COLLIERVILLE, Tenn.--(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,
|
|
December 26,
|
|
December 25,
|
|
December 26,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
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,
|
|
December 26,
|
|
December 25,
|
|
December 26,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
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,
|
|
December 26,
|
||
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,
|
|
December 26,
|
||||
|
|
|
|
||||
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,
|
|
December 26,
|
||||
|
|
|
|
||||
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 |
|
