Mueller Industries, Inc. (NYSE:MLI) announces results for the first quarter of 2023. Results as compared with the first quarter of 2022 include:

Operating Income of $229.1 million versus $212.7 million, an increase of 7.7%.
Net Income of $173.2 million versus $158.3 million, an increase of 9.4%.
EPS of $3.07 versus $2.78, an increase of 10.4%.
Net Sales of $971.2 million versus $1.01 billion, a decrease of 3.8%.

First Quarter Highlights:

The decrease in net sales was due to lower copper prices along with lower unit volume in our international mill businesses, partially offset by increased net sales in our downstream businesses that have a higher value add content. COMEX copper averaged $4.09 per pound, 10% lower than the first quarter of 2022.
Adjusting for a $5.5 million gain on property the Company disposed of in 2022, operating income increased 10.6%.
Cash generated from operations was $111.6 million, resulting in quarter end cash and short-term investments totaling $782.4 million. The Company has no net debt, and a current ratio of 4.3 to 1.
Increased the quarterly dividend by 20% to $.30 per share.

Regarding the Company's first quarter performance and outlook, Greg Christopher, Mueller's CEO said, "Our first quarter results were in line with our 2022 year-end expectations, as reported. We entered the year anticipating that more challenging economic times were likely ahead and have adjusted accordingly. Our strong cash generation and solid balance sheet will enable us to continue delivering value to our shareholders and to pursue new growth opportunities that may arise."

Mr. Christopher continued, "Subsequent to the end of the quarter, we reported that our factory in Covington, TN was severely damaged by a tornado. Most importantly, we are grateful that all of our employees were safe and without injury. As we rebuild, we have executed contingency plans, including the use of other Mueller production facilities and third party sourcing arrangements, to ensure a continuing reliable supply of products to our customers.

"The losses, both to property and resultant business interruption, are expected to be covered by existing insurance policies. Therefore, we believe the impact of this event on our financial results will be immaterial."

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
(In thousands, except per share data)	April 1, 2023			March 26, 2022

Net sales	$	971,192		$	1,010,002

Cost of goods sold		678,798			744,511
Depreciation and amortization		10,657			10,841
Selling, general, and administrative expense		52,631			47,456
Gain on sale of assets		—			(5,507	)

Operating income		229,106			212,701

Interest expense		(143	)		(158	)
Interest income		6,235			160
Other income, net		2,236			620

Income before income taxes		237,434			213,323

Income tax expense		(61,357	)		(54,199	)
(Loss) income from unconsolidated affiliates, net of foreign tax		(984	)		124

Consolidated net income		175,093			159,248

Net income attributable to noncontrolling interests		(1,854	)		(932	)

Net income attributable to Mueller Industries, Inc.	$	173,239		$	158,316

Weighted average shares for basic earnings per share		55,693			56,100
Effect of dilutive stock-based awards		707			810

Adjusted weighted average shares for diluted earnings per share		56,400			56,910

Basic earnings per share	$	3.11		$	2.82

Diluted earnings per share	$	3.07		$	2.78

Dividends per share	$	0.30		$	0.25



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

	For the Quarter Ended
(In thousands)	April 1, 2023			March 26, 2022

Summary Segment Data:

Net sales:
Piping Systems Segment	$	662,479		$	703,430
Industrial Metals Segment		165,234			174,312
Climate Segment		152,954			140,622
Elimination of intersegment sales		(9,475	)		(8,362	)

Net sales	$	971,192		$	1,010,002

Operating income:
Piping Systems Segment	$	163,854		$	160,488
Industrial Metals Segment		27,215			23,259
Climate Segment		53,988			36,700
Unallocated income (expenses)		(15,951	)		(7,746	)

Operating income	$	229,106		$	212,701


MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	April 1, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	611,399	$	461,018
Short-term investments		170,997		217,863
Accounts receivable, net		503,369		380,352
Inventories		452,826		448,919
Other current assets		28,420		26,501

Total current assets		1,767,011		1,534,653

Property, plant, and equipment, net		377,324		379,950
Operating lease right-of-use assets		29,897		22,892
Other assets		305,389		304,904

Total assets	$	2,479,621	$	2,242,399

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt	$	1,108	$	811
Accounts payable		179,244		128,000
Current portion of operating lease liabilities		6,249		4,942
Other current liabilities		220,144		214,542

Total current liabilities		406,745		348,295

Long-term debt		1,251		1,218
Pension and postretirement liabilities		11,260		13,055
Environmental reserves		16,060		16,380
Deferred income taxes		17,561		16,258
Noncurrent operating lease liabilities		22,773		16,880
Other noncurrent liabilities		16,502		16,349

Total liabilities		492,152		428,435

Total Mueller Industries, Inc. stockholders' equity		1,962,307		1,790,914
Noncontrolling interests		25,162		23,050

Total equity		1,987,469		1,813,964

Total liabilities and equity	$	2,479,621	$	2,242,399


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

	For the Quarter Ended
(In thousands)	April 1, 2023			March 26, 2022

Cash flows from operating activities
Consolidated net income	$	175,093		$	159,248
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization		10,746			10,930
Stock-based compensation expense		5,637			2,573
Provision for doubtful accounts receivable		(15	)		125
Loss (income) from unconsolidated affiliates		984			(124	)
Gain on disposals of properties		(115	)		(5,507	)
Deferred income tax expense		372			258
Changes in assets and liabilities:
Receivables		(111,547	)		(116,610	)
Inventories		(581	)		(40,803	)
Other assets		(17,950	)		314
Current liabilities		50,842			54,344
Other liabilities		(2,275	)		(1,752	)
Other, net		427			(137	)

Net cash provided by operating activities		111,618			62,859

Cash flows from investing activities
Capital expenditures		(7,556	)		(5,259	)
Insurance proceeds - capital related		8,000			—
Proceeds from the maturity of short term investments		50,000			—
Proceeds from sales of properties		118			6,219
Dividends from unconsolidated affiliates		644			959

Net cash provided by investing activities		51,206			1,919

Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.		(16,729	)		—
Repurchase of common stock		—			(3,972	)
Repayments of debt		(56	)		(56	)
Issuance of debt by consolidated joint ventures, net		297			—
Net cash used to settle stock-based awards		(2,611	)		(230	)

Net cash used in financing activities		(19,099	)		(4,258	)

Effect of exchange rate changes on cash		2,573			301

Increase in cash, cash equivalents, and restricted cash		146,298			60,821
Cash, cash equivalents, and restricted cash at the beginning of the period		465,296			90,376

Cash, cash equivalents, and restricted cash at the end of the period	$	611,594		$	151,197

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