Mueller Water Products, Inc. (MWA) has reported an 8.06 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $6.70 million, or $0.04 a share in the quarter, compared with $6.20 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $6.30 million, or $0.04 a share compared with $4.60 million or $0.03 a share, a year ago.

Revenue during the quarter went up marginally by 2.51 percent to $167.20 million from $163.10 million in the previous year period. Gross margin for the quarter expanded 174 basis points over the previous year period to 30.92 percent. Total expenses were 91.69 percent of quarterly revenues, down from 93.01 percent for the same period last year. This has led to an improvement of 132 basis points in operating margin to 8.31 percent.

Operating income for the quarter was $13.90 million, compared with $11.40 million in the previous year period.

However, the adjusted operating income for the quarter stood at $15.20 million compared to $12.20 million in the prior year period. At the same time, adjusted operating margin improved 161 basis points in the quarter to 9.09 percent from 7.48 percent in the last year period.

The Board also appointed J. Scott Hall as president and chief executive officer, effective January 23, 2017, succeeding Gregory E. Hyland, who has transitioned to the role of executive chairman. "We saw sales growth and continued margin expansion at Mueller Co. and Mueller Technologies in the first quarter, with our strongest growth being in our technology business where net sales grew almost 14 percent year-over-year and adjusted operating income also continued to improve," said Hyland. "Finally, I welcome Scott Hall, who has joined the Company from Textron, where he was president of its Industrial segment."

The company has spent $4.20 million cash to meet investing activities during the quarter as against cash outgo of $4.70 million in the last year period.

The company has spent $8.10 million cash to carry out financing activities during the quarter as against cash outgo of $4.20 million in the last year period.

Cash and cash equivalents stood at $172.30 million as on Dec. 31, 2016, up 64.88 percent or $67.80 million from $104.50 million on Dec. 31, 2015.

Working capital increases sharply

Mueller Water Products, Inc. has recorded an increase in the working capital over the last year. It stood at $531 million as at Dec. 31, 2016, up 47.38 percent or $170.70 million from $360.30 million on Dec. 31, 2015. Current ratio was at 4.91 as on Dec. 31, 2016, up from 3.73 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 76 days for the quarter from 202 days for the last year period. Days sales outstanding went down to 77 days for the quarter compared with 90 days for the same period last year.

Days inventory outstanding has decreased to 57 days for the quarter compared with 179 days for the previous year period. At the same time, days payable outstanding went down to 57 days for the quarter from 66 for the same period last year.