Financial News
Mueller Industries, Inc. Reports Third Quarter 2022 Earnings
Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2022. All comparisons are to the prior year quarter (which included a $54.8 million pre-tax gain from divestitures).
- Operating Income of $205.2 million versus $233.4 million. Adjusting for the aforementioned gain, this reflects a 15 percent increase versus the prior year period.
- Net Income of $154.5 million versus $171.0 million
- EPS of $2.74 versus $3.01
- Net Sales of $944.8 million versus $982.2 million
Third Quarter Financial and Operating Highlights:
-
The absence of businesses divested in 2021, combined with lower copper prices, reduced volumes due largely to inventory rebalancing, and the impacts of localized recessionary pressures on our international businesses, contributed to a 3.8 percent quarter over quarter decrease in net sales. That decrease was offset by continued strength and growth in our value added businesses. Specifically:
- Divestitures in 2021 reduced net sales by $20.4 million as compared with the prior year quarter.
- COMEX copper averaged $3.50 per pound during the quarter, 19 percent lower than the third quarter of 2021.
- Copper tube and brass rod volumes declined 14 percent.
- Net Sales from our value added businesses grew 22 percent.
-
Cash at quarter end was $483.5 million, an increase of $395.6 million from 2021 year-end.
- Cash generated from operations during the period was $312.4 million.
- Net debt remains at zero.
- The current ratio at quarter end was 3.8 to 1.
Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “We delivered another strong quarter despite ongoing macroeconomic challenges, and ended the quarter with many of our businesses operating at capacity and with healthy backlogs.
Our business outlook remains positive. Building construction, a key market for many of our businesses, has been exceptionally strong in recent years. Although we anticipate some tempering in the building industry on the horizon, we nonetheless expect overall demand to remain at healthy levels for our Company.
Our financial position is solid, and positions us well for future opportunities.”
Additional information about the Company, including its recently published investor presentation, can be found at www.muellerindustries.com.
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.
********************* |
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.
MUELLER INDUSTRIES, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
For the Quarter Ended |
|
For the Nine Months Ended |
||||||||||||
(In thousands, except per share data) |
|
September 24,
|
|
September 25,
|
|
September 24,
|
|
September 25,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
|
$ |
944,830 |
|
|
$ |
982,248 |
|
|
$ |
3,104,874 |
|
|
$ |
2,812,988 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
|
678,637 |
|
|
|
744,265 |
|
|
|
2,244,062 |
|
|
|
2,212,395 |
|
Depreciation and amortization |
|
|
10,850 |
|
|
|
10,868 |
|
|
|
32,993 |
|
|
|
33,757 |
|
Selling, general, and administrative expense |
|
|
50,178 |
|
|
|
48,524 |
|
|
|
146,590 |
|
|
|
137,891 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
(5,507 |
) |
|
|
— |
|
Gain on sale of businesses |
|
|
— |
|
|
|
(54,759 |
) |
|
|
— |
|
|
|
(54,759 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
|
205,165 |
|
|
|
233,350 |
|
|
|
686,736 |
|
|
|
483,704 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(361 |
) |
|
|
(1,116 |
) |
|
|
(666 |
) |
|
|
(7,451 |
) |
Redemption premium |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,674 |
) |
Other income (expense), net |
|
|
1,030 |
|
|
|
(2,548 |
) |
|
|
4,013 |
|
|
|
(1,288 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
205,834 |
|
|
|
229,686 |
|
|
|
690,083 |
|
|
|
469,291 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
(51,035 |
) |
|
|
(60,229 |
) |
|
|
(173,524 |
) |
|
|
(120,996 |
) |
Income from unconsolidated affiliates, net of foreign tax |
