Exhibit 19.1 Mueller's First Quarter Earnings Per Share More Than Doubles Over Same Quarter Last Year To Our Stockholders, Customers, and Employees The first quarter of 2006 was Mueller's best first quarter ever. Net income was $33.4 million, or 90 cents per diluted share, compared with $15.2 million, or 41 cents per diluted share, for the same quarter last year. Sales for the first quarter of 2006 were $551.0 million, a 37 percent increase over sales of $401.7 million for the first quarter of 2005. The sales increase was largely due to the increased cost of copper, our principal raw material, which is reflected in the price of our finished products. The Comex average price of copper was $2.25 per pound in the first quarter of 2006 versus $1.47 per pound in the first quarter of 2005. Margins in our core product lines remained on a good track, which continued the positive trend reflected in the fourth quarter of last year. We also benefited from our operations in Europe and Asia, which performed well. We ended the first quarter with $83.2 million in cash on hand, despite additional funding of accounts receivables and inventories caused by continued rising raw material costs. The residential construction sector will likely slow in 2006; however, the number of housing starts will remain at the high end of historical levels. On the other hand, commercial construction activity has picked up and it appears that it will continue to grow in 2006. If this scenario develops, Mueller is well-positioned, as our commercial business significantly contributes to our results. Our Annual Stockholders' Meeting will be held at Mueller's headquarters in Memphis, Tennessee on May 4, 2006. We hope you can attend, but if you cannot, we urge you to sign and return your proxy card. Very Truly Yours, /s/Harvey L. Karp /s/William D. O'Hagan Harvey L. Karp William D. O'Hagan Chairman of the Board President and Chief Executive Officer April 25, 2006 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, market demand, pricing, and competitive and technological factors, among others, as set forth in the Company's SEC filings. -1- CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)
For the Quarter Ended April 1, 2006 April 2, 2005 (Unaudited) Net sales $ 551,039 $ 401,663 Cost of goods sold 457,069 334,024 Depreciation and amortization 10,195 10,078 Selling, general, and administrative expense 34,959 30,355 ---------- ---------- Operating income 48,816 27,206 Interest expense (4,862) (5,184) Other income, net 2,013 794 ---------- ---------- Income before taxes 45,967 22,816 Income tax expense (12,602) (7,608) ---------- ---------- Net income $ 33,365 $ 15,208 ========== ========== Basic earnings per share: Weighted average shares outstanding 36,691 36,505 ========== ========== Basic earnings per share $ 0.91 $ 0.42 ========== ========== Diluted earnings per share: Weighted average shares outstanding plus assumed conversions 37,081 37,151 ========== ========== Diluted earnings per share $ 0.90 $ 0.41 ========== ========== Dividends per share $ 0.10 $ 0.10 ========== ==========
-2- CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
April 1, 2006 December 31, 2005 (Unaudited) Assets Cash and cash equivalents $ 83,222 $ 129,685 Accounts receivable, net 302,944 248,395 Inventories 211,708 196,987 Other current assets 40,835 36,919 ---------- ---------- Total current assets 638,709 611,986 Property, plant, and equipment, net 313,974 307,046 Other assets 190,619 185,606 ---------- ---------- $ 1,143,302 $ 1,104,638 ========== ========== Liabilities and Stockholders' Equity Current portion of long-term debt $ 16,978 $ 4,120 Accounts payable 114,510 124,216 Other current liabilities 117,299 123,056 ---------- ---------- Total current liabilities 248,787 251,392 Long-term debt 310,287 312,070 Pension and postretirement liabilities 35,026 35,236 Environmental reserves 9,063 9,073 Deferred income taxes 59,916 63,944 Other noncurrent liabilities 3,011 3,078 ---------- ---------- Total liabilities 666,090 674,793 Minority interest in subsidiaries 19,564 6,937 Stockholders' equity 457,648 422,908 ---------- ---------- $ 1,143,302 $ 1,104,638 ========== ==========
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