | $ | 23.1 | $ | (13.5) | $ | 40.7 | ||||||||||||||||||
| Operating margin | 21.3 | % | 19.3 | % | 15.3 | % | ||||||||||||||||||||
| Capital expenditures | $ | 13.2 | $ | 3.2 | $ | 0.1 | $ | 16.5 | ||||||||||||||||||
| Non-GAAP results: | ||||||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | ||||||||||||||||||||||||||
| Operating income (loss) | $ | 31.1 | $ | 23.1 | $ | (13.5) | $ | 40.7 | ||||||||||||||||||
| Strategic reorganization and other charges | — | 0.3 | 0.8 | 1.1 | ||||||||||||||||||||||
| Adjusted operating income (loss) | 31.1 | 23.4 | (12.7) | 41.8 | ||||||||||||||||||||||
| Pension benefit other than service | — | — | 0.8 | 0.8 | ||||||||||||||||||||||
| Depreciation and amortization | 7.6 | 7.3 | 0.1 | 15.0 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 38.7 | $ | 30.7 | $ | (11.8) | $ | 57.6 | ||||||||||||||||||
| Adjusted operating margin | 21.3 | % | 19.6 | % | 15.8 | % | ||||||||||||||||||||
| Adjusted EBITDA margin | 26.5 | % | 25.7 | % | 21.7 | % | ||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Quarter ended June 30, 2021 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 177.0 | $ | 133.5 | $ | — | $ | 310.5 | |||||||||||||||
| Gross profit | $ | 61.2 | $ | 44.2 | $ | — | $ | 105.4 | |||||||||||||||
| Selling, general and administrative expenses | 21.0 | 22.9 | 14.9 | 58.8 | |||||||||||||||||||
| Strategic reorganization and other charges | — | 0.2 | 3.7 | 3.9 | |||||||||||||||||||
| Operating income (loss) | $ | 40.2 | $ | 21.1 | $ | (18.6) | $ | 42.7 | |||||||||||||||
| Operating margin | 22.7 | % | 15.8 | % | 13.8 | % | |||||||||||||||||
| Capital expenditures | $ | 11.5 | $ | 3.5 | $ | — | $ | 15.0 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 40.2 | $ | 21.1 | $ | (18.6) | $ | 42.7 | |||||||||||||||
| Strategic reorganization and other charges | — | 0.2 | 3.7 | 3.9 | |||||||||||||||||||
| Adjusted operating income (loss) | 40.2 | 21.3 | (14.9) | 46.6 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.8 | 0.8 | |||||||||||||||||||
| Depreciation and amortization | 7.9 | 7.2 | 0.1 | 15.2 | |||||||||||||||||||
| Adjusted EBITDA | $ | 48.1 | $ | 28.5 | $ | (14.0) | $ | 62.6 | |||||||||||||||
| Adjusted operating margin | 22.7% | 16.0 | % | 15.0 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 27.2% | 21.3 | % | 20.2 | % | ||||||||||||||||||
| Quarter ended June 30, 2020 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 127.6 | $ | 100.9 | $ | — | $ | 228.5 | |||||||||||||||
| Gross profit | $ | 44.8 | $ | 30.9 | $ | — | $ | 75.7 | |||||||||||||||
| Selling, general and administrative expenses | 17.5 | 18.2 | 11.4 | 47.1 | |||||||||||||||||||
| Strategic reorganization and other charges | — | — | 8.6 | 8.6 | |||||||||||||||||||
| Operating income (loss) | $ | 27.3 | $ | 12.7 | $ | (20.0) | $ | 20.0 | |||||||||||||||
| Operating margin | 21.4 | % | 12.6 | % | 8.8 | % | |||||||||||||||||
| Capital expenditures | $ | 11.5 | $ | 2.4 | $ | — | $ | 13.9 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 27.3 | $ | 12.7 | $ | (20.0) | $ | 20.0 | |||||||||||||||
| Strategic reorganization and other charges | — | — | 8.6 | 8.6 | |||||||||||||||||||
| Adjusted operating income (loss) | 27.3 | 12.7 | (11.4) | 28.6 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.7 | 0.7 | |||||||||||||||||||
| Depreciation and amortization | 7.3 | 7.2 | — | 14.5 | |||||||||||||||||||
| Adjusted EBITDA | $ | 34.6 | $ | 19.9 | $ | (10.7) | $ | 43.8 | |||||||||||||||
| Adjusted operating margin | 21.4% | 12.6 | % | 12.5 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 27.1% | 19.7 | % | 19.2 | % | ||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Quarter ended March 31, 2021 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
Net sales (1) | $ | 147.1 | $ | 120.4 | $ | — | $ | 267.5 | |||||||||||||||
