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Sep 30, 2023
Mueller Q4 2023 Earnings Report
Mueller Water Products reported a decrease in net sales but an increase in operating income and adjusted EBITDA for Q4 2023.
Key Takeaways
Mueller Water Products reported a decrease in net sales for the fourth quarter of 2023, but operating income and adjusted EBITDA increased. The company faced volume headwinds but benefited from higher pricing and lower SG&A expenses. The company is recovering from a cybersecurity incident announced on October 28, 2023.
Net sales decreased by 9.1 percent to $301.4 million compared to the prior year quarter.
Operating income increased to $24.9 million, compared to $11.6 million in the prior year quarter.
Adjusted EBITDA increased by 43.5 percent to $55.4 million, resulting in an adjusted EBITDA margin of 18.4 percent.
Net income per diluted share increased to $0.11, compared to $0.05 in the prior year quarter.
Revenue by Segment
Forward Guidance
The Company anticipates that channel and customer inventory levels will be substantially normalized by the end of the first quarter of fiscal 2024 and expects to face volume headwinds in fiscal 2024 relative to the prior year and anticipates that consolidated net sales will decrease between 3 and 8 percent as compared with fiscal 2023.
Positive Outlook
- Channel and customer inventory levels are expected to be substantially normalized by the end of the first quarter of fiscal 2024.
- Iron gate valve and hydrant backlogs were normalized at the end of fiscal 2023.
- The Company expects margins to improve in the second half of the year primarily due to its focus on operational and supply chain productivity improvements.
- Total SG&A expenses are expected to be between $240 million and $245 million.
- Capital expenditures are expected to be between $45 million and $50 million.
Challenges Ahead
- The Company expects to face volume headwinds in fiscal 2024 relative to the prior year.
- Consolidated net sales are anticipated to decrease between 3 and 8 percent as compared with fiscal 2023.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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