Mueller Industries, Inc. Reports First Quarter 2014 Results

GlobeNewswire Europe

MEMPHIS, Tenn., April 22, 2014 -- Mueller Industries, Inc. (MLI) announced today that net income for the first quarter of 2014 was $24.7 million, or 44 cents per diluted share, compared with net income of $26.2 million, or 46 cents per diluted share, for the same period of 2013.  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 first quarter of 2014 were $574.4 million compared with $559.7 million for the same quarter of the prior year.  The increase in net sales was principally due to an overall increase in unit volumes of 8.6 percent, of which 6.4 percent was contributed by acquired businesses, partially offset by lower copper costs that impacted the selling prices of the Company`s products.  Copper prices decreased 10 percent from the prior year averaging $3.24 per pound in the first quarter of 2014 compared with $3.60 per pound in the first quarter of 2013.

In addition, on February 28, 2014 the Company completed the previously announced acquisition of Yorkshire Copper Tube for approximately $30.1 million.

Regarding the outlook for 2014, Greg Christopher, CEO, said, "Construction activity got off to a slow start in 2014, principally due to this year`s harsh winter weather.  We anticipate better business conditions as spring arrives."

He also added, "The acquisitions of Yorkshire Copper Tube and Howell Metal Company contributed favorably to the growth in unit volume, but as is typical with acquisitions of this nature, they follow a pattern where substantial changes occur that are costly.  We are happy with our progress and we expect both businesses to be accretive to our earnings by year end."

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.

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) March 29, 2014 March 30, 2013
Net sales $ 574,374 $ 559,690
Cost of goods sold 495,777 482,850
Depreciation and amortization 8,107 8,154
Selling, general, and administrative expense 32,183 31,343
     Operating income 38,307 37,343
Interest expense (1,026 ) (596 )
Other income, net 88 3,163
     Income before income taxes 37,369 39,910
Income tax expense (12,415 ) (13,476 )
     Consolidated net income 24,954 26,434
Net income attributable to noncontrolling interest (248 ) (232 )
     Net income attributable to Mueller Industries, Inc. $ 24,706 $ 26,202
Weighted average shares for basic earnings per share 55,918 55,645
Effect of dilutive stock-based awards 853 747
Adjusted weighted average shares for diluted earnings per share 56,771 56,392
Basic earnings per share $ 0.44 $ 0.47
Diluted earnings per share $ 0.44 $ 0.46
Dividends per share $ 0.075 $ 0.0625
Summary Segment Data:
Net sales:
   Plumbing & Refrigeration Segment $ 338,027 $ 311,814
   OEM Segment 240,030 253,787
   Elimination of intersegment sales (3,683 ) (5,911 )
Net sales $ 574,374 $ 559,690
Operating income:
   Plumbing & Refrigeration Segment $ 23,885 $ 22,625
   OEM Segment 21,286 20,323
   Unallocated expenses (6,864 ) (5,605 )
Operating income $ 38,307 $ 37,343

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

(In thousands) March 29, 2014 December 28, 2013
ASSETS
Cash and cash equivalents $ 233,475 $ 311,800
Accounts receivable, net 319,902 271,847
Inventories 279,465 251,716
Other current assets 52,371 39,354
     Total current assets 885,213 874,717
Property, plant, and equipment, net 243,905 244,457
Other assets 153,711 128,593
$ 1,282,829 $ 1,247,767
LIABILITIES AND STOCKHOLDERS` EQUITY
Current portion of debt $ 32,085 $ 29,083
Accounts payable 109,452 80,897
Other current liabilities 93,894 109,276
     Total current liabilities 235,431 219,256
Long-term debt 206,000 206,250
Pension and postretirement liabilities 26,554 27,426
Environmental reserves 22,005 22,144
Deferred income taxes 34,039 35,975
Other noncurrent liabilities 618 849
     Total liabilities 524,647 511,900
Total Mueller Industries, Inc. stockholders` equity 725,469 703,405
Noncontrolling interest 32,713 32,462
     Total equity 758,182 735,867
$ 1,282,829 $ 1,247,767


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

For the Quarter Ended
 (In thousands) March 29, 2014 March 30, 2013
Cash flows from operating activities
Consolidated net income $ 24,954 $ 26,434
Reconciliation of consolidated net income to net cash used in operating activities:
     Depreciation and amortization 8,165 8,250
     Stock-based compensation expense 1,194 946
     Gain on disposal of properties (1,413 ) (3,003 )
     Deferred income taxes (1,484 ) (1,313 )
     Income tax benefit from exercise of stock options (156 ) (30 )
     Changes in assets and liabilities, net of business acquired:
          Receivables (49,482 ) (42,680 )
          Inventories (10,055 ) 212
          Other assets (14,467 ) 2,585
          Current liabilities (1,337 ) (5,365 )
          Other liabilities (989 ) (753 )
          Other, net 398 (198 )
Net cash used in operating activities (44,672 ) (14,915 )
Cash flows from investing activities
Business acquired (30,137 ) -
Capital expenditures (9,199 ) (9,835 )
Net withdrawals from (deposits into) restricted cash balances 1,771 (14,800 )
Proceeds from the sales of properties 4,833 3,002
Net cash used in investing activities (32,732 ) (21,633 )
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc. (4,196 ) (3,479 )
Debt issuance cost - (50 )
(Repayment) issuance of debt by joint venture, net (1,407 ) 26,060
Repayment of long-term debt (250 ) (250 )
Issuance of debt 4,373 -
Net cash received to settle stock-based awards 224 65
Income tax benefit from exercise of stock options 156 30
Net cash (used in) provided by financing activities (1,100 ) 22,376
Effect of exchange rate changes on cash 179 (896 )
Decrease in cash and cash equivalents (78,325 ) (15,068 )
Cash and cash equivalents at the beginning of the period 311,800 198,934
Cash and cash equivalents at the end of the period $ 233,475 $ 183,866



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#1778483

Rates

View Comments (0)