Q4 2023 Mueller Water Products Inc Earnings Call

December 14, 2023

Okay.

[music].

Welcome and thank you for standing by. At this time, all participants are in a listen-only mode until the question-and-answer session of today's conference.

Welcome and thank you for standing by at this time, all participants are in a listen only mode until the question and answer session of today's conference at that time, you May Press Star one on your phone to ask a question.

I would like to inform all parties that today's conference is being recorded. If you have any objections, you may disconnect.

I'd like to inform all parties that today's conference is being recorded if you have any objections you may disconnect at this time I would.

I would now like to turn the conference over to Whit Kincaid. Thank you. You may begin.

Now I'd like to turn the conference over to Whit Kincaid. Thank you you may begin.

Good morning everyone, thank you for joining us on Muir Water Products, 4th Quarter and Fiscal 2023 Conference Call.

Good morning, everyone. Thank you for joining us on Mueller water products fourth quarter and fiscal 2023 conference call Yes.

Yesterday afternoon, we issued our press release reporting results of operations for the quarter and year ended September 30th, 2023.

Yesterday afternoon, we issued our press release reporting results of operations for the quarter and year ended September 32023.

A copy of the press release is available on our website, MuirWaterProducts.com.

A copy of the press release is available on our website newer Warner products Dot com.

I'm joined this morning by Marty Zachas, our Chief Executive Officer, and Steve Heinrichs, our Financial Officer and Chief Legal Officer.

I'm joined this morning by Marty <unk>, our Chief Executive Officer, and Steve Heinrichs, Our financial Officer, and Chief Legal Officer.

Following our prepared remarks, we will address questions related to the information covered on the call. As a reminder, please keep the 1 question in the follow up and then return to the queue. This morning's call is being recorded and webcast live on the Internet. We have also posted slides on our website to accompany today's discussion. They also address forward looking statements and our non-GAAP disclosure requirements.

Following our prepared remarks, we will address questions related to the information covered on the call as.

As a reminder, please keep to one question and a follow up and then return to the queue.

This mornings call is being recorded and webcast live on the Internet. We have also posted slides on our website to accompany today's discussion. They also address forward looking statements and our non-GAAP disclosure requirements.

At this time, please refer to slide 2. This slide identifies non-GAAP financial measures referenced in our press release on our slides and on this call. It discloses the reasons why we believe that these measures provide useful information to investors.

At this time, please refer to slide two this.

This slide identifies non-GAAP financial measures referenced in our press release on our slides and on this call and discloses. The reasons why we believe that these measures provide useful information to investors reconciliations.

Reconciliations between non-GAAP and GAAP financial measures are included in the supplemental information within our press release and on our website. Slide 3 addresses forward-looking statements made on this call. This slide includes cautionary information identifying important factors that could cause actual results to differ materially from those included in forward-looking statements. Please review slides 2 and 3.

<unk> between non-GAAP and GAAP financial measures are included in the supplemental information within our press release and on our website slide three addresses forward looking statements made on this call. This slide includes cautionary information identifying important factors that could cause actual results to differ materially from.

Those included in forward looking statements.

These reviews slides two and three in their entirety.

During this call, all references to a specific year or quarter, unless specified otherwise, refer to our fiscal year, which ends 30th of September . A replay of this morning's call will be available for 30 days at 1-800-819-5743. The archived webcasts and corresponding slides will be available for at least 90 days on the investor relations section of our website. I'll now turn the call over to Marty.

During this call all references to a specific year or quarter unless specified otherwise refer to our fiscal year, which ends 30th of September a replay of this morning's call will be available for 30 days at one 808 195 743.

<unk> webcast and corresponding slides will be available for at least 90 days on the Investor Relations section of our website.

I'll now turn the call over to Marty.

Thanks, good morning everyone. Thank you for joining us for our fourth quarter earnings call. I'll start with a brief overview of our fourth quarter and fiscal 2020 three performance.

Thanks, Good morning, everyone. Thank you for joining us for our fourth quarter earnings call I'll start with a brief overview of our fourth quarter and fiscal 2023 performance, we executed well to finish the year, despite a challenging external environment, while our fourth quarter net sales exceeded expectations, we expect.

We executed well to finish the year despite a challenging external environment. While our fourth quarter net sales exceeded expectations, we experienced a mid-teens year-over-year decrease in volumes. As a reminder, this decrease was due to the ongoing channel and customer inventory de-stocking reflecting normalized lead time, mainly for iron gate valves and high-

<unk> mid teens year over year decrease in volumes as a reminder, this decrease was due to the ongoing channel and customer inventory destocking, reflecting normalized lead times, mainly for iron gate valves and hydrants. Additionally, higher interest rates slowed new residential construction activity, especially.

Additionally, higher interest rates slowed new residential construction activity, especially land development.

Land development continued benefits from price realization and improved execution by our operations and supply chain teams led to higher gross margins compared with the prior year. This.

Continued benefits from price realization and improved execution by our operations and supply chain teams led to higher gross margins compared with the prior year. This includes strong margin improvements for both segments on lower volumes. Our supply chain team helped drive productivity improvements in the quarter, including reductions in outsourcing and freight costs.

This includes strong margin improvements from both segments on lower volumes, our supply chain team helped drive productivity improvements in the quarter, including reductions in outsourcing and freight costs.

Water flow solutions specialty valve operations had an outstanding quarter, reflecting the successful ramp up of our new manufacturing facility in Kimball, Tennessee. Improved production for service brass products and better flow through for our iron gate valves also contributed. Water management solutions improved execution helped offset lower volumes and a warranty charge in the quarter.

Water flow solutions specialty valve operations had an outstanding quarter, reflecting the successful ramp up of our new manufacturing facility in Kimball, Tennessee.

Improved production for service brass products and better flow through for our Iron Gate valves also contributed.

Water management solutions improved execution helped to offset lower volumes and a warranty charge in the quarter.

Lower SG&A spending, which includes benefits from our previously announced cost actions, helped increase our adjusted EBITDA margin to 18.4% for the quarter. This EBITDA margin is the highest quarterly margin since the third quarter of 2021.

Lower SG&A spending which includes benefits from our previously announced cost actions helped increase our adjusted EBITDA margin to 18, 4% for the quarter.

This EBITDA margin is the highest quarterly margin since the third quarter of 2021.

We are on track to deliver the remaining portion of the $25 million cost savings program in 2024. Our free cash flow improved by more than $60 million in 2023, exceeding our expectations as inventories decline sequentially and we normalize our capital spending.

We are on track to deliver the remaining portion of the $25 million cost savings program in 2024.

