Mueller Industries Inc.: Mueller Industries, Inc. Reports Third Quarter 2013 Earnings

 Mueller Industries Inc.: Mueller Industries, Inc. Reports Third Quarter 2013
                                   Earnings

MEMPHIS, Tenn., October 22, 2013 -- Mueller Industries, Inc. (NYSE: MLI)
announced today that Mueller's net income attributable to normal operations in
the third quarter of 2013 was $19.5 million, or 69 cents per diluted share.
This compares with net income of $15.5 million, or 41 cents per diluted
share, for the same period of 2012. 

In addition, during the third quarter of 2013, the Company recognized an
after-tax gain of $22.9 million (or 81 cents per diluted share) on the sale of
its Schedule 40 pressure plastics fittings business along with the sale of
certain other plastic fittings manufacturing assets. Also during the third
quarter of 2013, the Company recognized an after-tax asset impairment charge
of $2.6 million (or 9 cents per diluted share) primarily related to real
property associated with the aforementioned plastics sale transaction.
Including these non-recurring items, the Company's net income in the third
quarter of 2013 was $39.9 million, or $1.41 per diluted share.

Net sales for the third quarter of 2013 were $528.9 million compared with
$514.2 million in the third quarter of 2012. The increase in net sales was
principally due to a 6.6 percent overall increase in unit volumes offset
somewhat by lower copper costs that impacted the selling prices of the
Company's products. Copper prices decreased to an average of $3.23 per pound
in the third quarter of 2013 compared with $3.53 per pound in the third
quarter of 2012.

Excluding the aforementioned non-recurring items, the Plumbing & Refrigeration
and OEM segments reported an increase in third quarter income from normal
operations of $1.1 million and $5.6 million, respectively, compared to the
same period in 2012 due notably to the improvement in volumes. 

At the end of the third quarter of 2013, the Company's net book value per
share was $23.41, of which $11.40 per share was cash. The Company ended the
quarter with $322.2 million of cash on hand and a current ratio of 3.8 to 1.

Regarding the outlook, Greg Christopher, Mueller's CEO said, "Mueller's
businesses perform best when unit volumes increase. This is because, once our
fixed costs are covered, each added increment of volume tends to generate
higher margins. This was well illustrated by our results for the quarter just
ended. We are on track to increase volumes as the construction industry
improves.

"In addition, subsequent to the end of the third quarter of 2013, Mueller
closed on the acquisition of Howell Metal Company and entered into a
definitive agreement to acquire KME's Yorkshire Copper Tube business, subject
to regulatory approval in the United Kingdom. Howell manufactures copper tube
and linesets for U.S. distribution while Yorkshire Copper Tube produces
European standard copper distribution tubes. These acquisitions complement
our strategy to grow and strengthen our core businesses."

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 that
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 "outlook," "estimate," "project," "intend,"
"expect," "believe," "target," "pro forma," 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.

CONTACT
Jeffrey A. Martin
(901)753-3226

                           MUELLER INDUSTRIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

                      For the QuarterEnded           For the Nine Months Ended
(In thousands,
except per share  September28,    September29,    September28,    September29,
data)                 2013             2012             2013             2012
Net sales         $     528,854    $     514,165    $   1,670,826    $   1,685,932
Cost of goods
sold                    456,302          449,718        1,440,277        1,465,744
Depreciation and
amortization              7,882            7,870           24,364           23,318
Selling,
general, and
administrative
expense                  32,921           32,120           99,078           97,209
Gain on sale of
plastic fittings
manufacturing
assets                  (39,765 )              -          (39,765 )              -
Impairment
charges                   4,304                -            4,304                -
Insurance
settlements                   -                -         (106,332 )         (1,500 )
Operating
income                   67,210           24,457          248,900          101,161
Interest expense         (1,243 )           (353 )         (2,940 )         (5,711 )
Other income,
net                         842              219            4,324              963
Income
before income
taxes                    66,809           24,323          250,284           96,413
Income tax
expense                 (26,816 )         (8,753 )        (92,015 )        (29,486 )
Consolidated
net income               39,993           15,570          158,269           66,927
Net income
attributable to
noncontrolling
interest                   (129 )            (59 )         (1,053 )           (900 )
Net income
attributable to
Mueller
Industries, Inc.  $      39,864    $      15,511    $     157,216    $      66,027
Weighted average
shares for
basicearnings
per share                27,894           37,505           27,852           37,849
Effect of
dilutive
stock-based
awards                      361              452              369              444
Adjusted
weighted average
shares for
diluted earnings
per share                28,255           37,957           28,221           38,293
Basic earnings
per share         $        1.43    $        0.41    $        5.64    $        1.74
Diluted earnings
per share         $        1.41    $        0.41    $        5.57    $        1.72
Dividends per
share             $       0.125    $        0.10    $       0.375    $        0.30
Summary Segment
Data:
Net sales:
Plumbing &
Refrigeration
Segment           $     301,622    $     297,913    $     942,109    $     944,955
OEM Segment         230,396          221,468          741,227          760,995
Elimination
of intersegment
sales                    (3,164 )         (5,216 )        (12,510 )        (20,018 )
Net sales         $     528,854    $     514,165    $   1,670,826    $   1,685,932
Operating
income:
Plumbing &
Refrigeration
Segment           $      54,271    $      17,593    $     206,708    $      68,456
OEM Segment          19,937           14,421           61,199           54,203
Unallocated
expenses                 (6,998 )         (7,557 )        (19,007 )        (21,498 )
Operating income  $      67,210    $      24,457    $     248,900    $     101,161

