MLI Mueller Industries Inc

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

• Net Sales of $997.7 million versus $897.0 million
• Operating Income of $210.0 million versus $210.7 million
• Earnings Before Taxes of $222.9 million versus $241.0 million
• Net Income of $160.2 million versus $177.7 million
• Diluted EPS of $1.41 versus $1.561

Second Quarter Financial and Operating Highlights:

• COMEX copper averaged $4.55 per pound during the quarter, 18.4% higher than in the second quarter of 2023.
• The increase in net sales was attributable to higher unit shipments in most of our businesses, price increases tied to higher copper prices, and the inclusion of one month of reported sales for our recently acquired Nehring business.
• In 2023, we reported an insurance settlement gain of $19.5 million related to the August 2022 fire at our Westermeyer facility. Adjusting for this gain, our quarterly operating income performance improved by 9.8% over the prior year period.
• Net cash generated from operations was $100.8 million, and our cash balance was $825.7 million at quarter end. Cash deployed during the quarter included $566.6 million for acquisitions and $15.1 million in stock repurchases.
• Our current ratio remains solid at 4.7 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our businesses continue to perform well despite persistent heightened inflation and restrained construction activity. We maintain a positive long-term outlook for our business. Our internal investments are paying off, and we expect they will yield even greater benefits as market conditions improve. Moreover, our acquisition of Nehring Electrical Works, which we completed during the quarter, provides a substantial platform for expansion in the energy infrastructure space.”

_____________________________

1

Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.1 Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.

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

 

For the Six Months Ended

(In thousands, except per share data)

 

June 29, 2024

 

July 1, 2023

 

June 29, 2024

 

July 1, 2023

 

 

 

 

 

 

 

 

 

Net sales

 

$

997,745

 

 

$

896,984

 

 

$

1,847,399

 

 

$

1,868,176

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

724,990

 

 

 

639,272

 

 

 

1,333,693

 

 

 

1,318,070

 

Depreciation and amortization

 

 

10,018

 

 

 

10,416

 

 

 

19,187

 

 

 

21,073

 

Selling, general, and administrative expense

 

 

52,731

 

 

 

56,062

 

 

 

101,088

 

 

 

108,693

 

Gain on insurance settlement

 

 

—

 

 

 

(19,466

)

 

 

—

 

 

 

(19,466

)

 

 

 

 

 

 

 

 

 

Operating income

 

 

210,006

 

 

 

210,700

 

 

 

393,431

 

 

 

439,806

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(107

)

 

 

(135

)

 

 

(222

)

 

 

(278

)

Interest income

 

 

14,383

 

 

 

7,732

 

 

 

31,628

 

 

 

13,967

 

Realized and unrealized gains on short-term investments

 

 

—

 

 

 

20,820

 

 

 

365

 

 

 

22,730

 

Other (expense) income, net

 

 

(1,356

)

 

 

1,841

 

 

 

(726

)

 

 

2,167

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

222,926

 

 

 

240,958

 

 

 

424,476

 

 

 

478,392

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(58,384

)

 

 

(62,122

)

 

 

(110,218

)

 

 

(123,479

)

(Loss) income from unconsolidated affiliates, net of foreign tax

 

 

(1,095

)

 

 

715

 

 

 

(9,102

)

 

 

(269

)

 

 

 

 

 

 

 

 

 

Consolidated net income

 

 

163,447

 

 

 

179,551

 

 

 

305,156

 

 

 

354,644

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

(3,282

)

 

 

(1,840

)

 

 

(6,628

)

 

 

(3,694

)

 

 

 

 

 

 

 

 

 

Net income attributable to Mueller Industries, Inc.

