mwa-20220630

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 June 30, 2022

☐ 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 156,653,587 shares of common stock of the registrant outstanding at July 29, 2022.

TABLE OF CONTENTS



ITEM		PAGE

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Unaudited Condensed Consolidated Balance Sheets - June 30 , 2022 and September 30, 2021	3

	Unaudited Condensed Consolidated Statements of Operations - Three and Nine Months Ended June 30 , 2022 and 2021	4

	Unaudited Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended June 30 , 2022 and 2021	5

	Unaudited Condensed Consolidated Statements of Equity - Three and Nine Months Ended June 30 , 2022 and 2021	6

	Unaudited Condensed Consolidated Statements of Cash Flows - Nine Months Ended June 30 , 2022 and 2021	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	32

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 6.	Exhibits	34

	Signatures	34

Table of Contents

PART I

Item 1. FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	June 30,		September 30,
	2022		2021

	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	154.9	$	227.5
Receivables, net of allowance for credit losses of $4.8 million and $3.5 million	221.9		212.2
Inventories, net	250.9		184.7
Other current assets	31.4		29.3
Total current assets	659.1		653.7
Property, plant and equipment, net	293.0		283.4
Intangible assets, net	369.4		392.5
Goodwill	108.6		115.1
Other noncurrent assets	79.5		73.3
Total assets	$	1,509.6	$	1,518.0

Liabilities and stockholders’ equity:
Current portion of long-term debt	$	0.9	$	1.0
Accounts payable	97.9		92.0
Other current liabilities	103.5		127.1
Total current liabilities	202.3		220.1
Long-term debt	446.1		445.9
Deferred income taxes	96.8		95.1
Other noncurrent liabilities	60.6		62.0
Total liabilities	805.8		823.1

Commitments and contingencies (Note 12.)

Common stock: 600,000,000 shares authorized; 156,612,167 and 157,955,433 shares outstanding at June 30, 2022, and September 30, 2021, respectively	1.6		1.6
Additional paid-in capital	1,296.1		1,342.2
Accumulated deficit	(574.4)		(643.9)
Accumulated other comprehensive loss	(19.5)		(5.0)
Total stockholders’ equity	703.8		694.9
Total liabilities and stockholders’ equity	$	1,509.6	$	1,518.0

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				Nine months ended
	June 30,				June 30,
	2022		2021		2022		2021

	(in millions, except per share amounts)
Net sales	$	333.2	$	310.5	$	916.0	$	815.4
Cost of sales	234.9		205.1		637.3		543.2
Gross profit	98.3		105.4		278.7		272.2
Operating expenses:
Selling, general and administrative

SEC Form 10-Q filed by MUELLER WATER PRODUCTS