Mueller Industries, Inc. Reports Fourth Quarter And Fiscal 2012 Results
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
- For 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.
- The 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.
- For 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.
- Capital 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.
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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 amortization |
8,177 |
9,284 |
31,495 |
36,865 |
|||
| Selling, general, and administrative expense |
32,247 |
33,009 |
129,456 |
135,953 |
|||
| Insurance settlement |
- |
- |
(1,500) |
- |
|||
| Litigation settlements |
(4,050) |
- |
(4,050) |
(10,500) |
|||
| 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) income, net |
(424) |
487 |
539 |
1,912 |
|||
| Income before income taxes |
23,941 |
19,087 |
120,354 |
130,161 |
|||
| Income tax expense |
(7,195) |
(6,015) |
(36,681) |
(43,075) |
|||
| Consolidated net income |
16,746 |
13,072 |
83,673 |
87,086 |
|||
| Less net income attributable to noncontrolling interest |
(378) |
(144) |
(1,278) |
(765) |
|||
| Net income attributable to Mueller Industries, Inc. |
$ 16,368 |
$ 12,928 |
$ 82,395 |
$ 86,321 |
|||
| Weighted average shares |
|||||||
| for basic earnings per share |
27,782 |
38,001 |
35,332 |
37,835 |
|||
| Effect of dilutive stock-based awards |
324 |
341 |
414 |
361 |
|||
| Adjusted weighted average shares |
|||||||
| for diluted earnings per share |
28,106 |
38,342 |
35,746 |
38,196 |
|||
| 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 intersegment sales |
(2,879) |
(5,430) |
(22,898) |
(32,433) |
|||
| 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. stockholders' equity |
506,908 |
855,688 |
|
| 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 options |
(2,528) |
(853) |
||||
| 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 cash balances |
9,243 |
(3,055) |
||||
| 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 Industries, Inc. |
(14,891) |
(15,146) |
||||
| (Repayment) issuance of debt by joint venture, net |
(14,429) |
6,162 |
||||
| Repayment of long-term debt |
(149,176) |
(750) |
||||
| Issuance of long-term debt |
200,000 |
- |
||||
| Net cash (used) received to settle stock-based awards |
(4,181) |
3,880 |
||||
| Income tax benefit from the exercise of stock options |
2,528 |
853 |
||||
| 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 equivalents |
(315,228) |
120,023 |
||||
| Cash and cash equivalents at the beginning of the period |
514,162 |
394,139 |
||||
| Cash and cash equivalents at the end of the period |
$ 198,934 |
$ 514,162 |
||||
SOURCE Mueller Industries, Inc.
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