Loading...
•
Sep 30, 2021
Mueller Q4 2021 Earnings Report
Net sales increased, but profitability was impacted by cost inflation, supply chain disruptions, and labor availability challenges.
Key Takeaways
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%.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...