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Mueller Industries, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results

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COLLIERVILLE, Tenn., February 01, 2022--(BUSINESS WIRE)--Mueller Industries, Inc. (NYSE: MLI) today reported 2021 fourth quarter and full year results.

Fourth Quarter metrics:

  • Operating income was $172.1 million, up 165%.

  • Net sales were $956.4 million, up 42%.

  • Net income was $125.6 million versus $36.4 million.

  • Diluted EPS was $2.21 versus $0.64.

  • Cash provided by operations was $130.2 million.

Full Year metrics:

  • Operating income was $655.8 million, up 167%.

  • Net sales were $3.8 billion, up 57%.

  • Net income was $468.5 million versus $139.5 million.

  • Diluted EPS was $8.25 versus $2.47.

  • Cash provided by operations was $311.7 million.

*Comparisons to prior year periods

Quarter Commentary

  • The average price of copper was 34.3 percent higher than in the fourth quarter of 2020.

  • Net sales growth was driven by volume growth in our US businesses, higher prices primarily attributable to the rise in COMEX copper, and the contributions of our recently acquired H&C Flex business, which is recorded under our Climate segment.

  • The Company recorded a loss of $1.8 million on its investment in Tecumseh during the quarter, compared to income of $10.0 million in the previous year quarter, which included a pre-tax gain of $11.6 million from a land sale.

  • During the quarter we acquired the majority ownership of the Mueller Middle East copper tube mill in Bahrain. This mill is geographically well positioned to serve markets in the Middle East and Northern Africa.

Full Year Commentary

  • The results included $57.8 million of gains from the sale of businesses.

  • The average price of copper was 51.6 percent higher than in 2020.

  • Net sales growth of $1.4 billion was driven by volume growth in almost every business, higher selling prices primarily resulting from the rise in COMEX copper, and full year reported sales of acquired businesses.

  • During the year, $330.7 million of debt was repaid leaving a balance of $1.9 million at year-end. The Company’s $400.0 million credit facility is undrawn and cash and cash equivalents totaled $87.9 million.

Operating Highlights and Outlook:

Greg Christopher, CEO, commented, "Our exceptional results in the fourth quarter capped our second consecutive year of record earnings. The strength our businesses exhibited throughout the year was fueled by solid demand and outstanding operational execution by our team in the face of significant inflationary pressures, supply chain disruptions, and extensive labor shortages."

With regard to the outlook, he added, "We anticipate continued momentum in the building construction and industrial markets in 2022, both important end markets for our businesses. Mueller is well positioned to build upon its success as we start the new year with healthy order books and our manufacturing facilities operating at highly efficient levels."

Mueller Industries, Inc. (NYSE: MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

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.

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Quarter Ended

For the Year Ended

(In thousands, except per share data)

December 25,
2021

December 26,
2020

December 25,
2021

December 26,
2020

Net sales

$

956,357

$

675,851

$

3,769,345

$

2,398,043

Cost of goods sold

726,594

553,507

2,938,989

1,966,161

Depreciation and amortization

11,633

11,955

45,390

44,843

Selling, general, and administrative expense

48,729

44,649

184,052

159,483

Gain on sale of businesses

(3,001

)

(57,760

)

Litigation settlement, net

(22,053

)

Impairment charges

261

736

2,829

3,771

Operating income

172,141

65,004

655,845

245,838

Interest expense

(258

)

(4,010

)

(7,709

)

(19,247

)

Environmental expense

(982

)

(3,488

)

(5,053

)

(4,454

)

Redemption premium

(5,674

)

Pension plan termination expense

(17,835

)

(17,835

)

Other income, net

947

287

3,730

4,887

Income before income taxes

171,848

39,958

641,139

209,189

Income tax expense

(44,862

)

(12,698

)

(165,858

)

(55,321

)

(Loss) income from unconsolidated affiliates, net of foreign tax

(288

)

9,994

(157

)

(10,219

)

Consolidated net income

126,698

37,254

475,124

143,649

Net income attributable to noncontrolling interests

(1,097

)

(834

)

(6,604

)

(4,156

)

Net income attributable to Mueller Industries, Inc.

