Exhibit 99.1
MUELLER INDUSTRIES, INC. REPORTS SECOND QUARTER RESULTs
MEMPHIS, Tenn., July 21 /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 of 2005. Net income for
the second quarter was $17.2 million, or 46 cents per diluted share, which
compares with $27.0 million, or 73 cents per diluted share, for the second
quarter of fiscal 2004. Net sales for the three months ended July 2, 2005 were
$410.5 million, compared with net sales of $380.8 million for the second quarter
of 2004. The current period includes approximately $4.8 million pre-tax of
interest expense (approximately 9 cents per diluted share) related primarily to
the Subordinated Debentures issued in the fourth quarter of 2004.
Year-to-date, the Company earned $32.4 million, or 87 cents per diluted
share, on net sales of $812.2 million. This compares with net income of $45.0
million, or $1.22 per diluted share, on net sales of $726.8 million for the
first half of 2004.
Financial and Operating Highlights
Regarding the second quarter financial results, Mr. Karp said, "Mueller's
financial position remains sound.
- "Operating income decreased to $25.3 million, as the precipitous increase
in copper prices led to reduced margins in our copper tube and brass rod
product lines. Trading as high as $1.69 per pound in June, the COMEX
copper price for the second quarter of 2005 averaged $1.53 per pound
compared with $1.23 per pound for the second quarter of 2004.
- "Pounds of product shipped by our core product lines totaled 182.2
million in the second quarter of 2005 compared with 198.5 million for
2004.
- "Our Standard Products Division posted quarterly operating earnings of
$23.2 million, compared with $37.2 million in 2004. Standard Products
Division's net sales were $302.4 million for the quarter, compared with
$278.9 million for 2004. We realized solid results from our copper and
plastic fittings businesses. However, operating profit declined on lower
volume and margins in our copper tube business. The volatility of copper
caused some of our customers to scale back their purchases.
- "Operating income at Industrial Products Division was $7.3 million
compared with $6.3 million for the second quarter of 2004. Net sales were
$110.9 million in the second quarter of 2005 which compares with $105.9
million for 2004. Results at our brass rod mill decreased on lower
volumes, while other product lines reported improved results.
- "Mueller ended the quarter with $69 million in cash; the higher balances
of accounts receivable and inventories caused by rising copper prices
were readily funded with cash on-hand.
- "Our current ratio remains excellent at 2.5 to 1 and our working capital
is $307.8 million.
- "Capital expenditures totaled $8.9 million during the first half 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 $375.4 million."
Business Outlook
Discussing the outlook, Mr. Karp said, "The housing industry continues to
show strength. Housing starts are approximately 4 to 5 percent ahead of last
year. Non-residential construction is also growing, yet remains well below its
peak level in 2000. Interest and mortgage rates are at very attractive levels
and the general economy is growing at a robust rate. And more specifically, we
have noted recent improvement in margins in our copper tube business, which is
our largest business unit by far."
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 For the Six Months
Ended Ended
------------------------- -------------------------
July 2, June 26, July 2, June 26,
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net sales $ 410,506 $ 380,822 $ 812,169 $ 726,781
Cost of goods sold 345,663 303,720 679,687 584,749
Depreciation and
amortization 10,411 10,159 20,489 20,124
Selling, general, and
administrative expense 29,136 28,199 59,491 54,881
Impairment charge - - - 3,941
Operating income 25,296 38,744 52,502 63,086
Interest expense (4,752) (199) (9,936) (423)
Other income, net 3,973 1,180 4,767 3,804
Income before income taxes 24,517 39,725 47,333 66,467
Income tax expense (7,334) (12,677) (14,942) (21,459)
Net income $ 17,183 $ 27,048 $ 32,391 $ 45,008
Weighted average shares
for basic earnings
per share 36,599 34,978 36,552 34,818
Effect of dilutive stock
options 466 1,914 556 2,082
Adjusted weighted average
shares for diluted
earnings per share 37,065 36,892 37,108 36,900
Basic earnings per share $ 0.47 $ 0.77 $ 0.89 $ 1.29
Diluted earnings per share $ 0.46 $ 0.73 $ 0.87 $ 1.22
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 2, December 25,
2005 2004
------------ ------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 69,140 $ 47,449
Accounts receivable, net 229,431 201,396
Inventories 189,637 187,853
Other current assets 18,830 18,633
Total current assets 507,038 455,331
Property, plant, and equipment, net 319,375 335,610
Other assets 175,769 172,790
$ 1,002,182 $ 963,731
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 4,589 $ 5,328
Accounts payable 99,179 79,723
Other current liabilities 95,459 95,767
Total current liabilities 199,227 180,818
Long-term debt 310,603 310,650
Pension and postretirement liabilities 32,285 33,167
Environmental reserves 9,221 9,503
Deferred income taxes 65,364 67,479
Other noncurrent liabilities 10,022 10,361
Total liabilities 626,722 611,978
Minority interest in subsidiaries 74 67
Stockholders' equity 375,386 351,686
$ 1,002,182 $ 963,731
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Six Months Ended
---------------------------
July 2, June 26,
2005 2004
------------ ------------
(Unaudited)
Operating activities:
Net income $ 32,391 $ 45,008
Reconciliation of net income to net
cash provided by operating activities:
Depreciation and amortization 20,568 20,124
Income tax benefit from exercise
of stock options 529 9,685
Impairment charge - 3,941
Equity in (income) loss of
unconsolidated subsidiaries (3,471) 2,740
Loss (gain) on disposal of properties 457 (5,143)
Deferred income taxes (1,039) (1,384)
Minority interest in
subsidiaries, net of dividend paid 7 (184)
Changes in assets and liabilities:
Receivables (30,347) (59,453)
Inventories (3,823) (30,774)
Current liabilities 20,058 41,983
Other, net (840) 307
Net cash provided by operating activities 34,490 26,850
Investing activities:
Capital expenditures (8,876) (8,807)
Proceeds from sales of properties 559 5,481
Net cash used in investing activities (8,317) (3,326)
Financing activities:
Dividends paid (7,320) (6,991)
Acquisition of treasury stock (168) (9,320)
Proceeds from the sale of treasury stock 3,911 3,326
Repayments of long-term debt (396) (1,853)
Net cash used in financing activities (3,973) (14,838)
Effect of exchange rate changes on cash (509) (87)
Increase in cash and cash equivalents 21,691 8,599
Cash and cash equivalents at the
beginning of the period 47,449 255,088
Cash and cash equivalents at the
end of the period $ 69,140 $ 263,687
SOURCE Mueller Industries, Inc.
-0- 07/21/2005
/CONTACT: Kent A. McKee, of Mueller Industries, Inc., +1-901-753-3208/