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Published: 2021-10-19 00:00:00 ET
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Mueller Industries, Inc. Reports Third Quarter 2021 Earnings

COLLIERVILLE, Tenn., October 19, 2021 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2021. (All comparisons are to the prior year quarter.)
•$233.4 million in operating income versus $69.2 million
•$171.0 million in net income versus $42.7 million
•$982.2 million in net sales versus $619.1 million
•EPS of $3.01 versus $0.76 per share

Third Quarter Financial and Operating Highlights:
•COMEX copper averaged $4.30 per pound versus $2.93 per pound in the third quarter of last year, a 47% increase.
•Unit sales growth across all segments, the influence of the higher copper prices and contributions from the first quarter acquisition of the Hart & Cooley Flex duct business all contributed to the increase in net sales.
•The results include a gain of $50.1 million from the sale of the Fabricated Tube Products and Shoals Tubular businesses.
•We recorded income of $2.8 million on our investment in Tecumseh Products Company as its restructuring efforts progress, compared to a $5.5 million loss recorded during the prior year period.
•We reduced our debt by $230.0 million, ending the quarter with a debt to total capitalization below 10 percent and a current ratio of 2.7 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said,
“Our strong financial results were driven by continued favorable market demand and our teams’ exceptional operating performance in the face of industry wide labor and supply constraints and rising costs. Building construction demand remains solid, and backlogs in most businesses continue to build.”

He added, “During the quarter, we also completed the sale of two of our smaller manufacturing businesses, Fabricated Tube Products and Shoals Tubular, and divested of a majority interest in Die-Mold Tool. Although growth remains a key priority, we also continually evaluate our portfolio and pursue opportunities to exit businesses that we do not believe provide the up-side growth potential and returns necessary to achieve our long-term strategic goals.

We anticipate that current market conditions will continue for the foreseeable future.”


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Mueller Industries, Inc. (NYSE: MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.
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Statements in this release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company’s SEC filings. The words “outlook,” “estimate,” “project,” “intend,” “expect,” “believe,” “target,” “encourage,” “anticipate,” “appear,” and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

CONTACT
Jeffrey A. Martin
(901) 753-3226
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Quarter EndedFor the Nine Months Ended
(In thousands, except per share data)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Net sales$982,248 $619,105 $2,812,988 $1,722,192 
Cost of goods sold744,265500,7802,212,3951,412,654
Depreciation and amortization10,86810,75233,75732,888
Selling, general, and administrative expense48,52438,346137,891117,749
Gain on sale of businesses(54,759)— (54,759)— 
Litigation settlement, net— — — (21,933)
Operating income233,35069,227483,704180,834
Interest expense(1,116)(4,885)(7,451)(15,237)
Redemption premium— — (5,674)— 
Other (expense) income, net(2,548)522 (1,288)3,634 
Income before income taxes229,68664,864 469,291169,231 
Income tax expense(60,229)(15,450)(120,996)(42,623)
Income (loss) from unconsolidated affiliates, net of foreign tax2,799 (5,457)131 (20,213)
Consolidated net income172,256 43,957 348,426 106,395 
Net income attributable to noncontrolling interests(1,276)(1,255)(5,507)(3,322)
Net income attributable to Mueller Industries, Inc.$170,980 $42,702 $342,919 $103,073 
Weighted average shares for basic earnings per share56,07755,81655,97955,805
Effect of dilutive stock-based awards731550784534
Adjusted weighted average shares for diluted earnings per share
56,80856,36656,76356,339
Basic earnings per share$3.05 $0.77 $6.13 $1.85 
Diluted earnings per share$3.01 $0.76 $6.04 $1.83 
Dividends per share$0.13 $0.10 $0.39 $0.30 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter EndedFor the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Summary Segment Data:
Net sales:
    Piping Systems Segment$688,200 $409,414 $1,947,564 $1,128,467 
    Industrial Metals Segment182,245118,831527,137338,652
    Climate Segment122,25297,604364,986276,983
    Elimination of intersegment sales(10,449)(6,744)(26,699)(21,910)
Net sales
$982,248 $619,105 $2,812,988 $1,722,192 
Operating income:
    Piping Systems Segment$152,199 $44,863 $343,805 $122,613 
    Industrial Metals Segment19,05218,34858,39838,403
    Climate Segment21,07218,15663,77943,523
    Unallocated income (expenses)41,027 (12,140)17,722 (23,705)
Operating income$233,350 $69,227 $483,704 $180,834 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
September 25,
2021		December 26, 2020
ASSETS
Cash and cash equivalents$104,789 $119,075 
Accounts receivable, net
493,960357,532
Inventories405,590315,002
Other current assets
33,60433,752
    Total current assets1,037,943825,361
Property, plant, and equipment, net370,222376,572
Operating lease right-of-use assets
24,14729,301 
Other assets
296,225297,334
Total assets$1,728,537 $1,528,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$1,110 $41,283 
Accounts payable180,509147,741
Current portion of operating lease liabilities
6,193 6,259 
Other current liabilities
192,286144,360
    Total current liabilities380,098339,643
Long-term debt121,012286,593
Pension and postretirement liabilities24,13226,841
Environmental reserves20,90221,256
Deferred income taxes13,39316,842
Noncurrent operating lease liabilities17,39921,602 
Other noncurrent liabilities
25,36914,731
    Total liabilities
602,305727,508
Total Mueller Industries, Inc. stockholders’ equity1,107,562 776,745
Noncontrolling interests
18,670 24,315
    Total equity
1,126,232 801,060
Total liabilities and equity$1,728,537 $1,528,568 