| Gross profit | $ | 49.3 | $ | 39.1 | $ | — | $ | 88.4 | |||||||||||||||
| Selling, general and administrative expenses | 19.6 | 21.5 | 13.1 | 54.2 | |||||||||||||||||||
Strategic reorganization and other (credits) charges (2) | — | (0.7) | 1.5 | 0.8 | |||||||||||||||||||
Operating income (loss) (1) | $ | 29.7 | $ | 18.3 | $ | (14.6) | $ | 33.4 | |||||||||||||||
| Operating margin | 20.2 | % | 15.2 | % | 12.5 | % | |||||||||||||||||
| Capital expenditures | $ | 13.8 | $ | 1.7 | $ | — | $ | 15.5 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 29.7 | $ | 18.3 | $ | (14.6) | $ | 33.4 | |||||||||||||||
| Strategic reorganization and other (credits) charges | — | (0.7) | 1.5 | 0.8 | |||||||||||||||||||
| Inventory restructuring write-down | 2.4 | — | — | 2.4 | |||||||||||||||||||
| Benefit of one-month results related to elimination of reporting lag | — | (1.4) | — | (1.4) | |||||||||||||||||||
| Adjusted operating income (loss) | 32.1 | 16.2 | (13.1) | 35.2 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.8 | 0.8 | |||||||||||||||||||
| Depreciation and amortization | 7.5 | 7.2 | — | 14.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 39.6 | $ | 23.4 | $ | (12.3) | $ | 50.7 | |||||||||||||||
Adjusted operating margin (3) | 21.8% | 14.2% | 13.5% | ||||||||||||||||||||
Adjusted EBITDA margin (3) | 26.9% | 20.5% | 19.4% | ||||||||||||||||||||
| (1) As a result of the elimination of the one-month reporting lag for Krausz Industries, the three month period ended March 31, 2021 includes an additional $6.0 million of Net sales and an additional $1.4 million in Operating income within Water Management Solutions and Consolidated. | |||||||||||||||||||||||
| (2) For the three month period ended March 31, 2021, Gross profit includes $2.4 million in Inventory write-downs and Strategic reorganization and other charges include $0.9 million in termination benefits, both associated with the announced closures of our facilities in Aurora, Illinois, and Surrey, British Columbia, Canada. | |||||||||||||||||||||||
| (3) For the three month period ended March 31, 2021, the denominator in the adjusted margin calculations shown for Water Management Solutions and Consolidated excludes Net sales of $6.0 million associated with the elimination of the one-month reporting lag for Krausz Industries. | |||||||||||||||||||||||
| Quarter ended March 31, 2020 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 145.5 | $ | 112.2 | $ | — | $ | 257.7 | |||||||||||||||
| Gross profit | $ | 46.7 | $ | 39.3 | $ | — | $ | 86.0 | |||||||||||||||
| Selling, general and administrative expenses | 19.1 | 20.8 | 9.4 | 49.3 | |||||||||||||||||||
| Strategic reorganization and other charges | — | 0.4 | 0.5 | 0.9 | |||||||||||||||||||
| Operating income (loss) | $ | 27.6 | $ | 18.1 | $ | (9.9) | $ | 35.8 | |||||||||||||||
| Operating margin | 19.0 | % | 16.1 | % | 13.9 | % | |||||||||||||||||
| Capital expenditures | $ | 19.3 | $ | 2.6 | $ | 0.2 | $ | 22.1 | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 27.6 | $ | 18.1 | $ | (9.9) | $ | 35.8 | |||||||||||||||
| Strategic reorganization and other charges | — | 0.4 | 0.5 | 0.9 | |||||||||||||||||||
| Adjusted operating income (loss) | 27.6 | 18.5 | (9.4) | 36.7 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.8 | 0.8 | |||||||||||||||||||
| Depreciation and amortization | 7.0 | 7.2 | 0.1 | 14.3 | |||||||||||||||||||
| Adjusted EBITDA | $ | 34.6 | $ | 25.7 | $ | (8.5) | $ | 51.8 | |||||||||||||||
| Adjusted operating margin | 19.0% | 16.5 | % | 14.2 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 23.8% | 22.9 | % | 20.1 | % | ||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Quarter ended December 31, 2020 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 128.8 | $ | 108.6 | $ | — | $ | 237.4 | |||||||||||||||
