Mueller Water Products 8K Regulation FD Disclosure | MWA 31 Aug 10

Morgan Stanley

Global Industrials Unplugged

August 31, 2010

Exhibit 99.1

Safe Harbor Statement

This

presentation

contains

certain

statements

that

may

deemed

“forward-looking

statements”

within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that

address activities, events or developments that the Company intends, expects, plans, projects,

believes or anticipates will or may occur in the future are forward-looking statements. Examples

of forward-looking statements include, but are not limited to, statements the Company makes

regarding general economic conditions, spending by municipalities, the outlook for the

residential and non-residential construction markets, improvements related to capacity

utilization, the recovery, if any, of our end markets, and the potential effect of the refinancing

the

Company’s

operations,

and

the

impact

these

factors

our

businesses.

Forward-looking

statements

are

based

certain

assumptions

and

assessments

made

the

Company

light

its experience and perception of historical trends, current conditions and expected future

developments. Actual results and the timing of events may differ materially from those

contemplated by the forward-looking statements due to a number of factors, including regional,

national or global political, economic, business, competitive, market and regulatory conditions

and the following:

•

the demand level of manufacturing and construction activity;

•

the Company’s ability to service its debt obligations; and

•

the

other

factors

that

are

described

the

section

entitled

“RISK

FACTORS”

Item

of our most recently filed Annual Report on Form 10-K.

Undue reliance should not be placed on any forward-looking statements. The Company does not

have any intention or obligation to update forward-looking statements, except as required by

law.

Safe Harbor Statement

Non-GAAP Financial Measures

The Company presents adjusted income (loss) from operations, adjusted EBITDA, adjusted net

loss, adjusted net loss per share, free cash flow and net debt as non-GAAP measures. Adjusted

income (loss) from operations represents income (loss) from operations excluding impairment

and restructuring. Adjusted EBITDA represents income (loss) from operations excluding

impairment, restructuring, depreciation and amortization. The Company presents adjusted

EBITDA because it is a measure of performance management believes is frequently used by

securities analysts, investors and interested parties in the evaluation of financial performance.

Adjusted net loss and adjusted net loss per share exclude impairment, restructuring, loss on

early extinguishment of debt, certain costs to settle interest rate swap contracts, the tax on the

repatriation of earnings from Canada and the income tax effects of the other previously

mentioned items. These items are excluded because they are not considered indicative of

recurring

operations.

Free

cash

flow

represents

cash

flows

from

operating

activities,

less

certain

expenditures related to the early extinguishment of notes, less capital expenditures, and is

presented as a measurement of cash flow because it is commonly used by the investment

community. Net debt represents total debt less cash and cash equivalents. Net debt is commonly

used by the investment community as a measure of indebtedness. Adjusted income (loss) from

operations, adjusted EBITDA, adjusted net loss, adjusted net loss per share, free cash flow and

net debt have limitations as analytical tools, and investors should not consider any of these non-

GAAP measures in isolation or as a substitute for analysis of the Company's results as reported

under accounting principles generally accepted in the United States ("GAAP").

A reconciliation of non-GAAP to GAAP results is included as an attachment to this presentation

and

has

been

posted

online

www.muellerwaterproducts.com.

Non-GAAP Financial Measures

Leading North American provider of water

infrastructure and flow control products in

attractive and growing water industry

One of the largest installed bases in the U.S.

Investment Highlights

Strong brands

Leading specification positions in 99 of

100 largest U.S. metropolitan areas

Low-cost manufacturing processes

Our Business

•

$1.4B LTM net sales (as of June 30, 2010)

•

Portfolio includes:

•

Fire hydrants

•

Valves

•

Pipe fittings

•

Ductile iron pipe

•

Water meters

•

Specified in 99 of the largest 100 U.S. metropolitan

areas

•

Approximately 75% of FY2009 net sales from

products with #1 or #2 position

(1)

Based on management estimates

* New water distribution systems driven primarily by community development

The largest publicly traded water infrastructure company in the United States

FY2009 Primary End Markets

(1)

