Mueller Industries, Inc. Reports Fourth Quarter And Fiscal 2012 Results

   Mueller Industries, Inc. Reports Fourth Quarter And Fiscal 2012 Results

PR Newswire

MEMPHIS, Tenn., Feb. 5, 2013

MEMPHIS, Tenn., Feb. 5, 2013 /PRNewswire/ --Mueller Industries, Inc. (NYSE:
MLI) announced today that net income for the fourth quarter ending December
29, 2012 was $16.4 million, or 58 cents per diluted share, compared with net
income of $12.9 million, or 34 cents per diluted share in the fourth quarter
of 2011.

This 71 percent increase in per share earnings for the fourth quarter was
principally due to the decrease in our outstanding shares. In September of
2012, Mueller repurchased 10.4 million of its outstanding common shares at $41
per share. There remain 28.1 million shares currently outstanding. Net sales
for the fourth quarter of 2012 totaled $504.0 million compared with $491.4
million in the fourth quarter of the prior year.

Net income for the fiscal year totaled $82.4 million, or $2.31 per diluted
share, on net sales of $2.19 billion. This compares to $86.3 million, or
$2.26 per diluted share, on net sales of $2.42 billion in 2011. Included in
net income was a favorable litigation settlement gain in the first quarter of
2011 of $10.5 million, or 18 cents per diluted share. The decrease in net
sales was predominantly attributable to lower copper costs that impact the
selling prices of our products. Copper prices decreased to an average of
$3.61 per pound in 2012 compared with $4.01 per pound in 2011.

Financial and Operating Highlights

  oFor the fourth quarter of 2012, the Plumbing & Refrigeration segment
    posted operating income of $18.6 million on net sales of $293.3 million,
    which compares with operating income of $16.4 million on net sales of
    $277.0 million in the fourth quarter of 2011.
  oThe OEM segment reported operating income of $12.9 million on net sales of
    $213.6 million for the fourth quarter of 2012. This compares with
    operating income of $12.0 million on net sales of $219.8 million in the
    fourth quarter of 2011.
  oFor 2012, net cash provided by operating activities was $108.3 million,
    ending the year with $198.9 million of cash on hand, equal to $7.08 per
    share. 
  oCapital expenditures during 2012 totaled $56.8 million. The Company has
    additional improvement projects underway in its core manufacturing
    operations, which will reduce costs and increase capacity.

Business Outlook for 2013

Regarding the outlook for 2013, Greg Christopher, CEO said, "Mueller's
business is significantly dependent on the housing and commercial construction
industry. After more than five years of decline and stagnation, the industry
finally appears to be gaining positive momentum.

"We note that Mueller was able to earn more than $100 million in operating
income per year (except for 2009) during the difficult years following the
housing bust and financial meltdown of 2007. We look forward to the
anticipated recovery years with optimism."

Mueller Industries, Inc. is a leading manufacturer of copper tube and
fittings; brass and copper alloy rod, bar and shapes; aluminum and brass
forgings; aluminum and copper impact extrusions; plastic fittings and valves;
refrigeration valves and fittings; and fabricated tubular products. Mueller's
operations are located throughout the United States and in Canada, Mexico,
Great Britain, and China. Mueller's business is importantly linked to: (1)
the construction of new homes; (2) the improvement and reconditioning of
existing homes and structures; and (3) the commercial construction market
which includes office buildings, factories, hotels, hospitals, etc.

*********************

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 "pro forma", "outlook," "estimate,"
"project," "intend," "expect," "believe," "target," 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
(In thousands, except per share data)
                      For the Quarter Ended       For the Year Ended
                      December 29,  December 31,  December 29,   December 31,
                      2012          2011          2012           2011
                      (Unaudited)                 (Unaudited)
Net sales             $          $          $            $  
                      504,006      491,384      2,189,938     2,417,797
Cost of goods sold    438,719       427,942       1,904,463      2,115,677
Depreciation and      8,177         9,284         31,495         36,865
amortization
Selling, general, and
administrative        32,247        33,009        129,456        135,953
expense
Insurance settlement  -             -             (1,500)        -
Litigation            (4,050)       -             (4,050)        (10,500)
settlements
Severance             3,369         -             3,369          -
Operating income      25,544        21,149        126,705        139,802
Interest expense      (1,179)       (2,549)       (6,890)        (11,553)
Other (expense)       (424)         487           539            1,912
income, net
Income before income  23,941        19,087        120,354        130,161
taxes
Income tax expense    (7,195)       (6,015)       (36,681)       (43,075)
Consolidated net      16,746        13,072        83,673         87,086
income
Less net income
attributable to       (378)         (144)         (1,278)        (765)
noncontrolling
interest
Net income
attributable to       $         $         $          $    
Mueller Industries,   16,368       12,928       82,395        86,321
Inc.
Weighted average
shares
 for basic        27,782        38,001        35,332         37,835
earnings per share
Effect of dilutive    324           341           414            361
stock-based awards
Adjusted weighted
average shares
 for diluted      28,106        38,342        35,746         38,196
earnings per share
Basic earnings per    $        $        $        $      
share                  0.59         0.34        2.33           2.28
Diluted earnings per  $        $        $        $      
share                  0.58         0.34        2.31           2.26
Dividends per share   $        $        $         $     
                      0.125         0.100         0.425          0.400
Summary Segment Data:
Net sales:
Plumbing &            $          $          $            $  
Refrigeration segment 293,275      277,001      1,238,230     1,330,435
OEM segment           213,610       219,813       974,606        1,119,795
Elimination of        (2,879)       (5,430)       (22,898)       (32,433)
intersegment sales
Net sales             $          $          $            $  
                      504,006      491,384      2,189,938     2,417,797
Operating income:
Plumbing &            $         $         $          $    
Refrigeration segment 18,558       16,404       87,014        84,761
OEM segment           12,884        12,036        67,087         72,670
Unallocated expenses  (5,898)       (7,291)       (27,396)       (17,629)
Operating income      $         $         $           $   
                      25,544       21,149       126,705       139,802

