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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 EndedFor the Six Months Ended
(In thousands, except per share data)June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Net sales$997,745 $896,984 $1,847,399 $1,868,176 
Cost of goods sold724,990639,2721,333,6931,318,070
Depreciation and amortization10,01810,41619,18721,073
Selling, general, and administrative expense52,73156,062101,088108,693
Gain on insurance settlement— (19,466)— (19,466)
Operating income210,006210,700393,431439,806
Interest expense(107)(135)(222)(278)
Interest income14,383 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 taxes222,926240,958 424,476478,392 
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 income163,447 179,551 305,156 354,644 
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)
111,216111,320111,316111,354
Effect of dilutive stock-based awards (1)
2,7632,6802,7462,046
Adjusted weighted average shares for diluted earnings per share (1)
113,979114,000114,062113,400
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 EndedFor the Six Months Ended
(In thousands)June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Summary Segment Data:
Net sales:
    Piping Systems Segment$688,469 $638,005 $1,278,637 $1,300,484 
    Industrial Metals Segment195,341146,266351,408311,500
    Climate Segment130,532123,954247,342276,908
    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 Segment29,69317,97153,96445,186
    Climate Segment38,99357,06771,568111,055
    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 investments98,146
Accounts receivable, net
522,572351,561
Inventories406,217380,248
Other current assets
50,34739,173
    Total current assets1,804,7912,040,021
Property, plant, and equipment, net471,443385,165
Operating lease right-of-use assets
34,53435,170 
Other assets
755,417298,945
Total assets$3,066,185 $2,759,301 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$785 $796 
Accounts payable198,537120,485
Current portion of operating lease liabilities
8,000 7,893 
Other current liabilities
179,906187,964
    Total current liabilities387,228317,138
Long-term debt74185
Pension and postretirement liabilities11,69612,062
Environmental reserves14,80815,030
Deferred income taxes20,02319,134
Noncurrent operating lease liabilities26,33026,683 
Other noncurrent liabilities
33,16810,353
    Total liabilities
493,327400,585
Total Mueller Industries, Inc. stockholders’ equity2,546,103 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, 2024July 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 amortization19,349 21,252 
Stock-based compensation expense13,476 12,459 
Provision for doubtful accounts receivable(67)(80)
Loss from unconsolidated affiliates9,102 269 
Dividends from unconsolidated affiliates3,541 — 
Insurance proceeds - noncapital related15,000 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)
Inventories6,706 (12,149)
Other assets8,511 (5,571)
Current liabilities30,276 (14,460)
Other liabilities(2,375)(976)
Other, net872 1,310 
Net cash provided by operating activities$274,375 $250,830 
Cash flows from investing activities
Capital expenditures$(25,603)$(29,221)
Acquisition of businesses, net of cash acquired(566,577)— 
Investments in unconsolidated affiliates(8,700)— 
Insurance proceeds - capital related— 24,646 
Purchase of short-term investments— (106,231)
Purchase of long-term investments(7,976)— 
Proceeds from the maturity of short-term investments— 217,863 
Proceeds from the sale of securities96,465 — 
Issuance of notes receivable(3,800)— 
Proceeds from sales of properties3,976 142 
Dividends from unconsolidated affiliates— 797 
Net cash (used in) provided by investing activities$(512,215)$107,996 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended
 (In thousands)June 29, 2024July 1, 2023
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.$(44,488)$(33,402)
Repurchase of common stock(42,994)(19,303)
Repayments of debt(111)(130)
Issuance (repayment) of debt by consolidated joint ventures, net11 (143)
Net cash used to settle stock-based awards(2,002)(2,588)
Net cash used in financing activities$(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 period1,174,223 465,296 
Cash, cash equivalents, and restricted cash at the end of the period$842,015 $773,381 
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