MEMPHIS, Tenn., July 22, 2014 -- Mueller Industries, Inc. (NYSE: MLI) announced today net income of $35.0 million, or 62 cents per diluted share, for the second quarter of 2014.  This compares with net income from normal operations in the second quarter of 2013 of $25.5 million, or 45 cents per diluted share.  During the second quarter of 2013, the Company also recognized an after-tax gain of $65.6 million, or $1.17 per diluted share, on the settlement of an insurance claim.  Diluted earnings per share for 2013 have been adjusted to reflect a 2-for-1 stock split that was effected during the first quarter of 2014. 

Net sales for the second quarter were $649.7 million compared with $582.3 million for the same quarter of the prior year representing an increase of 11.6 percent.  Sales were positively impacted by a 15.9 percent increase in unit volumes, partially offset by a 4.6 percent reduction in copper prices in the second quarter of 2014 compared with the same period of the prior year.  Copper prices averaged $3.10 per pound in the second quarter of 2014 compared with $3.25 per pound in the same period of 2013.

Financial highlights for the second quarter of 2014:

  • Acquired businesses contributed 10.8 percent of the overall 15.9 percent increase in unit volumes.
  • The effective tax rate for the quarter reflects a reduction in valuation allowances previously recorded against certain state tax credits.
  • Results include $2.4 million of severance and other charges related to the U.K. copper tube business acquired in the first quarter of 2014.   
  • Quarter end cash totaled $242.2 million equal to $4.27 per share.
  • Stockholders' equity was $760.8 million, which equates to a book value per share of $13.42.
  • Debt to total capitalization ratio was 25.1 percent and the current ratio was 3.5 to 1.

Regarding the outlook, Greg Christopher, CEO said, "Despite the lack of supportive market conditions, we are pleased with how our businesses continue to improve.  Although there are fluctuations in building construction metrics the overall direction seems to be improving and we anticipate the same will continue into the second half of the year."

Mueller Industries, Inc. is a leading manufacturer of copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products.  Mueller's operations are located throughout the United States and in Canada, Mexico, Great Britain, and China.  Mueller's business is importantly linked to: (1) the construction of new homes; (2) the improvement and reconditioning of existing homes and structures; and (3) the commercial construction market that includes office buildings, factories, hotels, hospitals, etc.

*********************


Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties.  These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," and similar expressions are intended to identify forward-looking statements.  The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report.  The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

CONTACT
Jeffrey A. Martin
(901)753-3226


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

For the Quarter Ended For the Six Months Ended
(In thousands, except per share data) June 28,
2014		 June 29,
2013		 June 28,
2014		 June 29,
2013
Net sales $ 649,691 $ 582,282 $ 1,224,065 $ 1,141,972
Cost of goods sold 557,775 501,125 1,053,552 983,975
Depreciation and amortization 8,592 8,328 16,699 16,482
Selling, general, and administrative expense 35,120 34,814 67,303 66,157
Insurance settlement - (106,332 ) - (106,332 )
Operating income 48,204 144,347 86,511 181,690
Interest expense (1,457 ) (1,101 ) (2,483 ) (1,697 )
Other income, net 127 319 215 3,482
Income before income taxes 46,874 143,565 84,243 183,475
Income tax expense (11,665 ) (51,723 ) (24,080 ) (65,199 )
Consolidated net income 35,209 91,842 60,163 118,276
Net income attributable to
  noncontrolling interest		 (164 ) (692 ) (412 ) (924 )
Net income attributable to
  Mueller Industries, Inc.		 $ 35,045 $ 91,150 $ 59,751 $ 117,352
Weighted average shares for basic
  earnings per share		 55,973 55,681 55,946 55,663
Effect of dilutive stock-based awards 747 740 800 744
Adjusted weighted average shares for diluted
  earnings per share		 56,720 56,421 56,746 56,407
Basic earnings per share $ 0.63 $ 1.64 $ 1.07 $ 2.11
Diluted earnings per share $ 0.62 $ 1.62 $ 1.05 $ 2.08
Dividends per share $ 0.075 $ 0.0625 $ 0.150 $ 0.125
Summary Segment Data:
Net sales:
    Plumbing & Refrigeration Segment $ 397,190 $ 328,673 $ 735,217 $ 640,487
    OEM Segment 255,409 257,044 495,439 510,831
    Elimination of intersegment sales (2,908 ) (3,435 ) (6,591 ) (9,346 )
Net sales $ 649,691 $ 582,282 $ 1,224,065 $ 1,141,972
Operating income:
    Plumbing & Refrigeration Segment $ 32,330 $ 129,810 $ 56,215 $ 152,437
    OEM Segment 23,216 20,939 44,502 41,262
    Unallocated expenses (7,342 ) (6,402 ) (14,206 ) (12,009 )
Operating income $ 48,204 $ 144,347 $ 86,511 $ 181,690