| Gross profit | $ | 41.9 | $ | 36.5 | $ | — | $ | 78.4 | |||||||||||||||
| Selling, general and administrative expenses | 18.7 | 19.5 | 11.0 | 49.2 | |||||||||||||||||||
| Strategic reorganization and other charges | 0.1 | — | 1.3 | 1.4 | |||||||||||||||||||
| Operating income (loss) | $ | 23.1 | $ | 17.0 | $ | (12.3) | $ | 27.8 | |||||||||||||||
| Operating margin | 17.9 | % | 15.7 | % | 11.7 | % | |||||||||||||||||
| Capital expenditures | $ | 12.3 | $ | 3.2 | $ | 0.1 | $ | 15.6 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 23.1 | $ | 17.0 | $ | (12.3) | $ | 27.8 | |||||||||||||||
| Strategic reorganization and other charges | 0.1 | — | 1.3 | 1.4 | |||||||||||||||||||
| Adjusted operating income (loss) | 23.2 | 17.0 | (11.0) | 29.2 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.8 | 0.8 | |||||||||||||||||||
| Depreciation and amortization | 7.4 | 7.2 | 0.1 | 14.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 30.6 | $ | 24.2 | $ | (10.1) | $ | 44.7 | |||||||||||||||
| Adjusted operating margin | 18.0% | 15.7 | % | 12.3 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 23.8% | 22.3 | % | 18.8 | % | ||||||||||||||||||
| Quarter ended December 31, 2019 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 113.2 | $ | 99.4 | $ | — | $ | 212.6 | |||||||||||||||
| Gross profit | $ | 37.5 | $ | 35.1 | $ | — | $ | 72.6 | |||||||||||||||
| Selling, general and administrative expenses | 18.6 | 20.3 | 11.0 | 49.9 | |||||||||||||||||||
| Strategic reorganization and other charges | — | — | 2.4 | 2.4 | |||||||||||||||||||
| Operating income (loss) | $ | 18.9 | $ | 14.8 | $ | (13.4) | $ | 20.3 | |||||||||||||||
| Operating margin | 16.7 | % | 14.9 | % | 9.5 | % | |||||||||||||||||
| Capital expenditures | $ | 12.6 | $ | 2.5 | $ | 0.1 | $ | 15.2 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 18.9 | $ | 14.8 | $ | (13.4) | $ | 20.3 | |||||||||||||||
| Strategic reorganization and other charges | — | — | 2.4 | 2.4 | |||||||||||||||||||
| Adjusted operating income (loss) | 18.9 | 14.8 | (11.0) | 22.7 | |||||||||||||||||||
| Pension benefit other than service | — | — | 0.7 | 0.7 | |||||||||||||||||||
| Depreciation and amortization | 7.0 | 7.0 | — | 14.0 | |||||||||||||||||||
| Adjusted EBITDA | $ | 25.9 | $ | 21.8 | $ | (10.3) | $ | 37.4 | |||||||||||||||
| Adjusted operating margin | 16.7% | 14.9 | % | 10.7 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 22.9% | 21.9 | % | 17.6 | % | ||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Year ended September 30, 2021 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
Net sales (1) | $ | 617.8 | $ | 493.2 | $ | — | $ | 1,111.0 | |||||||||||||||
Gross profit (2) | $ | 202.8 | $ | 155.7 | $ | — | $ | 358.5 | |||||||||||||||
| Selling, general and administrative expenses | 81.8 | 85.8 | 51.2 | 218.8 | |||||||||||||||||||
Strategic reorganization and other charges (credits) (3) | 0.1 | (0.4) | 8.3 | 8.0 | |||||||||||||||||||
Operating income (loss) (1) | $ | 120.9 | $ | 70.3 | $ | (59.5) | $ | 131.7 | |||||||||||||||
| Operating margin | 19.6 | % | 14.3 | % | 11.9 | % | |||||||||||||||||
| Capital expenditures | $ | 51.0 | $ | 11.6 | $ | 0.1 | $ | 62.7 | |||||||||||||||
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 120.9 | $ | 70.3 | $ | (59.5) | $ | 131.7 | |||||||||||||||
| Strategic reorganization and other charges (credits) | 0.1 | (0.4) | 8.3 | 8.0 | |||||||||||||||||||
| Inventory restructuring write-down | 2.4 | — | — | 2.4 | |||||||||||||||||||
| Benefit of one-month results related to elimination of reporting lag | — | (1.4) | — | (1.4) | |||||||||||||||||||
| Adjusted operating income (loss) | 123.4 | 68.5 | (51.2) | 140.7 | |||||||||||||||||||
| Pension benefit other than service | — | — | 3.3 | 3.3 | |||||||||||||||||||
| Depreciation and amortization | 30.5 | 28.9 | 0.2 | 59.6 | |||||||||||||||||||
