Where Intelligence Meets Infrastructure® Investor Presentation August & September, 2022 NON-GAAP Financial Measures In an effort to provide investors with additional information regarding the Company's results as determined by accounting principles generally accepted in the United States ("GAAP"), the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical tools, and securities analysts, investors and other interested ...

Financial Data and Key Metrics Changes - Consolidated net sales increased by 7.3% to $333.2 million compared to the prior year, driven by growth in both water flow solutions and water management solutions [15][23] - Gross profit decreased by 6.7% to $98.3 million, with gross margin declining by 440 basis points to 29.5% due to higher costs associated with unfavorable manufacturing performance and warranty obligations [16][18] - Adjusted EBITDA decreased by 7.7% to $57.8 million, leading to an adjusted EBITDA margin of 17.3%, down from 20.2% in the prior year [19] Business Line Data and Key Metrics Changes - Water flow solutions net sales increased by 10.7% to $195.9 million, primarily due to higher pricing, although volumes decreased due to manufacturing inefficiencies [23] - Water management solutions net sales increased by 2.8% to $137.3 million, with double-digit growth in repair and installation products, but volumes decreased due to supply chain disruptions [25][26] Market Data and Key Metrics Changes - The municipal repair and replacement market remains strong, supported by healthy budgets, particularly in larger municipalities [43] - The infrastructure bill, allocating $55 billion for water-related projects, is expected to benefit the company in the long term, although immediate benefits may be limited due to supply chain constraints [44][45] Company Strategy and Development Direction - The company is focused on improving operational performance and production levels to manage healthy demand and record backlog [12][40] - Significant investments are being made in labor and new facilities to enhance productivity and sustainability, with a new brass foundry expected to improve manufacturing capabilities [38][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from inflation, supply chain disruptions, and manufacturing inefficiencies, which have impacted conversion margins [33][34] - The company anticipates continued price realization benefits and improved operational performance in 2023, despite current economic uncertainties [49][51] Other Important Information - The company reported a record backlog and healthy order activity, indicating strong demand for its products [10][36] - Free cash flow for the nine-month period was negative $16.2 million, primarily due to decreased cash from operating activities [28] Q&A Session Summary Question: Insights on fiscal Q4 growth and demand drivers - Management expects improving net price realization and a supportive backlog to drive growth in Q4 and early 2023, with strong municipal budgets as a key factor [57][58] Question: Impact of manufacturing inefficiencies on EBITDA guidance - The primary driver for lower EBITDA guidance was unfavorable manufacturing performance, particularly at the brass foundry, which affected production and efficiency [68][70] Question: Future margin improvements with new foundry - The new foundry is expected to eliminate current operational inefficiencies, leading to significant improvements in manufacturing performance and margins once operational [71][72] Question: Strategies for securing raw materials - The company is currently limited in forward purchasing due to supply chain constraints, but is actively managing inventory and purchasing strategies to secure necessary materials [109][112]

Where Intelligence Meets Infrastructure® Earnings Conference Call For The Third Quarter Ended June 30, 2022 August 5, 2022 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call NON-GAAP Financial Measures In an effort to provide investors with additional information regarding the Company's results as determined by accounting principles generally accepted in the United States ("GAAP"), the Company also provides non-GAAP information that manageme ...

