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Published: 2023-04-25 00:00:00 ET
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EX-99.1 2 exhibit991q12023earningsre.htm EX-99.1 Document

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Mueller Industries, Inc. Reports First Quarter 2023 Earnings

COLLIERVILLE, Tenn., April 25, 2023 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2023. Results as compared with the first quarter of 2022 include:
•Operating Income of $229.1 million versus $212.7 million, an increase of 7.7%.
•Net Income of $173.2 million versus $158.3 million, an increase of 9.4%.
•EPS of $3.07 versus $2.78, an increase of 10.4%.
•Net Sales of $971.2 million versus $1.01 billion, a decrease of 3.8%.

First Quarter Highlights:
•The decrease in net sales was due to lower copper prices along with lower unit volume in our international mill businesses, partially offset by increased net sales in our downstream businesses that have a higher value add content. COMEX copper averaged $4.09 per pound, 10% lower than the first quarter of 2022.
•Adjusting for a $5.5 million gain on property the Company disposed of in 2022, operating income increased 10.6%.
•Cash generated from operations was $111.6 million, resulting in quarter end cash and short-term investments totaling $782.4 million. The Company has no net debt, and a current ratio of 4.3 to 1.
•Increased the quarterly dividend by 20% to $.30 per share.

Regarding the Company’s first quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our first quarter results were in line with our 2022 year-end expectations, as reported. We entered the year anticipating that more challenging economic times were likely ahead and have adjusted accordingly. Our strong cash generation and solid balance sheet will enable us to continue delivering value to our shareholders and to pursue new growth opportunities that may arise.”

Mr. Christopher continued, “Subsequent to the end of the quarter, we reported that our factory in Covington, TN was severely damaged by a tornado. Most importantly, we are grateful that all of our employees were safe and without injury. As we rebuild, we have executed contingency plans, including the use of other Mueller production facilities and third party sourcing arrangements, to ensure a continuing reliable supply of products to our customers.

The losses, both to property and resultant business interruption, are expected to be covered by existing insurance policies. Therefore, we believe the impact of this event on our financial results will be immaterial.”

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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 Ended
(In thousands, except per share data)April 1,
2023		March 26, 2022
Net sales$971,192 $1,010,002 
Cost of goods sold678,798744,511
Depreciation and amortization10,65710,841
Selling, general, and administrative expense52,63147,456
Gain on sale of assets— (5,507)
Operating income229,106212,701
Interest expense(143)(158)
Interest income6,235 160 
Other income, net2,236 620 
Income before income taxes237,434213,323 
Income tax expense(61,357)(54,199)
(Loss) income from unconsolidated affiliates, net of foreign tax(984)124 
Consolidated net income175,093 159,248 
Net income attributable to noncontrolling interests(1,854)(932)
Net income attributable to Mueller Industries, Inc.$173,239 $158,316 
Weighted average shares for basic earnings per share55,69356,100
Effect of dilutive stock-based awards707810
Adjusted weighted average shares for diluted earnings per share
56,40056,910
Basic earnings per share$3.11 $2.82 
Diluted earnings per share$3.07 $2.78 
Dividends per share$0.30 $0.25 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter Ended
(In thousands)April 1,
2023		March 26, 2022
Summary Segment Data:
Net sales:
    Piping Systems Segment$662,479 $703,430 
    Industrial Metals Segment165,234174,312
    Climate Segment152,954140,622
    Elimination of intersegment sales(9,475)(8,362)
Net sales
$971,192 $1,010,002 
Operating income:
    Piping Systems Segment$163,854 $160,488 
    Industrial Metals Segment27,21523,259
    Climate Segment53,98836,700
    Unallocated income (expenses)(15,951)(7,746)
Operating income$229,106 $212,701 

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
April 1,
2023		December 31, 2022
ASSETS
Cash and cash equivalents$611,399 $461,018 
Short-term investments170,997217,863
Accounts receivable, net
503,369380,352
Inventories452,826448,919
Other current assets
28,42026,501
    Total current assets1,767,0111,534,653
Property, plant, and equipment, net377,324379,950
Operating lease right-of-use assets
29,89722,892 
Other assets
305,389304,904
Total assets$2,479,621 $2,242,399 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$1,108 $811 
Accounts payable179,244128,000
Current portion of operating lease liabilities
6,249 4,942 
Other current liabilities
220,144214,542
    Total current liabilities406,745348,295
Long-term debt1,2511,218
Pension and postretirement liabilities11,26013,055
Environmental reserves16,06016,380
Deferred income taxes17,56116,258
Noncurrent operating lease liabilities22,77316,880 
Other noncurrent liabilities
16,50216,349
    Total liabilities
492,152428,435
Total Mueller Industries, Inc. stockholders’ equity1,962,307 1,790,914
Noncontrolling interests
25,162 23,050
    Total equity
1,987,469 1,813,964
Total liabilities and equity$2,479,621 $2,242,399 







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

For the Quarter Ended
 (In thousands)
April 1,
2023		March 26, 2022
Cash flows from operating activities
Consolidated net income$175,093 $159,248 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization10,746 10,930 
Stock-based compensation expense5,637 2,573 
Provision for doubtful accounts receivable(15)125 
Loss (income) from unconsolidated affiliates984 (124)
Gain on disposals of properties(115)(5,507)
Deferred income tax expense372 258 
Changes in assets and liabilities:
Receivables(111,547)(116,610)
Inventories(581)(40,803)
Other assets(17,950)314 
Current liabilities50,842 54,344 
Other liabilities(2,275)(1,752)
Other, net427 (137)
Net cash provided by operating activities111,618 62,859 
Cash flows from investing activities
Capital expenditures(7,556)(5,259)
Insurance proceeds - capital related8,000 — 
Proceeds from the maturity of short term investments50,000 — 
Proceeds from sales of properties118 6,219 
Dividends from unconsolidated affiliates644 959 
Net cash provided by investing activities51,206 1,919 
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(16,729)— 
Repurchase of common stock— (3,972)
Repayments of debt(56)(56)
Issuance of debt by consolidated joint ventures, net297 — 
Net cash used to settle stock-based awards(2,611)(230)
Net cash used in financing activities(19,099)(4,258)
Effect of exchange rate changes on cash2,573 301 
Increase in cash, cash equivalents, and restricted cash146,298 60,821 
Cash, cash equivalents, and restricted cash at the beginning of the period465,296 90,376 
Cash, cash equivalents, and restricted cash at the end of the period$611,594 $151,197 
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