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Mueller Industries, Inc. Reports Fiscal 2023 Fourth Quarter and Full Year Results

COLLIERVILLE, Tenn., February 6, 2024 -- Mueller Industries, Inc. (NYSE: MLI) today reported 2023 fourth quarter and full year results.

For the Fourth Quarter 2023 versus Fourth Quarter 2022:
•Net income:            $119.2 million vs $138.9 million, down 14.2%.
•Earnings before taxes:     $177.9 million vs $185.9 million, down 4.3%.
•Net sales:            $732.4 million vs $877.6 million, down 16.5%.
•Diluted EPS:            $1.05 vs $1.23, down 14.6%.

For the Full Year 2023 versus the Full Year 2022:
•Net income:            $602.9 million vs $658.3 million, down 8.4%.
•Earnings before taxes:        $845.2 million vs $876.0 million, down 3.5%.
•Net sales:            $3.4 billion vs $4.0 billion, down 14.1%.
•Diluted EPS:            $5.30 vs $5.82, down 8.9%.

Fourth Quarter*/Year-End Financial and Operating Commentary:
•The net sales decline of $145.2 million in the fourth quarter was primarily attributable to lower demand in most segments and markets, particularly those products that are predominantly used in new residential construction. Fluctuations in COMEX copper prices had a nominal impact on the change in net sales.
•The Company generated $174.3 million of cash from operations in the fourth quarter, and $672.8 million for the year.
•Year-end cash and short-term investments totaled $1.3 billion, and our current ratio is 6.4 to 1.
•During the quarter, we recorded a reserve of $11.6 million related to a pending legal matter at unconsolidated affiliate, Tecumseh Products Company, which is currently under appeal.
•We have yet to recognize any insurance recovery for the significant losses we have incurred as a result of the tornado that destroyed our copper fittings operations in Covington, Tennessee. We anticipate doing so sometime during the latter half of 2024, once the business is back and operational.
* For context, the Company’s current fourth quarter includes 13 weeks of results, as compared to the 14 weeks reported for the fourth quarter of 2022, the business’ most profitable fourth quarter on record.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our team performed exceptionally well on all fronts and delivered another quarter of excellent earnings and cash generation, despite reduced demand. Importantly, the structural changes we have made to improve gross margins are showing durability, and our manufacturing platform is well balanced for both current demand levels, as well as higher levels of demand when conditions improve.
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Our business outlook is positive. There continues to be pent up demand for residential housing and needed investment in U.S. infrastructure. As rising interest rates and inflation begin to recede, demand will return as building construction activity is reignited.
Our strong cash flows and tremendous cash balance provide us the resources to execute on our strategic plans. Our top priorities are ensuring our operations are well capitalized to remain a low-cost producer, and pursuing acquisitions that strengthen our core and create greater growth avenues.
We are well positioned for long-term growth and to deliver superior returns to our shareholders.”

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 Year Ended
(In thousands, except per share data)December 30, 2023December 31, 2022December 30, 2023December 31, 2022
Net sales$732,377 $877,581 $3,420,345 $3,982,455 
Cost of goods sold536,383620,8002,433,5112,864,862
Depreciation and amortization9,25010,73839,95443,731
Selling, general, and administrative expense51,18455,630208,172196,713
Gain on sale of businesses— — (4,137)— 
Impairment charges324 — 6,258 — 
Gain on insurance settlement— — (19,466)— 
Operating income135,236190,413756,053877,149
Interest expense(713)(144)(1,221)(810)
Interest income13,642 4,838 38,208 6,457 
Realized and unrealized gains on short-term investments21,503 — 41,865 2,918 
Gain on extinguishment of NMTC liability7,534 — 7,534 — 
Environmental income (expense)202 349 (825)(1,298)
Pension plan termination expense— (13,100)— (13,100)
Other income, net471 3,592 3,618 4,715 
Income before income taxes177,875185,948 845,232876,031 
Income tax expense(46,440)(49,798)(220,762)(223,322)
(Loss) income from unconsolidated affiliates, net of foreign tax(12,139)4,085 (14,821)10,111 
Consolidated net income119,296 140,235 609,649 662,820 
Net income attributable to noncontrolling interests(58)(1,329)(6,752)(4,504)
Net income attributable to Mueller Industries, Inc.$119,238 $138,906 $602,897 $658,316 
Weighted average shares for basic earnings per share111,556111,284111,420111,558
Effect of dilutive stock-based awards2,4251,4342,2421,552
Adjusted weighted average shares for diluted earnings per share113,981112,718113,662113,110
Basic earnings per share$1.07 $1.25 $5.41 $5.90 
Diluted earnings per share$1.05 $1.23 $5.30 $5.82 
Dividends per share$0.150 $0.125 $0.600 $0.500 