Broad Product Portfolio

$607

$80

$50

$130

SEGMENT NET SALES

PRODUCT

PORTFOLIO

ADJUSTED OPERATING

INCOME (LOSS)

(1)

$388

($49)

$19

($31)

$370

$18

$16

$34

Iron Gate

Valves

Butterfly, Ball

and Plug Valves

Fittings &

Couplings

Cast Iron

Fittings

Hangers &

Supports

Gas Products /

Tapping

Machines

Pipe Nipples

Hydrants

DEPRECIATION AND

AMORTIZATION

(2)

Est. 1857

Est. 1899

Est. 1999 (1850)

HISTORICAL ROOTS

ADJUSTED EBITDA

(1) (2)

Note: All statistics are actuals for LTM ended June 30, 2010

(1)

Segment operating income excludes corporate expenses of $33mm. Mueller Co. excludes $1mm of restructuring. U.S. Pipe excludes $12mm of restructuring. Anvil excludes $1mm of restructuring.

(2)

Segment depreciation and amortization excludes corporate depreciation of $1mm.

($ in millions)

Restrained Joint

Pipe

Ductile Iron

Pipe

Joint Restraint Joint Fitting

Complete Water Transmission Solutions

As water flows from

its source to

treatment facilities

to homes and

businesses across

North America, it

flows through or is

controlled by the

type of products we

manufacture, making

Mueller Water

Products an integral

part of the water

infrastructure

system.

* Company estimates based on internal analysis and information from trade associations and our distributor networks, where available.

Strategy And Objectives

•

Maintain leadership positions with customers and end users

•

Continue to enhance operational and organizational excellence

•

Broaden breadth and depth of products and services

•

Expand internationally

Capitalize on the large, attractive and growing water

infrastructure markets worldwide

Our End Markets

Primary End Markets

Non-Residential

Construction

$430mm

30%

Repair

and Replacement

(Public)

$850mm

85%

Residential

Construction*

(Private)

$150mm

15%

FY2009 Net Sales: $1.4B

Water Infrastructure

$1B

70%

Source: Management estimates

Residential is driven primarily by community development

Aging

Water Infrastructure

Average life of 100 year old and 75 year old pipe is converging,

contributing to accelerating need for pipe replacement.

(1) The EPA Clean Water and Drinking Water Infrastructure Gap Analysis 2002

Aging Water Infrastructure

•

An average of 700 water mains break daily

in U.S. (about one every two minutes)

(1)

•

Los Angeles typically has up to five breaks

daily; 225 major breaks each year

(2)

•

Baltimore water main break in March 2010

left 100,000 people without water

(3)

(1) Saving U.S. Water and sewer systems would be costly , The New York Times, March 15, 2010

(2) More water main breaks become business as usual, Daily News, October 20, 2009

(3) Thousands in Baltimore County still without water, The Baltimore Sun, March 8, 2010

June 2010 sinkhole 20’

x 8’

and 10’

to 15’

deep caused

by leak in 6”

pipe installed “probably in 1920s.”

Atlanta Journal-Constitution

Aging Water Infrastructure

“Crumbling infrastructure

has a direct impact on our

personal and economic

health, and the nation’s

infrastructure crisis is

endangering our future

prosperity.”

D. Wayne Klotz, P.E., F.ASCE

President

American Society of Civil Engineers

The Market Opportunity Is Significant And Growing

Repair and Replacement Market

•

Aging water pipes need to be rehabilitated / replaced

•

Valves and hydrants typically replaced at same time as

pipes

•

15% -

30% of treated potable water lost in leaky pipes

(2)

Funding and Spending

•

90% funded at local level

(3)

•

29% of water systems charge less than cost

(4)

Water Rates

•

Average annual rate increase between 1996 and 2006 of

4.1%

(5)

•

Average water rates increased 14% from 2008 to 2009

(6)

Source:

