Mueller Industries, Inc. (NYSE:MLI) today reported 2021 fourth quarter and full year results.

Fourth Quarter metrics:

Operating income was $172.1 million, up 165%.
Net sales were $956.4 million, up 42%.
Net income was $125.6 million versus $36.4 million.
Diluted EPS was $2.21 versus $0.64.
Cash provided by operations was $130.2 million.

Full Year metrics:

Operating income was $655.8 million, up 167%.
Net sales were $3.8 billion, up 57%.
Net income was $468.5 million versus $139.5 million.
Diluted EPS was $8.25 versus $2.47.
Cash provided by operations was $311.7 million.

*Comparisons to prior year periods

Quarter Commentary

The average price of copper was 34.3 percent higher than in the fourth quarter of 2020.
Net sales growth was driven by volume growth in our US businesses, higher prices primarily attributable to the rise in COMEX copper, and the contributions of our recently acquired H&C Flex business, which is recorded under our Climate segment.
The Company recorded a loss of $1.8 million on its investment in Tecumseh during the quarter, compared to income of $10.0 million in the previous year quarter, which included a pre-tax gain of $11.6 million from a land sale.
During the quarter we acquired the majority ownership of the Mueller Middle East copper tube mill in Bahrain. This mill is geographically well positioned to serve markets in the Middle East and Northern Africa.

Full Year Commentary

The results included $57.8 million of gains from the sale of businesses.
The average price of copper was 51.6 percent higher than in 2020.
Net sales growth of $1.4 billion was driven by volume growth in almost every business, higher selling prices primarily resulting from the rise in COMEX copper, and full year reported sales of acquired businesses.
During the year, $330.7 million of debt was repaid leaving a balance of $1.9 million at year-end. The Company's $400.0 million credit facility is undrawn and cash and cash equivalents totaled $87.9 million.

Operating Highlights and Outlook:

Greg Christopher, CEO, commented, "Our exceptional results in the fourth quarter capped our second consecutive year of record earnings. The strength our businesses exhibited throughout the year was fueled by solid demand and outstanding operational execution by our team in the face of significant inflationary pressures, supply chain disruptions, and extensive labor shortages."

With regard to the outlook, he added, "We anticipate continued momentum in the building construction and industrial markets in 2022, both important end markets for our businesses. Mueller is well positioned to build upon its success as we start the new year with healthy order books and our manufacturing facilities operating at highly efficient levels."

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.

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 Year Ended
(In thousands, except per share data)	December 25, 2021			December 26, 2020			December 25, 2021			December 26, 2020

Net sales	$	956,357		$	675,851		$	3,769,345		$	2,398,043

Cost of goods sold		726,594			553,507			2,938,989			1,966,161
Depreciation and amortization		11,633			11,955			45,390			44,843
Selling, general, and administrative expense		48,729			44,649			184,052			159,483
Gain on sale of businesses		(3,001	)		—			(57,760	)		—
Litigation settlement, net		—			—			—			(22,053	)
Impairment charges		261			736			2,829			3,771

Operating income		172,141			65,004			655,845			245,838

Interest expense		(258	)		(4,010	)		(7,709	)		(19,247	)
Environmental expense		(982	)		(3,488	)		(5,053	)		(4,454	)
Redemption premium		—			—			(5,674	)		—
Pension plan termination expense		—			(17,835	)		—			(17,835	)
Other income, net		947			287			3,730			4,887

Income before income taxes		171,848			39,958			641,139			209,189

Income tax expense		(44,862	)		(12,698	)		(165,858	)		(55,321	)
(Loss) income from unconsolidated affiliates, net of foreign tax		(288	)		9,994			(157	)		(10,219	)

Consolidated net income		126,698			37,254			475,124			143,649

Net income attributable to noncontrolling interests		(1,097	)		(834	)		(6,604	)		(4,156	)

Net income attributable to Mueller Industries, Inc.	$	125,601		$	36,420		$	468,520		$	139,493

Weighted average shares for basic earnings per share		56,104			55,869			56,011			55,821
Effect of dilutive stock-based awards		796			673			787			569

Adjusted weighted average shares for diluted earnings per share		56,900			56,542			56,798			56,390

Basic earnings per share	$	2.24		$	0.65		$	8.36		$	2.50

Diluted earnings per share	$	2.21		$	0.64		$	8.25		$	2.47

Dividends per share	$	0.13		$	0.10		$	0.52		$	0.40


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


	For the Quarter Ended						For the Year Ended
(In thousands)	December 25, 2021			December 26, 2020			December 25, 2021			December 26, 2020

