|
·
|
“Our
financial condition remains strong, and, in fact, improved in the second
quarter. We ended the quarter with $334.0 million in cash and
$581.2 million in working capital.
|
|
·
|
“Total
stockholders’ equity attributable to Mueller was $719.3 million which
equates to a book value per share of $19.37 of which $8.99 per share is in
cash.
|
|
·
|
“Our
current ratio remains solid at 4.6 to 1, and our financial leverage is
conservative with a debt to total capitalization ratio of 18.9
percent.
|
|
·
|
“Our
Plumbing & Refrigeration segment posted operating earnings of $11.9
million on net sales of $229.8 million which compares with prior year
earnings of $35.4 million on net sales of $404.4
million. Operating results were adversely affected by lower
spreads and unit shipments.
|
|
·
|
“Our
OEM segment posted operating earnings of $8.1 million during the second
quarter of 2009 on net sales of $139.9 million, which compares with
operating earnings of $19.0 million on net sales of $354.0 million for the
same period in 2008.
|
|
·
|
“The
Comex average price of copper was $2.15 per pound in the second quarter of
2009, which compares with $3.80 in the second quarter of
2008.
|
|
·
|
“During
the first half of 2009, capital expenditures totaled $8.7 million.
“
|
For
the Quarter
|
For
the Six Months
|
|||||||||||||||
Ended
|
Ended
|
|||||||||||||||
June
27,
|
June
28,
|
June
27,
|
June
28,
|
|||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net
sales
|
$ | 367,800 | $ | 753,471 | $ | 694,358 | $ | 1,457,579 | ||||||||
Cost
of goods sold
|
313,353 | 661,209 | 600,736 | 1,273,006 | ||||||||||||
Depreciation
and amortization
|
10,355 | 11,004 | 20,835 | 21,988 | ||||||||||||
Selling,
general, and administrative expense
|
30,316 | 34,618 | 61,474 | 72,909 | ||||||||||||
Operating
income
|
13,776 | 46,640 | 11,313 | 89,676 | ||||||||||||
Interest
expense
|
(2,482 | ) | (5,238 | ) | (5,118 | ) | (10,705 | ) | ||||||||
Other
income, net
|
385 | 1,961 | 1,012 | 6,530 | ||||||||||||
Income
before income taxes
|
11,679 | 43,363 | 7,207 | 85,501 | ||||||||||||
Income
tax expense
|
(5,512 | ) | (15,339 | ) | (3,550 | ) | (29,570 | ) | ||||||||
Consolidated
net income
|
6,167 | 28,024 | 3,657 | 55,931 | ||||||||||||
Less:
net income attributable to noncontrolling interest
|
(139 | ) | (1,010 | ) | (121 | ) | (1,562 | ) | ||||||||
Net
income attributable to Mueller Industries, Inc.
|
$ | 6,028 | $ | 27,014 | $ | 3,536 | $ | 54,369 | ||||||||
Weighted
average shares for basic earnings per share
|
37,143 | 37,119 | 37,143 | 37,108 | ||||||||||||
Effect
of dilutive stock options
|
120 | 340 | 97 | 269 | ||||||||||||
Adjusted
weighted average shares for diluted earnings per share
|
37,263 | 37,459 | 37,240 | 37,377 | ||||||||||||
Basic
earnings per share
|
$ | 0.16 | $ | 0.73 | $ | 0.10 | $ | 1.47 | ||||||||
Diluted
earnings per share
|
$ | 0.16 | $ | 0.72 | $ | 0.09 | $ | 1.45 | ||||||||
Dividends
per share
|
$ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | ||||||||
Summary Segment Data:
|
||||||||||||||||
Net
sales:
|
||||||||||||||||
Plumbing
& Refrigeration Segment
|
$ | 229,763 | $ | 404,414 | $ | 420,156 | $ | 788,298 | ||||||||
OEM
Segment
|
139,885 | 353,988 | 278,277 | 680,195 | ||||||||||||
Elimination
of intersegment sales
|
(1,848 | ) | (4,931 | ) | (4,075 | ) | (10,914 | ) | ||||||||
Net
sales
|
$ | 367,800 | $ | 753,471 | $ | 694,358 | $ | 1,457,579 | ||||||||
Operating
income:
|
||||||||||||||||
Plumbing
& Refrigeration Segment
|
$ | 11,882 | $ | 35,370 | $ | 22,213 | $ | 60,454 | ||||||||
OEM
Segment
|
8,052 | 18,963 | 1,786 | 44,537 | ||||||||||||
Unallocated
expenses
|
(6,158 | ) | (7,693 | ) | (12,686 | ) | (15,315 | ) | ||||||||
