Exhibit 99.1
Mueller Industries, Inc. Reports Second Quarter Earnings@<
MEMPHIS, Tenn., July 13 /PRNewswire-FirstCall/ --
Quarterly and Year-to-Date Earnings
Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), today
announced the Company's results for the second quarter and first-half period
ended June 26, 2004. For the second quarter of 2004, earnings per diluted share
were 73 cents compared with 24 cents in the second quarter of 2003. Net income
was $27.0 million for the second quarter of 2004 compared with $9.0 million for
the second quarter of fiscal 2003. Net sales for the three months ended June 26,
2004, were $380.8 million compared with net sales of $248.2 million for the same
quarter of last year.
Net sales in the first half of 2004 were $726.8 million compared with net
sales of $480.2 million in the 2003 period. Year-to-date, net income was $45.0
million, or $1.22 per diluted share, compared with $12.9 million, or 35 cents
per diluted share, for the same period last year.
Financial Highlights
Regarding the results, Mr. Karp said, "Mueller's second quarter of 2004
clearly demonstrated our Company's ability to leverage the benefits of favorable
market conditions."
* "Operating income increased to $38.7 million for the second quarter of
2004 which compares with $11.5 million in the second quarter of 2003.
* "Pounds of product shipped increased 13 percent to 198.5 million in the
second quarter of 2004 compared with 175.5 million for 2003.
* "Gross profit increased more than 70 percent to $77.1 million in the
second quarter of 2004 compared with $44.8 million in the second quarter
of 2003.
* "Our Standard Products Division posted operating earnings of $37.2
million in the second quarter, compared with $11.9 million in the second
quarter of 2003. Standard Products Division's net sales were $278.9
million for second quarter, compared with $178.9 million for 2003.
Operating results increased on the strength of higher volume and margins,
particularly copper tube where spreads returned to year 2000 levels.
* "Results at our European operations continue to improve on better volume
and spreads.
* "Our Industrial Products Division posted operating earnings of $6.3
million during the quarter on net sales of $105.9 million, which compares
with operating income of $3.6 million and net sales of $71.6 million for
the same period a year ago. The earnings of our brass rod business
increased markedly as margins, volume, and costs improved.
* "Mueller ended the quarter with $263.7 million in cash and virtually no
debt.
* "Our current ratio remains excellent at 4.4 to 1 and our working capital
is $519.9 million.
* "Capital expenditures totaled $8.8 million during the first half 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 $858.8 million, or $24.55 per share."
Business Outlook
Discussing the business outlook, Mr. Karp said, "The business outlook
remains good. Housing starts for 2004 will likely exceed the robust level of
1,853,000 starts achieved in 2003. Moreover commercial construction, an
important market for our products, is improving along with our national economy.
Interest rates have recently ticked up, but by historical standards are quite
low. And the National Association of Home Builders has forecasted that 2005 will
be another outstanding year for the housing industry."
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.
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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
For the Quarter Ended For the Six Months Ended
June 26, June 28, June 26, June 28,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Net sales $380,822 $248,221 $726,781 $480,243
Cost of goods sold 303,720 203,461 584,749 395,376
Depreciation and
amortization 10,159 9,722 20,124 19,462
Selling, general, and
administrative expense 28,199 23,575 54,881 46,871
Impairment charge - - 3,941 -
Operating income 38,744 11,463 63,086 18,534
Interest expense (199) (292) (423) (603)
Environmental expense (269) (257) (438) (464)
Other income, net 1,449 2,182 4,242 2,739
Income from continuing
operations before
income taxes 39,725 13,096 66,467 20,206
Income tax expense (12,677) (4,117) (21,459) (6,767)
Income from continuing
operations 27,048 8,979 45,008 13,439
Loss from operation of
discontinued operations,
net of tax - - - (539)
Net income $27,048 $8,979 $45,008 $12,900
Earnings (loss) per share:
Basic earnings (loss) per share:
Weighted average
shares outstanding 34,978 34,263 34,818 34,260
From continuing
operations $0.77 $0.26 $1.29 $0.40
From discontinued
operations - - - (0.02)
Basic earnings per
share $0.77 $0.26 $1.29 $0.38
Diluted earnings (loss) per share:
Weighted average
shares outstanding
plus assumed
conversions 36,892 36,803 36,900 36,787
From continuing
operations $0.73 $0.24 $1.22 $0.36
From discontinued
operations - - - (0.01)
Diluted earnings
per share $0.73 $0.24 $1.22 $0.35
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 26, December 27,
2004 2003
(Unaudited)
ASSETS
Cash and cash equivalents $263,687 $255,088
Accounts receivable, net 223,111 163,006
Inventories 171,685 140,548
Other current assets 15,293 11,713
Total current assets 673,776 570,355
Property, plant, and equipment, net 334,093 345,537
Other assets 134,633 139,292
$1,142,502 $1,055,184
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $1,085 $2,835
Accounts payable 63,856 42,081
Other current liabilities 88,976 68,590
Total current liabilities 153,917 113,506
Long-term debt 11,334 11,437
Pension and postretirement
liabilities 32,508 31,643
Environmental reserves 9,822 9,560
Deferred income taxes 65,894 63,734
Other noncurrent liabilities 10,211 10,238
Total liabilities 283,686 240,118
Minority interest in
subsidiaries 24 208
Stockholders' equity 858,792 814,858
$1,142,502 $1,055,184
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Six Months Ended
June 26, June 28,
2004 2003
(Unaudited)
Operating activities:
Net income from continuing operations $45,008 $13,439
Reconciliation of net income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 20,124 19,462
Income tax benefit from exercise
of stock options 9,685 -
Impairment charge 3,941 -
Equity in loss of unconsolidated
subsidiaries 2,740 404
(Gain) loss on disposal of
properties (5,143) 193
Deferred income taxes (1,384) 4,030
Minority interest in
subsidiaries, net of dividend paid (184) (173)
Changes in assets and
liabilities:
Receivables (59,453) (30,341)
Inventories (30,774) 3,073
Current liabilities 41,983 3,293
Other, net 307 757
Net cash provided by operating
activities 26,850 14,137
Investing activities:
Capital expenditures (8,807) (15,982)
Proceeds from sales of properties 5,481 210
Purchase of Conbraco Industries, Inc.
common stock - (10,806)
Other, net - 449
Net cash used in investing activities (3,326) (26,129)
Financing activities:
Dividends paid (6,991) -
Acquisition of treasury stock (9,320) -
Proceeds from the sale of treasury
stock 3,326 244
Repayments of long-term debt (1,853) (2,045)
Net cash used in financing activities (14,838) (1,801)
Effect of exchange rate changes on cash (87) 3,294
Increase (decrease) in cash and cash
equivalents 8,599 (10,499)
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 $263,687 $207,354
SOURCE Mueller Industries, Inc.
-0- 07/13/2004
/CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/
(MLI)
CO: Mueller Industries, Inc.
ST: Tennessee
IN: MNG CST
SU: ERN ERP