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FOR IMMEDIATE RELEASE Contact: Kent A. McKee
October 14, 1994 (316) 636-6300
MUELLER INDUSTRIES, INC. ANNOUNCES IMPROVED THIRD QUARTER EARNINGS
Wichita, KS - Mueller Industries, Inc. (NYSE: MLI) today reported net income
for the quarter ended September 24, 1994 of $8.5 million or 90 cents per
share, on 9,499,000 weighted average shares outstanding. This compared with
net income for the third quarter of 1993 of $5.6 million, or 54 cents per
share on 10,473,000 weighted average shares outstanding. Net sales for the
third quarter of 1994 were $138.0 million compared with net sales of $122.1
million for the same quarter of 1993.
During the third quarter, the Company adopted the last-in, first-out (LIFO)
method of accounting for the copper component of its inventories. This change
in accounting principle is retroactive to the beginning of fiscal 1994, which
required the restatement of the first and second quarter results. The LIFO
method should mitigate the income statement effect of copper price
fluctuations by more closely matching current costs with current selling
prices.
For the first nine months of 1994, net income was $18.5 million, or $1.84 per
share, on net sales of $395.4 million, which compares with net income of $15.2
million, or $1.45 per share on net sales of $380.5 million for the same period
of 1993. The results for the first nine months of 1994 include the first and
second quarter effect of restating income for adoption of the LIFO method.
Also, earnings were favorably effected by the sale of selected natural
resource assets and lower state and federal income tax provisions.
Harvey L. Karp, Chairman, stated, "We believe business will remain strong for
the balance of 1994. Demand for housing continues to be vigorous and that is
good for our business."
Mueller Industries, Inc. is a leading and diversified fabricator whose
products include copper tube and fittings; brass and copper alloy rods, bars
and shapes; brass and bronze forgings; aluminum and copper impact extrusions;
plastic fittings and valves; and refrigeration valves, driers and flare
fittings. The Company also owns a short line railroad in Utah and natural
resource properties in the Western United States, Alaska and Canada.
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
For the Quarter Ended For the Nine-Months Ended
Sep. 24, Sep. 25, Sep. 24, Sep. 25,
1994 1993 1994 1993
Net sales $137,975 $122,106 $395,363 $380,464
Costs and expenses 126,977 112,602 366,996 353,132
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Operating income 10,998 9,504 28,367 27,332
Non operating income (expense), net 1,035 (494) (552) (2,628)
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Income before taxes 12,033 9,010 27,815 24,704
Income tax expense 3,515 3,375 9,337 9,544
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Net income $ 8,518 $ 5,635 $ 18,478 $ 15,160
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Earnings per common and
common equivalent share:
Primary $ .90 $ .54 $ 1.84 $ 1.45
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Fully diluted $ .90 $ .54 $ 1.84 $ 1.44
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
Sep. 24, 1994 Dec. 25, 1993
ASSETS
Cash and cash equivalents $ 39,832 $ 77,336
Accounts receivable, net 69,303 59,197
Inventories 64,656 53,118
Other current assets 4,713 4,760
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Total current assets 178,504 194,411
Property, plant and equipment, net 173,869 154,403
Other assets 76,011 20,929
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$ 428,384 $ 369,743
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 17,817 $ 8,391
Accounts payable 22,025 15,637
Other current liabilities 31,739 26,878
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Total current liabilities 71,581 50,906
Long-term debt 83,657 54,320
Other noncurrent liabilities 39,873 42,403
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Total liabilities 195,111 147,629
Stockholders' equity 233,273 222,114
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$ 428,384 $ 369,743
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Book value per share $ 26.82 $ 23.18
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