UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal quarter ended March 29, 2003 Commission file number 1-6770 MUELLER INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 25-0790410 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 8285 TOURNAMENT DRIVE, SUITE 150 MEMPHIS, TENNESSEE 38125 (Address of principal executive offices) Registrant's telephone number, including area code: (901) 753-3200 Indicate by a check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /X/ No / / Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes /X/ No / / The number of shares of the Registrant's common stock outstanding as of April 28, 2003, was 34,262,984. -1- MUELLER INDUSTRIES, INC. FORM 10-Q For the Period Ended March 29, 2003 INDEX Part I. Financial Information Page Item 1. Financial Statements (Unaudited) a.) Consolidated Statements of Income for the quarters ended March 29, 2003 and March 30, 2002 3 b.) Consolidated Balance Sheets as of March 29, 2003 and December 28, 2002 5 c.) Consolidated Statements of Cash Flows for the quarters ended March 29, 2003 and March 30, 2002 7 d.) Notes to Consolidated Financial Statements 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 3. Quantitative and Qualitative Disclosure of Market Risk 14 Item 4. Controls and Procedures 14 Part II. Other Information Item 5. Other Information 14 Item 6. Exhibits and Reports on Form 8-K 15 Signatures 16 -2- PART I. FINANCIAL INFORMATION Item 1. Financial Statements MUELLER INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands, except per share data) Net sales $ 232,022 $ 249,053 Cost of goods sold 191,915 191,806 ---------- ---------- Gross profit 40,107 57,247 Depreciation and amortization 9,740 9,076 Selling, general, and administrative expense 23,296 21,981 ---------- ---------- Operating income 7,071 26,190 Interest expense (311) (493) Environmental expense (207) (175) Other income, net 557 1,626 ---------- ---------- Income from continuing operations before income taxes 7,110 27,148 Current income tax expense (1,867) (6,670) Deferred income tax expense (783) (2,613) ---------- ---------- Total income tax expense (2,650) (9,283) ---------- ---------- Income from continuing operations 4,460 17,865 (Loss) income from operation of discontinued operations, net of income taxes (539) 71 ---------- ---------- Net income $ 3,921 $ 17,936 ========== ========== See accompanying notes to consolidated financial statements.
-3- MUELLER INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (continued) (Unaudited)
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands, except per share data) Weighted average shares for basic earnings per share 34,257 33,506 Effect of dilutive stock options 2,514 3,823 ---------- ---------- Adjusted weighted average shares for diluted earnings per share 36,771 37,329 ---------- ---------- Basic earnings (loss) per share: From continuing operations $ 0.13 0.54 From discontinued operations (0.02) - ---------- ---------- Basic earnings per share $ 0.11 $ 0.54 ========== ========== Diluted earnings (loss) per share: From continuing operations $ 0.12 0.48 From discontinued operations (0.01) - ---------- ---------- Diluted earnings per share $ 0.11 $ 0.48 ========== ========== See accompanying notes to consolidated financial statements.
-4- MUELLER INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
March 29, 2003 December 28, 2002 (In thousands) Assets Current assets: Cash and cash equivalents $ 194,915 $ 217,601 Accounts receivable, less allowance for doubtful accounts of $5,234 in 2003 and $5,196 in 2002 142,397 132,427 Inventories: Raw material and supplies 25,205 22,692 Work-in-process 21,604 21,477 Finished goods 98,081 98,784 ---------- ---------- Total inventories 144,890 142,953 Other current assets 6,744 7,366 ---------- ---------- Total current assets 488,946 500,347 Property, plant, and equipment, net 348,356 352,469 Goodwill, net 105,638 105,551 Other assets 37,698 29,580 ---------- ---------- $ 980,638 $ 987,947 ========== ========== See accompanying notes to consolidated financial statements.
-5- MUELLER INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
March 29, 2003 December 28, 2002 (In thousands, except share data) Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 3,711 $ 4,161 Accounts payable 35,950 41,004 Accrued wages and other employee costs 20,689 26,199 Other current liabilities 34,891 34,987 ---------- ---------- Total current liabilities 95,241 106,351 Long-term debt 13,333 14,005 Pension and postretirement liabilities 33,451 35,550 Environmental reserves 9,311 9,110 Deferred income taxes 59,453 59,269 Other noncurrent liabilities 11,568 9,718 ---------- ---------- Total liabilities 222,357 234,003 ---------- ---------- Minority interest in subsidiaries 459 421 Stockholders' equity: Preferred stock - shares authorized 4,985,000; none outstanding - - Series A junior participating preferred stock - $1.00 par value; shares authorized 15,000; none outstanding - - Common stock - $.01 par value; shares authorized 100,000,000; issued 40,091,502; outstanding 34,257,419 in 2003 and in 2002 401 401 Additional paid-in capital, common 258,939 258,939 Retained earnings 614,035 610,114 Accumulated other comprehensive loss (20,755) (21,133) Treasury common stock, at cost (94,798) (94,798) ---------- ---------- Total stockholders' equity 757,822 753,523 Commitments and contingencies (Note 2) - - ---------- ---------- $ 980,638 $ 987,947 ========== ========== See accompanying notes to consolidated financial statements.
