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Mueller Industries, Inc. Reports First Quarter 2023 Earnings

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

 

 

Contacts

Jeffrey A. Martin

(901) 753-3226

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