Mueller Industries, Inc. (NYSE:MLI) announces results for the second quarter of 2022. (All comparisons are to the prior year quarter.)

Operating Income of $268.9 million versus $157.8 million
Net Income of $206.6 million versus $108.8 million
EPS of $3.65 versus $1.92
Net Sales of $1.15 billion versus $1.01 billion

Second Quarter Financial and Operating Highlights:

The 13.6 percent increase in net sales was driven by strong growth in our value added businesses, combined with higher selling prices across all businesses.
- COMEX copper averaged $4.34 per pound during the quarter, two percent lower than the second quarter of 2021.
- Our Industrials Metals group volume, measured in pounds, declined 4 percent, largely attributable to customer inventory re-balancing as lead times improved.
- Our U.S. copper tube volume was up slightly and remains solid; however, influenced largely by economic softening outside of the U.S., our international tube sales declined 17 percent, against a very strong second quarter in 2021.
- Our value added businesses grew 33 percent.
- Divestitures in 2021 reduced net sales by $31 million as compared with the prior year quarter.

Cash at quarter end was $202.5 million, up $114.6 million year to date.
- Cash generated from operations during the period was $142 million.
- Net debt was zero.
- The current ratio at quarter end was 3.2 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller's CEO said, "At the mid-way point in the year, our businesses continue to deliver excellent results. The second quarter was our twelfth consecutive quarter in which operating income grew over the prior year period. Rising interest rates, inflationary pressures and continued geopolitical disruptions will create short term challenges, but notwithstanding, we believe that Mueller is well positioned for continued long term growth.

"The majority of our businesses remain at capacity along with healthy backlogs. We anticipate that some tempering in our primary market segment, building construction, will occur, but that underlying demand will nevertheless remain at levels we consider very healthy for our businesses.

"Our cash generation is strong, and we have zero net debt along with a committed, untapped credit facility. Reinvestment in our businesses to be the lowest cost producer remains a top priority, and we are well equipped to take advantage of strategic acquisition opportunities as they arise."

Mueller Industries, Inc. (NYSE:MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

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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. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," "encourage," "anticipate," "appear," and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	For the Quarter Ended						For the Six Months Ended
(In thousands, except per share data)	June 25, 2022			June 26, 2021			June 25, 2022			June 26, 2021

Net sales	$	1,150,042		$	1,012,592		$	2,160,044		$	1,830,740

Cost of goods sold		820,914			799,712			1,565,425			1,468,130
Depreciation and amortization		11,302			11,134			22,143			22,889
Selling, general, and administrative expense		48,956			43,932			96,412			89,367
Gain on sale of assets		—			—			(5,507	)		—

Operating income		268,870			157,814			481,571			250,354

Interest expense		(147	)		(1,866	)		(305	)		(6,335	)
Redemption premium		—			(5,674	)		—			(5,674	)
Other income, net		2,203			683			2,983			1,260

Income before income taxes		270,926			150,957			484,249			239,605

Income tax expense		(68,290	)		(39,006	)		(122,489	)		(60,767	)
Income (loss) from unconsolidated affiliates, net of foreign tax		4,888			(1,019	)		5,012			(2,668	)

Consolidated net income		207,524			110,932			366,772			176,170

Net income attributable to noncontrolling interests		(972	)		(2,100	)		(1,904	)		(4,231	)

Net income attributable to Mueller Industries, Inc.	$	206,552		$	108,832		$	364,868		$	171,939

Weighted average shares for basic earnings per share		55,787			55,946			55,943			55,931
Effect of dilutive stock-based awards		741			866			776			811

Adjusted weighted average shares for diluted earnings per share		56,528			56,812			56,719			56,742

Basic earnings per share	$	3.70		$	1.95		$	6.52		$	3.07

Diluted earnings per share	$	3.65		$	1.92		$	6.43		$	3.03

Dividends per share	$	0.25		$	0.13		$	0.50		$	0.26


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)

	For the Quarter Ended						For the Six Months Ended
(In thousands)	June 25, 2022			June 26, 2021			June 25, 2022			June 26, 2021

Summary Segment Data:

