Date of Report (Date of earliest event reported):
|
October 21, 2014
|
Delaware
|
1-6770
|
25-0790410
|
(State or other
|
(Commission File
|
(IRS Employer
|
jurisdiction of
|
Number)
|
Identification No.)
|
incorporation)
|
8285 Tournament Drive
Suite 150
Memphis, Tennessee
|
38125
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(901) 753-3200
|
Registrant's Former Name or Address, if changed since last report:
|
N/A
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 9.01.
|
Financial Statements and Exhibits.
|
99.1
|
Press release, dated October 21, 2014 reporting third quarter 2014 earnings.
|
MUELLER INDUSTRIES, INC.
|
|||
By:
|
/s/ Jeffrey A. Martin
|
||
Name:
|
Jeffrey A. Martin
|
||
Title:
|
Chief Financial Officer and Treasurer
|
||
Date: October 21, 2014
|
Exhibit No.
|
Description
|
99.1
|
Press release, dated October 21, 2014.
|
-
|
Results include $1.1 million of severance and other charges related to the ongoing reorganization of the acquired Yorkshire Copper Tube business.
|
-
|
Quarter ending cash totaled $259.9 million equal to $4.57 per share.
|
-
|
Stockholders’ equity was $774.6 million equal to a book value per share of $13.62.
|
-
|
Debt to total capitalization was 23.1 percent and the current ratio was 4.0 to 1.
|
*********************
|
For the Quarter Ended
|
For the Nine Months Ended
|
|||||||||||||||
(In thousands, except per share data)
|
September 27, 2014
|
September 28, 2013
|
September 27, 2014
|
September 28, 2013
|
||||||||||||
Net sales
|
$
|
602,820
|
$
|
528,854
|
$
|
1,826,885
|
$
|
1,670,826
|
||||||||
Cost of goods sold
|
521,278
|
456,302
|
1,574,830
|
1,440,277
|
||||||||||||
Depreciation and amortization
|
8,952
|
7,882
|
25,651
|
24,364
|
||||||||||||
Selling, general, and administrative expense
|
34,864
|
32,921
|
102,167
|
99,078
|
||||||||||||
Gain on sale of plastic fittings manufacturing assets
|
—
|
(39,765
|
)
|
—
|
(39,765
|
)
|
||||||||||
Impairment charges
|
—
|
4,304
|
—
|
4,304
|
||||||||||||
Insurance settlements
|
—
|
—
|
—
|
(106,332
|
)
|
|||||||||||
Operating income
|
37,726
|
67,210
|
124,237
|
248,900
|
||||||||||||
Interest expense
|
(1,430
|
)
|
(1,243
|
)
|
(3,913
|
)
|
(2,940
|
)
|
||||||||
Other income, net
|
225
|
842
|
440
|
4,324
|
||||||||||||
Income before income taxes
|
36,521
|
66,809
|
120,764
|
250,284
|
||||||||||||
Income tax expense
|
(12,199
|
)
|
(26,816
|
)
|
(36,279
|
)
|
(92,015
|
)
|
||||||||
Consolidated net income
|
24,322
|
39,993
|
84,485
|
158,269
|
||||||||||||
Net income attributable to noncontrolling interest
|
(499
|
)
|
(129
|
)
|
(911
|
)
|
(1,053
|
)
|
||||||||
Net income attributable to Mueller Industries, Inc.
