Mueller Industries, Inc. Reports First Quarter 2022 Earnings

Rhea-AI Summary

Mueller Industries, Inc. (NYSE: MLI) reports strong first-quarter 2022 results, with net sales reaching $1.01 billion, up from $818.1 million year-over-year. Net income surged to $158.3 million from $63.1 million, resulting in an EPS of $2.78, compared to $1.11 in the previous year. The increase is attributed to higher commodity prices and volume growth from new acquisitions. Additionally, the company raised its quarterly dividend from $0.13 to $0.25 per share. CEO Greg Christopher indicated continued demand driven by residential construction and infrastructure development.

Positive

• Net sales increased to $1.01 billion, up 23% from last year.
• Net income rose to $158.3 million, a 151% increase.
• Earnings per share (EPS) improved to $2.78, up from $1.11.
• Gross margin up by 800 basis points.
• Quarterly dividend increased to $0.25 per share.

Negative

• None.

COLLIERVILLE, Tenn.--(BUSINESS WIRE)-- Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2022. (All comparisons are to the prior year quarter.)

• Operating Income of $212.7 million versus $92.5 million
• Net Income of $158.3 million versus $63.1 million
• EPS of $2.78 versus $1.11
• Net Sales of $1.01 billion versus $818.1 million

First Quarter Financial and Operating Highlights:

• Higher commodity prices, which are passed through in the selling prices of our products, were the primary reason for the increase in net sales, along with volume growth from recently acquired businesses.
  • COMEX copper averaged $4.54 per pound during the quarter, 18 percent higher than the first quarter of 2021.
  • Gross margin improved 800 basis points, and reflected our effective price management in response to significant inflation in wages, and material, consumable, freight and distribution costs.
• Cash at quarter end was $139 million, with no net debt.
• During the period, we announced an increase in our quarterly dividend from $.13 per share to $.25 per share.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Building construction, the primary market we serve, remains healthy. The continued expansion of residential construction, along with the development of the infrastructure necessary to support local communities, will continue to drive demand for our portfolio of products. We believe we are well poised to benefit from both this ongoing trend, and from the anticipated recovery of other markets we serve that have been impacted by labor and supply chain issues. All in all, our performance remains consistent with the outlook we provided in our year-end report.”

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 26, 2022				March 27, 2021
Net sales		$	1,010,002			$	818,148
Cost of goods sold			744,511				668,418
Depreciation and amortization			10,841				11,755
Selling, general, and administrative expense			47,456				45,435
Gain on sale of assets			(5,507	)			—
Operating income			212,701				92,540
Interest expense			(158	)			(4,469	)
Other income, net			780				577
Income before income taxes			213,323				88,648
Income tax expense			(54,199	)			(21,761	)
Income (loss) from unconsolidated affiliates, net of foreign tax			124				(1,649	)
Consolidated net income			159,248				65,238
Net income attributable to noncontrolling interests			(932	)			(2,131	)
Net income attributable to Mueller Industries, Inc.		$	158,316			$	63,107
Weighted average shares for basic earnings per share			56,100				55,916
Effect of dilutive stock-based awards			810				756
Adjusted weighted average shares for diluted earnings per share			56,910				56,672
Basic earnings per share		$	2.82			$	1.13
Diluted earnings per share		$	2.78			$	1.11
Dividends per share		$	0.25			$	0.13
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
		For the Quarter Ended
(In thousands)		March 26, 2022				March 27, 2021
Summary Segment Data:
Net sales:
Piping Systems Segment		$	703,430			$	547,748
Industrial Metals Segment			174,312				164,852
Climate Segment			140,622				111,026
Elimination of intersegment sales			(8,362	)			(5,478	)
Net sales		$	1,010,002			$	818,148
Operating income:
Piping Systems Segment		$	160,488			$	67,098
Industrial Metals Segment			23,259				18,847
Climate Segment			36,700				17,335
Unallocated income (expenses)			(7,746	)			(10,740	)
Operating income		$	212,701			$	92,540

