Mueller Industries, Inc. Reports Third Quarter 2024 Earnings

COLLIERVILLE, Tenn., October 22, 2024 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2024. Comparisons are to the third quarter of 2023.

•Net Sales of $997.8 million versus $819.8 million

•Operating Income of $206.7 million versus $181.0 million

•Earnings Before Taxes of $217.8 million versus $189.0 million

•Net Income of $168.7 million versus $132.7 million

•Diluted EPS of $1.48 versus $1.171

Third Quarter Financial and Operating Highlights:

•COMEX copper averaged $4.23 per pound during the quarter, 12.0% higher than in the third quarter of 2023.

•The increase in net sales was attributable to the inclusion of $102.4 million of sales from recently acquired businesses, as well as the higher copper prices.

•Selling, general, and administrative expenses increased primarily due to the inclusion of $3.9 million of operating costs from recently acquired businesses, as well as $2.7 million in transaction related expenses.

•Investments in unconsolidated affiliates contributed $3.2 million of income, as compared with a $2.4 million loss in the prior year period.

•Net cash generated from operations was $231.4 million. Our cash and short-term investments balance was $969.6 million at quarter end, and our current ratio remains strong at 4.9 to 1.

Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “We continued to deliver very good results, and generated significant cash despite generally restrained business conditions during the quarter. We also made substantial progress toward integrating our two recently acquired businesses, which both contributed positively to our results.”

He continued, “We anticipate that declining interest rates and moderating inflation, combined with the resolution of election related uncertainty, will create a more stable and favorable environment for us. We have an excellent portfolio of businesses serving essential markets; our operations are well capitalized; our balance sheet is strong; and we have proven capable of quickly adjusting and adapting as conditions

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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require. As such, we remain well positioned to take advantage when conditions improve, and will continue to actively pursue new opportunities to expand and grow.”

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 Nine Months Ended
(In thousands, except per share data)						September 28, 2024						September 30, 2023						September 28, 2024						September 30, 2023
Net sales						$	997,831					$	819,792					$	2,845,230					$	2,687,968
Cost of goods sold						722,469						579,058						2,056,162						1,897,128
Depreciation and amortization						11,710						9,631						30,897						30,704
Selling, general, and administrative expense						59,619						48,295						161,993						156,988
Gain on sale of assets						(2,667)						—						(3,953)						—
Gain on sale of business						—						(4,137)						—						(4,137)
Asset impairments						—						5,934						—						5,934
Gain on insurance settlement						—						—						—						(19,466)
Operating income						206,700						181,011						600,131						620,817
Interest expense						(113)						(230)						(335)						(508)
Interest income						11,145						10,599						42,773						24,566
Realized and unrealized gains (losses) on short-term investments						164						(2,368)						529						20,362
Other (expense) income, net						(122)						(47)						(848)						2,120
Income before income taxes						217,774						188,965						642,250						667,357
Income tax expense						(49,188)						(50,843)						(159,406)						(174,322)
Income (loss) from unconsolidated affiliates, net of foreign tax						3,197						(2,413)						(5,905)						(2,682)
Consolidated net income						171,783						135,709						476,939						490,353
Net income attributable to noncontrolling interests						(3,084)						(3,000)						(9,712)						(6,694)
Net income attributable to Mueller Industries, Inc.						$	168,699					$	132,709					$	467,227					$	483,659
Weighted average shares for basic earnings per share (1)						111,363						111,416						111,332						111,374
Effect of dilutive stock-based awards (1)						2,412						2,452						2,635						2,182
Adjusted weighted average shares for diluted earnings per share (1)						113,775						113,868						113,967						113,556
Basic earnings per share (1)						$	1.51					$	1.19					$	4.20					$	4.34
Diluted earnings per share (1)						$	1.48					$	1.17					$	4.10					$	4.26
Dividends per share (1)						$	0.20					$	0.15					$	0.60					$	0.45
(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 Nine Months Ended
(In thousands)						September 28, 2024						September 30, 2023						September 28, 2024						September 30, 2023
Summary Segment Data:
Net sales:
Piping Systems Segment						$	653,884					$	568,151					$	1,932,521					$	1,868,635
Industrial Metals Segment						238,014						141,012						589,422						452,512
Climate Segment						128,482						119,949						375,824						396,857
Elimination of intersegment sales						(22,549)						(9,320)						(52,537)						(30,036)
Net sales						$	997,831					$	819,792					$	2,845,230					$	2,687,968
Operating income:
Piping Systems Segment						$	163,601					$	140,609					$	468,539					$	455,605
Industrial Metals Segment						24,197						16,221						78,161						61,407
Climate Segment						40,768						34,846						112,336						145,901
Unallocated income (expenses)						(21,866)						(10,665)						(58,905)						(42,096)
Operating income						$	206,700					$	181,011					$	600,131					$	620,817