Our free cash flow improved by more than $60 million in 2023 exceeding our expectations as inventories declined sequentially and we normalized our capital spending.

I'll now provide an update on the cybersecurity incident announced on October 28.

I'll now provide an update on the cyber security incident announced on October 28.

We have made substantial progress in recovering from the incident.

Team members across the organization have worked tirelessly to support our customers and restore operations.

our incident response teams quickly took action to implement response and containment protocol.

Our incident response teams quickly took action to implement response and containment protocols.

with the help of leading third-party cybersecurity specialists, we have largely restored the impacted applications and systems.

With the help of leading third party cyber security specialists, we have largely restored the impacted applications and systems.

All of our facilities are operational and the unauthorized activity has been contained.

The company's investigation and remediation efforts remain ongoing including the analysis of data accessed X fill traded or otherwise impacted.

Our teams continue to focus on closing the gap on our ongoing business processes while also addressing additional work associated with the

Our teams continue to focus on closing the gap on our ongoing business processes. While also addressing additional work associated with the incident, we continue to evaluate the business financial and related impacts of the incident.

We continue to evaluate the business, financial, and related impacts of the incident.

We have worked closely with our customers, vendors, and employees throughout this process and have been able to take orders and ship products.

We have worked closely with our customers vendors and employees throughout this process and have been able to take orders and ship products. Therefore, we expect a minor impact on our consolidated net sales in the first quarter.

Therefore, we expect a minor impact on our consolidated net sales in the first quarter.

We appreciate the patience and understanding of our customers and vendors as we have worked through the restoration process and of course that of the investment community as we're having this call later than usual.

As we enter the new year, we will continue to focus on delivering the benefits from our strategic capital investments in specialty and large gate valves and service brass products.

As we entered the new year, we will continue to focus on delivering the benefits from our strategic capital investments in specialty and large gate valves and service brass products.

These products are poised to benefit from the increased federal infrastructure funding beyond fiscal 2024.

These products are poised to benefit from the increased federal infrastructure funding beyond fiscal 2024, we.

We believe our transformational state-of-the-art brass foundry, with its sustainable lead-free alloy, will set a new standard for utilities and the communities we serve. We continue to make progress on the ramp-up of the new brass foundry again this quarter. We expect to install the remaining foundry pouring equipment over the coming months, which will allow us to complete the new tooling while ramping up the volume of finished parts.

We believe our transformational state of the art brass foundry with its sustainable lead free alloy will set a new <unk>.

Third for utilities and the communities. We serve we continue to make progress on the ramp up of the new brass foundry again this quarter.

We expect to install the remaining foundry pouring the equipment over the coming months, which will allow us to complete the new tooling, while ramping up the volume of finished parts.

At the end of the year, we still had an elevated backlog for service brass products. With channel partners and end customers our highest priority, we will continue to utilize both brass foundries throughout the year. This will also allow us to improve lead time, maintain customer service, and reduce our backlog, while ensuring we complete the ramp up of the new foundry by the end of calendar 2024.

At the end of the year, we still had an elevated backlog for service brass products.

With channel partners and end customers, our highest priority we will continue to utilize both brass foundries throughout the year.

This will also allow us to improve lead time maintain customer service and reduce our backlog, while ensuring we complete the ramp up of the new foundry by the end of calendar 2024.

As we move forward, we will focus on minimizing the impact of the duplicative cost of running two foundries.

As we move forward, we will focus on minimizing the impact of the duplicative costs of running two foundries. Following this transition we believe that we will be well positioned to increase gross margins beyond pre pandemic levels.

Following this transition, we believe that we'll be well positioned to increase gross margins beyond pre-pandemic levels.

Looking ahead, we believe there remains a meaningful level of uncertainty in the macroeconomic environment with our end users as they continue to adjust to higher interest rates and elevated project costs.

We also anticipate that the Israel Hamas War will create headwinds for the global supply chain. We have operations in Israel through our Crouse Repair Products business.

We also anticipate that the Israel Hamas war will create headwinds for the global supply chain we.

We have operations in Israel through our crouse repair products business.

While repair products account for slightly less than 10% of our consolidated sales, this is a headwind for one of our fastest growing product lines.

While repair products account for slightly less than 10% of our consolidated sales. This is a headwind for one of our fastest growing product lines.

Over the last several months, we have worked closely with our teams and experts to ensure first the safety of our employees and to continue operations effectively.

We have normally carried an elevated level of Finnish goods inventory for repair products.

We have normally carried an elevated level of finished goods inventory for repair products due to the extent of the war, we have made incremental operational investments to continue to help ensure we meet customer demand.

due to the extent of the war, we have made incremental operational investments to continue to help ensure we meet customer demand. The cost of these investments will impact the company's first quarter results and are likely to continue for the foreseeable future.

Cost of these investments will impact the company's first quarter results and are likely to continue for the foreseeable future.

Before turning it over to Steve, I want to say how grateful I am for all of our team members around the world. Their dedication to and passion for the business is inspirational. I thank them for helping us to deliver results quarter after quarter, as we focus on continuing to improve our productivity and efficiency while strengthening our customer relationships. On to you, Steve.

Before turning it over to Steve I want to say, how grateful I am for all of our team members around the world their dedication to and passion for the business is inspirational.

I, thank them for helping us to deliver results quarter after quarter as we focus on continuing to improve our productivity and efficiency, while strengthening our customer relationships.

On to you Steve.

It's great to be with you this morning for my first earnings call as Mueller's CFO . Although this is my first earnings call as CFO , I've been with Mueller for over five years and I'm confident that our future is bright.

Thanks, Marty and good morning, everyone.

It's great to be with you. This morning from our first earnings call as Mueller CFO.

Although this is my first earnings call as CFO I have been with newer for over five years and I'm confident that our future is bright.

Newer has a leading array of products and brands coupled with deep industry knowledge, strong channel presence, durable customer relationships, and dedicated and passionate team members. I'll now turn to our...

Newer has a leading array of products and brands, coupled with deep industry knowledge strong channel presence durable customer relationships and dedicated and passionate team members.

I'll now turn to our fourth quarter and full year results.

For the quarter, our consolidated net sales decreased 9.1% to $301.4 million compared to the prior year.

For the quarter, our consolidated net sales decreased nine 1% to $301 $4 million compared to the prior year.

lower volumes, mainly in iron gate valves and hydrants. We're partially offset by higher pricing across most of our products.

Lower volumes, mainly in iron gate valves, and hydrants were partially offset by higher pricing across most of our product lines.

For the full year, our consolidated net sales increased to 2.3% driven by higher pricing, partially offset by lower volumes, mainly in iron gate valves and service brass products.

