mwa-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-32892

MUELLER WATER PRODUCTS, INC.

(Exact name of registrant as specified in its charter)


Delaware						20-3547095
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

1200 Abernathy Road N.E.

Suite 1200

Atlanta, GA 30328

(Address of principal executive offices)

(770) 206-4200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01	MWA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

There were 156,421,633 shares of common stock of the registrant outstanding at May 5, 2023.

TABLE OF CONTENTS



ITEM		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets - March 31, 2023 and September 30, 2022	3
	Unaudited Condensed Consolidated Statements of Operations - Three and Six Months Ended March 31, 2023 and 2022	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended March 31, 2023 and 2022	5
	Unaudited Condensed Consolidated Statements of Equity - Three and Six Months Ended March 31, 2023 and 2022	6
	Unaudited Condensed Consolidated Statements of Cash Flows - Six Months Ended March 31, 2023 and 2022	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.	Controls and Procedures	31

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	32
	Signatures	32

Table of Contents

PART I

Item 1. FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	March 31,		September 30,
	2023		2022
	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	89.2	$	146.5
Receivables, net of allowance for credit losses of $6.3 million and $5.6 million	229.3		228.0
Inventories, net	321.8		278.7
Other current assets	29.3		26.8
Total current assets	669.6		680.0
Property, plant and equipment, net	304.9		301.6
Intangible assets, net	348.8		361.2
Goodwill	99.0		98.6
Other noncurrent assets	54.8		56.7
Total assets	$	1,477.1	$	1,498.1

Liabilities and stockholders’ equity:
Current portion of long-term debt	$	0.9	$	0.8
Accounts payable	103.7		122.8
Other current liabilities	86.7		117.4
Total current liabilities	191.3		241.0
Long-term debt	446.6		446.1
Deferred income taxes	86.8		86.3
Other noncurrent liabilities	51.5		55.4
Total liabilities	776.2		828.8

Commitments and contingencies (Note 10.)

Common stock: 600,000,000 shares authorized; 156,366,647 and 155,844,138 shares outstanding at March 31, 2023, and September 30, 2022, respectively	1.6		1.6
Additional paid-in capital	1,264.3		1,279.6
Accumulated deficit	(523.5)		(567.3)
Accumulated other comprehensive loss	(41.5)		(44.6)
Total stockholders’ equity	700.9		669.3
Total liabilities and stockholders’ equity	$	1,477.1	$	1,498.1

The accompanying notes are an integral part of the condensed consolidated financial statements.

Table of Contents

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three months ended				Six months ended
	March 31,				March 31,
	2023		2022		2023		2022

	(in millions, except per share amounts)
Net sales	$	332.9	$	310.5	$	647.7	$	582.8
Cost of sales	235.1		217.7		456.7		402.4
Gross profit	97.8		92.8		191.0		180.4
Operating expenses:
Selling, general and administrative	64.2		58.0		127.1		114.3
Strategic reorganization and other charges (benefits)	0.7

SEC Form 10-Q filed by MUELLER WATER PRODUCTS