Exhibit 19.1 TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES Mueller's income from continuing operations for the third quarter was $21.0 million, or 57 cents per diluted share, which compares with $18.8 million, or 51 cents per diluted share, for the third quarter of fiscal 2004. Year-to-date, the Company earned $53.4 million from continuing operations, or $1.44 per diluted share compared with $63.8 million, or $1.73 per diluted share, for the first nine months of 2004. The current period includes approximately $4.8 million of interest expense (approximately 9 cents per diluted share net of tax) related primarily to the Subordinated Debentures issued in the fourth quarter of 2004. Net sales for the three months ended October 1, 2005 were $434.1 million, compared with net sales of $322.5 million for the third quarter of 2004. For the first nine months of 2005 net sales were $1.25 billion compared with net sales of $1.05 billion in 2004. The increase in third quarter sales was attributable to increased volumes as well as increased prices as a result of higher raw material costs. We continued to realize solid results from our copper and plastic fittings businesses and earnings were benefited by businesses acquired during the latter half of 2004. During the third quarter of 2005 we settled a business interruption claim related to operations sold in 2002. This $3.3 million after-tax gain was classified as discontinued operations. Mueller's financial position remains sound. We ended the quarter with $108.0 million of cash on hand. Also, the Company declared and paid its regular quarterly cash dividend of ten cents per common share during the third quarter. Over the next twelve months we believe the housing industry will be adjusting to higher prices, higher mortgage rates, and more restrictive lending standards. This may result in a modest decline in housing starts, but overall, starts for 2006 will likely remain at the high end of historical levels. At the same time, non-housing construction activity is trending upward and this is an important sector for Mueller's business. Sincerely, /s/Harvey L. Karp Harvey L. Karp Chairman of the Board /s/William D. O'Hagan William D. O'Hagan President and Chief Executive Officer October 21, 2005 -1- 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. These filings are available through our website at www.muellerindustries.com. -2- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)
For the Quarter Ended October 1, 2005 September 25, 2004 (Unaudited) Net sales $ 434,130 $ 322,512 Cost of goods sold 360,514 263,188 Depreciation and amortization 10,082 10,278 Selling, general, and administrative expense 33,297 24,529 Impairment charge - - ---------- ---------- Operating income 30,237 24,517 Interest expense (4,794) (236) Other income, net 5,421 1,357 ---------- ---------- Income from continuing operations before income taxes 30,864 25,638 Income tax expense (9,848) (6,884) ---------- ---------- Income from continuing operations 21,016 18,754 Discontinued operations, net of tax 3,324 - ---------- ---------- Net income $ 24,340 $ 18,754 =========== ==========
-3- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (continued) (In thousands, except per share data)
For the Quarter Ended October 1, 2005 September 25, 2004 (Unaudited) Basic earnings per share: Weighted average shares outstanding 36,625 35,283 =========== ========== From continuing operations $ 0.57 $ 0.53 From discontinued operations 0.09 - ----------- ---------- Basic earnings per share $ 0.66 $ 0.53 =========== ========== Diluted earnings per share: Weighted average shares outstanding plus assumed conversions 37,120 36,914 =========== ========== From continuing operations $ 0.57 $ 0.51 From discontinued operations 0.09 - ----------- ---------- Diluted earnings per share $ 0.66 $ 0.51 =========== ========== Dividends per share $ 0.10 $ 0.10 =========== ==========
-4- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (continued) (In thousands, except per share data)
For the Nine Months Ended October 1, 2005 September 25, 2004 (Unaudited) Net sales $ 1,246,299 $ 1,049,293 Cost of goods sold 1,040,201 847,937 Depreciation and amortization 30,571 30,402 Selling, general, and administrative expense 92,788 79,410 Impairment charge - 3,941 ---------- ---------- Operating income 82,739 87,603 Interest expense (14,730) (659) Other income, net 10,188 5,161 ---------- ---------- Income from continuing operations before income taxes 78,197 92,105 Income tax expense (24,790) (28,343) ---------- ---------- Income from continuing operations 53,407 63,762 Discontinued operations, net of tax 3,324 - ---------- ---------- Net income $ 56,731 $ 63,762 ========== ==========
-5- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (continued) (In thousands, except per share data)
For the Nine Months Ended October 1, 2005 September 25, 2004 (Unaudited) Basic earnings per share: Weighted average shares outstanding 36,576 34,973 =========== ========== From continuing operations $ 1.46 $ 1.82 From discontinued operations 0.09 - ----------- ---------- Basic earnings per share $ 1.55 $ 1.82 =========== ========== Diluted earnings per share: Weighted average shares outstanding plus assumed conversions 37,112 36,905 =========== ========== From continuing operations $ 1.44 $ 1.73 From discontinued operations 0.09 - ----------- ---------- Diluted earnings per share $ 1.53 $ 1.73 =========== ========== Dividends per share $ 0.30 $ 0.30 =========== ==========
-6- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
October 1, 2005 December 25, 2004 (Unaudited) Assets Cash and cash equivalents $ 108,012 $ 47,449 Accounts receivable, net 251,406 201,396 Inventories 183,205 187,853 Other current assets 19,985 18,633 ---------- ---------- Total current assets 562,608 455,331 Property, plant, and equipment, net 309,962 335,610 Other assets 188,916 172,790 ---------- ---------- $ 1,061,486 $ 963,731 ========== ========== Liabilities and Stockholders' Equity Current portion of long-term debt $ 887 $ 5,328 Accounts payable 117,282 79,723 Other current liabilities 117,922 95,767 ---------- ---------- Total current liabilities 236,091 180,818 Long-term debt 312,940 310,650 Pension and postretirement liabilities 32,272 33,167 Environmental reserves 9,183 9,503 Deferred income taxes 64,033 67,479 Other noncurrent liabilities 10,122 10,361 ---------- ---------- Total liabilities 664,641 611,978 Minority interest in subsidiaries 74 67 Stockholders' equity 396,771 351,686 ---------- ---------- $ 1,061,486 $ 963,731 ========== ==========
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