********************* |
For the Quarter Ended | ||||||||||||||
(In thousands, except per share data) | April 1, 2023 | March 26, 2022 | ||||||||||||
Net sales | $ | 971,192 | $ | 1,010,002 | ||||||||||
Cost of goods sold | 678,798 | 744,511 | ||||||||||||
Depreciation and amortization | 10,657 | 10,841 | ||||||||||||
Selling, general, and administrative expense | 52,631 | 47,456 | ||||||||||||
Gain on sale of assets | — | (5,507) | ||||||||||||
Operating income | 229,106 | 212,701 | ||||||||||||
Interest expense | (143) | (158) | ||||||||||||
Interest income | 6,235 | 160 | ||||||||||||
Other income, net | 2,236 | 620 | ||||||||||||
Income before income taxes | 237,434 | 213,323 | ||||||||||||
Income tax expense | (61,357) | (54,199) | ||||||||||||
(Loss) income from unconsolidated affiliates, net of foreign tax | (984) | 124 | ||||||||||||
Consolidated net income | 175,093 | 159,248 | ||||||||||||
Net income attributable to noncontrolling interests | (1,854) | (932) | ||||||||||||
Net income attributable to Mueller Industries, Inc. | $ | 173,239 | $ | 158,316 | ||||||||||
Weighted average shares for basic earnings per share | 55,693 | 56,100 | ||||||||||||
Effect of dilutive stock-based awards | 707 | 810 | ||||||||||||
Adjusted weighted average shares for diluted earnings per share | 56,400 | 56,910 | ||||||||||||
Basic earnings per share | $ | 3.11 | $ | 2.82 | ||||||||||
Diluted earnings per share | $ | 3.07 | $ | 2.78 | ||||||||||
Dividends per share | $ | 0.30 | $ | 0.25 | ||||||||||
MUELLER INDUSTRIES, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Quarter Ended | ||||||||||||||
(In thousands) | April 1, 2023 | March 26, 2022 | ||||||||||||
Summary Segment Data: | ||||||||||||||
Net sales: | ||||||||||||||
Piping Systems Segment | $ | 662,479 | $ | 703,430 | ||||||||||
Industrial Metals Segment | 165,234 | 174,312 | ||||||||||||
Climate Segment | 152,954 | 140,622 | ||||||||||||
Elimination of intersegment sales | (9,475) | (8,362) | ||||||||||||
Net sales | $ | 971,192 | $ | 1,010,002 | ||||||||||
Operating income: | ||||||||||||||
Piping Systems Segment | $ | 163,854 | $ | 160,488 | ||||||||||
Industrial Metals Segment | 27,215 | 23,259 | ||||||||||||
Climate Segment | 53,988 | 36,700 | ||||||||||||
Unallocated income (expenses) | (15,951) | (7,746) | ||||||||||||
Operating income | $ | 229,106 | $ | 212,701 |
(Unaudited) | ||||||||||||||
(In thousands) | April 1, 2023 | December 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 611,399 | $ | 461,018 | ||||||||||
Short-term investments | 170,997 | 217,863 | ||||||||||||
Accounts receivable, net | 503,369 | 380,352 | ||||||||||||
Inventories | 452,826 | 448,919 | ||||||||||||
Other current assets | 28,420 | 26,501 | ||||||||||||
Total current assets | 1,767,011 | 1,534,653 | ||||||||||||
Property, plant, and equipment, net | 377,324 | 379,950 | ||||||||||||
Operating lease right-of-use assets | 29,897 | 22,892 | ||||||||||||
Other assets | 305,389 | 304,904 | ||||||||||||
Total assets | $ | 2,479,621 | $ | 2,242,399 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current portion of debt | $ | 1,108 | $ | 811 | ||||||||||
Accounts payable | 179,244 | 128,000 | ||||||||||||
Current portion of operating lease liabilities | 6,249 | 4,942 | ||||||||||||
Other current liabilities | 220,144 | 214,542 | ||||||||||||
Total current liabilities | 406,745 | 348,295 | ||||||||||||
Long-term debt | 1,251 | 1,218 | ||||||||||||
Pension and postretirement liabilities | 11,260 | 13,055 | ||||||||||||
Environmental reserves | 16,060 | 16,380 | ||||||||||||
Deferred income taxes | 17,561 | 16,258 | ||||||||||||
Noncurrent operating lease liabilities | 22,773 | 16,880 | ||||||||||||
Other noncurrent liabilities | 16,502 | 16,349 | ||||||||||||
Total liabilities | 492,152 | 428,435 | ||||||||||||
Total Mueller Industries, Inc. stockholders’ equity | 1,962,307 | 1,790,914 | ||||||||||||
Noncontrolling interests | 25,162 | 23,050 | ||||||||||||
Total equity | 1,987,469 | 1,813,964 | ||||||||||||
Total liabilities and equity | $ | 2,479,621 | $ | 2,242,399 |
For the Quarter Ended | ||||||||||||||
(In thousands) | April 1, 2023 | March 26, 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Consolidated net income | $ | 175,093 | $ | 159,248 | ||||||||||
Reconciliation of consolidated net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 10,746 | 10,930 | ||||||||||||
Stock-based compensation expense | 5,637 | 2,573 | ||||||||||||
Provision for doubtful accounts receivable | (15) | 125 | ||||||||||||
Loss (income) from unconsolidated affiliates | 984 | (124) | ||||||||||||
Gain on disposals of properties | (115) | (5,507) | ||||||||||||
Deferred income tax expense | 372 | 258 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Receivables | (111,547) | (116,610) | ||||||||||||
Inventories | (581) | (40,803) | ||||||||||||
Other assets | (17,950) | 314 | ||||||||||||
Current liabilities | 50,842 | 54,344 | ||||||||||||
Other liabilities | (2,275) | (1,752) | ||||||||||||
Other, net | 427 | (137) | ||||||||||||
Net cash provided by operating activities | 111,618 | 62,859 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures | (7,556) | (5,259) | ||||||||||||
Insurance proceeds - capital related | 8,000 | — | ||||||||||||
Proceeds from the maturity of short term investments | 50,000 | — | ||||||||||||
Proceeds from sales of properties | 118 | 6,219 | ||||||||||||
Dividends from unconsolidated affiliates | 644 | 959 | ||||||||||||
Net cash provided by investing activities | 51,206 | 1,919 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Dividends paid to stockholders of Mueller Industries, Inc. | (16,729) | — | ||||||||||||
Repurchase of common stock | — | (3,972) | ||||||||||||
Repayments of debt | (56) | (56) | ||||||||||||
Issuance of debt by consolidated joint ventures, net | 297 | — | ||||||||||||
Net cash used to settle stock-based awards | (2,611) | (230) | ||||||||||||
Net cash used in financing activities | (19,099) | (4,258) | ||||||||||||
Effect of exchange rate changes on cash | 2,573 | 301 | ||||||||||||
Increase in cash, cash equivalents, and restricted cash | 146,298 | 60,821 | ||||||||||||
Cash, cash equivalents, and restricted cash at the beginning of the period | 465,296 | 90,376 | ||||||||||||
Cash, cash equivalents, and restricted cash at the end of the period | $ | 611,594 | $ | 151,197 |