Mueller Industries, Inc. Reports First Quarter 2024 Earnings
-
Net Income of
$138.4 million versus$173.2 million -
Earnings Before Taxes of
$201.6 million versus$237.4 million -
Net Sales of$849.7 million versus$971.2 million -
Diluted EPS* of
$1.21 versus$1.54
(*adjusted retroactively to reflect the two-for-one stock split that took effect on
First Quarter Financial and Operating Highlights:
-
COMEX copper averaged
$3.86 per pound during the quarter, 5.6% lower than in the first quarter of 2023. - The decrease in net sales was attributable to lower demand for our products that are primarily consumed in residential building, as well as lower selling prices as a result of the lower copper prices.
-
We recorded a
$10.3 million loss on our investment inTecumseh Products Company , largely driven by restructuring charges in its international operations. -
Net cash generated from operations was
$173.6 million , and our cash balance was$1.36 billion at quarter end. - Our current ratio was 6.0 to 1.
Regarding the quarter performance,
Regarding the outlook,
********************* |
Statements in this release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company’s
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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For the Quarter Ended |
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(In thousands, except per share data) |
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Net sales |
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$ |
849,654 |
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$ |
971,192 |
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Cost of goods sold |
|
|
608,703 |
|
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|
678,798 |
|
Depreciation and amortization |
|
|
9,169 |
|
|
|
10,657 |
|
Selling, general, and administrative expense |
|
|
48,357 |
|
|
|
52,631 |
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|
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|
|
|
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Operating income |
|
|
183,425 |
|
|
|
229,106 |
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|
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|
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Interest expense |
|
|
(115 |
) |
|
|
(143 |
) |
Interest income |
|
|
17,245 |
|
|
|
6,235 |
|
Realized gains on short-term investments |
|
|
365 |
|
|
|
1,910 |
|
Other income, net |
|
|
630 |
|
|
|
326 |
|
|
|
|
|
|
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Income before income taxes |
|
|
201,550 |
|
|
|
237,434 |
|
|
|
|
|
|
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Income tax expense |
|
|
(51,834 |
) |
|
|
(61,357 |
) |
Loss from unconsolidated affiliates, net of foreign tax |
|
|
(8,007 |
) |
|
|
(984 |
) |
|
|
|
|
|
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Consolidated net income |
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|
141,709 |
|
|
|
175,093 |
|
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|
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Net income attributable to noncontrolling interests |
|
|
(3,346 |
) |
|
|
(1,854 |
) |
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|
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Net income attributable to |
|
$ |
138,363 |
|
|
$ |
173,239 |
|
|
|
|
|
|
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Weighted average shares for basic earnings per share (1) |
|
|
111,416 |
|
|
|
111,386 |
|
Effect of dilutive stock-based awards (1) |
|
|
2,729 |
|
|
|
1414 |
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|
|
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Adjusted weighted average shares for diluted earnings per share (1) |
|
|
114,145 |
|
|
|
112,800 |
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Basic earnings per share (1) |
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$ |
1.24 |
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$ |
1.56 |
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Diluted earnings per share (1) |
|
$ |
1.21 |
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$ |
1.54 |
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Dividends per share (1) |
|
$ |
0.20 |
|
|
$ |
0.15 |
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(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED |
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(Unaudited) |
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For the Quarter Ended |
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(In thousands) |
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Summary Segment Data: |
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Net sales: |
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|
|
|
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Piping Systems Segment |
|
$ |
590,168 |
|
|
$ |
662,479 |
|
Industrial Metals Segment |
|
|
156,067 |
|
|
|
165,234 |
|
Climate Segment |
|
|
116,810 |
|
|
|
152,954 |
|
Elimination of intersegment sales |
|
|
(13,391 |
) |
|
|
(9,475 |
) |
|
|
|
|
|
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Net sales |
|
$ |
849,654 |
|
|
$ |
971,192 |
|
|
|
|
|
|
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Operating income: |
|
|
|
|
||||
Piping Systems Segment |
|
$ |
142,680 |
|
|
$ |
163,854 |
|
Industrial Metals Segment |
|
|
24,271 |
|
|
|
27,215 |
|
Climate Segment |
|
|
32,575 |
|
|
|
53,988 |
|
Unallocated income (expenses) |
|
|
(16,101 |
) |
|
|
(15,951 |
) |
|
|
|
|
|
||||
Operating income |
|
$ |
183,425 |
|
|
$ |
229,106 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(In thousands) |
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ASSETS |
|
|
|
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||
Cash and cash equivalents |
|
$ |
1,357,952 |
|
$ |
1,170,893 |
Short-term investments |
