NYSE$MWA

Mueller Water Products Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Net sales increased, but profitability was impacted by cost inflation, supply chain disruptions, and labor availability challenges.

Mueller Water Products reported Q4 2021 results with net sales increasing by 11.4% to $295.6 million. However, net income decreased to $18.4 million, and adjusted EBITDA margin declined to 15.4% due to inflationary pressures and operational challenges.

  • Net sales increased by 11.4% to $295.6 million compared to the prior year quarter.
  • Operating income decreased to $27.8 million from $40.7 million in the prior year quarter.
  • Net income was $18.4 million, down from $26.7 million in the prior year quarter.
  • Adjusted EBITDA decreased to $45.6 million, with a margin of 15.4%.

Headline financials

Total Revenue

$296M

Previous: $265M+11.4%
EPS (adj)

$0.12

Previous: $0.17-29.4%
Adjusted EBITDA Margin

15.4%

Previous: 21.7%-29.0%
Free Cash Flow

$94M

No prior period
Net Income

$18.4M

Previous: $26.7M-31.1%
Operating Income

$27.8M

Previous: $40.7M-31.7%
Gross Profit

$86.3M

Previous: $93.9M-8.1%
Cash & Equivalents

$228M

Previous: $209M+8.9%
Total Assets

$1.52B

Previous: $1.4B+8.8%
Stock-Based Comp

$1.8M

Previous: $1.5M+20.0%

Revenue & EPS history

Mueller · Revenue · Quarterly

$296M

Q4 2021+11.4%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
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

For the full-year 2022, the Company currently anticipates that consolidated net sales will increase between 4 percent and 8 percent as compared with the prior year. As a result of higher sales and improved execution, the Company expects that adjusted EBITDA will also increase between 4 percent and 8 percent as compared with adjusted EBITDA of $203.6 million for fiscal 2021.

Tailwinds

  • Consolidated net sales are expected to increase between 4% and 8%.
  • Adjusted EBITDA is projected to increase between 4% and 8%.
  • Expectation of solid free cash flow generation.
  • Anticipated improvement in challenges related to inflation, labor, and supply chain disruptions.
  • Expectation that current pricing actions will more than cover anticipated inflation.

Headwinds

  • Operating environment expected to remain challenging, especially in the first half of the fiscal year.
  • Potential for gradual improvement during the second half of the year.
  • Expectations assume material costs do not increase beyond current levels.
  • Uncertainty related to the ongoing pandemic's impact.
  • Challenges associated with higher inflation, labor availability and supply chain disruptions.

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 Q4 2021

Historical avgQ4 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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