For the full year, our consolidated net sales increased two 3% driven by higher pricing, partially offset by lower volumes, mainly in iron gate valves and service gross products.

In the fourth quarter, gross profit of $88.4 million increased 3.3% compared with the prior year. Gross margin of 29.3% increased 350 basis points compared with the prior year. Benefits from higher pricing improved manufacturing performance and lower freight costs. More than offset lower volumes and more in job.

In the fourth quarter gross profit of $88 4 million increased three 3% compared with the prior year gross margin of 29, 3% increased 350 basis points compared with the prior year benefits from higher pricing improved manufacturing performance and lower freight costs more than offset lower volumes and warranty.

as part of a regular assessment of our warranty obligations, which includes an assessment of our warranty experience and replacement.

The obligations.

As part of our regular assessment of our warranty obligations, which includes an assessment of our warranty experience and replacement costs.

We increased our warranty a cool by $5.7 million in the quarter.

We increased our warranty accrual by $5 $7 million in the quarter.

Excluding this charge, gross margin was 31.2% with a 540 basis point expansion versus the fourth quarter of 2020.

Excluding this charge gross margin was 31, 2% with a 540 basis point expansion versus the fourth quarter of 2022.

We were pleased to see improvements in gross margins for both segments, despite lower volume.

We were pleased to see improvements in gross margins for both segments despite lower volumes.

The benefits from price realization were sequentially lower in the quarter as we laughed price increases from the prior year. However, inflationary pressures lessened relative to the third quarter, especially compared to the increases we experienced over the last 12 months. The level of total material cost inflation improved relative to our prior quarters and was nearly flat compared with the prior year.

The benefits from price realization were sequentially lower in the quarter as we lap the price increases from the prior year. However.

However, inflationary pressures lessen relative to the third quarter, especially compared to the increases we experienced over the last 12 months.

The level of total material cost inflation improved relative to prior quarters and was nearly flat compared with the prior year.

Our supply chain team help to drive improvements in the quarter, including lowering our outsourcing.

Our supply chain team helped to drive improvements in the quarter, including lowering our outsourcing costs.

For the quarter, SG&A expenses of $54.2 million were $9.4 million lower than the prior year, and were $6.4 million lower than the previous quarter.

For the quarter SG&A expenses of $54 $2 million were $9 $4 million lower than the prior year and were $6 $4 million lower than the previous quarter.

The decrease compared with the prior year was primarily driven by lower personnel related expenses and incentive costs.

The decrease compared with the prior year was primarily driven by lower personnel related expenses and incentive costs favor.

favorable for inconse exchange expense and reduced third party fees partially offset by inflationary pressure.

Favorable foreign currency exchange expense in.

And reduced third party fees, partially offset by inflationary pressures.

Operating income of 24.9M dollars increased 114.7% in the quarter compared with the prior year.

Operating income of $24 $9 million increased 114, 7% in the quarter compared with the prior year.

Operating income includes strategic reorganization and other charges of $9.3 million, which primarily consisted of expenses associated with the leadership transition and restructuring costs related to so.

Operating income includes strategic reorganization and other charges of $9 3 million, which primarily consisted of expenses associated with the leadership transition and restructuring costs related to severance.

Operating income also includes a $5.7 million warranty charge of water management solutions. These items have been excluded from adjusted results. Turning down.

Operating income also includes a $5 7 million warranty charge in water management solutions.

These items have been excluded from adjusted results.

Adjusted operating income of $39.9 million increased 81.4% compared with the prior year. This increase was primarily as a result of benefits from higher pricing, lower SG&A expenses and favorable manufacturing performance, which more than offset lower volume.

Turning now to our consolidated non-GAAP results for the quarter.

Adjusted operating income of $39 $9 million increased 81, 4% comparable to prior year.

This increase was primarily as a result of benefits from higher pricing lower SG&A expenses, and favorable manufacturing performance, which more than offset lower volumes.

adjusted EBITDA of $55.4 million, increased 43.5% in the quarter, leading to an adjusted EBITDA margin of 18.4% compared with 11.6% in the prior year.

Adjusted EBITDA of $55 $4 million increased 43, 5% in the quarter, leading to an adjusted EBITDA margin of 18, 4% compared with 11, 6% in the prior year.

As a reminder, this includes $900,000 of pension expense other than service, compared with the benefit of $1 million in the prior year.

As a reminder, this includes $900000 of pension expense other than service compared with a benefit of $1 million in the prior year quarter.

For fiscal 2023, adjusted EBITDA increased $7.6 million, or 3.9% to $202.1 million.

For fiscal 2023, adjusted EBITDA increased $7 6 million or three.

are adjusted eva.margin improved 20 basis points to 15.8% for the

9% to $202 $1 million.

Our adjusted EBITDA margin improved 20 basis points to 15, 8% for the year.

Net interest expense for the quarter of the client $600,000 to $3.3 million compared with the prior year. Primarily as a result of higher interest in...

Net interest expense for the quarter declined $600000 to $3 3 million compared with the prior year.

For fiscal 2023, our effective tax rate was 21.6%, as compared with 22.3% for the prior year.

Primarily as a result of higher interest income.

For fiscal 2023, our effective tax rate was 21, 6% as compared with 22, 3% for the prior year.

This decrease was primarily due to higher benefits from R&D tax credits and lower effective state tax rates due to state apportionment change.

This decrease was primarily due to higher benefits from R&D tax credits and lower effective state tax rates due to state apportionment changes.

For the quarter, we increased adjusted net income per share by 90% to 19 cents compared with the prior year.

For the quarter, we increased adjusted net income per share by 90% to 19 compared with the prior year.

For the full year, we increased adjusted net income per share by 8.6% for 63 cents compared with the priori.

For the full year, we increased adjusted net income per share by eight 6% to <unk> 63, compared with the prior year.

Turning now to quarterly segment performance, starting with water flow solution.

Turning now to quarterly segment performance, starting with water flow solutions.

Netsvails decreased 10% compared with the prior year. This decrease was primarily due to lower volumes of iron gate valves, partially offset by higher pricing across most of the segment's products.

Net sales decreased 10% compared with the prior year.

This decrease was primarily due to lower volumes of iron gate valves, partially offset by higher pricing across most of the segments product lines.

especially brass products, so a double digit increase in that sales compared with the prior year.

Specialty brass products saw a double digit increase in net sales compared with the prior year.

Net sales for Iron Gate Bows were down double digits compared with the prior year. Primarily did a channel and customer inventory destocking, reflecting normalized lead times and lower end market demand.

