TO OUR STOCKHOLDERS: Mueller's earnings rose 36 percent for the third quarter of 1995 compared with the same quarter of 1994. This is the fifth record quarter in a row and the 15th consecutive quarter of strong earnings performance. Earnings for the third quarter of 1995 were $11.6 million, or 60 cents per share, compared to earnings of $8.5 million or 45 cents per share for the same quarter of 1994. Net sales for the third quarter of 1995 totaled $171.5 million compared with sales of $138.0 million for the same quarter of 1994. Mueller's sales and earnings for the first three quarters of 1995 were the best ever in our Company's history. However, this reflects only part of the important developments taking place at our Company. Over the past 18 months, we have not only acquired plastic fittings manufacturing operations located in California and Michigan, but we have made significant progress toward implementation of three major internal capital improvement programs. Most companies our size would probably have undertaken only one, or perhaps two such programs at a time. We decided to tackle all of these simultaneously, in order to reduce our costs, accelerate our growth, and provide our customers with the best possible product, availability, and service. We are pleased to report that our copper tube modernization project and our new high-volume copper fittings plant, both in Fulton, Mississippi, should be substantially completed by the end of 1995. The Port Huron, Michigan indirect extrusion press project should be completed shortly thereafter. In addition, the ongoing modernization program at our copper fittings plant in Covington, Tennessee, is on schedule and we should see increasing benefits from this program by mid-1996. Needless to say, we expect to harvest substantial benefits from these capital programs in the years ahead. Last month, Mueller declared a two-for-one stock split of our common stock. The stock commenced trading on a post-split basis on October 2, 1995. Accordingly, all per share amounts in this report have been adjusted to reflect the results of this split. Also, we recently announced to our employees that our corporate headquarters will be relocated from Wichita, Kansas to Memphis, Tennessee by next spring. This move will place our corporate offices in closer proximity to our manufacturing facilities in Tennessee and Northern Mississippi. To achieve our desired results, our corporate management and staff must be positioned and structured to provide the fullest level of leadership and support to our operating businesses. We continue to be optimistic regarding the outlook for future business conditions in the housing industry. Long-term mortgage rates are low by historical standards and this generally translates into increased demand for housing. Sincerely, /s/ Harvey L. Karp Harvey L. Karp Chairman of the Board /s/ William D. O'Hagan William D. O'Hagan President and Chief Executive Officer October 18, 1995 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share data)
For the Quarter Ended September 30, September 24, 1995 1994 Net sales $ 171,549 $ 137,975 Costs and expenses 154,519 126,977 ----------- ----------- Operating income 17,030 10,998 Non operating income (expense), net (39) 1,035 ----------- ----------- Income before taxes 16,991 12,033 Income tax expense 5,386 3,515 ----------- ----------- Net income $ 11,605 $ 8,518 =========== =========== Earnings per common and common equivalent share: Primary $ 0.60 $ 0.45 =========== =========== Fully diluted $ 0.60 $ 0.45 =========== =========== For the Nine-Months Ended September 30, September 24, 1995 1994 Net sales $ 524,699 $ 395,363 Costs and expenses 477,451 366,996 ----------- ----------- Operating income 47,248 28,367 Non operating income (expense), net 25 (552) ----------- ----------- Income before taxes 47,273 27,815 Income tax expense 14,955 9,337 ----------- ----------- Net income $ 32,318 $ 18,478 =========== =========== Earnings per common and common equivalent share: Primary $ 1.69 $ 0.92 =========== =========== Fully diluted $ 1.68 $ 0.92 =========== ===========
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data)
September 30, December 31, 1995 1994 Assets Current assets $ 206,332 $ 183,551 Property, plant and equipment, net 220,315 196,772 Other assets 33,372 50,432 ----------- ----------- $ 460,019 $ 430,755 =========== =========== Liabilities and Stockholders' Equity Current liabilities $ 81,214 $ 67,221 Long-term debt 62,727 76,125 Other noncurrent liabilities 42,576 45,461 ----------- ----------- Total liabilities 186,517 188,807 ----------- ----------- Stockholders' equity: Common stock 200 100 Paid-in capital, common 254,056 254,251 Retained earnings since January, 1991 54,305 21,987 Cumulative translation adjustments (2,322) (2,832) Treasury common stock at cost (32,737) (31,558) ----------- ----------- Total stockholders' equity 273,502 241,948 ----------- ----------- $ 460,019 $ 430,755 =========== =========== Book value per share $ 15.78 $ 13.91 =========== ===========
DIRECTORS AND OFFICERS DIRECTORS Harvey L. Karp Chairman of the Board Mueller Industries, Inc. Robert B. Hodes (1) (3) Partner Willkie Farr & Gallagher Allan Mactier (1) (2) (3) Private Investor William D. O'Hagan President and Chief Executive Officer Mueller Industries, Inc. Robert J. Pasquarelli (1) (2) Chief Executive Officer of New Jersey Steel Corporation OFFICERS Harvey L. Karp Chairman of the Board William D. O'Hagan President and Chief Executive Officer Earl W. Bunkers Executive Vice President and Chief Financial Officer Harvey W. Clements Vice President and General Manager - Tube Division John B. Hansen Vice President and General Manager- Fittings Division William H. Hensley Vice President, General Counsel and Secretary Richard G. Miller Vice President and Chief Information Officer Lee R. Nyman Vice President - Manufacturing/ Management Engineering James H. Rourke Vice President and General Manager - Industrial Division Roy C. Harris Corporate Controller Kent A. McKee Treasurer and Assistant Secretary Mueller Industries, Inc./2959 N. Rock Road/Wichita, KS 67226/(316)636-6300 [FN] (1) Member of the Audit Committee (2) Member of the Compensation Committee (3) Member of the Nominating Committee EX-27.1 4 EXHIBIT 27.1 ARTICLE 5 FINANCIAL DATA SCHEDULES
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S FORM 10-Q FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000089439 MUELLER INDUSTRIES, INC. 1,000 9-MOS DEC-30-1995 SEP-30-1995 31,176 0 99,411 3,182 69,734 206,332 271,163 50,848 460,019 81,214 62,727 200 0 0 273,302 460,019 524,699 524,699 427,557 427,557 49,894 0 3,331 47,273 14,955 32,318 0 0 0 32,318 1.69 1.68