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Sep 30, 2020
Mueller Q4 2020 Earnings Report
Achieved net sales of $265.3 million and net income of $26.7 million.
Key Takeaways
Mueller Water Products reported Q4 2020 results with net sales of $265.3 million and net income of $26.7 million. The company's adjusted EBITDA increased by 1.2 percent, and they finished the year with $209 million in cash.
Net sales decreased by 0.6 percent compared to the prior year quarter.
Operating income increased to $40.7 million from $39.0 million in the prior year quarter.
Net income was $26.7 million as compared with $40.2 million in the prior year quarter.
Adjusted EBITDA increased 1.2 percent to $57.6 million as compared with $56.9 million in the prior year quarter.
Mueller
Mueller
Forward Guidance
For the full-year 2021, the Company currently anticipates that consolidated net sales will be between flat and 3 percent higher than the prior year. As a result of anticipated volumes and improved execution, the Company expects that adjusted EBITDA will increase between 4 percent and 7 percent as compared with the prior year.
Positive Outlook
- Consolidated net sales will be between flat and 3 percent higher than the prior year.
- Expects that adjusted EBITDA will increase between 4 percent and 7 percent as compared with the prior year.
- The Company expects to generate positive free cash flow for the full year.
- Growth in the residential construction end market will help offset anticipated challenges in the project-related portion of the municipal end market.
- Strong balance sheet, liquidity and cash flow to support strategies.
Challenges Ahead
- The operating environment to continue to be very challenging, due to the uncertainty around the depth and duration of the pandemic.
- Expects to see delays in the approval and implementation of some new projects.
- Project-related areas of business could be impacted.
- Pace of residential construction is highly dependent on a number of factors, including the pandemic and the seasonality of construction activity.
- Estimates are based on current market expectations and assume that the pandemic’s impact does not significantly change from what was experienced in the fourth quarter.