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

						(Unaudited)
(In thousands)						September 28, 2024						December 30, 2023
ASSETS
Cash and cash equivalents						$	965,116					$	1,170,893
Short-term investments						4,449						98,146
Accounts receivable, net						500,617						351,561
Inventories						400,252						380,248
Other current assets						45,144						39,173
Total current assets						1,915,578						2,040,021
Property, plant, and equipment, net						506,234						385,165
Operating lease right-of-use assets						32,202						35,170
Other assets						752,118						298,945
Total assets						$	3,206,132					$	2,759,301
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt						$	927					$	796
Accounts payable						183,511						120,485
Current portion of operating lease liabilities						7,681						7,893
Other current liabilities						201,874						187,964
Total current liabilities						393,993						317,138
Long-term debt						19						185
Pension and postretirement liabilities						12,082						12,062
Environmental reserves						14,696						15,030
Deferred income taxes						24,663						19,134
Noncurrent operating lease liabilities						24,504						26,683
Other noncurrent liabilities						27,539						10,353
Total liabilities						497,496						400,585
Total Mueller Industries, Inc. stockholders’ equity						2,678,382						2,337,445
Noncontrolling interests						30,254						21,271
Total equity						2,708,636						2,358,716
Total liabilities and equity						$	3,206,132					$	2,759,301

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

						For the Nine Months Ended
(In thousands)						September 28, 2024						September 30, 2023
Cash flows from operating activities
Consolidated net income						$	476,939					$	490,353
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization						31,140						31,053
Stock-based compensation expense						19,956						17,268
Provision for doubtful accounts receivable						(262)						(63)
Loss from unconsolidated affiliates						5,905						2,682
Dividends from unconsolidated affiliates						4,130						—
Insurance proceeds - noncapital related						15,000						9,854
Gain on disposals of properties						(3,953)						(106)
Gain on sale of business						—						(4,137)
Unrealized gain on short-term investments						(164)						(18,449)
Gain on sales of securities						(365)						—
Impairment charges						—						5,934
Gain on insurance settlement						—						(19,466)
Deferred income tax expense						1,837						3,803
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables						(99,281)						(36,855)
Inventories						34,027						53,372
Other assets						(3,175)						(12,897)
Current liabilities						25,303						(25,503)
Other liabilities						(2,467)						(1,828)
Other, net						1,217						3,475
Net cash provided by operating activities						$	505,787					$	498,490
Cash flows from investing activities
Capital expenditures						$	(51,288)					$	(39,469)
Acquisition of businesses, net of cash acquired						(602,692)						—
Investments in unconsolidated affiliates						(8,700)						(3,999)
Insurance proceeds - capital related						—						24,646
Purchase of short-term investments						(4,285)						(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						98,465						—
Issuance of notes receivable						(3,800)						—
Proceeds from sales of properties						9,026						214
Dividends from unconsolidated affiliates						—						1,093
Net cash (used in) provided by investing activities						$	(571,250)					$	94,117

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
						For the Nine Months Ended
(In thousands)						September 28, 2024						September 30, 2023
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.						$	(66,796)					$	(50,133)
Repurchase of common stock						(48,681)						(19,303)
Repayments of debt						(167)						(185)
Issuance (repayment) of debt by consolidated joint ventures, net						144						(265)
Net cash used to settle stock-based awards						(22,946)						(9,113)
Net cash used in financing activities						$	(138,446)					$	(78,999)
Effect of exchange rate changes on cash						(4,709)						2,312
(Decrease) increase in cash, cash equivalents, and restricted cash						(208,618)						515,920
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						$	965,605					$	981,216

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