 

$

160,165

 

 

$

177,711

 

 

$

298,528

 

 

$

350,950

 

 

 

 

 

 

 

 

 

 

Weighted average shares for basic earnings per share (1)

 

 

111,216

 

 

 

111,320

 

 

 

111,316

 

 

 

111,354

 

Effect of dilutive stock-based awards (1)

 

 

2,763

 

 

 

2,680

 

 

 

2,746

 

 

 

2,046

 

 

 

 

 

 

 

 

 

 

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

 

 

113,979

 

 

 

114,000

 

 

 

114,062

 

 

 

113,400

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (1)

 

$

1.44

 

 

$

1.60

 

 

$

2.68

 

 

$

3.15

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (1)

 

$

1.41

 

 

$

1.56

 

 

$

2.62

 

 

$

3.09

 

 

 

 

 

 

 

 

 

 

Dividends per share (1)

 

$

0.20

 

 

$

0.15

 

 

$

0.40

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

For the Six Months Ended

(In thousands)

 

June 29, 2024

 

July 1, 2023

 

June 29, 2024

 

July 1, 2023

 

 

 

 

 

 

 

 

 

Summary Segment Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

Piping Systems Segment

 

$

688,469

 

 

$

638,005

 

 

$

1,278,637

 

 

$

1,300,484

 

Industrial Metals Segment

 

 

195,341

 

 

 

146,266

 

 

 

351,408

 

 

 

311,500

 

Climate Segment

 

 

130,532

 

 

 

123,954

 

 

 

247,342

 

 

 

276,908

 

Elimination of intersegment sales

 

 

(16,597

)

 

 

(11,241

)

 

 

(29,988

)

 

 

(20,716

)

 

 

 

 

 

 

 

 

 

Net sales

 

$

997,745

 

 

$

896,984

 

 

$

1,847,399

 

 

$

1,868,176

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

Piping Systems Segment

 

$

162,258

 

 

$

151,142

 

 

$

304,938

 

 

$

314,996

 

Industrial Metals Segment

 

 

29,693

 

 

 

17,971

 

 

 

53,964

 

 

 

45,186

 

Climate Segment

 

 

38,993

 

 

 

57,067

 

 

 

71,568

 

 

 

111,055

 

Unallocated income (expenses)

 

 

(20,938

)

 

 

(15,480

)

 

 

(37,039

)

 

 

(31,431

)

 

 

 

 

 

 

 

 

 

Operating income

 

$

210,006

 

 

$

210,700

 

 

$

393,431

 

 

$

439,806

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

(Unaudited)

 

 

(In thousands)

 

June 29, 2024

 

December 30, 2023

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

825,655

 

$

1,170,893

Short-term investments

 

 

—

 

 

98,146

Accounts receivable, net

 

 

522,572

 

 

351,561

Inventories

 

 

406,217

 

 

380,248

Other current assets

 

 

50,347

 

 

39,173

 

 

 

 

 

Total current assets

 

 

1,804,791

 

 

2,040,021

 

 

 

 

 

Property, plant, and equipment, net

 

 

471,443

 

 

385,165

Operating lease right-of-use assets

 

 

34,534

 

 

35,170

Other assets

 

 

755,417

 

 

298,945

 

 

 

 

 

Total assets

 

$

3,066,185

 

$

2,759,301

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current portion of debt

 

$

785

 

$

796

Accounts payable

 

 

198,537

 

 

120,485

Current portion of operating lease liabilities

 

 

8,000

 

 

7,893

Other current liabilities

 

 

179,906

 

 

187,964

 

 

 

 

 

Total current liabilities

 

 

387,228

 

 

317,138

 

 

 

 

 

Long-term debt

 

 

74

 

 

185

Pension and postretirement liabilities

 

 

11,696

 

 

12,062

Environmental reserves

 

 

14,808

 

 

15,030

Deferred income taxes

 

 

20,023

 

 

19,134

Noncurrent operating lease liabilities

 

 

26,330

 

 

26,683

Other noncurrent liabilities

 

 

33,168

 

 

10,353

 

 

 

 

 

Total liabilities

 

 

493,327

 

 

400,585

 

 

 

 

 

Total Mueller Industries, Inc. stockholders’ equity

 

