Mueller Industries, Inc. Reports First Quarter 2024 Earnings
COLLIERVILLE, Tenn.--(BUSINESS WIRE)-- Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2024. Comparisons are to the first quarter of 2023.
- Net Income of $138.4 million versus $173.2 million
- Earnings Before Taxes of $201.6 million versus $237.4 million
- Net Sales of $849.7 million versus $971.2 million
- Diluted EPS* of $1.21 versus $1.54
(*adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023)
First Quarter Financial and Operating Highlights:
- COMEX copper averaged $3.86 per pound during the quarter, 5.6% lower than in the first quarter of 2023.
- The decrease in net sales was attributable to lower demand for our products that are primarily consumed in residential building, as well as lower selling prices as a result of the lower copper prices.
- We recorded a $10.3 million loss on our investment in Tecumseh Products Company, largely driven by restructuring charges in its international operations.
- Net cash generated from operations was $173.6 million, and our cash balance was $1.36 billion at quarter end.
- Our current ratio was 6.0 to 1.
Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “The first quarter of 2023 represented the tail end of the period of robust demand we experienced stemming from the market’s overreaction to the 2022 supply chain crisis. Given this normalization of demand, as well as the effects persistent inflation and high interest rates have had on business conditions, our 2024 first quarter performance was in line with our expectations. The rationalization actions we took in 2023 had their intended impact and contributed to the sustained margins.”
Regarding the outlook, Mr. Christopher continued, “As reported in our annual report, our long-term outlook for our business remains positive and we are well positioned for the expected rebound in demand. Additionally, we anticipate another strong year of cash flow from operations. Our capital allocation priorities remain reinvestment in our operations to be a low cost producer and growth through acquisition. As previously reported, we are excited to complete our acquisition of Nehring Electrical Works, and look forward to capitalizing on the strong growth and expansion platform it will provide to us in the critical electrical transmission infrastructure market.”
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.
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MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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For the Quarter Ended |
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(In thousands, except per share data) |
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March 30,
|
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April 1,
|
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|
|
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Net sales |
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$ |
849,654 |
|
|
$ |
971,192 |
|
|
|
|
|
|
|
||||
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Cost of goods sold |
|
|
608,703 |
|
|
|
678,798 |
|
|
Depreciation and amortization |
|
|
9,169 |
|
|
|
10,657 |
|
|
Selling, general, and administrative expense |
|
|
48,357 |
|
|
|
52,631 |
|
|
|
|
|
|
|
||||
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Operating income |
|
|
183,425 |
|
|
|
229,106 |
|
|
|
|
|
|
|
||||
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Interest expense |
|
|
(115 |
) |
|
|
(143 |
) |
|
Interest income |
|
|
17,245 |
|
|
|
6,235 |
|
|
Realized gains on short-term investments |
|
|
365 |
|
|
|
1,910 |
|
|
Other income, net |
|
|
630 |
|
|
|
326 |
|
|
|
|
|
|
|
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Income before income taxes |
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|
201,550 |
|
|
|
237,434 |
|
|
|
|
|
|
|
||||
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Income tax expense |
|
|
(51,834 |
) |
|
|
(61,357 |
) |
|
Loss from unconsolidated affiliates, net of foreign tax |
|
|
(8,007 |
) |
|
|
(984 |
) |
|
|
|
|
|
|
||||
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Consolidated net income |
|
|
141,709 |
|
|
|
175,093 |
|
|
|
|
|
|
|
||||
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Net income attributable to noncontrolling interests |
