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, 2022
September 25, 2021
September 24, 2022
September 25, 2021
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, 2022
September 25, 2021
September 24, 2022
September 25, 2021
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, 2022
December 25, 2021
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, 2022
September 25, 2021
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, 2022
September 25, 2021
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/
Jeffrey A. Martin (901) 753-3226
Mueller Industries (NYSE:MLI)
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