(1) EPA 2007 Drinking Water Needs Survey and Assessment

(2) Global Water Intelligence Water Technology Markets 2010

(3) EPA Clean Water and Drinking Water Infrastructure Gap Analysis

(4) Government Accountability Office 2004 report on water infrastructure

(5) American Water Works Association 2006 Water and Wastewater Rate Survey

(6) Global Water Intelligence

20-YR Need for Water Infrastructure = $335bn

$198

$335

$100

$200

$300

$400

$500

As of January 1999

As of January 2007

Comparison of 20-Year U.S. Need for Water Infrastructure

Investments ($ in billions)

(1)

Future Drinking Water Infrastructure Expenditure Needs

($ in billions)

(1)

Funding 2010 Water Infrastructure Repair

Sources:

(1) Bureau of Labor Statistics

(2) AWWA State of the Industry Report 2009

Other

23%

Bonds

Loans

46%

Operational Savings

24%

Rate

Increases 2%

Grants

Sources of Funding

Water Infrastructure

Repair

(2)

Historical Water Rates

Compared to Other

Utilities

(1)

Increasing Federal Awareness of Funding Needs

•

At least 30 cities under consent decrees

—

Atlanta $4.0B

—

Washington, D.C. $2.8B

—

Baltimore City and county $1.7B

—

Cincinnati $1.5B

•

1974/1996 Safe Drinking Water Act

•

1998 Disinfectants and Disinfection Byproducts

Rule

•

2011 proposed federal budget

—

Currently calls for $1.3B for drinking

water SRF

Stronger EPA regulations should lead to increased investment

In 2008, 40 percent of

the nation’s community

water systems violated

the Safe Drinking

Water Act at least

once, according to an

analysis of E.P.A. data.

The New York Times

(Sept. 2009)

Historical Housing Starts

Historical Housing Starts (1991 -

July 2010)

Seasonally Adjusted Annualized

400

650

900

1,150

1,400

1,650

1,900

2,150

2,400

1991-2009

Average 1,515

Bottom of prior down

cycle (798,000)

April -

Lowest starts (479,000)

since Census Bureau began

keeping records in 1959

2010 Forecast = 600,000

8.3% increase over 2009

Update on End Markets –

Residential Construction

Significant Economic Downturns

(1)

(1) Seasonally adjusted and annualized data from U.S. Census Bureau. Housing starts in thousands.

Significant Downturns

Peak

Trough

Length of

% Decline

Length of Recovery

Trough + 12 Months

Month

Starts

Month

Starts

Downturn

From Peak

To 1.6MM Starts

Starts

Increase

Feb-1959

1,667

Dec-1960

1,063

22 months

(36.2%)

23 months

1,365

28.4%

Dec-1965

1,656

Oct-1966

843

10 months

(49.1%)

25 months

1,491

76.9%

Jan-1969

1,769

Jan-1970

1,085

12 months

(38.7%)

10 months

1,828

68.5%

Oct-1972

2,485

Feb-1975

904

28 months

(63.6%)

19 months

1,538

70.1%

Apr-1978

2,197

Nov-1981

837

44 months

(61.9%)

15 months

1,372

63.9%

Jan-1986

1,972

Jan-1991

798

61 months

(59.5%)

38 months

1,176

47.4%

Jan-2006

2,273

Apr-2009

479

39 months

(78.9%)

TBD

Average

2,003

858

31 months

(57.1%)

22 months

1,462

59.2%

Median

1,972

843

28 months

(57.3%)

21 months

1,432

66.2%

Non-Residential Construction

Average 3-Month Change in Non-Residential

Construction

Data as of July 21, 2010

Non-Residential Construction Actual / Forecast

Business Update

$107

$114

$142

$168

$222

$179

$153

$75

$24

$33

$34

$14

$27

$45

$51

$59

$76

$45

$20

13.7%

0.7%

4.0%

5.5%

0.4%

2.0%

3.6%

6.3%

9.3%

9.5%

10.6%

12.8%

9.5%

21.3%

23.7%

27.6%

21.0%

25.3%

23.0%

4.1%

6.3%

(1.9%)