|
|
— |
|
|
98,146 |
Accounts receivable, net |
|
|
424,406 |
|
|
351,561 |
Inventories |
|
|
356,869 |
|
|
380,248 |
Other current assets |
|
|
45,379 |
|
|
39,173 |
|
|
|
|
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||
Total current assets |
|
|
2,184,606 |
|
|
2,040,021 |
|
|
|
|
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||
Property, plant, and equipment, net |
|
|
390,517 |
|
|
385,165 |
Operating lease right-of-use assets |
|
|
33,819 |
|
|
35,170 |
Other assets |
|
|
285,300 |
|
|
298,945 |
|
|
|
|
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Total assets |
|
$ |
2,894,242 |
|
$ |
2,759,301 |
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current portion of debt |
|
$ |
705 |
|
$ |
796 |
Accounts payable |
|
|
160,133 |
|
|
120,485 |
Current portion of operating lease liabilities |
|
|
8,072 |
|
|
7,893 |
Other current liabilities |
|
|
192,371 |
|
|
187,964 |
|
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|
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Total current liabilities |
|
|
361,281 |
|
|
317,138 |
|
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Long-term debt |
|
|
130 |
|
|
185 |
Pension and postretirement liabilities |
|
|
11,361 |
|
|
12,062 |
Environmental reserves |
|
|
14,919 |
|
|
15,030 |
Deferred income taxes |
|
|
22,687 |
|
|
19,134 |
Noncurrent operating lease liabilities |
|
|
25,451 |
|
|
26,683 |
Other noncurrent liabilities |
|
|
10,043 |
|
|
10,353 |
|
|
|
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Total liabilities |
|
|
445,872 |
|
|
400,585 |
|
|
|
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||
|
|
|
2,424,374 |
|
|
2,337,445 |
Noncontrolling interests |
|
|
23,996 |
|
|
21,271 |
|
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|
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Total equity |
|
|
2,448,370 |
|
|
2,358,716 |
|
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Total liabilities and equity |
|
$ |
2,894,242 |
|
$ |
2,759,301 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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For the Quarter Ended |
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(In thousands) |
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Cash flows from operating activities |
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Consolidated net income |
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$ |
141,709 |
|
|
$ |
175,093 |
|
Reconciliation of consolidated net income to net cash provided by operating activities: |
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|
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Depreciation and amortization |
|
|
9,250 |
|
|
|
10,746 |
|
Stock-based compensation expense |
|
|
6,231 |
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|
|
5,637 |
|
Provision for doubtful accounts receivable |
|
|
1 |
|
|
|
(15 |
) |
Loss from unconsolidated affiliates |
|
|
8,007 |
|
|
|
984 |
|
Dividends from unconsolidated affiliates |
|
|
2,024 |
|
|
|
— |
|
Insurance proceeds - noncapital related |
|
|
15,000 |
|
|
|
— |
|
Gain on disposals of properties |
|
|
(1,567 |
) |
|
|
(115 |
) |
Gain on sales of securities |
|
|
(365 |
) |
|
|
— |
|
Deferred income tax expense |
|
|
940 |
|
|
|
372 |
|
Changes in assets and liabilities, net of effects of business sold: |
|
|
|
|
||||
Receivables |
|
|
(75,200 |
) |
|
|
(111,547 |
) |
Inventories |
|
|
22,502 |
|
|
|
(581 |
) |
Other assets |
|
|
11,984 |
|
|
|
(17,950 |
) |
Current liabilities |
|
|
33,948 |
|
|
|
50,842 |
|
Other liabilities |
|
|
(907 |
) |
|
|
(2,275 |
) |
Other, net |
|
|
68 |
|
|
|
427 |
|
|
|
|
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|
||||
Net cash provided by operating activities |
|
$ |
173,625 |
|
|
$ |
111,618 |
|
|
|
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|
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Cash flows from investing activities |
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|
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Capital expenditures |
|
$ |
(16,406 |
) |
|
$ |
(7,556 |
) |
Insurance proceeds - capital related |
|
|
— |
|
|
|
8,000 |
|
Purchase of short-term investments |
|
|
— |
|
|
|
50,000 |
|
Proceeds from the sale of securities |
|
|
96,465 |
|
|
|
— |
|
Issuance of notes receivable |
|
|
(12,500 |
) |
|
|
— |
|
Proceeds from sales of properties |
|
|
2,878 |
|
|
|
118 |
|
Dividends from unconsolidated affiliates |
|
|
— |
|
|
|
644 |
|
|
|
|
|
|
||||
Net cash provided by investing activities |
|
$ |
70,437 |
|
|
$ |
51,206 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
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|
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For the Quarter Ended |
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(In thousands) |
|
|
|
|
||||
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Dividends paid to stockholders of |
|
$ |
(22,255 |
) |
|
$ |
(16,729 |
) |
Repurchase of common stock |
|
|
(27,930 |
) |
|
|
— |
|
Repayments of debt |
|
|
(56 |
) |
|
|
(56 |
) |
(Repayment) issuance of debt by consolidated joint ventures, net |
|
|
(77 |
) |
|
|
297 |
|
Net cash used to settle stock-based awards |
|
|
(2,489 |
) |
|
|
(2,611 |
) |
|
|
|
|
|
||||
Net cash used in financing activities |
|
$ |
(52,807 |
) |
|
$ |
(19,099 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(670 |
) |
|
|
2,573 |
|
|
|
|
|
|
||||
Increase in cash, cash equivalents, and restricted cash |
|
|
190,585 |
|
|
|
146,298 |
|
Cash, cash equivalents, and restricted cash at the beginning of the period |
|
|
1,174,223 |
|
|
|
465,296 |
|
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at the end of the period |
|
$ |
1,364,808 |
|
|
$ |
611,594 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240422090496/en/
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