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Dec 31, 2022
Mueller Q1 2023 Earnings Report
Increased net sales and net income per diluted share, while achieving adjusted net income per diluted share.
Key Takeaways
Mueller Water Products reported a 15.6% increase in net sales to $314.8 million for the first quarter of 2023. Net income per diluted share grew to $0.14, with adjusted net income per diluted share at $0.13. The company remains optimistic about achieving operational improvements to increase margins in the second half of the year.
Net sales increased by 15.6% to $314.8 million compared to the prior year quarter.
Operating income rose to $34.0 million, while adjusted operating income was $30.3 million.
Net income reached $22.5 million, and adjusted net income was $19.7 million.
Net income per diluted share increased to $0.14, with adjusted net income per diluted share at $0.13.
Revenue by Segment
Forward Guidance
The Company reiterates its outlook for the full-year 2023 which was provided with the report of fiscal 2022 fourth quarter earnings. The Company anticipates that consolidated net sales will increase between 6 percent and 8 percent as compared with the prior year, and adjusted EBITDA will increase between 10 percent and 14 percent as compared with the prior year.
Positive Outlook
- Consolidated net sales are expected to increase between 6% and 8% compared to the prior year.
- Adjusted EBITDA is anticipated to increase between 10% and 14% compared to the prior year.
- Adjusted operating income, excluding pension expense, is expected to increase more than 20% compared to the prior year.
- Free cash flow is expected to increase compared to 2022 due to improved cash flow from operations.
- Free cash flow as a percentage of adjusted net income is projected to be between 40% and 60%.
Challenges Ahead
- Guidance considers pension expense in 2023 of approximately $3.8 million compared with a benefit of $3.9 million in the prior year primarily due to the stock market’s performance.
- The outlook considers continued challenges associated with manufacturing performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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