(9.7%)

($50)

$50

$100

$150

$200

$250

$300

2002

2003

2004

2005

2006

2007

2008

2009

2002

2003

2004

2005

2006

2007

2008

2009

2002

2003

2004

2005

2006

2007

2008

2009

(12.0%)

(5.0%)

2.0%

9.0%

16.0%

23.0%

30.0%

($9)

($40)

$509

$536

$618

$664

$804

$756

$718

$547

$492

$465

$551

$598

$595

$537

$546

$411

$393

$387

$431

$485

$535

$556

$595

$470

$200

$400

$600

$800

$1,000

2002

2003

2004

2005

2006

2007

2008

2009

2002

2003

2004

2005

2006

2007

2008

2009

2002

2003

2004

2005

2006

2007

2008

2009

(

)

NET SALES

OPERATING

INCOME

OPERATING

MARGIN

($ in millions)

(e)

(c)

(d)

(e)

History Of Strong Financial Performance

(e)

(a)

(b)

(a)

Fiscal year end as of September 30 .

(b)

Financials for 2002 and 2003 are calendar year while subsequent years are fiscal year ending September 30

(c)

Excludes $6.5 mm of litigation settlement expenses in 2003.

(d)

Excludes environmental-related insurance settlement benefits of $1.9 mm and $5.1 mm in 2004 and 2005, respectively.

(e)

Excludes U.S. Pipe Chattanooga closing costs of $49.9 mm; Mueller Co. inventory step-up costs of $53.5 mm and Anvil inventory step-up costs of $17.3 mm; U.S. Pipe restructuring charges of $18.3 mm, incremental amortization expense of $23.6 mm for Mueller Co. and $1.8 mm for

Anvil

FY2006;

$24.0mmfor

Mueller

Co.,

$1.7

for

Anvil,

and$0.7mmforU.S.

Pipe

FY2007;

$24.1mmfor

Mueller

Co,$1.0mmfor

U.S

Pipe,and

incremental

amortization

expense

$1.7

for

Anvil

2008;and$25.4

for

Mueller

Co,

$0.9

for

U.S

Pipe,

and $1.7 mm for Anvil in FY 2009; restructuring charges of $2.0 mm for Mueller Co, $41.6 mm for U.S. Pipe, and $4.0 mm

for

Anvil

2009;

good

will

impairment

charges of $818.7 mm for Mueller Co, $59.5 mm for U.S. Pipe, and $92.7 mm for

Anvil

2009.

(e)

Consolidated Non-GAAP Results

•

Began to see the benefits of January valve and hydrant price increases

•

Average prices on pipe shipments at U.S. Pipe were down YOY but up sequentially. Order price up sequentially.

•

Significant improvement in operating margins on increased volumes, manufacturing and other cost savings, and

increased capacity utilization primarily at Mueller Co. and U.S.

Pipe

•

Continue to see signs of stabilization in most of Anvil’s end markets

•

We believe our distributors and our end customers are approaching the 4 quarter with caution given uncertain

economic climate

3Q10

results

exclude

restructuring

$0.9

million,

$0.5

million

net

tax,

and

$2.2

million

tax

expense

the

repatriation

Canadian

earnings

3Q09

results

exclude

restructuring

$3.9

million,

$2.4

million

net

tax,

and

$2.3

million,

$1.4

million

net

tax,

loss

early

extinguishment

debt

$ in millions (except per share amounts)

2010

2009

Net sales

$375.9

$363.2

Adj. income (loss) from operations

$13.4

($4.6)

Adj. operating income (loss) % of net sales

3.6%

(1.3%)

Adj. net loss per share

($0.01)

($0.13)