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
		(Unaudited)
(In thousands)		March 26, 2022			December 25, 2021
ASSETS
Cash and cash equivalents		$	139,255		$	87,924
Accounts receivable, net			588,397			471,859
Inventories			471,949			430,244
Other current assets			40,947			28,976
Total current assets			1,240,548			1,019,003
Property, plant, and equipment, net			380,711			385,562
Operating lease right-of-use assets			21,965			23,510
Other assets			302,726			300,861
Total assets		$	1,945,950		$	1,728,936
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt		$	812		$	811
Accounts payable			226,712			180,793
Current portion of operating lease liabilities			5,650			6,015
Other current liabilities			218,422			194,820
Total current liabilities			451,596			382,439
Long-term debt			1,098			1,064
Pension and postretirement liabilities			16,518			17,533
Environmental reserves			17,137			17,678
Deferred income taxes			15,861			14,347
Noncurrent operating lease liabilities			16,010			17,099
Other noncurrent liabilities			21,586			21,813
Total liabilities			539,806			471,973
Total Mueller Industries, Inc. stockholders’ equity			1,370,400			1,222,118
Noncontrolling interests			35,744			34,845
Total equity			1,406,144			1,256,963
Total liabilities and equity		$	1,945,950		$	1,728,936

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		For the Quarter Ended
(In thousands)		March 26, 2022				March 27, 2021
Cash flows from operating activities
Consolidated net income		$	159,248			$	65,238
Reconciliation of consolidated net income to net cash provided by (used in) operating activities:
Depreciation and amortization			10,930				11,775
Stock-based compensation expense			2,573				2,109
Provision for doubtful accounts receivable			125				1,631
(Income) loss from unconsolidated affiliates			(124	)			1,649
Gain on disposals of properties			(5,507	)			(936	)
Deferred income tax expense			258				142
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables			(116,610	)			(89,972	)
Inventories			(40,803	)			(45,590	)
Other assets			314				1,230
Current liabilities			54,344				33,941
Other liabilities			(1,752	)			(3,703	)
Other, net			(137	)			(95	)
Net cash provided by (used in) operating activities			62,859				(22,581	)
Cash flows from investing activities
Capital expenditures			(5,259	)			(9,227	)
Acquisition of businesses, net of cash acquired			—				(14,029	)
Proceeds from sales of properties			6,219				1,730
Dividends from unconsolidated affiliates			959				—
Net cash provided by (used in) investing activities			1,919				(21,526	)
Cash flows from financing activities
Repurchase of common stock			(3,972	)			—
Issuance of debt			—				100,000
Repayments of debt			(56	)			(35,288	)
Issuance of debt by consolidated joint ventures, net			—				45
Net cash (used) received to settle stock-based awards			(230	)			221
Net cash (used in) provided by financing activities			(4,258	)			64,978
Effect of exchange rate changes on cash			301				784
Increase in cash, cash equivalents, and restricted cash			60,821				21,655
Cash, cash equivalents, and restricted cash at the beginning of the period			90,376				127,376
Cash, cash equivalents, and restricted cash at the end of the period		$	151,197			$	149,031

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220419005203/en/

Jeffrey A. Martin

(901) 753-3226

Source: Mueller Industries, Inc.

FAQ

What were Mueller Industries' first-quarter earnings for 2022?

Mueller Industries reported earnings of $158.3 million for the first quarter of 2022.

How did Mueller Industries' net sales change in Q1 2022?

Net sales increased to $1.01 billion in Q1 2022, compared to $818.1 million in Q1 2021.

What is the EPS reported by Mueller Industries for Q1 2022?

The company reported an EPS of $2.78 for the first quarter of 2022.

What factors contributed to the increase in sales at Mueller Industries?

The increase in sales was driven by higher commodity prices and volume growth from recent acquisitions.

What is the new dividend per share for Mueller Industries?

Mueller Industries raised its quarterly dividend from $0.13 to $0.25 per share.