Mueller Industries, Inc. Reports Third Quarter 2021 Earnings

COLLIERVILLE, Tenn., October 19, 2021 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2021. (All comparisons are to the prior year quarter.)

•$233.4 million in operating income versus $69.2 million

•$171.0 million in net income versus $42.7 million

•$982.2 million in net sales versus $619.1 million

•EPS of $3.01 versus $0.76 per share

Third Quarter Financial and Operating Highlights:

•COMEX copper averaged $4.30 per pound versus $2.93 per pound in the third quarter of last year, a 47% increase.

•Unit sales growth across all segments, the influence of the higher copper prices and contributions from the first quarter acquisition of the Hart & Cooley Flex duct business all contributed to the increase in net sales.

•The results include a gain of $50.1 million from the sale of the Fabricated Tube Products and Shoals Tubular businesses.

•We recorded income of $2.8 million on our investment in Tecumseh Products Company as its restructuring efforts progress, compared to a $5.5 million loss recorded during the prior year period.

•We reduced our debt by $230.0 million, ending the quarter with a debt to total capitalization below 10 percent and a current ratio of 2.7 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said,

“Our strong financial results were driven by continued favorable market demand and our teams’ exceptional operating performance in the face of industry wide labor and supply constraints and rising costs. Building construction demand remains solid, and backlogs in most businesses continue to build.”

He added, “During the quarter, we also completed the sale of two of our smaller manufacturing businesses, Fabricated Tube Products and Shoals Tubular, and divested of a majority interest in Die-Mold Tool. Although growth remains a key priority, we also continually evaluate our portfolio and pursue opportunities to exit businesses that we do not believe provide the up-side growth potential and returns necessary to achieve our long-term strategic goals.

We anticipate that current market conditions will continue for the foreseeable future.”

1

---

Mueller Industries, Inc. (NYSE: MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

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

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

2

---

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 25, 2021						September 26, 2020						September 25, 2021						September 26, 2020
Net sales						$	982,248					$	619,105					$	2,812,988					$	1,722,192
Cost of goods sold						744,265						500,780						2,212,395						1,412,654
Depreciation and amortization						10,868						10,752						33,757						32,888
Selling, general, and administrative expense						48,524						38,346						137,891						117,749
Gain on sale of businesses						(54,759)						—						(54,759)						—
Litigation settlement, net						—						—						—						(21,933)
Operating income						233,350						69,227						483,704						180,834
Interest expense						(1,116)						(4,885)						(7,451)						(15,237)
Redemption premium						—						—						(5,674)						—
Other (expense) income, net						(2,548)						522						(1,288)						3,634
Income before income taxes						229,686						64,864						469,291						169,231
Income tax expense						(60,229)						(15,450)						(120,996)						(42,623)
Income (loss) from unconsolidated affiliates, net of foreign tax						2,799						(5,457)						131						(20,213)
Consolidated net income						172,256						43,957						348,426						106,395
Net income attributable to noncontrolling interests						(1,276)						(1,255)						(5,507)						(3,322)
Net income attributable to Mueller Industries, Inc.						$	170,980					$	42,702					$	342,919					$	103,073
Weighted average shares for basic earnings per share						56,077						55,816						55,979						55,805
Effect of dilutive stock-based awards						731						550						784						534
Adjusted weighted average shares for diluted earnings per share						56,808						56,366						56,763						56,339
Basic earnings per share						$	3.05					$	0.77					$	6.13					$	1.85
Diluted earnings per share						$	3.01					$	0.76					$	6.04					$	1.83
Dividends per share						$	0.13					$	0.10					$	0.39					$	0.30

