Delaware | 0001-32892 | 20-3547095 |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||
Emerging growth company | o | |||
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. | o |
Dated: November 1, 2017 | MUELLER WATER PRODUCTS, INC. | ||
By: | /s/ Evan L. Hart | ||
Evan L. Hart | |||
Senior Vice President and Chief Financial Officer |
Investor Contact: Martie Edmunds Zakas | |
FOR IMMEDIATE RELEASE | Executive Vice President - Strategy, Corporate Development |
November 1, 2017 | & Communications |
770-206-4237 | |
mzakas@muellerwp.com | |
Media Contact: Yolanda Kokayi | |
Director - Communications | |
770-206-4131 | |
ykokayi@muellerwp.com |
• | Increased net sales 5.2 percent to $226.9 million as compared with $215.6 million in the prior year period |
• | Improved income from continuing operations to $20.1 million, which included $4.2 million in charges related to its previously announced strategic reorganization, as compared with $19.8 million in the prior year period |
• | Improved adjusted income from continuing operations 18.1 percent to $24.1 million as compared with $20.4 million in the prior year period |
• | Delivered adjusted income from continuing operations per diluted share of $0.15, a 25.0 percent increase as compared with $0.12 in the prior year period |
• | Increased net sales 3.2 percent over the prior year to $826.0 million |
• | Improved income from continuing operations to $54.3 million as compared with $45.1 million in the prior year |
• | Increased adjusted EBITDA to $163.8 million and adjusted EBITDA margin to 19.8 percent |
• | Delivered adjusted income from continuing operations per diluted share of $0.44, an 18.9 percent increase as compared with $0.37 in the prior year |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
(in millions, except share amounts) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 361.7 | $ | 195.0 | |||
Receivables, net | 145.3 | 131.8 | |||||
Inventories | 138.9 | 130.7 | |||||
Other current assets | 24.4 | 12.7 | |||||
Current assets held for sale | — | 142.1 | |||||
Total current assets | 670.3 | 612.3 | |||||
Property, plant and equipment, net | 122.3 | 108.4 | |||||
Intangible assets and goodwill | 439.3 | 434.6 | |||||
Other noncurrent assets | 26.4 | 25.4 | |||||
Noncurrent assets held for sale | — | 99.9 | |||||
Total assets | $ | 1,258.3 | $ | 1,280.6 | |||
Liabilities and equity: | |||||||
Current portion of long-term debt | $ | 5.6 | $ | 5.6 | |||
Accounts payable | 82.5 | 73.7 | |||||
Other current liabilities | 53.5 | 61.7 | |||||
Current liabilities held for sale | — | 44.8 | |||||
Total current liabilities | 141.6 | 185.8 | |||||
Long-term debt | 475.0 | 478.8 | |||||
Deferred income taxes | 115.1 | 109.9 | |||||
Other noncurrent liabilities | 37.1 | 85.8 | |||||
Noncurrent liabilities held for sale | — | 0.8 | |||||
Total liabilities | 768.8 | 861.1 | |||||
Commitments and contingencies | |||||||
Common stock: 600,000,000 shares authorized; 158,590,383 and 161,693,051 shares outstanding at September 30, 2017 and 2016, respectively | 1.6 | 1.6 | |||||
Additional paid-in capital | 1,494.2 | 1,563.9 | |||||
Accumulated deficit | (955.6 | ) | (1,078.9 | ) | |||
Accumulated other comprehensive loss | (51.8 | ) | (68.3 | ) | |||
Total Company stockholders’ equity | 488.4 | 418.3 | |||||
Noncontrolling interest | 1.1 | 1.2 | |||||
Total equity | 489.5 | 419.5 | |||||
Total liabilities and equity | $ | 1,258.3 | $ | 1,280.6 |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 226.9 | $ | 215.6 | $ | 826.0 | $ | 800.6 | |||||||
Cost of sales | 146.0 | 137.8 | 558.5 | 532.7 | |||||||||||
Gross profit | 80.9 | 77.8 | 267.5 | 267.9 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 42.2 | 39.0 | 156.4 | 151.2 | |||||||||||