Adj. EBITDA

$34.5

$17.0

Adj. EBITDA % of net sales

9.2%

4.7%

Third Quarter Fiscal

Refinancing Highlights

•

Recapitalization provides a long-term capital

structure

•

Extends maturities with no required principal

payments before 2015

•

Locks in long term capital at attractive rates

•

Preserves deleveraging capability

•

Expect greater operational flexibility

•

Elimination of financial maintenance covenants

with excess availability of $34.4mm or 12.5% of

facility amount

•

Pro forma excess availability at June 30,

2010 of $157mm, after $49mm initial

borrowing and $37.6mm letters of credit

•

Reduces limitation on business operations

including acquisitions, investments, restricted

payments and divestitures

New structure:

•

$420mm 7 3/

% Senior Subordinated Notes due

2017

•

$225mm 8 3/

% Senior Unsecured Notes due

2020

•

$275mm ABL Revolver Credit Facility due 2015

($49mm drawn at 8/26/10)

Debt Maturity

($ in millions)

$49

$225

$420

$226

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

Capital Structure

Notes:

2007

excludes

$48.1

million

cash

costs

debt

restructuring

activities.

Reduced debt by $856mm

from March 31, 2006

through June 30, 2010

Reduced debt by $269mm

in the 12 months ended

June 30, 2010

Free Cash Flow

($ in millions)

$37

$115

$94

$91

$14

$20

$40

$60

$80

$100

$120

$140

FY2006

FY2007*

FY2008

FY2009

FYTD 6/30/2010

Total Debt

($ in millions)

$1,549

$1,127

$1,101

$1,096

$740

$693

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

Mar-2006

FY2006

FY2007*

FY2008

FY2009

Jun 2010

Investment Highlights

•

Water industry has fundamentally strong long-term dynamics

•

Driven by new and upgraded infrastructure

•

Limited number of suppliers to end markets

•

Strong competitive position

•

Leading brand positions with large installed base

•

Leading municipal specification positions

•

Comprehensive distribution network

•

Low-cost manufacturing operations

•

Operating leverage when volumes improve

•

Growth opportunities

•

Organic growth

•

Strategic acquisitions

Supplemental Data

Segment Results and Reconciliation of Non-GAAP to GAAP

Performance Measures

(in millions, except per share amounts)

Three months ended June 30, 2010

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

174.6

120.2

81.1

375.9

Gross profit (loss)

52.1

(2.7)

21.1

0.1

70.6

Selling, general and administrative expenses

23.3

7.7

16.6

9.6

57.2

Restructuring

0.9

Income (loss) from operations

28.8

(11.3)

4.5

(9.5)

12.5

Interest expense, net

15.8

Income tax expense

0.5

Net loss

(3.8)

Net loss per diluted share

(0.02)

Capital expenditures

2.7

2.1

2.0

6.8

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Income (loss) from operations

28.8

(11.3)

4.5

(9.5)

12.5

Restructuring

0.9

Adjusted income (loss) from operations

28.8

(10.4)

4.5

(9.5)

13.4

Depreciation and amortization

12.3

4.6

3.9

0.3

21.1

Adjusted EBITDA

41.1

(5.8)

8.4

(9.2)

34.5

Adjusted net loss:

Net loss

(3.8)

Tax on repatriation on Canadian earnings

2.2

Restructuring, net of tax

0.5

Adjusted net loss

(1.1)

Adjusted net loss per diluted share

(0.01)

Free cash flow:

Net cash used in operating activities

(8.6)

Capital expenditures

(6.8)

Free cash flow

(15.4)

Net debt (end of period):

Current portion of long-term debt

10.5

Long-term debt

682.2

Total debt

692.7

Less cash and cash equivalents

(77.1)

Net debt

615.6

Segment Results and Reconciliation of Non-GAAP to GAAP

Performance Measures

(in millions, except per share amounts)

Three months ended June 30, 2009

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

154.6

96.7

111.9

363.2

Gross profit (loss)

35.8

(6.0)

28.1

(0.1)

57.8

Selling, general and administrative expenses

22.2

10.8

21.4

8.0

62.4

Impairment and restructuring

0.7

1.5

1.7

3.9

Income (loss) from operations

12.9

(18.3)

5.0

(8.1)

(8.5)