3

---

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
						For the Quarter Ended												For the Nine Months Ended
(In thousands)						September 25, 2021						September 26, 2020						September 25, 2021						September 26, 2020
Summary Segment Data:
Net sales:
Piping Systems Segment						$	688,200					$	409,414					$	1,947,564					$	1,128,467
Industrial Metals Segment						182,245						118,831						527,137						338,652
Climate Segment						122,252						97,604						364,986						276,983
Elimination of intersegment sales						(10,449)						(6,744)						(26,699)						(21,910)
Net sales						$	982,248					$	619,105					$	2,812,988					$	1,722,192
Operating income:
Piping Systems Segment						$	152,199					$	44,863					$	343,805					$	122,613
Industrial Metals Segment						19,052						18,348						58,398						38,403
Climate Segment						21,072						18,156						63,779						43,523
Unallocated income (expenses)						41,027						(12,140)						17,722						(23,705)
Operating income						$	233,350					$	69,227					$	483,704					$	180,834

4

---

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

						(Unaudited)
(In thousands)						September 25, 2021						December 26, 2020
ASSETS
Cash and cash equivalents						$	104,789					$	119,075
Accounts receivable, net						493,960						357,532
Inventories						405,590						315,002
Other current assets						33,604						33,752
Total current assets						1,037,943						825,361
Property, plant, and equipment, net						370,222						376,572
Operating lease right-of-use assets						24,147						29,301
Other assets						296,225						297,334
Total assets						$	1,728,537					$	1,528,568
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt						$	1,110					$	41,283
Accounts payable						180,509						147,741
Current portion of operating lease liabilities						6,193						6,259
Other current liabilities						192,286						144,360
Total current liabilities						380,098						339,643
Long-term debt						121,012						286,593
Pension and postretirement liabilities						24,132						26,841
Environmental reserves						20,902						21,256
Deferred income taxes						13,393						16,842
Noncurrent operating lease liabilities						17,399						21,602
Other noncurrent liabilities						25,369						14,731
Total liabilities						602,305						727,508
Total Mueller Industries, Inc. stockholders’ equity						1,107,562						776,745
Noncontrolling interests						18,670						24,315
Total equity						1,126,232						801,060
Total liabilities and equity						$	1,728,537					$	1,528,568

5

---

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

						For the Nine Months Ended
(In thousands)						September 25, 2021						September 26, 2020
Cash flows from operating activities
Consolidated net income						$	348,426					$	106,395
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization						33,932						33,127
Stock-based compensation expense						7,228						6,332
Provision for doubtful accounts receivable						1,310						953
(Income) loss from unconsolidated affiliates						(131)						20,213
Redemption premium						5,674						—
(Gain) loss on disposals of properties						(1,135)						144
Gain on sale of businesses						(54,759)						—
Impairment charges						2,568						3,035
Deferred income tax expense (benefit)						6,304						(836)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables						(155,103)						(45,530)
Inventories						(96,505)						41,598
Other assets						(9,335)						9,053
Current liabilities						85,523						25,913
Other liabilities						8,335						(5,813)
Other, net						(851)						2,294
Net cash provided by operating activities						181,481						196,878
Cash flows from investing activities
Capital expenditures						(25,547)						(29,204)
Acquisition of businesses, net of cash acquired						(13,935)						(72,648)
Proceeds from sale of businesses, net of cash sold						74,250						—
Investments in unconsolidated affiliates						(1,613)						—
Payment received for (issuance of) notes receivable						8,539						(9,155)
Proceeds from sales of properties						2,124						12
Net cash provided by (used in) investing activities						43,818						(110,995)

6

---

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)
						For the Nine Months Ended
(In thousands)						September 25, 2021						September 26, 2020
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.						(21,846)						(16,754)
Repurchase of common stock						—						(5,574)
Payment of contingent consideration						(1,250)						(7,000)
Issuance of debt						475,000						150,027
Repayments of debt						(680,572)						(186,492)
Repayment of debt by consolidated joint ventures, net						(4,865)						(299)
Net cash received (used) to settle stock-based awards						219						(160)
Debt issuance costs						(1,111)						—
Dividends paid to noncontrolling interests						(9,722)						—
Net cash used in financing activities						(244,147)						(66,252)
Effect of exchange rate changes on cash						(377)						(3,294)
(Decrease) increase in cash, cash equivalents, and restricted cash						(19,225)						16,337
Cash, cash equivalents, and restricted cash at the beginning of the period						127,376						98,042
Cash, cash equivalents, and restricted cash at the end of the period						$	108,151					$	114,379

7