| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Quarter ended | Year ended | ||||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||
| 2015 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||
| Net sales: | |||||||||||||||||||
| Mueller Co. | $ | 144.7 | $ | 182.2 | $ | 198.7 | $ | 190.1 | $ | 715.7 | |||||||||
| Mueller Technologies | 18.4 | 15.0 | 26.0 | 25.5 | 84.9 | ||||||||||||||
| 163.1 | 197.2 | 224.7 | 215.6 | 800.6 | |||||||||||||||
| Cost of sales: | |||||||||||||||||||
| Mueller Co. | 100.7 | 124.5 | 121.2 | 118.6 | 465.0 | ||||||||||||||
| Mueller Technologies | 14.8 | 13.4 | 20.3 | 19.2 | 67.7 | ||||||||||||||
| 115.5 | 137.9 | 141.5 | 137.8 | 532.7 | |||||||||||||||
| Gross profit | 47.6 | 59.3 | 83.2 | 77.8 | 267.9 | ||||||||||||||
| Selling, general and administrative expenses: | |||||||||||||||||||
| Mueller Co. | 20.0 | 22.4 | 23.4 | 22.6 | 88.4 | ||||||||||||||
| Mueller Technologies | 6.9 | 6.5 | 7.2 | 6.8 | 27.4 | ||||||||||||||
| Corporate | 8.5 | 8.5 | 8.8 | 9.6 | 35.4 | ||||||||||||||
| Other charges: | |||||||||||||||||||
| Mueller Co. | 0.2 | 0.4 | 2.4 | — | 3.0 | ||||||||||||||
| Mueller Technologies | 0.5 | — | — | 0.4 | 0.9 | ||||||||||||||
| Corporate | 0.1 | 0.4 | 18.8 | 0.6 | 19.9 | ||||||||||||||
| Operating income | 11.4 | 21.1 | 22.6 | 37.8 | 92.9 | ||||||||||||||
| Interest expense, net | 6.1 | 5.9 | 6.0 | 5.6 | 23.6 | ||||||||||||||
| Income before income taxes | 5.3 | 15.2 | 16.6 | 32.2 | 69.3 | ||||||||||||||
| Income tax expense | 1.3 | 4.9 | 5.6 | 12.4 | 24.2 | ||||||||||||||
| Income from continuing operations | 4.0 | 10.3 | 11.0 | 19.8 | 45.1 | ||||||||||||||
| Income from discontinued operations | 2.2 | 5.4 | 4.5 | 6.7 | 18.8 | ||||||||||||||
| Net income | $ | 6.2 | $ | 15.7 | $ | 15.5 | $ | 26.5 | $ | 63.9 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 160.8 | 161.3 | 161.6 | 161.7 | 161.3 | ||||||||||||||
| Diluted | 163.2 | 163.1 | 163.6 | 163.9 | 163.4 | ||||||||||||||
| Income per average basic share: | |||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | 0.06 | $ | 0.07 | $ | 0.12 | $ | 0.28 | |||||||||
| Discontinued operations | 0.02 | 0.04 | 0.03 | 0.04 | 0.12 | ||||||||||||||
| Net income | $ | 0.04 | $ | 0.10 | $ | 0.10 | $ | 0.16 | $ | 0.40 | |||||||||
| Income per average diluted share: | |||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | 0.06 | $ | 0.07 | $ | 0.12 | $ | 0.28 | |||||||||
| Discontinued operations | 0.02 | 0.04 | 0.02 | 0.04 | 0.11 | ||||||||||||||
| Net income | $ | 0.04 | $ | 0.10 | $ | 0.09 | $ | 0.16 | $ | 0.39 | |||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATIONS OF GAAP TO NON-GAAP PERFORMANCE MEASURES | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Quarter ended | Year ended | ||||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||
| 2015 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||
| Income from continuing operations | $ | 4.0 | $ | 10.3 | $ | 11.0 | $ | 19.8 | $ | 45.1 | |||||||||
| Other charges | 0.8 | 0.8 | 21.2 | 1.0 | 23.8 | ||||||||||||||
| Income tax adjustment | (0.2 | ) | (0.3 | ) | (7.2 | ) | (0.4 | ) | (8.1 | ) | |||||||||
| Adjusted income from continuing operations | $ | 4.6 | $ | 10.8 | $ | 25.0 | $ | 20.4 | $ | 60.8 | |||||||||
| Weighted average shares outstanding | 163.2 | 163.1 | 163.6 | 163.9 | 163.4 | ||||||||||||||
| Adjusted income from continuing operations per share | $ | 0.03 | $ | 0.07 | $ | 0.15 | $ | 0.12 | $ | 0.37 | |||||||||
| Net income | $ | 6.2 | $ | 15.7 | $ | 15.5 | $ | 26.5 | $ | 63.9 | |||||||||
| Discontinued operations | (2.2 | ) | (5.4 | ) | (4.5 | ) | (6.7 | ) | (18.8 | ) | |||||||||
| Other charges | 0.8 | 0.8 | 21.2 | 1.0 | 23.8 | ||||||||||||||
| Interest expense, net | 6.1 | 5.9 | 6.0 | 5.6 | 23.6 | ||||||||||||||
| Income tax expense | 1.3 | 4.9 | 5.6 | 12.4 | 24.2 | ||||||||||||||