Pension settlement (1) | — | — | — | 16.6 | |||||||||||
Other charges (2) | 5.4 | 1.0 | 10.4 | 7.2 | |||||||||||
Total operating expenses | 47.6 | 40.0 | 166.8 | 175.0 | |||||||||||
Operating income | 33.3 | 37.8 | 100.7 | 92.9 | |||||||||||
Interest expense, net | 5.2 | 5.6 | 22.2 | 23.6 | |||||||||||
Income before income taxes | 28.1 | 32.2 | 78.5 | 69.3 | |||||||||||
Income tax expense (3) | 8.0 | 12.4 | 24.2 | 24.2 | |||||||||||
Income from continuing operations | 20.1 | 19.8 | 54.3 | 45.1 | |||||||||||
Income (loss) from discontinued operations | (0.8 | ) | 6.7 | 69.0 | $ | 18.8 | |||||||||
Net income | $ | 19.3 | $ | 26.5 | $ | 123.3 | $ | 63.9 | |||||||
Income per basic share: | |||||||||||||||
Continuing operations | $ | 0.13 | $ | 0.12 | $ | 0.34 | $ | 0.28 | |||||||
Discontinued operations | (0.01 | ) | 0.04 | 0.43 | 0.12 | ||||||||||
Net income | $ | 0.12 | $ | 0.16 | $ | 0.77 | $ | 0.40 | |||||||
Income per diluted share: | |||||||||||||||
Continuing operations | $ | 0.13 | $ | 0.12 | $ | 0.34 | $ | 0.28 | |||||||
Discontinued operations | (0.01 | ) | 0.04 | 0.42 | 0.11 | ||||||||||
Net income | $ | 0.12 | $ | 0.16 | $ | 0.76 | $ | 0.39 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 158.6 | 161.7 | 160.1 | 161.3 | |||||||||||
Diluted | 160.2 | 163.9 | 161.8 | 163.4 | |||||||||||
Dividends declared per share | $ | 0.04 | $ | 0.03 | $ | 0.15 | $ | 0.10 | |||||||
(1) During fiscal 2016, we completed a pension benefit settlement program intended to reduce obligations associated with providing future pension benefits. | |||||||||||||||
(2) During the fourth quarter, we announced a restructuring and strategic reorganization, resulting in accrual of severance and other charges of $4.2 million. | |||||||||||||||
(3) Income tax expense in the 2017 fourth quarter was reduced by domestic manufacturing deductions, R&D tax credits and reductions in the tax rates applied to state deferred tax liabilities, resulting in an effective tax rate of 28.5 percent. |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
Year ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Operating activities: | |||||||
Net income | $ | 123.3 | $ | 63.9 | |||
Less income from discontinued operations | 69.0 | 18.8 | |||||
Income from continuing operations | 54.3 | 45.1 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 19.8 | 18.3 | |||||
Amortization | 22.1 | 21.2 | |||||
Retirement plans | 3.4 | 21.0 | |||||
Deferred income taxes | (4.0 | ) | (8.4 | ) | |||
Stock-based compensation | 6.0 | 4.7 | |||||
Other, net | 1.1 | 3.8 | |||||
Changes in assets and liabilities, net of acquisitions: | |||||||
Receivables | (9.9 | ) | (12.3 | ) | |||
Inventories | (1.9 | ) | 3.5 | ||||
Other assets | (3.4 | ) | (5.7 | ) | |||
Pension contributions | (35.0 | ) | — | ||||
Other liabilities | 6.9 | 23.3 | |||||
Net cash provided by operating activities | 59.4 | 114.5 | |||||
Investing activities: | |||||||
Capital expenditures | (40.6 | ) | (31.5 | ) | |||
Business acquisitions, net of cash acquired | (26.6 | ) | — | ||||
Proceeds from sales of assets | 0.9 | 0.3 | |||||
Net cash used in investing activities | (66.3 | ) | (31.2 | ) | |||
Financing activities: | |||||||
Repayment of debt | (4.9 | ) | (5.0 | ) | |||
Dividends paid | (24.0 | ) | (16.1 | ) | |||
Stock repurchased under buyback program | (55.0 | ) | — | ||||
Shares retained for employee taxes | (2.7 | ) | (3.3 | ) | |||
Deferred financing fees paid | (1.0 | ) | (1.2 | ) | |||
Common stock issued | 5.8 | 3.3 | |||||
Other | 0.4 | (1.4 | ) | ||||
Net cash used in financing activities | (81.4 | ) | (23.7 | ) | |||
Net cash flows from discontinued operations | |||||||
Operating activities | (43.3 | ) | 30.6 | ||||
Investing activities | 297.2 | (7.9 | ) | ||||
