Mueller Industries, Inc. Reports First Quarter Earnings

Apr 17, 2001, 01:00 ET from Mueller Industries, Inc.

    MEMPHIS, Tenn., April 17 /PRNewswire/ --Mueller Industries today issued
 the following:
 
     Quarterly Earnings
     Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE:   MLI), today
 announced the Company's results for the first quarter of 2001.  Earnings for
 the three months ended March 31, 2001 were 42 cents per diluted share compared
 with earnings per diluted share of 69 cents for the same period a year ago.
 Net income for the first quarter was $15.5 million, compared with $26.6
 million for the first quarter of fiscal 2000.  Net sales for the three months
 ended March 31, 2001 were $276.6 million, compared with net sales of $309.3
 million for the comparable 2000 period.
 
     Financial Highlights
     Regarding the first quarter financial results, Mr. Karp said, "Mueller's
 sales and earnings declined as the overall economy slowed.  However, the
 Company remained solidly profitable with excellent cash flow and with a strong
 balance sheet that continued to strengthen."
 
     * "Mueller ended the quarter with $87.6 million in cash and a modest 13.8
        percent debt-to-total capitalization ratio.
     * "Interest expense declined to $1.4 million compared with $2.6 million
        during the same period last year.  The reduction was primarily
        attributable to our restructured bank credit facility combined with
        lower funded balances."
 
     Operating Highlights
     With regard to operations, Mr. Karp noted the following:
 
     * "We shipped 175.8 million pounds of product, versus 194 million pounds
       in the first quarter of 2000.
     * "Capital expenditures of $9.5 million related primarily to our U.S. and
       European copper tube operations and Brass Rod Mill horizontal continuous
       caster.
     * "We also began a project to install an additional extrusion press for
       our U.S. copper tube operations.  By adding extrusion capacity, we will
       ensure reliable supply for our customers during periods of scheduled and
       unscheduled maintenance.  Industrial revenue bonds were issued to fund
       this investment of approximately $10 million.
     * "Our Standard Products Division posted operating earnings of $23.8
       million, compared with $36.1 million in the first quarter of 2000.
       Standard Products Division's net sales were $203.5 million for the
       quarter, compared with $225.7 million for the same period a year ago.
     * "Our Industrial Products Division posted operating earnings of $5.1
       million during the first quarter on sales of $69.0 million which
       compares with operating earnings of $8.3 million from sales of $76.4
       million during the first quarter of 2000.
     * "Our European copper tube business posted improvements over the prior
       quarter although we continue to incur losses.  Our European
       modernization project dedicated to significantly reducing conversion
       costs is on schedule for completion in late 2001."
 
     Business Outlook
     Discussing the business outlook, Mr. Karp said, "Despite signs that the
 economy is slowing, we are optimistic that business will improve in the second
 quarter.  Our optimism is fueled by several factors:  the wet winter weather,
 which we had been spared for several years, put a damper on construction
 activity but is now behind us; the inventory adjustments made by our customers
 are now largely complete; significant steps have been taken to reduce our
 costs; and, the construction industry has shown remarkable resiliency, due in
 part, to declining mortgage rates.  Our strategy of building basic shareholder
 value over the long term has succeeded over the past decade and we continue to
 believe it is the best strategy going forward."
     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, market demand, pricing, and
 competitive and technological factors, among others, as set forth in the
 Company's SEC filings.
     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
 plants are located throughout the United States and in Canada, France, and
 Great Britain.  The Company also owns a short line railroad in Utah.
 
                                MUELLER INDUSTRIES, INC.
                       CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                          (In thousands, except per share data)
 
                                                 For the Quarter Ended
                                              March 31,         March 25,
                                                 2001              2000
                                                      (Unaudited)
 
           Net sales                          $276,578          $309,336
 
           Cost of goods sold                  218,116           233,500
           Depreciation and amortization        10,527             9,042
           Selling, general, and
            administrative expense              22,556            24,290
 
           Operating income                     25,379            42,504
           Interest expense                     (1,424)           (2,627)
           Environmental reserves                 (761)               --
           Other income, net                     1,766             2,224
 
           Income before income taxes           24,960            42,101
           Income tax expense                   (9,491)          (15,535)
 
           Net income                         $ 15,469          $ 26,566
           Earnings per share:
               Basic:
                   Weighted average shares
                    outstanding                 33,368            34,844
                   Basic earnings per
                    share                     $   0.46          $   0.76
               Diluted:
                   Weighted average shares
                    outstanding plus assumed
                     conversions                37,134            38,753
                   Diluted earnings per
                    share                     $   0.42          $   0.69
 
 
 
                                 MUELLER INDUSTRIES, INC.
                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                      (In thousands)
 
 
 