| Adjusted operating income | 12.2 | 21.9 | 43.8 | 38.8 | 116.7 | ||||||||||||||
| Depreciation and amortization: | |||||||||||||||||||
| Mueller Co. | 8.4 | 8.6 | 8.5 | 8.7 | 34.2 | ||||||||||||||
| Mueller Technologies | 1.1 | 1.2 | 1.2 | 1.3 | 4.8 | ||||||||||||||
| Corporate | 0.1 | 0.1 | 0.1 | 0.2 | 0.5 | ||||||||||||||
| Adjusted EBITDA | $ | 21.8 | $ | 31.8 | $ | 53.6 | $ | 49.0 | $ | 156.2 | |||||||||
| Non-GAAP measures by segment: | |||||||||||||||||||
Adjusted operating income (loss) (1): | |||||||||||||||||||
| Mueller Co. | $ | 24.0 | $ | 35.3 | $ | 54.1 | $ | 48.9 | $ | 162.3 | |||||||||
| Mueller Technologies | (3.3 | ) | (4.9 | ) | (1.5 | ) | (0.5 | ) | (10.2 | ) | |||||||||
| Corporate | (8.5 | ) | (8.5 | ) | (8.8 | ) | (9.6 | ) | (35.4 | ) | |||||||||
| $ | 12.2 | $ | 21.9 | $ | 43.8 | $ | 38.8 | $ | 116.7 | ||||||||||
Adjusted EBITDA (2): | |||||||||||||||||||
| Mueller Co. | $ | 32.4 | $ | 43.9 | $ | 62.6 | $ | 57.6 | $ | 196.5 | |||||||||
| Mueller Technologies | (2.2 | ) | (3.7 | ) | (0.3 | ) | 0.8 | (5.4 | ) | ||||||||||
| Corporate | (8.4 | ) | (8.4 | ) | (8.7 | ) | (9.4 | ) | (34.9 | ) | |||||||||
| $ | 21.8 | $ | 31.8 | $ | 53.6 | $ | 49.0 | $ | 156.2 | ||||||||||
(1) Net sales less cost of sales less selling, general and administrative expenses. | |||||||||||||||||||
(2) Adjusted operating income plus depreciation and amortization. | |||||||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| STATEMENTS OF CASH FLOWS | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Quarter ended | Year ended | ||||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||
| 2015 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
| (in millions) | |||||||||||||||||||
| Net cash flows provided by (used in) operating activities of continuing operations | $ | (8.3 | ) | $ | 3.2 | $ | 59.5 | $ | 60.1 | $ | 114.5 | ||||||||
| Investing activities: | |||||||||||||||||||
| Capital expenditures | (4.7 | ) | (7.2 | ) | (5.1 | ) | (14.5 | ) | (31.5 | ) | |||||||||
| Proceeds from sales of assets | — | 0.1 | 0.1 | 0.1 | 0.3 | ||||||||||||||
| Net cash flows used in investing activities of continuing operations | (4.7 | ) | (7.1 | ) | (5.0 | ) | (14.4 | ) | (31.2 | ) | |||||||||
| Financing activities: | |||||||||||||||||||
| Dividends | (3.2 | ) | (3.2 | ) | (4.9 | ) | (4.8 | ) | (16.1 | ) | |||||||||
| Employee taxes related to stock-based compensation | (2.9 | ) | (0.3 | ) | — | (0.1 | ) | (3.3 | ) | ||||||||||
| Repayments of debt | (1.3 | ) | (1.2 | ) | (1.3 | ) | (1.2 | ) | (5.0 | ) | |||||||||
| Excess tax benefit on stock-based compensation | 0.7 | (0.7 | ) | — | — | — | |||||||||||||
| Issuance of common stock | 0.4 | 1.2 | 1.3 | 0.4 | 3.3 | ||||||||||||||
| Financing costs paid | — | (0.1 | ) | — | (1.1 | ) | (1.2 | ) | |||||||||||
| Other | 2.1 | (2.8 | ) | 0.4 | (1.1 | ) | (1.4 | ) | |||||||||||
| Net cash flows used in financing activities of continuing operations | (4.2 | ) | (7.1 | ) | (4.5 | ) | (7.9 | ) | (23.7 | ) | |||||||||
| Net cash flows from discontinued operations: | |||||||||||||||||||
| Operating activities | 10.8 | 1.2 | 7.2 | 11.4 | 30.6 | ||||||||||||||
| Investing activities | (1.6 | ) | (1.8 | ) | (2.2 | ) | (2.3 | ) | (7.9 | ) | |||||||||
| Financing activities | 0.1 | (0.1 | ) | — | — | — | |||||||||||||
| Net cash provided by (used in) discontinued operations | 9.3 | (0.7 | ) | 5.0 | 9.1 | 22.7 | |||||||||||||
| Effect of currency exchange rate changes on cash | (0.7 | ) | 0.8 | (0.3 | ) | (0.2 | ) | (0.4 | ) | ||||||||||
| Net change in cash and cash equivalents | (8.6 | ) | (10.9 | ) | 54.7 | 46.7 | 81.9 | ||||||||||||
| Cash and cash equivalents at beginning of period | 113.1 | 104.5 | 93.6 | 148.3 | 113.1 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 104.5 | $ | 93.6 | $ | 148.3 | $ | 195.0 | $ | 195.0 | |||||||||