Financial Performance - Net sales for the three months ended June 30, 2022, increased by $22.7 million or 7.3% to $333.2 million compared to $310.5 million in the prior year, primarily due to higher pricing across most product lines [118]. - Gross profit for the same period decreased by $7.1 million or 6.7% to $98.3 million, with a gross margin of 29.5%, down from 33.9% in the prior year, attributed to unfavorable manufacturing performance and inflation [119]. - Selling, general and administrative expenses (SG&A) rose by $2.0 million to $60.8 million, representing 18.2% of net sales, compared to 18.9% in the prior year [120]. - Net sales for the nine months ended June 30, 2022 increased by $100.6 million or 12.3% to $916.0 million compared to $815.4 million in the prior year, driven by higher pricing and increased shipment volumes [134]. - Gross profit for the nine months ended June 30, 2022 rose by $6.5 million to $278.7 million, with a gross margin of 30.4%, down from 33.4% in the prior year due to inflation and supply chain disruptions [135]. - SG&A expenses increased by $12.9 million to $175.1 million, representing 19.1% of net sales, compared to 19.9% in the prior year [136]. Segment Performance - Water Flow Solutions net sales increased by $18.9 million or 10.7% to $195.9 million, while gross profit decreased by $0.4 million or 0.7% to $60.8 million, with a gross margin of 31.0% [125][126]. - Water Management Solutions net sales rose by $3.8 million or 2.8% to $137.3 million, with gross profit declining to $37.5 million and a gross margin of 27.3% [128][129]. - Water Flow Solutions segment net sales increased by $81.8 million or 18.1% to $534.7 million, with a gross margin of 31.8% [141][142]. - Water Management Solutions segment net sales increased by $18.8 million or 5.2% to $381.3 million, but gross profit decreased by $11.0 million or 9.2% to $108.8 million [144][145]. Challenges and Expectations - The company expects continued challenges in the operating environment for fiscal year 2022 due to inflation, labor availability, and global supply chain disruptions [111]. Management and Structural Changes - A new management structure was announced effective October 1, 2021, aimed at increasing revenue growth and enhancing profitability through better alignment of products and services [114]. Financial Charges and Expenses - The company recorded a $4.5 million warranty charge in the three months ended June 30, 2022, impacting the gross profit of the Water Management Solutions segment [129]. - Interest expense, net decreased by $2.6 million to $4.2 million due to refinancing efforts, resulting in lower interest costs [122]. - Interest expense, net decreased by $6.0 million to $13.0 million due to refinancing of senior notes [138]. Capital and Cash Management - Capital expenditures for the nine months ended June 30, 2022 were $36.7 million, down from $46.1 million in the prior year, with guidance for fiscal year 2022 set between $50.0 million and $55.0 million [152]. - Cash and cash equivalents were $154.9 million at June 30, 2022, with an additional $160.7 million of borrowing capacity under the ABL Agreement [148]. - A quarterly dividend of $0.058 per share was declared, resulting in an estimated cash outlay of $9.1 million [149]. Debt and Credit Facilities - The ABL Agreement includes a $175.0 million revolving credit facility, with the potential to increase by an additional $150.0 million under certain conditions [155]. - As of June 30, 2022, excess availability under the ABL Agreement was $160.7 million, reduced by $14.1 million of outstanding letters of credit and $0.2 million of accrued fees and expenses [159]. - The company has $450.0 million of 4.0% Senior Unsecured Notes maturing on June 15, 2029, with cash interest payments of $18.9 million in 2022 and $18.0 million annually thereafter [166]. - The company incurred a $16.7 million loss on extinguishment of the 5.5% Senior Notes, which included a $12.4 million call premium and a $4.3 million write-off of deferred debt issuance costs [163]. - The company has purchase obligations for raw materials and other parts of approximately $163.1 million expected to incur during the next 12 months [166]. - The corporate credit rating as of June 30, 2022, was Ba1 from Moody's and BB from Standard & Poor's, both with a stable outlook [165]. - The ABL Agreement is secured by a first-priority perfected lien on all U.S. inventories, accounts receivable, and certain cash [158]. - The company capitalized $5.5 million of financing costs related to the 4.0% Senior Notes, amortized over the term using the effective interest method [160]. - The ABL Agreement terminates on July 29, 2025, with a commitment fee for unused borrowing capacity of 37.5 basis points per annum [159]. - The company had $14.1 million of letters of credit and $33.1 million of surety bonds outstanding as of June 30, 2022 [168]. Seasonal Business Trends - The business is seasonal, with net sales and operating income historically lowest in the three-month periods ending December 31 and March 31 due to weather conditions [169].

Where Intelligence Meets Infrastructure® Earnings Conference Call For The Second Quarter Ended March 31, 2022 May 3, 2022 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call NON-GAAP Financial Measures In an effort to provide investors with additional information regarding the Company's results as determined by accounting principles generally accepted in the United States ("GAAP"), the Company also provides non-GAAP information that managemen ...