Net sales for Iron gate valves were down double digits compared with the prior year, primarily due to channel and customer inventory destocking, reflecting normalized lead times and lower end market demand.

Irongate valves, sales in the prior year quarter, had benefited from serving an elevated backlog and improved production.

Iron Gate valves sales in the prior year quarter had benefited from serving an elevated backlog and improved production levels.

Despite lower net sales adjusted operating income of $27.5 million increased 34.1%.

Despite lower net sales adjusted operating income of $27 5 million increased 34, 1%.

Benefits from higher pricing, favorable manufacturing performance and lower SGA expense, more than offset lower lower

Benefits from higher pricing favorable manufacturing performance and lower SG&A expense more than offset lower volumes.

Adjusted EBITDAV $36.6 million increased 30.7% leading to an adjusted EBITDA margin of 22.7%. Compared with 15.6% last year.

Adjusted EBITDA of $36 $6 million increased 37%, leading to an adjusted EBITDA margin of 22, 7% compared with 15, 6% last year.

For fiscal 2023, adjusted EBITDA margins decreased 400 basis points to 17.7%. Turning now to quarterly results for water management solutions. 527 Verizon dollars

For fiscal 2023, adjusted EBITDA margins decreased 400 basis points to 17, 7%.

Turning now to quarterly results for water management solutions.

Net sales of $139 $9 million decreased.

The decrease was primarily due to lower volumes in hydrants and water up.

8% as compared with the prior year.

which were partially offset by higher pricing across the segments product.

The decrease was primarily due to lower volumes and hydrants and water applications.

Repair products saw a double-digit increase in that sales compared with the prior year.

Which were partially offset by higher pricing across the segments product lines.

For hydrants, however, net sales were down double digits compared with the prior year. Primarily due to channel and customer inventory destocking, reflecting normalized lead times and lower end market demand.

Repair products saw a double digit increase in net sales compared with the prior year.

For hydrants, However, net sales were down double digits compared with the prior year, primarily due to channel and customer inventory destocking, reflecting normalized lead times and lower end market demand.

Hydrant sales in the prior year quarter benefited from serving an elevated backlog and improved production.

<unk> sales in the prior year quarter benefited from serving an elevated backlog and improved production levels.

Despite lower net sales, adjusted operating income of $21.9 million increased 58.7% in the quarter.

Despite lower net sales adjusted operating income of $21 $9 million increased 58, 7% in the quarter.

Benefits from higher pricing lower SG&A expense and lower free costs more than offset lower

Benefits from higher pricing, lower SG&A expense and lower freight costs more than offset lower volumes.

Adjusted EBITDAV $29.1 million, increased 32.9% in the quarter, leading to an adjusted EBITDA margin of 20.8% compared with 14.4% last year.

Adjusted EBITDA of $29 $1 million increased 32, 9% in the quarter, leading to an adjusted EBITDA margin of 28% compared with 14, 4% last year.

For fiscal 2023, adjusted EBITDA margin improved by 60 basis points to 22.3%.

For fiscal 2023, adjusted EBITDA margin improved by 660 basis points to 22, 3%.

Net cash provided by operating activities for the full year of $109 million increased $56.7 million compared with the prior year. The increase was primarily driven by improvements in working capital compared with the prior year, including a sequential decrease in inventory during the fourth quarter. During the year, we invested $47.6 million in capital expenditures, compared with $54.7 million in the prior year.

Moving onto cash flow.

Net cash provided by operating activities for the full year of $109 million increased $56 $7 million compared with the prior year.

Greece was primarily driven by improvements in working capital compared with the prior year, including a sequential decrease in inventories during the fourth quarter.

During the year, we invested $47 6 million in capital expenditures compared with $54 $7 million in the prior year.

pre-cash flow for the year of $61.4 million increased, $63.8 million compared with the prior year, and with 62.7% of adjusted net income, which exceeded our expectation.

Free cash flow for the year of $61 $4 million increased $63 $8 million compared with the prior year and was 62, 7% of adjusted net income which exceeded our expectations.

During the fourth quarter, we repurchased $10 million in common stock. And as of September 30th, we had $90 million remaining under our share repurchase authorization.

During the fourth quarter, we repurchased $10 million in common stock and as of September 30, we had $90 million remaining under our share repurchase authorization.

At September 30, 2023, we had total debt outstanding of $447.4 million, and cash and cash equivalence of 160.3 million.

At September 32023, we had total debt outstanding of $447 4 million in cash and cash equivalents of $163 million.

At the end of the fourth quarter, our net debt leverage ratio improved to 1.4 times.

We do not have any borrowings under our ABL agreement at your end. Mortedly we borrow any amounts under our ABL during the year.

At the end of the fourth quarter, our net debt leverage ratio improved to one four times.

We do not have any borrowings under our ABL agreement at year end, nor did we borrow any amounts under our ABL during the year.

As a reminder, we currently have no maturities on our debt financing before June 2020.

With $322.7 million of total liquidity at the end of the year, we continue to have ample liquidity and capacity to support our strategic priorities, including acquisitions. I will now...

As a reminder, we currently have no maturities on our debt financing before June 2029.

With $322 $7 million of total liquidity at the end of the year, we continue to have ample liquidity and capacity to support our strategic priorities, including acquisitions.

I will now review our outlook for fiscal 2024, we.

We anticipate that channel and customer inventory levels will be substantially normalized by the end of the first quarter of fiscal 2024.

Our consolidated backlog declined about $400 million during the year and was approximately $326 million at the end of fiscal 2023.

This decline was primarily due to our short cycle products. Mainly our in gatebells and height.

Backlogs for Irongate Valsen Hydrant have normalized. While the backlog for service press products remains elevated.

This decline was primarily due to our short cycle products, mainly iron gate valves and hydrants.

Backlogs for Iron Gate valves, and hydrants have normalized while the backlog for service brass products remains elevated.

We are now emerging from the significantly elevated backlog levels of prior years. And we expect a softer macro environment going forward.

We are now emerging from a significantly elevated backlog levels of prior years, and we expect a softer macro environment going forward.

Inlet of our backlog and expectation of a lower demand environment in fiscal 2024. We anticipate that consolidated net sales will decrease between 3 and 8 percent in fiscal 2024 as compared with the prior year.

In light of our backlog and expectation of a lower demand environment in fiscal 2024.

We anticipate the consolidated net sales will decrease between 3% and 8% in fiscal 2024 as compared with the prior year.

For fiscal 2024, consolidated net sales seasonality is expected to be closer to pre-pandemic patterns. For example, net sales for the first half of the fiscal year, for the five-year period from 2015 to 2019, had an annual average of approximately 45 percent of consolidated net sales.