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                            December 29,      December 31,
                                            2012              2011
                                            (Unaudited)
ASSETS
Cash and cash equivalents                   $    198,934   $    514,162
Accounts receivable, net                    271,093           250,027
Inventories                                 229,434           219,193
Other current assets                        47,733            43,317
 Total current assets                    747,194           1,026,699
Property, plant, and equipment, net         233,263           203,744
Other assets                                123,698           117,161
                                            $  1,104,155    $  1,347,604
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt           $     27,570  $     41,265
Accounts payable                            87,574            65,545
Other current liabilities                   143,552           106,434
 Total current liabilities               258,696           213,244
Long-term debt                              207,300           156,476
Pension and postretirement liabilities      55,019            54,244
Environmental reserves                      22,597            22,892
Deferred income taxes                       20,910            14,856
Other noncurrent liabilities                1,667             1,130
 Total liabilities                       566,189           462,842
Total Mueller Industries, Inc.              506,908           855,688
stockholders' equity
Noncontrolling interest                     31,058            29,074
 Total equity                            537,966           884,762
                                            $  1,104,155    $  1,347,604

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                For the Year Ended
                                                December 29,    December 31,
                                                2012            2011
                                                (Unaudited)
Operating activities:
Consolidated net income                         $    83,673  $    87,086
Reconciliation of consolidated net income
 to net cash provided by operating activities:
   Depreciation and amortization                31,932          37,262
   Stock-based compensation expense             6,136           3,482
   Insurance settlement                         (1,500)         -
   Insurance proceeds - noncapital related      14,250          10,000
   Loss (gain) on disposal of properties        1,411           (202)
   Deferred income taxes                        (1,284)         (4,190)
   Income tax benefit from exercise of stock    (2,528)         (853)
   options
   Changes in assets and liabilities, net of
   businesses acquired:
                 Receivables                    (22,853)        28,487
                 Inventories                    (4,834)         (15,678)
                 Other assets                   (14,985)        460
                 Current liabilities            8,368           7,966
                 Other liabilities              9,345           (1,593)
                 Other, net                     1,166           1,522
Net cash provided by operating activities       108,297         153,749
Investing activities:
Capital expenditures                            (56,825)        (18,751)
Businesses acquired                             (11,561)        (6,882)
Insurance proceeds for property and equipment   42,250          -
Net withdrawals from (deposits in) restricted   9,243           (3,055)
cash balances
Proceeds from sales of properties               517             1,984
Net cash used in investing activities           (16,376)        (26,704)
Financing activities:
Dividends paid to stockholders of Mueller       (14,891)        (15,146)
Industries, Inc.
(Repayment) issuance of debt by joint venture,  (14,429)        6,162
net
Repayment of long-term debt                     (149,176)       (750)
Issuance of long-term debt                      200,000         -
Net cash (used) received to settle stock-based  (4,181)         3,880
awards
Income tax benefit from the exercise of stock   2,528           853
options
Repurchase of common stock                      (427,448)       -
Debt issuance costs                             (1,051)         (1,943)
Net cash used in financing activities           (408,648)       (6,944)
Effect of exchange rate changes on cash         1,499           (78)
(Decrease) increase in cash and cash            (315,228)       120,023
equivalents
Cash and cash equivalents at the beginning of   514,162         394,139
the period
Cash and cash equivalents at the end of the     $   198,934  $   514,162
period

SOURCE Mueller Industries, Inc.

Contact: Jeffrey A. Martin, +1-901-753-3226
 
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