|
$
|
23,823
|
$
|
39,864
|
$
|
83,574
|
$
|
157,216
|
||||||||
Weighted average shares for basic earnings per share
|
56,107
|
55,787
|
55,999
|
55,704
|
||||||||||||
Effect of dilutive stock-based awards
|
637
|
723
|
746
|
737
|
||||||||||||
Adjusted weighted average shares for diluted earnings per share
|
56,744
|
56,510
|
56,745
|
56,441
|
||||||||||||
Basic earnings per share
|
$
|
0.42
|
$
|
0.71
|
$
|
1.49
|
$
|
2.82
|
||||||||
Diluted earnings per share
|
$
|
0.42
|
$
|
0.71
|
$
|
1.47
|
$
|
2.79
|
||||||||
Dividends per share
|
$
|
0.075
|
$
|
0.0625
|
$
|
0.225
|
$
|
0.1875
|
||||||||
Summary Segment Data:
|
||||||||||||||||
Net sales:
|
||||||||||||||||
Plumbing & Refrigeration Segment
|
$
|
357,843
|
$
|
301,622
|
$
|
1,093,060
|
$
|
942,109
|
||||||||
OEM Segment
|
247,883
|
230,396
|
743,322
|
741,227
|
||||||||||||
Elimination of intersegment sales
|
(2,906
|
)
|
(3,164
|
)
|
(9,497
|
)
|
(12,510
|
)
|
||||||||
Net sales
|
$
|
602,820
|
$
|
528,854
|
$
|
1,826,885
|
$
|
1,670,826
|
||||||||
Operating income:
|
||||||||||||||||
Plumbing & Refrigeration Segment
|
$
|
20,156
|
$
|
54,271
|
$
|
76,371
|
$
|
206,708
|
||||||||
OEM Segment
|
23,977
|
19,937
|
68,479
|
61,199
|
||||||||||||
Unallocated expenses
|
(6,407
|
)
|
(6,998
|
)
|
(20,613
|
)
|
(19,007
|
)
|
||||||||
Operating income
|
$
|
37,726
|
$
|
67,210
|
$
|
124,237
|
$
|
248,900
|
(In thousands)
|
September 27, 2014
|
December 28, 2013
|
||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
259,858
|
$
|
311,800
|
||||
Accounts receivable, net
|
332,508
|
271,847
|
||||||
Inventories
|
282,493
|
251,716
|
||||||
Other current assets
|
49,319
|
39,354
|
||||||
Total current assets
|
924,178
|
874,717
|
||||||
Property, plant, and equipment, net
|
246,169
|
244,457
|
||||||
Other assets
|
157,389
|
128,593
|
||||||
$
|
1,327,736
|
$
|
1,247,767
|
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current portion of debt
|
$
|
37,207
|
$
|
29,083
|
||||
Accounts payable
|
92,342
|
80,897
|
||||||
Other current liabilities
|
103,774
|
109,276
|
||||||
Total current liabilities
|
233,323
|
219,256
|
||||||
Long-term debt
|
205,500
|
206,250
|
||||||
Pension and postretirement liabilities
|
25,860
|
27,426
|
||||||
Environmental reserves
|
21,557
|
22,144
|
||||||
Deferred income taxes
|
33,342
|
35,975
|
||||||
Other noncurrent liabilities
|
581
|
849
|
||||||
Total liabilities
|
520,163
|
511,900
|
||||||
Total Mueller Industries, Inc. stockholders’ equity
|
774,562
|
703,405
|
||||||
Noncontrolling interest
|
33,011
|
32,462
|
||||||
Total equity
|
807,573
|
735,867
|
||||||
$
|
1,327,736
|
$
|
1,247,767
|
|||||
For the Nine Months Ended
|
||||||||
(In thousands)
|
September 27, 2014
|
September 28, 2013
|
||||||
Cash flows from operating activities
|
||||||||
Consolidated net income
|
$
|
84,485
|
$
|
158,269
|
||||
Reconciliation of consolidated net income to net cash
provided by operating activities:
|
||||||||
Depreciation and amortization
|
25,888
|
24,583
|
||||||
Stock-based compensation expense
|
4,957
|
4,560
|
||||||
Insurance settlements
|
—
|
(106,332
|
)
|
|||||
Insurance proceeds – noncapital related