For fiscal 2020 for consolidated net sales seasonality is expected to be closer to pre pandemic patterns. For example, net sales for the first half of the fiscal year for the five year period from 2015 to 2019 at an annual average of approximately 45% of consolidated net sales.

For the first quarter of fiscal 2024, we anticipate consolidated net sales to range between $245 and $255 million, which is in line with our expectation that we will return to historical seasonality.

The first quarter of fiscal 2024, we anticipate consolidated net sales to range between 245 and $255 million.

As Marty mentioned, we continue to evaluate the business, financial and related impacts of the cybersecurity.

It is in line with our expectation that we will return to historical seasonality levels.

At this time, the full cost of the incident have not yet been determined.

As Marty mentioned, we continue to evaluate the business financial and related impacts of the cyber security incident.

However, we anticipate the incident will negatively impact our results.

At this time the full cost of the incident have not yet been determined.

Due to the ongoing evaluation of the impacts of the incident, we are not providing profitability and margin guidance for the fiscal year at this.

However, we anticipate the incident will negatively impact our results.

Due to the ongoing evaluation of the impacts of the incident, we are not providing profitability and margin guidance for the fiscal year. At this time. However, we currently expect margins to improve in the second half of the year, primarily due to continued operational and supply chain productivity improvements.

However, we currently expect margins to improve in the second half of the year, primarily due to continued operational and supply chain productivity improvements. With that, I'll turn it back to March.

Before we open it up for Q&A, I want to share some final thoughts.

With that I'll turn it back to Marty for closing comments.

Since taking on the CEO position, I have spent substantial time with our employees, channel partners, and customers. I have visited most of our facilities and spoken with many team members to better understand the opportunities for the business moving forward. It is very clear to me that we have a strong foundation built on our talented and committed employees, industry leading brands, and deep distribution channel and end customer relationships.

Thanks, Dave.

Before we open it up for Q&A I want to share some final thoughts.

Since taking on the CEO position I have spent substantial time with our employees channel partners and customers I have visited most of our facilities and spoken with many team members to better understand the opportunities for the business moving forward. It is very clear to me that we have a strong foundation built on our talented and committed.

Our broad portfolio of products and solutions allows us to play a critical role in addressing the challenges and opportunities facing the water infrastructure industry.

Employees industry, leading brand and deep distribution channel and end customer relationships are.

Our broad portfolio of products and solutions allows us to play a critical role in addressing the challenges and opportunities facing the water infrastructure industry.

We believe we are at an inflection point with our strategic investments and operational improvement.

By the current external head when we are facing, we are well positioned to deliver long-term, sustainable, organic growth and margin improvement.

We believe we are at an inflection point with our strategic investments and operational improvements. Despite the current external headwinds. We are facing we are well positioned to deliver long term sustainable organic growth and margin improvements in.

The municipal water and market is poised to benefit from the increased attention and investment towards the aging water infrastructure, while water utilities face a growing set of challenges requiring trusted partners.

The municipal water end market is poised to benefit from the increased attention and investment towards the aging water infrastructure, while water utilities face a growing set of challenges requiring trusted partners.

We believe we have the products and solutions that are positioned to benefit from the infrastructure bill once funds begin to flood.

We believe we have the products and solutions that are positioned to benefit from the infrastructure Bill once funds begin to flow.

Additionally, our strong balance sheet, liquidity and cash flow allow us to continue to deliver shareholder value by reinvesting in our operations and returning cash to shareholder.

Additionally, our strong balance sheet liquidity and cash flow allow us to continue to deliver shareholder value by reinvesting in our operations and returning cash to shareholders. This year, we allocated $48 $1 million to shareholders through share repurchases and our quarterly dividend, which was <unk>.

This year we allocated $48.1 million to shareholders through share repurchases and our quarterly dividend, which was recently increased for the eighth time since 2014. We are confident that the actions we are taking to execute our strategy will further strengthen Mueller for the long term.

<unk> increased for the eighth time since 2014.

That concludes my comment. Operator, please open this call for questions.

We are confident that the actions, we're taking to execute our strategy. We will further strengthen mueller for the long term.

We will now begin the question and answer session. If you would like to ask a question, please press star one. If you need to withdraw your question, press star two. Our first question comes from Brian Blair from Oppenheimer.

That concludes my comments operator, please open this call for questions.

We will now begin the question and answer session. If you would like to ask a question. Please press star one if you need to withdraw your question Press Star two our first question comes from Bryan Blair from Oppenheimer.

I appreciate the guidance on revenue cadence through the year. I was hoping you could offer a little more color on expectations for resi land development and repair and replace demand respectively. And along those lines, which factors may drive off-sider down so I'd relic to the assumptions you have baked into your guide.

Thank you good morning, everyone.

Hey, good morning, guys.

I appreciate the guidance on revenue revenue cadence through the year I was hoping you could offer a little more color on expectations for resi land developments and repair and replacement and respectively.

Certainly, so as we're looking out to our 2024 sales, I think, you know, overall the volume expectations are certainly one of the drivers that we look at it for the year over year.

Along those lines, what factors may drive upside or downside relative to the assumptions you have baked into your guide.

Certainly.

As we're looking out to <unk>.

2020 for sale I think overall.

We do think that this is end-market, are generally healthy, specifically looking at the newly repaired replacement market. We think it was overall pretty resilient in 20th grade. We think that that to still have some low single digit growth in 2024, but as you said, sort of the benefits that will ultimately come from the infrastructure bill, we really don't expect to start seeing them.

Volume expectations are certainly one of the drivers as you look at it on a year over year.

We do think that these end markets.

Are generally healthy.

Definitely looking at it.

The replacement market.

It was overall pretty resilient in 'twenty right.

We think that that could still have some low single digit growth in 2024, but as you said sort of the benefits that will ultimately come from the infrastructure Bill we really don't expect to start seeing them.

either it's a late, not this for 24 or their app.

With respect to residential construction, we saw that single family starts were down in our fiscal 23, about 16%. And we expect that some of the lower end market volumes that we're looking at are primarily gonna be reflective of the slowdown with residential construction activity. And large reason for that has been the higher interest rate environment that we have been in. And importantly, the associated mortgage rate.

Until late in our fiscal 'twenty, four or or thereafter.

With respect to residential construction, we saw that single family starts were down in our fiscal 'twenty three about 16%.

And we expect that the.

Some of the lower end market volumes that were looking at are primarily going to be reflected.

Slowdowns in residential construction activity and large reasons for that has been the higher interest rate environment that we have Dalian and importantly, the associated mortgage rate.

So, you know, as we think about this a little bit more, um, we know you have shallow moments as to the beyond.

