FOR IMMEDIATE RELEASE Contact: Kent A. McKee
July 19, 1995 (316) 636-6300
MUELLER INDUSTRIES, INC. ANNOUNCES
AN 85 PERCENT INCREASE IN SECOND QUARTER EARNINGS
Wichita, KS - Mueller Industries, Inc. (NYSE: MLI) today reported net
income for the quarter ended July 1, 1995 of $10.7 million or $1.12 per share,
on 9,550,000 weighted average shares outstanding. This compared with net
income for the second quarter of 1994 of $5.8 million, or 57 cents per share
on 10,176,000 weighted average shares outstanding. Net sales for the second
quarter of 1995 were $181.4 million compared with net sales of $136.6 million
for the same quarter of 1994.
For the first six months of 1995, net income was $20.7 million, or $2.18
per share, on net sales of $353.2 million. This compares with net income of
$10.0 million, or 97 cents per share, on net sales of $257.4 million for the
same period of 1994.
Harvey L. Karp, Chairman, stated, "The first half of 1995 has clearly
been the best six months in our company's history. It is noteworthy that our
earnings growth was achieved despite a softening in the housing market in the
first half of 1995. Today, the 30 year fixed mortgage rate is 7.4 percent,
which is approximately 180 basis points lower than it was at the end of 1994.
Historically, such low mortgage rates have stimulated home purchases as well
as new home construction." Mr. Karp added, "We continue to make excellent
progress on our major capital improvement programs which we expect to be
completed by the end of this year. Thus far, we have realized only modest
benefits from these capital programs, but in 1996, we expect to reap many more
benefits."
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, a placer gold
mining operation in Alaska, and other natural resource properties.
2
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
For the Quarter Ended For the Six-Months Ended
July 1, June 25, July 1, June 25,
1995 1994 1995 1994
Net sales $181,380 $136,576 $353,150 $257,388
Cost of goods sold 149,587 112,445 290,147 212,230
Depreciation and amortization 3,763 3,175 7,409 5,875
Selling,general, and
administrative expense 12,409 11,226 25,376 21,914
------- ------- ------- -------
Operating income 15,621 9,730 30,218 17,369
Interest expense (1,134) (1,618) (2,511) (3,312)
Environmental reserves - - - (412)
Unusual items - (1,141) - (1,406)
Other income, net 1,102 2,164 2,575 3,543
------- ------- ------- -------
Income before taxes 15,589 9,135 30,282 15,782
Income tax expense (4,926) (3,357) (9,569) (5,822)
------- ------- ------- -------
Net income $ 10,663 $ 5,778 $ 20,713 $ 9,960
======= ======= ======= =======
Net income per share:
Primary:
Average shares outstanding 9,550 10,176 9,506 10,302
======= ======= ======= =======
Net income $ 1.12 $ 0.57 $ 2.18 $ 0.97
======= ======= ======= =======
Fully diluted:
Average shares outstanding 9,600 10,176 9,614 10,302
======= ======= ======= =======
Net income $ 1.11 $ 0.57 $ 2.15 $ 0.97
======= ======= ======= =======
3
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
July 1, 1995 December 31, 1994
ASSETS
Cash and cash equivalents $ 19,521 $ 34,492
Accounts receivable, net 99,308 66,925
Inventories 73,344 74,368
Other current assets 9,927 7,766
------- -------
Total current assets 202,100 183,551
Property, plant and equipment, net 212,963 196,772
Other assets 38,970 50,432
------- -------
$ 454,033 $ 430,755
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 18,079 $ 18,611
Accounts payable 29,329 21,607
Other current liabilities 31,835 27,003
------- -------
Total current liabilities 79,243 67,221
Long-term debt 69,151 76,125
Other noncurrent liabilities 44,715 45,461
------- -------
Total liabilities 193,109 188,807
Stockholders' equity 260,924 241,948
------- -------
$ 454,033 $ 430,755
======= =======
Book value per share $ 30.18 $ 27.81
======= =======