|
|
1,014 |
|
|
|
2,799 |
|
|
|
6,026 |
|
|
|
131 |
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated net income |
|
|
155,813 |
|
|
|
172,256 |
|
|
|
522,585 |
|
|
|
348,426 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests |
|
|
(1,271 |
) |
|
|
(1,276 |
) |
|
|
(3,175 |
) |
|
|
(5,507 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Mueller Industries, Inc. |
|
$ |
154,542 |
|
|
$ |
170,980 |
|
|
$ |
519,410 |
|
|
$ |
342,919 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per share |
|
|
55,589 |
|
|
|
56,077 |
|
|
|
55,825 |
|
|
|
55,979 |
|
Effect of dilutive stock-based awards |
|
|
835 |
|
|
|
731 |
|
|
|
796 |
|
|
|
784 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted weighted average shares for diluted earnings per share |
|
|
56,424 |
|
|
|
56,808 |
|
|
|
56,621 |
|
|
|
56,763 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
$ |
2.78 |
|
|
$ |
3.05 |
|
|
$ |
9.30 |
|
|
$ |
6.13 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
|
$ |
2.74 |
|
|
$ |
3.01 |
|
|
$ |
9.17 |
|
|
$ |
6.04 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
|
$ |
0.25 |
|
|
$ |
0.13 |
|
|
$ |
0.75 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
||||||||
MUELLER INDUSTRIES, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the Quarter Ended |
|
For the Nine Months Ended |
||||||||||||
(In thousands) |
|
September 24,
|
|
September 25,
|
|
September 24,
|
|
September 25,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Summary Segment Data: |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
||||||||
Piping Systems Segment |
|
$ |
634,808 |
|
|
$ |
688,200 |
|
|
$ |
2,163,045 |
|
|
$ |
1,947,564 |
|
Industrial Metals Segment |
|
|
144,880 |
|
|
|
182,245 |
|
|
|
498,367 |
|
|
|
527,137 |
|
Climate Segment |
|
|
174,650 |
|
|
|
122,252 |
|
|
|
479,756 |
|
|
|
364,986 |
|
Elimination of intersegment sales |
|
|
(9,508 |
) |
|
|
(10,449 |
) |
|
|
(36,294 |
) |
|
|
(26,699 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
|
$ |
944,830 |
|
|
$ |
982,248 |
|
|
$ |
3,104,874 |
|
|
$ |
2,812,988 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
|
||||||||
Piping Systems Segment |
|
$ |
167,939 |
|
|
$ |
152,199 |
|
|
$ |
540,006 |
|
|
$ |
343,805 |
|
Industrial Metals Segment |
|
|
12,077 |
|
|
|
19,052 |
|
|
|
59,504 |
|
|
|
58,398 |
|
Climate Segment |
|
|
47,462 |
|
|
|
21,072 |
|
|
|
134,909 |
|
|
|
63,779 |
|
Unallocated income (expenses) |
|
|
(22,313 |
) |
|
|
41,027 |
|
|
|
(47,683 |
) |
|
|
17,722 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
205,165 |
|
|
$ |
233,350 |
|
|
$ |
686,736 |
|
|
$ |
483,704 |
|
MUELLER INDUSTRIES, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
(Unaudited) |
|
|
||
(In thousands) |
|
September 24,
|
|
December 25,
|
||
ASSETS |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
483,496 |
|
$ |
87,924 |
Accounts receivable, net |
|
|
441,287 |
|
|
471,859 |
Inventories |
|
|
454,511 |
|
|
430,244 |
Other current assets |
|
|
41,630 |
|
|
28,976 |
|
|
|
|
|
||
Total current assets |
|
|
1,420,924 |
|
|
1,019,003 |
|
|
|
|
|
||
Property, plant, and equipment, net |
|
|
374,160 |
|
|
385,562 |
Operating lease right-of-use assets |
|
|
24,297 |
|
|
23,510 |
Other assets |
|
|
290,370 |
|
|
300,861 |
|
|
|
|
|
||
Total assets |
|
$ |
2,109,751 |
|
$ |
1,728,936 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||
Current portion of debt |
|
$ |
1,123 |
|
$ |
811 |
Accounts payable |
|
|
166,978 |
|
|
180,793 |
Current portion of operating lease liabilities |
|
|
5,271 |
|
|
6,015 |
Other current liabilities |
|
|
201,575 |
|
|
194,820 |
|
|
|
|
|
||
Total current liabilities |
|
|
374,947 |
|
|
382,439 |
|
|
|
|
|
||
Long-term debt |
|
|
1,184 |
|
|
1,064 |
Pension and postretirement liabilities |
|
|
17,205 |
|
|
17,533 |
Environmental reserves |
|
|
15,612 |
|
|
17,678 |
Deferred income taxes |
|
|
11,428 |
|
|
14,347 |
Noncurrent operating lease liabilities |
|
|