We believe that the higher interest rates have impacted some of the land development, and that's typically where we come into play is when that our zone of infrastructure begins to build. But overall, you know, there are pockets of roads that we see across the U.S. But certainly with...

So.

As we think about this a little bit more.

We.

We believe that the prior interest rates have impacted some of the land development and Thats typically where we come into play is when that.

Speaker Change: Horizontal infrastructure begin Steve Bill.

Speaker Change: But overall, yes.

Speaker Change: There are pockets of growth that we see across the U S.

and commentary from the Fed yesterday where they have indicated that they may slow down, didn't have a break-in creep and even...

But certainly with.

Speaker Change: <unk> decision and commentary from the fed yesterday.

Sure.

I highlighted that there could be some rates but looking into 2024, I think certainly where interest rates go, but importantly, how that impacts mortgage rate could affect the residential construction market. But right now, as we're looking at it, we continue to expect a more modest flow down in the residential construction market and sort of maintenance in and around the meeting, the municipal repair and replacement.

They have indicated that they may slow down.

Didn't have a great.

Great inquiry and even.

Highlighted that there could be some rate, but looking into 2024 are they certainly.

Speaker Change: Interest rates, but importantly, how that impacts mortgage rates.

Could affect the residential construction market right now with we're looking at it.

We continue to expect a more modest slowdown in the resi construction market and sort of.

Understood those dynamics make sense. And if you're willing to provide the number, what was the expense related to outsourcing and other inefficiencies with the Foundry transition in the fourth quarter and remind us where that peaked and how you're thinking about those one-time-ish kind of inefficiencies phasing through your fiscal 24th.

Maintenance and turnarounds.

The municipal repair and replacement market.

Understood.

Speaker Change: Makes sense.

And if you're willing to.

Speaker Change: Provide the number what was the.

The expense related to outsourcing and other inefficiencies with the foundry transition.

Speaker Change: In the fourth quarter, and remind us where that peaks and how youre thinking about those.

So let me try to hit that. So I think overall we have identified some of the outsourcing costs that we have had and how that's impacted us due to the security to branch up with our new brass family. I would say a couple of days, our outsourcing costs have improved on a year-over-year basis and they can improve the question.

Speaker Change: Of those one time ish.

Speaker Change: Inefficiencies phasing through your fiscal 'twenty four.

Speaker Change: So let me let me try to hit that but I think overall, we have identified some of the outsourcing costs that we have had.

Speaker Change: So that's impacted us due to the fair.

Speaker Change: Period of ramp up with our new brass foundry.

Speaker Change: I would say couple of things.

I think this is in large part due to some of the that are supply chain communities overall and looking at the outskirts and costs as well as what we've been able to do with our other purchasing as well. We expect to continue to see some improvements with that as well as overall freight. Additionally, some of the

Speaker Change: Our outsourcing Paul.

Speaker Change: <unk> improved on a year over year basis and sequentially.

Speaker Change: I think this is in large part due to some of the debt.

Speaker Change: With our supply chain teams overall are looking at.

Speaker Change: The outsourcing.

Speaker Change: As well as what we've been able to do with our other purchasing as well.

Speaker Change: We expect to continue to see some improvements with that as well as overall right.

What we're seeing is we're adjusting to the different volume levels as we have brought down some of the backlogs, particularly that their hydrants and iron gates.

Speaker Change: Additionally, some of the.

So although we think we do think it will have a lower level of outsourcing and it's continued to see that improve throughout 2024.

Speaker Change: What we're saying is we are adjusting to the different volume levels as we have brought down some of the backlog, particularly with our heidrick and R&D.

Speaker Change: So although we think we do think that we will have a lower level of outsourcing and continue to see that improve throughout 2024.

With respect to the graph boundary, we did talk specifically that we're continuing to see improvement as we wrap up our new graph boundary.

Speaker Change: With respect to the grass downgrade, we did talk specifically that we're continuing to see improvements as we ramp up our new brass foundry.

And with the existing graph foundry that we have, we do expect to continue that to be operational through calendar 2024. It does cause us to have some duplicate of cost with those of those foundry. But importantly, as we look out with the higher backlog levels that we still have with our service-wrapped product.

Speaker Change: And with this.

Speaker Change: This new brass foundry that we have we do expect to continue that to be operational.

Speaker Change: For calendar 2024.

Speaker Change: It does cause us to have some duplicative costs with both of those foundries, but importantly, as we look out with the <unk>.

We think it's important to work to continue to lower that level of backlog.

Speaker Change: Higher backlog levels that we still have with our service brass products.

Additionally, when we look at infrastructure bill and specifically where we expect some of the earlier spending to be, it's certainly associated with the initiative and allocations around lead service line replacement. And I'll remind you with the lead service line replacement, that's where a lot of our service rash products can be. So our focus is on continuing to

Speaker Change: We think it's important to work to continue to lower that level of backlog. Additionally, when we look at infrastructure Bill and specifically, where we expect some of the.

Speaker Change: Earlier spending could be its certainly associated with the initiatives and allocations around lead service line replacement and I'll remind you that the lead service line replacement, that's where a lot of our service brass products.

keep the improvement going with our new brass foundry, working to bring down that service breath, that clause, and to be prepared as well for where we think that will be one of the benefits with the infrastructure.

Speaker Change: Our focus is on continuing to.

Speaker Change: Please the improvements going with our new brass foundry working to bring down that service breadth.

Yeah, the IJ has a fair bit in it for replacing wet service lines. And we're going to expect you to see that at the end of the year. So it's not coming in the immediate turn. And so we hope to see the benefit of that and the benefit of the reduction in operations that are also out to the pre-emerge.

Speaker Change: Backlog and to be prepared as well for where we think that will be one of the benefits of the infrastructure.

Jay: Yes, Jay.

Jay: And at four.

Jay: Replacing lead service lines.

Speaker Change: We'll go to Phil.

Phil: Expected to see that at the end of the year. So it's coming.

Phil: In the immediate term.

Phil: And so we hope to see the benefit of that.

Speaker Change: The benefit of.

Speaker Change: The reduction of operations.

Speaker Change: No.

Speaker Change: Okay.

Our next question comes from Joe Giodano from TD Cohen.

Speaker Change: Understood I appreciate the color. Thanks again.

Speaker Change: Our next question comes from Joe Giordano from TD Cohen.

Good morning, Michael. Thanks for taking my question. So last quarter you mentioned you were around half.

Speaker Change: Good morning, this is Michael on for Joe.

to the, you know, the tooling of your highest-solving products, to the new Foundry operations, and we're beginning to focus on the production side. Can you dive into just the remaining timeline of capital projects and the areas of the portfolio you still need to ramp on the production side? Thank you.

