Attached files
| file | filename |
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| EX-99.4 - EXHIBIT 99.4 - Mueller Water Products, Inc. | d286120dex994.htm |
| EX-99.2 - EXHIBIT 99.2 - Mueller Water Products, Inc. | d286120dex992.htm |
| EX-99.1 - EXHIBIT 99.1 - Mueller Water Products, Inc. | d286120dex991.htm |
| EX-10.3 - EXHIBIT 10.3 - Mueller Water Products, Inc. | d286120dex103.htm |
| EX-10.2 - EXHIBIT 10.2 - Mueller Water Products, Inc. | d286120dex102.htm |
| EX-10.1 - EXHIBIT 10.1 - Mueller Water Products, Inc. | d286120dex101.htm |
| EX-2.1 - EXHIBIT 2.1 - Mueller Water Products, Inc. | d286120dex21.htm |
| 8-K - FORM 8-K - Mueller Water Products, Inc. | d286120d8k.htm |
Exhibit 99.3
Mueller Water Products, Inc. and Subsidiaries
Condensed Consolidated Pro Forma Financial Statements—Unaudited
This unaudited pro forma financial information should be read in conjunction with the consolidated financial statements of Mueller Water Products, Inc. and subsidiaries included in its annual report on Form 10-K for the year ended September 30, 2016.
On January 6, 2017, Mueller Water Products, Inc. and certain of its subsidiaries (collectively, “Seller”) entered into a purchase agreement and closed the transaction to sell its Anvil business to One Equity Partners and its affiliates (collectively “Buyer”). The purchase price was $315 million and will be adjusted based on a final determination of net working capital and other factors at the closing date.
Seller retained all pension plans affecting Anvil participants, although their benefits under such plans froze at the closing of the transaction. Seller also retained the administrative responsibilities of all Anvil workers compensation claims through the closing, but is entitled to reimbursement from Buyer for all such related future costs.
The following condensed consolidated pro forma financial statements have been prepared to give effect to the sale of Anvil as if the sale had occurred at earlier dates such that the assets, liabilities, sales and expenses of Anvil are not reflected in these financial statements. For the pro forma balance sheet, the sale of Anvil is assumed to have occurred on that date. For the pro forma statement of operations, the sale of Anvil is assumed to have occurred at the beginning of the period presented. The resulting financial information of the continuing operations of Mueller Water Products, Inc. and subsidiaries is not necessarily indicative of future results, including the amount of net proceeds that will ultimately be realized by Seller.
Mueller Water Products, Inc. and Subsidiaries
Condensed Consolidated Pro Forma Balance Sheet—Unaudited
September 30, 2016
| Pro forma adjustments | ||||||||||||||||
| Previously reported |
Anvil balances |
Sale of Anvil |
Pro forma |
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| (in millions) | ||||||||||||||||
| Cash and cash equivalents |
$ | 195.0 | $ | — | $ | 253.0 | (a) | $ | 448.0 | |||||||
| Receivables, net |
186.7 | (54.9 | ) | — | 131.8 | |||||||||||
| Inventories |
213.8 | (83.1 | ) | — | 130.7 | |||||||||||
| Other current assets |
16.8 | (4.1 | ) | 0.8 | (b) | 13.5 | ||||||||||
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| Total current assets |
612.3 | (142.1 | ) | 253.8 | 724.0 | |||||||||||
| Property, plant and equipment, net |
155.1 | (46.7 | ) | — | 108.4 | |||||||||||
| Intangible assets |
486.0 | (51.4 | ) | — | 434.6 | |||||||||||
| Other noncurrent assets |
27.2 | (1.8 | ) | 1.2 | (b) | 26.6 | ||||||||||
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| Total assets |
$ | 1,280.6 | $ | (242.0 | ) | $ | 255.0 | $ | 1,293.6 | |||||||
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| Current portion of long-term debt |
$ | 5.9 | $ | (0.3 | ) | $ | — | $ | 5.6 | |||||||
| Accounts payable |
100.8 | (27.1 | ) | — | 73.7 | |||||||||||
| Other current liabilities |
79.1 | (16.5 | ) | (0.7 | )(c) | 61.9 | ||||||||||
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| Total current liabilities |
185.8 | (43.9 | ) | (0.7 | ) | 141.2 | ||||||||||
| Long-term debt |
479.2 | (0.4 | ) | — | 478.8 | |||||||||||
| Deferred income taxes |
109.9 | — | (12.9 | ) | 97.0 | |||||||||||
| Other noncurrent liabilities |
86.2 | (0.5 | ) | (0.2 | )(c) | 85.5 | ||||||||||
| Equity |
419.5 | (197.2 | )(d) | 268.8 | (d) | 491.1 | ||||||||||
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| Total liabilities and equity |
$ | 1,280.6 | $ | (242.0 | ) | $ | 255.0 | $ | 1,293.6 | |||||||
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| (a) | Net cash proceeds resulting from the adjusted purchase price, less related expenses and less estimated income taxes due as a result of the gain. |
| (b) | Seller retained the administrative responsibilities for workers compensation claims that existed through the sale date. This represents workers compensation claim cost reimbursements due from Buyer as claims are paid. |
| (c) | Forfeiture of cash-settled stock-based awards denominated in shares of Mueller Water Products, Inc. common stock upon the sale of Anvil. |
| (d) | Includes the estimated gain resulting from the sale of Anvil, the accelerated vesting of stock-settled stock-based awards upon the sale of Anvil and writing off the accumulated currency translation adjustments related to Anvil. |
Mueller Water Products, Inc. and Subsidiaries
Condensed Consolidated Pro Forma Statement of Operations from Continuing Operations—Unaudited
Year ended September 30, 2016
| Pro forma adjustments | ||||||||||||||||
| Previously reported |
Anvil balances |
Sale of Anvil |
Pro forma |
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| (in millions, except per share amounts) | ||||||||||||||||
| Net sales |
$ | 1,138.9 | $ | (338.3 | ) | $ | — | $ | 800.6 | |||||||
| Cost of sales |
774.6 | (241.9 | ) | — | 532.7 | |||||||||||
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| Gross profit |
364.3 | (96.4 | ) | — | 267.9 | |||||||||||
| Selling, general and administrative expenses |
218.8 | (66.8 | )(a) | — | 152.0 | |||||||||||
| Pension settlement and other charges |
24.9 | (1.8 | )(a) | — | 23.1 | |||||||||||
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| Operating income |
120.6 | (27.8 | ) | — | 92.8 | |||||||||||
| Interest expense, net |
23.6 | (0.1 | ) | — | 23.5 | |||||||||||
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| Income before income taxes |
97.0 | (27.7 | ) | — | 69.3 | |||||||||||
| Income tax expense |
33.1 | (9.7 | )(b) | — | 23.4 | |||||||||||
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| Income from continuing operations |
$ | 63.9 | $ | (18.0 | ) | $ | — | $ | 45.9 | |||||||
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| Income from continuing operations per share: |
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| Basic |
$ | 0.40 | $ | 0.28 | ||||||||||||
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| Diluted |
$ | 0.39 | $ | 0.28 | ||||||||||||
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| Weighted average shares outstanding: |
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| Basic |
161.3 | 161.3 | ||||||||||||||
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| Diluted |
163.4 | 163.4 | ||||||||||||||
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| (a) | Amount differs from previously reported amount due to items retained by Seller and expenses that would have been avoided had the sale of Anvil occured at an earlier date. |
| (b) | Income tax expense has been provided at the U.S. federal statutory rate of 35%. |