FOR IMMEDIATE RELEASE Contact: Kent A. McKee October 14, 1994 (316) 636-6300 MUELLER INDUSTRIES, INC. ANNOUNCES IMPROVED THIRD QUARTER EARNINGS Wichita, KS - Mueller Industries, Inc. (NYSE: MLI) today reported net income for the quarter ended September 24, 1994 of $8.5 million or 90 cents per share, on 9,499,000 weighted average shares outstanding. This compared with net income for the third quarter of 1993 of $5.6 million, or 54 cents per share on 10,473,000 weighted average shares outstanding. Net sales for the third quarter of 1994 were $138.0 million compared with net sales of $122.1 million for the same quarter of 1993. During the third quarter, the Company adopted the last-in, first-out (LIFO) method of accounting for the copper component of its inventories. This change in accounting principle is retroactive to the beginning of fiscal 1994, which required the restatement of the first and second quarter results. The LIFO method should mitigate the income statement effect of copper price fluctuations by more closely matching current costs with current selling prices. For the first nine months of 1994, net income was $18.5 million, or $1.84 per share, on net sales of $395.4 million, which compares with net income of $15.2 million, or $1.45 per share on net sales of $380.5 million for the same period of 1993. The results for the first nine months of 1994 include the first and second quarter effect of restating income for adoption of the LIFO method. Also, earnings were favorably effected by the sale of selected natural resource assets and lower state and federal income tax provisions. Harvey L. Karp, Chairman, stated, "We believe business will remain strong for the balance of 1994. Demand for housing continues to be vigorous and that is good for our business." Mueller Industries, Inc. is a leading and diversified fabricator whose products include copper tube and fittings; brass and copper alloy rods, bars and shapes; brass and bronze forgings; aluminum and copper impact extrusions; plastic fittings and valves; and refrigeration valves, driers and flare fittings. The Company also owns a short line railroad in Utah and natural resource properties in the Western United States, Alaska and Canada. MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data)
For the Quarter Ended For the Nine-Months Ended Sep. 24, Sep. 25, Sep. 24, Sep. 25, 1994 1993 1994 1993 Net sales $137,975 $122,106 $395,363 $380,464 Costs and expenses 126,977 112,602 366,996 353,132 ------- ------- ------- ------- Operating income 10,998 9,504 28,367 27,332 Non operating income (expense), net 1,035 (494) (552) (2,628) ------- ------- ------- ------- Income before taxes 12,033 9,010 27,815 24,704 Income tax expense 3,515 3,375 9,337 9,544 ------- ------- ------- ------- Net income $ 8,518 $ 5,635 $ 18,478 $ 15,160 ======= ======= ======= ======= Earnings per common and common equivalent share: Primary $ .90 $ .54 $ 1.84 $ 1.45 ======= ======= ======= ======= Fully diluted $ .90 $ .54 $ 1.84 $ 1.44 ======= ======= ======= =======
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share data)
Sep. 24, 1994 Dec. 25, 1993 ASSETS Cash and cash equivalents $ 39,832 $ 77,336 Accounts receivable, net 69,303 59,197 Inventories 64,656 53,118 Other current assets 4,713 4,760 ------- ------- Total current assets 178,504 194,411 Property, plant and equipment, net 173,869 154,403 Other assets 76,011 20,929 ------- ------- $ 428,384 $ 369,743 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 17,817 $ 8,391 Accounts payable 22,025 15,637 Other current liabilities 31,739 26,878 ------- ------- Total current liabilities 71,581 50,906 Long-term debt 83,657 54,320 Other noncurrent liabilities 39,873 42,403 ------- ------- Total liabilities 195,111 147,629 Stockholders' equity 233,273 222,114 ------- ------- $ 428,384 $ 369,743 ======= ======= Book value per share $ 26.82 $ 23.18 ======= =======