Mueller Industries, Inc. Reports First Quarter 2013 Results

         Mueller Industries, Inc. Reports First Quarter 2013 Results

  PR Newswire

  MEMPHIS, Tennessee, April 23, 2013

MEMPHIS, Tennessee, April 23, 2013 /PRNewswire/ -- Mueller Industries, Inc.
(NYSE: MLI) announced today that net income for the first quarter of 2013 was
$26.2 million or 93 cents per diluted share, compared with net income of $32.6
million or 85 cents per diluted share in 2012. The first quarter of 2013
included non-recurring gains of 7 cents versus 15 cents for the same quarter
of 2012.

Our earnings per share were favorably affected by the repurchase of 10.4
million of our shares in September of 2012. By this purchase, our outstanding
shares were reduced from 38.5 million shares to 28.1 million shares.

Net sales for the first quarter of 2013 were $559.7 million compared with
$577.7 million for the same quarter of the prior year. The difference in sales
was largely due to (i) the decline in copper prices, which averaged $3.60 per
pound in the first quarter of 2013 versus $3.78 per pound in the first quarter
of 2012, and (ii) slightly lower unit volume in our OEM segment.

Our financial condition remains strong. We ended the quarter with:

  *$184 million of cash on hand or $6.54 per share,
  *$556 million of equity and a debt to total capitalization ratio of 31.9
    percent, and
  *a current ratio of 2.8 to 1.

Regarding the outlook for 2013, Greg Christopher, CEO, said, "For the first
time since mid-2008, housing starts rose to a 1.04 million seasonally adjusted
rate in March 2013. Historically, the commercial and industrial segments of
the construction industry have, with some lag in time, followed the
improvement in the housing segment. We believe that as the year progresses, we
will benefit from the increasing vigor of these markets."

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: (i) the
construction of new homes; (ii) the improvement and reconditioning of existing
homes and structures; and (iii) 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
                                                    March 30,     March 31,
                                                       2013          2012
                                                          (Unaudited)
Net sales                                          $  559,690  $  577,668
Cost of goods sold                                      482,850       493,175
Depreciation and amortization                             8,154         7,529
Selling, general, and administrative expense             31,343        31,602
Insurance settlement                                          -       (1,500)
Operating income                                         37,343        46,862
Interest expense                                          (596)       (2,637)
Other income, net                                         3,163           254
Income before income taxes                               39,910        44,479
Income tax expense                                     (13,476)      (11,662)
Consolidated net income                                  26,434        32,817
Net income attributable to noncontrolling
interest                                                  (232)         (218)
Net income attributable to Mueller Industries,
Inc.                                               $   26,202  $   32,599
Weighted average shares
for basic earnings per share                             27,822        38,014
Effect of dilutive stock-based awards                       374           444
Adjusted weighted average shares
for diluted earnings per share                           28,196        38,458
Basic earnings per share                           $    0.94  $    0.86
Diluted earnings per share                         $    0.93  $    0.85
Dividends per share                                $   0.125  $    0.10
Summary Segment Data:
Net sales:
Plumbing & Refrigeration Segment                   $  311,814  $  315,354
OEM Segment                                             253,787       270,976
Elimination of intersegment sales                       (5,911)       (8,662)
Net sales                                          $  559,690  $  577,668
Operating income:
Plumbing & Refrigeration Segment                   $   22,625  $   28,258
OEM Segment                                              20,323        24,725
Unallocated expenses                                    (5,605)       (6,121)
Operating income                                   $   37,343  $   46,862

                          MUELLER INDUSTRIES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                                    March 30,    December 29,
                                                       2013          2012
                                                          (Unaudited)
  ASSETS
  Cash and cash equivalents                        $  183,866  $  198,934
  Accounts receivable, net                              311,601       271,093
  Inventories                                           228,211       229,434
  Other current assets                                   61,479        47,733
   Total current assets                              785,157       747,194
  Property, plant, and equipment, net                   233,959       233,263
  Other assets                                          123,797       123,698
                                                   $ 1,142,913  $ 1,104,155
  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current portion of debt                          $   53,575  $   27,570
  Accounts payable                                       82,140        87,574
  Other current liabilities                             145,785       143,552
   Total current liabilities                         281,500       258,696
  Long-term debt                                        207,050       207,300
  Pension and postretirement liabilities                 53,293        55,019
  Environmental reserves                                 22,438        22,597
  Deferred income taxes                                  21,228        20,910
  Other noncurrent liabilities                              945         1,667
   Total liabilities                                 586,454       566,189
  Total Mueller Industries, Inc. stockholders'
  equity                                                525,202       506,908
  Noncontrolling interest                                31,257        31,058
   Total equity                                      556,459       537,966
                                                   $ 1,142,913  $ 1,104,155

                          MUELLER INDUSTRIES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                                     For the Quarter Ended
                                                    March 30,     March 31,
                                                       2013          2012
                                                          (Unaudited)
Operating activities:
Consolidated net income                            $   26,434  $   32,817
Reconciliation of net income to net cash used in
operating activities:
           Depreciation and amortization                  8,250         7,621
           Stock-based compensation expense                 946           898
           Insurance settlement                               -       (1,500)
           Insurance proceeds - noncapital
           related                                            -         9,000
           (Gain) loss on disposal of properties        (3,003)            26
           Deferred income taxes                        (1,313)       (2,470)
           Income tax benefit from exercise of
           stock options                                   (30)          (21)
           Changes in assets and liabilities:
           Receivables                                 (42,680)      (66,992)
           Inventories                                      212      (13,744)
           Other assets                                   2,585       (1,294)
           Current liabilities                          (5,365)        24,688
           Other liabilities                              (753)           151
           Other, net                                     (198)            38
Net cash used in operating activities                  (14,915)      (10,782)
Investing activities:
Capital expenditures                                    (9,835)       (9,340)
Insurance proceeds for property damage                        -        32,500
Net (deposits in) withdrawals from restricted
cash balances                                          (14,800)         2,166
Proceeds from sales of properties                         3,002            87
Net cash (used in) provided by investing
activities                                             (21,633)        25,413
Financing activities:
Dividends paid                                          (3,479)       (3,802)
Debt issuance costs                                        (50)             -
Issuance of debt by joint venture, net                   26,060           899
Repayment of long-term debt                               (250)         (250)
Net cash received to settle stock-based awards               65            73
Income tax benefit from exercise of stock options            30            21
Net cash provided by (used in) financing
activities                                               22,376       (3,059)
Effect of exchange rate changes on cash                   (896)         1,151
(Decrease) increase in cash and cash equivalents       (15,068)        12,723
Cash and cash equivalents at the beginning of the
period                                                  198,934       514,162
Cash and cash equivalents at the end of the
period                                             $  183,866  $  526,885

Website: http://www.muellerindustries.com
Contact: Jeffrey A. Martin, +1-901-753-3226