Business Wire | Apr 20, 2021 07:00AM EDT

Mueller Industries, Inc. Reports First Quarter 2021 Earnings

Apr. 20, 2021

COLLIERVILLE, Tenn.--(BUSINESS WIRE)--Apr. 20, 2021--Mueller Industries, Inc. (NYSE: MLI) announces 2021 first quarter results. (All comparisons are to the prior year quarter.)

* Operating income of $92.5 million versus $59.3 million * Net income of $63.1 million versus $32.4 million * Net sales of $818.1 million versus $602.9 million * EPS of $1.11 versus $0.57 per share

Financial and Operating Highlights:

* Average COMEX copper for the first quarter was $3.86 per pound, a 50 percent increase over the first quarter of last year. * The increase in net sales was attributable to unit sales growth across most of our businesses, recent acquisitions and the influence of the higher copper prices. The price of copper is largely passed through and as such, impacts selling prices in many of our businesses. * Selling, general, and administrative expense was $45.4 million for the quarter, which included $2.7 million of incremental expense from recently acquired businesses, compared to $42.8 million in the prior year quarter. * We recorded a $1.6 million loss on our investment in Tecumseh Products Company for the quarter, compared to a $6.3 million loss recorded during the prior year period. * During the quarter, we closed on our previously announced acquisition of the Hart & Cooley Flexible Duct business. * At quarter-end, cash on hand was $129.9 million, our debt to total capitalization was 31 percent, and the current ratio was 2.2 to 1.

Regarding the state of the Company and outlook, Greg Christopher, Mueller's CEO said:

"Our performance in the first quarter falls in line with our 2020 year-end expectations. Most economies in which we operate continue to improve, as restrictions imposed in response to the pandemic are being lifted. The increased availability of vaccines, the significant flow of money into global economies, and the potential of a U.S. infrastructure bill, strengthen this positive outlook."

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) March 27, March 28, 2021 2020



Net sales $ 818,148 $ 602,919



Cost of goods sold 668,418 508,715

Depreciation and amortization 11,755 11,039

Selling, general, and administrative expense 45,435 42,752

Asset impairments - 3,035

Litigation settlement, net - (21,933)



Operating income 92,540 59,311



Interest expense (4,469) (5,379)

Other income, net 577 278



Income before income taxes 88,648 54,210



Income tax expense (21,761) (14,144)

Loss from unconsolidated affiliates, net of foreign tax (1,649) (6,115)



Consolidated net income 65,238 33,951



Net income attributable to noncontrolling interests (2,131) (1,536)



Net income attributable to Mueller Industries, Inc. $ 63,107 $ 32,415



Weighted average shares for basic earnings per share 55,916 55,875

Effect of dilutive stock-based awards 756 583



Adjusted weighted average shares for diluted earnings 56,672 56,458per share



Basic earnings per share $ 1.13 $ 0.58



Diluted earnings per share $ 1.11 $ 0.57



Dividends per share $ 0.13 $ 0.10



Summary Segment Data:



Net sales:

Piping Systems Segment $ 547,748 $ 385,013

Industrial Metals Segment 164,852 131,202

Climate Segment 111,026 93,272

Elimination of intersegment sales (5,478) (6,568)



Net sales $ 818,148 $ 602,919



Operating income:

Piping Systems Segment $ 67,098 $ 36,676

Industrial Metals Segment 18,847 11,182

Climate Segment 17,335 13,014

Unallocated expenses (10,740) (1,561)