Financing activities | (0.1 | ) | — | ||||
Net cash provided by discontinued operations | 253.8 | 22.7 | |||||
Effect of currency exchange rate changes on cash | 1.2 | (0.4 | ) | ||||
Net change in cash and cash equivalents | 166.7 | 81.9 | |||||
Cash and cash equivalents at beginning of year | 195.0 | 113.1 | |||||
Cash and cash equivalents at end of year | $ | 361.7 | $ | 195.0 |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Quarter ended September 30, 2017 | |||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 204.4 | $ | 22.5 | $ | — | $ | 226.9 | |||||||
Gross profit | $ | 76.2 | $ | 4.7 | $ | — | $ | 80.9 | |||||||
Selling, general and administrative expenses | 25.5 | 6.9 | 9.8 | 42.2 | |||||||||||
Other charges | 0.6 | 0.6 | 4.2 | 5.4 | |||||||||||
Operating income (loss) from continuing operations | $ | 50.1 | $ | (2.8 | ) | $ | (14.0 | ) | 33.3 | ||||||
Interest expense, net | 5.2 | ||||||||||||||
Income tax expense | 8.0 | ||||||||||||||
Income from continuing operations | $ | 20.1 | |||||||||||||
Income from continuing operations per diluted share | $ | 0.13 | |||||||||||||
Capital expenditures | $ | 14.7 | $ | 3.8 | $ | 0.5 | $ | 19.0 | |||||||
Operating margin | 24.5 | % | (12.4 | )% | 14.7 | % | |||||||||
Reconciliation of Non-GAAP performance measures to GAAP performance measures: | |||||||||||||||
Income from continuing operations | $ | 20.1 | |||||||||||||
Other charges | 5.4 | ||||||||||||||
Inventory purchase accounting adjustment | 0.2 | ||||||||||||||
Income tax benefit of adjusting items | (1.6 | ) | |||||||||||||
Adjusted income from continuing operations | $ | 24.1 | |||||||||||||
Weighted average diluted shares outstanding | 160.2 | ||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.15 | |||||||||||||
Net income | $ | 19.3 | |||||||||||||
Plus loss from discontinued operations | 0.8 | ||||||||||||||
Interest expense, net (1) | 5.2 | ||||||||||||||
Income tax expense (1) | 8.0 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 50.1 | $ | (2.8 | ) | $ | (14.0 | ) | 33.3 | ||||||
Other charges | 0.6 | 0.6 | 4.2 | 5.4 | |||||||||||
Inventory purchase accounting adjustment | 0.2 | — | — | 0.2 | |||||||||||
Adjusted operating income (loss) from continuing operations | 50.9 | (2.2 | ) | (9.8 | ) | 38.9 | |||||||||
Depreciation and amortization | 9.3 | 1.4 | 0.1 | 10.8 | |||||||||||
Adjusted EBITDA | $ | 60.2 | $ | (0.8 | ) | $ | (9.7 | ) | $ | 49.7 | |||||
Adjusted operating margin | 24.9 | % | (9.8 | )% | 17.1 | % | |||||||||
Adjusted EBITDA margin | 29.5 | % | (3.6 | )% | 21.9 | % | |||||||||
Reconciliation of free cash flow to net cash provided by operating activities of continuing operations: | |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 34.0 | |||||||||||||
Less capital expenditures | (19.0 | ) | |||||||||||||
Free cash flow | $ | 15.0 | |||||||||||||
(1) We do not allocate interest or income taxes to our segments. |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Quarter ended September 30, 2016 | |||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 190.1 | $ | 25.5 | $ | — | $ | 215.6 | |||||||
Gross profit | $ | 71.5 | $ | 6.3 | $ | — | $ | 77.8 | |||||||
Selling, general and administrative expenses | 22.6 | 6.8 | 9.6 | 39.0 | |||||||||||
Other charges | — | 0.4 | 0.6 | 1.0 | |||||||||||
Operating income (loss) from continuing operations | $ | 48.9 | $ | (0.9 | ) | $ | (10.2 | ) | 37.8 | ||||||
Interest expense, net | 5.6 | ||||||||||||||
Income tax expense | 12.4 | ||||||||||||||
Income from continuing operations | $ | 19.8 | |||||||||||||
Income from continuing operations per diluted share | $ | 0.12 | |||||||||||||
Capital expenditures | $ | 11.9 | $ | 2.5 | $ | 0.1 | $ | 14.5 | |||||||
Operating margin | 25.7 | % | (3.5 | )% | 17.5 | % | |||||||||
