For
the quarterly period ended June 27, 2009
|
Commission
file number 1–6770
|
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)
|
(Zip
Code)
|
Large
accelerated filer x
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
Page
Number
|
||
3
|
||
4
|
||
5
|
||
6
|
||
18
|
||
23
|
||
24
|
||
25
|
||
29
|
||
30
|
||
30
|
||
31
|
For
the Quarter Ended
|
For
the Six Months Ended
|
|||||||||||||||
June
27, 2009
|
June
28, 2008
|
June
27, 2009
|
June
28, 2008
|
|||||||||||||
(In
thousands, except per share data)
|
||||||||||||||||
Net
sales
|
$
|
367,800
|
$
|
753,471
|
$
|
694,358
|
$
|
1,457,579
|
||||||||
Cost
of goods sold
|
313,353
|
661,209
|
600,736
|
1,273,006
|
||||||||||||
Depreciation
and amortization
|
10,355
|
11,004
|
20,835
|
21,988
|
||||||||||||
Selling,
general, and administrative expense
|
30,316
|
34,618
|
61,474
|
72,909
|
||||||||||||
Operating
income
|
13,776
|
46,640
|
11,313
|
89,676
|
||||||||||||
Interest
expense
|
(2,482
|
)
|
(5,238
|
)
|
(5,118
|
)
|
(10,705
|
)
|
||||||||
Other
income, net
|
385
|
1,961
|
1,012
|
6,530
|
||||||||||||
Income
before income taxes
|
11,679
|
43,363
|
7,207
|
85,501
|
||||||||||||
Income
tax expense
|
(5,512
|
)
|
(15,339
|
)
|
(3,550
|
)
|
(29,570
|
)
|
||||||||
Consolidated
net income
|
6,167
|
28,024
|
3,657
|
55,931
|
||||||||||||
Less:
net income attributable to noncontrolling interest
|
(139
|
)
|
(1,010
|
)
|
(121
|
)
|
(1,562
|
)
|
||||||||
Net
income attributable to Mueller Industries, Inc.
|
$
|
6,028
|
$
|
27,014
|
$
|
3,536
|
$
|
54,369
|
||||||||
Weighted
average shares for basic earnings per share
|
37,143
|
37,119
|
37,143
|
37,108
|
||||||||||||
Effect
of dilutive stock options
|
120
|
340
|
97
|
269
|
||||||||||||
Adjusted
weighted average shares for diluted earnings per share
|
37,263
|
37,459
|
37,240
|
37,377
|
||||||||||||
Basic
earnings per share
|
$
|
0.16
|
$
|
0.73
|
$
|
0.10
|
$
|
1.47
|
||||||||
Diluted
earnings per share
|
$
|
0.16
|
$
|
0.72
|
$
|
0.09
|
$
|
1.45
|
||||||||
Dividends
per share
|
$
|
0.10
|
$
|
0.10
|
$
|
0.20
|
$
|
0.20
|
||||||||
See
accompanying notes to condensed consolidated financial
statements.
|
June
27, 2009
|
December
27, 2008
|
|||||||
(In
thousands, except share data)
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash and cash equivalents | $ |
333,959
|
$ |
278,860
|
||||
Accounts receivable, less allowance of doubtful accounts of $6,904
in 2009 and $6,690 in 2008
|
207,238
|
219,035
|
||||||
Inventories
|
169,118
|
210,609
|
||||||
Other
current assets
|
32,033
|
46,322
|
||||||
Total current assets
|
742,348
|
754,826
|
||||||
Property,
plant, and equipment, net
|
268,017
|
276,927
|
||||||
Other
assets
|
151,537
|
151,160
|
||||||
Total
Assets
|
$
|
1,161,902
|
$
|
1,182,913
|
||||
Liabilities
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of debt
|
$
|
9,629
|
$
|
24,184
|
||||
Accounts
payable
|
59,871
|
63,732
|
||||||
Accrued
wages and other employee costs
|
26,756
|
35,079
|
||||||
Other
current liabilities
|
64,922
|
78,589
|
||||||
Total
current liabilities
|
161,178
|
201,584
|
||||||
Long-term
debt, less current portion
|
158,226
|
158,726
|
||||||
Pension
and postretirement liabilities
|
39,688
|
38,452
|
||||||
Environmental
reserves
|
23,352
|
23,248
|
||||||
Deferred
income taxes
|
33,496
|
33,940
|
||||||
Other
noncurrent liabilities
|
1,417
|
1,698
|
||||||
Total
liabilities
|
417,357
|
457,648