| Adjusted EBITDA | $ | 153.9 | $ | 97.4 | $ | (47.7) | $ | 203.6 | |||||||||||||||
Adjusted operating margin (4) | 20.0% | 14.1 | % | 12.7 | % | ||||||||||||||||||
Adjusted EBITDA margin (4) | 24.9% | 20.0 | % | 18.4 | % | ||||||||||||||||||
| (1) As a result of the elimination of the one-month reporting lag for Krausz Industries, the year ended September 30, 2021 includes an additional $6.0 million of Net sales, and an additional $1.4 million in Operating income within Water Management Solutions and Consolidated. | |||||||||||||||||||||||
| (2) Gross profit for Water Flow Solutions includes $2.4 million in Inventory write-downs associated with our announced plant closures in Aurora, Illinois and Surrey, British Columbia, Canada. | |||||||||||||||||||||||
| (3) Strategic reorganization and other charges include termination benefits associated with our announced plant closures in Aurora, Illinois and Surrey, British Columbia, Canada, the Albertville tragedy, and certain transaction-related costs, partially offset by a one-time settlement gain in connection with an indemnification from a previously owned property. | |||||||||||||||||||||||
| (4) The denominator in the adjusted margin calculations shown for Water Management Solutions and Consolidated excludes Net sales of $6.0 million associated with the elimination of the one-month reporting lag for Krausz Industries. | |||||||||||||||||||||||
| Year ended September 30, 2020 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| GAAP results: | |||||||||||||||||||||||
| Net sales | $ | 532.2 | $ | 431.9 | $ | — | $ | 964.1 | |||||||||||||||
| Gross profit | $ | 180.0 | $ | 148.2 | $ | — | $ | 328.2 | |||||||||||||||
| Selling, general and administrative expenses | 75.1 | 78.8 | 44.5 | 198.4 | |||||||||||||||||||
| Strategic reorganization and other charges | — | 0.7 | 12.3 | 13.0 | |||||||||||||||||||
| Operating income (loss) | $ | 104.9 | $ | 68.7 | $ | (56.8) | $ | 116.8 | |||||||||||||||
| Operating margin | 19.7 | % | 15.9 | % | 12.1 | % | |||||||||||||||||
| Capital expenditures | $ | 57.3 | $ | 10.1 | $ | 0.3 | $ | 67.7 | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
RECAST SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP
TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Non-GAAP results: | |||||||||||||||||||||||
| Adjusted operating income (loss) and EBITDA: | |||||||||||||||||||||||
| Operating income (loss) | $ | 104.9 | $ | 68.7 | $ | (56.8) | $ | 116.8 | |||||||||||||||
| Strategic reorganization and other charges | — | 0.7 | 12.3 | 13.0 | |||||||||||||||||||
| Adjusted operating income (loss) | 104.9 | 69.4 | (44.5) | 129.8 | |||||||||||||||||||
| Pension benefit other than service | — | — | 3.0 | 3.0 | |||||||||||||||||||
| Depreciation and amortization | 28.9 | 28.7 | 0.2 | 57.8 | |||||||||||||||||||
| Adjusted EBITDA | $ | 133.8 | $ | 98.1 | $ | (41.3) | $ | 190.6 | |||||||||||||||
| Adjusted operating margin | 19.7% | 16.1 | % | 13.5 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 25.1% | 22.7 | % | 19.8 | % | ||||||||||||||||||
In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States (“GAAP”), the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical tools such that securities analysts, investors and other interested parties should not consider any of these non-GAAP measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
The Company presents adjusted net income, adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin as performance measures because management uses these measures in evaluating the Company’s underlying performance on a consistent basis across periods and in making decisions about operational strategies. Management also believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s recurring performance.