MLI Mueller Industries Inc

Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2024. Comparisons are to the first quarter of 2023.

• Net Income of $138.4 million versus $173.2 million
• Earnings Before Taxes of $201.6 million versus $237.4 million
• Net Sales of $849.7 million versus $971.2 million
• Diluted EPS* of $1.21 versus $1.54

(*adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023)

First Quarter Financial and Operating Highlights:

• COMEX copper averaged $3.86 per pound during the quarter, 5.6% lower than in the first quarter of 2023.
• The decrease in net sales was attributable to lower demand for our products that are primarily consumed in residential building, as well as lower selling prices as a result of the lower copper prices.
• We recorded a $10.3 million loss on our investment in Tecumseh Products Company, largely driven by restructuring charges in its international operations.
• Net cash generated from operations was $173.6 million, and our cash balance was $1.36 billion at quarter end.
• Our current ratio was 6.0 to 1.

Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “The first quarter of 2023 represented the tail end of the period of robust demand we experienced stemming from the market’s overreaction to the 2022 supply chain crisis. Given this normalization of demand, as well as the effects persistent inflation and high interest rates have had on business conditions, our 2024 first quarter performance was in line with our expectations. The rationalization actions we took in 2023 had their intended impact and contributed to the sustained margins.”

Regarding the outlook, Mr. Christopher continued, “As reported in our annual report, our long-term outlook for our business remains positive and we are well positioned for the expected rebound in demand. Additionally, we anticipate another strong year of cash flow from operations. Our capital allocation priorities remain reinvestment in our operations to be a low cost producer and growth through acquisition. As previously reported, we are excited to complete our acquisition of Nehring Electrical Works, and look forward to capitalizing on the strong growth and expansion platform it will provide to us in the critical electrical transmission infrastructure market.”

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 30, 2024

 

April 1, 2023

 

 

 

 

 

Net sales

 

$

849,654

 

 

$

971,192

 

 

 

 

 

 

Cost of goods sold

 

 

608,703

 

 

 

678,798

 

Depreciation and amortization

 

 

9,169

 

 

 

10,657

 

Selling, general, and administrative expense

 

 

48,357

 

 

 

52,631

 

 

 

 

 

 

Operating income

 

 

183,425

 

 

 

229,106

 

 

 

 

 

 

Interest expense

 

 

(115

)

 

 

(143

)

Interest income

 

 

17,245

 

 

 

6,235

 

Realized gains on short-term investments

 

 

365

 

 

 

1,910

 

Other income, net

 

 

630

 

 

 

326

 

 

 

 

 

 

Income before income taxes

 

 

201,550

 

 

 

237,434

 

 

 

 

 

 

Income tax expense

 

 

(51,834

)

 

 

(61,357

)

Loss from unconsolidated affiliates, net of foreign tax

 

 

(8,007

)

 

 

(984

)

 

 

 

 

 

Consolidated net income

 

 

141,709

 

 

 

175,093

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

(3,346

)

 

 

(1,854

)

 

 

 

 

 

Net income attributable to Mueller Industries, Inc.

 

$

138,363

 

 

$

173,239

 

 

 

 

 

 

Weighted average shares for basic earnings per share (1)

 

 

111,416

 

 

 

111,386

 

Effect of dilutive stock-based awards (1)

 

 

2,729

 

 

 

1414

 

 

 

 

 

 

Adjusted weighted average shares for diluted earnings per share (1)

 

 

114,145

 

 

 

112,800

 

 

 

 

 

 

Basic earnings per share (1)

 

$

1.24

 

 

$

1.56

 

 

 

 

 

 

Diluted earnings per share (1)

 

$

1.21

 

 

$

1.54

 

 

 

 

 

 

Dividends per share (1)

 

$

0.20

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED

(Unaudited)

 

 

 

 

 

 

 

For the Quarter Ended

(In thousands)

 

March 30, 2024

 

April 1, 2023

 

 

 

 

 

Summary Segment Data:

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

Piping Systems Segment

 

$

590,168

 

 

$

662,479

 

Industrial Metals Segment

 

 

156,067

 

 

 

165,234

 

Climate Segment

 

 

116,810

 

 

 

152,954

 

Elimination of intersegment sales

 

 

(13,391

)

 

 

(9,475

)

 

 

 

 

 

Net sales

 

$

849,654

 

 

$

971,192

 

 

 

 

 

 

Operating income:

 

 

 

 

Piping Systems Segment

 

$

142,680

 

 

$

163,854

 

Industrial Metals Segment

 

 

24,271

 

 

 

27,215

 

Climate Segment

 

 

32,575

 

 

 

53,988

 

Unallocated income (expenses)

 

 

(16,101

)

 

 

(15,951

)

 

 

 

 

 

Operating income

 

$

183,425

 

 

$

229,106

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

(Unaudited)

 

 

(In thousands)

 

March 30, 2024

 

December 30, 2023

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

1,357,952

 

$

1,170,893

Short-term investments

 

 

—

 

