FOR IMMEDIATE RELEASE Contact: Kent A. McKee October 16, 1996 (901) 753-3208 MUELLER INDUSTRIES, INC. ANNOUNCES THIRD QUARTER EARNINGS INCREASED BY 39 PERCENT Memphis, TN - Mueller Industries, Inc. (NYSE MLI) today reported a 39 percent increase in net income for the third quarter of 1996 compared with the same quarter of 1995. Gross profit, operating income, net income, and earnings per share all reached record levels. Earnings for the third quarter of 1996 were $16.2 million, or 83 cents per share, compared to earnings of $11.6 million, or 60 cents per share, for the same quarter of 1995. Average shares outstanding totaled 19,520,000 in 1996 and 19,263,000 in 1995. Product shipments totaled 113.1 million pounds in the third quarter of 1996, or 24 percent more than in the same period of 1995. Net sales for the third quarter were $176.0 million in 1996 compared to $171.5 million in 1995. During the third quarter period, the average COMEX copper price was 91 cents per pound in 1996 and $1.36 per pound in 1995. This reduction in the average COMEX copper price affected the dollar amount of net sales; however, as noted above, unit sales substantially increased. For the first nine-months of 1996, the Company posted earnings of $43.4 million, or $2.23 per share, on net sales of $546.1 million. For the comparable nine-month period in 1995, earnings were $32.3 million, or $1.69 per share, on net sales of $524.7 million. Harvey L. Karp, Chairman, stated, "Mueller's manufacturing operations continue to show excellent improvement. The improvement, in part, reflects increased yield and productivity at our plants as we continue to realize incremental benefits from our $100 million investment in major capital improvements. Further implementation and refinement of these capital programs should result in additional benefits for the future as we satisfy the continuing strong demand for our products." 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 September 28, September 30, 1996 1995 Net sales $ 175,991 $ 171,549 Costs of goods sold 133,204 137,410 Depreciation and amortization 4,697 4,098 Selling, general, and administrative expense 12,809 13,011 ----------- ----------- Operating income 25,281 17,030 Interest expense (1,400) (820) Environmental reserves (1,945) (955) Other income, net 1,424 1,736 ----------- ----------- Income before income taxes 23,360 16,991 Income tax expense (7,178) (5,386) ----------- ----------- Net income $ 16,182 $ 11,605 =========== =========== Net income per share: Primary: Average shares outstanding 19,520 19,263 Net income $ 0.83 $ 0.60 =========== =========== Fully diluted: Average shares outstanding 19,550 19,263 Net income $ 0.83 $ 0.60 =========== ===========
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data)
For the Nine-Months Ended September 28, September 30, 1996 1995 Net sales $ 546,063 $ 524,699 Costs of goods sold 426,272 427,557 Depreciation and amortization 13,718 11,507 Selling, general, and administrative expense 41,632 38,387 ----------- ----------- Operating income 64,441 47,248 Interest expense (4,113) (3,331) Environmental reserves (1,945) (955) Other income (expense), net 4,364 4,311 ----------- ----------- Income before income taxes 62,747 47,273 Income tax expense (19,376) (14,955) ----------- ----------- Net income $ 43,371 $ 32,318 =========== =========== Net income per share: Primary: Average shares outstanding 19,477 19,115 Net income $ 2.23 $ 1.69 =========== =========== Fully diluted: Average shares outstanding 19,534 19,256 Net income $ 2.22 $ 1.68 =========== ===========
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share data)
September 28, 1996 December 30, 1995 ASSETS Cash and cash equivalents $ 77,528 $ 48,357 Accounts receivable, net 104,468 83,712 Inventories 69,692 66,360 Other current assets 12,882 12,609 --------- --------- Total current assets 264,570 211,038 Property, plant and equipment, net 221,171 221,012 Other assets 16,681 18,785 --------- --------- $ 502,422 $ 450,835 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 15,234 $ 16,249 Accounts payable 22,069 16,931 Other current liabilities 45,032 34,704 --------- --------- Total current liabilities 82,335 67,884 Long-term debt 51,327 59,653 Other noncurrent liabilities 37,800 37,423 --------- --------- Total liabilities 171,462 164,960 Minority interest in subsidiaries 459 - Stockholders' equity 330,501 285,875 --------- --------- $ 502,422 $ 450,835 ========= =========