EX-99.1 2 exhibit991q12021earningsre.htm EX-99.1
Mueller Industries, Inc. Reports First Quarter 2021 Earnings
COLLIERVILLE, Tenn., April 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 per iod.
•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.”
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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.
CONTACT
Jeffrey A. Martin
(901) 753-3226
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

|  |  |  | For the Quarter Ended
(In thousands, except per share data) |  |  |  |  |  | March 27, 2021 |  | March 28, 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 per share |  |  |  |  |  | 56,672 |  | 56,458
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 |

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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 |

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

|  | For the Quarter Ended
(In thousands) |  | March 27, 2021 |  | March 28, 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 beginning of the period |  | 127,376 |  |  | 98,042 |
Cash, cash equivalents, and restricted cash at the end of the period |  | $ | 149,031 |  |  | $ | 171,964 |

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