Mueller Industries, Inc. Reports First Quarter 2024 Earnings

COLLIERVILLE, Tenn., April 23, 2024 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2024. Comparisons are to the first quarter of 2023.

•Net Income of $138.4 million versus $173.2 million

•Earnings Before Taxes of $201.6 million versus $237.4 million

•Net Sales of $849.7 million versus $971.2 million

•Diluted EPS* of $1.21 versus $1.54

(*adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023)

First Quarter Financial and Operating Highlights:

•COMEX copper averaged $3.86 per pound during the quarter, 5.6% lower than in the first quarter of 2023.

•The decrease in net sales was attributable to lower demand for our products that are primarily consumed in residential building, as well as lower selling prices as a result of the lower copper prices.

•We recorded a $10.3 million loss on our investment in Tecumseh Products Company, largely driven by restructuring charges in its international operations.

•Net cash generated from operations was $173.6 million, and our cash balance was $1.36 billion at quarter end.

•Our current ratio was 6.0 to 1.

Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “The first quarter of 2023 represented the tail end of the period of robust demand we experienced stemming from the market’s overreaction to the 2022 supply chain crisis. Given this normalization of demand, as well as the effects persistent inflation and high interest rates have had on business conditions, our 2024 first quarter performance was in line with our expectations. The rationalization actions we took in 2023 had their intended impact and contributed to the sustained margins.”

Regarding the outlook, Mr. Christopher continued, “As reported in our annual report, our long-term outlook for our business remains positive and we are well positioned for the expected rebound in demand. Additionally, we anticipate another strong year of cash flow from operations. Our capital allocation priorities remain reinvestment in our operations to be a low cost producer and growth through acquisition. As previously reported, we are excited to complete our acquisition of Nehring Electrical Works, and look

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forward to capitalizing on the strong growth and expansion platform it will provide to us in the critical electrical transmission infrastructure market.”

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 30, 2024						April 1, 2023
Net sales																		$	849,654					$	971,192
Cost of goods sold																		608,703						678,798
Depreciation and amortization																		9,169						10,657
Selling, general, and administrative expense																		48,357						52,631
Operating income																		183,425						229,106
Interest expense																		(115)						(143)
Interest income																		17,245						6,235
Realized gains on short-term investments																		365						1,910
Other income, net																		630						326
Income before income taxes																		201,550						237,434
Income tax expense																		(51,834)						(61,357)
Loss from unconsolidated affiliates, net of foreign tax																		(8,007)						(984)
Consolidated net income																		141,709						175,093
Net income attributable to noncontrolling interests																		(3,346)						(1,854)
Net income attributable to Mueller Industries, Inc.																		$	138,363					$	173,239
Weighted average shares for basic earnings per share (1)																		111,416						111,386
Effect of dilutive stock-based awards (1)																		2,729						1414
Adjusted weighted average shares for diluted earnings per share (1)																		114,145						112,800
Basic earnings per share (1)																		$	1.24					$	1.56
Diluted earnings per share (1)																		$	1.21					$	1.54
Dividends per share (1)																		$	0.20					$	0.15
(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023.

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
												For the Quarter Ended
(In thousands)																		March 30, 2024						April 1, 2023
Summary Segment Data:
Net sales:
Piping Systems Segment																		$	590,168					$	662,479
Industrial Metals Segment																		156,067						165,234
Climate Segment																		116,810						152,954
Elimination of intersegment sales																		(13,391)						(9,475)
Net sales																		$	849,654					$	971,192
Operating income:
Piping Systems Segment																		$	142,680					$	163,854
Industrial Metals Segment																		24,271						27,215
Climate Segment																		32,575						53,988
Unallocated income (expenses)																		(16,101)						(15,951)
Operating income																		$	183,425					$	229,106

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

						(Unaudited)
(In thousands)						March 30, 2024						December 30, 2023
ASSETS
Cash and cash equivalents						$	1,357,952					$	1,170,893
Short-term investments						—						98,146
Accounts receivable, net						424,406						351,561
Inventories						356,869						380,248
Other current assets						45,379						39,173
Total current assets						2,184,606						2,040,021
Property, plant, and equipment, net						390,517						385,165
Operating lease right-of-use assets						33,819						35,170
Other assets						285,300						298,945
Total assets						$	2,894,242					$	2,759,301
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt						$	705					$	796
Accounts payable						160,133						120,485
Current portion of operating lease liabilities						8,072						7,893
Other current liabilities						192,371						187,964
Total current liabilities						361,281						317,138
Long-term debt						130						185
Pension and postretirement liabilities						11,361						12,062
Environmental reserves						14,919						15,030
Deferred income taxes						22,687						19,134
Noncurrent operating lease liabilities						25,451						26,683
Other noncurrent liabilities						10,043						10,353
Total liabilities						445,872						400,585
Total Mueller Industries, Inc. stockholders’ equity						2,424,374						2,337,445
Noncontrolling interests						23,996						21,271
Total equity						2,448,370						2,358,716
Total liabilities and equity						$	2,894,242					$	2,759,301

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

						For the Quarter Ended
(In thousands)						March 30, 2024						April 1, 2023
Cash flows from operating activities
Consolidated net income						$	141,709					$	175,093
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization						9,250						10,746
Stock-based compensation expense						6,231						5,637
Provision for doubtful accounts receivable						1						(15)
Loss from unconsolidated affiliates						8,007						984
Dividends from unconsolidated affiliates						2,024						—
Insurance proceeds - noncapital related						15,000						—
Gain on disposals of properties						(1,567)						(115)
Gain on sales of securities						(365)						—
Deferred income tax expense						940						372
Changes in assets and liabilities, net of effects of business sold:
Receivables						(75,200)						(111,547)
Inventories						22,502						(581)
Other assets						11,984						(17,950)
Current liabilities						33,948						50,842
Other liabilities						(907)						(2,275)
Other, net						68						427
Net cash provided by operating activities						$	173,625					$	111,618
Cash flows from investing activities
Capital expenditures						$	(16,406)					$	(7,556)
Insurance proceeds - capital related						—						8,000
Purchase of short-term investments						—						50,000
Proceeds from the sale of securities						96,465						—
Issuance of notes receivable						(12,500)						—
Proceeds from sales of properties						2,878						118
Dividends from unconsolidated affiliates						—						644
Net cash provided by investing activities						$	70,437					$	51,206

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
						For the Quarter Ended
(In thousands)						March 30, 2024						April 1, 2023
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.						$	(22,255)					$	(16,729)
Repurchase of common stock						(27,930)						—
Repayments of debt						(56)						(56)
(Repayment) issuance of debt by consolidated joint ventures, net						(77)						297
Net cash used to settle stock-based awards						(2,489)						(2,611)
Net cash used in financing activities						$	(52,807)					$	(19,099)
Effect of exchange rate changes on cash						(670)						2,573
Increase in cash, cash equivalents, and restricted cash						190,585						146,298
Cash, cash equivalents, and restricted cash at the beginning of the period						1,174,223						465,296
Cash, cash equivalents, and restricted cash at the end of the period						$	1,364,808					$	611,594

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