 

2,546,103

 

 

2,337,445

Noncontrolling interests

 

 

26,755

 

 

21,271

 

 

 

 

 

Total equity

 

 

2,572,858

 

 

2,358,716

 

 

 

 

 

Total liabilities and equity

 

$

3,066,185

 

$

2,759,301

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months Ended

(In thousands)

 

June 29, 2024

 

July 1, 2023

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Consolidated net income

 

$

305,156

 

 

$

354,644

 

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

 

 

 

 

Depreciation and amortization

 

 

19,349

 

 

 

21,252

 

Stock-based compensation expense

 

 

13,476

 

 

 

12,459

 

Provision for doubtful accounts receivable

 

 

(67

)

 

 

(80

)

Loss from unconsolidated affiliates

 

 

9,102

 

 

 

269

 

Dividends from unconsolidated affiliates

 

 

3,541

 

 

 

—

 

Insurance proceeds - noncapital related

 

 

15,000

 

 

 

9,854

 

Gain on disposals of properties

 

 

(1,286

)

 

 

(141

)

Unrealized gain on short-term investments

 

 

—

 

 

 

(20,820

)

Gain on sales of securities

 

 

(365

)

 

 

—

 

Gain on insurance settlement

 

 

—

 

 

 

(19,466

)

Deferred income tax (benefit) expense

 

 

(1,509

)

 

 

2,406

 

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

 

 

 

 

Receivables

 

 

(132,012

)

 

 

(77,701

)

Inventories

 

 

6,706

 

 

 

(12,149

)

Other assets

 

 

8,511

 

 

 

(5,571

)

Current liabilities

 

 

30,276

 

 

 

(14,460

)

Other liabilities

 

 

(2,375

)

 

 

(976

)

Other, net

 

 

872

 

 

 

1,310

 

 

 

 

 

 

Net cash provided by operating activities

 

$

274,375

 

 

$

250,830

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

$

(25,603

)

 

$

(29,221

)

Acquisition of businesses, net of cash acquired

 

 

(566,577

)

 

 

—

 

Investments in unconsolidated affiliates

 

 

(8,700

)

 

 

—

 

Insurance proceeds - capital related

 

 

—

 

 

 

24,646

 

Purchase of short-term investments

 

 

—

 

 

 

(106,231

)

Purchase of long-term investments

 

 

(7,976

)

 

 

—

 

Proceeds from the maturity of short-term investments

 

 

—

 

 

 

217,863

 

Proceeds from the sale of securities

 

 

96,465

 

 

 

—

 

Issuance of notes receivable

 

 

(3,800

)

 

 

—

 

Proceeds from sales of properties

 

 

3,976

 

 

 

142

 

Dividends from unconsolidated affiliates

 

 

—

 

 

 

797

 

 

 

 

 

 

Net cash (used in) provided by investing activities

 

$

(512,215

)

 

$

107,996

 

 

 

 

 

 

 

 

 

 

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

For the Six Months Ended

(In thousands)

 

June 29, 2024

 

July 1, 2023

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Dividends paid to stockholders of Mueller Industries, Inc.

 

$

(44,488

)

 

$

(33,402

)

Repurchase of common stock

 

 

(42,994

)

 

 

(19,303

)

Repayments of debt

 

 

(111

)

 

 

(130

)

Issuance (repayment) of debt by consolidated joint ventures, net

 

 

11

 

 

 

(143

)

Net cash used to settle stock-based awards

 

 

(2,002

)

 

 

(2,588

)

 

 

 

 

 

Net cash used in financing activities

 

$

(89,584

)

 

$

(55,566

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(4,784

)

 

 

4,825

 

 

 

 

 

 

(Decrease) increase in cash, cash equivalents, and restricted cash

 

 

(332,208

)

 

 

308,085

 

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

 

$

842,015

 

 

$

773,381

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722255882/en/

Jeffrey A. Martin (901) 753-3226