EX-99.1 2 exhibit991q32023earningsre.htm EX-99.1
Mueller Industries, Inc. Reports Third Quarter 2023 Earnings
COLLIERVILLE, Tenn., October 24, 2023 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2023. Comparisons are to the third quarter of 2022.
•Operating Income of $181.0 million versus $205.2 million
•Net Income of $132.7 million versus $154.5 million
•Diluted EPS* of $1.17 versus $1.37
•Net Sales of $819.8 million versus $944.8 million
(*adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023)
Third Quarter Financial and Operating Highlights:
•The decrease in net sales was primarily attributable to reduced demand in our wholesale channel as distributors continued to rebalance inventory levels, particularly for products utilized in residential construction.
•We sold a majority interest in our PEX plastic piping business on July 3, 2023. In the prior year quarter, this business contributed $11.2 million in net sales.
•Net cash provided by operations was $247.7 million, and cash plus short-term investments were $1.10 billion at quarter end.
•Our current ratio increased to 6.0 to 1.
•On September 26, 2023, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend. The record date for the stock split was October 6, 2023, and the dividend was distributed on stockholders on October 20, 2023.
Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our businesses have aptly adjusted to the expected tempering of demand in 2023 following the unrestrained demand levels that occurred in 2022. Nonetheless, business conditions at these levels are historically favorable. In addition, we are executing on a number of strategic investments and capacity rationalizations that we expect will continue to yield favorable cost improvements.”
Mr. Christopher continued, “We remain focused on growth and continue to actively identify, evaluate and pursue opportunities that will expand and strengthen our portfolio. Our balance sheet, particularly our cash position, is an excellent resource to support these initiatives.”
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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 |  | For the Nine Months Ended
(In thousands, except per share data) |  | September 30, 2023 |  | September 24, 2022 |  | September 30, 2023 |  | September 24, 2022
Net sales |  | $ | 819,792 |  |  | $ | 944,830 |  |  | $ | 2,687,968 |  |  | $ | 3,104,874 |
Cost of goods sold |  | 579,058 |  | 678,637 |  | 1,897,128 |  | 2,244,062
Depreciation and amortization |  | 9,631 |  | 10,850 |  | 30,704 |  | 32,993
Selling, general, and administrative expense |  | 48,295 |  | 50,178 |  | 156,988 |  | 146,590
Gain on sale of assets |  | — |  |  | — |  |  | — |  |  | (5,507) |
Gain on sale of business |  | (4,137) |  |  | — |  |  | (4,137) |  |  | — |
Asset impairments |  | 5,934 |  |  | — |  |  | 5,934 |  |  | — |
Gain on insurance settlement |  | — |  |  | — |  |  | (19,466) |  |  | — |
Operating income |  | 181,011 |  | 205,165 |  | 620,817 |  | 686,736
Interest expense |  | (230) |  |  | (361) |  |  | (508) |  |  | (666) |
Interest income |  | 10,599 |  |  | 1,356 |  |  | 24,566 |  |  | 1,619 |
Unrealized (loss) gain on short-term investments |  | (2,371) |  |  | — |  |  | 18,449 |  |  | — |
Other (expense) income, net |  | (44) |  |  | (326) |  |  | 4,033 |  |  | 2,394 |
Income before income taxes |  | 188,965 |  | 205,834 |  |  | 667,357 |  | 690,083 |
Income tax expense |  | (50,843) |  |  | (51,035) |  |  | (174,322) |  |  | (173,524) |
(Loss) income from unconsolidated affiliates, net of foreign tax |  | (2,413) |  |  | 1,014 |  |  | (2,682) |  |  | 6,026 |
Consolidated net income |  | 135,709 |  |  | 155,813 |  |  | 490,353 |  |  | 522,585 |
Net income attributable to noncontrolling interests |  | (3,000) |  |  | (1,271) |  |  | (6,694) |  |  | (3,175) |
Net income attributable to Mueller Industries, Inc. |  | $ | 132,709 |  |  | $ | 154,542 |  |  | $ | 483,659 |  |  | $ | 519,410 |
Weighted average shares for basic earnings per share (1) |  | 111,416 |  | 111,178 |  | 111,374 |  | 111,650
Effect of dilutive stock-based awards (1) |  | 2,452 |  | 1670 |  | 2,182 |  | 1592
Adjusted weighted average shares for diluted earnings per share (1) |  | 113,868 |  | 112,848 |  | 113,556 |  | 113,242
Basic earnings per share (1) |  | $ | 1.19 |  |  | $ | 1.39 |  |  | $ | 4.34 |  |  | $ | 4.65 |
Diluted earnings per share (1) |  | $ | 1.17 |  |  | $ | 1.37 |  |  | $ | 4.26 |  |  | $ | 4.59 |
Dividends per share (1) |  | $ | 0.150 |  |  | $ | 0.125 |  |  | $ | 0.450 |  |  | $ | 0.375 |
(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 6, 2023.

