Exhibit 99.1
MUELLER INDUSTRIES, INC. REPORTS THIRD QUARTER RESULTS
MEMPHIS, Tenn., Oct. 20 /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 third quarter of 2005. Net income from
continuing operations for the third quarter was $21.0 million, or 57 cents per
diluted share, which compares with $18.8 million, or 51 cents per diluted share,
for the third quarter of fiscal 2004. Net sales for the three months ended
October 1, 2005 were $434.1 million, compared with net sales of $322.5 million
for the third quarter of 2004. The current period includes approximately $4.8
million of interest expense (approximately 9 cents per diluted share net of tax)
related primarily to the Subordinated Debentures issued in the fourth quarter of
2004.
Year-to-date, the Company earned $53.4 million from continuing operations,
or $1.44 per diluted share, on net sales of $1.25 billion. This compares with
income from continuing operations of $63.8 million, or $1.73 per diluted share,
on net sales of $1.05 billion for the first nine months of 2004.
Financial and Operating Highlights
Regarding the third quarter financial results, Mr. Karp said, "Mueller's
financial position remains sound.
- "Operating income increased to $30.2 million, reflecting increased
volumes. Pounds of product shipped by our core product lines totaled 187
million in the third quarter of 2005 compared with 171 million for 2004.
- "The COMEX copper price for the third quarter of 2005 averaged $1.70 per
pound compared with $1.29 per pound for the third quarter of 2004 which
contributed to the increase in sales.
- "Our Standard Products Division posted quarterly operating income of
$31.0 million, compared with $22.2 million in 2004. Standard Products
Division's net sales were $322.5 million for the quarter, compared with
$233.7 million for 2004. We continued to realize solid results from our
copper and plastic fittings businesses. SPD's earnings were benefited by
businesses acquired during the latter half of 2004.
- "Operating income at Industrial Products Division was $5.7 million
compared with $6.0 million for the third quarter of 2004. Net sales were
$114.3 million in the third quarter of 2005 which compares with $92.6
million for 2004. Results at our brass rod mill decreased on lower
spreads, partially offset by improved results in other product lines.
- "We invested $12.8 million during the quarter to acquire KX Group Limited
(doing business as Brassware Sales). Brassware Sales is an import
distributor of plumbing and residential heating products with annual
sales of approximately $48 million to plumbers' merchants and builders'
merchants throughout the U.K. This acquisition will strengthen the
Company's presence in the U.K. market.
- "During the third quarter we settled a business interruption claim
related to operations sold in 2002. This $3.3 million after-tax gain is
classified as discontinued operations. We also recognized a $4.0 million
pre-tax gain, classified as other income, on the sale of land and
building in Cerritos, California.
- "Mueller ended the quarter with $108.0 million in cash. The impact of
rising copper prices on accounts receivable and inventories was readily
funded with cash-on-hand.
- "Our current ratio remains excellent at 2.4 to 1 and our working capital
is $326.5 million.
- "Capital expenditures totaled $13.4 million during the first nine months
of 2005.
- "Stockholders' equity has grown to $396.8 million."
Business Outlook
Discussing the outlook, Mr. Karp said, "Over the next twelve months we
believe the housing industry will be adjusting to higher prices, higher mortgage
rates, and more restrictive lending standards. This may result in a modest
decline in housing starts, but overall, starts for 2006 will likely remain at
the high end of historical levels. At the same time, non-housing construction
activity is trending upward and this is an important sector for Mueller's
business.