18,431 |
|
|
17,099 |
Other noncurrent liabilities |
|
|
16,295 |
|
|
21,813 |
|
|
|
|
|
||
Total liabilities |
|
|
455,102 |
|
|
471,973 |
|
|
|
|
|
||
Total Mueller Industries, Inc. stockholders’ equity |
|
|
1,625,242 |
|
|
1,222,118 |
Noncontrolling interests |
|
|
29,407 |
|
|
34,845 |
|
|
|
|
|
||
Total equity |
|
|
1,654,649 |
|
|
1,256,963 |
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
2,109,751 |
|
$ |
1,728,936 |
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
|
For the Nine Months Ended |
||||||
(In thousands) |
|
September 24,
|
|
September 25,
|
||||
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
||||
Consolidated net income |
|
$ |
522,585 |
|
|
$ |
348,426 |
|
Reconciliation of consolidated net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
33,261 |
|
|
|
33,932 |
|
Stock-based compensation expense |
|
|
12,254 |
|
|
|
7,228 |
|
Provision for doubtful accounts receivable |
|
|
327 |
|
|
|
1,310 |
|
Income from unconsolidated affiliates |
|
|
(6,026 |
) |
|
|
(131 |
) |
Redemption premium |
|
|
— |
|
|
|
5,674 |
|
Gain on disposals of properties |
|
|
(7,107 |
) |
|
|
(1,135 |
) |
Gain on sale of businesses |
|
|
— |
|
|
|
(54,759 |
) |
Impairment charges |
|
|
— |
|
|
|
2,568 |
|
Insurance proceeds - non-capital related |
|
|
1,646 |
|
|
|
— |
|
Deferred income tax expense |
|
|
226 |
|
|
|
6,304 |
|
Changes in assets and liabilities, net of effects of businesses acquired and sold: |
|
|
|
|
||||
Receivables |
|
|
15,741 |
|
|
|
(155,103 |
) |
Inventories |
|
|
(33,768 |
) |
|
|
(96,505 |
) |
Other assets |
|
|
(8,574 |
) |
|
|
(9,335 |
) |
Current liabilities |
|
|
(5,331 |
) |
|
|
85,523 |
|
Other liabilities |
|
|
(7,399 |
) |
|
|
8,335 |
|
Other, net |
|
|
(923 |
) |
|
|
(851 |
) |
|
|
|
|
|
||||
Net cash provided by operating activities |
|
|
516,912 |
|
|
|
181,481 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
|
(29,555 |
) |
|
|
(25,547 |
) |
Insurance proceeds - capital related |
|
|
3,354 |
|
|
|
— |
|
Acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(13,935 |
) |
Proceeds from sale of businesses, net of cash sold |
|
|
— |
|
|
|
74,250 |
|
Investments in unconsolidated affiliates |
|
|
— |
|
|
|
(1,613 |
) |
Payment received for notes receivable |
|
|
— |
|
|
|
8,539 |
|
Proceeds from sales of properties |
|
|
7,841 |
|
|
|
2,124 |
|
Dividends from unconsolidated affiliates |
|
|
2,091 |
|
|
|
— |
|
|
|
|
|
|
||||
Net cash (used in) provided by investing activities |
|
|
(16,269 |
) |
|
|
43,818 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
For the Nine Months Ended |
||||||
(In thousands) |
|
September 24,
|
|
September 25,
|
||||
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Dividends paid to stockholders of Mueller Industries, Inc. |
|
|
(41,876 |
) |
|
|
(21,846 |
) |
Repurchase of common stock |
|
|
(38,054 |
) |
|
|
— |
|
Payment of contingent consideration |
|
|
— |
|
|
|
(1,250 |
) |
Issuance of debt |
|
|
— |
|
|
|
475,000 |
|
Repayments of debt |
|
|
(148 |
) |
|
|
(680,572 |
) |
Issuance (repayment) of debt by consolidated joint ventures, net |
|
|
406 |
|
|
|
(4,865 |
) |
Net cash (used) received to settle stock-based awards |
|
|
(1,619 |
) |
|
|
219 |
|
Debt issuance costs |
|
|
— |
|
|
|
(1,111 |
) |
Dividends paid to noncontrolling interests |
|
|
— |
|
|
|
(9,722 |
) |
|
|
|
|
|
||||
Net cash used in financing activities |
|
|
(81,291 |
) |
|
|
(244,147 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(10,310 |
) |
|
|
(377 |
) |
|
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
409,042 |
|
|
|
(19,225 |
) |
Cash, cash equivalents, and restricted cash at the beginning of the period |
|
|
90,376 |
|
|
|
127,376 |
|
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at the end of the period |
|
$ |
499,418 |
|
|
$ |
108,151 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221018005284/en/
Contacts
Jeffrey A. Martin
(901) 753-3226
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