Mueller Industries, Inc. (NYSE: MLI) today reported 2022 fourth
quarter and full year results.
For the Fourth Quarter 2022 versus Fourth Quarter 2021:
- Operating income: $190.4 million vs $172.1 million, up
10.6%.
- Net sales: $877.6 million vs $956.4 million, down 8.2%.
- Net income: $138.9 million vs $125.6 million, up 10.6%.
- Diluted EPS: $2.46 vs $2.21, up 11.3%.
For the Full Year 2022 versus the Full Year 2021:
- Operating income: $877.1 million vs $655.8 million, up
33.7%.
- Net sales: $4.0 billion vs $3.8 billion, up 5.7%.
- Net income: $658.3 million vs $468.5 million, up 40.5%.
- Diluted EPS: $11.64 vs $8.25, up 41.1%.
Fourth Quarter Financial and Operating Commentary
- The average price of copper was $3.66 per pound, a 16.4 percent
decline as compared with the fourth quarter of 2021.
- Net sales declined $78.8 million, reflecting the impact of
lower copper prices as well as an 11 percent reduction in unit
volumes across our mill businesses, the largest of which emanated
from our international operations. These reductions were offset by
a 22 percent increase in net sales from our higher value added
businesses, particularly in our climate segment.
- The Company recognized a $13.1 million expense related to its
complete withdrawal from a multi-employer pension plan, thereby
eliminating a significant long term financial risk.
- The Company generated $207 million of cash from operations in
the fourth quarter, $723.9 million for the year and cash and
short-term investments totaled $678.9 million at year end. The
Company’s current ratio is 4 to 1.
Operating Highlights and Outlook:
Greg Christopher, CEO, commented, “We concluded 2022 by
delivering the best fourth quarter of operating and net income in
the Company’s history. Not only have we reinvested to be a low cost
producer, but we have also pursued acquisitions that both
strengthen our market leading positions in core products and expand
our portfolio into higher value added content. In tandem, these
strategic actions have improved our gross margins to levels we
believe are more appropriate for the industries we serve.
Economic activity as a whole began to temper during the second
half of 2022 amidst rising interest rates, inflationary pressures,
and global instability. Beyond that, the destocking of inventories
and normalization of supply chains exerted downward impacts.
Notwithstanding, we head into 2023 with an optimistic outlook.
Although we anticipate some decline in U.S. residential building
markets as compared with 2022, we also believe that household
formations will remain underserved by the housing supply. As such,
demand levels should remain at healthy levels relative to industry
capacity. At the same time, we maintain continued backlogs in other
critical markets including commercial construction, refrigeration,
HVAC and transportation. Internationally, we believe that following
a difficult 2022, market conditions may be bottoming out, thereby
positioning our businesses for a rebound.
This was another record year of financial performance for our
Company, but we still see many opportunities ahead of us.
Importantly, our strong performance has enabled us to build a war
chest to fund continued investments to improve our low cost
position and support our bold plans for growth.”
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 Year Ended
(In thousands, except per share data)
December 31, 2022
December 25, 2021
December 31, 2022
December 25, 2021
Net sales
$
877,581
$
956,357
$
3,982,455
$
3,769,345
Cost of goods sold
620,800
726,594
2,864,862
2,938,989
Depreciation and amortization
10,738
11,633
43,731
45,390
Selling, general, and administrative
expense
55,630
48,729
203,086
184,052
Gain on sale of businesses
—
(3,001
)
—
(57,760
)
Gain on sale of assets, net
—
—
(6,373
)
—
Impairment charges
—
261
—
2,829
Operating income
190,413
172,141
877,149
655,845
Interest expense
(144
)
(258
)
(810
)
(7,709
)
Environmental expense
349
(982
)
(1,298
)
(5,053
)
Redemption premium
—
—
—
(5,674
)
Pension plan termination expense
(13,100
)
—
(13,100
)
—
Other income, net
8,430
947
14,090
3,730
Income before income taxes
185,948
171,848
876,031
641,139
Income tax expense
(49,798
)
(44,862
)
(223,322
)
(165,858
)
Income (loss) from unconsolidated
affiliates, net of foreign tax
4,085
(288
)
10,111
(157
)
Consolidated net income
140,235
126,698
662,820
475,124
Net income attributable to noncontrolling
interests
(1,329
)
(1,097
)
(4,504
)
(6,604
)
Net income attributable to Mueller
Industries, Inc.
