Mueller Industries, Inc. (NYSE:MLI) announces 2021 second quarter results. (All comparisons are to the prior year quarter.)

Operating income of $157.8 million versus $52.3 million
Net income of $108.8 million versus $28.0 million
Net sales of $1.01 billion versus $500.2 million
EPS of $1.92 versus $0.50 per share

Financial and Operating Highlights:

Average COMEX copper for the second quarter was $4.43 per pound, an 82 percent increase over the second quarter of last year.
The increase in net sales was attributable to unit sales growth across all segments, contributions from 2020 acquisitions, and the influence of higher copper prices.
During the quarter, we retired our Subordinated Debentures ($284.4 million) and recognized an expense of $5.7 million for a redemption premium.
We recorded a $1.0 million loss on our investment in Tecumseh Products Company for the quarter, compared to an $8.6 million loss recorded during the prior year period.
At quarter-end, cash on hand was $110.7 million, our debt to total capitalization was 27 percent, and the current ratio was 3.0 to 1.

Regarding the state of the Company and outlook, Greg Christopher, Mueller's CEO said,

"During the second quarter, our team delivered excellent operating performance while confronting highly inflated demand and widespread industry supply constraints. Extended lead times and abnormally high backlogs are expected to continue well into the third quarter, as many of these conditions persist.

Mueller's operations remain well positioned for the current market conditions due to our operational investments and acquisitions that enhance capacity, increase yields and lower costs. In addition, we continue to benefit from the prudent cost controls we implemented during the height of the pandemic.

We anticipate that strong demand in the building construction sectors will continue through the remainder of the year."

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 Six Months Ended
(In thousands, except per share data)	June 26, 2021			June 27, 2020			June 26, 2021			June 27, 2020

Net sales	$	1,012,592		$	500,168		$	1,830,740		$	1,103,087

Cost of goods sold	799,712			403,159			1,468,130			911,874
Depreciation and amortization	11,134			11,097			22,889			22,136
Selling, general, and administrative expense	43,932			33,616			89,367			76,368
Asset impairments	—			—			—			3,035
Litigation settlement, net	—			—			—			(21,933		)

Operating income	157,814			52,296			250,354			111,607

Interest expense	(1,866		)	(4,973		)	(6,335		)	(10,352		)
Redemption premium	(5,674		)	—			(5,674		)	—
Other income, net	683			2,834			1,260			3,112

Income before income taxes	150,957			50,157			239,605			104,367

Income tax expense	(39,006		)	(13,029		)	(60,767		)	(27,173		)
Loss from unconsolidated affiliates, net of foreign tax	(1,019		)	(8,641		)	(2,668		)	(14,756		)

Consolidated net income	110,932			28,487			176,170			62,438

Net income attributable to noncontrolling interests	(2,100		)	(531		)	(4,231		)	(2,067		)

Net income attributable to Mueller Industries, Inc.	$	108,832		$	27,956		$	171,939		$	60,371

Weighted average shares for basic earnings per share	55,946			55,723			55,931			55,799
Effect of dilutive stock-based awards	866			471			811			527

Adjusted weighted average shares for diluted earnings per share	56,812			56,194			56,742			56,326

Basic earnings per share	$	1.95		$	0.50		$	3.07		$	1.08

Diluted earnings per share	$	1.92		$	0.50		$	3.03		$	1.07

Dividends per share	$	0.13		$	0.10		$	0.26		$	0.20

Summary Segment Data:

Net sales:
Piping Systems Segment	$	711,616		$	334,040		$	1,259,364		$	719,053
Industrial Metals Segment	180,040			88,619			344,892			219,821
Climate Segment	131,708			86,107			242,734			179,379
Elimination of intersegment sales	(10,772		)	(8,598		)	(16,250		)	(15,166		)

Net sales	$	1,012,592		$	500,168		$	1,830,740		$	1,103,087

Operating income:
Piping Systems Segment	$	124,508		$	41,074		$	191,606		$	77,750
Industrial Metals Segment	20,499			8,873			39,346			20,055
Climate Segment	25,372			12,353			42,707			25,367
Unallocated expenses	(12,565		)	(10,004		)	(23,305		)	(11,565		)

Operating income	$	157,814		$	52,296		$	250,354		$	111,607

MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	June 26, 2021		December 26, 2020
ASSETS
Cash and cash equivalents	$	110,681	$	119,075
Accounts receivable, net	542,044		357,532
Inventories	384,982		315,002
Other current assets	44,288		33,752

Total current assets	1,081,995		825,361

Property, plant, and equipment, net	385,246		376,572
Operating lease right-of-use assets	26,871		29,301
Other assets	295,325		297,334

Total assets	$	1,789,437	$	1,528,568

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt	$	6,428	$	41,283
Accounts payable	190,403		147,741
Current portion of operating lease liabilities	6,546		6,259
Other current liabilities	159,052		144,360

Total current liabilities	362,429		339,643

Long-term debt	350,996		286,593
Pension and postretirement liabilities	25,167		26,841
Environmental reserves	21,020		21,256
Deferred income taxes	16,363		16,842
Noncurrent operating lease liabilities	19,433		21,602
Other noncurrent liabilities	20,113		14,731

Total liabilities	815,521		727,508

Total Mueller Industries, Inc. stockholders' equity	945,716		776,745
Noncontrolling interests	28,200		24,315

Total equity	973,916		801,060

Total liabilities and equity	$	1,789,437	$	1,528,568

MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	For the Six Months Ended
(In thousands)	June 26, 2021			June 27, 2020
Cash flows from operating activities
Consolidated net income	$	176,170		$	62,438
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	22,975			22,296
Stock-based compensation expense	4,817			4,198
Provision for doubtful accounts receivable	1,280			1,850
Loss from unconsolidated affiliates	2,668			14,756
Redemption premium	5,674			—
Gain on disposals of properties	(819		)	(9		)
Impairment charges	—			3,035
Deferred income tax expense	3,252			764
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables	(190,944		)	(11,212		)
Inventories	(63,949		)	43,263
Other assets	(5,482		)	3,967
Current liabilities	50,456			(277		)
Other liabilities	3,429			(5,369		)
Other, net	(247		)	3,082
Net cash provided by operating activities	9,280			142,782
Cash flows from investing activities
Capital expenditures	(17,978		)	(22,215		)
Acquisition of businesses, net of cash acquired	(13,935		)	(15,415		)
Payment received for notes receivable	8,539			—
Proceeds from sales of properties	1,730			1
Net cash used in investing activities	(21,644		)	(37,629		)
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	(14,546		)	(11,168		)
Repurchase of common stock	—			(5,574		)
Issuance of debt	425,000			110,015
Repayments of debt	(400,497		)	(166,021		)
Issuance (repayment) of debt by consolidated joint ventures, net	463			(471		)
Net cash received to settle stock-based awards	414			696
Debt issuance costs	(1,111		)	—
Net cash provided by (used in) financing activities	9,723			(72,523		)
Effect of exchange rate changes on cash	987			(6,160		)
(Decrease) increase in cash, cash equivalents, and restricted cash	(1,654		)	26,470
Cash, cash equivalents, and restricted cash at the beginning of the period	127,376			98,042
Cash, cash equivalents, and restricted cash at the end of the period	$	125,722		$	124,512

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Mueller Industries, Inc. Reports Second Quarter 2021 Earnings