|
|
(3,346 |
) |
|
|
(1,854 |
) |
|
|
|
|
|
|
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Net income attributable to Mueller Industries, Inc. |
|
$ |
138,363 |
|
|
$ |
173,239 |
|
|
|
|
|
|
|
||||
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Weighted average shares for basic earnings per share (1) |
|
|
111,416 |
|
|
|
111,386 |
|
|
Effect of dilutive stock-based awards (1) |
|
|
2,729 |
|
|
|
1414 |
|
|
|
|
|
|
|
||||
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Adjusted weighted average shares for diluted earnings per share (1) |
|
|
114,145 |
|
|
|
112,800 |
|
|
|
|
|
|
|
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Basic earnings per share (1) |
|
$ |
1.24 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
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Diluted earnings per share (1) |
|
$ |
1.21 |
|
|
$ |
1.54 |
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|
|
|
|
|
|
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Dividends per share (1) |
|
$ |
0.20 |
|
|
$ |
0.15 |
|
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|
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|
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(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023. |
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MUELLER INDUSTRIES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED |
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(Unaudited) |
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|
|
|
|
||||
|
|
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For the Quarter Ended |
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(In thousands) |
|
March 30,
|
|
April 1,
|
||||
|
|
|
|
|
|
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Summary Segment Data: |
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|
|
|
|
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|
||||
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Net sales: |
|
|
|
|
||||
|
Piping Systems Segment |
|
$ |
590,168 |
|
|
$ |
662,479 |
|
|
Industrial Metals Segment |
|
|
156,067 |
|
|
|
165,234 |
|
|
Climate Segment |
|
|
116,810 |
|
|
|
152,954 |
|
|
Elimination of intersegment sales |
|
|
(13,391 |
) |
|
|
(9,475 |
) |
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
849,654 |
|
|
$ |
971,192 |
|
|
|
|
|
|
|
||||
|
Operating income: |
|
|
|
|
||||
|
Piping Systems Segment |
|
$ |
142,680 |
|
|
$ |
163,854 |
|
|
Industrial Metals Segment |
|
|
24,271 |
|
|
|
27,215 |
|
|
Climate Segment |
|
|
32,575 |
|
|
|
53,988 |
|
|
Unallocated income (expenses) |
|
|
(16,101 |
) |
|
|
(15,951 |
) |
|
|
|
|
|
|
||||
|
Operating income |
|
$ |
183,425 |
|
|
$ |
229,106 |
|
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MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
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|
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(Unaudited) |
|
|
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(In thousands) |
|
March 30,
|
|
December 30,
|
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|
ASSETS |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,357,952 |
|
$ |
1,170,893 |
|
Short-term investments |
|
|
— |
|
|
98,146 |
|
Accounts receivable, net |
|
|
424,406 |
|
|
351,561 |
|
Inventories |
|
|
356,869 |
|
|
380,248 |
|
Other current assets |
|
|
45,379 |
|
|
39,173 |
|
|
|
|
|
|
||
|
Total current assets |
|
|
2,184,606 |
|
|
2,040,021 |
|
|
|
|
|
|
||
|
Property, plant, and equipment, net |
|
|
390,517 |
|
|
385,165 |
|
Operating lease right-of-use assets |
|
|
33,819 |
|
|
35,170 |
|
Other assets |
|
|
285,300 |
|
|
298,945 |
|
|
|
|
|
|
||
|
Total assets |
|
$ |
2,894,242 |
|
$ |
2,759,301 |
|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||
|
Current portion of debt |
|
$ |
705 |
|
$ |
796 |
|
Accounts payable |
|
|
160,133 |
|
|
120,485 |
|
Current portion of operating lease liabilities |
|
|
8,072 |
|
|
7,893 |
|
Other current liabilities |
|
|
192,371 |
|
|
187,964 |
|
|
|
|
|
|
||
|
Total current liabilities |
|
|
361,281 |
|
|
317,138 |
|
|
|
|
|
|
||
|
Long-term debt |
|
|
130 |
|
|
185 |
|
Pension and postretirement liabilities |
|
|
11,361 |
|
|
12,062 |
|
Environmental reserves |
|
|
14,919 |
|
|
15,030 |
|
Deferred income taxes |