Net sales:
Piping Systems Segment	$	824,807		$	711,616		$	1,528,237		$	1,259,364
Industrial Metals Segment		179,175			180,040			353,487			344,892
Climate Segment		164,484			131,708			305,106			242,734
Elimination of intersegment sales		(18,424	)		(10,772	)		(26,786	)		(16,250	)

Net sales	$	1,150,042		$	1,012,592		$	2,160,044		$	1,830,740

Operating income:
Piping Systems Segment	$	211,579		$	124,508		$	372,067		$	191,606
Industrial Metals Segment		24,168			20,499			47,427			39,346
Climate Segment		50,747			25,372			87,447			42,707
Unallocated income (expenses)		(17,624	)		(12,565	)		(25,370	)		(23,305	)

Operating income	$	268,870		$	157,814		$	481,571		$	250,354

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	June 25, 2022		December 25, 2021
ASSETS
Cash and cash equivalents	$	202,501	$	87,924
Accounts receivable, net		611,578		471,859
Inventories		475,951		430,244
Other current assets		45,726		28,976

Total current assets		1,335,756		1,019,003

Property, plant, and equipment, net		388,139		385,562
Operating lease right-of-use assets		22,870		23,510
Other assets		300,207		300,861

Total assets	$	2,046,972	$	1,728,936

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt	$	1,112	$	811
Accounts payable		208,869		180,793
Current portion of operating lease liabilities		5,725		6,015
Other current liabilities		203,065		194,820

Total current liabilities		418,771		382,439

Long-term debt		1,131		1,064
Pension and postretirement liabilities		16,608		17,533
Environmental reserves		16,300		17,678
Deferred income taxes		11,712		14,347
Noncurrent operating lease liabilities		15,899		17,099
Other noncurrent liabilities		20,928		21,813

Total liabilities		501,349		471,973

Total Mueller Industries, Inc. stockholders' equity		1,510,463		1,222,118
Noncontrolling interests		35,160		34,845

Total equity		1,545,623		1,256,963

Total liabilities and equity	$	2,046,972	$	1,728,936

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)	For the Six Months Ended
(In thousands)	June 25, 2022			June 26, 2021

Cash flows from operating activities
Consolidated net income	$	366,772		$	176,170
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization		22,322			22,975
Stock-based compensation expense		5,171			4,817
Provision for doubtful accounts receivable		151			1,280
(Income) loss from unconsolidated affiliates		(5,012	)		2,668
Redemption premium		—			5,674
Gain on disposals of properties		(6,800	)		(819	)
Deferred income tax (benefit) expense		(373	)		3,252
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables		(146,438	)		(190,944	)
Inventories		(49,354	)		(63,949	)
Other assets		(6,095	)		(5,482	)
Current liabilities		28,906			50,456
Other liabilities		(4,283	)		3,429
Other, net		(433	)		(247	)

Net cash provided by operating activities		204,534			9,280

Cash flows from investing activities
Capital expenditures		(23,248	)		(17,978	)
Acquisition of businesses, net of cash acquired		—			(13,935	)
Payment received for (issuance of) notes receivable		—			8,539
Proceeds from sales of properties		7,561			1,730
Dividends from unconsolidated affiliates		1,609			—

Net cash used in investing activities		(14,078	)		(21,644	)

Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.		(27,968	)		(14,546	)
Repurchase of common stock		(33,469	)		—
Issuance of debt		—			425,000
Repayments of debt		(111	)		(400,497	)
Issuance of debt by consolidated joint ventures, net		360			463
Net cash (used) received to settle stock-based awards		(95	)		414
Debt issuance costs		—			(1,111	)

Net cash (used in) provided by financing activities		(61,283	)		9,723

Effect of exchange rate changes on cash		(2,234	)		987

Increase (decrease) in cash, cash equivalents, and restricted cash		126,939			(1,654	)
Cash, cash equivalents, and restricted cash at the beginning of the period		90,376			127,376

Cash, cash equivalents, and restricted cash at the end of the period	$	217,315		$	125,722

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Mueller Industries, Inc. Reports Second Quarter 2022 Earnings