NYSE$MWA

Mueller Water Products Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Achieved record net sales and increased adjusted EBITDA.

Mueller Water Products reported strong Q3 2021 results with record net sales of $310.5 million, a 35.9% increase year-over-year. Adjusted EBITDA increased by 42.9% to $62.6 million, and the company raised its full-year guidance for net sales and adjusted EBITDA growth.

  • Net sales increased by 35.9% to $310.5 million compared to the prior year quarter.
  • Operating income increased to $42.7 million, up from $20.0 million in the prior year quarter.
  • Adjusted EBITDA increased by 42.9% to $62.6 million compared to the prior year quarter.
  • The company acquired i2O Water Ltd for approximately $20 million in cash.

Headline financials

Total Revenue

$311M

Previous: $229M+35.9%
EPS (adj)

$0.18

Previous: $0.11+63.6%
Adjusted EBITDA

$62.6M

No prior period
Adjusted EBITDA Margin

20.2%

No prior period
Free Cash Flow

$14.4M

Previous: $11.2M+28.6%
Net Income

$14.4M

Previous: $11.2M+28.6%
Operating Income

$42.7M

Previous: $20M+113.5%
Gross Profit

$105M

Previous: $75.7M+39.2%
Cash & Equivalents

$229M

Previous: $171M+33.9%
Total Assets

$1.48B

Previous: $1.34B+10.7%
Stock-Based Comp

$2.7M

Previous: $1.1M+145.5%

Revenue & EPS history

Mueller · Revenue · Quarterly

$311M

Q3 2021+35.9%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Mueller · $301M total across 2 segments · Q4 2023

  • Water Flow Solutions
    $162M-10.0%
  • Water Management Solutions
    $140M-8.0%

Forward guidance

The Company is increasing its expectations and currently anticipates that consolidated net sales will increase between 14 and 16 percent as compared with the prior year. Based on our third quarter performance, backlog, and current expectations for end markets, pricing and inflation, the Company anticipates that adjusted EBITDA growth will be between 13 and 15 percent as compared with the prior year.

Tailwinds

  • Consolidated net sales are expected to increase between 14 and 16 percent compared to the prior year.
  • Adjusted EBITDA growth is anticipated to be between 13 and 15 percent compared to the prior year.
  • The Company expects to continue to increase cash balances in the fourth quarter.
  • Expects to realize annualized net interest expense savings of $6.9 million.
  • Well-positioned to execute on strategic growth opportunities with bolt-on acquisitions and capital investments

Headwinds

  • Expects to see an improved price-cost relationship until fiscal 2022 due to the continuing impact of inflation.
  • Ongoing operational challenges from the pandemic.
  • Global supply chain disruptions.
  • Rising material and supply chain expenses.
  • The company incurred a debt extinguishment charge of $16.7 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.7%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.8%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+16.7%

Q1 2025

Best reaction

-12.8%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%-6.4%-8.1%
Q1 2026+1.5%+7.0%+1.5%
Q4 2025-4.4%-5.9%-1.8%
Q2 2025-6.3%-9.4%-9.9%
Q1 2025+16.7%+16.6%+8.5%
Q4 2024+6.2%+14.5%+11.5%
Q3 2024+2.2%+1.1%+2.8%
Q2 2024+11.0%+18.7%+9.5%
Q1 2024+10.8%+10.4%+14.5%
Q4 2023+7.4%+3.5%+0.9%
Q3 2023-10.8%-13.3%-11.0%
Q2 2023-6.4%-9.2%+3.5%
Q1 2023+7.5%+6.8%+8.2%
Q4 2022-1.7%-2.6%-0.3%
Q3 2022-9.3%-10.4%-15.6%
Q2 2022-3.0%+0.1%-0.2%
Q1 2022+0.4%+4.2%-2.3%
Q4 2021-8.5%-13.0%-15.3%
Q3 2021+2.7%+1.1%+7.4%
Q2 2021+1.9%+3.6%+0.5%
Q1 2021+2.4%+6.1%+8.6%
Q4 2020+7.7%+7.3%+13.4%
Q3 2020+6.9%+8.8%+5.0%
Q2 2020-4.6%-4.5%+3.7%
Q1 2020+3.5%+1.2%-4.6%
Q4 2019-5.1%-7.4%-2.1%
Q3 2019+3.8%+0.4%+2.0%
Q2 2019-12.8%-15.2%-12.0%
Q1 2019+6.5%+3.6%+3.9%
Q4 2018+7.3%+6.2%-4.4%
Q3 2018-5.4%-5.7%-7.5%
Q2 2018+15.4%+20.7%+23.7%
Q1 2018-2.4%-4.6%-5.5%
Q4 2017+3.7%+2.3%+3.4%
Q3 2017+6.7%+4.6%+5.0%
Q2 2017-11.9%-12.2%-12.6%
Q1 2017+0.3%-6.6%-9.2%
Q4 2016-11.8%-9.0%+9.9%
Q3 2016+4.9%+7.9%+7.7%
Q2 2016+6.1%
Q1 2016+5.9%
Q4 2015-2.1%
Q3 2015+5.8%
Q2 2015-5.5%
Q1 2015-12.8%
Q4 2014+9.7%
Q3 2014+14.8%
Q2 2014-3.0%
Q1 2014+10.0%
Q4 2013+4.4%
Q3 2013+6.2%
Q2 2013+11.4%
Q1 2013-1.3%
Q4 2012+9.7%
Q3 2012+3.1%
Q2 2012+3.1%
Q1 2012-1.4%
Q4 2009+10.3%
Q3 2010+2.9%
Q3 2011+2.9%
Q2 2011+1.7%
Q2 2010+1.7%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

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