Reconciliation of non-GAAP performance measures to GAAP performance measures: | |||||||||||||||
Income from continuing operations | $ | 19.8 | |||||||||||||
Other charges | 1.0 | ||||||||||||||
Income tax benefit of adjusting items | (0.4 | ) | |||||||||||||
Adjusted income from continuing operations | $ | 20.4 | |||||||||||||
Weighted average diluted shares outstanding | 163.9 | ||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.12 | |||||||||||||
Net income | $ | 26.5 | |||||||||||||
Less income from discontinued operations | (6.7 | ) | |||||||||||||
Interest expense, net (1) | 5.6 | ||||||||||||||
Income tax expense (1) | 12.4 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 48.9 | $ | (0.9 | ) | $ | (10.2 | ) | 37.8 | ||||||
Other charges | — | 0.4 | 0.6 | 1.0 | |||||||||||
Adjusted operating income (loss) from continuing operations | 48.9 | (0.5 | ) | (9.6 | ) | 38.8 | |||||||||
Depreciation and amortization | 8.7 | 1.3 | 0.2 | 10.2 | |||||||||||
Adjusted EBITDA | $ | 57.6 | $ | 0.8 | $ | (9.4 | ) | $ | 49.0 | ||||||
Adjusted operating margin | 25.7 | % | (2.0 | )% | 18.0 | % | |||||||||
Adjusted EBITDA margin | 30.3 | % | 3.1 | % | 22.7 | % | |||||||||
Reconciliation of free cash flow to net cash provided by operating activities of continuing operations: | |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 60.1 | |||||||||||||
Less capital expenditures | (14.5 | ) | |||||||||||||
Free cash flow | $ | 45.6 | |||||||||||||
(1) We do not allocate interest or income taxes to our segments. |
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Year ended September 30, 2017 | |||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 739.9 | $ | 86.1 | $ | — | $ | 826.0 | |||||||
Gross profit | $ | 259.5 | $ | 8.0 | $ | — | $ | 267.5 | |||||||
Selling, general and administrative expenses | 93.4 | 27.6 | 35.4 | 156.4 | |||||||||||
Other charges | 2.7 | 0.7 | 7.0 | 10.4 | |||||||||||
Operating income (loss) from continuing operations | $ | 163.4 | $ | (20.3 | ) | $ | (42.4 | ) | 100.7 | ||||||
Interest expense, net | 22.2 | ||||||||||||||
Income tax expense | 24.2 | ||||||||||||||
Income from continuing operations | $ | 54.3 | |||||||||||||
Income from continuing operations per diluted share | $ | 0.34 | |||||||||||||
Capital expenditures | $ | 28.5 | $ | 11.4 | $ | 0.7 | $ | 40.6 | |||||||
Operating margin | 22.1 | % | (23.6 | )% | 12.2 | % | |||||||||
Reconciliation of Non-GAAP performance measures to GAAP performance measures: | |||||||||||||||
Income from continuing operations | $ | 54.3 | |||||||||||||
Discrete warranty charge | 9.8 | ||||||||||||||
Inventory purchase accounting adjustment | 1.0 | ||||||||||||||
Other charges | 10.4 | ||||||||||||||
Income tax benefit of adjusting items | (4.3 | ) | |||||||||||||
Adjusted income from continuing operations | $ | 71.2 | |||||||||||||
Weighted average diluted shares outstanding | 161.8 | ||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.44 | |||||||||||||
Net income | $ | 123.3 | |||||||||||||
Less income from discontinued operations | (69.0 | ) | |||||||||||||
Interest expense, net (1) | 22.2 | ||||||||||||||
Income tax expense (1) | 24.2 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 163.4 | (20.3 | ) | $ | (42.4 | ) | 100.7 | |||||||
Discrete warranty charge | — | 9.8 | — | 9.8 | |||||||||||
Inventory purchase accounting adjustment | 1.0 | — | — | 1.0 | |||||||||||
Other charges | 2.7 | 0.7 | 7.0 | 10.4 | |||||||||||
Adjusted operating income (loss) from continuing operations | 167.1 | (9.8 | ) | (35.4 | ) | 121.9 | |||||||||
Depreciation and amortization | 36.3 | 5.2 | 0.4 | 41.9 | |||||||||||
Adjusted EBITDA | $ | 203.4 | $ | (4.6 | ) | $ | (35.0 | ) | $ | 163.8 | |||||
Adjusted operating margin | 22.6 | % | (11.4 | )% | 14.8 | % | |||||||||