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands) June 28,
2014		 December 28, 2013
ASSETS
Cash and cash equivalents $ 242,199 $ 311,800
Accounts receivable, net 367,299 271,847
Inventories 291,138 251,716
Other current assets 45,410 39,354
    Total current assets 946,046 874,717
Property, plant, and equipment, net 245,441 244,457
Other assets 158,371 128,593
$ 1,349,858 $ 1,247,767
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt $ 60,328 $ 29,083
Accounts payable 101,671 80,897
Other current liabilities 106,154 109,276
    Total current liabilities 268,153 219,256
Long-term debt 205,750 206,250
Pension and postretirement liabilities 26,818 27,426
Environmental reserves 21,661 22,144
Deferred income taxes 33,226 35,975
Other noncurrent liabilities 1,306 849
    Total liabilities 556,914 511,900
Total Mueller Industries, Inc. stockholders' equity 760,823 703,405
Noncontrolling interest 32,121 32,462
    Total equity 792,944 735,867
$ 1,349,858 $ 1,247,767


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Six Months Ended
 (In thousands) June 28,
2014		 June 29,
2013
Cash flows from operating activities
  Consolidated net income $ 60,163 $ 118,276
  Reconciliation of consolidated net income to net cash (used in)
    provided by operating activities:
      Depreciation and amortization 16,840 16,649
      Stock-based compensation expense 3,526 3,326
      Insurance settlement - (106,332 )
      Insurance proceeds - noncapital related - 32,395
      Gain on disposal of properties (1,225 ) (2,984 )
      Deferred income taxes (6,523 ) 12,468
      Income tax benefit from exercise of stock options (316 ) (95 )
      Changes in assets and liabilities, net of business acquired
        Receivables (100,413 ) (35,095 )
        Inventories (20,619 ) 4,705
        Other assets (8,886 ) (306 )
        Current liabilities 7,373 6,150
        Other liabilities (893 ) (423 )
        Other, net 92 420
Net cash (used in) provided by operating activities (50,881 ) 49,154
Cash flows from investing activities
  Capital expenditures (18,833 ) (21,687 )
 Business acquired, net of cash acquired (30,137 ) -
  Insurance proceeds for property and equipment - 29,910
  Net withdrawals from (deposits into) restricted cash balances 1,815 (4,721 )
  Proceeds from the sales of properties 4,874 3,016
Net cash (used in) provided by investing activities (42,281 ) 6,518
Cash flows from financing activities
  Repayments of long-term debt (500 ) (500 )
  Dividends paid to stockholders of Mueller Industries, Inc. (8,394 ) (6,960 )
  Debt issuance cost - (50 )
 Issuance of debt 22,635 -
  Issuance (repayment) of debt by joint venture, net 8,903 15,544
  Net cash received to settle stock-based awards 296 260
 Repurchase of common stock (58 ) -
  Income tax benefit from exercise of stock options 316 95
Net cash provided by financing activities 23,198 8,389
Effect of exchange rate changes on cash 363 (1,328 )
(Decrease) increase in cash and cash equivalents (69,601 ) 62,733
Cash and cash equivalents at the beginning of the period 311,800 198,934
Cash and cash equivalents at the end of the period $ 242,199 $ 261,667


MUELLER INDUSTRIES, INC.
Reconciliation of Net Income as Reported to Pro forma Without Insurance Settlement
(Unaudited)

Earnings attributable to normal operations without the insurance settlement is a measurement not derived in accordance with generally accepted accounting principles (GAAP).  Excluding the insurance settlement is useful as it measures the operating results that are the outcome of daily operating decisions made in the normal course of business.  The insurance settlement was related to a 2011 claim at the Company's Wynne, Arkansas, manufacturing operations.  Reconciliation of earnings attributable to normal operations without the insurance settlement to net income as reported is as follows:

For the Quarter Ended
June 29, 2013
(In thousands, except per share data) As
Reported		 Impact of
Insurance
Settlement		 Pro forma
Without
Insurance
Settlement
Operating income $ 144,347 $ 106,332 $ 38,015
Interest expense (1,101 ) - (1,101 )
Other income, net 319 - 319
Income before income taxes 143,565 106,332 37,233
Income tax expense (51,723 ) (40,723 ) (11,000 )
Consolidated net income 91,842 65,609 26,233
Net income attributable to noncontrolling interest (692 ) - (692 )
Net income attributable to Mueller Industries, Inc. $ 91,150 $ 65,609 $ 25,541
Diluted earnings per share $ 1.62 $ 1.17 $ 0.45



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mueller Industries Inc. via Globenewswire
HUG#1832752
Mueller Industries (NYSE:MLI)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Mueller Industries Charts.
Mueller Industries (NYSE:MLI)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Mueller Industries Charts.