Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2015 Earnings
MEMPHIS, Tenn., February 2, 2016-- Mueller Industries, Inc. (NYSE: MLI) announced today that net income for the fourth quarter ending December 26, 2015 was $14.4 million, or 25 cents per diluted share.  This compares with net income of $18.0 million, or 32 cents per diluted share in the fourth quarter of 2014.  Net sales for the fourth quarter of 2015 were $472.0 million compared with $537.3 million in the same quarter of the prior year.
For the 2015 fiscal year, net income was $87.9 million, or $1.54 per diluted share, on net sales of $2.1 billion.  This compares with net income of $101.6 million, or $1.79 per diluted share, on net sales of $2.4 billion for 2014.  The decline in net sales for both the fourth quarter and full year was primarily attributable to lower copper prices, the principal raw material for the Company's manufactured products.  COMEX copper was down 26% and 20% respectively for those periods.

Financial and Operating Highlights for the fourth quarter of 2015:
·
The Company ended the year with $274.8 million of cash on hand or $4.81 per share.
·
Debt to total capitalization was 20% at year-end and the current ratio was 3.8 to 1.

Regarding the outlook, Greg Christopher, CEO of Mueller Industries, said, "The decline in copper prices in 2015 negatively impacted our pre-tax earnings in excess of $25 million.  We do not expect this to reoccur in 2016, as copper prices appear to be stabilizing.   Our mill modernization programs are progressing towards completion, and the costs incurred in these programs in 2015 should bestow advantages in 2016 and beyond.

"We anticipate that construction activity in 2016 will continue its steady growth.  The consensus view is that non-residential spending will increase by 8.2% and residential spending even more. Overall, we expect construction spending to grow substantially more rapidly than the U.S. economy as a whole."

 
 
 
 
 

 

















Mueller Industries, Inc. is a an industrial manufacturer that specializes in copper and copper alloy manufacturing while also producing goods made from aluminum, steel, and plastics.  It is headquartered in Memphis, Tennessee and comprises a network of operations in the United States, Canada, Mexico, Great Britain, and China.  Its products include tubing, fittings, valves, vessels, and related items for plumbing and HVACR related piping systems, as well as rod, forgings, extrusions, and various components for OEM applications.  Products are distributed into sectors such as building construction, appliance, defense, energy, and automotive.

*********************

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," "encourage," "anticipate," "appear," 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 5

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

 
 
For the Quarter Ended
   
For the Year Ended
 
(In thousands, except per share data)
 
December 26, 2015
   
December 27, 2014
   
December 26, 2015
   
December 27, 2014
 
 
 
   
   
   
 
Net sales
 
$
471,983
   
$
537,342
   
$
2,100,002
   
$
2,364,227
 
 
                               
Cost of goods sold
   
411,336
     
468,889
     
1,809,702
     
2,043,719
 
Depreciation and amortization
   
9,818
     
8,084
     
34,608
     
33,735
 
Selling, general, and administrative expense
   
31,866
     
31,228
     
130,358
     
131,740
 
Gain on sale of assets
   
     
(4,842
)
   
(15,376
)
   
(6,259
)
Severance
   
     
4,224
     
3,442
     
7,296
 
 
                               
    Operating income
   
18,963
     
29,759
     
137,268
     
153,996
 
 
                               
Interest expense
   
(1,690
)
   
(1,827
)
   
(7,667
)
   
(5,740
)
Other income (expense), net
   
1,654
     
(683
)
   
2,188
     
(243
)
 
                               
    Income before income taxes
   
18,927
     
27,249
     
131,789
     
148,013
 
 
                               
Income tax expense
   
(7,008
)
   
(9,200
)
   
(43,382
)
   
(45,479
)
Income from unconsolidated affiliate, net of tax
   
2,191
     
     
     
 
 
                               
    Consolidated net income
   
14,110
     
18,049
     
88,407
     
102,534
 
 
                               
Net loss (income) attributable to noncontrolling interest
   
325
     
(62
)
   
(543
)
   
(974
)
 
                               
    Net income attributable to Mueller Industries, Inc.
 
$
14,435
   
$
17,987
   
$
87,864
   
$
101,560
 
 
                               
Weighted average shares for basic earnings per share
   
56,450
     
56,169
     
56,316
     
56,042
 
Effect of dilutive stock-based awards
   
537
     
668
     
652
     
726
 
 
                               
Adjusted weighted average shares for diluted earnings per share
   
56,987
     
56,837
     
56,968
     
56,768
 
 
                               
Basic earnings per share
 
$
0.26
   
$
0.32
   
$
1.56
   
$
1.81
 
 
                               
Diluted earnings per share
 
$
0.25
   
$
0.32
   
$
1.54
   
$
1.79
 
 
                               
Dividends per share
 
$
0.075
   
$
0.075
   
$
0.300
   
$
0.300
 
 
                               
Summary Segment Data:
                               
 
                               
Net sales:
                               
