COLLIERVILLE, Tenn.--(BUSINESS WIRE)--Apr 25, 2023--
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.
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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.
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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 | |
| | | | |
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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 | |
| | | | | | | | |
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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 |
| | | | | | |
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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/
CONTACT: Jeffrey A. Martin
(901) 753-3226
KEYWORD: TENNESSEE UNITED STATES NORTH AMERICA