 

98,146

Accounts receivable, net

 

 

424,406

 

 

351,561

Inventories

 

 

356,869

 

 

380,248

Other current assets

 

 

45,379

 

 

39,173

 

 

 

 

 

Total current assets

 

 

2,184,606

 

 

2,040,021

 

 

 

 

 

Property, plant, and equipment, net

 

 

390,517

 

 

385,165

Operating lease right-of-use assets

 

 

33,819

 

 

35,170

Other assets

 

 

285,300

 

 

298,945

 

 

 

 

 

Total assets

 

$

2,894,242

 

$

2,759,301

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current portion of debt

 

$

705

 

$

796

Accounts payable

 

 

160,133

 

 

120,485

Current portion of operating lease liabilities

 

 

8,072

 

 

7,893

Other current liabilities

 

 

192,371

 

 

187,964

 

 

 

 

 

Total current liabilities

 

 

361,281

 

 

317,138

 

 

 

 

 

Long-term debt

 

 

130

 

 

185

Pension and postretirement liabilities

 

 

11,361

 

 

12,062

Environmental reserves

 

 

14,919

 

 

15,030

Deferred income taxes

 

 

22,687

 

 

19,134

Noncurrent operating lease liabilities

 

 

25,451

 

 

26,683

Other noncurrent liabilities

 

 

10,043

 

 

10,353

 

 

 

 

 

Total liabilities

 

 

445,872

 

 

400,585

 

 

 

 

 

Total Mueller Industries, Inc. stockholders’ equity

 

 

2,424,374

 

 

2,337,445

Noncontrolling interests

 

 

23,996

 

 

21,271

 

 

 

 

 

Total equity

 

 

2,448,370

 

 

2,358,716

 

 

 

 

 

Total liabilities and equity

 

$

2,894,242

 

$

2,759,301

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Quarter Ended

(In thousands)

 

March 30, 2024

 

April 1, 2023

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Consolidated net income

 

$

141,709

 

 

$

175,093

 

Reconciliation of consolidated net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

9,250

 

 

 

10,746

 

Stock-based compensation expense

 

 

6,231

 

 

 

5,637

 

Provision for doubtful accounts receivable

 

 

1

 

 

 

(15

)

Loss from unconsolidated affiliates

 

 

8,007

 

 

 

984

 

Dividends from unconsolidated affiliates

 

 

2,024

 

 

 

—

 

Insurance proceeds - noncapital related

 

 

15,000

 

 

 

—

 

Gain on disposals of properties

 

 

(1,567

)

 

 

(115

)

Gain on sales of securities

 

 

(365

)

 

 

—

 

Deferred income tax expense

 

 

940

 

 

 

372

 

Changes in assets and liabilities, net of effects of business sold:

 

 

 

 

Receivables

 

 

(75,200

)

 

 

(111,547

)

Inventories

 

 

22,502

 

 

 

(581

)

Other assets

 

 

11,984

 

 

 

(17,950

)

Current liabilities

 

 

33,948

 

 

 

50,842

 

Other liabilities

 

 

(907

)

 

 

(2,275

)

Other, net

 

 

68

 

 

 

427

 

 

 

 

 

 

Net cash provided by operating activities

 

$

173,625

 

 

$

111,618

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

$

(16,406

)

 

$

(7,556

)

Insurance proceeds - capital related

 

 

—

 

 

 

8,000

 

Purchase of short-term investments

 

 

—

 

 

 

50,000

 

Proceeds from the sale of securities

 

 

96,465

 

 

 

—

 

Issuance of notes receivable

 

 

(12,500

)

 

 

—

 

Proceeds from sales of properties

 

 

2,878

 

 

 

118

 

Dividends from unconsolidated affiliates

 

 

—

 

 

 

644

 

 

 

 

 

 

Net cash provided by investing activities

 

$

70,437

 

 

$

51,206

 

 

 

 

 

 

 

 

 

 

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

For the Quarter Ended

(In thousands)

 

March 30, 2024

 

April 1, 2023

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Dividends paid to stockholders of Mueller Industries, Inc.

 

$

(22,255

)

 

$

(16,729

)

Repurchase of common stock

 

 

(27,930

)

 

 

—

 

Repayments of debt

 

 

(56

)

 

 

(56

)

(Repayment) issuance of debt by consolidated joint ventures, net

 

 

(77

)

 

 

297

 

Net cash used to settle stock-based awards

 

 

(2,489

)

 

 

(2,611

)

 

 

 

 

 

Net cash used in financing activities

 

$

(52,807

)

 

$

(19,099

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(670

)

 

 

2,573

 

 

 

 

 

 

Increase in cash, cash equivalents, and restricted cash

 

 

190,585

 

 

 

146,298

 

Cash, cash equivalents, and restricted cash at the beginning of the period

 

 

1,174,223

 

 

 

465,296

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash at the end of the period

 

$

1,364,808

 

 

$

611,594

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240422090496/en/

Jeffrey A. Martin (901) 753-3226