Mueller Industries, Inc. Reports First Quarter 2016 Results

MEMPHIS, Tenn., April 26, 2016 -- Mueller Industries, Inc. (NYSE: MLI) announced that net income for the first quarter of 2016 was $28.6 million, or 50 cents per diluted share, compared with net income of $22.0 million, or 39 cents per diluted share, for the same period of 2015. 

Revenues for the first quarter of 2016 were $532.8 million compared with $537.2 million for the same quarter last year.  Revenue related to higher unit volume was muted by a decline of approximately $75.2 million in overall selling prices.

Financial and Operating Highlights for the first quarter of 2016: 

• Copper prices were down approximately 21% in the first quarter versus the same period last year, resulting in the lower selling prices.
• The first quarter of 2016 comprised four more work days than the first quarter of 2015.
• Included in the results is $2.9 million of net income from Tecumseh Products Co., an unconsolidated affiliate, which includes effects from purchase accounting.
• Ending cash for the period was $270 million or $4.73 per share and our current ratio remains strong at 4.1 to 1.

  
Greg Christopher, CEO, said "Business conditions remain consistent with what we saw at the end of 2015 and our view of the future remains steady."

In addition, he commented, "Today, we expect to close on our announced agreement to acquire a 60 percent equity in interest in Jungwoo Metal Ind. Co., Ltd, a manufacturer of copper-based joining products. We are pleased to bring this transaction to close, and excited to begin working together."

Mueller Industries, Inc. is an industrial manufacturer that specializes in copper and copper alloy manufacturing while also producing goods made from aluminum, steel, and plastics.  It is headquartered in Memphis, Tennessee and comprises a network of operations in the United States, Canada, Mexico, Great Britain, and China.  Its products include tubing, fittings, valves, vessels, and related items for plumbing and HVACR related piping systems, as well as rod, forgings, extrusions, and various components for OEM applications.  Products are distributed into sectors such as building construction, appliance, defense, energy, and automotive.

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

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," "encourage," "anticipate," "appear," 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
(In thousands, except per share data)		April 2, 2016				March 28, 2015
Net sales		$	532,809			$	537,242
Cost of goods sold			446,642				460,834
Depreciation and amortization			8,920				7,853
Selling, general, and administrative expense			35,780				32,831
Operating income			41,467				35,724
Interest expense			(1,848	)			(2,076	)
Other income, net			245				105
Income before income taxes			39,864				33,753
Income tax expense			(14,121	)			(11,413	)
Income from unconsolidated affiliate, net of tax			2,922				-
Consolidated net income			28,665				22,340
Net income attributable to noncontrolling interest			(35	)			(362	)
Net income attributable to Mueller Industries, Inc.		$	28,630			$	21,978
Weighted average shares for basic earnings per share			56,467				56,193
Effect of dilutive stock-based awards			495				731
Adjusted weighted average shares for diluted earnings per share			56,962				56,924
Basic earnings per share		$	0.51			$	0.39
Diluted earnings per share		$	0.50			$	0.39
Dividends per share		$	0.075			$	0.075
Summary Segment Data:
Net sales:
Piping Systems Segment		$	368,890			$	361,482
Industrial Metals Segment			134,521				151,036
Climate Segment			30,706				25,811
Elimination of intersegment sales			(1,308	)			(1,087	)
Net sales		$	532,809			$	537,242
Operating income:
Piping Systems Segment		$	31,159			$	26,259
Industrial Metals Segment			19,912				18,959
Climate Segment			3,879				2,265
Unallocated expenses			(13,483	)			(11,759	)
Operating income		$	41,467			$	35,724

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

(In thousands)		April 2, 2016				December 26, 2015
ASSETS
Cash and cash equivalents		$	270,149			$	274,844
Accounts receivable, net			275,881				251,571
Inventories			240,608				239,378
Other current assets			34,123				34,608
Total current assets			820,761				800,401
Property, plant, and equipment, net			278,481				280,224
Other assets			261,778				258,176
Total assets		$	1,361,020			$	1,338,801
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt		$	4,583			$	11,760
Accounts payable			98,324				88,051
Other current liabilities			99,701				109,618
Total current liabilities			202,608				209,429
Long-term debt			206,000				204,250
Pension and postretirement liabilities			33,715				34,876
Environmental reserves			20,932				20,943
Deferred income taxes			8,310				7,161
Other noncurrent liabilities			2,973				2,440
Total liabilities			474,538				479,099
Total Mueller Industries, Inc. stockholders' equity			854,804				827,285
Noncontrolling interest			31,678				32,417
Total equity			886,482				859,702
		$	1,361,020			$	1,338,801

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

		For the Quarter Ended
(In thousands)		April 2, 2016				March 28, 2015
Cash flows from operating activities
Consolidated net income		$	28,665			$	22,340
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization			9,011				8,015
Equity in earnings of unconsolidated affiliate			(2,922	)			-
Stock-based compensation expense			1,236				1,349
(Gain) loss on disposal of properties			(23	)			1
Deferred income taxes			1,895				(570	)
Income tax benefit from exercise of stock options			(96	)			(69	)
Changes in assets and liabilities, net of business acquired:
Receivables			(25,089	)			(36,692	)
Inventories			(1,631	)			7,534
Other assets			(370	)			9,257
Current liabilities			655				(7,389	)
Other liabilities			(704	)			(131	)
Other, net			(291	)			245
Net cash provided by operating activities			10,336				3,890
Cash flows from investing activities
Capital expenditures			(5,892	)			(7,392	)
Net withdrawals from (deposits into) restricted cash balances			84				(12,593	)
Proceeds from sale of assets			1				492
Net cash used in investing activities			(5,807	)			(19,493	)
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.			(4,236	)			(4,216	)
Repayment of debt by joint venture, net			(7,024	)			(3,817	)
Repayment of long-term debt			(250	)			(250	)
Issuance of long-term debt			2,000				-
Net cash received to settle stock-based awards			361				93
Income tax benefit from exercise of stock options			96				69
Net cash used in financing activities			(9,053	)			(8,121	)
Effect of exchange rate changes on cash			(171	)			(1,516	)
Decrease in cash and cash equivalents			(4,695	)			(25,240	)
Cash and cash equivalents at the beginning of the period			274,844				352,134
Cash and cash equivalents at the end of the period		$	270,149			$	326,894

---

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Chilean Cobalt completes Phase 1 at NeoRe rare earth project in Chile
• Galaxy Gaming names Anand Singh as chief technology officer
• Youxin Technology signs non-binding $20M investment deal with RiverBit