Date of Report (Date of earliest event reported):
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April 26, 2016
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Delaware
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1-6770
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25-0790410
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(State or other
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(Commission File
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(IRS Employer
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jurisdiction of
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Number)
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Identification No.)
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incorporation)
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8285 Tournament Drive
Suite 150
Memphis, Tennessee
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38125
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code:
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(901) 753-3200
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Registrant's Former Name or Address, if changed since last report:
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N/A
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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99.1
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Press release, dated April 26, 2016 reporting first quarter 2016 earnings.
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MUELLER INDUSTRIES, INC.
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||
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||
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By:
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/s/ Jeffrey A. Martin
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Name:
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Jeffrey A. Martin
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Title:
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Chief Financial Officer and Treasurer
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Date: April 26, 2016
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|
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Exhibit No.
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Description
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99.1
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Press release, dated April 26, 2016.
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·
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Copper prices were down approximately 21% in the first quarter versus the same period last year, resulting in the lower selling prices.
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·
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The first quarter of 2016 comprised four more work days than the first quarter of 2015.
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·
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Included in the results is $2.9 million of net income from Tecumseh Products Co., an unconsolidated affiliate, which includes effects from purchase accounting.
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·
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Ending cash for the period was $270 million or $4.73 per share and our current ratio remains strong at 4.1 to 1.
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****************************
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For the Quarter Ended
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|||||||
(In thousands, except per share data)
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April 2, 2016
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March 28, 2015
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||||||
Net sales
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$
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532,809
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$
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537,242
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||||
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||||||||
Cost of goods sold
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446,642
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460,834
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||||||
Depreciation and amortization
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8,920
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7,853
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||||||
Selling, general, and administrative expense
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35,780
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32,831
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||||||
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||||||||
Operating income
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41,467
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35,724
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||||||
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||||||||
Interest expense
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(1,848
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)
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(2,076
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)
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||||
Other income, net
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245
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105
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||||||
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||||||||
Income before income taxes
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39,864
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33,753
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||||||
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||||||||
Income tax expense
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(14,121
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)
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(11,413
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)
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||||
Income from unconsolidated affiliate, net of tax
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2,922
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—
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||||||
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||||||||
Consolidated net income
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28,665
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22,340
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||||||
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||||||||
Net income attributable to noncontrolling interest
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(35
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)
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(362
|
)
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||||
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||||||||
Net income attributable to Mueller Industries, Inc.
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$
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28,630
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$
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21,978
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||||
Weighted average shares for basic earnings per share
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56,467
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56,193
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||||||
Effect of dilutive stock-based awards
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495
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731
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||||||
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||||||||
Adjusted weighted average shares for diluted earnings per share
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56,962
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56,924
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||||||
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||||||||
Basic earnings per share
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$
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0.51
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$
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0.39
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||||
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||||||||
Diluted earnings per share
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$
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0.50
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$
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0.39
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||||
|
||||||||
Dividends per share
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$
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0.075
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$
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0.075
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||||
|
||||||||
Summary Segment Data:
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||||||||
Net sales:
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||||||||
Piping Systems Segment
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$
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368,890
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$
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361,482
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||||
Industrial Metals Segment
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134,521
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151,036
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||||||
Climate Segment
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30,706
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25,811
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||||||