                                               March 31,        December 30,
                                                  2001              2000
                                                       (Unaudited)
           ASSETS
           Cash and cash equivalents           $ 87,615          $100,268
           Accounts receivable, net             172,878           152,157
           Inventories                          129,874           142,325
           Other current assets                   9,259            10,421
               Total current assets             399,626           405,171
 
           Property, plant, and equipment, net  377,449           379,885
           Other assets                         130,279           125,220
                                               $907,354          $910,276
 
 
           LIABILITIES AND STOCKHOLDERS'
            EQUITY
           Current portion of long-term
            debt                               $  5,265          $  5,909
           Accounts payable                      38,760            43,733
           Other current liabilities             65,800            68,207
               Total current liabilities        109,825           117,849
           Long-term debt                        94,946           100,975
           Other noncurrent liabilities          78,720            77,050
                Total liabilities               283,491           295,874
           Minority interest in
            subsidiaries                            297               297
           Stockholders' equity                 623,566           614,105
                                               $907,354          $910,276
 
 
                             MUELLER INDUSTRIES, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)
 
                                                  For the Quarter Ended
                                               March 31,        March 25,
                                                 2001              2000
                                                       (Unaudited)
     Operating activities:
     Net income                                $15,469          $ 26,566
     Reconciliation of net income to net
      cash
        provided by operating activities:
           Depreciation and amortization        10,527             9,042
           Deferred income taxes                 1,707             1,814
           Minority interest in
            subsidiaries, net                       --               (57)
           Gain on disposal of properties           (6)              (48)
           Changes in assets and
            liabilities, net                   (17,404)          (27,712)
 
     Net cash provided by operating
      activities                                10,293             9,605
     Investing activities:
     Capital expenditures                       (9,500)           (6,723)
     Other, net                                 (5,636)               80
     Net cash used in investing activities     (15,136)           (6,643)
     Financing activities:
     Acquisition of treasury stock                  --           (22,377)
     Repayments of long-term debt              (16,673)           (6,676)
     Proceeds from issuance of long-term
      debt                                      10,000                --
     Proceeds from the sale of treasury
      stock                                        276             2,302
     Net cash used in financing activities      (6,397)          (26,751)
     Effect of exchange rate changes on
      cash                                      (1,413)              (90)
     Decrease in cash and cash equivalents     (12,653)          (23,879)
     Cash and cash equivalents at the
      beginning of the period                  100,268           149,454
     Cash and cash equivalents at the end
      of the period                            $87,615          $125,575
 
 

SOURCE Mueller Industries, Inc.
    MEMPHIS, Tenn., April 17 /PRNewswire/ --Mueller Industries today issued
 the following:
 
     Quarterly Earnings
     Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE:   MLI), today
 announced the Company's results for the first quarter of 2001.  Earnings for
 the three months ended March 31, 2001 were 42 cents per diluted share compared
 with earnings per diluted share of 69 cents for the same period a year ago.
 Net income for the first quarter was $15.5 million, compared with $26.6
 million for the first quarter of fiscal 2000.  Net sales for the three months
 ended March 31, 2001 were $276.6 million, compared with net sales of $309.3
 million for the comparable 2000 period.
 
     Financial Highlights
     Regarding the first quarter financial results, Mr. Karp said, "Mueller's
 sales and earnings declined as the overall economy slowed.  However, the
 Company remained solidly profitable with excellent cash flow and with a strong
 balance sheet that continued to strengthen."
 
     * "Mueller ended the quarter with $87.6 million in cash and a modest 13.8
        percent debt-to-total capitalization ratio.
     * "Interest expense declined to $1.4 million compared with $2.6 million
        during the same period last year.  The reduction was primarily
        attributable to our restructured bank credit facility combined with
        lower funded balances."
 
     Operating Highlights
     With regard to operations, Mr. Karp noted the following:
 
     * "We shipped 175.8 million pounds of product, versus 194 million pounds
       in the first quarter of 2000.
     * "Capital expenditures of $9.5 million related primarily to our U.S. and
       European copper tube operations and Brass Rod Mill horizontal continuous
       caster.
     * "We also began a project to install an additional extrusion press for
       our U.S. copper tube operations.  By adding extrusion capacity, we will
       ensure reliable supply for our customers during periods of scheduled and
       unscheduled maintenance.  Industrial revenue bonds were issued to fund
       this investment of approximately $10 million.
     * "Our Standard Products Division posted operating earnings of $23.8
       million, compared with $36.1 million in the first quarter of 2000.
       Standard Products Division's net sales were $203.5 million for the
       quarter, compared with $225.7 million for the same period a year ago.
     * "Our Industrial Products Division posted operating earnings of $5.1
       million during the first quarter on sales of $69.0 million which
       compares with operating earnings of $8.3 million from sales of $76.4
       million during the first quarter of 2000.
     * "Our European copper tube business posted improvements over the prior
       quarter although we continue to incur losses.  Our European
       modernization project dedicated to significantly reducing conversion
       costs is on schedule for completion in late 2001."
 
