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Published: 2022-02-01 00:00:00 ET
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Mueller Industries, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results

COLLIERVILLE, Tenn., February 1, 2022 -- Mueller Industries, Inc. (NYSE: MLI) today reported 2021 fourth quarter and full year results.

Fourth Quarter metrics:
•Operating income was $172.1 million, up 165%.
•Net sales were $956.4 million, up 42%.
•Net income was $125.6 million versus $36.4 million.
•Diluted EPS was $2.21 versus $0.64.
•Cash provided by operations was $130.2 million.

Full Year metrics:
•Operating income was $655.8 million, up 167%.
•Net sales were $3.8 billion, up 57%.
•Net income was $468.5 million versus $139.5 million.
•Diluted EPS was $8.25 versus $2.47.
•Cash provided by operations was $311.7 million.
*Comparisons to prior year periods

Quarter Commentary
•The average price of copper was 34.3 percent higher than in the fourth quarter of 2020.
•Net sales growth was driven by volume growth in our US businesses, higher prices primarily attributable to the rise in COMEX copper, and the contributions of our recently acquired H&C Flex business, which is recorded under our Climate segment.
•The Company recorded a loss of $1.8 million on its investment in Tecumseh during the quarter, compared to income of $10.0 million in the previous year quarter, which included a pre-tax gain of $11.6 million from a land sale.
•During the quarter we acquired the majority ownership of the Mueller Middle East copper tube mill in Bahrain. This mill is geographically well positioned to serve markets in the Middle East and Northern Africa.

Full Year Commentary
•The results included $57.8 million of gains from the sale of businesses.
•The average price of copper was 51.6 percent higher than in 2020.
•Net sales growth of $1.4 billion was driven by volume growth in almost every business, higher selling prices primarily resulting from the rise in COMEX copper, and full year reported sales of acquired businesses.
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•During the year, $330.7 million of debt was repaid leaving a balance of $1.9 million at year-end. The Company’s $400.0 million credit facility is undrawn and cash and cash equivalents totaled $87.9 million.

Operating Highlights and Outlook:
Greg Christopher, CEO, commented, “Our exceptional results in the fourth quarter capped our second consecutive year of record earnings. The strength our businesses exhibited throughout the year was fueled by solid demand and outstanding operational execution by our team in the face of significant inflationary pressures, supply chain disruptions, and extensive labor shortages.”
With regard to the outlook, he added “We anticipate continued momentum in the building construction and industrial markets in 2022, both important end markets for our businesses. Mueller is well positioned to build upon its success as we start the new year with healthy order books and our manufacturing facilities operating at highly efficient levels.”


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 Year Ended
(In thousands, except per share data)December 25, 2021December 26, 2020December 25, 2021December 26, 2020
Net sales$956,357 $675,851 $3,769,345 $2,398,043 
Cost of goods sold726,594553,5072,938,9891,966,161
Depreciation and amortization11,63311,95545,39044,843
Selling, general, and administrative expense48,72944,649184,052159,483
Gain on sale of businesses(3,001)— (57,760)— 
Litigation settlement, net— — — (22,053)
Impairment charges261 736 2,829 3,771 
Operating income172,14165,004655,845245,838
Interest expense(258)(4,010)(7,709)(19,247)
Environmental expense(982)(3,488)(5,053)(4,454)
Redemption premium— — (5,674)— 
Pension plan termination expense— (17,835)— (17,835)
Other income, net947 287 3,730 4,887 
Income before income taxes171,84839,958 641,139209,189 
Income tax expense(44,862)(12,698)(165,858)(55,321)
(Loss) income from unconsolidated affiliates, net of foreign tax(288)9,994 (157)(10,219)
Consolidated net income126,698 37,254 475,124 143,649 
Net income attributable to noncontrolling interests(1,097)(834)(6,604)(4,156)
Net income attributable to Mueller Industries, Inc.$125,601 $36,420 $468,520 $139,493 
Weighted average shares for basic earnings per share56,10455,86956,01155,821
Effect of dilutive stock-based awards796673787569
Adjusted weighted average shares for diluted earnings per share56,90056,54256,79856,390
Basic earnings per share$2.24 $0.65 $8.36 $2.50 
Diluted earnings per share$2.21 $0.64 $8.25 $2.47 
Dividends per share$0.13 $0.10 $0.52 $0.40 