Elimination of intersegment sales
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(1,308
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)
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(1,087
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)
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||||
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||||||||
Net sales
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$
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532,809
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$
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537,242
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||||
|
||||||||
Operating income:
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||||||||
Piping Systems Segment
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$
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31,159
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$
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26,259
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||||
Industrial Metals Segment
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19,912
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18,959
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||||||
Climate Segment
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3,879
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2,265
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||||||
Unallocated expenses
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(13,483
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)
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(11,759
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)
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||||
|
||||||||
Operating income
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$
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41,467
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$
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35,724
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(In thousands)
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April 2, 2016
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December 26,
2015
|
||||||
ASSETS
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||||||||
Cash and cash equivalents
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$
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270,149
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$
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274,844
|
||||
Accounts receivable, net
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275,881
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251,571
|
||||||
Inventories
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240,608
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239,378
|
||||||
Other current assets
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34,123
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34,608
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||||||
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||||||||
Total current assets
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820,761
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800,401
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||||||
|
||||||||
Property, plant, and equipment, net
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278,481
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280,224
|
||||||
Other assets
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261,778
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258,176
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||||||
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||||||||
Total assets
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$
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1,361,020
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$
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1,338,801
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||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current portion of debt
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$
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4,583
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$
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11,760
|
||||
Accounts payable
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98,324
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88,051
|
||||||
Other current liabilities
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99,701
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109,618
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||||||
|
||||||||
Total current liabilities
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202,608
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209,429
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||||||
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||||||||
Long-term debt
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206,000
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204,250
|
||||||
Pension and postretirement liabilities
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33,715
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34,876
|
||||||
Environmental reserves
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20,932
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20,943
|
||||||
Deferred income taxes
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8,310
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7,161
|
||||||
Other noncurrent liabilities
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2,973
|
2,440
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||||||
|
||||||||
Total liabilities
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474,538
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479,099
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||||||
|
||||||||
Total Mueller Industries, Inc. stockholders' equity
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854,804
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827,285
|
||||||
Noncontrolling interest
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31,678
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32,417
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||||||
|
||||||||
Total equity
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886,482
|
859,702
|
||||||
|
||||||||
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$
|
1,361,020
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$
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1,338,801
|
||||
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||||||||
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For the Quarter Ended
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|||||||
(In thousands)
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April 2, 2016
|
March 28, 2015
|
||||||
|
||||||||
Cash flows from operating activities
|
||||||||
Consolidated net income
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$
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28,665
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$
|
22,340
|
||||
Reconciliation of consolidated net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
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9,011
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8,015
|
||||||
Equity in earnings of unconsolidated affiliate
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(2,922
|
)
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—
|
|||||
Stock-based compensation expense
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1,236
|
1,349
|
||||||
(Gain) loss on disposal of properties
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(23
|
)
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1
|
|||||
Deferred income taxes
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1,895
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(570
|
)
|
|||||
Income tax benefit from exercise of stock options
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(96
|
)
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(69
|
)
|
||||
Changes in assets and liabilities, net of business acquired:
|
||||||||
Receivables
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(25,089
|
)
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(36,692
|
)
|
||||
Inventories
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(1,631
|
)
|
7,534
|
|||||
Other assets
|
(370
|
)
|
9,257
|
|||||
Current liabilities
|
655
|
(7,389
|
)
|
|||||
Other liabilities
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(704
|
)
|
(131
|
)
|
||||
Other, net
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(291
|
)
|
245
|
|||||
|
||||||||
Net cash provided by operating activities
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10,336
|
3,890
|
||||||
|
||||||||
Cash flows from investing activities
|
||||||||
Capital expenditures
|
(5,892
|
)
|
(7,392
|
)
|
||||
Net withdrawals from (deposits into) restricted cash balances
|
84
|
(12,593
|
)
|
|||||
Proceeds from sale of assets
|
1
|
492
|
||||||
|
||||||||
Net cash used in investing activities
|
(5,807
|
)
|
(19,493
|
)
|
||||
|
||||||||
Cash flows from financing activities
|
||||||||
Dividends paid to stockholders of Mueller Industries, Inc.
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(4,236
|
)
|
(4,216
|
)
|
||||
Repayment of debt by joint venture, net
|
(7,024
|
)
|
(3,817
|
)
|
||||
Repayment of long-term debt
|
(250
|
)
|
(250
|
)
|
||||
Issuance of long-term debt
|
2,000
|
—
|
||||||
Net cash received to settle stock-based awards
|
361
|
93
|
||||||
Income tax benefit from exercise of stock options
|
96
|
69
|
||||||
|
||||||||
Net cash used in financing activities
|
(9,053
|
)
|
(8,121
|
)
|
||||
|
||||||||
Effect of exchange rate changes on cash
|
(171
|
)
|
(1,516
|
)
|
||||
|
||||||||
Decrease in cash and cash equivalents
|
(4,695
|
)
|
(25,240
|
)
|
||||
Cash and cash equivalents at the beginning of the period
|
274,844
|
352,134
|
||||||
|
||||||||
Cash and cash equivalents at the end of the period
|
$
|
270,149
|
$
|
326,894
|