Mueller Industries, Inc. Reports Third Quarter 2024 Earnings

Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2024. Comparisons are to the third quarter of 2023.

• Net Sales of $997.8 million versus $819.8 million
• Operating Income of $206.7 million versus $181.0 million
• Earnings Before Taxes of $217.8 million versus $189.0 million
• Net Income of $168.7 million versus $132.7 million
• Diluted EPS of $1.48 versus $1.171

Third Quarter Financial and Operating Highlights:

• COMEX copper averaged $4.23 per pound during the quarter, 12.0% higher than in the third quarter of 2023.
• The increase in net sales was attributable to the inclusion of $102.4 million of sales from recently acquired businesses, as well as the higher copper prices.
• Selling, general, and administrative expenses increased primarily due to the inclusion of $3.9 million of operating costs from recently acquired businesses, as well as $2.7 million in transaction related expenses.
• Investments in unconsolidated affiliates contributed $3.2 million of income, as compared with a $2.4 million loss in the prior year period.
• Net cash generated from operations was $231.4 million. Our cash and short-term investments balance was $969.6 million at quarter end, and our current ratio remains strong at 4.9 to 1.

Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “We continued to deliver very good results, and generated significant cash despite generally restrained business conditions during the quarter. We also made substantial progress toward integrating our two recently acquired businesses, which both contributed positively to our results.”

He continued, “We anticipate that declining interest rates and moderating inflation, combined with the resolution of election related uncertainty, will create a more stable and favorable environment for us. We have an excellent portfolio of businesses serving essential markets; our operations are well capitalized; our balance sheet is strong; and we have proven capable of quickly adjusting and adapting as conditions require. As such, we remain well positioned to take advantage when conditions improve, and will continue to actively pursue new opportunities to expand and grow.”

_____________________________

1

Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.

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 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Net sales

 

$

997,831

 

 

$

819,792

 

 

$

2,845,230

 

 

$

2,687,968

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

722,469

 

 

 

579,058

 

 

 

2,056,162

 

 

 

1,897,128

 

Depreciation and amortization

 

 

11,710

 

 

 

9,631

 

 

 

30,897

 

 

 

30,704

 

Selling, general, and administrative expense

 

 

59,619

 

 

 

48,295

 

 

 

161,993

 

 

 

156,988

 

Gain on sale of assets

 

 

(2,667

)

 

 

—

 

 

 

(3,953

)

 

 

—

 

Gain on sale of business

 

 

—

 

 

 

(4,137

)

 

 

—

 

 

 

(4,137

)

Asset impairments

 

 

—

 

 

 

5,934

 

 

 

—

 

 

 

5,934

 

Gain on insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(19,466

)

 

 

 

 

 

 

 

 

 

Operating income

 

 

206,700

 

 

 

181,011

 

 

 

600,131

 

 

 

620,817

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(113

)

 

 

(230

)

 

 

(335

)

 

 

(508

)

Interest income

 

 

11,145

 

 

 

10,599

 

 

 

42,773

 

 

 

24,566

 

Realized and unrealized gains (losses) on short-term investments

 

 

164

 

 

 

(2,368

)

 

 

529

 

 

 

20,362

 

Other (expense) income, net

 

 

(122

)

 

 

(47

)

 

 

(848

)

 

 

2,120

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

217,774

 

 

 

188,965

 

 

 

642,250

 

 

 

667,357

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(49,188

)

 

 

(50,843

)

 

 

(159,406

)

 

 

(174,322

)

Income (loss) from unconsolidated affiliates, net of foreign tax

 

 

3,197

 

 

 

(2,413

)

 

 

(5,905

)

 

 

(2,682

)

 

 

 

 

 

 

 

 

 

Consolidated net income

 

 

171,783

 

 

 

135,709

 

 

 

476,939

 

 

 

490,353

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

(3,084

)

 

 

(3,000

)

 

 

(9,712

)

 

 

(6,694

)

 

 

 

 

 

 

 

 

 

Net income attributable to Mueller Industries, Inc.