|
—
|
32,395
|
||||||
Gain on sale of plastic fittings manufacturing assets
|
—
|
(39,765
|
)
|
|||||
Gain on disposal of properties
|
(1,146
|
)
|
(3,316
|
)
|
||||
Impairment charges
|
—
|
4,304
|
||||||
Deferred income taxes
|
(6,908
|
)
|
14,152
|
|||||
Income tax benefit from exercise of stock options
|
(829
|
)
|
(670
|
)
|
||||
Changes in assets and liabilities, net of business acquired:
|
||||||||
Receivables
|
(62,854
|
)
|
(38,370
|
)
|
||||
Inventories
|
(14,868
|
)
|
(4,566
|
)
|
||||
Other assets
|
(15,272
|
)
|
4,886
|
|||||
Current liabilities
|
(8,675
|
)
|
19,649
|
|||||
Other liabilities
|
(797
|
)
|
(297
|
)
|
||||
Other, net
|
223
|
508
|
||||||
Net cash provided by operating activities
|
4,204
|
69,990
|
||||||
Cash flows from investing activities
|
||||||||
Capital expenditures
|
(28,406
|
)
|
(33,402
|
)
|
||||
Acquisition of business
|
(30,137
|
)
|
—
|
|||||
Insurance proceeds for property and equipment
|
—
|
29,910
|
||||||
Net withdrawals from (deposits into) restricted cash balances
|
2,507
|
(2,473
|
)
|
|||||
Proceeds from the sales of assets
|
4,920
|
64,966
|
||||||
Net cash (used in) provided by investing activities
|
(51,116
|
)
|
59,001
|
|||||
Cash flows from financing activities
|
||||||||
Dividends paid to stockholders of Mueller Industries, Inc.
|
(12,606
|
)
|
(10,449
|
)
|
||||
Debt issuance cost
|
—
|
(50
|
)
|
|||||
Issuance of debt by Mueller Europe, Limited, net
|
12,008
|
—
|
||||||
(Repayment) issuance of debt by joint venture, net
|
(3,170
|
)
|
4,940
|
|||||
Net cash used to settle stock-based awards
|
(887
|
)
|
(337
|
)
|
||||
Repurchase of common stock
|
(58
|
)
|
—
|
|||||
Repayments of long-term debt
|
(800
|
)
|
(750
|
)
|
||||
Income tax benefit from exercise of stock options
|
829
|
670
|
||||||
Net cash used in financing activities
|
(4,684
|
)
|
(5,976
|
)
|
||||
Effect of exchange rate changes on cash
|
(346
|
)
|
228
|
|||||
(Decrease) increase in cash and cash equivalents
|
(51,942
|
)
|
123,243
|
|||||
Cash and cash equivalents at the beginning of the period
|
311,800
|
198,934
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
259,858
|
$
|
322,177
|
||||
For the Quarter Ended September 28, 2013
|
||||||||||||||||
Impact of
|
||||||||||||||||
(In thousands, except per share data)
|
As Reported
|
Gain on Sale of
Plastic Fittings
Manufacturing
Assets
|
Impairment
Charges
|
Pro Forma
|
||||||||||||
Operating income
|
$
|
67,210
|
$
|
39,765
|
$
|
(4,304
|
)
|
$
|
31,749
|
|||||||
Interest expense
|
(1,243
|
)
|
—
|
—
|
(1,243
|
)
|
||||||||||
Other income, net
|
842
|
—
|
—
|
842
|
||||||||||||
Income before income taxes
|
66,809
|
39,765
|
(4,304
|
)
|
31,348
|
|||||||||||
Income tax expense
|
(26,816
|
)
|
(16,845
|
)
|
1,719
|
(11,690
|
)
|
|||||||||
Consolidated net income
|
39,993
|
22,920
|
(2,585
|
)
|
19,658
|
|||||||||||
Net income attributable to noncontrolling interest
|
(129
|
)
|
—
|
—
|
(129
|
)
|
||||||||||
Net income attributable to Mueller Industries, Inc.
|
$
|
39,864
|
$
|
22,920
|
$
|
(2,585
|
)
|
$
|
19,529
|
|||||||
Diluted earnings per share
|
$
|
0.71
|
$
|
0.41
|
$
|
(0.05
|
)
|
$
|
0.35
|
|||||||