     Business Outlook
     Discussing the business outlook, Mr. Karp said, "Despite signs that the
 economy is slowing, we are optimistic that business will improve in the second
 quarter.  Our optimism is fueled by several factors:  the wet winter weather,
 which we had been spared for several years, put a damper on construction
 activity but is now behind us; the inventory adjustments made by our customers
 are now largely complete; significant steps have been taken to reduce our
 costs; and, the construction industry has shown remarkable resiliency, due in
 part, to declining mortgage rates.  Our strategy of building basic shareholder
 value over the long term has succeeded over the past decade and we continue to
 believe it is the best strategy going forward."
     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, market demand, pricing, and
 competitive and technological factors, among others, as set forth in the
 Company's SEC filings.
     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
 plants are located throughout the United States and in Canada, France, and
 Great Britain.  The Company also owns a short line railroad in Utah.
 
                                MUELLER INDUSTRIES, INC.
                       CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                          (In thousands, except per share data)
 
                                                 For the Quarter Ended
                                              March 31,         March 25,
                                                 2001              2000
                                                      (Unaudited)
 
           Net sales                          $276,578          $309,336
 
           Cost of goods sold                  218,116           233,500
           Depreciation and amortization        10,527             9,042
           Selling, general, and
            administrative expense              22,556            24,290
 
           Operating income                     25,379            42,504
           Interest expense                     (1,424)           (2,627)
           Environmental reserves                 (761)               --
           Other income, net                     1,766             2,224
 
           Income before income taxes           24,960            42,101
           Income tax expense                   (9,491)          (15,535)
 
           Net income                         $ 15,469          $ 26,566
           Earnings per share:
               Basic:
                   Weighted average shares
                    outstanding                 33,368            34,844
                   Basic earnings per
                    share                     $   0.46          $   0.76
               Diluted:
                   Weighted average shares
                    outstanding plus assumed
                     conversions                37,134            38,753
                   Diluted earnings per
                    share                     $   0.42          $   0.69
 
 
 
                                 MUELLER INDUSTRIES, INC.
                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                      (In thousands)
 
 
 
                                               March 31,        December 30,
                                                  2001              2000
                                                       (Unaudited)
           ASSETS
           Cash and cash equivalents           $ 87,615          $100,268
           Accounts receivable, net             172,878           152,157
           Inventories                          129,874           142,325
           Other current assets                   9,259            10,421
               Total current assets             399,626           405,171
 
           Property, plant, and equipment, net  377,449           379,885
           Other assets                         130,279           125,220
                                               $907,354          $910,276
 
 
           LIABILITIES AND STOCKHOLDERS'
            EQUITY
           Current portion of long-term
            debt                               $  5,265          $  5,909
           Accounts payable                      38,760            43,733
           Other current liabilities             65,800            68,207
               Total current liabilities        109,825           117,849
           Long-term debt                        94,946           100,975
           Other noncurrent liabilities          78,720            77,050
                Total liabilities               283,491           295,874
           Minority interest in
            subsidiaries                            297               297
           Stockholders' equity                 623,566           614,105
                                               $907,354          $910,276
 
 
                             MUELLER INDUSTRIES, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)
 
                                                  For the Quarter Ended
                                               March 31,        March 25,
                                                 2001              2000
                                                       (Unaudited)
     Operating activities:
     Net income                                $15,469          $ 26,566
     Reconciliation of net income to net
      cash
        provided by operating activities:
           Depreciation and amortization        10,527             9,042
           Deferred income taxes                 1,707             1,814
           Minority interest in
            subsidiaries, net                       --               (57)
           Gain on disposal of properties           (6)              (48)
           Changes in assets and
            liabilities, net                   (17,404)          (27,712)
 
     Net cash provided by operating
      activities                                10,293             9,605
     Investing activities:
     Capital expenditures                       (9,500)           (6,723)
     Other, net                                 (5,636)               80
     Net cash used in investing activities     (15,136)           (6,643)
     Financing activities:
     Acquisition of treasury stock                  --           (22,377)
     Repayments of long-term debt              (16,673)           (6,676)
     Proceeds from issuance of long-term
      debt                                      10,000                --
     Proceeds from the sale of treasury
      stock                                        276             2,302
     Net cash used in financing activities      (6,397)          (26,751)
     Effect of exchange rate changes on
      cash                                      (1,413)              (90)
     Decrease in cash and cash equivalents     (12,653)          (23,879)
     Cash and cash equivalents at the
      beginning of the period                  100,268           149,454
     Cash and cash equivalents at the end
      of the period                            $87,615          $125,575
 
 SOURCE  Mueller Industries, Inc.