|
||||||
Equity
|
||||||||
Mueller
Industries, Inc. stockholders’ equity:
|
||||||||
Preferred stock - $1.00 par value; shares authorized 5,000,000; none
outstanding
|
-
|
-
|
||||||
Common stock - $.01 par value; shares authorized 100,000,000; issued
40,091,502; outstanding
37,143,163 in 2009 and 2008
|
401
|
401
|
||||||
Additional paid-in capital
|
263,598
|
262,378
|
||||||
Retained earnings
|
546,609
|
550,501
|
||||||
Accumulated other comprehensive loss
|
(26,785
|
)
|
(48,113
|
)
|
||||
Treasury common stock, at cost
|
(64,484
|
)
|
(64,484
|
)
|
||||
Total Mueller Industries, Inc. stockholders’ equity
|
719,339
|
700,683
|
||||||
Noncontrolling
interest
|
25,206
|
24,582
|
||||||
Total
equity
|
744,545
|
725,265
|
||||||
Commitments
and contingencies
|
-
|
-
|
||||||
Total
Liabilities and Equity
|
$
|
1,161,902
|
$
|
1,182,913
|
||||
See
accompanying notes to condensed consolidated financial
statements.
|
For
the Six Months Ended
|
|||||||
June
27, 2009
|
June
28, 2008
|
||||||
(In
thousands)
|
|||||||
Cash
flows from operating activities
|
|||||||
Net income attributable to Mueller Industries, Inc.
|
$
|
3,536
|
$
|
54,369
|
|||
Reconciliation of net income attributable to Mueller Industries, Inc. to
net cash provided by operating activities:
|
|||||||
Depreciation and amortization
|
20,946
|
22,323
|
|||||
Gain
on early retirement of debt
|
(128
|
)
|
(2,482
|
)
|
|||
Net
income attributable to noncontrolling interest
|
121
|
1,562
|
|||||
Stock-based
compensation expense
|
1,220
|
1,479
|
|||||
Loss
on disposal of properties
|
260
|
341
|
|||||
Deferred
income taxes
|
(136
|
)
|
130
|
||||
Income
tax benefit from exercise of stock options
|
-
|
(69
|
)
|
||||
Changes
in assets and liabilities:
|
|||||||
Receivables
|
16,831
|
(66,599
|
)
|
||||
Inventories
|
45,209
|
7,489
|
|||||
Other
assets
|
1,059
|
(2,321
|
)
|
||||
Current
liabilities
|
(21,741
|
)
|
(12,757
|
)
|
|||
Other
liabilities
|
(546
|
)
|
1,342
|
||||
Other,
net
|
(101
|
)
|
(1,167
|
)
|
|||
Net
cash provided by operating activities
|
66,530
|
3,640
|
|||||
Cash
flows from investing activities
|
|||||||
Capital
expenditures
|
(8,725
|
)
|
(14,833
|
)
|
|||
Net
withdrawals from (deposits into) restricted cash
balances
|
13,039
|
(632
|
)
|
||||
Proceeds
from sales of properties
|
606
|
-
|
|||||
Net
cash provided by (used in) investing activities
|
4,920
|
(15,465
|
)
|
||||
Cash
flows from financing activities
|
|||||||
Repayments
of long-term debt
|
(370
|
)
|
(23,605
|
)
|
|||
Dividends
paid to stockholders of Mueller Industries, Inc.
|
(7,428
|
)
|
(7,421
|
)
|
|||
Dividends
paid to noncontrolling interest
|
(1,449
|
)
|
-
|
||||
(Repayment)
issuance of debt by joint venture, net
|
(14,567
|
)
|
5,411
|
||||
Issuance
of shares under incentive stock option plans from
treasury
|
-
|
1,055
|
|||||
Income tax benefit from exercise of stock options
|
-
|
69
|
|||||
Acquisition of treasury stock
|
-
|
(13
|
)
|
||||
Net
cash used in financing activities
|
(23,814
|
)
|
(24,504
|
)
|
|||
Effect
of exchange rate changes on cash
|
7,463
|
1,331
|
|||||
Increase
(decrease) in cash and cash equivalents
|
55,099
|
(34,998
|
)
|
||||
Cash
and cash equivalents at the beginning of the period
|
278,860
|
308,618
|
|||||
Cash
and cash equivalents at the end of the period
|
$
|
333,959
|
$
|
273,620
|
|||
See
accompanying notes to condensed consolidated financial
statements.
