Exhibit 99.1


Mueller Industries, Inc. Reports Third Quarter 2014 Earnings
 
MEMPHIS, Tenn., October 21, 2014 -- Mueller Industries, Inc. (NYSE: MLI) announced today net income of $23.8 million, or 42 cents per diluted share, for the third quarter of 2014.  This compares with net income of $19.5 million, or 35 cents per diluted share, earned from normal operations in the third quarter of 2013.  During the third quarter of 2013, the Company reported an additional after-tax net gain of $20.3 million, or 36 cents per diluted share, related to non-recurring items.
 
Net sales for the third quarter were $602.8 million compared with $528.9 million for the same quarter in 2013.  The growth in net sales was driven by unit volume increases of 16.6 percent, of which two thirds came from acquisitions; partially offset by the decline in copper values year-over-year.
 
Financial highlights for the quarter:
-  
Results include $1.1 million of severance and other charges related to the ongoing reorganization of the acquired Yorkshire Copper Tube business.
 
-  
Quarter ending cash totaled $259.9 million equal to $4.57 per share.
 
-  
Stockholders’ equity was $774.6 million equal to a book value per share of $13.62.
 
-  
Debt to total capitalization was 23.1 percent and the current ratio was 4.0 to 1.
 
Regarding the outlook, Greg Christopher, CEO said, “In the third quarter, continued signs of increased activity in the private non-residential construction segment are encouraging.  This is a welcome development as past experience shows that once this segment gains momentum, it tends to persist.
 
“Furthermore the residential segment of our business continues to idle along while improving at a modest pace, with housing starts likely to remain under one million units in 2014.  A ramp-up in starts will accompany further gains in the U.S. economy.”
 
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, Great Britain, and China.  Mueller’s business is importantly linked to: (1) the construction of new homes; (2) the improvement and reconditioning of existing homes and structures; and (3) the commercial construction market that includes office buildings, factories, hotels, hospitals, etc.
 




*********************
 


 
 
Page 1  of 6
 


 
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,” 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.
 

 
CONTACT
 
Jeffrey A. Martin
 
(901)753-3226
 

 
 
Page 2  of 6
 

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
For the Quarter Ended
    
For the Nine Months Ended
  
(In thousands, except per share data)
  
September 27, 2014
    
September 28, 2013
    
September 27, 2014
    
September 28, 2013
  
                         
Net sales
  
$
602,820
    
$
528,854
    
$
1,826,885
    
$
1,670,826
  
                                 
Cost of goods sold
    
521,278
      
456,302
      
1,574,830
      
1,440,277
  
Depreciation and amortization
    
8,952
      
7,882
      
25,651
      
24,364
  
Selling, general, and administrative expense
    
34,864
      
32,921
      
102,167
      
99,078
  
Gain on sale of plastic fittings manufacturing assets
    
—
      
(39,765
)
    
—
      
(39,765
)
Impairment charges
    
—
      
4,304
      
—
      
4,304
  
Insurance settlements
    
—
      
—
      
—
      
(106,332
)
                                 
    Operating income
    
37,726
      
67,210
      
124,237
      
248,900
  
                                 
Interest expense
    
(1,430
)
    
(1,243
)
    
(3,913
)
    
(2,940
)
Other income, net
    
225
      
842
      
440
      
4,324
  
                                 
    Income before income taxes
    
36,521
      
66,809
      
120,764
      
250,284
  
                                 
Income tax expense
    
(12,199
)
    
(26,816
)
    
(36,279
)
    
(92,015
)
                                 
    Consolidated net income
    
24,322
      
39,993
      
84,485
      
158,269
  
                                 
Net income attributable to noncontrolling interest
    
(499
)
    
(129
)
    
(911
)
    
(1,053
)
                                 
    Net income attributable to Mueller Industries, Inc.
  
