muellerlogoa07.jpg

Mueller Industries, Inc. Reports Third Quarter 2023 Earnings

COLLIERVILLE, Tenn., October 24, 2023 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2023. Comparisons are to the third quarter of 2022.
•Operating Income of $181.0 million versus $205.2 million
•Net Income of $132.7 million versus $154.5 million
•Diluted EPS* of $1.17 versus $1.37
•Net Sales of $819.8 million versus $944.8 million
(*adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023)

Third Quarter Financial and Operating Highlights:
•The decrease in net sales was primarily attributable to reduced demand in our wholesale channel as distributors continued to rebalance inventory levels, particularly for products utilized in residential construction.
•We sold a majority interest in our PEX plastic piping business on July 3, 2023. In the prior year quarter, this business contributed $11.2 million in net sales.
•Net cash provided by operations was $247.7 million, and cash plus short-term investments were $1.10 billion at quarter end.
•Our current ratio increased to 6.0 to 1.
•On September 26, 2023, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend. The record date for the stock split was October 6, 2023, and the dividend was distributed on stockholders on October 20, 2023.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our businesses have aptly adjusted to the expected tempering of demand in 2023 following the unrestrained demand levels that occurred in 2022. Nonetheless, business conditions at these levels are historically favorable. In addition, we are executing on a number of strategic investments and capacity rationalizations that we expect will continue to yield favorable cost improvements.”

Mr. Christopher continued, “We remain focused on growth and continue to actively identify, evaluate and pursue opportunities that will expand and strengthen our portfolio. Our balance sheet, particularly our cash position, is an excellent resource to support these initiatives.”



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 EndedFor the Nine Months Ended
(In thousands, except per share data)September 30, 2023September 24, 2022September 30, 2023September 24, 2022
Net sales$819,792 $944,830 $2,687,968 $3,104,874 
Cost of goods sold579,058678,6371,897,1282,244,062
Depreciation and amortization9,63110,85030,70432,993
Selling, general, and administrative expense48,29550,178156,988146,590
Gain on sale of assets— — — (5,507)
Gain on sale of business(4,137)— (4,137)— 
Asset impairments5,934 — 5,934 — 
Gain on insurance settlement— — (19,466)— 
Operating income181,011205,165620,817686,736
Interest expense(230)(361)(508)(666)
Interest income10,599 1,356 24,566 1,619 
Unrealized (loss) gain on short-term investments(2,371)— 18,449 — 
Other (expense) income, net(44)(326)4,033 2,394 
Income before income taxes188,965205,834 667,357690,083 
Income tax expense(50,843)(51,035)(174,322)(173,524)
(Loss) income from unconsolidated affiliates, net of foreign tax(2,413)1,014 (2,682)6,026 
Consolidated net income135,709 155,813 490,353 522,585 
Net income attributable to noncontrolling interests(3,000)(1,271)(6,694)(3,175)
Net income attributable to Mueller Industries, Inc.$132,709 $154,542 $483,659 $519,410 
Weighted average shares for basic earnings per share (1)
111,416111,178111,374111,650
Effect of dilutive stock-based awards (1)
2,45216702,1821592
Adjusted weighted average shares for diluted earnings per share (1)
113,868112,848113,556113,242
Basic earnings per share (1)
$1.19 $1.39 $4.34 $4.65 
Diluted earnings per share (1)
$1.17 $1.37 $4.26 $4.59 
Dividends per share (1)
$0.150 $0.125 $0.450 $0.375 
(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 6, 2023.
3

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter EndedFor the Nine Months Ended
(In thousands)September 30, 2023September 24, 2022September 30, 2023September 24, 2022
Summary Segment Data:
Net sales:
    Piping Systems Segment$568,151 $634,808 $1,868,635 $2,163,045 
    Industrial Metals Segment141,012144,880452,512498,367
    Climate Segment119,949174,650396,857479,756
    Elimination of intersegment sales(9,320)(9,508)(30,036)(36,294)
Net sales
$819,792 $944,830 $2,687,968 $3,104,874 
Operating income:
    Piping Systems Segment$140,609 $167,939 $455,605 $540,006 
    Industrial Metals Segment16,22112,07761,40759,504
    Climate Segment34,84647,462145,901134,909
    Unallocated income (expenses)(10,665)(22,313)(42,096)(47,683)
Operating income$181,011 $205,165 $620,817 $686,736 


4

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
September 30,
2023		December 31, 2022
ASSETS
Cash and cash equivalents$979,790 $461,018 
Short-term investments124,680217,863
Accounts receivable, net
409,187380,352
Inventories391,740448,919
Other current assets
31,37326,501
    Total current assets1,936,7701,534,653
Property, plant, and equipment, net376,678379,950
Operating lease right-of-use assets
33,89822,892 
Other assets
316,395304,904
Total assets$2,663,741 $2,242,399 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$556 $811 
Accounts payable141,930128,000
Current portion of operating lease liabilities
7,431 4,942 
Other current liabilities
172,588214,542
    Total current liabilities322,505348,295
Long-term debt1,3011,218
Pension and postretirement liabilities12,92813,055
Environmental reserves15,42016,380
Deferred income taxes18,50216,258
Noncurrent operating lease liabilities25,79316,880 
Other noncurrent liabilities
16,06316,349
    Total liabilities
412,512428,435
Total Mueller Industries, Inc. stockholders’ equity2,221,241 1,790,914
Noncontrolling interests
29,988 23,050
    Total equity
2,251,229 1,813,964
Total liabilities and equity$2,663,741 $2,242,399 







5

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

For the Nine Months Ended
 (In thousands)
September 30, 2023September 24, 2022
Cash flows from operating activities
Consolidated net income$490,353 $522,585 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization31,053 33,261 
Stock-based compensation expense17,268 12,254 
Provision for doubtful accounts receivable(63)327 
Loss (income) from unconsolidated affiliates2,682 (6,026)
Insurance proceeds - noncapital related9,854 1,646 
Gain on disposals of properties(106)(7,107)
Gain on sale of business(4,137)— 
Unrealized gain on short-term investments(18,449)— 
Impairment charges5,934 — 
Gain on insurance settlement(19,466)— 
Deferred income tax expense3,803 226 
Changes in assets and liabilities, net of effects of business sold:
Receivables(36,855)15,741 
Inventories53,372 (33,768)
Other assets(12,897)(8,574)
Current liabilities(25,503)(5,331)
Other liabilities(1,828)(7,399)
Other, net3,475 (923)
Net cash provided by operating activities498,490 516,912 
Cash flows from investing activities
Capital expenditures(39,469)(29,555)
Investments in unconsolidated affiliates(3,999)— 
Insurance proceeds - capital related24,646 3,354 
Purchase of short-term investments(106,231)— 
Proceeds from the maturity of short-term investments217,863 — 
Proceeds from sales of properties214 7,841 
Dividends from unconsolidated affiliates1,093 2,091 
Net cash provided by (used in) investing activities94,117 (16,269)
6

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
 (In thousands)September 30, 2023September 24, 2022
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(50,133)(41,876)
Repurchase of common stock(19,303)(38,054)
Repayments of debt(185)(148)
(Repayment) issuance of debt by consolidated joint ventures, net(265)406 
Net cash used to settle stock-based awards(9,113)(1,619)
Net cash used in financing activities(78,999)(81,291)
Effect of exchange rate changes on cash2,312 (10,310)
Increase in cash, cash equivalents, and restricted cash515,920 409,042 
Cash, cash equivalents, and restricted cash at the beginning of the period465,296 90,376 
Cash, cash equivalents, and restricted cash at the end of the period$981,216 $499,418 
7