Exhibit 99.1
MUELLER INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS
MEMPHIS, Tenn., April 21 /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 2005. Net income for
the first quarter was $15.2 million, or 41 cents per diluted share, which
compares with $18.0 million, or 49 cents per diluted share, for the first
quarter of fiscal 2004. Net sales for the three months ended April 2, 2005 were
$401.7 million, compared with net sales of $346.0 million for the first quarter
of 2004. The current period includes approximately $5.0 million pre-tax of
additional interest expense (approximately 9 cents per diluted share) related
primarily to the Subordinated Debentures issued in the fourth quarter of 2004.
Financial and Operating Highlights
Regarding the first quarter financial results, Mr. Karp said, "Mueller's
financial position remains sound.
* "Operating income increased to $27.2 million, despite lower profitability
at two of our core product lines, copper tube and brass rod.
* "Pounds of product shipped by our core product lines totaled 189.4
million in the first quarter of 2005 compared with 197.6 million for
2004. The COMEX average copper price in the first quarter of 2005 was
$1.47 per pound compared with $1.23 per pound for the first quarter of
2004.
* "Our Standard Products Division posted operating earnings of $24.6
million, compared with $25.0 million in 2004. Standard Products
Division's net sales were $293.9 million for the quarter, compared with
$249.7 million for 2004. We realized improved results in our copper and
plastic fittings businesses as well as contributions from acquired
businesses, that were offset somewhat by decreases in copper tube
profitability due to lower volumes and spreads.
* "Operating income at Industrial Products Division was $6.5 million
compared with $3.4 million (after a $3.9 million impairment charge
related to Overstreet-Hughes) for the first quarter of 2004. Net sales
were $111.3 million in the first quarter of 2005 which compares with
$99.8 million for 2004. Results at our brass rod mill decreased on lower
volumes and spreads.
* "Mueller ended the quarter with almost $70 million in cash.
* "Our current ratio remains excellent at 2.4 to 1 and our working capital
is $290.9 million.
* "Capital expenditures totaled $4.8 million during the first quarter of
2005. For the fiscal year 2005, we expect capital expenditures to be in
the range of $20 to $25 million.
* "Stockholders' equity has grown to $365.2 million."
Business Outlook
Discussing the outlook, Mr. Karp said, "We are carefully assessing business
conditions with a view toward reacting promptly as need arises. Recently,
interest rates have risen; nonetheless, 30-year fixed rate mortgages are still
very attractive and housing starts and permits are at a historically high level
of 2 million units (seasonally adjusted annual rate). Importantly, commercial
construction is rising and GDP and employment remain relatively strong."
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, competitive and technological factors, and
the availability of financing, 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
---------------------------
April 2, March 27,
2005 2004
------------ ------------
(Unaudited)
Net sales $ 401,663 $ 345,959
Cost of goods sold 334,024 281,029
Depreciation and amortization 10,078 9,965
Selling, general, and administrative
expense 30,355 26,682
Impairment charge - 3,941
Operating income 27,206 24,342
Interest expense (5,184) (224)
Other income, net 794 2,624
Income before income taxes 22,816 26,742
Income tax expense (7,608) (8,782)
Net income $ 15,208 $ 17,960
Earnings per share:
Basic earnings per share:
Weighted average shares outstanding 36,505 34,658
Basic earnings per share $ 0.42 $ 0.52
Diluted earnings per share:
Weighted average shares outstanding
plus assumed conversions 37,151 36,908
Diluted earnings per share $ 0.41 $ 0.49
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 2, December 25,
2005 2004
------------ ------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 69,720 $ 47,449
Accounts receivable, net 219,838 201,396
Inventories 193,577 187,853
Other current assets 18,977 18,633
Total current assets 502,112 455,331
Property, plant, and equipment, net 329,043 335,610
Other assets 174,948 172,790
$ 1,006,103 $ 963,731
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 2,346 $ 5,328
Accounts payable 115,872 79,723
Other current liabilities 92,973 95,767
Total current liabilities 211,191 180,818
Long-term debt 310,595 310,650
Pension and postretirement liabilities 33,114 33,167
Environmental reserves 9,435 9,503
Deferred income taxes 66,367 67,479
Other noncurrent liabilities 10,141 10,361
Total liabilities 640,843 611,978
Minority interest in subsidiaries 67 67
Stockholders' equity 365,193 351,686
$ 1,006,103 $ 963,731
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Quarter Ended
---------------------------
April 2, March 27,
2005 2004
------------ ------------
(Unaudited)
Operating activities:
Net income $ 15,208 $ 17,960
Reconciliation of net income to net
cash provided by (used in)
operating activities:
Depreciation and amortization 10,118 9,965
Income tax benefit from exercise
of stock options 529 9,685
Impairment charge - 3,941
Equity in (earnings) loss of
unconsolidated subsidiaries (266) 3,272
Deferred income taxes (828) 108
Loss (gain) on disposal of
properties 94 (5,142)
Changes in assets and
liabilities:
Receivables (19,189) (70,032)
Inventories (6,393) (9,714)
Current liabilities 33,973 8,248
Other, net (3,059) (4,669)
Net cash provided by (used in)
operating activities 30,187 (36,378)
Investing activities:
Capital expenditures (4,814) (5,063)
Proceeds from sales of properties 25 5,173
Net cash (used in) provided by
investing activities (4,789) 110
Financing activities:
Dividends paid (3,659) (3,493)
Acquisition of treasury stock (168) (9,320)
Proceeds from the sale of treasury stock 3,778 3,259
Repayments of long-term debt (2,972) (926)
Net cash used in financing activities (3,021) (10,480)
Effect of exchange rate changes on cash (106) (8)
Increase (decrease) in cash and
cash equivalents 22,271 (46,756)
Cash and cash equivalents at the
beginning of the period 47,449 255,088
Cash and cash equivalents
at the end of the period $ 69,720 $ 208,332
SOURCE Mueller Industries, Inc.
-0- 04/21/2005
/CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/