$
23,823
    
$
39,864
    
$
83,574
    
$
157,216
  
                                 
Weighted average shares for basic earnings per share
    
56,107
      
55,787
      
55,999
      
55,704
  
Effect of dilutive stock-based awards
    
637
      
723
      
746
      
737
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
56,744
      
56,510
      
56,745
      
56,441
  
                                 
Basic earnings per share
  
$
0.42
    
$
0.71
    
$
1.49
    
$
2.82
  
                                 
Diluted earnings per share
  
$
0.42
    
$
0.71
    
$
1.47
    
$
2.79
  
                                 
Dividends per share
  
$
0.075
    
$
0.0625
    
$
0.225
    
$
0.1875
  
                                 
Summary Segment Data:
                                
                                 
Net sales:
                                
    Plumbing & Refrigeration Segment
  
$
357,843
    
$
301,622
    
$
1,093,060
    
$
942,109
  
    OEM Segment
    
247,883
      
230,396
      
743,322
      
741,227
  
    Elimination of intersegment sales
    
(2,906
)
    
(3,164
)
    
(9,497
)
    
(12,510
)
                                 
Net sales
  
$
602,820
    
$
528,854
    
$
1,826,885
    
$
1,670,826
  
                                 
Operating income:
                                
    Plumbing & Refrigeration Segment
  
$
20,156
    
$
54,271
    
$
76,371
    
$
206,708
  
    OEM Segment
    
23,977
      
19,937
      
68,479
      
61,199
  
    Unallocated expenses
    
(6,407
)
    
(6,998
)
    
(20,613
)
    
(19,007
)
                                 
Operating income
  
$
37,726
    
$
67,210
    
$
124,237
    
$
248,900
  

 
Page 3  of 6
 

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In thousands)
  
September 27, 2014
    
December 28, 2013
  
ASSETS
            
Cash and cash equivalents
  
$
259,858
    
$
311,800
  
Accounts receivable, net
    
332,508
      
271,847
  
Inventories
    
282,493
      
251,716
  
Other current assets
    
49,319
      
39,354
  
                 
    Total current assets
    
924,178
      
874,717
  
                 
Property, plant, and equipment, net
    
246,169
      
244,457
  
Other assets
    
157,389
      
128,593
  
                 
   
$
1,327,736
    
$
1,247,767
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
            
Current portion of debt
  
$
37,207
    
$
29,083
  
Accounts payable
    
92,342
      
80,897
  
Other current liabilities
    
103,774
      
109,276
  
                 
    Total current liabilities
    
233,323
      
219,256
  
                 
Long-term debt
    
205,500
      
206,250
  
Pension and postretirement liabilities
    
25,860
      
27,426
  
Environmental reserves
    
21,557
      
22,144
  
Deferred income taxes
    
33,342
      
35,975
  
Other noncurrent liabilities
    
581
      
849
  
                 
    Total liabilities
    
520,163
      
511,900
  
                 
Total Mueller Industries, Inc. stockholders’ equity
    
774,562
      
703,405
  
Noncontrolling interest
    
33,011
      
32,462
  
                 
    Total equity
    
807,573
      
735,867
  
                 
   
$
1,327,736
    
$
1,247,767
  
                 


 
 
Page 4  of 6
 

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

   
For the Nine Months Ended
  
 (In thousands)
  
September 27, 2014
    
September 28, 2013
  
         
Cash flows from operating activities
                
  Consolidated net income
  
$
84,485
    
$
158,269
  
  Reconciliation of consolidated net income to net cash
    provided by operating activities:
                
      Depreciation and amortization
    
25,888
      
24,583
  
      Stock-based compensation expense
    
4,957
      
4,560
  
      Insurance settlements
    
—
      
(106,332
)
      Insurance proceeds – noncapital related
    
—
      
32,395
  
      Gain on sale of plastic fittings manufacturing assets
    
—
      
(39,765
)
      Gain on disposal of properties
    
(1,146
)
    
(3,316
)
      Impairment charges
    
—
      
4,304
  
      Deferred income taxes
    
(6,908
)
    
14,152
  
      Income tax benefit from exercise of stock options
    
(829
)
    
(670
)
      Changes in assets and liabilities, net of business acquired:
                
