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Dec 31, 2019
Mueller Q1 2020 Earnings Report
Mueller Water Products' first quarter results for 2020 were reported with increased net sales and net income.
Key Takeaways
Mueller Water Products reported a strong start to fiscal year 2020, with a 10.3% increase in net sales to $212.6 million and a net income of $10.3 million. The company benefited from higher pricing and increased shipment volumes. They also settled the Walter Energy tax liability with a $22.2 million payment.
Net sales increased by 10.3 percent to $212.6 million compared to the prior year quarter.
Operating income was $20.3 million, compared to $15.9 million in the prior year quarter.
Net income reached $10.3 million, a significant improvement from the net loss of $21.0 million in the prior year quarter.
Adjusted EBITDA increased by 19.5 percent to $37.4 million compared to $31.3 million in the prior year quarter.
Mueller
Mueller
Forward Guidance
The company expects continued favorable demand and is increasing expectations for growth in net sales and adjusted EBITDA for fiscal year 2020, aiming for the upper end of previously provided annual guidance ranges.
Positive Outlook
- Municipal spending growing in the low-single digit range.
- Residential construction growing in the low-single digit range.
- Natural gas distribution growing in the low to mid-single digit range.
- Consolidated net sales growth at the high end of the 3 to 5 percent range.
- Growth in adjusted EBITDA at the high end of the 4 to 8 percent range.
Challenges Ahead
- Continued uncertainty from global and domestic matters.
- Potential impact of coronavirus on operations and results.
- Risk of failure to achieve expected cost savings.
- Sales growth, profitability improvements and manufacturing efficiencies from large capital projects.
- Changing regulatory, trade and tariff conditions.