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 and energy, 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 Nine Months
Ended Ended
--------------------------- ---------------------------
Oct. 1, Sept. 25, Oct. 1, Sept. 25,
2005 2004 2005 2004
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
Net sales $ 434,130 $ 322,512 $ 1,246,299 $ 1,049,293
Cost of goods sold 360,514 263,188 1,040,201 847,937
Gross profit 73,616 59,324 206,098 201,356
Depreciation and amortization 10,082 10,278 30,571 30,402
Selling, general, and
administrative expense 33,297 24,529 92,788 79,410
Impairment charge - - - 3,941
Operating income 30,237 24,517 82,739 87,603
Interest expense (4,794) (236) (14,730) (659)
Other income, net 5,421 1,357 10,188 5,161
Income from continuing
operations before income taxes 30,864 25,638 78,197 92,105
Income tax expense (9,848) (6,884) (24,790) (28,343)
Income from continuing
operations 21,016 18,754 53,407 63,762
Gain from discontinued
operations, net of
income taxes 3,324 - 3,324 -
Net income $ 24,340 $ 18,754 $ 56,731 $ 63,762
Earnings per share:
Basic earnings per share:
Weighted average shares
outstanding 36,625 35,283 36,576 34,973
From continuing
operations $ 0.57 $ 0.53 $ 1.46 $ 1.82
From discontinued
operations 0.09 - 0.09 -
Basic earnings per
share $ 0.66 $ 0.53 $ 1.55 $ 1.82
Diluted earnings per
share:
Weighted average shares
outstanding plus assumed
conversions 37,120 36,914 37,112 36,905
From continuing
operations $ 0.57 $ 0.51 $ 1.44 $ 1.73
From discontinued
operations 0.09 - 0.09 -
Diluted earnings per
share $ 0.66 $ 0.51 $ 1.53 $ 1.73
Summary Segment Data:
Net sales:
Standard Products Division $ 322,507 $ 233,651 $ 918,839 $ 762,210
Industrial Products Division 114,325 92,565 336,608 298,246
Elimination of intersegment
sales (2,702) (3,704) (9,148) (11,163)
Net sales $ 434,130 $ 322,512 $ 1,246,299 $ 1,049,293
Operating income:
Standard Products Division $ 30,955 $ 22,202 $ 78,732 $ 84,376
Industrial Products Division 5,700 6,012 19,540 15,699
Unallocated expenses (6,418) (3,697) (15,533) (12,472)
Operating income $ 30,237 $ 24,517 $ 82,739 $ 87,603
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 1, December 25,
2005 2004
------------ ------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 108,012 $ 47,449
Accounts receivable, net 251,406 201,396
Inventories 183,205 187,853
Other current assets 19,985 18,633
Total current assets 562,608 455,331
Property, plant, and equipment,
net 309,962 335,610
Other assets 188,916 172,790
$ 1,061,486 $ 963,731
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current portion of long-term
debt $ 887 $ 5,328
Accounts payable 117,282 79,723
Other current liabilities 117,922 95,767
Total current liabilities 236,091 180,818
Long-term debt 312,940 310,650
Pension and postretirement
liabilities 32,272 33,167
Environmental reserves 9,183 9,503
Deferred income taxes 64,033 67,479
Other noncurrent liabilities 10,122 10,361
Total liabilities 664,641 611,978
Minority interest in
subsidiaries 74 67
Stockholders' equity 396,771 351,686
$ 1,061,486 $ 963,731
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine Months Ended
------------------------------
October 1, September 25,
2005 2004
------------- -------------
(Unaudited)
Operating activities:
Net income from continuing operations $ 53,407 $ 63,762
Reconciliation of net income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 30,691 30,402
Income tax benefit from exercise
of stock options 529 29,252
Impairment charge - 3,941
Equity in (income) loss of
unconsolidated subsidiaries (4,005) 2,376
Gain on disposal of properties (3,713) (5,156)
Deferred income taxes (1,813) (395)
Minority interest in subsidiaries,
net of dividend paid 7 (151)
Changes in assets and liabilities,
net of business acquired:
Receivables (49,665) (14,742)
Inventories 8,703 (33,969)
Current liabilities 50,639 18,671
Other, net (1,629) (554)
Net cash provided by operating
activities 83,151 93,437
Investing activities:
Capital expenditures (13,425) (13,073)
Business acquired (10,891) (14,583)
Proceeds from sales of properties 10,059 5,493
Net cash used in investing activities (14,257) (22,163)
Financing activities:
Dividends paid (10,983) (10,591)
Acquisition of treasury stock (168) (28,409)
Proceeds from the sale of treasury
stock 4,346 7,344
Repayments of long-term debt (4,355) (2,776)
Net cash used in financing activities (11,160) (34,432)
Effect of exchange rate changes on
cash (495) (15)
Increase in cash and cash equivalents 57,239 36,827
Cash provided by discontinued
operations 3,324 -
Cash and cash equivalents at the
beginning of the period 47,449 255,088
Cash and cash equivalents at the end
of the period $ 108,012 $ 291,915
SOURCE Mueller Industries, Inc.
-0- 10/20/2005
/CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/