Speaker Change: Good morning, Michael.

Speaker Change: Thanks for taking my question. So last quarter, you mentioned you were around here.

Speaker Change: Two the two opening of your highest volume products.

Speaker Change: The new foundry operations, and we are beginning to focus on the production side.

Speaker Change: Dive into just the remaining timeline of capital projects.

Yeah, so what makes sure your question is really around part of the topic, spending going forward. Yep, on the, on the, on the.

Speaker Change: The areas of the portfolio.

Speaker Change: The ramp on the product side. Thank you.

Speaker Change: Yes. So thanks for your question is really around sort of the capex spending going forward.

Okay. Yeah. So overall with respect to our capital guidance, we are seeing, you know, I think we had indicated overall that, you know, once we got through the three major capital projects, we did expect to see our capital expenditure levels falling below 4% of our net sales.

Speaker Change: Yes.

Speaker Change: The foundry operations.

Speaker Change: Okay, Yeah. So so overall with respect to our capital guidance.

Speaker Change: We are seeing I think we had indicated overall, but once we got through the three major capital projects that we did expect to see our capital expenditure levels falling below.

As we look at 2024 specifically, we still do have some capital expenditures associated with the new brass foundry. We represent some of the additional machining that would be coming online in our 2024. Some of that, as I say, you've seen some of the extended supply chains that have certainly extended to some of the machinery that we purchased. So that's part of what we've got in confidence in our 2024. It'd be great if you could briefly include, you may investigate this.

Speaker Change: 4% of our net sales.

Speaker Change: As we look at 2024, specifically.

Speaker Change: We still do have some capital expenditures associated with the new brass foundry, we referenced some of the additional machining that would be coming online in our 2024.

Speaker Change: Yes. Some of that is I would say is we've seen some of the extended supply chains that as Doug said. This is some of the machinery that we purchased so that's part of what we've got encompassed in our our 2024.

And then, you know, with, you know, other than that, I would say we continue to have investments, you know, with our other operations, some would be along the maintenance line as we are largely vertically integrated and operate boundaries both on the iron and on the graph side. And additionally, we'll look to make some investments in our facilities that will just overall enhance our...

Speaker Change: And then with other than that I would say, we continue to have investments.

Speaker Change: With our other operations that would be along those Nathan.

Speaker Change: Nathan's line is we're largely vertically integrated and operates boundaries bezel iron and all the brass side.

Speaker Change: And Additionally, we will look to make some investments in our facilities that will just overall enhanced error.

And as we said, our expectations for capital spending in 24 is around 4% of net sales, or for the $2.25 and $50 million. And as we were concluding this major capital, products that we've embarked on over the prior years expected to decrease a bit.

Speaker Change: Operational efficiency.

Speaker Change: Yeah, and as we've said our expectations for capital spending in 2004 is around 4% of net sales.

Speaker Change: $50 million.

Speaker Change: As we were concluding these major capital projects that we've worked on over the prior years, we expect it to decrease a bit.

Great, that's helpful. And just one more thing, May. You mentioned last quarter, the restructuring of the sales and marketing organization. Can you just give some color on the nature of those changes and half our law you have been through and how much has been realized? Thank you.

Speaker Change: Great. That's helpful and just one more if I may.

Speaker Change: You mentioned last quarter restructuring of the sales and marketing organization can you just give us some color on the nature of those changes and how far along.

Yeah, so overall in terms of the FGNA and there were a couple of areas or a cost are selling general administrative expenses. We did have some reduction. We identified that we expect to have about $25 million in annual savings from that. We have realized some of those savings in our third quarter as well as in our fourth quarter and have realized almost 30% of those savings in our fiscal with me.

Speaker Change: You have been through and how much has been realized.

Speaker Change: Yes, so overall in terms of the SG&A and there were a couple of areas our cost our selling general and administrative expenses we.

Speaker Change: We did have some reductions.

Speaker Change: We identified that we expect to have about $25 million in annual savings from that.

Speaker Change: We have realized some of those savings in our third quarter as well as in our fourth quarter is that realized.

A lot of those savings are really coming from lower personnel related expenses, as well as third party fees associated with that. As we move into 24, we do still expect to realize the balance of those identified savings. Some of those savings will be offset by looking at

Speaker Change: 30% of those savings in our fiscal 'twenty three.

Speaker Change: A lot of those savings are really coming from lower personnel related expenses.

Speaker Change: As well as third party fees associated with that.

Speaker Change: We move into 'twenty four we do still expect to realize a balance of those identified savings.

Some additional investments in personnel, importantly, some inflation, as well as some of the additional investments will make in and around cyber structure, related infrastructure costs. Also in 24, we do expect it to be offset. When I said personnel, what I really met with some of the incentive costs that we will have in 24 relative to 23 in terms of projection.

Speaker Change: Some of those savings will be offset.

Speaker Change: By looking at.

Speaker Change: Some additional investments in personnel.

Speaker Change: Importantly, some.

Speaker Change: Inflation.

Speaker Change: As well as some of the us.

Speaker Change: Additional investments, we'll make in and around fiber structure.

Speaker Change: Weighted infrastructure costs.

Speaker Change: Also in 'twenty four we do expect it to be offset when I said personnel, what it really met with some of the incentive costs that we would have in 'twenty four relative to 'twenty three in terms of protection.

Speaker Change: Great. Thank you.

Good morning, this is Jeff Reeve on for Dean. My first question is kind of regarding the cybersecurity incident.

Speaker Change: Our next question comes from Deane Dray from RBC capital markets.

I think it's great to see that it's mostly contained and limited impact to the fiscal first quarter. But first I just can you confirm that you're not really expecting any lost or deferred sales at all from this. Also, will there be a free cash flow impact in the first quarter, like any delayed buildings leading to delayed collections on accounts receivable?

Speaker Change: Good morning. This is Jeff Reive on for Deane. My first question is regarding the cyber security incident.

Speaker Change: I think it is great to see that it's mostly contain limited impact.

Speaker Change: Impact to the fiscal first quarter.

Speaker Change: But first I just can you confirm that you're not really expecting any lost or deferred sales at all from this.

And regarding the cost associated with remediation, do you have any business disruption insurance in place to kind of recoup some of that?

Speaker Change: Also it will there be a free cash flow impact in the first quarter like any delayed billings, leading to delayed collections on accounts receivable and.

Speaker Change: And regarding the cost associated with remediation do you have any business disruption insurance in place to kind of recoup some of that.

