Mueller Industries, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results

Rhea-AI Summary

Mueller Industries, Inc. (NYSE: MLI) reported strong Q4 and full-year 2021 results. Q4 highlights include:

• Operating income soared to $172.1 million, up 165%.
• Net sales reached $956.4 million, a 42% increase.
• Net income jumped to $125.6 million from $36.4 million.
• Diluted EPS rose to $2.21 from $0.64.

Full-year results showed:

• Operating income of $655.8 million, up 167%.
• Net sales climbed to $3.8 billion, a 57% increase.
• Net income was $468.5 million versus $139.5 million.
• Diluted EPS reached $8.25 versus $2.47.

Positive

• Operating income increased by 165% in Q4 and 167% for the full year.
• Net sales grew 42% in Q4 and 57% for the year, driven by strong demand.
• Diluted EPS for Q4 soared to $2.21, up from $0.64.

Negative

• The company reported a $1.8 million loss on its investment in Tecumseh.
• Excluding gains from business sales, results were impacted by inflation and supply chain disruptions.

COLLIERVILLE, Tenn.--(BUSINESS WIRE)-- Mueller Industries, Inc. (NYSE: MLI) today reported 2021 fourth quarter and full year results.

Fourth Quarter metrics:

• Operating income was $172.1 million, up 165%.
• Net sales were $956.4 million, up 42%.
• Net income was $125.6 million versus $36.4 million.
• Diluted EPS was $2.21 versus $0.64.
• Cash provided by operations was $130.2 million.

Full Year metrics:

• Operating income was $655.8 million, up 167%.
• Net sales were $3.8 billion, up 57%.
• Net income was $468.5 million versus $139.5 million.
• Diluted EPS was $8.25 versus $2.47.
• Cash provided by operations was $311.7 million.

*Comparisons to prior year periods

Quarter Commentary

• The average price of copper was 34.3 percent higher than in the fourth quarter of 2020.
• Net sales growth was driven by volume growth in our US businesses, higher prices primarily attributable to the rise in COMEX copper, and the contributions of our recently acquired H&C Flex business, which is recorded under our Climate segment.
• The Company recorded a loss of $1.8 million on its investment in Tecumseh during the quarter, compared to income of $10.0 million in the previous year quarter, which included a pre-tax gain of $11.6 million from a land sale.
• During the quarter we acquired the majority ownership of the Mueller Middle East copper tube mill in Bahrain. This mill is geographically well positioned to serve markets in the Middle East and Northern Africa.

Full Year Commentary

• The results included $57.8 million of gains from the sale of businesses.
• The average price of copper was 51.6 percent higher than in 2020.
• Net sales growth of $1.4 billion was driven by volume growth in almost every business, higher selling prices primarily resulting from the rise in COMEX copper, and full year reported sales of acquired businesses.
• During the year, $330.7 million of debt was repaid leaving a balance of $1.9 million at year-end. The Company’s $400.0 million credit facility is undrawn and cash and cash equivalents totaled $87.9 million.

Operating Highlights and Outlook:

Greg Christopher, CEO, commented, “Our exceptional results in the fourth quarter capped our second consecutive year of record earnings. The strength our businesses exhibited throughout the year was fueled by solid demand and outstanding operational execution by our team in the face of significant inflationary pressures, supply chain disruptions, and extensive labor shortages.”

With regard to the outlook, he added, “We anticipate continued momentum in the building construction and industrial markets in 2022, both important end markets for our businesses. Mueller is well positioned to build upon its success as we start the new year with healthy order books and our manufacturing facilities operating at highly efficient levels.”

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 Year Ended
(In thousands, except per share data)	December 25, 2021				December 26, 2020				December 25, 2021				December 26, 2020
Net sales	$	956,357			$	675,851			$	3,769,345			$	2,398,043
Cost of goods sold		726,594				553,507				2,938,989				1,966,161
Depreciation and amortization		11,633				11,955				45,390				44,843
Selling, general, and administrative expense		48,729				44,649				184,052				159,483
Gain on sale of businesses		(3,001	)			—				(57,760	)			—
Litigation settlement, net		—				—				—				(22,053	)
Impairment charges		261				736				2,829				3,771
Operating income		172,141				65,004				655,845				245,838
Interest expense		(258	)			(4,010	)			(7,709	)			(19,247	)
Environmental expense		(982	)			(3,488	)			(5,053	)			(4,454	)
Redemption premium		—				—				(5,674	)			—
Pension plan termination expense		—				(17,835	)			—				(17,835	)
Other income, net		947				287				3,730				4,887
Income before income taxes		171,848				39,958				641,139				209,189
Income tax expense		(44,862	)			(12,698	)			(165,858	)			(55,321	)
(Loss) income from unconsolidated affiliates, net of foreign tax		(288	)			9,994				(157	)			(10,219	)
Consolidated net income		126,698				37,254				475,124				143,649
Net income attributable to noncontrolling interests		(1,097	)			(834	)			(6,604	)			(4,156	)
Net income attributable to Mueller Industries, Inc.	$	125,601			$	36,420			$	468,520			$	139,493
Weighted average shares for basic earnings per share		56,104				55,869				56,011				55,821
Effect of dilutive stock-based awards		796				673				787				569
Adjusted weighted average shares for diluted earnings per share		56,900				56,542				56,798				56,390
Basic earnings per share	$	2.24			$	0.65			$	8.36			$	2.50
Diluted earnings per share	$	2.21			$	0.64			$	8.25			$	2.47
Dividends per share	$	0.13			$	0.10			$	0.52			$	0.40