|
June
27, 2009
|
December
27, 2008
|
|||||||
(In
thousands)
|
||||||||
Raw
materials and supplies
|
$
|
26,911
|
$
|
57,536
|
||||
Work-in-process
|
25,324
|
39,018
|
||||||
Finished
goods
|
122,796
|
122,756
|
||||||
Valuation
reserves
|
(5,913
|
)
|
(8,701
|
)
|
||||
Inventories
|
$
|
169,118
|
$
|
210,609
|
||||
(In
thousands)
|
For
the Quarter Ended June 27, 2009
|
|||||||||||||||
Plumbing
& Refrigeration Segment
|
OEM
Segment
|
Corporate
and Eliminations
|
Total
|
|||||||||||||
Net
sales
|
$
|
229,764
|
$
|
139,885
|
$
|
(1,849
|
)
|
$
|
367,800
|
|||||||
Cost
of goods sold
|
192,064
|
122,838
|
(1,549
|
)
|
313,353
|
|||||||||||
Depreciation
and amortization
|
6,582
|
3,502
|
271
|
10,355
|
||||||||||||
Selling,
general, and administrative expense
|
19,236
|
5,494
|
5,586
|
30,316
|
||||||||||||
|
||||||||||||||||
Operating
income
|
11,882
|
8,051
|
(6,157
|
)
|
13,776
|
|||||||||||
Interest
expense
|
(2,482
|
)
|
||||||||||||||
Other
income, net
|
385
|
|||||||||||||||
Income
before income taxes
|
$
|
11,679
|
||||||||||||||
(In
thousands)
|
For
the Quarter Ended June 28, 2008
|
|||||||||||||||
Plumbing
& Refrigeration Segment
|
OEM
Segment
|
Corporate
and Eliminations
|
Total
|
|||||||||||||
Net
sales
|
$
|
404,414
|
$
|
353,988
|
$
|
(4,931
|
)
|
$
|
753,471
|
|||||||
Cost
of goods sold
|
340,146
|
325,695
|
(4,632
|
)
|
661,209
|
|||||||||||
Depreciation
and amortization
|
7,261
|
3,468
|
275
|
11,004
|
||||||||||||
Selling,
general, and administrative expense
|
21,637
|
5,862
|
7,119
|
34,618
|
||||||||||||
|
||||||||||||||||
Operating
income
|
35,370
|
18,963
|
(7,693
|
)
|
46,640
|
|||||||||||
Interest
expense
|
(5,238
|
)
|
||||||||||||||
Other
income, net
|
1,961
|
|||||||||||||||
Income
before income taxes
|
$
|
43,363
|
||||||||||||||
(In
thousands)
|
For
the Six Months Ended June 27, 2009
|
|||||||||||||||
Plumbing
& Refrigeration Segment
|
OEM
Segment
|
Corporate
and Eliminations
|
Total
|
|||||||||||||
Net
sales
|
$
|
420,157
|
$
|
278,277
|
$
|
(4,076
|
)
|
$
|
694,358
|
|||||||
Cost
of goods sold
|
345,353
|
258,861
|
(3,478
|
)
|
600,736
|
|||||||||||
Depreciation
and amortization
|
13,206
|
7,088
|
541
|
20,835
|
||||||||||||
Selling,
general, and administrative expense
|
39,385
|
10,543
|
|
11,546
|
61,474
|
|||||||||||
|
||||||||||||||||
Operating
income
|
22,213
|
1,785
|
(12,685
|
)
|
11,313
|
|||||||||||
Interest
expense
|
(5,118
|
)
|
||||||||||||||
Other
income, net
|
1,012
|
|||||||||||||||
Income
before income taxes
|
$
|
7,207
|
||||||||||||||
(In
thousands)
|
For
the Six Months Ended June 28, 2008
|
|||||||||||||||
Plumbing
& Refrigeration Segment
|
OEM
Segment
|
Corporate
and Eliminations
|
Total
|
|||||||||||||
Net
sales
|
$
|
788,298
|
$
|
680,195
|
$
|
(10,914
|
)
|
$
|
1,457,579
|
|||||||
Cost
of goods sold
|
668,145
|
615,176
|
(10,315
|
)
|
1,273,006
|
|||||||||||
Depreciation
