Mueller Water Products (MWA) 8-K Regulation FD Disclosure

D.A.

Davidson

9

th

Annual Engineering &

Construction

Conference

September 28, 2010

Exhibit 99.1

2

Safe

Harbor

Statement

This

presentation

contains

certain

statements

that

may

be

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

on

the

Company’s

operations,

and

the

impact

of

these

factors

on

our

businesses.

Forward-looking

statements

are

based

on

certain

assumptions

and

assessments

made

by

the

Company

in

light

of

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

in

the

section

entitled

“RISK

FACTORS”

in

Item

1A

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

3

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

at

www.muellerwaterproducts.com.

Non-GAAP Financial Measures

4

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

5

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)

6

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

7

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.

8

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

9

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

11

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

12

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

$0

$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)

13

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

14

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

15

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

16

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)

17

Funding 2010 Water Infrastructure Repair

Sources:

(1)

Bureau

of

Labor

Statistics

(2)

AWWA

State

of

the

Industry

Report

2009

Other

23%

Bonds

3%

Loans

46%

Operational Savings

24%

Rate

Increases 2%

Grants

1%

Sources of Funding

Water Infrastructure

Repair

(2)

Historical Water Rates

Compared to Other

Utilities

(1)

18

Historical Housing Starts

Historical

Housing

Starts

(1991

-

August

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 (477,000)

since Census Bureau began

keeping records in 1959

2010 Forecast = 600,000  

8.3% increase over 2009

19

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

477

39 months

(79.0%)

TBD

TBD

TBD

Average

2,003

858

31 months

(57.2%)

22 months

1,350

57.3%

Median

1,972

843

28 months

(57.3%)

21 months

1,372

62.8%

20

Non-Residential Construction

Average 3-Month Change in Non-Residential

Construction

Non-Residential Construction Actual / Forecast

Actions & Business

Results

22

Management Actions/Initiatives

Objectives

Cost Savings Actions

Reduce costs and improve

operating leverage

Six

plants

closed

between

FY2006-

current

Sold certain non-core assets of Anvil

Reduced headcount 25% from September 30, 2007 to June 30, 2010 from approximately

6,700

employees

to

approximately

5,000

Took actions to lower labor costs

LEAN Six Sigma and other manufacturing improvements (continuous

improvement)

Invested in new automated ductile iron pipe operation to lower

products costs

Manage working capital and

capital expenditures to

generate free cash flow

Capital spending decreased from FY2007/FY2008 levels

FY2009 capital spending of $39.7 million;FY2010 capital spending

projected to be $39 to $41 million

Reduced inventory by $117 million in FY2009; $67million reduction

3Q10 YTD

Reduced debt by $269 million from June 30, 2009 through June 30, 2010

23

$509

$536

$618

$664

$804

$756

$718

$547

$492

$465

$551

$598

$595

$537

$546

$411

$393

$387

$431

$485

$535

$556

$595

$470

$0

$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

$107

$114

$142

$168

$222

$179

$153

$75

$4

$24

$33

$34

$2

$8

$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%

21.3%

23.7%

27.6%

21.0%

25.3%

23.0%

4.1%

6.3%

(1.9%)

(9.7%)

($50)

$0

$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)

NET SALES

OPERATING

INCOME

&

OPERATING

MARGIN

($ in millions)

History Of Strong Financial Performance

24

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

th

quarter

with

caution

given

uncertain

economic climate

FY

3Q10

results

exclude

restructuring

$0.9

million,

$0.5

million

net

of

tax,

and

$2.2

million

tax

expense

on

the

repatriation

of

Canadian

earnings

FY

3Q09

results

exclude

restructuring

$3.9

million,

$2.4

million

net

of

tax,

and

$2.3

million,

$1.4

million

net

of

tax,

on

loss

on

early

extinguishment

of

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

25

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/

8

% Senior Subordinated Notes due

2017

•

$225mm 8 3/

4

% Senior Unsecured Notes due

2020

•

$275mm ABL Revolver Credit Facility due 2015

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

Debt Maturity

($ in millions)

$0

$0

$0

$0

$0

$0

$0

$0

$49

$225

$420

$226

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

26

Capital Structure

Notes:

*

FY

2007

excludes

$48.1

million

of

cash

costs

related

to

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

$0

$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

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

Mar-2006

FY2006

FY2007*

FY2008

FY2009

Jun 2010

27

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

29

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

-

-

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

-

-

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

$      

30

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

$      

31

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

$      

32

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

$      

33

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

$      

34

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

-

-

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