        Receivables
    
(62,854
)
    
(38,370
)
        Inventories
    
(14,868
)
    
(4,566
)
        Other assets
    
(15,272
)
    
4,886
  
        Current liabilities
    
(8,675
)
    
19,649
  
        Other liabilities
    
(797
)
    
(297
)
        Other, net
    
223
      
508
  
                 
Net cash provided by operating activities
    
4,204
      
69,990
  
                 
Cash flows from investing activities
                
  Capital expenditures
    
(28,406
)
    
(33,402
)
  Acquisition of business
    
(30,137
)
    
—
  
  Insurance proceeds for property and equipment
    
—
      
29,910
  
  Net withdrawals from (deposits into) restricted cash balances
    
2,507
      
(2,473
)
  Proceeds from the sales of assets
    
4,920
      
64,966
  
                 
Net cash (used in) provided by investing activities
    
(51,116
)
    
59,001
  
                 
Cash flows from financing activities
                
  Dividends paid to stockholders of Mueller Industries, Inc.
    
(12,606
)
    
(10,449
)
  Debt issuance cost
    
—
      
(50
)
  Issuance of debt by Mueller Europe, Limited, net
    
12,008
      
—
  
  (Repayment) issuance of debt by joint venture, net
    
(3,170
)
    
4,940
  
  Net cash used to settle stock-based awards
    
(887
)
    
(337
)
  Repurchase of common stock
    
(58
)
    
—
  
  Repayments of long-term debt
    
(800
)
    
(750
)
  Income tax benefit from exercise of stock options
    
829
      
670
  
                 
Net cash used in financing activities
    
(4,684
)
    
(5,976
)
                 
Effect of exchange rate changes on cash
    
(346
)
    
228
  
                 
(Decrease) increase in cash and cash equivalents
    
(51,942
)
    
123,243
  
Cash and cash equivalents at the beginning of the period
    
311,800
      
198,934
  
                 
Cash and cash equivalents at the end of the period
  
$
259,858
    
$
322,177
  
                 

 
Page 5  of 6
 
 
MUELLER INDUSTRIES, INC.
Reconciliation of Net Income as Reported to Pro Forma Without Gain on Sale of
Plastic Fittings Manufacturing Assets and Impairment Charges
(Unaudited)

Earnings attributable to normal operations without the gain on sale of plastic fittings manufacturing assets and impairment charges is a measurement not derived in accordance with generally accepted accounting principles (GAAP).  Excluding the gain on sale of plastic fittings manufacturing assets and impairment charges is useful as it measures the operating results that are the outcome of daily operating decisions made in the normal course of business.  Reconciliation of earnings attributable to normal operations without the gain on sale of plastic fittings manufacturing assets and impairment charges to net income as reported is as follows:


   
For the Quarter Ended September 28, 2013
  
         
Impact of
        
(In thousands, except per share data)
  
As Reported
    
Gain on Sale of
Plastic Fittings
Manufacturing
Assets
    
Impairment
Charges
    
Pro Forma
  
                         
Operating income
  
$
67,210
    
$
39,765
    
$
(4,304
)
  
$
31,749
  
                                 
Interest expense
    
(1,243
)
    
—
      
—
      
(1,243
)
Other income, net
    
842
      
—
      
—
      
842
  
                                 
    Income before income taxes
    
66,809
      
39,765
      
(4,304
)
    
31,348
  
Income tax expense
    
(26,816
)
    
(16,845
)
    
1,719
      
(11,690
)
                                 
    Consolidated net income
    
39,993
      
22,920
      
(2,585
)
    
19,658
  
                                 
Net income attributable to noncontrolling interest
    
(129
)
    
—
      
—
      
(129
)
                                 
    Net income attributable to Mueller Industries, Inc.
  
$
39,864
    
$
22,920
    
$
(2,585
)
  
$
19,529
  
                                 
Diluted earnings per share
  
$
0.71
    
$
0.41
    
$
(0.05
)
  
$
0.35
  
                                 



 
 
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