 

$

168,699

 

 

$

132,709

 

 

$

467,227

 

 

$

483,659

 

 

 

 

 

 

 

 

 

 

Weighted average shares for basic earnings per share (1)

 

 

111,363

 

 

 

111,416

 

 

 

111,332

 

 

 

111,374

 

Effect of dilutive stock-based awards (1)

 

 

2,412

 

 

 

2,452

 

 

 

2,635

 

 

 

2,182

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average shares for diluted earnings per share (1)

 

 

113,775

 

 

 

113,868

 

 

 

113,967

 

 

 

113,556

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (1)

 

$

1.51

 

 

$

1.19

 

 

$

4.20

 

 

$

4.34

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (1)

 

$

1.48

 

 

$

1.17

 

 

$

4.10

 

 

$

4.26

 

 

 

 

 

 

 

 

 

 

Dividends per share (1)

 

$

0.20

 

 

$

0.15

 

 

$

0.60

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

(1) Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023.

 

 

 

 

 

 

 

 

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

For the Nine Months Ended

(In thousands)

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Summary Segment Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

Piping Systems Segment

 

$

653,884

 

 

$

568,151

 

 

$

1,932,521

 

 

$

1,868,635

 

Industrial Metals Segment

 

 

238,014

 

 

 

141,012

 

 

 

589,422

 

 

 

452,512

 

Climate Segment

 

 

128,482

 

 

 

119,949

 

 

 

375,824

 

 

 

396,857

 

Elimination of intersegment sales

 

 

(22,549

)

 

 

(9,320

)

 

 

(52,537

)

 

 

(30,036

)

 

 

 

 

 

 

 

 

 

Net sales

 

$

997,831

 

 

$

819,792

 

 

$

2,845,230

 

 

$

2,687,968

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

Piping Systems Segment

 

$

163,601

 

 

$

140,609

 

 

$

468,539

 

 

$

455,605

 

Industrial Metals Segment

 

 

24,197

 

 

 

16,221

 

 

 

78,161

 

 

 

61,407

 

Climate Segment

 

 

40,768

 

 

 

34,846

 

 

 

112,336

 

 

 

145,901

 

Unallocated income (expenses)

 

 

(21,866

)

 

 

(10,665

)

 

 

(58,905

)

 

 

(42,096

)

 

 

 

 

 

 

 

 

 

Operating income

 

$

206,700

 

 

$

181,011

 

 

$

600,131

 

 

$

620,817

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

 

(In thousands)

 

September 28, 2024

 

December 30, 2023

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

965,116

 

$

1,170,893

Short-term investments

 

 

4,449

 

 

98,146

Accounts receivable, net

 

 

500,617

 

 

351,561

Inventories

 

 

400,252

 

 

380,248

Other current assets

 

 

45,144

 

 

39,173

 

 

 

 

 

Total current assets

 

 

1,915,578

 

 

2,040,021

 

 

 

 

 

Property, plant, and equipment, net

 

 

506,234

 

 

385,165

Operating lease right-of-use assets

 

 

32,202

 

 

35,170

Other assets

 

 

752,118

 

 

298,945

 

 

 

 

 

Total assets

 

$

3,206,132

 

$

2,759,301

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current portion of debt

 

$

927

 

$

796

Accounts payable

 

 

183,511

 

 

120,485

Current portion of operating lease liabilities

 

 

7,681

 

 

7,893

Other current liabilities

 

 

201,874

 

 

187,964

 

 

 

 

 

Total current liabilities

 

 

393,993

 

 

317,138

 

 

 

 

 

Long-term debt

 

 

19

 

 

185

Pension and postretirement liabilities

 

 

12,082

 

 

12,062

Environmental reserves

 

 

14,696

 

 

15,030

Deferred income taxes

 

 

24,663

 

 

19,134

Noncurrent operating lease liabilities

 

 

24,504

 

 

26,683

Other noncurrent liabilities

 

 

27,539

 

 

10,353

 

 

 

 

 

Total liabilities

 

 

497,496

 

 

400,585

 

 

 

 

 

