Mueller Industries, Inc. (NYSE: MLI) announces results for the
third quarter of 2023. Comparisons are to the third quarter of
2022.
- Operating Income of $181.0 million versus $205.2 million
- Net Income of $132.7 million versus $154.5 million
- Diluted EPS* of $1.17 versus $1.37
- Net Sales of $819.8 million versus $944.8 million
(*adjusted retroactively to reflect the two-for-one stock split
that took effect on October 20, 2023)
Third Quarter Financial and Operating Highlights:
- The decrease in net sales was primarily attributable to reduced
demand in our wholesale channel as distributors continued to
rebalance inventory levels, particularly for products utilized in
residential construction.
- We sold a majority interest in our PEX plastic piping business
on July 3, 2023. In the prior year quarter, this business
contributed $11.2 million in net sales.
- Net cash provided by operations was $247.7 million, and cash
plus short-term investments were $1.10 billion at quarter end.
- Our current ratio increased to 6.0 to 1.
- On September 26, 2023, the Company’s Board of Directors
declared a two-for-one stock split in the form of a 100% stock
dividend. The record date for the stock split was October 6, 2023,
and the dividend was distributed on stockholders on October 20,
2023.
Regarding the quarter performance and outlook, Greg Christopher,
Mueller’s CEO said, “Our businesses have aptly adjusted to the
expected tempering of demand in 2023 following the unrestrained
demand levels that occurred in 2022. Nonetheless, business
conditions at these levels are historically favorable. In addition,
we are executing on a number of strategic investments and capacity
rationalizations that we expect will continue to yield favorable
cost improvements.”
Mr. Christopher continued, “We remain focused on growth and
continue to actively identify, evaluate and pursue opportunities
that will expand and strengthen our portfolio. Our balance sheet,
particularly our cash position, is an excellent resource to support
these initiatives.”
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 Nine Months Ended
(In thousands, except per share data)
September 30, 2023
September 24, 2022
September 30, 2023
September 24, 2022
Net sales
$
819,792
$
944,830
$
2,687,968
$
3,104,874
Cost of goods sold
579,058
678,637
1,897,128
2,244,062
Depreciation and amortization
9,631
10,850
30,704
32,993
Selling, general, and administrative
expense
48,295
50,178
156,988
146,590
Gain on sale of assets
—
—
—
(5,507
)
Gain on sale of business
(4,137
)
—
(4,137
)
—
Asset impairments
5,934
—
5,934
—
Gain on insurance settlement
—
—
(19,466
)
—
Operating income
181,011
205,165
620,817
686,736
Interest expense
(230
)
(361
)
(508
)
(666
)
Interest income
10,599
1,356
24,566
1,619
Unrealized (loss) gain on short-term
investments
(2,371
)
—
18,449
—
Other (expense) income, net
(44
)
(326
)
4,033
2,394
Income before income taxes
188,965
205,834
667,357
690,083
Income tax expense
(50,843
)
(51,035
)
(174,322
)
(173,524
)
(Loss) income from unconsolidated
affiliates, net of foreign tax
(2,413
)
1,014
(2,682
)
6,026
Consolidated net income
135,709
155,813
490,353
522,585
Net income attributable to noncontrolling
interests
(3,000
)
(1,271
)
(6,694
)
(3,175
)
Net income attributable to Mueller
Industries, Inc.
$
132,709
$
154,542
$
483,659
$
519,410
Weighted average shares for basic earnings
per share (1)
111,416
111,178
111,374
111,650
Effect of dilutive stock-based awards
(1)
2,452
1670
2,182
1592
Adjusted weighted average shares for
diluted earnings per share (1)
113,868
112,848
113,556
113,242
Basic earnings per share (1)
$
1.19
$
1.39
$
4.34
$
4.65
Diluted earnings per share (1)
$
1.17
$
1.37
$
4.26
$
4.59
Dividends per share (1)
$
0.150
$
0.125
$
0.450
$
0.375
(1) Adjusted retroactively to reflect the
two-for-one stock split that occurred on October 6, 2023.
