On May 1, Mueller Water Products (NYSE:MWA) released second-quarter earnings for the period ended March 31.
- Price increases led net sales in the Mueller Co. segment, the company's largest, to rise 3.6% year-over-year to $200 million.
- The company's adjusted EBITDA margin expanded to 17% from 16.2% year-over-year, despite drops in volume of some higher-margin products, including iron gate valves and hydrants.
- Mueller is rated five stars in the Motley Fool CAPS community, as is Hercules Offshore (NYSE:HERO), which reported earlier this week.
(Figures in million, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$459.7 |
$434.9 |
5.7% |
|
Net Profit |
$17.9 |
($1.8) |
N/A |
|
EPS |
$0.16 |
($0.02) |
N/A |
|
Diluted Shares |
115.2 |
85.8 |
34.2% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
25.6% |
21.8% |
3.9 |
|
Operating Margin |
11.5% |
6.3% |
5.2 |
|
Net Margin |
3.9% |
(0.4%) |
4.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$69.2 |
$41.1 |
68.4% |
|
Accounts Rec. |
$274.3 |
$272.7 |
0.6% |
|
Inventory |
$510.8 |
$460.3 |
11.0% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$115.4 |
$110.3 |
4.6% |
|
Long-Term Debt |
$1,119.5 |
$1,537.8 |
(27.2%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$56.7 |
$63.1 |
(10.1%) |
|
Capital Expenditures |
$42.5 |
$30.9 |
37.5% |
|
Free Cash Flow |
$14.2 |
$32.2 |
(55.9%) |
Free cash flow is a Fool's best friend.
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Mueller Water Products is a Motley Fool Hidden Gems selection. To learn more about it and the dozens of other Hidden Gems picks, try out a 30-day free trial today.
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