Mueller Industries, Inc. Reports Second Quarter 2024 Earnings

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

•Net Sales of $997.7 million versus $897.0 million

•Operating Income of $210.0 million versus $210.7 million

•Earnings Before Taxes of $222.9 million versus $241.0 million

•Net Income of $160.2 million versus $177.7 million

•Diluted EPS of $1.41 versus $1.561

Second Quarter Financial and Operating Highlights:

•COMEX copper averaged $4.55 per pound during the quarter, 18.4% higher than in the second quarter of 2023.

•The increase in net sales was attributable to higher unit shipments in most of our businesses, price increases tied to higher copper prices, and the inclusion of one month of reported sales for our recently acquired Nehring business.

•In 2023, we reported an insurance settlement gain of $19.5 million related to the August 2022 fire at our Westermeyer facility. Adjusting for this gain, our quarterly operating income performance improved by 9.8% over the prior year period.

•Net cash generated from operations was $100.8 million, and our cash balance was $825.7 million at quarter end. Cash deployed during the quarter included $566.6 million for acquisitions and $15.1 million in stock repurchases.

•Our current ratio remains solid at 4.7 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Our businesses continue to perform well despite persistent heightened inflation and restrained construction activity. We maintain a positive long-term outlook for our business. Our internal investments are paying off, and we expect they will yield even greater benefits as market conditions improve. Moreover, our acquisition of Nehring Electrical Works, which we completed during the quarter, provides a substantial platform for expansion in the energy infrastructure space.”

1 Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.

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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												For the Six Months Ended
(In thousands, except per share data)						June 29, 2024						July 1, 2023						June 29, 2024						July 1, 2023
Net sales						$	997,745					$	896,984					$	1,847,399					$	1,868,176
Cost of goods sold						724,990						639,272						1,333,693						1,318,070
Depreciation and amortization						10,018						10,416						19,187						21,073
Selling, general, and administrative expense						52,731						56,062						101,088						108,693
Gain on insurance settlement						—						(19,466)						—						(19,466)
Operating income						210,006						210,700						393,431						439,806
Interest expense						(107)						(135)						(222)						(278)
Interest income						14,383						7,732						31,628						13,967
Realized and unrealized gains on short-term investments						—						20,820						365						22,730
Other (expense) income, net						(1,356)						1,841						(726)						2,167
Income before income taxes						222,926						240,958						424,476						478,392
Income tax expense						(58,384)						(62,122)						(110,218)						(123,479)
(Loss) income from unconsolidated affiliates, net of foreign tax						(1,095)						715						(9,102)						(269)
Consolidated net income						163,447						179,551						305,156						354,644
Net income attributable to noncontrolling interests						(3,282)						(1,840)						(6,628)						(3,694)
Net income attributable to Mueller Industries, Inc.						$	160,165					$	177,711					$	298,528					$	350,950
Weighted average shares for basic earnings per share (1)						111,216						111,320						111,316						111,354
Effect of dilutive stock-based awards (1)						2,763						2,680						2,746						2,046
Adjusted weighted average shares for diluted earnings per share (1)						113,979						114,000						114,062						113,400
Basic earnings per share (1)						$	1.44					$	1.60					$	2.68					$	3.15
Diluted earnings per share (1)						$	1.41					$	1.56					$	2.62					$	3.09
Dividends per share (1)						$	0.20					$	0.15					$	0.40					$	0.30
(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												For the Six Months Ended
(In thousands)						June 29, 2024						July 1, 2023						June 29, 2024						July 1, 2023
Summary Segment Data:
Net sales:
Piping Systems Segment						$	688,469					$	638,005					$	1,278,637					$	1,300,484
Industrial Metals Segment						195,341						146,266						351,408						311,500
Climate Segment						130,532						123,954						247,342						276,908
Elimination of intersegment sales						(16,597)						(11,241)						(29,988)						(20,716)
Net sales						$	997,745					$	896,984					$	1,847,399					$	1,868,176
Operating income:
Piping Systems Segment						$	162,258					$	151,142					$	304,938					$	314,996
Industrial Metals Segment						29,693						17,971						53,964						45,186
Climate Segment						38,993						57,067						71,568						111,055
Unallocated income (expenses)						(20,938)						(15,480)						(37,039)						(31,431)
Operating income						$	210,006					$	210,700					$	393,431					$	439,806

