FOR IMMEDIATE RELEASE Contact: Kent A. McKee July 18, 1996 (901) 753-3208 MUELLER INDUSTRIES, INC. ANNOUNCES A 30 PERCENT INCREASE IN SECOND QUARTER EARNINGS Memphis, TN - Mueller Industries, Inc. (NYSE: MLI) today reported net income for the quarter ended June 29, 1996 of $13.9 million or 71 cents per share, on 19,525,000 weighted average shares outstanding. This compared with net income for the second quarter of 1995 of $10.7 million, or 56 cents per share on 19,099,000 weighted average shares outstanding. Net sales for the second quarter of 1996 were $189.6 million compared with net sales of $181.4 million for the same quarter of 1995. For the first six months of 1996, net income was $27.2 million, or $1.40 per share, on net sales of $370.1 million. This compared with net income of $20.7 million, or $1.09 per share, on net sales of $353.2 million for the same period of 1995. Harvey L. Karp, Chairman, stated, "Our manufacturing operations showed excellent improvement during the second quarter. We were particularly pleased with the results of our plastic products business. We continue to refine the implementation of our major capital improvement programs which should result in increased productivity, efficiency, and yield. Mueller's business is currently strong, and we believe it will remain so provided interest rates do not spike upwards. Although long-term mortgage rates have recently moved up, they are still quite attractive by historical standards." Mueller Industries, Inc. is a leading and diversified fabricator whose products include copper tube and fittings; brass and copper alloy rods, bars and shapes; aluminum and brass 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 June 29, July 1, June 29, July 1, 1996 1995 1996 1995 Net sales $189,557 $181,380 $370,072 $353,150 Cost of goods sold 149,536 149,587 293,068 290,147 Depreciation and amortization 4,571 3,763 9,021 7,409 Selling, general, and administrative expense 14,919 12,409 28,823 25,376 ------- ------- ------- ------- Operating income 20,531 15,621 39,160 30,218 Interest expense (1,473) (1,134) (2,713) (2,511) Other income, net 1,060 1,102 2,940 2,575 ------- ------- ------- ------- Income before taxes 20,118 15,589 39,387 30,282 Income tax expense (6,221) (4,926) (12,198) (9,569) ------- ------- ------- ------- Net income $ 13,897 $ 10,663 $ 27,189 $ 20,713 ======= ======= ======= ======= Net income per share: Primary: Average shares outstanding 19,525 19,099 19,457 19,012 ======= ======= ======= ======= Net income $ 0.71 $ 0.56 $ 1.40 $ 1.09 ======= ======= ======= ======= Fully diluted: Average shares outstanding 19,550 19,201 19,550 19,227 ======= ======= ======= ======= Net income $ 0.71 $ 0.56 $ 1.39 $ 1.08 ======= ======= ======= =======
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share data)
June 29, 1996 December 30, 1995 ASSETS Cash and cash equivalents $ 52,804 $ 48,357 Accounts receivable, net 107,218 83,712 Inventories 68,379 66,360 Other current assets 15,956 12,609 ------- ------- Total current assets 244,357 211,038 Property, plant and equipment, net 223,699 221,012 Other assets 16,084 18,785 ------- ------- $ 484,140 $ 450,835 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 16,177 $ 16,249 Accounts payable 24,479 16,931 Other current liabilities 41,460 34,704 ------- ------- Total current liabilities 82,116 67,884 Long-term debt 52,900 59,653 Other noncurrent liabilities 35,495 37,423 ------- ------- Total liabilities 170,511 164,960 Minority interest in subsidiares 325 - Stockholders' equity 313,304 285,875 ------- ------- $ 484,140 $ 450,835 ======= ======= Book value per share $ 18.02 $ 16.48 ======= =======