$
138,906
$
125,601
$
658,316
$
468,520
Weighted average shares for basic earnings
per share
55,642
56,104
55,779
56,011
Effect of dilutive stock-based awards
717
796
776
787
Adjusted weighted average shares for
diluted earnings per share
56,359
56,900
56,555
56,798
Basic earnings per share
$
2.50
$
2.24
$
11.80
$
8.36
Diluted earnings per share
$
2.46
$
2.21
$
11.64
$
8.25
Dividends per share
$
0.25
$
0.13
$
1.00
$
0.52
For the Quarter Ended
For the Year Ended
(In thousands)
December 31, 2022
December 25, 2021
December 31, 2022
December 25, 2021
Summary Segment Data:
Net sales:
Piping Systems Segment
$
567,039
$
652,466
$
2,730,084
$
2,600,030
Industrial Metals Segment
146,322
176,226
644,689
703,363
Climate Segment
170,551
130,428
650,307
495,414
Elimination of intersegment sales
(6,331
)
(2,763
)
(42,625
)
(29,462
)
Net sales
$
877,581
$
956,357
$
3,982,455
$
3,769,345
Operating income:
Piping Systems Segment
$
131,056
$
142,482
$
671,062
$
486,287
Industrial Metals Segment
22,960
27,077
82,464
85,475
Climate Segment
53,158
21,757
188,067
85,536
Unallocated expenses
(16,761
)
(19,175
)
(64,444
)
(1,453
)
Operating income
$
190,413
$
172,141
$
877,149
$
655,845
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands)
December 31, 2022
December 25 2021
ASSETS
Cash and cash equivalents
$
461,018
$
87,924
Short-term investments
217,863
—
Accounts receivable, net
380,352
471,859
Inventories
448,919
430,244
Other current assets
26,501
28,976
Total current assets
1,534,653
1,019,003
Property, plant, and equipment, net
379,950
385,562
Operating lease right-of-use assets
22,892
23,510
Other assets
304,904
300,861
$
2,242,399
$
1,728,936
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current portion of debt
$
811
$
811
Accounts payable
128,000
180,793
Current portion of operating lease
liabilities
4,942
6,015
Other current liabilities
214,542
194,820
Total current liabilities
348,295
382,439
Long-term debt
1,218
1,064
Pension and postretirement liabilities
13,055
17,533
Environmental reserves
16,380
17,678
Deferred income taxes
16,258
14,347
Noncurrent operating lease liabilities
16,880
17,099
Other noncurrent liabilities
16,349
21,813
Total liabilities
428,435
471,973
Total Mueller Industries, Inc.
stockholders’ equity
1,790,914
1,222,118
Noncontrolling interests
23,050
34,845
Total equity
1,813,964
1,256,963
$
2,242,399
$
1,728,936
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Year Ended
(In thousands)
December 31, 2022
December 25, 2021
Cash flows from operating
activities
Consolidated net income
$
662,820
$
475,124
Reconciliation of consolidated net income
to net cash provided by operating activities:
Depreciation and amortization
44,088
45,655
Stock-based compensation expense
17,801
9,822
Provision for doubtful accounts
receivable
323
1,216
(Income) loss from unconsolidated
affiliates
(10,111
)
157
Gain on sale of businesses
—
(57,760
)
(Gain) loss on disposals of assets
(6,373
)
(769
)
Redemption premium
—
5,674
Insurance proceeds - noncapital
related
1,646
—
Impairment charges
—
2,829
Deferred income tax (benefit) expense
(3,880
)
7,413
Changes in assets and liabilities, net of
effects of businesses acquired and sold:
Receivables
82,713
(124,708
)
Inventories
(24,189
)
(119,514
)
Other assets
(8,971
)
919
Current liabilities
(26,633
)
73,755
Other liabilities
(7,564
)
(5,467
)
Other, net
2,273
(2,645
)
Net cash provided by operating
activities
723,943
311,701
Cash flows from investing
activities
Proceeds from sale of assets, net of cash
transferred
7,850
2,302
Purchase of short-term investments
(217,863
)
—
Proceeds from sale of business, net of
cash sold
—
81,884
Acquisition of businesses, net of cash
acquired
—
(30,206
)
Capital expenditures
(37,639
)
(31,833
)
Insurance proceeds - capital related
3,354
—
Dividends from unconsolidated
affiliates
2,295
—
Payment received for (issuance of) notes
receivable
—
8,539
Investments in unconsolidated
affiliates
—
(1,613
)
Net cash (used in) provided by investing
activities
(242,003
)
29,073
For the Year Ended
(In thousands)
December 31, 2022
December 25, 2021
Cash flows from financing
activities
Dividends paid to stockholders of Mueller
Industries, Inc.
(55,787
)
(29,137
)
Dividends paid to noncontrolling
interests
(7,248
)
(9,722
)
Issuance of long-term debt
—
595,000
Repayments of long-term debt
(204
)
(920,610
)
Issuance (repayment) of debt by
consolidated joint ventures, net
67
(5,113
)
Repurchase of common stock
(38,054
)
(4,864
)
Payment of contingent consideration
—
(1,250
)
Net cash (used) received to settle
stock-based awards
(1,429
)
85
Debt issuance costs
—
(1,111
)
Net cash used in financing activities
(102,655
)
(376,722
)
Effect of exchange rate changes on
cash
(4,365
)
(1,052
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
374,920
(37,000
)
Cash, cash equivalents, and restricted
cash at the beginning of the year
90,376
127,376
Cash, cash equivalents, and restricted
cash at the end of the year
$
465,296
$
90,376
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207005332/en/
Jeffrey A. Martin (901) 753-3226
Mueller Industries (NYSE:MLI)
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