Exhibit 99.1
Mueller Industries, Inc. Reports First Quarter Results
MEMPHIS, Tenn., April 13 /PRNewswire-FirstCall/ --
Quarterly Earnings
Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), today
announced the Company's results for the first quarter of 2004. Earnings for the
three months ended March 27, 2004 were 49 cents per diluted share compared with
earnings per diluted share of 11 cents for the same period a year ago. Net
income for the first quarter was $18.0 million, compared with $3.9 million for
the first quarter of fiscal 2003. Net sales for the three months ended March 27,
2004 were $346.0 million, compared with net sales of $232.0 million for the
comparable 2003 period.
Financial and Operating Highlights
Regarding the first quarter financial results, Mr. Karp said, "Mueller's
financial position remains formidable."
- "Operating income more than tripled to $24.3 million, despite a $3.9
million impairment charge related to the write-down of the Overstreet-
Hughes operation.
- "Pounds of product shipped increased 19 percent to 198 million in the
first quarter of 2004 compared with 167 million for 2003.
- "Our Standard Products Division posted operating earnings of $25.0
million, compared with $7.1 million in 2003. Standard Products Division's
net sales were $249.7 million for the quarter, compared with $159.4
million for 2003. Operating results increased on the strength of higher
volume and margins.
- "Our Industrial Products Division posted operating earnings of $3.4
million (after a $3.9 million impairment charge related to Overstreet-
Hughes) during the quarter on net sales of $99.8 million, which compares
with operating earnings of $4.1 million on net sales of $74.9 for 2003.
- "As sales increased, and raw material prices escalated, we redeployed
more of our cash to inventory and accounts receivable.
- "Mueller ended the quarter with $208.3 million in cash and virtually no
debt.
- "Our current ratio remains excellent at 5 to 1 and our working capital is
$490.1 million.
- "Capital expenditures totaled $5.1 million during the first quarter of
2004. For the fiscal year 2004, we expect capital expenditures to be in
the range of $20 to $25 million.
- "Stockholders' equity has grown to $834.8 million, or $23.87 per share."
Business Outlook
Discussing the outlook, Mr. Karp said, "The business outlook for the rest of
the year is promising. The national economy is expanding, the housing industry
appears headed for another stellar year, capital spending is gaining momentum
and both interest rates and inflation are low."
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, 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
operations are located throughout the United States and in Canada, Mexico, and
Great Britain.
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
For the Quarter Ended
March 27, March 29,
2004 2003
(Unaudited)
Net sales $345,959 $232,022
Cost of goods sold 281,029 191,915
Depreciation and amortization 9,965 9,740
Selling, general, and administrative expense 26,682 23,296
Impairment charge 3,941 -
Operating income 24,342 7,071
Interest expense (224) (311)
Environmental expense (169) (207)
Other income, net 2,793 557
Income from continuing operations before
income taxes 26,742 7,110
Income tax expense (8,782) (2,650)
Income from continuing operations 17,960 4,460
Loss from operation of discontinued operations,
net of tax - (539)
Net income $17,960 $3,921
Earnings (loss) per share:
Basic earnings (loss) per share:
Weighted average shares outstanding 34,658 34,257
From continuing operations $0.52 $0.13
From discontinued operations - (0.02)
Basic earnings per share $0.52 $0.11
Diluted earnings (loss) per share:
Weighted average shares outstanding plus
assumed conversions 36,908 36,771
From continuing operations $0.49 $0.12
From discontinued operations - (0.01)
Diluted earnings per share $0.49 $0.11
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 27, December 27,
2004 2003
(Unaudited)
ASSETS
Cash and cash equivalents $208,332 $255,088
Accounts receivable, net 233,641 163,006
Inventories 150,581 140,548
Other current assets 18,659 11,713
Total current assets 611,213 570,355
Property, plant, and equipment, net 340,188 345,537
Other assets 134,191 139,292
$1,085,592 $1,055,184
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $1,960 $2,835
Accounts payable 55,519 42,081
Other current liabilities 63,626 68,590
Total current liabilities 121,105 113,506
Long-term debt 11,386 11,437
Pension and postretirement liabilities 32,356 31,643
Environmental reserves 9,402 9,560
Deferred income taxes 65,149 63,734
Other noncurrent liabilities 11,221 10,238
Total liabilities 250,619 240,118
Minority interest in subsidiaries 208 208
Stockholders' equity 834,765 814,858
$1,085,592 $1,055,184
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Quarter Ended
March 27, March 29,
2004 2003
(Unaudited)
Operating activities:
Net income from continuing operations $17,960 $4,460
Reconciliation of net income from continuing
operations to net cash used in operating
activities:
Depreciation and amortization 9,965 9,740
Income tax benefit from exercise of stock
options 9,685 -
Impairment charge 3,941 -
Equity in loss of unconsolidated subsidiaries 3,272 278
Deferred income taxes 108 783
(Gain) loss on disposal of properties (5,142) 212
Minority interest in subsidiaries - 38
Changes in assets and liabilities:
Receivables (70,032) (13,518)
Inventories (9,714) (2,904)
Other, net 3,579 (5,133)
Net cash used in operating activities (36,378) (6,044)
Investing activities:
Capital expenditures (5,063) (6,599)
Proceeds from sales of properties 5,173 27
Purchase of Conbraco Industries, Inc. common stock - (10,806)
Escrowed IRB proceeds - 449
Net cash provided by (used in) investing activities 110 (16,929)
Financing activities:
Dividends paid (3,493) -
Acquisition of treasury stock (9,320) -
Proceeds from the sale of treasury stock 3,259 -
Repayments of long-term debt (926) (1,122)
Net cash used in financing activities (10,480) (1,122)
Effect of exchange rate changes on cash (8) 1,157
Decrease in cash and cash equivalents (46,756) (22,938)
Cash provided by discontinued operations - 252
Cash and cash equivalents at the beginning of
the period 255,088 217,601
Cash and cash equivalents at the end of the
period $208,332 $194,915
SOURCE Mueller Industries, Inc.
-0- 04/13/2004
/CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/
(MLI)
CO: Mueller Industries, Inc.
ST: Tennessee
IN: MNG
SU: ERN