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
|  | For the Quarter Ended |  | For the Nine Months Ended
(In thousands) |  | September 30, 2023 |  | September 24, 2022 |  | September 30, 2023 |  | September 24, 2022
Summary Segment Data: |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
Piping Systems Segment |  | $ | 568,151 |  |  | $ | 634,808 |  |  | $ | 1,868,635 |  |  | $ | 2,163,045 |
Industrial Metals Segment |  | 141,012 |  | 144,880 |  | 452,512 |  | 498,367
Climate Segment |  | 119,949 |  | 174,650 |  | 396,857 |  | 479,756
Elimination of intersegment sales |  | (9,320) |  |  | (9,508) |  |  | (30,036) |  |  | (36,294) |
Net sales |  | $ | 819,792 |  |  | $ | 944,830 |  |  | $ | 2,687,968 |  |  | $ | 3,104,874 |
Operating income: |  |  |  |  |  |  |  |
Piping Systems Segment |  | $ | 140,609 |  |  | $ | 167,939 |  |  | $ | 455,605 |  |  | $ | 540,006 |
Industrial Metals Segment |  | 16,221 |  | 12,077 |  | 61,407 |  | 59,504
Climate Segment |  | 34,846 |  | 47,462 |  | 145,901 |  | 134,909
Unallocated income (expenses) |  | (10,665) |  |  | (22,313) |  |  | (42,096) |  |  | (47,683) |
Operating income |  | $ | 181,011 |  |  | $ | 205,165 |  |  | $ | 620,817 |  |  | $ | 686,736 |

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

|  | (Unaudited) |  |
(In thousands) |  | September 30, 2023 |  | December 31, 2022
ASSETS |  |  |  |
Cash and cash equivalents |  | $ | 979,790 |  |  | $ | 461,018 |
Short-term investments |  | 124,680 |  | 217,863
Accounts receivable, net |  | 409,187 |  | 380,352
Inventories |  | 391,740 |  | 448,919
Other current assets |  | 31,373 |  | 26,501
Total current assets |  | 1,936,770 |  | 1,534,653
Property, plant, and equipment, net |  | 376,678 |  | 379,950
Operating lease right-of-use assets |  | 33,898 |  | 22,892 |
Other assets |  | 316,395 |  | 304,904
Total assets |  | $ | 2,663,741 |  |  | $ | 2,242,399 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |
Current portion of debt |  | $ | 556 |  |  | $ | 811 |
Accounts payable |  | 141,930 |  | 128,000
Current portion of operating lease liabilities |  | 7,431 |  |  | 4,942 |
Other current liabilities |  | 172,588 |  | 214,542
Total current liabilities |  | 322,505 |  | 348,295
Long-term debt |  | 1,301 |  | 1,218
Pension and postretirement liabilities |  | 12,928 |  | 13,055
Environmental reserves |  | 15,420 |  | 16,380
Deferred income taxes |  | 18,502 |  | 16,258
Noncurrent operating lease liabilities |  | 25,793 |  | 16,880 |
Other noncurrent liabilities |  | 16,063 |  | 16,349
Total liabilities |  | 412,512 |  | 428,435
Total Mueller Industries, Inc. stockholders’ equity |  | 2,221,241 |  |  | 1,790,914
Noncontrolling interests |  | 29,988 |  |  | 23,050
Total equity |  | 2,251,229 |  |  | 1,813,964
Total liabilities and equity |  | $ | 2,663,741 |  |  | $ | 2,242,399 |