Interest expense, net

17.2

Loss on early extinguishment of debt

2.3

Income tax benefit

(9.0)

Net loss

(19.0)

Net loss per diluted share

(0.16)

Capital expenditures

1.7

1.6

1.8

5.1

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Income (loss) from operations

12.9

(18.3)

5.0

(8.1)

(8.5)

Impairment and restructuring

0.7

1.5

1.7

3.9

Adjusted income (loss) from operations

13.6

(16.8)

6.7

(8.1)

(4.6)

Depreciation and amortization

12.7

4.3

4.4

0.2

21.6

Adjusted EBITDA

26.3

(12.5)

11.1

(7.9)

17.0

Adjusted net loss:

Net loss

(19.0)

Restructuring, net of tax

2.4

Loss on early extinguishment of debt, net of tax

1.4

Adjusted net loss

(15.2)

Adjusted net loss per diluted share

(0.13)

Free cash flow:

Net cash provided by operating activities

70.5

Capital expenditures

(5.1)

Free cash flow

65.4

Net debt (end of period):

Current portion of long-term debt

19.3

Long-term debt

941.9

Total debt

961.2

Less cash and cash equivalents

(80.1)

Net debt

881.1

Segment Results and Reconciliation of Non-GAAP to GAAP

Performance Measures

(in millions, except per share amounts)

Nine months ended June 30, 2010

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

449.1

282.9

258.8

990.8

Gross profit (loss)

121.2

(19.6)

63.0

0.1

164.7

Selling, general and administrative expenses

66.7

22.3

48.0

26.0

163.0

Restructuring

0.1

11.6

0.1

11.8

Income (loss) from operations

54.4

(53.5)

14.9

(25.9)

(10.1)

Interest expense, net

47.4

Loss on early extinguishment of debt

0.5

Income tax benefit

(19.8)

Net loss

(38.2)

Net loss per diluted share

(0.25)

Capital expenditures

9.8

7.4

4.1

0.1

21.4

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Income (loss) from operations

54.4

(53.5)

14.9

(25.9)

(10.1)

Restructuring

0.1

11.6

0.1

11.8

Adjusted income (loss) from operations

54.5

(41.9)

15.0

(25.9)

1.7

Depreciation and amortization

37.2

14.0

11.5

0.6

63.3

Adjusted EBITDA

91.7

(27.9)

26.5

(25.3)

65.0

Adjusted net loss:

Net loss

(38.2)

Restructuring, net of tax

7.1

Tax on repatriation on Canadian earnings

2.2

Interest rate settlement costs, net of tax

(0.7)

Loss on early extinguishment of debt, net of tax

0.3

Adjusted net loss

(29.3)

Adjusted net loss per diluted share

(0.19)

Free cash flow:

Net cash provided by operating activities

35.7

Capital expenditures

(21.4)

Free cash flow

14.3

Net debt (end of period):

Current portion of long-term debt

10.5

Long-term debt

682.2

Total debt

692.7

Less cash and cash equivalents

(77.1)

Net debt

615.6

Segment Results and Reconciliation of Non-GAAP to GAAP

Performance Measures

(in millions, except per share amounts)

Nine months ended June 30, 2009

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

389.0

305.6

358.5

1,053.1

Gross profit (loss)

89.3

(6.3)

104.8

(0.1)

187.7

Selling, general and administrative expenses

64.6

27.9

64.7

27.5

184.7

Impairment and restructuring

820.1

100.9

95.6

0.2

1,016.8

Loss from operations

(795.4)

(135.1)

(55.5)

(27.8)

(1,013.8)

Interest expense, net

51.1

Loss on early extinguishment of debt

0.8

Income tax benefit

(79.9)

Net loss

(985.8)

Net loss per diluted share

(8.52)

Capital expenditures

7.8

7.1

7.5

0.3

22.7

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Loss from operations

(795.4)

(135.1)

(55.5)

(27.8)

(1,013.8)

Impairment and restructuring

820.1

100.9

95.6

0.2

1,016.8

Adjusted income (loss) from operations

24.7

(34.2)