Adjusted EBITDA margin | 27.5 | % | (5.3 | )% | 19.8 | % | |||||||||
(1) We do not allocate interest or income taxes to our segments. | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Reconciliation of net debt to total debt (end of period): | |||||||||||||||
Current portion of long-term debt | $ | 5.6 | |||||||||||||
Long-term debt | 475.0 | ||||||||||||||
Total debt | 480.6 | ||||||||||||||
Less cash and cash equivalents | (361.7 | ) | |||||||||||||
Net debt | $ | 118.9 | |||||||||||||
Net debt leverage (net debt divided by adjusted EBITDA) | 0.7x | ||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 59.4 | |||||||||||||
Less capital expenditures | (40.6 | ) | |||||||||||||
Free cash flow | $ | 18.8 | |||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Year ended September 30, 2016 | |||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 715.7 | $ | 84.9 | $ | — | $ | 800.6 | |||||||
Gross profit | $ | 250.7 | $ | 17.2 | $ | — | $ | 267.9 | |||||||
Selling, general and administrative expenses | 88.4 | 27.4 | 35.4 | 151.2 | |||||||||||
Pension settlement | 2.2 | — | 14.4 | 16.6 | |||||||||||
Other charges | 0.8 | 0.9 | 5.5 | 7.2 | |||||||||||
Operating income (loss) from continuing operations | $ | 159.3 | $ | (11.1 | ) | $ | (55.3 | ) | 92.9 | ||||||
Interest expense, net | 23.6 | ||||||||||||||
Income tax expense | 24.2 | ||||||||||||||
Income from continuing operations | $ | 45.1 | |||||||||||||
Income per diluted share from continuing operations | $ | 0.28 | |||||||||||||
Capital expenditures | $ | 24.3 | $ | 7.0 | $ | 0.2 | $ | 31.5 | |||||||
Operating margin | 22.3 | % | (13.1 | )% | 11.6 | % | |||||||||
Reconciliation of Non-GAAP performance measures to GAAP performance measures: | |||||||||||||||
Income from continuing operations | $ | 45.1 | |||||||||||||
Pension settlement | 16.6 | ||||||||||||||
Other charges | 7.2 | ||||||||||||||
Income tax benefit of adjusting items | (8.1 | ) | |||||||||||||
Adjusted income from continuing operations | $ | 60.8 | |||||||||||||
Weighted average diluted shares outstanding | 163.4 | ||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.37 | |||||||||||||
Net income | $ | 63.9 | |||||||||||||
Less income from discontinued operations | (18.8 | ) | |||||||||||||
Interest expense, net (1) | 23.6 | ||||||||||||||
Income tax expense (1) | 24.2 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 159.3 | $ | (11.1 | ) | $ | (55.3 | ) | 92.9 | ||||||
Pension settlement | 2.2 | — | 14.4 | 16.6 | |||||||||||
Other charges | 0.8 | 0.9 | 5.5 | 7.2 | |||||||||||
Adjusted operating income (loss) from continuing operations | 162.3 | (10.2 | ) | (35.4 | ) | 116.7 | |||||||||
Depreciation and amortization | 34.2 | 4.8 | 0.5 | 39.5 | |||||||||||
Adjusted EBITDA | $ | 196.5 | $ | (5.4 | ) | $ | (34.9 | ) | $ | 156.2 | |||||
Adjusted operating margin | 22.7 | % | (12.0 | )% | 14.6 | % | |||||||||
Adjusted EBITDA margin | 27.5 | % | (6.4 | )% | 19.5 | % | |||||||||
(1) We do not allocate interest or income taxes to our segments. | |||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
Reconciliation of net debt to total debt (end of period): | |||||||||||||||
Current portion of long-term debt | $ | 5.6 | |||||||||||||
Long-term debt | 478.8 | ||||||||||||||
Total debt | 484.4 | ||||||||||||||
Less cash and cash equivalents | (195.0 | ) | |||||||||||||
Net debt | $ | 289.4 | |||||||||||||
Net debt leverage (net debt divided by adjusted EBITDA) | 1.9x | ||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
Net cash provided by operating activities | $ | 114.5 | |||||||||||||
Less capital expenditures | (31.5 | ) | |||||||||||||
Free cash flow | $ | 83.0 | |||||||||||||
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