Financial Data and Key Metrics Changes - The company achieved record second quarter net sales of $310.5 million, an increase of $43 million or 16.1% compared to the prior year [10] - Gross profit increased by $4.4 million or 5% to $92.8 million, yielding a gross margin of 29.9%, which is a decrease of 310 basis points from the prior year [11] - Adjusted EBITDA was $50.6 million, nearly flat compared to the prior year quarter, with an adjusted EBITDA margin of 16.3%, down 310 basis points from the previous year [13] Business Line Data and Key Metrics Changes - **Water Flow Solutions**: Net sales increased by $36.8 million or 25% to $183.9 million, driven by increased volumes and higher pricing [15] - **Water Management Solutions**: Net sales increased by $6.2 million or 5.1% to $126.6 million, primarily due to higher pricing and increased volumes [17] Market Data and Key Metrics Changes - The municipal repair and replacement market remains robust, benefiting from healthy budgets, especially in larger municipalities [30] - New residential construction maintained momentum with a 10% increase in total housing starts [30] Company Strategy and Development Direction - The company is focused on becoming a technology-enabled solutions provider to water companies, bridging the gap between infrastructure and technology [33] - The company aims to maintain price increases that cover inflationary costs to preserve margins [29] Management's Comments on Operating Environment and Future Outlook - The management noted ongoing operational challenges due to inflation, supply chain disruptions, and unfavorable manufacturing performance [24] - The company raised its annual guidance for consolidated net sales growth to between 10% and 12% [31] - Adjusted EBITDA is expected to increase between 7% and 10% compared to the prior year [32] Other Important Information - The company reported a net cash provided by operating activities of $800,000 for the six-month period, a significant decrease from $63.2 million in the prior year [20] - Total debt outstanding was $447.1 million with total cash of $164.1 million as of March 31, 2022 [21] Q&A Session Summary Question: What is the expectation for sequential margin improvement? - Management anticipates that initiatives around uptime and supply chain logistics will contribute to sequential improvement in margins [38] Question: How will free cash flow be impacted by higher CapEx and inventory levels? - Management expects free cash flow to be positive in the second half of the year but below 2021 levels due to higher inventory levels and capital expenditures [42][43] Question: What pricing actions were taken in the quarter? - Management indicated that pricing actions were taken on brass and steel products, with price realization stepping up sequentially due to previous quarter actions [48][49] Question: How have higher natural gas prices impacted margins? - Management noted that natural gas has a minimal impact on operating costs as most foundries are powered by electricity [90] Question: What is the outlook for the infrastructure bill's impact on demand? - Management believes that meaningful impacts from the infrastructure bill will be seen in 2023 and beyond, with limited effects in the current year [81][82]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended March 31, 2022, show increased net sales and income, a slight decrease in total assets due to lower cash, and a significant decrease in operating cash flow primarily from increased inventories and changes in current liabilities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets slightly decreased to $1,511.5 million, driven by lower cash and cash equivalents, partially offset by increased inventories, while total liabilities decreased and stockholders' equity rose Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2022 | September 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $164.1 | $227.5 | ($63.4) | | Inventories, net | $229.2 | $184.7 | $44.5 | | Total current assets | $647.1 | $653.7 | ($6.6) | | Total assets | $1,511.5 | $1,518.0 | ($6.5) | | Total current liabilities | $201.5 | $220.1 | ($18.6) | | Long-term debt | $446.1 | $445.9 | $0.2 | | Total liabilities | $805.4 | $823.1 | ($17.7) | | Total stockholders' equity | $706.1 | $694.9 | $11.2 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended March 31, 2022, net sales and net income increased significantly year-over-year, with Q2 net sales reaching $310.5 million and six-month net sales at $582.8 million Statements of Operations Summary (in millions, except per share data) | Metric | Q2 2022 | Q2 2021 | YoY Change | H1 2022 | H1 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $310.5 | $267.5 | +16.1% | $582.8 | $504.9 | +15.4% | | Gross profit | $92.8 | $88.4 | +5.0% | $180.4 | $166.8 | +8.2% | | Operating income | $34.2 | $33.4 | +2.4% | $63.1 | $61.2 | +3.1% | | Net income | $23.6 | $20.9 | +12.9% | $43.0 | $37.6 | +14.4% | | Diluted EPS | $0.15 | $0.13 | +15.4% | $0.27 | $0.24 | +12.5% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2022, net cash from operations significantly decreased to $0.8 million, primarily due to increased inventories and other current liabilities, while investing and financing activities used $25.8 million and $39.1 million respectively Cash Flow Summary - Six Months Ended March 31 (in millions) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $0.8 | $63.2 | | Net cash used in investing activities | ($25.8) | ($30.8) | | Net cash used in financing activities | ($39.1) | ($14.5) | | Net change in cash and cash equivalents | ($63.4) | $19.3 | - The sharp decline in operating cash flow was mainly driven by a significant increase in **inventory ($47.5 million use of cash)** and payments of **other current liabilities ($36.0 million use of cash)**[20](index=20&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's new segment structure, borrowing arrangements including $450.0 million in Senior Notes, segment performance with Water Flow Solutions showing stronger growth, and disclosures on environmental and other contingencies - Effective October 1, 2021, the company reorganized into two new reportable segments: **Water Flow Solutions** (iron gate valves, specialty valves, service brass) and **Water Management Solutions** (fire hydrants, repair, metering, leak detection)[23](index=23&type=chunk)[87](index=87&type=chunk) Segment Net Sales - Six Months Ended March 31 (in millions) | Segment | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Water Flow Solutions | $338.8 | $275.9 | +22.8% | | Water Management Solutions | $244.0 | $229.0 | +6.6% | | **Total** | **$582.8** | **$504.9** | **+15.4%** | - The company's long-term debt primarily consists of **$450.0 million of 4.0% Senior Unsecured Notes due in 2029**[58](index=58&type=chunk)[63](index=63&type=chunk) - On April 22, 2022, the Board of Directors declared a quarterly dividend of **$0.058 per share**[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2022 sales growth to pricing and volume, but gross margin declined due to inflation and manufacturing issues, with expectations of continued challenges despite strong liquidity [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2022 consolidated net sales increased 16.1% driven by both segments, though gross margin compressed to 29.9% due to cost pressures, with similar trends observed for the six-month period - Q2 2022 net sales increased **16.1% to $310.5 million**, primarily due to higher pricing and increased shipment volumes[114](index=114&type=chunk) - Q2 2022 gross margin declined to **29.9% from 33.0%** in the prior year, impacted by inflation and unfavorable manufacturing performance which offset the benefits of higher pricing[117](index=117&type=chunk) Segment Net Sales Growth - Q2 2022 vs Q2 2021 | Segment | Q2 2022 Sales (M) | Q2 2021 Sales (M) | YoY Growth | | :--- | :--- | :--- | :--- | | Water Flow Solutions | $183.9 | $147.1 | 25.0% | | Water Management Solutions | $126.6 | $120.4 | 5.1% | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company maintained strong liquidity with $164.1 million in cash and $160.1 million in borrowing capacity, having repurchased $20.0 million in stock and paid $18.3 million in dividends, with projected capital expenditures of $70.0-$75.0 million for fiscal year 2022 - The company maintains a strong liquidity position with **$164.1 million in cash** and **$160.1 million of additional borrowing capacity** at the end of the quarter[146](index=146&type=chunk) - In the six months ended March 31, 2022, the company repurchased **$20.0 million of its common stock**, with **$115.0 million remaining** under its share repurchase authorization[147](index=147&type=chunk) - Capital expenditures are projected to be between **$70.0 million and $75.0 million** for fiscal year 2022[150](index=150&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting identified - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[170](index=170&type=chunk)[171](index=171&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[168](index=168&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 12 of the condensed consolidated financial statements for details on legal proceedings - For details on legal proceedings, the report directs readers to **Note 12 in Part I, Item 1**[175](index=175&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed in this report, with investors directed to the comprehensive risk factors section of the most recent Annual Report on Form 10-K - The report refers to the **'Risk Factors' section in the company's Annual Report on Form 10-K** for a comprehensive discussion of potential risks[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the six months ended March 31, 2022, the company repurchased 1,408,274 shares for $20.0 million, with $115.0 million remaining under the share repurchase authorization Share Repurchase Activity - Six Months Ended March 31, 2022 | Metric | Value | | :--- | :--- | | Total Shares Repurchased | 1,408,274 | | Total Cost | $20.0 million | | Remaining Authorization | $115.0 million | [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL-formatted financial data - The exhibits filed with this report include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[179](index=179&type=chunk)

Where Intelligence Meets Infrastructure® Earnings Conference Call For The First Quarter Ended December 31, 2021 February 4, 2022 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call NON-GAAP Financial Measures In an effort to provide investors with additional information regarding the Company's results as determined by accounting principles generally accepted in the United States ("GAAP"), the Company also provides non-GAAP information that ma ...

Mueller Water Products, Inc. (NYSE:MWA) Q1 2022 Earnings Conference Call February 4, 2022 9:00 AM ET Company Participants Scott Hall – President and Chief Executive Officer Martie Zakas – Chief Financial Officer Whit Kincaid – Vice President of Investor Relations Conference Call Participants Deane Dray – RBC Capital Markets Bryan Blair – Oppenheimer Brent Thielman – D.A. Davidson Walter Liptak – Seaport Michael Anastasiou – Cowen Unidentified Analyst – Goldman Sachs Andrew Buscaglia – Berngiler Operator Wel ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-32892 MUELLER WATER PRODUCTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Ide ...