EX-99.1 2 exhibit991q22022earningsre.htm EX-99.1
Mueller Industries, Inc. Reports Second Quarter 2022 Earnings
COLLIERVILLE, Tenn., July 19, 2022 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the second quarter of 2022. (All comparisons are to the prior year quarter.)
•Operating Income of $268.9 million versus $157.8 million
•Net Income of $206.6 million versus $108.8 million
•EPS of $3.65 versus $1.92
•Net Sales of $1.15 billion versus $1.01 billion
Second Quarter Financial and Operating Highlights:
•The 13.6 percent increase in net sales was driven by strong growth in our value added businesses, combined with higher selling prices across all businesses.
◦COMEX copper averaged $4.34 per pound during the quarter, two percent lower than the second quarter of 2021.
◦Our Industrials Metals group volume, measured in pounds, declined 4 percent, largely attributable to customer inventory re-balancing as lead times improved.
◦Our U.S. copper tube volume was up slightly and remains solid; however, influenced largely by economic softening outside of the U.S., our international tube sales declined 17 percent, against a very strong second quarter in 2021.
◦Our value added businesses grew 33 percent.
◦Divestitures in 2021 reduced net sales by $31 million as compared with the prior year quarter.
•Cash at quarter end was $202.5 million, up 114.6 million year to date.
◦Cash generated from operations was $142 million.
◦Net debt was zero.
◦The current ratio at quarter end was 3.2 to 1.
Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “At the mid-way point in the year, our businesses continue to deliver excellent results. The second quarter was our twelfth consecutive quarter in which operating income grew over the prior year period. Rising interest rates, inflationary pressures and continued geopolitical disruptions will create short term challenges, but notwithstanding, we believe that Mueller is well positioned for continued long term growth.
1

“The majority of our businesses remain at capacity along with healthy backlogs. We anticipate that some tempering in our primary market segment, building construction, will occur, but that underlying demand will nevertheless remain at levels we consider very healthy for our businesses.
“Our cash generation is strong, and we have zero net debt along with a committed, untapped credit facility. Reinvestment in our businesses to be the lowest cost producer remains a top priority, and we are well equipped to take advantage of strategic acquisition opportunities as they arise.”
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.
CONTACT
Jeffrey A. Martin
(901) 753-3226
2

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 25, 2022 |  | June 26, 2021 |  | June 25, 2022 |  | June 26, 2021
Net sales |  | $ | 1,150,042 |  |  | $ | 1,012,592 |  |  | $ | 2,160,044 |  |  | $ | 1,830,740 |
Cost of goods sold |  | 820,914 |  | 799,712 |  | 1,565,425 |  | 1,468,130
Depreciation and amortization |  | 11,302 |  | 11,134 |  | 22,143 |  | 22,889
Selling, general, and administrative expense |  | 48,956 |  | 43,932 |  | 96,412 |  | 89,367
Gain on sale of assets |  | — |  |  | — |  |  | (5,507) |  |  | — |
Operating income |  | 268,870 |  | 157,814 |  | 481,571 |  | 250,354
Interest expense |  | (147) |  |  | (1,866) |  |  | (305) |  |  | (6,335) |
Redemption premium |  | — |  |  | (5,674) |  |  | — |  |  | (5,674) |
Other income, net |  | 2,203 |  |  | 683 |  |  | 2,983 |  |  | 1,260 |
Income before income taxes |  | 270,926 |  | 150,957 |  |  | 484,249 |  | 239,605 |
Income tax expense |  | (68,290) |  |  | (39,006) |  |  | (122,489) |  |  | (60,767) |
Income (loss) from unconsolidated affiliates, net of foreign tax |  | 4,888 |  |  | (1,019) |  |  | 5,012 |  |  | (2,668) |
Consolidated net income |  | 207,524 |  |  | 110,932 |  |  | 366,772 |  |  | 176,170 |
Net income attributable to noncontrolling interests |  | (972) |  |  | (2,100) |  |  | (1,904) |  |  | (4,231) |
Net income attributable to Mueller Industries, Inc. |  | $ | 206,552 |  |  | $ | 108,832 |  |  | $ | 364,868 |  |  | $ | 171,939 |
Weighted average shares for basic earnings per share |  | 55,787 |  | 55,946 |  | 55,943 |  | 55,931
Effect of dilutive stock-based awards |  | 741 |  | 866 |  | 776 |  | 811
Adjusted weighted average shares for diluted earnings per share |  | 56,528 |  | 56,812 |  | 56,719 |  | 56,742
Basic earnings per share |  | $ | 3.70 |  |  | $ | 1.95 |  |  | $ | 6.52 |  |  | $ | 3.07 |
Diluted earnings per share |  | $ | 3.65 |  |  | $ | 1.92 |  |  | $ | 6.43 |  |  | $ | 3.03 |
Dividends per share |  | $ | 0.25 |  |  | $ | 0.13 |  |  | $ | 0.50 |  |  | $ | 0.26 |