                           MUELLER INDUSTRIES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

(In thousands)                         September28, 2013   December29, 2012
ASSETS
Cash and cash equivalents              $          322,177   $         198,934
Accounts receivable, net                          312,919             271,093
Inventories                                       234,081             229,434
Other current assets                               55,166              47,733
Total current assets                          924,343             747,194
Property, plant, and equipment, net               222,751             233,263
Other assets                                      113,527             123,698
                                       $        1,260,621   $       1,104,155
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt                $           33,036   $          27,570
Accounts payable                                   76,725              87,574
Other current liabilities                         134,411             143,552
Total current liabilities                     244,172             258,696
Long-term debt                                    206,550             207,300
Pension and postretirement
liabilities                                        52,205              55,019
Environmental reserves                             22,435              22,597
Deferred income taxes                              39,698              20,910
Other noncurrent liabilities                        1,141               1,667
Total liabilities                             566,201             566,189
Total Mueller Industries, Inc.
stockholders' equity                              661,749             506,908
Noncontrolling interest                            32,671              31,058
Total equity                                  694,420             537,966
                                       $        1,260,621   $       1,104,155

                           MUELLER INDUSTRIES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                                           For the Nine Months Ended
(In thousands)                     September28, 2013    September29, 2012
Cash flows from operating
activities
Consolidated net income               $      158,269        $       66,927
Reconciliation of consolidated
net income to net cash
provided by operating
activities:
Depreciation and
amortization                                    24,583                23,713
Stock-based compensation
expense                                          4,560                 3,042
Insurance settlements                   (106,332 )              (1,500 )
Insurance proceeds -
noncapital related                              32,395                14,250
Gain on sale of plastic
fittings manufacturing assets                  (39,765 )                   -
(Gain) loss on disposal of
properties                                      (3,316 )                 175
Impairment charges                         4,304                     -
Deferred income taxes                     14,152                 2,319
Income tax benefit from
exercise of stock options                         (670 )                (517 )
Changes in assets and
liabilities, net of business
acquired:
Receivables                            (38,370 )             (15,779 )
Inventories                             (4,566 )                 585
Other assets                             4,886                (8,434 )
Current liabilities                     19,649               (21,120 )
Other liabilities                         (297 )               7,834
Other, net                                 508                 1,271
Net cash provided by
operatingactivities                            69,990                72,766
Cash flows from investing
activities
Capital expenditures                         (33,402 )             (43,841 )
Acquisition of business                            -               (11,503 )
Insurance proceeds for property
and equipment                                   29,910                42,250
Net (deposits into) withdrawals
from restricted cash balances                   (2,473 )               6,908
Proceeds from the sales of
assets                                          64,966                   502
Net cashprovided by (used in)
investing activities                            59,001                (5,684 )
Cash flows from financing
activities
Dividends paid to stockholders
of Mueller Industries, Inc.                    (10,449 )             (11,415 )
Debt issuance cost                               (50 )                   -
Issuance of long-term debt                         -               200,000
Issuance (repayment) of debt by
joint venture, net                               4,940               (28,955 )
Net cash used to settle
stock-based awards                                (337 )                (740 )
Repurchase of common stock                         -              (427,448 )
Repayments of long-term debt                    (750 )            (148,926 )
Income tax benefit from exercise
of stock options                                   670                   517
Net cash used in financing
activities                                      (5,976 )            (416,967 )
Effect of exchange rate changes on
cash                                               228                 1,478
Increase (decrease) in cash and
cash equivalents                               123,243              (348,407 )
Cash and cash equivalents at the
beginning of the period                        198,934               514,162
Cash and cash equivalents at the
end of the period                       $      322,177        $      165,755

                           MUELLER INDUSTRIES, INC.
Reconciliation of Net Income as Reported to Pro Forma Without Gain on Sale of
         Plastic Fittings Manufacturing Assets and Impairment Charges
                                 (Unaudited)

Earnings attributable to normal operations without the gain on sale of plastic
fittings manufacturing assets and impairment charges is a measurement not
derived in accordance with generally accepted accounting principles (GAAP).
Excluding the gain on sale of plastic fittings manufacturing assets and
impairment charges is useful as it measures the operating results that are the
outcome of daily operating decisions made in the normal course of business.
Reconciliation of earnings attributable to normal operations without the gain
on sale of plastic fittings manufacturing assets and impairment charges to net
income as reported is as follows:

                            For the Quarter Ended September 28, 2013
                                             Impact of
                                    Gain on Sale
                                         of
                                       Plastic
(In thousands,                        Fittings
except per share                    Manufacturing    Impairment
data)                As Reported       Assets         Charges      Pro Forma
Operating income     $    67,210    $      39,765    $   (4,304 )  $  31,749
Interest expense          (1,243 )              -             -       (1,243 )
Other income, net            842                -             -          842
Income before
income taxes              66,809           39,765        (4,304 )     31,348
Income tax expense       (26,816 )        (16,845 )       1,719      (11,690 )
Consolidated
net income                39,993           22,920        (2,585 )     19,658
Net income
attributable to
noncontrolling
interest                    (129 )              -             -         (129 )
Net income
attributable to
Mueller Industries,
Inc.                 $    39,864    $      22,920    $   (2,585 )  $  19,529
Diluted earnings
per share            $      1.41    $        0.81    $    (0.09 )  $    0.69

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Source: Mueller Industries Inc. via Thomson Reuters ONE
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