40.1

(27.6)

3.0

Depreciation and amortization

38.2

16.6

13.0

0.5

68.3

Adjusted EBITDA

62.9

(17.6)

53.1

(27.1)

71.3

Adjusted net loss

Net loss

(985.8)

Impairment and restructuring, net of tax

953.7

Loss on early extinguishment of debt, net of tax

0.5

Adjusted net loss

(31.6)

Adjusted net loss per diluted share

(0.27)

Free cash flow:

Net cash provided by operating activities

68.3

Capital expenditures

(22.7)

Free cash flow

45.6

Net debt (end of period):

Current portion of long-term debt

19.3

Long-term debt

941.9

Total debt

961.2

Less cash and cash equivalents

(80.1)

Net debt

881.1

Segment Results And Reconciliation Of Non-GAAP To GAAP

Performance Measures

(in millions, except per share amounts)

Year ended September 30, 2009

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

547.1

410.9

469.9

1,427.9

Loss from operations

(770.6)

(142.4)

(53.4)

(34.5)

(1,000.9)

Interest expense, net

78.3

Loss on early extinguishment of debt, net

3.8

Income tax benefit

(86.3)

Net loss

(996.7)

Net loss per diluted share

(8.55)

Capital expenditures

16.2

11.2

11.9

0.4

39.7

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Loss from operations

(770.6)

(142.4)

(53.4)

(34.5)

(1,000.9)

Impairment

818.7

59.5

92.7

970.9

Restructuring

2.0

41.6

4.0

0.2

47.8

Adjusted income (loss) from operations

50.1

(41.3)

43.3

(34.3)

17.8

Depreciation and amortization

50.9

21.1

17.6

0.6

90.2

Adjusted EBITDA

101.0

(20.2)

60.9

(33.7)

108.0

Adjusted net loss:

Net loss

(996.7)

Impairment, net of tax

925.9

Restructuring, net of tax

29.0

Interest rate settlement costs, net of tax

3.8

Loss on early extinguishment of debt, net of tax

2.3

Adjusted net loss

(35.7)

Adjusted net loss per diluted share

(0.31)

Free cash flow:

Net cash used in operating activities

121.9

Capital expenditures

(39.7)

Free cash flow

82.2

Net debt (end of period):

Current portion of long-term debt

11.7

Long-term debt

728.5

Total debt

740.2

Less cash and cash equivalents

(61.5)

Net debt

678.7

Segment Results And Reconciliation Of Non-GAAP To GAAP

Performance Measures

(in millions, except per share amounts)

Year ended September 30, 2008

Mueller Co.

U.S. Pipe

Anvil

Corporate

Total

GAAP results:

Net sales

718.1

546.0

595.2

1,859.3

Income (loss) from operations

128.4

(17.4)

74.1

(39.0)

146.1

Interest expense, net

72.4

Income tax expense

31.7

Net income

42.0

Net income per diluted share

0.36

Capital expenditures

17.9

58.5

11.5

0.2

88.1

Non-GAAP results:

Adjusted income (loss) from operations and EBITDA:

Income (loss) from operations

128.4

(17.4)

74.1

(39.0)

146.1

Restructuring charges

18.3

Adjusted income (loss) from operations

128.4

0.9

74.1

(39.0)

164.4

Depreciation and amortization

50.1

22.7

19.7

0.6

93.1

Adjusted EBITDA

178.5

23.6

93.8

(38.4)

257.5

Adjusted net income:

Net income

42.0

Restructuring charges, net of tax

11.1

Adjusted net income

53.1

Adjusted net income per diluted share

0.46

Free cash flow:

Net cash provided by operating activities

182.0

Capital expenditures

(88.1)

Free cash flow

93.9

Net debt (end of period):

Current portion of long-term debt

6.1

Long-term debt

1,090.6

Total debt

1,096.7

Less cash and cash equivalents

(141.9)

Net debt

954.8

Questions

Mueller Water Products (MWA) 8-KRegulation FD Disclosure