Form 8-K MUELLER INDUSTRIES INC To: 20 Jul.


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Mueller Industries, Inc. Reports Second Quarter 2021 Results

COLLIERVILLE, Tennessee, July 20, 2021 – Mueller Industries, Inc. (NYSE: MLI) reports second quarter 2021 results. (All comparisons are with the prior year quarter.)

Operating profit of $ 157.8 million versus $ 52.3 million

Net income of $ 108.8 million versus $ 28.0 million

Net sales of $ 1.01 billion vs. $ 500.2 million

EPS of $ 1.92 vs. $ 0.50 per share

Financial and operational highlights:

Medium COMEX copper for the second trimester was $ 4.43 per pound, an 82% increase from the second quarter of last year.

The increase in net sales is attributable to unit sales growth in all segments, contributions from the 2020 acquisitions and the influence of higher copper prices.

During the quarter, we withdrew our subordinated debentures ($ 284.4 million) and recognized a charge of $ 5.7 million for a redemption premium.

We recorded a loss of $ 1.0 million on our investment in Tecumseh Products Company for the quarter, compared to a loss of $ 8.6 million recorded in the prior year byiod.

At the end of the quarter, cash was $ 110.7 million, our debt to total capitalization was 27%, and the current ratio was 3.0 to 1.

Regarding the state of the company and its outlook, Greg Christopher, CEO of Mueller, said:

“During the second quarter, our team delivered excellent operational performance while dealing with sharply inflated demand and widespread supply constraints in the industry. Extended lead times and unusually high order backlogs are expected to continue through much of the third quarter as many of these conditions persist.

Mueller’s operations remain well positioned for current market conditions due to our operational investments and acquisitions that improve capacity, increase returns and reduce costs. In addition, we continue to benefit from the prudent cost controls we put in place during the height of the pandemic.

We expect strong demand in the building construction sectors to continue through the end of the year. “


Mueller Industries, Inc. (NYSE: MLI) is an industrial company whose holdings manufacture vital products for important markets such as air, water, oil and gas distribution; climatic comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands in North America, Europe, Asia and the Middle East.

Statements contained in this press release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. These include economic and monetary conditions, continued availability of raw materials and energy, market demand, prices, competitive and technological factors and availability of finance, among others, as stated in the filed documents. by the company to the SEC. The words “prospects”, “estimate”, “project”, “intend”, “expect”, “believe”, “target”, “encourage”, “anticipate”, “appear” and Similar phrases 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 subsequent to the date of this report.

CONTACT
Jeffrey A. Martin
(901) 753-3226


MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)

For the quarter ended For the past six months
(In thousands, except per share data) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
Net sales $ 1,012,592 $ 500 168 $ 1,830,740 $ 1 103 087
Cost of goods sold 799 712 403.159 1,468,130 911 874
Depreciation and amortization 11.134 11,097 22 889 22,136
Selling, general and administrative expenses 43 932 33 616 89,367 76,368
Impairment of assets 3,035
Dispute resolution, net (21 933)
Operating result 157 814 52,296 250 354 111,607
Interest charges (1,866) (4,973) (6,335) (10 352)
Redemption premium (5,674) (5,674)
Other income, net 683 2,834 1,260 3 112
Income before taxes 150 957 50,157 239,605 104,367
Income tax expense (39,006) (13,029) (60 767) (27 173)
Loss of non-consolidated affiliates, net of foreign tax (1,019) (8,641) (2.668) (14,756)
Consolidated net income 110 932 28,487 176 170 62,438
Net income attributable to non-controlling interests (2,100) (531) (4 231) (2,067)
Net income attributable to Mueller Industries, Inc. $ 108 832 $ 27 956 $ 171,939 $ 60 371
Weighted average stocks for basic earnings per share 55,946 55,723 55 931 55,799
Effect of dilutive share-based awards 866 471 811 527