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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)

For the Quarter EndedFor the Year Ended
(In thousands)December 25, 2021December 26, 2020December 25, 2021December 26, 2020
Summary Segment Data:
Net sales:
    Piping Systems Segment$652,466 $454,535 $2,600,030 $1,583,002 
    Industrial Metals Segment176,226133,507703,363472,159
    Climate Segment130,42893,148495,414370,131
    Elimination of intersegment sales(2,763)(5,339)(29,462)(27,249)
Net sales$956,357 $675,851 $3,769,345 $2,398,043 
Operating income:
    Piping Systems Segment$142,482 $43,106 $486,287 $165,719 
    Industrial Metals Segment27,07715,66285,47554,065
    Climate Segment21,75713,27985,53656,802
    Unallocated expenses(19,175)(7,043)(1,453)(30,748)
Operating income$172,141 $65,004 $655,845 $245,838 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In thousands)
December 25, 2021December 26, 2020
ASSETS
Cash and cash equivalents$87,924 $119,075 
Accounts receivable, net
471,859357,532
Inventories430,244315,002
Other current assets
28,97633,752
    Total current assets1,019,003825,361
Property, plant, and equipment, net385,562376,572
Operating lease right-of-use assets
23,51029,301 
Other assets
300,861297,334
$1,728,936 $1,528,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$811 $41,283 
Accounts payable180,793147,741
Current portion of operating lease liabilities
6,0156,259 
Other current liabilities
194,820144,360
    Total current liabilities382,439339,643
Long-term debt1,064286,593
Pension and postretirement liabilities17,53326,841
Environmental reserves17,67821,256
Deferred income taxes14,34716,842
Noncurrent operating lease liabilities
17,09921,602 
Other noncurrent liabilities
21,81314,731
    Total liabilities
471,973727,508
Total Mueller Industries, Inc. stockholders’ equity1,222,118 776,745
Noncontrolling interests
34,845 24,315
    Total equity
1,256,963 801,060
$1,728,936 $1,528,568 








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

For the Year Ended
 (In thousands)
December 25, 2021December 26, 2020
Cash flows from operating activities
Consolidated net income$475,124 $143,649 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization45,655 45,162 
Stock-based compensation expense9,822 8,570 
Provision for doubtful accounts receivable1,216 1,208 
Loss from unconsolidated affiliates157 10,219 
Non-cash pension plan termination expense— 11,642 
Gain on sale of businesses(57,760)— 
(Gain) loss on disposals of assets(769)132 
Redemption premium5,674 — 
Impairment charges2,829 3,771 
Deferred income tax expense (benefit)7,413 (4,046)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables(124,708)(76,404)
Inventories(119,514)5,207 
Other assets919 20,609 
Current liabilities73,755 74,097 
Other liabilities(5,467)(1,142)
Other, net(2,645)2,399 
Net cash provided by operating activities311,701 245,073 
Cash flows from investing activities
Proceeds from sale of assets, net of cash transferred2,302 181 
Proceeds from sale of business, net of cash sold81,884 — 
Acquisition of businesses, net of cash acquired(30,206)(72,648)
Capital expenditures(31,833)(43,885)
Payment received for (issuance of) notes receivable8,539 (9,270)
Investments in unconsolidated affiliates(1,613)— 
Net cash provided by (used in) investing activities29,073 (125,622)









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

For the Year Ended
 (In thousands)December 25, 2021December 26, 2020
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(29,137)(22,341)
Dividends paid to noncontrolling interests(9,722)— 
Issuance of long-term debt595,000 190,038 
Repayments of long-term debt(920,610)(246,898)
Repayment of debt by consolidated joint ventures, net(5,113)(259)
Repurchase of common stock(4,864)(5,574)
Payment of contingent consideration(1,250)(7,000)
Net cash received (used) to settle stock-based awards85 (230)
Debt issuance costs(1,111)— 
Net cash used in financing activities(376,722)(92,264)
Effect of exchange rate changes on cash(1,052)2,147 
(Decrease) increase in cash, cash equivalents, and restricted cash(37,000)29,334 
Cash, cash equivalents, and restricted cash at the beginning of the year127,376 98,042 
Cash, cash equivalents, and restricted cash at the end of the year$90,376 $127,376 
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