Mueller Industries, Inc. Reports Third Quarter 2023 Earnings
COLLIERVILLE, Tenn.--(BUSINESS WIRE)-- 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.”
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 Nine Months Ended |
||||||||||||
|
(In thousands, except per share data) |
|
September 30,
|
|
September 24,
|
|
September 30,
|
|
September 24,
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
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. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
MUELLER INDUSTRIES, INC. |
||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
For the Quarter Ended |
|
For the Nine Months Ended |
||||||||||||
|
(In thousands) |
|
September 30,
|
|
September 24,
|
|
September 30,
|
|
September 24,
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
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 |
|
|
MUELLER INDUSTRIES, INC. |
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
|
|
|
|
||
|
|
|
(Unaudited) |
|
|
||
|
(In thousands) |
|
September 30,
|
|
December 31,
|
||
|
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 |
|
MUELLER INDUSTRIES, INC. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
||||||
|
|
|
For the Nine Months Ended |
||||||
|
(In thousands) |
|
September 30,
|
|
September 24,
|
||||
|
|
|
|
|
|
||||
|
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 |
) |
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
MUELLER INDUSTRIES, INC. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
For the Nine Months Ended |
||||||
|
(In thousands) |
|
September 30,
|
|
September 24,
|
||||
|
|
|
|
|
|
||||
|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231024611303/en/
Jeffrey A. Martin
(901) 753-3226
Source: Mueller Industries, Inc.
Released October 24, 2023