Q3 2024 Mueller Water Products Inc Earnings Call Transcript
Key Points
- Mueller Water Products, Inc. (MWA) reported record quarterly net sales with 9.2% year-over-year growth.
- The company achieved a gross margin above 36% for the second consecutive quarter, with a 620 basis points year-over-year improvement.
- Record adjusted EBITDA of approximately $85 million, representing an increase of nearly 57% compared to the prior year.
- Record quarterly adjusted net income per diluted share of $0.32, an increase of around 78% compared to the prior year quarter.
- Increased year-to-date free cash flow by more than $100 million compared with the prior year period.
- Lower volumes at Water Management Solutions partially offset the higher volumes of Water Flow Solutions.
- Impacts of the Israel-Hamas war affected the company's performance, particularly in the Water Management Solutions segment.
- Total SG&A expenses increased by $900,000 compared to the prior year, driven by higher incentive costs and inflationary pressures.
- Adjusted operating income for Water Management Solutions decreased by 32.8% in the quarter.
- The company expects higher SG&A expenses in the fourth quarter due to higher incentive compensation and personnel investments.
Welcome and thank you for standing by. (Operator Instructions) Today's call is also being recorded. If you have any objections, you may disconnect at this time.
I would now like to turn today's meeting over to your host, Mr. Whit Kincaid. Thank you. You may begin.
Good morning, everyone. Thank you for joining us on Mueller Water Products third quarter conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter ended June 30, 2024. Copies of the press release are available on our website, muellerwaterproducts.com.
I'm joined this morning by Marietta Zakas, our Chief Executive Officer; Paul McAndrew, our President and Chief Operating Officer; and Steve Heinrichs, our Chief Financial Officer and Chief Legal Officer. Following our prepared remarks, we will address questions related to the information covered on the call. (Event Instructions)
This morning's call is being recorded
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