    Plumbing & Refrigeration Segment
 
$
302,898
   
$
323,641
   
$
1,260,273
   
$
1,416,701
 
    OEM Segment
   
171,245
     
216,592
     
849,538
     
959,914
 
    Elimination of intersegment sales
   
(2,160
)
   
(2,891
)
   
(9,809
)
   
(12,388
)
 
                               
Net sales
 
$
471,983
   
$
537,342
   
$
2,100,002
   
$
2,364,227
 
 
                               
Operating income:
                               
    Plumbing & Refrigeration Segment
 
$
15,039
   
$
16,859
   
$
90,072
   
$
93,230
 
    OEM Segment
   
10,021
     
17,235
     
72,648
     
85,714
 
    Unallocated expenses
   
(6,097
)
   
(4,335
)
   
(25,452
)
   
(24,948
)
 
                               
Operating income
 
$
18,963
   
$
29,759
   
$
137,268
   
$
153,996
 


Page 3 of 5

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In thousands)
 
December 26, 2015
   
December 27, 2014
 
ASSETS
       
Cash and cash equivalents
 
$
274,844
   
$
352,134
 
Accounts receivable, net
   
251,571
     
275,065
 
Inventories
   
239,378
     
256,585
 
Other current assets
   
34,608
     
57,429
 
 
               
    Total current assets
   
800,401
     
941,213
 
 
               
Property, plant, and equipment, net
   
280,224
     
245,910
 
Other assets
   
258,176
     
140,973
 
 
               
 
 
$
1,338,801
   
$
1,328,096
 
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current portion of debt
 
$
11,760
   
$
36,194
 
Accounts payable
   
88,051
     
100,735
 
Other current liabilities
   
109,618
     
101,140
 
 
               
    Total current liabilities
   
209,429
     
238,069
 
 
               
Long-term debt
   
204,250
     
205,250
 
Pension and postretirement liabilities
   
34,876
     
41,556
 
Environmental reserves
   
20,943
     
21,842
 
Deferred income taxes
   
7,161
     
24,556
 
Other noncurrent liabilities
   
2,440
     
1,389
 
 
               
    Total liabilities
   
479,099
     
532,662
 
 
               
Total Mueller Industries, Inc. stockholders' equity
   
827,285
     
762,150
 
Noncontrolling interest
   
32,417
     
33,284
 
 
               
    Total equity
   
859,702
     
795,434
 
 
               
 
 
$
1,338,801
   
$
1,328,096
 
 
               

Page 4 of 5

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

 
 
For the Year Ended
 
 (In thousands)
 
December 26, 2015
   
December 27, 2014
 
 
 
 
Cash flows from operating activities
 
   
 
  Consolidated net income
 
$
88,407
   
$
102,534
 
  Reconciliation of consolidated net income to net cash
    provided by operating activities:
               
      Depreciation and amortization
   
35,040
     
34,076
 
      Stock-based compensation expense
   
6,244
     
6,265
 
      Gain on disposal of assets
   
(14,815
)
   
(5,405
)
      Deferred income taxes
   
(7,209
)
   
(6,495
)
      Income tax benefit from exercise of stock options
   
(972
)
   
(837
)
      Changes in assets and liabilities, net of businesses acquired:
               
        Receivables
   
51,530
     
(21,932
)
        Inventories
   
41,086
     
1,381
 
        Other assets
   
12,449
     
(23,652
)
        Current liabilities
   
(54,194
)
   
5,849
 
        Other liabilities
   
436
     
(2,223
)
        Other, net
   
1,607
     
1,044
 
 
               
Net cash provided by operating activities
   
159,609
     
90,605
 
 
               
Cash flows from investing activities
               
  Capital expenditures
   
(28,834
)
   
(39,173
)
  Acquisition of business, net of cash acquired
   
(105,944
)
   
(30,137
)
  Proceeds from sale of assets, net of cash transferred
   
5,538
     
33,788
 
  Investment in unconsolidated affiliate
   
(65,900
)
   
 
  Net withdrawals from (deposits) into restricted cash balances
   
4,333
     
(2,902
)
 
               
Net cash used in investing activities
   
(190,807
)
   
(38,424
)
 
               
Cash flows from financing activities
               
  Dividends paid to stockholders of Mueller Industries, Inc.
   
(16,903
)
   
(16,819
)
  (Repayment) issuance of debt by joint venture, net
   
(23,567
)
   
7,258
 
  Net cash used to settle stock-based awards
   
(760
)
   
(719
)
  Repurchase of common stock
   
     
(58
)
  Repayments of long-term debt
   
(1,000
)
   
(1,050
)
  Income tax benefit from exercise of stock options
   
972
     
837
 
 
               
Net cash used in financing activities
   
(41,258
)
   
(10,551
)
 
               
Effect of exchange rate changes on cash
   
(4,834
)
   
(1,296
)
 
               
(Decrease) increase in cash and cash equivalents
   
(77,290
)
   
40,334
 
Cash and cash equivalents at the beginning of the period
   
352,134
     
311,800
 
 
               
Cash and cash equivalents at the end of the period
 
$
274,844
   
$
352,134
 
 
               



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