-6- MUELLER INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands) Cash flows from operating activities Net income from continuing operations $ 4,460 $ 17,865 Reconciliation of net income from continuing operations to net cash (used in) provided by operating activities: Depreciation and amortization 9,740 9,076 Income tax benefit from exercise of stock options - 2,245 Deferred income taxes 783 2,613 (Loss) gain on disposal of properties 212 (497) Minority interest in subsidiaries 38 - Changes in assets and liabilities: Receivables (13,518) (23,298) Inventories (2,904) 3,544 Other assets 1,261 (153) Current liabilities (4,644) 13,069 Other liabilities (1,534) (255) Other, net 62 923 ---------- ---------- Net cash (used in) provided by operating activities (6,044) 25,132 ---------- ---------- Cash flows from investing activities Capital expenditures (6,599) (8,511) Purchase of Conbraco Industries, Inc. common stock (10,806) - Proceeds from sales of properties 27 552 Escrowed IRB proceeds 449 539 ---------- ---------- Net cash used in investing activities (16,929) (7,420) ---------- ---------- Cash flows from financing activities Acquisition of treasury stock - (2,283) Repayments of long-term debt (1,122) (31,032) Proceeds from the sale of treasury stock - 756 ---------- ---------- Net cash used in financing activities (1,122) (32,559) ---------- ---------- See accompanying notes to consolidated financial statements.
-7- MUELLER INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited)
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands) Effect of exchange rate changes on cash $ 1,157 $ (45) ---------- ---------- Decrease in cash and cash equivalents (22,938) (14,892) Cash provided by discontinued operations 252 440 Cash and cash equivalents at the beginning of the period 217,601 121,862 ---------- ---------- Cash and cash equivalents at the end of the period $ 194,915 $ 107,410 ========== ========== See accompanying notes to consolidated financial statements.
-8- MUELLER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) General Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. Results of operations for the interim periods presented are not necessarily indicative of results which may be expected for any other interim period or for the year as a whole. This quarterly report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K, including the annual financial statements incorporated therein by reference. The accompanying unaudited interim financial statements include all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Certain amounts in the Consolidated Financial Statements have been reclassified to conform to the 2003 presentation. Note 1 - Earnings Per Common Share Basic per share amounts have been computed based on the average number of common shares outstanding. Diluted per share amounts reflect the increase in average common shares outstanding that would result from the assumed exercise of outstanding stock options, computed using the treasury stock method. Note 2 - Commitments and Contingencies The Company is subject to normal environmental standards imposed by federal, state, local, and foreign environmental laws and regulations. Based upon information currently available, management believes that the outcome of pending environmental matters will not materially affect the overall financial position and results of operations of the Company. In addition, the Company is involved in certain litigation as either plaintiff or defendant as a result of claims that arise in the ordinary course of business which management believes will not have a material effect on the Company's financial condition or results of operations. The Company has guarantees which are letters of credit issued by the Company generally to guarantee the payment of insurance deductibles and retiree health benefits. The terms of the Company's guarantees are generally one year but are renewable annually as required. The maximum potential amount of future payments the Company could be required to make under its guarantees at March 29, 2003 is $6.6 million. -9- Note 3 - Industry Segments Summarized segment information is as follows:
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands) Net sales: Standard Products Division $ 159,380 $ 180,098 Industrial Products Division 74,947 69,987 Elimination of intersegment sales (2,305) (1,032) ---------- ---------- $ 232,022 $ 249,053 ========== ========== Operating income: Standard Products Division $ 7,081 $ 25,158 Industrial Products Division 4,051 5,668 Unallocated expenses (4,061) (4,636) ---------- ---------- $ 7,071 $ 26,190 ========== ==========
Note 4 - Comprehensive Income Comprehensive income is as follows:
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands) Comprehensive income: Net income $ 3,921 $ 17,936 Other comprehensive income (loss): Cumulative translation adjustments 350 (825) Minimum pension liability adjustment - 2,907 Change in the fair value of derivatives 28 1,190 ---------- ---------- $ 4,299 $ 21,208 ========== ==========
-10- Note 5 - Stock-Based Compensation The Company accounts for its stock-based compensation plans using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related Interpretations. No stock-based employee compensation expense is reflected in net income because the exercise price of the Company's incentive employee stock options equals the market price of the underlying stock on the date of grant. The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards No. 123, "Accounting for Stock- Based Compensation" (SFAS No. 123), to stock-based employee compensation.
