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.”
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
(In thousands, except per share data)
April 1,
2023
March 26,
2022
Net sales
$
971,192
$
1,010,002
Cost of goods sold
678,798
744,511
Depreciation and amortization
10,657
10,841
Selling, general, and administrative
expense
52,631
47,456
Gain on sale of assets
—
(5,507
)
Operating income
229,106
212,701
Interest expense
(143
)
(158
)
Interest income
6,235
160
Other income, net
2,236
620
Income before income taxes
237,434
213,323
Income tax expense
(61,357
)
(54,199
)
(Loss) income from unconsolidated
affiliates, net of foreign tax
(984
)
124
Consolidated net income
175,093
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 share
55,693
56,100
Effect of dilutive stock-based awards
707
810
Adjusted weighted average shares for
diluted earnings per share
56,400
56,910
Basic earnings per share
$
3.11
$
2.82
Diluted earnings per share
$
3.07
$
2.78
Dividends per share
$
0.30
$
0.25
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 Segment
165,234
174,312
Climate Segment
152,954
140,622
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 Segment
27,215
23,259
Climate Segment
53,988
36,700
Unallocated income (expenses)
(15,951
)
(7,746
)
Operating income
$
229,106
$
212,701
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 investments
170,997
217,863
Accounts receivable, net
503,369
380,352
Inventories
452,826
448,919
Other current assets
28,420
26,501
Total current assets
1,767,011
1,534,653
Property, plant, and equipment, net
377,324
379,950
Operating lease right-of-use assets
29,897
22,892
Other assets
305,389
304,904
Total assets
$
2,479,621
$
2,242,399
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current portion of debt
$
1,108
$
811
Accounts payable
179,244
128,000
Current portion of operating lease
liabilities
6,249
4,942
Other current liabilities
220,144
214,542
Total current liabilities
406,745
348,295
Long-term debt
1,251
1,218
Pension and postretirement liabilities
11,260
13,055
Environmental reserves
16,060
16,380
Deferred income taxes
17,561
16,258
Noncurrent operating lease liabilities
22,773
16,880
Other noncurrent liabilities
16,502
16,349
Total liabilities
492,152
428,435
Total Mueller Industries, Inc.
stockholders’ equity
1,962,307
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
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 amortization
10,746
10,930
Stock-based compensation expense
5,637
2,573
Provision for doubtful accounts
receivable
(15
)
125
Loss (income) from unconsolidated
affiliates
984
(124
)
Gain on disposals of properties
(115
)
(5,507
)
Deferred income tax expense
372
258
Changes in assets and liabilities:
Receivables
(111,547
)
(116,610
)
Inventories
(581
)
(40,803
)
Other assets
(17,950
)
314
Current liabilities
50,842
54,344
Other liabilities
(2,275
)
(1,752
)
Other, net
427
(137
)
Net cash provided by operating
activities
111,618
62,859
Cash flows from investing
activities
Capital expenditures
(7,556
)
(5,259
)
Insurance proceeds - capital related
8,000
—
Proceeds from the maturity of short term
investments
50,000
—
Proceeds from sales of properties
118
6,219
Dividends from unconsolidated
affiliates
644
959
Net cash provided by investing
activities
51,206
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, net
297
—
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
cash
2,573
301
Increase in cash, cash equivalents, and
restricted cash
146,298
60,821
Cash, cash equivalents, and restricted
cash at the beginning of the period
465,296
90,376
Cash, cash equivalents, and restricted
cash at the end of the period
$
611,594
$
151,197
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230425005244/en/
Jeffrey A. Martin (901) 753-3226
Mueller Industries (NYSE:MLI)
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