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Mueller Industries, Inc. Reports First Quarter 2022 Earnings

COLLIERVILLE, Tenn., April 19, 2022 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2022. (All comparisons are to the prior year quarter.)
•Operating Income of $212.7 million versus $92.5 million
•Net Income of $158.3 million versus $63.1 million
•EPS of $2.78 versus $1.11
•Net Sales of $1.01 billion versus $818.1 million

First Quarter Financial and Operating Highlights:
•Higher commodity prices, which are passed through in the selling prices of our products, were the primary reason for the increase in net sales, along with volume growth from recently acquired businesses.
◦COMEX copper averaged $4.54 per pound during the quarter, 18 percent higher than the first quarter of 2021.
◦Gross margin improved 800 basis points, and reflected our effective price management in response to significant inflation in wages, and material, consumable, freight and distribution costs.
•Cash at quarter end was $139 million, with no net debt.
•During the period, we announced an increase in our quarterly dividend from $.13 per share to $.25 per share.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Building construction, the primary market we serve, remains healthy. The continued expansion of residential construction, along with the development of the infrastructure necessary to support local communities, will continue to drive demand for our portfolio of products. We believe we are well poised to benefit from both this ongoing trend, and from the anticipated recovery of other markets we serve that have been impacted by labor and supply chain issues.
All in all, our performance remains consistent with the outlook we provided in our year-end report.”





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

For the Quarter Ended
(In thousands, except per share data)March 26, 2022March 27, 2021
Net sales$1,010,002 $818,148 
Cost of goods sold744,511668,418
Depreciation and amortization10,84111,755
Selling, general, and administrative expense47,45645,435
Gain on sale of assets(5,507)— 
Operating income212,70192,540
Interest expense(158)(4,469)
Other income, net780 577 
Income before income taxes213,32388,648 
Income tax expense(54,199)(21,761)
Income (loss) from unconsolidated affiliates, net of foreign tax124 (1,649)
Consolidated net income159,248 65,238 
Net income attributable to noncontrolling interests(932)(2,131)
Net income attributable to Mueller Industries, Inc.$158,316 $63,107 
Weighted average shares for basic earnings per share56,10055,916
Effect of dilutive stock-based awards810756
Adjusted weighted average shares for diluted earnings per share
56,91056,672
Basic earnings per share$2.82 $1.13 
Diluted earnings per share$2.78 $1.11 
Dividends per share$0.25 $0.13 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter Ended
(In thousands)March 26, 2022March 27, 2021
Summary Segment Data:
Net sales:
    Piping Systems Segment$703,430 $547,748 
    Industrial Metals Segment174,312164,852
    Climate Segment140,622111,026
    Elimination of intersegment sales(8,362)(5,478)
Net sales
$1,010,002 $818,148 
Operating income:
    Piping Systems Segment$160,488 $67,098 
    Industrial Metals Segment23,25918,847
    Climate Segment36,70017,335
    Unallocated income (expenses)(7,746)(10,740)
Operating income$212,701 $92,540 

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
March 26,
2022		December 25, 2021
ASSETS
Cash and cash equivalents$139,255 $87,924 
Accounts receivable, net
588,397471,859
Inventories471,949430,244
Other current assets
40,94728,976
    Total current assets1,240,5481,019,003
Property, plant, and equipment, net380,711385,562
Operating lease right-of-use assets
21,96523,510 
Other assets
302,726300,861
Total assets$1,945,950 $1,728,936 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$812 $811 
Accounts payable226,712180,793
Current portion of operating lease liabilities
5,650 6,015 
Other current liabilities
218,422194,820
    Total current liabilities451,596382,439
Long-term debt1,0981,064
Pension and postretirement liabilities16,51817,533
Environmental reserves17,13717,678
Deferred income taxes15,86114,347
Noncurrent operating lease liabilities16,01017,099 
Other noncurrent liabilities
21,58621,813
    Total liabilities
539,806471,973
Total Mueller Industries, Inc. stockholders’ equity1,370,400 1,222,118
Noncontrolling interests
35,744 34,845
    Total equity
1,406,144 1,256,963
Total liabilities and equity$1,945,950 $1,728,936 








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

For the Quarter Ended
 (In thousands)
March 26, 2022March 27, 2021
Cash flows from operating activities
Consolidated net income$159,248 $65,238 
Reconciliation of consolidated net income to net cash provided by (used in) operating activities:  
Depreciation and amortization10,930 11,775 
Stock-based compensation expense2,573 2,109 
Provision for doubtful accounts receivable125 1,631 
(Income) loss from unconsolidated affiliates(124)1,649 
Gain on disposals of properties(5,507)(936)
Deferred income tax expense258 142 
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables(116,610)(89,972)
Inventories(40,803)(45,590)
Other assets314 1,230 
Current liabilities54,344 33,941 
Other liabilities(1,752)(3,703)
Other, net(137)(95)
Net cash provided by (used in) operating activities62,859 (22,581)
Cash flows from investing activities
Capital expenditures(5,259)(9,227)
Acquisition of businesses, net of cash acquired— (14,029)
Proceeds from sales of properties6,219 1,730 
Dividends from unconsolidated affiliates959 — 
Net cash provided by (used in) investing activities1,919 (21,526)
Cash flows from financing activities
Repurchase of common stock(3,972)— 
Issuance of debt— 100,000 
Repayments of debt(56)(35,288)
Issuance of debt by consolidated joint ventures, net— 45 
Net cash (used) received to settle stock-based awards(230)221 
Net cash (used in) provided by financing activities(4,258)64,978 
Effect of exchange rate changes on cash301 784 
Increase in cash, cash equivalents, and restricted cash60,821 21,655 
Cash, cash equivalents, and restricted cash at the beginning of the period90,376 127,376 
Cash, cash equivalents, and restricted cash at the end of the period$151,197 $149,031 


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