For the Quarter Ended March 29, 2003 March 30, 2002 (In thousands, except per share data) Net income $ 3,921 $ 17,936 SFAS No. 123 pro forma compensation expense, net of income taxes (443) (616) ---------- ---------- SFAS No. 123 pro forma net income $ 3,478 $ 17,320 ========== ========== Pro forma earnings per share: Basic $ 0.10 $ 0.52 Diluted $ 0.09 $ 0.46 Earnings per share, as reported: Basic $ 0.11 $ 0.54 Diluted $ 0.11 $ 0.48
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations General Overview Mueller Industries, Inc. is a leading manufacturer of copper tube and fittings; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products. Mueller's operations are located throughout the United States, and in Canada, Mexico, and Great Britain. The Company's businesses are managed and organized into two segments: Standard Products Division ("SPD") and Industrial Products Division ("IPD"). SPD manufactures and sells copper tube, copper and plastic fittings, and valves. Outside of the United States, SPD manufactures and sells copper tube in Europe. SPD sells these products to wholesalers in the HVAC (heating, ventilation, and air-conditioning), plumbing, and refrigeration markets, to -11- distributors to the manufactured housing and recreational vehicle industries, and to building material retailers. IPD manufactures and sells brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; refrigeration valves and fittings; fabricated tubular products; and gas valves and assemblies. IPD sells its products primarily to original equipment manufacturers ("OEMs"), many of which are in the HVAC, plumbing, and refrigeration markets. SPD and IPD account 100 percent of consolidated net sales and more than 77 percent of consolidated total assets. New housing starts and commercial construction are important determinants of the Company's sales to the HVAC, refrigeration and plumbing markets because the principal end use of a significant portion of the Company's products is in the construction of single and multi-family housing and commercial buildings. Profitability of certain of the Company's product lines depends upon the "spreads" between the cost of raw material and the selling prices of its completed products. The open market prices for copper cathode and scrap, for example, influence the selling price of copper tubing, a principal product manufactured by the Company. The Company attempts to minimize the effects of fluctuations in material costs by passing through these costs to its customers. Spreads fluctuate based upon market conditions. Results of Operations Net income was $3.9 million, or 11 cents per diluted share, for the first quarter of 2003, which compares with net income of $17.9 million, or 48 cents per diluted share, for the same period of 2002. During the first quarter of 2003, the Company's net sales were $232.0 million compared with net sales of $249.1 million over the same period of 2002. Pounds shipped totaled 166.6 million in the current period compared with shipments of 181.5 million in the first quarter of 2002. This decline in volume as well as decreased selling prices in certain product lines resulted in the reduction in net sales. Cost of goods sold increased from $191.8 million in the first quarter of 2002 to $191.9 million in the same period of 2003. This increase is attributable to increases in raw material costs, primarily copper, partially offset by reductions in conversion costs. The COMEX average copper price in the first quarter of 2003 was approximately six percent greater than in the same period of 2002. Depreciation and amortization expense increased to $9.7 million for the first quarter of 2003 compared with $9.1 million during the first quarter of 2002. The increase was due primarily to businesses acquired in the second half of 2002. Selling, general, and administrative expense was $23.3 million for the first quarter of 2003 compared with $22.0 million for the same period of 2002. This increase relates primarily to components of the Company's pension cost, including interest cost, expected return on plan assets, and amortization of plan gains and losses, and increased professional fees. Interest expense in the first quarter of 2003 totaled $0.3 million, which was $0.2 million less than the first quarter of 2002. This decrease was due to lower funded balances in 2003. No interest was capitalized during the first quarter of 2003 or during the first quarter of 2002. -12- The Company's effective income tax rate for the first quarter of 2003 was 37.3 percent compared with 34.2 percent for the first quarter of last year. During 2002, the Company sold its wholly owned subsidiary, Utah Railway Company, and initiated steps to sell or liquidate its French manufacturing operations, Mueller Europe S.A. The operations and cash flows of these two businesses have been eliminated from the ongoing operations of the Company, and are reported as discontinued operations. On March 3, 2003, Mueller Europe S.A. filed a petition for liquidation with the Commercial Court of Provins Province, France and, on March 4, the Court declared the entity to be in liquidation. The disposition of remaining assets and obligations of Mueller Europe S.A. is under the jurisdiction of the Court. In the first quarter of 2003 the Company recognized operating losses from discontinued operations incurred by Mueller Europe S.A. for the period the business operated. Liquidity and Capital Resources Cash used in operating activities in the first quarter of 2003 totaled $6.0 million, which is primarily attributable to increased receivables, increased inventories, and decreased liabilities, partially offset by net income from continuing operations and depreciation and amortization. Fluctuations in the cost of copper and other raw materials affect the Company's liquidity. Changes in material costs directly impact components of working capital, primarily inventories and accounts receivable. During the first quarter of 2003, the Company used $16.9 million for investing activities, consisting primarily of $10.8 million for the purchase of Conbraco