and amortization
|
14,519
|
6,918
|
551
|
21,988
|
||||||||||||
Selling,
general, and administrative expense
|
45,180
|
13,564
|
14,165
|
72,909
|
||||||||||||
|
||||||||||||||||
Operating
income
|
60,454
|
44,537
|
(15,315
|
)
|
89,676
|
|||||||||||
Interest
expense
|
(10,705
|
)
|
||||||||||||||
Other
income, net
|
6,530
|
|||||||||||||||
Income
before income taxes
|
$
|
85,501
|
||||||||||||||
For
the Quarter Ended
|
For
the Six Months Ended
|
|||||||||||||||
June
27, 2009
|
June
28, 2008
|
June
27, 2009
|
June
28, 2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Consolidated
net income
|
$
|
6,167
|
$
|
28,024
|
$
|
3,657
|
$
|
55,931
|
||||||||
Other
comprehensive (loss) income, net of tax:
|
||||||||||||||||
Foreign
currency translation
|
21,406
|
3,163
|
18,090
|
5,867
|
||||||||||||
Net
change with respect to derivative instruments and hedging
activties
|
2,798
|
(260
|
)
|
5,821
|
378
|
|||||||||||
Other,
net
|
(995
|
)
|
155
|
(631
|
)
|
317
|
||||||||||
Total
other comprehensive income
|
23,209
|
3,058
|
23,280
|
6,562
|
||||||||||||
Comprehensive
income
|
29,376
|
31,082
|
26,937
|
62,493
|
||||||||||||
Less:
comprehensive income attributable to noncontrolling
interest
|
(1,394
|
)
|
(1,724
|
)
|
(2,073
|
)
|
(3,130
|
)
|
||||||||
Comprehensive
income attributable to Mueller Industries, Inc.
|
$
|
27,982
|
$
|
29,358
|
$
|
24,864
|
$
|
59,363
|
||||||||
For
the Quarter Ended
|
For
the Six Months Ended
|
|||||||||||||||
June
27, 2009
|
June
28, 2008
|
June
27, 2009
|
June
28, 2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Pension
benefits:
|
||||||||||||||||
Service
cost
|
$
|
197
|
$
|
508
|
$
|
561
|
$
|
1,247
|
||||||||
Interest
cost
|
2,098
|
2,550
|
4,660
|
5,967
|
||||||||||||
Expected
return on plan assets
|
(2,546
|
)
|
(3,833
|
)
|
(5,744
|
)
|
(8,755
|
)
|
||||||||
Amortization
of prior service cost
|
77
|
77
|
153
|
179
|
||||||||||||
Amortization
of net loss
|
376
|
75
|
536
|
129
|
||||||||||||
Net
periodic benefit cost (income)
|
$
|
202
|
$
|
(623
|
)
|
$
|
166
|
$
|
(1,233
|
)
|
||||||
Other
benefits:
|
||||||||||||||||
Service
cost
|
$
|
63
|
$
|
83
|
$
|
117
|
$
|
163
|
||||||||
Interest
cost
|
265
|
376
|
603
|
755
|
||||||||||||
Amortization
of prior service cost
|
-
|
-
|
1
|
1
|
||||||||||||
Amortization
of net loss
|
43
|
70
|
84
|
126
|
||||||||||||
Net
periodic benefit cost
|
$
|
371
|
$
|
529
|
$
|
805
|
$
|
1,045
|
||||||||
For
the Quarter Ended
|
For
the Six Months Ended
|
|||||||||||||||
June
27, 2009
|
June
28, 2008
|
June
27, 2009
|
June
28, 2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Interest
income
|
$
|
283
|
$
|
1,708
|
$
|
781
|
$
|
4,093
|
||||||||
Gain
on early retirement of debt
|
128
|
74
|
128
|
2,482
|
||||||||||||
Loss
on disposal of properties, net
|
(347
|
)
|
(2
|
)
|
(260
|
)
|
(341
|
)
|
||||||||
Environmental
expense, non-operating properties
|
(189
|
)
|