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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Nine Months Ended
 (In thousands)
September 25, 2021September 26, 2020
Cash flows from operating activities
Consolidated net income$348,426 $106,395 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization33,932 33,127 
Stock-based compensation expense7,228 6,332 
Provision for doubtful accounts receivable1,310 953 
(Income) loss from unconsolidated affiliates(131)20,213 
Redemption premium5,674 — 
(Gain) loss on disposals of properties(1,135)144 
Gain on sale of businesses(54,759)— 
Impairment charges2,568 3,035 
Deferred income tax expense (benefit)6,304 (836)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables(155,103)(45,530)
Inventories(96,505)41,598 
Other assets(9,335)9,053 
Current liabilities85,523 25,913 
Other liabilities8,335 (5,813)
Other, net(851)2,294 
Net cash provided by operating activities181,481 196,878 
Cash flows from investing activities
Capital expenditures(25,547)(29,204)
Acquisition of businesses, net of cash acquired(13,935)(72,648)
Proceeds from sale of businesses, net of cash sold74,250 — 
Investments in unconsolidated affiliates(1,613)— 
Payment received for (issuance of) notes receivable8,539 (9,155)
Proceeds from sales of properties2,124 12 
Net cash provided by (used in) investing activities43,818 (110,995)
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)
For the Nine Months Ended
 (In thousands)
September 25, 2021September 26, 2020
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(21,846)(16,754)
Repurchase of common stock— (5,574)
Payment of contingent consideration(1,250)(7,000)
Issuance of debt475,000 150,027 
Repayments of debt(680,572)(186,492)
Repayment of debt by consolidated joint ventures, net(4,865)(299)
Net cash received (used) to settle stock-based awards219 (160)
  Debt issuance costs(1,111)— 
Dividends paid to noncontrolling interests(9,722)— 
Net cash used in financing activities(244,147)(66,252)
Effect of exchange rate changes on cash(377)(3,294)
(Decrease) increase in cash, cash equivalents, and restricted cash(19,225)16,337 
Cash, cash equivalents, and restricted cash at the beginning of the period127,376 98,042 
Cash, cash equivalents, and restricted cash at the end of the period$108,151 $114,379 



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