|
|
22,687 |
|
|
19,134 |
|
Noncurrent operating lease liabilities |
|
|
25,451 |
|
|
26,683 |
|
Other noncurrent liabilities |
|
|
10,043 |
|
|
10,353 |
|
|
|
|
|
|
||
|
Total liabilities |
|
|
445,872 |
|
|
400,585 |
|
|
|
|
|
|
||
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Total Mueller Industries, Inc. stockholders’ equity |
|
|
2,424,374 |
|
|
2,337,445 |
|
Noncontrolling interests |
|
|
23,996 |
|
|
21,271 |
|
|
|
|
|
|
||
|
Total equity |
|
|
2,448,370 |
|
|
2,358,716 |
|
|
|
|
|
|
||
|
Total liabilities and equity |
|
$ |
2,894,242 |
|
$ |
2,759,301 |
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MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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|
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For the Quarter Ended |
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(In thousands) |
|
March 30,
|
|
April 1,
|
||||
|
|
|
|
|
|
||||
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Cash flows from operating activities |
|
|
|
|
||||
|
Consolidated net income |
|
$ |
141,709 |
|
|
$ |
175,093 |
|
|
Reconciliation of consolidated net income to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
9,250 |
|
|
|
10,746 |
|
|
Stock-based compensation expense |
|
|
6,231 |
|
|
|
5,637 |
|
|
Provision for doubtful accounts receivable |
|
|
1 |
|
|
|
(15 |
) |
|
Loss from unconsolidated affiliates |
|
|
8,007 |
|
|
|
984 |
|
|
Dividends from unconsolidated affiliates |
|
|
2,024 |
|
|
|
— |
|
|
Insurance proceeds - noncapital related |
|
|
15,000 |
|
|
|
— |
|
|
Gain on disposals of properties |
|
|
(1,567 |
) |
|
|
(115 |
) |
|
Gain on sales of securities |
|
|
(365 |
) |
|
|
— |
|
|
Deferred income tax expense |
|
|
940 |
|
|
|
372 |
|
|
Changes in assets and liabilities, net of effects of business sold: |
|
|
|
|
||||
|
Receivables |
|
|
(75,200 |
) |
|
|
(111,547 |
) |
|
Inventories |
|
|
22,502 |
|
|
|
(581 |
) |
|
Other assets |
|
|
11,984 |
|
|
|
(17,950 |
) |
|
Current liabilities |
|
|
33,948 |
|
|
|
50,842 |
|
|
Other liabilities |
|
|
(907 |
) |
|
|
(2,275 |
) |
|
Other, net |
|
|
68 |
|
|
|
427 |
|
|
|
|
|
|
|
||||
|
Net cash provided by operating activities |
|
$ |
173,625 |
|
|
$ |
111,618 |
|
|
|
|
|
|
|
||||
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Cash flows from investing activities |
|
|
|
|
||||
|
Capital expenditures |
|
$ |
(16,406 |
) |
|
$ |
(7,556 |
) |
|
Insurance proceeds - capital related |
|
|
— |
|
|
|
8,000 |
|
|
Purchase of short-term investments |
|
|
— |
|
|
|
50,000 |
|
|
Proceeds from the sale of securities |
|
|
96,465 |
|
|
|
— |
|
|
Issuance of notes receivable |
|
|
(12,500 |
) |
|
|
— |
|
|
Proceeds from sales of properties |
|
|
2,878 |
|
|
|
118 |
|
|
Dividends from unconsolidated affiliates |
|
|
— |
|
|
|
644 |
|
|
|
|
|
|
|
||||
|
Net cash provided by investing activities |
|
$ |
70,437 |
|
|
$ |
51,206 |
|
|
|
|
|
|
|
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|
|
|
|
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|
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MUELLER INDUSTRIES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
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|
|
|
|
|
||||
|
|
|
For the Quarter Ended |
||||||
|
(In thousands) |
|
March 30,
|
|
April 1,
|
||||
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Dividends paid to stockholders of Mueller Industries, Inc. |
|
$ |
(22,255 |
) |
|
$ |
(16,729 |
) |
|
Repurchase of common stock |
|
|
(27,930 |
) |
|
|
— |
|
|
Repayments of debt |
|
|
(56 |
) |
|
|
(56 |
) |
|
(Repayment) issuance of debt by consolidated joint ventures, net |
|
|
(77 |
) |
|
|
297 |
|
|
Net cash used to settle stock-based awards |
|
|
(2,489 |
) |
|
|
(2,611 |
) |
|
|
|
|
|
|
||||
|
Net cash used in financing activities |
|
$ |
(52,807 |
) |
|
$ |
(19,099 |
) |
|
|
|
|
|
|
||||
|
Effect of exchange rate changes on cash |
|
|
(670 |
) |
|
|
2,573 |
|
|
|
|
|
|
|
||||
|
Increase in cash, cash equivalents, and restricted cash |
|
|
190,585 |
|
|
|
146,298 |
|
|
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 |
|
$ |
1,364,808 |
|
|
$ |
611,594 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240422090496/en/
Jeffrey A. Martin
(901) 753-3226
Source: Mueller Industries, Inc.
Released April 23, 2024