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter Ended
For the Nine Months Ended
(In thousands)
September 30, 2023
September 24, 2022
September 30, 2023
September 24, 2022
Summary Segment Data:
Net sales:
Piping Systems Segment
$
568,151
$
634,808
$
1,868,635
$
2,163,045
Industrial Metals Segment
141,012
144,880
452,512
498,367
Climate Segment
119,949
174,650
396,857
479,756
Elimination of intersegment sales
(9,320
)
(9,508
)
(30,036
)
(36,294
)
Net sales
$
819,792
$
944,830
$
2,687,968
$
3,104,874
Operating income:
Piping Systems Segment
$
140,609
$
167,939
$
455,605
$
540,006
Industrial Metals Segment
16,221
12,077
61,407
59,504
Climate Segment
34,846
47,462
145,901
134,909
Unallocated income (expenses)
(10,665
)
(22,313
)
(42,096
)
(47,683
)
Operating income
$
181,011
$
205,165
$
620,817
$
686,736
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands)
September 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
979,790
$
461,018
Short-term investments
124,680
217,863
Accounts receivable, net
409,187
380,352
Inventories
391,740
448,919
Other current assets
31,373
26,501
Total current assets
1,936,770
1,534,653
Property, plant, and equipment, net
376,678
379,950
Operating lease right-of-use assets
33,898
22,892
Other assets
316,395
304,904
Total assets
$
2,663,741
$
2,242,399
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current portion of debt
$
556
$
811
Accounts payable
141,930
128,000
Current portion of operating lease
liabilities
7,431
4,942
Other current liabilities
172,588
214,542
Total current liabilities
322,505
348,295
Long-term debt
1,301
1,218
Pension and postretirement liabilities
12,928
13,055
Environmental reserves
15,420
16,380
Deferred income taxes
18,502
16,258
Noncurrent operating lease liabilities
25,793
16,880
Other noncurrent liabilities
16,063
16,349
Total liabilities
412,512
428,435
Total Mueller Industries, Inc.
stockholders’ equity
2,221,241
1,790,914
Noncontrolling interests
29,988
23,050
Total equity
2,251,229
1,813,964
Total liabilities and equity
$
2,663,741
$
2,242,399
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
(In thousands)
September 30, 2023
September 24, 2022
Cash flows from operating
activities
Consolidated net income
$
490,353
$
522,585
Reconciliation of consolidated net income
to net cash provided by operating activities:
Depreciation and amortization
31,053
33,261
Stock-based compensation expense
17,268
12,254
Provision for doubtful accounts
receivable
(63
)
327
Loss (income) from unconsolidated
affiliates
2,682
(6,026
)
Insurance proceeds - noncapital
related
9,854
1,646
Gain on disposals of properties
(106
)
(7,107
)
Gain on sale of business
(4,137
)
—
Unrealized gain on short-term
investments
(18,449
)
—
Impairment charges
5,934
—
Gain on insurance settlement
(19,466
)
—
Deferred income tax expense
3,803
226
Changes in assets and liabilities, net of
effects of business sold:
Receivables
(36,855
)
15,741
Inventories
53,372
(33,768
)
Other assets
(12,897
)
(8,574
)
Current liabilities
(25,503
)
(5,331
)
Other liabilities
(1,828
)
(7,399
)
Other, net
3,475
(923
)
Net cash provided by operating
activities
498,490
516,912
Cash flows from investing
activities
Capital expenditures
(39,469
)
(29,555
)
Investments in unconsolidated
affiliates
(3,999
)
—
Insurance proceeds - capital related
24,646
3,354
Purchase of short-term investments
(106,231
)
—
Proceeds from the maturity of short-term
investments
217,863
—
Proceeds from sales of properties
214
7,841
Dividends from unconsolidated
affiliates
1,093
2,091
Net cash provided by (used in) investing
activities
94,117
(16,269
)
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
(In thousands)
September 30, 2023
September 24, 2022
Cash flows from financing
activities
Dividends paid to stockholders of Mueller
Industries, Inc.
(50,133
)
(41,876
)
Repurchase of common stock
(19,303
)
(38,054
)
Repayments of debt
(185
)
(148
)
(Repayment) issuance of debt by
consolidated joint ventures, net
(265
)
406
Net cash used to settle stock-based
awards
(9,113
)
(1,619
)
Net cash used in financing activities
(78,999
)
(81,291
)
Effect of exchange rate changes on
cash
2,312
(10,310
)
Increase in cash, cash equivalents, and
restricted cash
515,920
409,042
Cash, cash equivalents, and restricted
cash at the beginning of the period
465,296
90,376
Cash, cash equivalents, and restricted
cash at the end of the period
$
981,216
$
499,418
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version on businesswire.com: https://www.businesswire.com/news/home/20231024611303/en/
Jeffrey A. Martin (901) 753-3226
Grafico Azioni Mueller Industries (NYSE:MLI)
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Da Apr 2024 a Mag 2024
Grafico Azioni Mueller Industries (NYSE:MLI)
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