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

|  | For the Nine Months Ended
(In thousands) |  | September 30, 2023 |  | September 24, 2022
Cash flows from operating activities |  |  |  |
Consolidated net income |  | $ | 490,353 |  |  | $ | 522,585 |
Reconciliation of consolidated net income to net cash provided by operating activities: |  |  |  |
Depreciation and amortization |  | 31,053 |  |  | 33,261 |
Stock-based compensation expense |  | 17,268 |  |  | 12,254 |
Provision for doubtful accounts receivable |  | (63) |  |  | 327 |
Loss (income) from unconsolidated affiliates |  | 2,682 |  |  | (6,026) |
Insurance proceeds - noncapital related |  | 9,854 |  |  | 1,646 |
Gain on disposals of properties |  | (106) |  |  | (7,107) |
Gain on sale of business |  | (4,137) |  |  | — |
Unrealized gain on short-term investments |  | (18,449) |  |  | — |
Impairment charges |  | 5,934 |  |  | — |
Gain on insurance settlement |  | (19,466) |  |  | — |
Deferred income tax expense |  | 3,803 |  |  | 226 |
Changes in assets and liabilities, net of effects of business sold: |  |  |  |
Receivables |  | (36,855) |  |  | 15,741 |
Inventories |  | 53,372 |  |  | (33,768) |
Other assets |  | (12,897) |  |  | (8,574) |
Current liabilities |  | (25,503) |  |  | (5,331) |
Other liabilities |  | (1,828) |  |  | (7,399) |
Other, net |  | 3,475 |  |  | (923) |
Net cash provided by operating activities |  | 498,490 |  |  | 516,912 |
Cash flows from investing activities |  |  |  |
Capital expenditures |  | (39,469) |  |  | (29,555) |
Investments in unconsolidated affiliates |  | (3,999) |  |  | — |
Insurance proceeds - capital related |  | 24,646 |  |  | 3,354 |
Purchase of short-term investments |  | (106,231) |  |  | — |
Proceeds from the maturity of short-term investments |  | 217,863 |  |  | — |
Proceeds from sales of properties |  | 214 |  |  | 7,841 |
Dividends from unconsolidated affiliates |  | 1,093 |  |  | 2,091 |
Net cash provided by (used in) investing activities |  | 94,117 |  |  | (16,269) |

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|  | For the Nine Months Ended
(In thousands) |  | September 30, 2023 |  | September 24, 2022
Cash flows from financing activities |  |  |  |
Dividends paid to stockholders of Mueller Industries, Inc. |  | (50,133) |  |  | (41,876) |
Repurchase of common stock |  | (19,303) |  |  | (38,054) |
Repayments of debt |  | (185) |  |  | (148) |
(Repayment) issuance of debt by consolidated joint ventures, net |  | (265) |  |  | 406 |
Net cash used to settle stock-based awards |  | (9,113) |  |  | (1,619) |
Net cash used in financing activities |  | (78,999) |  |  | (81,291) |
Effect of exchange rate changes on cash |  | 2,312 |  |  | (10,310) |
Increase in cash, cash equivalents, and restricted cash |  | 515,920 |  |  | 409,042 |
Cash, cash equivalents, and restricted cash at the beginning of the period |  | 465,296 |  |  | 90,376 |
Cash, cash equivalents, and restricted cash at the end of the period |  | $ | 981,216 |  |  | $ | 499,418 |

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