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
	For the Quarter Ended								For the Year Ended
(In thousands)	December 25, 2021				December 26, 2020				December 25, 2021				December 26, 2020
Summary Segment Data:
Net sales:
Piping Systems Segment	$	652,466			$	454,535			$	2,600,030			$	1,583,002
Industrial Metals Segment		176,226				133,507				703,363				472,159
Climate Segment		130,428				93,148				495,414				370,131
Elimination of intersegment sales		(2,763	)			(5,339	)			(29,462	)			(27,249	)
Net sales	$	956,357			$	675,851			$	3,769,345			$	2,398,043
Operating income:
Piping Systems Segment	$	142,482			$	43,106			$	486,287			$	165,719
Industrial Metals Segment		27,077				15,662				85,475				54,065
Climate Segment		21,757				13,279				85,536				56,802
Unallocated expenses		(19,175	)			(7,043	)			(1,453	)			(30,748	)
Operating income	$	172,141			$	65,004			$	655,845			$	245,838

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)	December 25, 2021			December 26, 2020
ASSETS
Cash and cash equivalents	$	87,924		$	119,075
Accounts receivable, net		471,859			357,532
Inventories		430,244			315,002
Other current assets		28,976			33,752
Total current assets		1,019,003			825,361
Property, plant, and equipment, net		385,562			376,572
Operating lease right-of-use assets		23,510			29,301
Other assets		300,861			297,334
	$	1,728,936		$	1,528,568
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt	$	811		$	41,283
Accounts payable		180,793			147,741
Current portion of operating lease liabilities		6,015			6,259
Other current liabilities		194,820			144,360
Total current liabilities		382,439			339,643
Long-term debt		1,064			286,593
Pension and postretirement liabilities		17,533			26,841
Environmental reserves		17,678			21,256
Deferred income taxes		14,347			16,842
Noncurrent operating lease liabilities		17,099			21,602
Other noncurrent liabilities		21,813			14,731
Total liabilities		471,973			727,508
Total Mueller Industries, Inc. stockholders’ equity		1,222,118			776,745
Noncontrolling interests		34,845			24,315
Total equity		1,256,963			801,060
	$	1,728,936		$	1,528,568

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	For the Year Ended
(In thousands)	December 25, 2021				December 26, 2020
Cash flows from operating activities
Consolidated net income	$	475,124			$	143,649
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization		45,655				45,162
Stock-based compensation expense		9,822				8,570
Provision for doubtful accounts receivable		1,216				1,208
Loss from unconsolidated affiliates		157				10,219
Non-cash pension plan termination expense		—				11,642
Gain on sale of businesses		(57,760	)			—
(Gain) loss on disposals of assets		(769	)			132
Redemption premium		5,674				—
Impairment charges		2,829				3,771
Deferred income tax expense (benefit)		7,413				(4,046	)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables		(124,708	)			(76,404	)
Inventories		(119,514	)			5,207
Other assets		919				20,609
Current liabilities		73,755				74,097
Other liabilities		(5,467	)			(1,142	)
Other, net		(2,645	)			2,399
Net cash provided by operating activities		311,701				245,073
Cash flows from investing activities
Proceeds from sale of assets, net of cash transferred		2,302				181
Proceeds from sale of business, net of cash sold		81,884				—
Acquisition of businesses, net of cash acquired		(30,206	)			(72,648	)
Capital expenditures		(31,833	)			(43,885	)
Payment received for (issuance of) notes receivable		8,539				(9,270	)
Investments in unconsolidated affiliates		(1,613	)			—
Net cash provided by (used in) investing activities		29,073				(125,622	)

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)
	For the Year Ended
(In thousands)	December 25, 2021				December 26, 2020
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.		(29,137	)			(22,341	)
Dividends paid to noncontrolling interests		(9,722	)			—
Issuance of long-term debt		595,000				190,038
Repayments of long-term debt		(920,610	)			(246,898	)
Repayment of debt by consolidated joint ventures, net		(5,113	)			(259	)
Repurchase of common stock		(4,864	)			(5,574	)
Payment of contingent consideration		(1,250	)			(7,000	)
Net cash received (used) to settle stock-based awards		85				(230	)
Debt issuance costs		(1,111	)			—
Net cash used in financing activities		(376,722	)			(92,264	)
Effect of exchange rate changes on cash		(1,052	)			2,147
(Decrease) increase in cash, cash equivalents, and restricted cash		(37,000	)			29,334
Cash, cash equivalents, and restricted cash at the beginning of the year		127,376				98,042
Cash, cash equivalents, and restricted cash at the end of the year	$	90,376			$	127,376

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220201005376/en/

Jeffrey A. Martin

(901) 753-3226

Source: Mueller Industries, Inc.

FAQ

What were Mueller Industries' Q4 earnings for 2021?

Mueller Industries reported Q4 operating income of $172.1 million and net income of $125.6 million, with diluted EPS at $2.21.

How did Mueller Industries perform in 2021?

The company achieved full-year net sales of $3.8 billion, a 57% increase, with net income reaching $468.5 million.

What factors drove Mueller Industries' sales growth?

Sales growth was primarily driven by volume increases, higher copper prices, and contributions from the acquired H&C Flex business.

What is the outlook for Mueller Industries in 2022?

The company anticipates continued growth in building construction and industrial markets, supported by strong order books.