Operating income $ 92,540 $ 59,311

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

March 27, 2021

December 26, 2020

ASSETS

Cash and cash equivalents

$

129,876

$

119,075

Accounts receivable, net

447,492

357,532

Inventories

365,457

315,002

Other current assets

43,710

33,752

Total current assets

986,535

825,361

Property, plant, and equipment, net

384,853

376,572

Operating lease right-of-use assets

28,494

29,301

Other assets

298,447

297,334

Total assets

$

1,698,329

$

1,528,568

LIABILITIES AND STOCKHOLDERS' EQUITY

Current portion of debt

$

106,164

$

41,283

Accounts payable

177,174

147,741

Current portion of operating lease liabilities

6,567

6,259

Other current liabilities

154,583

144,360

Total current liabilities

444,488

339,643

Long-term debt

286,576

286,593

Pension and postretirement liabilities

25,468

26,841

Environmental reserves

21,322

21,256

Deferred income taxes

17,127

16,842

Noncurrent operating lease liabilities

20,832

21,602

Other noncurrent liabilities

14,503

14,731

Total liabilities

830,316

727,508

Total Mueller Industries, Inc. stockholders' equity

841,146

776,745

Noncontrolling interests

26,867

24,315

Total equity

868,013

801,060

Total liabilities and equity

$

1,698,329

$

1,528,568

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands) March 27, December 26, 2021 2020

ASSETS

Cash and cash equivalents $ 129,876 $ 119,075

Accounts receivable, net 447,492 357,532

Inventories 365,457 315,002

Other current assets 43,710 33,752



Total current assets 986,535 825,361



Property, plant, and equipment, net 384,853 376,572

Operating lease right-of-use assets 28,494 29,301

Other assets 298,447 297,334



Total assets $ 1,698,329 $ 1,528,568



LIABILITIES AND STOCKHOLDERS' EQUITY

Current portion of debt $ 106,164 $ 41,283

Accounts payable 177,174 147,741

Current portion of operating lease liabilities 6,567 6,259

Other current liabilities 154,583 144,360



Total current liabilities 444,488 339,643



Long-term debt 286,576 286,593

Pension and postretirement liabilities 25,468 26,841

Environmental reserves 21,322 21,256

Deferred income taxes 17,127 16,842

Noncurrent operating lease liabilities 20,832 21,602

Other noncurrent liabilities 14,503 14,731



Total liabilities 830,316 727,508



Total Mueller Industries, Inc. stockholders' 841,146 776,745equity

Noncontrolling interests 26,867 24,315



Total equity 868,013 801,060



Total liabilities and equity $ 1,698,329 $ 1,528,568

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Quarter Ended

(In thousands) March 27, March 28, 2021 2020



Cash flows from operating activities

Consolidated net income $ 65,238 $ 33,951

Reconciliation of consolidated net income to net cash (used in) provided by operating activities:

Depreciation and amortization 11,775 11,119

Stock-based compensation expense 2,109 1,985

Provision for doubtful accounts receivable 1,631 1,100

Loss from unconsolidated affiliates 1,649 6,115

(Gain) loss on disposals of properties (936) 32

Impairment charges - 3,035

Deferred income tax expense 142 213

Changes in assets and liabilities, net of effects of businesses acquired:

Receivables (89,972) (46,291)

Inventories (45,590) 17,450

Other assets 1,230 8,010

Current liabilities 33,941 (10,821)

Other liabilities (3,703) (1,643)

Other, net (95) 3,796



Net cash (used in) provided by operating activities (22,581) 28,051



Cash flows from investing activities

Capital expenditures (9,227) (17,094)

Acquisition of businesses, net of cash acquired (14,029) (15,407)

Proceeds from sales of properties 1,730 -



Net cash used in investing activities (21,526) (32,501)



Cash flows from financing activities

Repurchase of common stock - (5,574)

Issuance of debt 100,000 110,000

Repayments of debt (35,288) (20,572)

Issuance of debt by consolidated joint ventures, net 45 189

Net cash received to settle stock-based awards 221 464



Net cash provided by financing activities 64,978 84,507



Effect of exchange rate changes on cash 784 (6,135)



Increase in cash, cash equivalents, and restricted cash 21,655 73,922

Cash, cash equivalents, and restricted cash at the 127,376 98,042beginning of the period



Cash, cash equivalents, and restricted cash at the end $ 149,031 $ 171,964of the period

View source version on businesswire.com: https://www.businesswire.com/news/home/20210420005226/en/

CONTACT: Jeffrey A. Martin (901) 753-3226