mwa-20210331

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, 2021

☐ 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	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 every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

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

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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 158,525,776 shares of common stock of the registrant outstanding at April 30, 2021.

PART I

Item 1. FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	March 31,		September 30,
	2021		2020

	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	228.2	$	208.9
Receivables, net of allowance of $5.8 million and $4.8 million	183.9		180.8
Inventories, net	179.4		162.5
Other current assets	22.7		29.0
Total current assets	614.2		581.2
Property, plant and equipment, net	268.5		253.8
Intangible assets	397.1		408.9
Goodwill	100.7		99.8
Other noncurrent assets	55.3		51.3
Total assets	$	1,435.8	$	1,395.0

Liabilities and equity:
Current portion of long-term debt	$	1.0	$	1.1
Accounts payable	74.7		67.3
Other current liabilities	84.5		86.6
Total current liabilities	160.2		155.0
Long-term debt	446.6		446.5
Deferred income taxes	100.3		96.5
Other noncurrent liabilities	59.3		56.3
Total liabilities	766.4		754.3

Commitments and contingencies (Note 11.)

Common stock: 600,000,000 shares authorized; 158,490,451 and 158,064,750 shares outstanding at March 31, 2021 and September 30, 2020, respectively	1.6		1.6
Additional paid-in capital	1,364.2		1,378.0
Accumulated deficit	(676.7)		(714.2)
Accumulated other comprehensive loss	(19.7)		(24.7)
Total stockholders’ equity	669.4		640.7
Total liabilities and equity	$	1,435.8	$	1,395.0

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

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three months ended				Six months ended
	March 31,				March 31,
	2021		2020		2021		2020

	(in millions, except per share amounts)
Net sales	$	267.5	$	257.7	$	504.9	$	470.3
Cost of sales	179.1		171.7		338.1		311.7
Gross profit	88.4		86.0		166.8		158.6
Operating expenses:
Selling, general and administrative	54.2		49.3		103.4		99.2
Strategic reorganization and other charges	0.8		0.9		2.2		3.3
Total operating expenses	55.0		50.2		105.6		102.5
Operating income	33.4		35.8		61.2		56.1
Other expenses (income):
Pension benefit other than service	(0.8)		(0.8)		(1.6)		(1.5)
Interest expense, net	6.1		6.0		12.2		13.4
Walter Energy Accrual	—		—		—		0.2
Net other expenses	5.3		5.2		10.6		12.1
Income before income taxes	28.1		30.6		50.6		44.0
Income tax expense	7.2		6.8		13.0		9.9
Net income	$	20.9	$	23.8	$	37.6	$	34.1