All right, so let me go through and make sure we hit all your questions on them. If we didn't, certainly come back and, uh, and please ask them again. So, um, you know, let me, let me just sort of start, start out, um, with bigger picture, and then we'll get into some of the more.

Speaker Change: Alright, So let me go through and make sure we hit all your questions on this and if we Didnt certainly come back come back in and.

So for the cyber incident that we announced on October 28th, you know, very quickly after that, that we implemented our response and containment protocol. We also engaged in third party cyber security specialist to help-

Speaker Change: Lisa can make yet so.

Speaker Change: Let me, let me just sort of start start up.

Speaker Change: With bigger picture, then we'll get into some of the more specifics so for the cyber incident that we announced on October 28, very quickly after that.

We were focused on containment, but importantly also how to continue to run the business and servicing our customers.

Speaker Change: Implemented our response and curtailment protocol, we also engaged third party cyber security specialists to help support.

Although most of our facilities were impacted to a certain degree, we were able very quickly with most of our facilities to maintain our operation and to continue to take orders and ship products to our customers during this time.

Speaker Change: We were focused on containment, but importantly, also how to continue to run the business and servicing our customers.

Speaker Change: Although most of our facilities were impacted to a certain degree we were able very quickly to with most of our facilities to maintain our operations.

I would say we have learned a lot through this event. Unfortunately, we were seeing across the US and I say overall, even more concentration in the manufacturer industry that the five-row tax are increasing, which is certainly regrettable. But I know we referenced in our prepared remarks that certainly the team, the cybersecurity specialist that we engage really worked very quickly and effectively to not only address the incident, during the staff activities—

Speaker Change: And to continue to take orders and ship products to our customers.

Speaker Change: At this time.

Speaker Change: I would say we have learned a lot through this event Unfortunately were seeing across the U S and I'd say overall.

Even more concentration in the manufacturer industry that cyber attacks are increasing which is.

Speaker Change: Certainly with radical but I.

Speaker Change: I know, we referenced in our prepared remarks, but certainly the team.

We adjusted our processes where we needed to, but I think, importantly, that allowed us to largely de-alcohol-

Speaker Change: Security specialists that we engage really worked very quickly and effectively to not only address the incident, but to continue to service our customers.

Speaker Change: We.

then service in that. So I think taking some of your other specific questions in and around insurance and free cash flow, I'll turn that over.

Speaker Change: Adjusted our processes, where we needed to but I think importantly that allowed us to.

Speaker Change: Our fleet.

Speaker Change: Operational and servicing and servicing debt. So I think hitting some of your other specific questions in at around insurance and free cash flow I'll turn that over to Steve.

Yeah, we do have cyber and business community insurance, but as we mentioned in our prepare of remarks, the full cost of the incident have not yet been determined and we're assessing and still working on our position with respect to that.

Speaker Change: Yes.

Steve Bill: We do have a cyber and business continuity insurance, but as we mentioned in our prepared remarks, the full cost of the incident have not yet been determined that we're assessing.

We anticipate that the incident had some negative impact on us, but it would have been relatively modest for the first quarter of the 24 work. And that's kind of what we stand with respect to the estimation of the cost of the cyber.

And still working on our position with respect to that right now.

Steve Bill: We anticipate that the incident.

Steve Bill: The negative impact on us, but it would've been relatively modest for the first quarter of 2004.

And with respect to free cash flow, I would say we don't expect any uh, nanaeful impact in our

Steve Bill: And.

Steve Bill: That's kind of where we stand with respect to the estimation.

Steve Bill: So these are words, yes.

Steve Bill: Yes and.

Okay, that's great. Thanks. And then just maybe a broader question, but do you think there needs to be a larger internal investment into some of your software systems? I don't know if maybe some of these systems were old and this could be part of it, but is there any plans to kind of upgrade your systems internally?

With respect to free cash flow I would say, we don't expect any meaningful impact in our first quarter. Thank you.

Speaker Change: Okay. That's great. Thanks, and then.

Speaker Change: Just maybe a broader question, but do you think there needs to be a larger internal investment into some of your software systems I don't know if maybe some of these systems are old and this can be part of it but is there any plans to kind of upgrade or systems internally.

So what I would say with respect to that is maybe taking a different, I think, and this is one of the comments in and around our SG&A and our outlook for 2024, I do expect that we will be making more in that-

Speaker Change: So what I would say with respect to that is maybe taking a different.

Speaker Change: I think and this is one of the comments in and around our SG&A and our outlook for 2024.

in and around fiber security. So I do expect that you will have more investments in our 2024.

Speaker Change: I do expect that we will be making more investments.

Speaker Change: And in at our rail.

Speaker Change: Cyber security so I do expect that we will have more investments in our 2020.

As a reminder, if you would like to ask a question, please press star 1.

Speaker Change: Great. Thanks.

Speaker Change: As a reminder, if you would like to ask a question. Please press star one.

All right, well, look, thank you all for being on the call this morning. You know, when I texted this role, the President and CEO enjoying the Mueller water products for the directors, I just so with a commitment.

Speaker Change: Alright, well look.

Thank you all for that.

Speaker Change: We're being on the call this morning.

that I would leave Neal on a path to continue increasing margins, inserting this operational performance, and enhancing our positions with our customers, suppliers, and employees.

Speaker Change: Stepped into this role as president and CEO and join the Mueller water products Board of directors.

Speaker Change: So with the commitment and conviction that I believe Neal are on a path to continue increasing margins, including its operational performance and enhancing our position with our customers suppliers and employees.

We have made progress and we continue to execute on our strategic plan and initiative. Our challenges...

Speaker Change: We have made progress and we continue to execute on our strategic plan.

Speaker Change: Our challenges over the last few months.

Speaker Change: Have only highlighted what a terrific dedicated group of employees, we have as they most recently showed their agility focus and determination to service our customers and run our business as we navigated these challenges.

We play a critical role in helping to improve our aging infrastructure. And I am privileged and honored to leave this.

Aaron Floyd make a positive difference each and every day to serve the water and infrastructure in

Speaker Change: We play a critical role in <unk>.

Speaker Change: Helping to improve our aging infrastructure and I'm privileged and honored to lead this team.

We are seeing operational improvements across the business, and I am confident in our future opportunities for growth and margin expansion. Thank you all.

Speaker Change: Our employees make a positive difference each and every day to serve the water infrastructure industry. We.

Speaker Change: We are seeing operational improvements across the business and I am confident in our future opportunities for growth and margin expansion.

Speaker Change: Thank you all.

Speaker Change: That concludes today's conference. Thank you for participating.

Q4 2023 Mueller Water Products Inc Earnings Call

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