Industries, Inc common stock, plus $6.6 million for capital expenditures. The Company also used $1.1 million for financing activities during the quarter, consisting of repayments of long-term debt. Existing cash balances and escrowed IRB proceeds were used to fund the first quarter investing and financing activities. During 1999, the Company's Board of Directors authorized the repurchase of up to four million shares of the Company's common stock through open market transactions or through privately negotiated transactions. This authorization was expanded to repurchase up to a total of ten million shares, and has been extended through October 2003. The Company has no obligation to purchase any shares and may cancel, suspend, or extend the time period for the purchase of shares at any time. The purchases will be funded primarily through existing cash and cash from operations. The Company may hold such shares in treasury or use a portion of the repurchased shares for employee benefit plans, as well as for other corporate purposes. Through March 29, 2003, the Company has repurchased approximately 2.4 million shares under this authorization. The Company has an unsecured $200 million revolving credit facility (the Credit Facility), which matures in November 2003. At March 29, 2003, there were no outstanding borrowings under the Credit Facility. Borrowings under the Credit Facility bear interest, at the Company's option, at (i) LIBOR plus a variable premium or (ii) the larger of Prime, or the Federal Funds rate plus .50 percent. LIBOR advances may be based upon the one, two, three, or -13- six-month LIBOR. The variable premium over LIBOR is based on certain financial ratios, and can range from 25 to 40 basis points. Additionally, a facility fee is payable quarterly on the total commitment and varies from 12.5 to 22.5 basis points based upon the Company's capitalization ratios. When funded debt is 50 percent or more of the commitment, a utilization fee is payable quarterly on the average loan balance outstanding and varies from 0 to 20 basis points based upon the capitalization ratio. Availability of funds under the Credit Facility is reduced by the amount of certain outstanding letters of credit, which totaled approximately $6.6 million at March 29, 2003. Under the above Agreement the Company is required, among other things, to maintain certain minimum levels of net worth and meet certain minimum financial ratios. The Company is in compliance with all debt covenants. The Company expects to invest between $30 and $35 million for capital projects during 2003. Management believes that cash provided by operations and currently available cash of $194.9 million will be adequate to meet the Company's normal future capital expenditure and operational needs. The Company's current ratio is 5.1 to 1 at March 29, 2003. Item 3. Quantitative and Qualitative Disclosure of Market Risk Quantitative and qualitative disclosures about market risk are incorporated herein by reference to Part II, Item 7A, of the Company's Report on Form 10-K for the year ended December 28, 2002. Item 4. Controls and Procedures An evaluation was performed, under the supervision and with the participation of the Company's management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company's disclosure controls and procedures, within 90 days before the filing date of this quarterly report. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company's periodic SEC filings. There have been no significant changes in the Company's internal controls or in other factors that could significantly affect internal controls subsequent to their evaluation. Part II. Other Information Item 5. Other Information The Company is aware of investigations of competition in markets in which it participates, or has participated in the past, in Europe, Canada, and the United States. No charges or allegations have been filed against the Company, which is cooperating with the investigations. The Company does not anticipate any material adverse effect on its business or financial condition as a result of the investigations. -14- Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 19.1 Mueller Industries, Inc.'s Quarterly Report to Stockholders for the quarter ended March 29, 2003. Such report is being furnished for the information of the Securities and Exchange Commission only and is not to be deemed filed as part of this Quarterly Report on Form 10-Q. 99.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 99.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (b) During the quarter ended March 29, 2003, the Registrant filed one Current Report on Form 8-K dated February 27, 2003, providing its quarterly statements of operations for 2002 and 2001, reclassified to conform to the current presentation. Items 1, 2, 3, and 4 are not applicable and have been omitted. -15- SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 29, 2003. MUELLER INDUSTRIES, INC. /s/ Kent A. McKee Kent A. McKee Vice President and Chief Financial Officer /s/ Richard W. Corman Richard W. Corman Corporate Controller -16- CERTIFICATION I, William D. O'Hagan, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Mueller Industries, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and -17- 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date April 29, 2003 /s/ William D. O'Hagan Chief Executive Officer -18- CERTIFICATION I, Kent A. McKee, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Mueller Industries, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and -19- 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date April 29, 2003 /s/ Kent a. McKee Vice President - Chief Financial Officer -20- EXHIBIT INDEX Exhibits Description 19.1 Mueller Industries, Inc.'s Quarterly Report to Stockholders for the quarter ended March 29, 2003. Such report is being furnished for the information of the Securities and Exchange Commission only and is not to be deemed filed as part of this Quarterly Report on Form 10-Q. 99.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 99.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 -21-