Total Mueller Industries, Inc. stockholders’ equity

 

 

2,678,382

 

 

2,337,445

Noncontrolling interests

 

 

30,254

 

 

21,271

 

 

 

 

 

Total equity

 

 

2,708,636

 

 

2,358,716

 

 

 

 

 

Total liabilities and equity

 

$

3,206,132

 

$

2,759,301

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

For the Nine Months Ended

(In thousands)

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Consolidated net income

 

$

476,939

 

 

$

490,353

 

Reconciliation of consolidated net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

31,140

 

 

 

31,053

 

Stock-based compensation expense

 

 

19,956

 

 

 

17,268

 

Provision for doubtful accounts receivable

 

 

(262

)

 

 

(63

)

Loss from unconsolidated affiliates

 

 

5,905

 

 

 

2,682

 

Dividends from unconsolidated affiliates

 

 

4,130

 

 

 

—

 

Insurance proceeds - noncapital related

 

 

15,000

 

 

 

9,854

 

Gain on disposals of properties

 

 

(3,953

)

 

 

(106

)

Gain on sale of business

 

 

—

 

 

 

(4,137

)

Unrealized gain on short-term investments

 

 

(164

)

 

 

(18,449

)

Gain on sales of securities

 

 

(365

)

 

 

—

 

Impairment charges

 

 

—

 

 

 

5,934

 

Gain on insurance settlement

 

 

—

 

 

 

(19,466

)

Deferred income tax expense

 

 

1,837

 

 

 

3,803

 

Changes in assets and liabilities, net of effects of businesses acquired:

 

 

 

 

Receivables

 

 

(99,281

)

 

 

(36,855

)

Inventories

 

 

34,027

 

 

 

53,372

 

Other assets

 

 

(3,175

)

 

 

(12,897

)

Current liabilities

 

 

25,303

 

 

 

(25,503

)

Other liabilities

 

 

(2,467

)

 

 

(1,828

)

Other, net

 

 

1,217

 

 

 

3,475

 

 

 

 

 

 

Net cash provided by operating activities

 

$

505,787

 

 

$

498,490

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

$

(51,288

)

 

$

(39,469

)

Acquisition of businesses, net of cash acquired

 

 

(602,692

)

 

 

—

 

Investments in unconsolidated affiliates

 

 

(8,700

)

 

 

(3,999

)

Insurance proceeds - capital related

 

 

—

 

 

 

24,646

 

Purchase of short-term investments

 

 

(4,285

)

 

 

(106,231

)

Purchase of long-term investments

 

 

(7,976

)

 

 

—

 

Proceeds from the maturity of short-term investments

 

 

—

 

 

 

217,863

 

Proceeds from the sale of securities

 

 

98,465

 

 

 

—

 

Issuance of notes receivable

 

 

(3,800

)

 

 

—

 

Proceeds from sales of properties

 

 

9,026

 

 

 

214

 

Dividends from unconsolidated affiliates

 

 

—

 

 

 

1,093

 

 

 

 

 

 

Net cash (used in) provided by investing activities

 

$

(571,250

)

 

$

94,117

 

 

 

 

 

 

 

 

 

 

 

MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

For the Nine Months Ended

(In thousands)

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Dividends paid to stockholders of Mueller Industries, Inc.

 

$

(66,796

)

 

$

(50,133

)

Repurchase of common stock

 

 

(48,681

)

 

 

(19,303

)

Repayments of debt

 

 

(167

)

 

 

(185

)

Issuance (repayment) of debt by consolidated joint ventures, net

 

 

144

 

 

 

(265

)

Net cash used to settle stock-based awards

 

 

(22,946

)

 

 

(9,113

)

 

 

 

 

 

Net cash used in financing activities

 

$

(138,446

)

 

$

(78,999

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(4,709

)

 

 

2,312

 

 

 

 

 

 

(Decrease) increase in cash, cash equivalents, and restricted cash

 

 

(208,618

)

 

 

515,920

 

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

 

$

965,605

 

 

$

981,216

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021216721/en/

Jeffrey A. Martin [phone]