$

125,601

$

36,420

$

468,520

$

139,493

Weighted average shares for basic earnings per share

56,104

55,869

56,011

55,821

Effect of dilutive stock-based awards

796

673

787

569

Adjusted weighted average shares for diluted earnings per share

56,900

56,542

56,798

56,390

Basic earnings per share

$

2.24

$

0.65

$

8.36

$

2.50

Diluted earnings per share

$

2.21

$

0.64

$

8.25

$

2.47

Dividends per share

$

0.13

$

0.10

$

0.52

$

0.40

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED

(Unaudited)

For the Quarter Ended

For the Year Ended

(In thousands)

December 25,
2021

December 26,
2020

December 25,
2021

December 26,
2020

Summary Segment Data:

Net sales:

Piping Systems Segment

$

652,466

$

454,535

$

2,600,030

$

1,583,002

Industrial Metals Segment

176,226

133,507

703,363

472,159

Climate Segment

130,428

93,148

495,414

370,131

Elimination of intersegment sales

(2,763

)

(5,339

)

(29,462

)

(27,249

)

Net sales

$

956,357

$

675,851

$

3,769,345

$

2,398,043

Operating income:

Piping Systems Segment

$

142,482

$

43,106

$

486,287

$

165,719

Industrial Metals Segment

27,077

15,662

85,475

54,065

Climate Segment

21,757

13,279

85,536

56,802

Unallocated expenses

(19,175

)

(7,043

)

(1,453

)

(30,748

)

Operating income

$

172,141

$

65,004

$

655,845

$

245,838

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

December 25,
2021

December 26,
2020

ASSETS

Cash and cash equivalents

$

87,924

$

119,075

Accounts receivable, net

471,859

357,532

Inventories

430,244

315,002

Other current assets

28,976

33,752

Total current assets

1,019,003

825,361

Property, plant, and equipment, net

385,562

376,572

Operating lease right-of-use assets

23,510

29,301

Other assets

300,861

297,334

$

1,728,936

$

1,528,568

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current portion of debt

$

811

$

41,283

Accounts payable

180,793

147,741

Current portion of operating lease liabilities

6,015

6,259

Other current liabilities

194,820

144,360

Total current liabilities

382,439

339,643

Long-term debt

1,064

286,593

Pension and postretirement liabilities

17,533

26,841

Environmental reserves

17,678

21,256

Deferred income taxes

14,347

16,842

Noncurrent operating lease liabilities

17,099

21,602

Other noncurrent liabilities

21,813

14,731

Total liabilities

471,973

727,508

Total Mueller Industries, Inc. stockholders’ equity

1,222,118

776,745

Noncontrolling interests

34,845

24,315

Total equity

1,256,963

801,060

$

1,728,936

$

1,528,568

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Year Ended

(In thousands)

December 25,
2021

December 26,
2020

Cash flows from operating activities

Consolidated net income

$

475,124

$

143,649

Reconciliation of consolidated net income to net cash provided by operating activities:

Depreciation and amortization

45,655

45,162

Stock-based compensation expense

9,822

8,570

Provision for doubtful accounts receivable

1,216

1,208

Loss from unconsolidated affiliates

157

10,219

Non-cash pension plan termination expense

11,642

Gain on sale of businesses

(57,760

)

(Gain) loss on disposals of assets

(769

)

132

Redemption premium

5,674

Impairment charges

2,829

3,771

Deferred income tax expense (benefit)

7,413

(4,046

)

Changes in assets and liabilities, net of effects of businesses acquired and sold:

Receivables

(124,708

)

(76,404

)

Inventories

(119,514

)

5,207

Other assets

919

20,609

Current liabilities

73,755

74,097

Other liabilities

(5,467

)

(1,142

)

Other, net

(2,645

)

2,399

Net cash provided by operating activities

311,701

245,073

Cash flows from investing activities

Proceeds from sale of assets, net of cash transferred

2,302

181

Proceeds from sale of business, net of cash sold

81,884

Acquisition of businesses, net of cash acquired

(30,206

)

(72,648

)

Capital expenditures

(31,833

)

(43,885

)

Payment received for (issuance of) notes receivable

8,539

(9,270

)

Investments in unconsolidated affiliates

(1,613

)

Net cash provided by (used in) investing activities

29,073

(125,622

)

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

(Unaudited)

For the Year Ended

(In thousands)

December 25,
2021

December 26,
2020

Cash flows from financing activities

Dividends paid to stockholders of Mueller Industries, Inc.

(29,137

)

(22,341

)

Dividends paid to noncontrolling interests

(9,722

)

Issuance of long-term debt

595,000

190,038

Repayments of long-term debt

(920,610

)

(246,898

)

Repayment of debt by consolidated joint ventures, net

(5,113

)

(259

)

Repurchase of common stock

(4,864

)

(5,574

)

Payment of contingent consideration

(1,250

)

(7,000

)

Net cash received (used) to settle stock-based awards

85

(230

)

Debt issuance costs

(1,111

)

Net cash used in financing activities

(376,722

)

(92,264

)

Effect of exchange rate changes on cash

(1,052

)

2,147

(Decrease) increase in cash, cash equivalents, and restricted cash

(37,000

)

29,334

Cash, cash equivalents, and restricted cash at the beginning of the year

127,376

98,042

Cash, cash equivalents, and restricted cash at the end of the year

$

90,376

$

127,376

View source version on businesswire.com: https://www.businesswire.com/news/home/20220201005376/en/

Contacts

Jeffrey A. Martin
(901) 753-3226