Weighted average equities adjusted for diluted earnings per share

56 812 56,194 56,742 56,326
Basic earnings per share $ 1.95 $ 0.50 $ 3.07 $ 1.08
Diluted earnings per share $ 1.92 $ 0.50 $ 3.03 $ 1.07
Dividends per share $ 0.13 $ 0.10 $ 0.26 $ 0.20
Summary segment data:
Net sales:
Piping Systems Segment $ 711 616 $ 334,040 $ 1,259,364 $ 719,053
Industrial metals segment 180,040 88 619 344,892 219,821
Climate Segment 131,708 86 107 242,734 179,379
Elimination of intersegment sales (10,772) (8,598) (16,250) (15,166)

Net sales

$ 1,012,592 $ 500 168 $ 1,830,740 $ 1 103 087
Operating result:
Piping Systems Segment $ 124,508 $ 41,074 $ 191,606 $ 77,750
Industrial metals segment 20,499 8 873 39 346 20 055
Climate Segment 25,372 12 353 42,707 25 367
Unallocated expenses (12,565) (10,004) (23 305) (11 565)
Operating result $ 157 814 $ 52,296 $ 250 354 $ 111,607

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(In thousands)

June 26
2021
December 26, 2020
ASSETS
Cash and cash equivalents $ 110 681 $ 119,075

Accounts receivable, net

542,044 357,532
Inventories 384,982 315,002

Other current assets

44 288 33,752
Total current assets 1,081,995 825,361
Net tangible assets 385,246 376,572

Operating right of use assets

26,871 29,301

other assets

295,325 297,334
Total assets $ 1,789,437 $ 1,528,568
LIABILITIES AND EQUITY
Current share of debt $ 6,428 $ 41 283
Accounts payable 190,403 147,741

Current portion of operating lease debts

6 546 6 259

Other current liabilities

159,052 144,360
Total current liabilities 362,429 339 643
Long-term debt 350,996 286,593
Retirement and post-retirement commitments 25 167 26,841
Environmental reserves 21,020 21,256
Deferred taxes 16,363 16,842
Non-current operating rental debts 19 433 21,602

Other non-current liabilities

20,113 14 731

Total responsibilities

815,521 727,508
Total equity of Mueller Industries, Inc. 945 716 776,745

Non-majority interests

28,200 24,315

Total equity

973 916 801 060
Total liabilities and equity $ 1,789,437 $ 1,528,568

MUELLER INDUSTRIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the past six months

(In thousands)

June 26, 2021 June 27, 2020
Cash flow from operating activities
Consolidated net income $ 176 170 $ 62,438
Reconciliation of consolidated net income and net cash provided by operating activities:
Depreciation and amortization 22 975 22,296
Stock-based compensation expense 4 817 4,198
Provision for bad debts 1,280 1,850
Loss of non-consolidated subsidiaries 2,668 14,756
Redemption premium 5 674
Capital gains on disposals of buildings (819) (9)
Depreciation charges 3,035
Deferred tax expense 3,252 764
Changes in assets and liabilities, net of the effects of acquired companies:
Receivables (190 944) (11,212)
Inventories (63,949) 43,263
other assets (5,482) 3 967
Current liabilities 50 456 (277)
Other liabilities 3429 (5.369)
other, net (247) 3,082
Net cash flow generated by operating activities 9,280 142 782
Cash flow from investing activities
Capital expenditure (17,978) (22,215)
Business acquisitions, net of cash acquired (13 935) (15,415)
Payment received for items receivable 8,539
Proceeds from property sales 1730 1
Net cash used in investing activities (21,644) (37.629)
Cash flow from financing activities
Dividends paid to shareholders of Mueller Industries, Inc. (14,546) (11 168)
Buyback of ordinary shares (5,574)
Debt issuance 425,000 110,015
Debt refund (400,497) (166,021)
Debt issuance (repayment) by consolidated joint ventures, net 463 (471)
Net cash received to settle share-based awards 414 696
Debt issuance costs (1,111)
Net cash provided by (used in) financing activities 9 723 (72,523)
Effect of exchange rate variations on cash 987 (6,160)
(Decrease) increase in cash, cash equivalents and restricted cash (1654) 26,470
Cash, cash equivalents and restricted cash at the beginning of the period 127,376 98,042
Cash, cash equivalents and restricted cash at the end of the period $ 125 722 $ 124,512
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