3

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
|  | For the Quarter Ended |  | For the Six Months Ended
(In thousands) |  | June 25, 2022 |  | June 26, 2021 |  | June 25, 2022 |  | June 26, 2021
Summary Segment Data: |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
Piping Systems Segment |  | $ | 824,807 |  |  | $ | 711,616 |  |  | $ | 1,528,237 |  |  | $ | 1,259,364 |
Industrial Metals Segment |  | 179,175 |  | 180,040 |  | 353,487 |  | 344,892
Climate Segment |  | 164,484 |  | 131,708 |  | 305,106 |  | 242,734
Elimination of intersegment sales |  | (18,424) |  |  | (10,772) |  |  | (26,786) |  |  | (16,250) |
Net sales |  | $ | 1,150,042 |  |  | $ | 1,012,592 |  |  | $ | 2,160,044 |  |  | $ | 1,830,740 |
Operating income: |  |  |  |  |  |  |  |
Piping Systems Segment |  | $ | 211,579 |  |  | $ | 124,508 |  |  | $ | 372,067 |  |  | $ | 191,606 |
Industrial Metals Segment |  | 24,168 |  | 20,499 |  | 47,427 |  | 39,346
Climate Segment |  | 50,747 |  | 25,372 |  | 87,447 |  | 42,707
Unallocated income (expenses) |  | (17,624) |  |  | (12,565) |  |  | (25,370) |  |  | (23,305) |
Operating income |  | $ | 268,870 |  |  | $ | 157,814 |  |  | $ | 481,571 |  |  | $ | 250,354 |

4

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

|  | (Unaudited) |  |
(In thousands) |  | June 25, 2022 |  | December 25, 2021
ASSETS |  |  |  |
Cash and cash equivalents |  | $ | 202,501 |  |  | $ | 87,924 |
Accounts receivable, net |  | 611,578 |  | 471,859
Inventories |  | 475,951 |  | 430,244
Other current assets |  | 45,726 |  | 28,976
Total current assets |  | 1,335,756 |  | 1,019,003
Property, plant, and equipment, net |  | 388,139 |  | 385,562
Operating lease right-of-use assets |  | 22,870 |  | 23,510 |
Other assets |  | 300,207 |  | 300,861
Total assets |  | $ | 2,046,972 |  |  | $ | 1,728,936 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |
Current portion of debt |  | $ | 1,112 |  |  | $ | 811 |
Accounts payable |  | 208,869 |  | 180,793
Current portion of operating lease liabilities |  | 5,725 |  |  | 6,015 |
Other current liabilities |  | 203,065 |  | 194,820
Total current liabilities |  | 418,771 |  | 382,439
Long-term debt |  | 1,131 |  | 1,064
Pension and postretirement liabilities |  | 16,608 |  | 17,533
Environmental reserves |  | 16,300 |  | 17,678
Deferred income taxes |  | 11,712 |  | 14,347
Noncurrent operating lease liabilities |  | 15,899 |  | 17,099 |
Other noncurrent liabilities |  | 20,928 |  | 21,813
Total liabilities |  | 501,349 |  | 471,973
Total Mueller Industries, Inc. stockholders’ equity |  | 1,510,463 |  |  | 1,222,118
Noncontrolling interests |  | 35,160 |  |  | 34,845
Total equity |  | 1,545,623 |  |  | 1,256,963
Total liabilities and equity |  | $ | 2,046,972 |  |  | $ | 1,728,936 |

5

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

|  | For the Six Months Ended
(In thousands) |  | June 25, 2022 |  | June 26, 2021
Cash flows from operating activities |  |  |  |
Consolidated net income |  | $ | 366,772 |  |  | $ | 176,170 |
Reconciliation of consolidated net income to net cash provided by operating activities: |  |  |  |
Depreciation and amortization |  | 22,322 |  |  | 22,975 |
Stock-based compensation expense |  | 5,171 |  |  | 4,817 |
Provision for doubtful accounts receivable |  | 151 |  |  | 1,280 |
(Income) loss from unconsolidated affiliates |  | (5,012) |  |  | 2,668 |
Redemption premium |  | — |  |  | 5,674 |
Gain on disposals of properties |  | (6,800) |  |  | (819) |
Deferred income tax (benefit) expense |  | (373) |  |  | 3,252 |
Changes in assets and liabilities, net of effects of businesses acquired and sold: |  |  |  |
Receivables |  | (146,438) |  |  | (190,944) |
Inventories |  | (49,354) |  |  | (63,949) |
Other assets |  | (6,095) |  |  | (5,482) |
Current liabilities |  | 28,906 |  |  | 50,456 |
Other liabilities |  | (4,283) |  |  | 3,429 |
Other, net |  | (433) |  |  | (247) |
Net cash provided by operating activities |  | 204,534 |  |  | 9,280 |
Cash flows from investing activities |  |  |  |
Capital expenditures |  | (23,248) |  |  | (17,978) |
Acquisition of businesses, net of cash acquired |  | — |  |  | (13,935) |
Payment received for (issuance of) notes receivable |  | — |  |  | 8,539 |
Proceeds from sales of properties |  | 7,561 |  |  | 1,730 |
Dividends from unconsolidated affiliates |  | 1,609 |  |  | — |
Net cash used in investing activities |  | (14,078) |  |  | (21,644) |
Cash flows from financing activities |  |  |  |
Dividends paid to stockholders of Mueller Industries, Inc. |  | (27,968) |  |  | (14,546) |
Repurchase of common stock |  | (33,469) |  |  | — |
Issuance of debt |  | — |  |  | 425,000 |
Repayments of debt |  | (111) |  |  | (400,497) |
Issuance of debt by consolidated joint ventures, net |  | 360 |  |  | 463 |
Net cash (used) received to settle stock-based awards |  | (95) |  |  | 414 |
Debt issuance costs |  | — |  |  | (1,111) |
Net cash (used in) provided by financing activities |  | (61,283) |  |  | 9,723 |
Effect of exchange rate changes on cash |  | (2,234) |  |  | 987 |
Increase (decrease) in cash, cash equivalents, and restricted cash |  | 126,939 |  |  | (1,654) |
Cash, cash equivalents, and restricted cash at the beginning of the period |  | 90,376 |  |  | 127,376 |
Cash, cash equivalents, and restricted cash at the end of the period |  | $ | 217,315 |  |  | $ | 125,722 |

6