FOR IMMEDIATE RELEASE Contact: Kent A. McKee July 19, 1995 (316) 636-6300 MUELLER INDUSTRIES, INC. ANNOUNCES AN 85 PERCENT INCREASE IN SECOND QUARTER EARNINGS Wichita, KS - Mueller Industries, Inc. (NYSE: MLI) today reported net income for the quarter ended July 1, 1995 of $10.7 million or $1.12 per share, on 9,550,000 weighted average shares outstanding. This compared with net income for the second quarter of 1994 of $5.8 million, or 57 cents per share on 10,176,000 weighted average shares outstanding. Net sales for the second quarter of 1995 were $181.4 million compared with net sales of $136.6 million for the same quarter of 1994. For the first six months of 1995, net income was $20.7 million, or $2.18 per share, on net sales of $353.2 million. This compares with net income of $10.0 million, or 97 cents per share, on net sales of $257.4 million for the same period of 1994. Harvey L. Karp, Chairman, stated, "The first half of 1995 has clearly been the best six months in our company's history. It is noteworthy that our earnings growth was achieved despite a softening in the housing market in the first half of 1995. Today, the 30 year fixed mortgage rate is 7.4 percent, which is approximately 180 basis points lower than it was at the end of 1994. Historically, such low mortgage rates have stimulated home purchases as well as new home construction." Mr. Karp added, "We continue to make excellent progress on our major capital improvement programs which we expect to be completed by the end of this year. Thus far, we have realized only modest benefits from these capital programs, but in 1996, we expect to reap many more benefits." 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, a placer gold mining operation in Alaska, and other natural resource properties. MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data)
For the Quarter Ended For the Six-Months Ended July 1, June 25, July 1, June 25, 1995 1994 1995 1994 Net sales $181,380 $136,576 $353,150 $257,388 Cost of goods sold 149,587 112,445 290,147 212,230 Depreciation and amortization 3,763 3,175 7,409 5,875 Selling,general, and administrative expense 12,409 11,226 25,376 21,914 ------- ------- ------- ------- Operating income 15,621 9,730 30,218 17,369 Interest expense (1,134) (1,618) (2,511) (3,312) Environmental reserves - - - (412) Unusual items - (1,141) - (1,406) Other income, net 1,102 2,164 2,575 3,543 ------- ------- ------- ------- Income before taxes 15,589 9,135 30,282 15,782 Income tax expense (4,926) (3,357) (9,569) (5,822) ------- ------- ------- ------- Net income $ 10,663 $ 5,778 $ 20,713 $ 9,960 ======= ======= ======= ======= Net income per share: Primary: Average shares outstanding 9,550 10,176 9,506 10,302 ======= ======= ======= ======= Net income $ 1.12 $ 0.57 $ 2.18 $ 0.97 ======= ======= ======= ======= Fully diluted: Average shares outstanding 9,600 10,176 9,614 10,302 ======= ======= ======= ======= Net income $ 1.11 $ 0.57 $ 2.15 $ 0.97 ======= ======= ======= =======
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share data)
July 1, 1995 December 31, 1994 ASSETS Cash and cash equivalents $ 19,521 $ 34,492 Accounts receivable, net 99,308 66,925 Inventories 73,344 74,368 Other current assets 9,927 7,766 ------- ------- Total current assets 202,100 183,551 Property, plant and equipment, net 212,963 196,772 Other assets 38,970 50,432 ------- ------- $ 454,033 $ 430,755 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 18,079 $ 18,611 Accounts payable 29,329 21,607 Other current liabilities 31,835 27,003 ------- ------- Total current liabilities 79,243 67,221 Long-term debt 69,151 76,125 Other noncurrent liabilities 44,715 45,461 ------- ------- Total liabilities 193,109 188,807 Stockholders' equity 260,924 241,948 ------- ------- $ 454,033 $ 430,755 ======= ======= Book value per share $ 30.18 $ 27.81 ======= =======