Summary Segment Data:

Net sales:
Piping Systems Segment	$	652,466		$	454,535		$	2,600,030		$	1,583,002
Industrial Metals Segment		176,226			133,507			703,363			472,159
Climate Segment		130,428			93,148			495,414			370,131
Elimination of intersegment sales		(2,763	)		(5,339	)		(29,462	)		(27,249	)

Net sales	$	956,357		$	675,851		$	3,769,345		$	2,398,043

Operating income:
Piping Systems Segment	$	142,482		$	43,106		$	486,287		$	165,719
Industrial Metals Segment		27,077			15,662			85,475			54,065
Climate Segment		21,757			13,279			85,536			56,802
Unallocated expenses		(19,175	)		(7,043	)		(1,453	)		(30,748	)

Operating income	$	172,141		$	65,004		$	655,845		$	245,838


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)	December 25, 2021		December 26, 2020
ASSETS
Cash and cash equivalents	$	87,924	$	119,075
Accounts receivable, net		471,859		357,532
Inventories		430,244		315,002
Other current assets		28,976		33,752

Total current assets		1,019,003		825,361

Property, plant, and equipment, net		385,562		376,572
Operating lease right-of-use assets		23,510		29,301
Other assets		300,861		297,334

	$	1,728,936	$	1,528,568

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt	$	811	$	41,283
Accounts payable		180,793		147,741
Current portion of operating lease liabilities		6,015		6,259
Other current liabilities		194,820		144,360

Total current liabilities		382,439		339,643

Long-term debt		1,064		286,593
Pension and postretirement liabilities		17,533		26,841
Environmental reserves		17,678		21,256
Deferred income taxes		14,347		16,842
Noncurrent operating lease liabilities		17,099		21,602
Other noncurrent liabilities		21,813		14,731

Total liabilities		471,973		727,508

Total Mueller Industries, Inc. stockholders' equity		1,222,118		776,745
Noncontrolling interests		34,845		24,315

Total equity		1,256,963		801,060

	$	1,728,936	$	1,528,568


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

	For the Year Ended
(In thousands)	December 25, 2021			December 26, 2020

Cash flows from operating activities
Consolidated net income	$	475,124		$	143,649
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization		45,655			45,162
Stock-based compensation expense		9,822			8,570
Provision for doubtful accounts receivable		1,216			1,208
Loss from unconsolidated affiliates		157			10,219
Non-cash pension plan termination expense		—			11,642
Gain on sale of businesses		(57,760	)		—
(Gain) loss on disposals of assets		(769	)		132
Redemption premium		5,674			—
Impairment charges		2,829			3,771
Deferred income tax expense (benefit)		7,413			(4,046	)
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables		(124,708	)		(76,404	)
Inventories		(119,514	)		5,207
Other assets		919			20,609
Current liabilities		73,755			74,097
Other liabilities		(5,467	)		(1,142	)
Other, net		(2,645	)		2,399

Net cash provided by operating activities		311,701			245,073

Cash flows from investing activities
Proceeds from sale of assets, net of cash transferred		2,302			181
Proceeds from sale of business, net of cash sold		81,884			—
Acquisition of businesses, net of cash acquired		(30,206	)		(72,648	)
Capital expenditures		(31,833	)		(43,885	)
Payment received for (issuance of) notes receivable		8,539			(9,270	)
Investments in unconsolidated affiliates		(1,613	)		—
Net cash provided by (used in) investing activities		29,073			(125,622	)


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

	For the Year Ended
(In thousands)	December 25, 2021			December 26, 2020

Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.		(29,137	)		(22,341	)
Dividends paid to noncontrolling interests		(9,722	)		—
Issuance of long-term debt		595,000			190,038
Repayments of long-term debt		(920,610	)		(246,898	)
Repayment of debt by consolidated joint ventures, net		(5,113	)		(259	)
Repurchase of common stock		(4,864	)		(5,574	)
Payment of contingent consideration		(1,250	)		(7,000	)
Net cash received (used) to settle stock-based awards		85			(230	)
Debt issuance costs		(1,111	)		—

Net cash used in financing activities		(376,722	)		(92,264	)

Effect of exchange rate changes on cash		(1,052	)		2,147

(Decrease) increase in cash, cash equivalents, and restricted cash		(37,000	)		29,334
Cash, cash equivalents, and restricted cash at the beginning of the year		127,376			98,042
Cash, cash equivalents, and restricted cash at the end of the year	$	90,376		$	127,376

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Mueller Industries, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results