MUELLER INDUSTRIES INC - FORM 8-K - EX-99.1 - April 20, 2021

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Mueller Industries, Inc. Reports First Quarter 2021 Earnings

COLLIERVILLE, Tenn., April 20, 2021 -- Mueller Industries, Inc. (NYSE: MLI) announces 2021 first quarter results. (All comparisons are to the prior year quarter.)
•Operating income of $92.5 million versus $59.3 million
•Net income of $63.1 million versus $32.4 million
•Net sales of $818.1 million versus $602.9 million
•EPS of $1.11 versus $0.57 per share

Financial and Operating Highlights:
•Average COMEX copper for the first quarter was $3.86 per pound, a 50 percent increase over the first quarter of last year.
•The increase in net sales was attributable to unit sales growth across most of our businesses, recent acquisitions and the influence of the higher copper prices. The price of copper is largely passed through and as such, impacts selling prices in many of our businesses.
•Selling, general, and administrative expense was $45.4 million for the quarter, which included $2.7 million of incremental expense from recently acquired businesses, compared to $42.8 million in the prior year quarter.
•We recorded a $1.6 million loss on our investment in Tecumseh Products Company for the quarter, compared to a $6.3 million loss recorded during the prior year period.
•During the quarter, we closed on our previously announced acquisition of the Hart & Cooley Flexible Duct business.
•At quarter-end, cash on hand was $129.9 million, our debt to total capitalization was 31 percent, and the current ratio was 2.2 to 1.

Regarding the state of the Company and outlook, Greg Christopher, Mueller's CEO said:
“Our performance in the first quarter falls in line with our 2020 year-end expectations. Most economies in which we operate continue to improve, as restrictions imposed in response to the pandemic are being lifted. The increased availability of vaccines, the significant flow of money into global economies, and the potential of a U.S. infrastructure bill, strengthen this positive outlook.”




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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.
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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
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Quarter Ended
(In thousands, except per share data)March 27, 2021March 28, 2020
Net sales$818,148 $602,919 
Cost of goods sold668,418508,715
Depreciation and amortization11,75511,039
Selling, general, and administrative expense45,43542,752
Asset impairments— 3,035 
Litigation settlement, net— (21,933)
Operating income92,54059,311
Interest expense(4,469)(5,379)
Other income, net577 278 
Income before income taxes88,64854,210 
Income tax expense(21,761)(14,144)
Loss from unconsolidated affiliates, net of foreign tax(1,649)(6,115)
Consolidated net income65,238 33,951 
Net income attributable to noncontrolling interests(2,131)(1,536)
Net income attributable to Mueller Industries, Inc.$63,107 $32,415 
Weighted average shares for basic earnings per share55,91655,875
Effect of dilutive stock-based awards756583
Adjusted weighted average shares for diluted earnings per share
56,67256,458
Basic earnings per share$1.13 $0.58 
Diluted earnings per share$1.11 $0.57 
Dividends per share$0.13 $0.10 
Summary Segment Data:
Net sales:
    Piping Systems Segment$547,748 $385,013 
    Industrial Metals Segment164,852131,202
    Climate Segment111,02693,272
    Elimination of intersegment sales(5,478)(6,568)
Net sales
$818,148 $602,919 
Operating income:
    Piping Systems Segment$67,098 $36,676 
    Industrial Metals Segment18,84711,182
    Climate Segment17,33513,014
    Unallocated expenses(10,740)(1,561)
Operating income$92,540 $59,311 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(In thousands)
March 27,
2021		December 26, 2020
ASSETS
Cash and cash equivalents$129,876 $119,075 
Accounts receivable, net
447,492357,532
Inventories365,457315,002
Other current assets
43,71033,752
    Total current assets986,535825,361
Property, plant, and equipment, net384,853376,572
Operating lease right-of-use assets
28,49429,301 
Other assets
298,447297,334
Total assets$1,698,329 $1,528,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt$106,164 $41,283 
Accounts payable177,174147,741
Current portion of operating lease liabilities
6,567 6,259 
Other current liabilities
154,583144,360
    Total current liabilities444,488339,643
Long-term debt286,576286,593
Pension and postretirement liabilities25,46826,841
Environmental reserves21,32221,256
Deferred income taxes17,12716,842
Noncurrent operating lease liabilities20,83221,602 
Other noncurrent liabilities
14,50314,731
    Total liabilities
830,316727,508
Total Mueller Industries, Inc. stockholders’ equity841,146 776,745
Noncontrolling interests
26,867 24,315
    Total equity
868,013 801,060
Total liabilities and equity$1,698,329 $1,528,568 








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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Quarter Ended
 (In thousands)
March 27, 2021March 28, 2020
Cash flows from operating activities
Consolidated net income$65,238 $33,951 
Reconciliation of consolidated net income to net cash (used in) provided by operating activities:  
Depreciation and amortization11,775 11,119 
Stock-based compensation expense2,109 1,985 
Provision for doubtful accounts receivable1,631 1,100 
Loss from unconsolidated affiliates1,649 6,115 
(Gain) loss on disposals of properties(936)32 
Impairment charges— 3,035 
Deferred income tax expense142 213 
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables(89,972)(46,291)
Inventories(45,590)17,450 
Other assets1,230 8,010 
Current liabilities33,941 (10,821)
Other liabilities(3,703)(1,643)
Other, net(95)3,796 
Net cash (used in) provided by operating activities(22,581)28,051 
Cash flows from investing activities
Capital expenditures(9,227)(17,094)
Acquisition of businesses, net of cash acquired(14,029)(15,407)
Proceeds from sales of properties1,730 — 
Net cash used in investing activities(21,526)(32,501)
Cash flows from financing activities
Repurchase of common stock— (5,574)
Issuance of debt100,000 110,000 
Repayments of debt(35,288)(20,572)
Issuance of debt by consolidated joint ventures, net45 189 
Net cash received to settle stock-based awards221 464 
Net cash provided by financing activities64,978 84,507 
Effect of exchange rate changes on cash784 (6,135)
Increase in cash, cash equivalents, and restricted cash21,655 73,922 
Cash, cash equivalents, and restricted cash at the beginning of the period127,376 98,042 
Cash, cash equivalents, and restricted cash at the end of the period$149,031 $171,964 



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