Mueller Industries, Inc. Reports Third Quarter 2023 Earnings

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.

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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.

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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The Mueller Industries Stock at the time of publication of the news with a raise of +1,21 % to 33,40EUR on Tradegate stock exchange (24. Oktober 2023, 13:00 Uhr).