Mueller Industries, Inc. Reports First Quarter 2021 Earnings

Rhea-AI Summary

Mueller Industries, Inc. (NYSE: MLI) reported strong Q1 2021 results, with net sales reaching $818.1 million, up from $602.9 million year-over-year. Operating income increased to $92.5 million from $59.3 million, and net income rose to $63.1 million compared to $32.4 million. EPS stood at $1.11, up from $0.57. The growth was driven by unit sales increases, acquisitions, and higher copper prices, averaging $3.86 per pound, a 50% increase. The company holds $129.9 million in cash with a 31% debt-to-capitalization ratio.

Positive

• Net sales increased to $818.1 million, up 36% year-over-year.
• Operating income rose to $92.5 million, a 56% increase.
• Net income reached $63.1 million, more than doubling from the previous year.
• EPS increased to $1.11, compared to $0.57 in the prior year.
• Acquired Hart & Cooley Flexible Duct business, enhancing market position.

Negative

• Recorded a $1.6 million loss on investment in Tecumseh Products Company.
• Selling, general, and administrative expenses increased to $45.4 million, partly due to acquisitions.

Mueller Industries, Inc. (NYSE: MLI) announces 2021 first quarter results. (All comparisons are to the prior year quarter.)

• Operating income of $92.5 million versus $59.3 million
• Net income of $63.1 million versus $32.4 million
• Net sales of $818.1 million versus $602.9 million
• EPS of $1.11 versus $0.57 per share

Financial and Operating Highlights:

• Average COMEX copper for the first quarter was $3.86 per pound, a 50 percent increase over the first quarter of last year.
• The increase in net sales was attributable to unit sales growth across most of our businesses, recent acquisitions and the influence of the higher copper prices. The price of copper is largely passed through and as such, impacts selling prices in many of our businesses.
• Selling, general, and administrative expense was $45.4 million for the quarter, which included $2.7 million of incremental expense from recently acquired businesses, compared to $42.8 million in the prior year quarter.
• We recorded a $1.6 million loss on our investment in Tecumseh Products Company for the quarter, compared to a $6.3 million loss recorded during the prior year period.
• During the quarter, we closed on our previously announced acquisition of the Hart & Cooley Flexible Duct business.
• At quarter-end, cash on hand was $129.9 million, our debt to total capitalization was 31 percent, and the current ratio was 2.2 to 1.

Regarding the state of the Company and outlook, Greg Christopher, Mueller's CEO said:

“Our performance in the first quarter falls in line with our 2020 year-end expectations. Most economies in which we operate continue to improve, as restrictions imposed in response to the pandemic are being lifted. The increased availability of vaccines, the significant flow of money into global economies, and the potential of a U.S. infrastructure bill, strengthen this positive outlook.”

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
(In thousands, except per share data)		March 27, 2021			March 28, 2020
Net sales		$	818,148		$	602,919
Cost of goods sold		668,418			508,715
Depreciation and amortization		11,755			11,039
Selling, general, and administrative expense		45,435			42,752
Asset impairments		—			3,035
Litigation settlement, net		—			(21,933)
Operating income		92,540			59,311
Interest expense		(4,469)			(5,379)
Other income, net		577			278
Income before income taxes		88,648			54,210
Income tax expense		(21,761)			(14,144)
Loss from unconsolidated affiliates, net of foreign tax		(1,649)			(6,115)
Consolidated net income		65,238			33,951
Net income attributable to noncontrolling interests		(2,131)			(1,536)
Net income attributable to Mueller Industries, Inc.		$	63,107		$	32,415
Weighted average shares for basic earnings per share		55,916			55,875
Effect of dilutive stock-based awards		756			583
Adjusted weighted average shares for diluted earnings per share		56,672			56,458
Basic earnings per share		$	1.13		$	0.58
Diluted earnings per share		$	1.11		$	0.57
Dividends per share		$	0.13		$	0.10
Summary Segment Data:

FAQ

What were Mueller Industries' Q1 2021 earnings results?

In Q1 2021, Mueller Industries reported net sales of $818.1 million, operating income of $92.5 million, and net income of $63.1 million.

What is the EPS for Mueller Industries in Q1 2021?

The earnings per share (EPS) for Mueller Industries in Q1 2021 was $1.11.

What factors contributed to Mueller Industries' revenue growth in Q1 2021?

Revenue growth was driven by unit sales growth, recent acquisitions, and higher copper prices.

How much cash does Mueller Industries have on hand?

As of the end of Q1 2021, Mueller Industries had $129.9 million in cash.

What is the current debt to total capitalization ratio for Mueller Industries?

Mueller Industries has a debt to total capitalization ratio of 31%.