Operating
income
|
$ | 13,776 | $ | 46,640 | $ | 11,313 | $ | 89,676 |
June
27,
|
December
27,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 333,959 | $ | 278,860 | ||||
Accounts
receivable, net
|
207,238 | 219,035 | ||||||
Inventories
|
169,118 | 210,609 | ||||||
Other
current assets
|
32,033 | 46,322 | ||||||
Total
current assets
|
742,348 | 754,826 | ||||||
Property,
plant, and equipment, net
|
268,017 | 276,927 | ||||||
Other
assets
|
151,537 | 151,160 | ||||||
$ | 1,161,902 | $ | 1,182,913 | |||||
LIABILITIES
AND EQUITY
|
||||||||
Current
portion of debt
|
$ | 9,629 | $ | 24,184 | ||||
Accounts
payable
|
59,871 | 63,732 | ||||||
Other
current liabilities
|
91,678 | 113,668 | ||||||
Total
current liabilities
|
161,178 | 201,584 | ||||||
Long-term
debt, less current portion
|
158,226 | 158,726 | ||||||
Pension
and postretirement liabilities
|
39,688 | 38,452 | ||||||
Environmental
reserves
|
23,352 | 23,248 | ||||||
Deferred
income taxes
|
33,496 | 33,940 | ||||||
Other
noncurrent liabilities
|
1,417 | 1,698 | ||||||
Total
liabilities
|
417,357 | 457,648 | ||||||
Total
Mueller Industries, Inc. stockholders' equity
|
719,339 | 700,683 | ||||||
Noncontrolling
interest
|
25,206 | 24,582 | ||||||
Total
equity
|
744,545 | 725,265 | ||||||
$ | 1,161,902 | $ | 1,182,913 |
For the Six Months Ended
|
||||||||
June
27,
|
June
28,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
Operating
activities:
|
||||||||
Net
income attributable to Mueller Industries, Inc.
|
$ | 3,536 | $ | 54,369 | ||||
Reconciliation
of net income attributable to Mueller Industries, Inc. to net cash
provided by operating activities:
|
||||||||
Depreciation
and amortization
|
20,946 | 22,323 | ||||||
Gain
on early retirement of debt
|
(128 | ) | (2,482 | ) | ||||
Net
income attributable to noncontrolling interest
|
121 | 1,562 | ||||||
Stock-based
compensation expense
|
1,220 | 1,479 | ||||||
Loss
on disposal of properties
|
260 | 341 | ||||||
Deferred
income taxes
|
(136 | ) | 130 | |||||
Income
tax benefit from exercise of stock options
|
- | (69 | ) | |||||
Changes
in assets and liabilities:
|
||||||||
Receivables
|
16,831 | (66,599 | ) | |||||
Inventories
|
45,209 | 7,489 | ||||||
Other
assets
|
1,059 | (2,321 | ) | |||||
Current
liabilities
|
(21,741 | ) | (12,757 | ) | ||||
Other
liabilities
|
(546 | ) | 1,342 | |||||
Other,
net
|
(101 | ) | (1,167 | ) | ||||
Net
cash provided by operating activities
|
66,530 | 3,640 | ||||||
Investing
activities:
|
||||||||
Capital
expenditures
|
(8,725 | ) | (14,833 | ) | ||||
Net
withdrawals from (deposits into) restricted cash balances
|
13,039 | (632 | ) | |||||
Proceeds
from sales of properties
|
606 | - | ||||||
Net
cash provided by (used in) investing activities
|
4,920 | (15,465 | ) | |||||
Financing
activities:
|
||||||||
Repayments
of long-term debt
|
(370 | ) | (23,605 | ) | ||||
Dividends
paid to stockholders of Mueller Industries, Inc.
|
(7,428 | ) | (7,421 | ) | ||||
Dividends
paid to noncontrolling interests
|
(1,449 | ) | - | |||||
(Repayment)
issuance of debt by joint venture, net
|
(14,567 | ) | 5,411 | |||||
Issuance
of shares under incentive stock option plans from treasury
|
- | 1,055 | ||||||
Income
tax benefit from exercise of stock options
|
- | 69 | ||||||
Acquisition
of treasury stock
|
- | (13 | ) | |||||
Net
cash used in financing activities
|
(23,814 | ) | (24,504 | ) | ||||
Effect
of exchange rate changes on cash
|
7,463 | 1,331 | ||||||
Increase
(decrease) in cash and cash equivalents
|
55,099 | (34,998 | ) | |||||
Cash
and cash equivalents at the beginning of the period
|
278,860 | 308,618 | ||||||
Cash
and cash equivalents at the end of the period
|
$ | 333,959 | $ | 273,620 |