Mueller Industries, Inc. Reports First Quarter 2013 Results

News provided by

Mueller Industries, Inc.

23 Apr, 2013, 11:00 GMT

MEMPHIS, Tennessee, April 23, 2013 /PRNewswire/ -- Mueller Industries, Inc. (NYSE: MLI) announced today that net income for the first quarter of 2013 was $26.2 million or 93 cents per diluted share, compared with net income of $32.6 million or 85 cents per diluted share in 2012. The first quarter of 2013 included non-recurring gains of 7 cents versus 15 cents for the same quarter of 2012.

Our earnings per share were favorably affected by the repurchase of 10.4 million of our shares in September of 2012. By this purchase, our outstanding shares were reduced from 38.5 million shares to 28.1 million shares.

Net sales for the first quarter of 2013 were $559.7 million compared with $577.7 million for the same quarter of the prior year. The difference in sales was largely due to (i) the decline in copper prices, which averaged $3.60 per pound in the first quarter of 2013 versus $3.78 per pound in the first quarter of 2012, and (ii) slightly lower unit volume in our OEM segment.

Our financial condition remains strong. We ended the quarter with:

  • $184 million of cash on hand or $6.54 per share,
  • $556 million of equity and a debt to total capitalization ratio of 31.9 percent, and
  • a current ratio of 2.8 to 1.

Regarding the outlook for 2013, Greg Christopher, CEO, said, "For the first time since mid-2008, housing starts rose to a 1.04 million seasonally adjusted rate in March 2013. Historically, the commercial and industrial segments of the construction industry have, with some lag in time, followed the improvement in the housing segment. We believe that as the year progresses, we will benefit from the increasing vigor of these markets."

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: (i) the construction of new homes; (ii) the improvement and reconditioning of existing homes and structures; and (iii) the commercial construction market which 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 "pro forma", "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.


MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)












For the Quarter Ended


March 30,

March 31,


2013

2012


(Unaudited)





Net sales

$    559,690

$    577,668





Cost of goods sold

482,850

493,175

Depreciation and amortization

8,154

7,529

Selling, general, and administrative expense

31,343

31,602

Insurance settlement

-

(1,500)





Operating income

37,343

46,862





Interest expense

(596)

(2,637)

Other income, net

3,163

254





Income before income taxes

39,910

44,479





Income tax expense

(13,476)

(11,662)





Consolidated net income

26,434

32,817





Net income attributable to noncontrolling interest

(232)

(218)





Net income attributable to Mueller Industries, Inc.

$     26,202

$     32,599





Weighted average shares



for basic earnings per share

27,822

38,014

Effect of dilutive stock-based awards

374

444





Adjusted weighted average shares



for diluted earnings per share

28,196

38,458





Basic earnings per share

$       0.94

$       0.86





Diluted earnings per share

$       0.93

$       0.85





Dividends per share

$      0.125

$       0.10





Summary Segment Data:



Net sales:



Plumbing & Refrigeration Segment

$    311,814

$    315,354

OEM Segment

253,787

270,976

Elimination of intersegment sales

(5,911)

(8,662)





Net sales

$    559,690

$    577,668





Operating income:



Plumbing & Refrigeration Segment

$     22,625

$     28,258

OEM Segment

20,323

24,725

Unallocated expenses

(5,605)

(6,121)





Operating income

$     37,343

$     46,862





MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

























March 30,

December 29,




2013

2012




(Unaudited)


ASSETS





Cash and cash equivalents

$    183,866

$    198,934


Accounts receivable, net

311,601

271,093


Inventories

228,211

229,434


Other current assets

61,479

47,733









    Total current assets

785,157

747,194









Property, plant, and equipment, net

233,959

233,263


Other assets

123,797

123,698











$  1,142,913

$  1,104,155























LIABILITIES AND STOCKHOLDERS' EQUITY




Current portion of debt

$     53,575

$     27,570


Accounts payable

82,140

87,574


Other current liabilities

145,785

143,552









    Total current liabilities

281,500

258,696









Long-term debt

207,050

207,300


Pension and postretirement liabilities

53,293

55,019


Environmental reserves

22,438

22,597


Deferred income taxes

21,228

20,910


Other noncurrent liabilities

945

1,667









    Total liabilities

586,454

566,189









Total Mueller Industries, Inc. stockholders' equity

525,202

506,908


Noncontrolling interest

31,257

31,058









    Total equity

556,459

537,966











$  1,142,913

$  1,104,155









MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)











For the Quarter Ended




March 30,

March 31,




2013

2012




(Unaudited)

Operating activities:



Consolidated net income

$     26,434

$     32,817

Reconciliation of net income to net cash used in operating activities:





Depreciation and amortization

8,250

7,621


Stock-based compensation expense

946

898


Insurance settlement

-

(1,500)


Insurance proceeds - noncapital related

-

9,000


(Gain) loss on disposal of properties

(3,003)

26


Deferred income taxes

(1,313)

(2,470)


Income tax benefit from exercise of stock options

(30)

(21)


Changes in assets and liabilities:





Receivables

(42,680)

(66,992)


Inventories

212

(13,744)


Other assets

2,585

(1,294)


Current liabilities

(5,365)

24,688


Other liabilities

(753)

151


Other, net

(198)

38







Net cash used in operating activities

(14,915)

(10,782)







Investing activities:



Capital expenditures

(9,835)

(9,340)

Insurance proceeds for property damage

-

32,500

Net (deposits in) withdrawals from restricted cash balances

(14,800)

2,166

Proceeds from sales of properties

3,002

87







Net cash (used in) provided by investing activities

(21,633)

25,413







Financing activities:



Dividends paid

(3,479)

(3,802)

Debt issuance costs

(50)

-

Issuance of debt by joint venture, net

26,060

899

Repayment of long-term debt

(250)

(250)

Net cash received to settle stock-based awards

65

73

Income tax benefit from exercise of stock options

30

21







Net cash provided by (used in) financing activities

22,376

(3,059)







Effect of exchange rate changes on cash

(896)

1,151







(Decrease) increase in cash and cash equivalents

(15,068)

12,723







Cash and cash equivalents at the beginning of the period

198,934

514,162







Cash and cash equivalents at the end of the period

$    183,866

$    526,885