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

For the Quarter EndedFor the Year Ended
(In thousands)December 30, 2023December 31, 2022December 30, 2023December 31, 2022
Summary Segment Data:
Net sales:
    Piping Systems Segment$513,938 $567,039 $2,382,573 $2,730,084 
    Industrial Metals Segment125,363146,322577,875644,689
    Climate Segment103,933170,551500,790650,307
    Elimination of intersegment sales(10,857)(6,331)(40,893)(42,625)
Net sales$732,377 $877,581 $3,420,345 $3,982,455 
Operating income:
    Piping Systems Segment$113,634 $131,056 $569,239 $671,062 
    Industrial Metals Segment14,97222,96076,37982,464
    Climate Segment25,96353,158171,864188,067
    Unallocated expenses(19,333)(16,761)(61,429)(64,444)
Operating income$135,236 $190,413 $756,053 $877,149 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In thousands)
December 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$1,170,893 $461,018 
Short-term investments98,146217,863
Accounts receivable, net
351,561380,352
Inventories380,248448,919
Other current assets
39,17326,501
    Total current assets2,040,0211,534,653
Property, plant, and equipment, net385,165379,950
Operating lease right-of-use assets
35,17022,892 
Other assets
298,945304,904
$2,759,301 $2,242,399 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$796 $811 
Accounts payable120,485128,000
Current portion of operating lease liabilities
7,8934,942 
Other current liabilities
187,964214,542
    Total current liabilities317,138348,295
Long-term debt1851,218
Pension and postretirement liabilities12,06213,055
Environmental reserves15,03016,380
Deferred income taxes19,13416,258
Noncurrent operating lease liabilities
26,68316,880 
Other noncurrent liabilities
10,35316,349
    Total liabilities
400,585428,435
Total Mueller Industries, Inc. stockholders’ equity2,337,445 1,790,914
Noncontrolling interests
21,271 23,050
    Total equity
2,358,716 1,813,964
$2,759,301 $2,242,399 







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

For the Year Ended
 (In thousands)
December 30, 2023December 31, 2022
Cash flows from operating activities
Consolidated net income$609,649 $662,820 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization40,824 44,088 
Stock-based compensation expense23,131 17,801 
Provision for doubtful accounts receivable(84)323 
Loss (income) from unconsolidated affiliates14,821 (10,111)
Gain on sale of businesses(4,137)— 
Unrealized gain on short-term investments(24,765)— 
Gain on disposals of assets(1)(6,373)
Insurance proceeds - noncapital related9,854 1,646 
Gain on sale of securities(17,100)— 
Gain on insurance settlement(19,466)— 
Impairment charges6,258 — 
Gain on extinguishment of NMTC liability(7,534)— 
Deferred income tax expense (benefit)4,790 (3,880)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables30,915 82,713 
Inventories67,903 (24,189)
Other assets(20,700)(8,971)
Current liabilities(40,606)(26,633)
Other liabilities(3,497)(7,564)
Other, net2,511 2,273 
Net cash provided by operating activities672,766 723,943 
Cash flows from investing activities
Proceeds from sale of assets, net of cash transferred279 7,850 
Purchase of short-term investments(106,231)(217,863)
Proceeds from the sale of securities55,454 — 
Proceeds from the maturity of short-term investments217,863 — 
Capital expenditures(54,025)(37,639)
Insurance proceeds - capital related24,646 3,354 
Dividends from unconsolidated affiliates1,093 2,295 
Investments in unconsolidated affiliates(3,999)— 
Net cash provided by (used in) investing activities135,080 (242,003)





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

For the Year Ended
 (In thousands)December 30, 2023December 31, 2022
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(66,868)(55,787)
Dividends paid to noncontrolling interests(9,312)(7,248)
Repayments of long-term debt(241)(204)
(Repayment) issuance of debt by consolidated joint ventures, net(30)67 
Repurchase of common stock(19,303)(38,054)
Net cash (used) received to settle stock-based awards(8,755)(1,429)
Net cash used in financing activities(104,509)(102,655)
Effect of exchange rate changes on cash5,590 (4,365)
Increase in cash, cash equivalents, and restricted cash708,927 374,920 
Cash, cash equivalents, and restricted cash at the beginning of the year465,296 90,376 
Cash, cash equivalents, and restricted cash at the end of the year$1,174,223 $465,296 
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