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

						(Unaudited)
(In thousands)						June 29, 2024						December 30, 2023
ASSETS
Cash and cash equivalents						$	825,655					$	1,170,893
Short-term investments						—						98,146
Accounts receivable, net						522,572						351,561
Inventories						406,217						380,248
Other current assets						50,347						39,173
Total current assets						1,804,791						2,040,021
Property, plant, and equipment, net						471,443						385,165
Operating lease right-of-use assets						34,534						35,170
Other assets						755,417						298,945
Total assets						$	3,066,185					$	2,759,301
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt						$	785					$	796
Accounts payable						198,537						120,485
Current portion of operating lease liabilities						8,000						7,893
Other current liabilities						179,906						187,964
Total current liabilities						387,228						317,138
Long-term debt						74						185
Pension and postretirement liabilities						11,696						12,062
Environmental reserves						14,808						15,030
Deferred income taxes						20,023						19,134
Noncurrent operating lease liabilities						26,330						26,683
Other noncurrent liabilities						33,168						10,353
Total liabilities						493,327						400,585
Total Mueller Industries, Inc. stockholders’ equity						2,546,103						2,337,445
Noncontrolling interests						26,755						21,271
Total equity						2,572,858						2,358,716
Total liabilities and equity						$	3,066,185					$	2,759,301

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

						For the Six Months Ended
(In thousands)						June 29, 2024						July 1, 2023
Cash flows from operating activities
Consolidated net income						$	305,156					$	354,644
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization						19,349						21,252
Stock-based compensation expense						13,476						12,459
Provision for doubtful accounts receivable						(67)						(80)
Loss from unconsolidated affiliates						9,102						269
Dividends from unconsolidated affiliates						3,541						—
Insurance proceeds - noncapital related						15,000						9,854
Gain on disposals of properties						(1,286)						(141)
Unrealized gain on short-term investments						—						(20,820)
Gain on sales of securities						(365)						—
Gain on insurance settlement						—						(19,466)
Deferred income tax (benefit) expense						(1,509)						2,406
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables						(132,012)						(77,701)
Inventories						6,706						(12,149)
Other assets						8,511						(5,571)
Current liabilities						30,276						(14,460)
Other liabilities						(2,375)						(976)
Other, net						872						1,310
Net cash provided by operating activities						$	274,375					$	250,830
Cash flows from investing activities
Capital expenditures						$	(25,603)					$	(29,221)
Acquisition of businesses, net of cash acquired						(566,577)						—
Investments in unconsolidated affiliates						(8,700)						—
Insurance proceeds - capital related						—						24,646
Purchase of short-term investments						—						(106,231)
Purchase of long-term investments						(7,976)						—
Proceeds from the maturity of short-term investments						—						217,863
Proceeds from the sale of securities						96,465						—
Issuance of notes receivable						(3,800)						—
Proceeds from sales of properties						3,976						142
Dividends from unconsolidated affiliates						—						797
Net cash (used in) provided by investing activities						$	(512,215)					$	107,996

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
						For the Six Months Ended
(In thousands)						June 29, 2024						July 1, 2023
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.						$	(44,488)					$	(33,402)
Repurchase of common stock						(42,994)						(19,303)
Repayments of debt						(111)						(130)
Issuance (repayment) of debt by consolidated joint ventures, net						11						(143)
Net cash used to settle stock-based awards						(2,002)						(2,588)
Net cash used in financing activities						$	(89,584)					$	(55,566)
Effect of exchange rate changes on cash						(4,784)						4,825
(Decrease) increase in cash, cash equivalents, and restricted cash						(332,208)						308,085
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						$	842,015					$	773,381

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