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Mueller Industries, Inc. Reports Third Quarter 2022 Earnings

COLLIERVILLE, Tenn., October 18, 2022 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2022. All comparisons are to the prior year quarter (which included a $54.8 million pre-tax gain from divestitures).
•Operating Income of $205.2 million versus $233.4 million. Adjusting for the aforementioned gain, this reflects a 15 percent increase versus the prior year period.
•Net Income of $154.5 million versus $171.0 million
•EPS of $2.74 versus $3.01
•Net Sales of $944.8 million versus $982.2 million

Third Quarter Financial and Operating Highlights:
•The absence of businesses divested in 2021, combined with lower copper prices, reduced volumes due largely to inventory rebalancing, and the impacts of localized recessionary pressures on our international businesses, contributed to a 3.8 percent quarter over quarter decrease in net sales. That decrease was offset by continued strength and growth in our value added businesses. Specifically:
◦Divestitures in 2021 reduced net sales by $20.4 million as compared with the prior year quarter.
◦COMEX copper averaged $3.50 per pound during the quarter, 19 percent lower than the third quarter of 2021.
◦Copper tube and brass rod volumes declined 14 percent.
◦Net Sales from our value added businesses grew 22 percent.
•Cash at quarter end was $483.5 million, an increase of $395.6 million from 2021 year-end.
◦Cash generated from operations during the period was $312.4 million.
◦Net debt remains at zero.
◦The current ratio at quarter end was 3.8 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “We delivered another strong quarter despite ongoing macroeconomic challenges, and ended the quarter with many of our businesses operating at capacity and with healthy backlogs.

Our business outlook remains positive. Building construction, a key market for many of our businesses, has been exceptionally strong in recent years. Although we anticipate some tempering in the building
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industry on the horizon, we nonetheless expect overall demand to remain at healthy levels for our Company.

Our financial position is solid, and positions us well for future opportunities.”


Additional information about the Company, including its recently published investor presentation, can be found at www.muellerindustries.com.


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 EndedFor the Nine Months Ended
(In thousands, except per share data)September 24, 2022September 25, 2021September 24, 2022September 25, 2021
Net sales$944,830 $982,248 $3,104,874 $2,812,988 
Cost of goods sold678,637744,2652,244,0622,212,395
Depreciation and amortization10,85010,86832,99333,757
Selling, general, and administrative expense50,17848,524146,590137,891
Gain on sale of assets— — (5,507)— 
Gain on sale of businesses— (54,759)— (54,759)
Operating income205,165233,350686,736483,704
Interest expense(361)(1,116)(666)(7,451)
Redemption premium— — — (5,674)
Other income (expense), net1,030 (2,548)4,013 (1,288)
Income before income taxes205,834229,686 690,083469,291 
Income tax expense(51,035)(60,229)(173,524)(120,996)
Income from unconsolidated affiliates, net of foreign tax1,014 2,799 6,026 131 
Consolidated net income155,813 172,256 522,585 348,426 
Net income attributable to noncontrolling interests(1,271)(1,276)(3,175)(5,507)
Net income attributable to Mueller Industries, Inc.$154,542 $170,980 $519,410 $342,919 
Weighted average shares for basic earnings per share55,58956,07755,82555,979
Effect of dilutive stock-based awards835731796784
Adjusted weighted average shares for diluted earnings per share
56,42456,80856,62156,763
Basic earnings per share$2.78 $3.05 $9.30 $6.13 
Diluted earnings per share$2.74 $3.01 $9.17 $6.04 
Dividends per share$0.25 $0.13 $0.75 $0.39 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Quarter EndedFor the Nine Months Ended
(In thousands)September 24, 2022September 25, 2021September 24, 2022September 25, 2021
Summary Segment Data:
Net sales:
    Piping Systems Segment$634,808 $688,200 $2,163,045 $1,947,564 
    Industrial Metals Segment144,880182,245498,367527,137
    Climate Segment174,650122,252479,756364,986
    Elimination of intersegment sales(9,508)(10,449)(36,294)(26,699)
Net sales
$944,830 $982,248 $3,104,874 $2,812,988 
Operating income:
    Piping Systems Segment$167,939 $152,199 $540,006 $343,805 
    Industrial Metals Segment12,07719,05259,50458,398
    Climate Segment47,46221,072134,90963,779
    Unallocated income (expenses)(22,313)41,027 (47,683)17,722 
Operating income$205,165 $233,350 $686,736 $483,704 

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
September 24,
2022		December 25, 2021
ASSETS
Cash and cash equivalents$483,496 $87,924 
Accounts receivable, net
441,287471,859
Inventories454,511430,244
Other current assets
41,63028,976
    Total current assets1,420,9241,019,003
Property, plant, and equipment, net374,160385,562
Operating lease right-of-use assets
24,29723,510 
Other assets
290,370300,861
Total assets$2,109,751 $1,728,936 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$1,123 $811 
Accounts payable166,978180,793
Current portion of operating lease liabilities
5,271 6,015 
Other current liabilities
201,575194,820
    Total current liabilities374,947382,439
Long-term debt1,1841,064
Pension and postretirement liabilities17,20517,533
Environmental reserves15,61217,678
Deferred income taxes11,42814,347
Noncurrent operating lease liabilities18,43117,099 
Other noncurrent liabilities
16,29521,813
    Total liabilities
455,102471,973
Total Mueller Industries, Inc. stockholders’ equity1,625,242 1,222,118
Noncontrolling interests
29,407 34,845
    Total equity
1,654,649 1,256,963
Total liabilities and equity$2,109,751 $1,728,936 








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

For the Nine Months Ended
 (In thousands)
September 24, 2022September 25, 2021
Cash flows from operating activities
Consolidated net income$522,585 $348,426 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization33,261 33,932 
Stock-based compensation expense12,254 7,228 
Provision for doubtful accounts receivable327 1,310 
Income from unconsolidated affiliates(6,026)(131)
Redemption premium— 5,674 
Gain on disposals of properties(7,107)(1,135)
Gain on sale of businesses— (54,759)
Impairment charges— 2,568 
Insurance proceeds - non-capital related1,646 — 
Deferred income tax expense226 6,304 
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables15,741 (155,103)
Inventories(33,768)(96,505)
Other assets(8,574)(9,335)
Current liabilities(5,331)85,523 
Other liabilities(7,399)8,335 
Other, net(923)(851)
Net cash provided by operating activities516,912 181,481 
Cash flows from investing activities
Capital expenditures(29,555)(25,547)
Insurance proceeds - capital related3,354 — 
Acquisition of businesses, net of cash acquired— (13,935)
Proceeds from sale of businesses, net of cash sold— 74,250 
Investments in unconsolidated affiliates— (1,613)
Payment received for notes receivable— 8,539 
Proceeds from sales of properties7,841 2,124 
Dividends from unconsolidated affiliates2,091 — 
Net cash (used in) provided by investing activities(16,269)43,818 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
 (In thousands)September 24, 2022September 25, 2021
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(41,876)(21,846)
Repurchase of common stock(38,054)— 
Payment of contingent consideration— (1,250)
Issuance of debt— 475,000 
Repayments of debt(148)(680,572)
Issuance (repayment) of debt by consolidated joint ventures, net406 (4,865)
Net cash (used) received to settle stock-based awards(1,619)219 
  Debt issuance costs— (1,111)
Dividends paid to noncontrolling interests— (9,722)
Net cash used in financing activities(81,291)(244,147)
Effect of exchange rate changes on cash(10,310)(377)
Increase (decrease) in cash, cash equivalents, and restricted cash409,042 (19,225)
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$499,418 $108,151 

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