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Form 8-K MUELLER INDUSTRIES INC For: Feb 02

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February 2, 2016 12:16 PM EST
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
Date of Report (Date of earliest event reported):
  February 02, 2016



   MUELLER INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
  
  Delaware
  1-6770
  25-0790410
(State or other
(Commission File
(IRS Employer
jurisdiction of
Number)
Identification No.)
incorporation)
 
 
  
8285 Tournament Drive
Suite 150
  Memphis, Tennessee
  38125
(Address of principal executive offices)
(Zip Code)
  
Registrant's telephone number, including area code:
  (901) 753-3200
  
Registrant's Former Name or Address, if changed since last report:
  N/A
   
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
 
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
 
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
 
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
 

 





Item 2.02.
Results of Operations and Financial Condition.

On February 02, 2016, the Registrant issued a press release announcing earnings for the quarter and year ended December 26, 2015. A copy of the press release announcing the fourth quarter and fiscal 2015 earnings is attached as Exhibit 99.1.


Item 9.01.
Financial Statements and Exhibits.
 
(d) Exhibits
 
 
99.1
Press release, dated February 02, 2016 reporting fourth quarter and fiscal 2015 earnings.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2

 

 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
MUELLER INDUSTRIES, INC.
 
 
 
By:
/s/ JEFFREY A. MARTIN
 
 
Name:
Jeffrey A. Martin
 
Title:
Chief Financial Officer and Treasurer
 
 
 
Date:  February 02, 2016
 
 

 
























3












Exhibit Index
 
Exhibit No.
Description 
 
 
99.1
Press release, dated February 02, 2016.




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2015 Earnings
MEMPHIS, Tenn., February 2, 2016-- Mueller Industries, Inc. (NYSE: MLI) announced today that net income for the fourth quarter ending December 26, 2015 was $14.4 million, or 25 cents per diluted share.  This compares with net income of $18.0 million, or 32 cents per diluted share in the fourth quarter of 2014.  Net sales for the fourth quarter of 2015 were $472.0 million compared with $537.3 million in the same quarter of the prior year.
For the 2015 fiscal year, net income was $87.9 million, or $1.54 per diluted share, on net sales of $2.1 billion.  This compares with net income of $101.6 million, or $1.79 per diluted share, on net sales of $2.4 billion for 2014.  The decline in net sales for both the fourth quarter and full year was primarily attributable to lower copper prices, the principal raw material for the Company's manufactured products.  COMEX copper was down 26% and 20% respectively for those periods.

Financial and Operating Highlights for the fourth quarter of 2015:
·
The Company ended the year with $274.8 million of cash on hand or $4.81 per share.
·
Debt to total capitalization was 20% at year-end and the current ratio was 3.8 to 1.

Regarding the outlook, Greg Christopher, CEO of Mueller Industries, said, "The decline in copper prices in 2015 negatively impacted our pre-tax earnings in excess of $25 million.  We do not expect this to reoccur in 2016, as copper prices appear to be stabilizing.   Our mill modernization programs are progressing towards completion, and the costs incurred in these programs in 2015 should bestow advantages in 2016 and beyond.

"We anticipate that construction activity in 2016 will continue its steady growth.  The consensus view is that non-residential spending will increase by 8.2% and residential spending even more. Overall, we expect construction spending to grow substantially more rapidly than the U.S. economy as a whole."

 
 
 
 
 

 
















Mueller Industries, Inc. is a an industrial manufacturer that specializes in copper and copper alloy manufacturing while also producing goods made from aluminum, steel, and plastics.  It is headquartered in Memphis, Tennessee and comprises a network of operations in the United States, Canada, Mexico, Great Britain, and China.  Its products include tubing, fittings, valves, vessels, and related items for plumbing and HVACR related piping systems, as well as rod, forgings, extrusions, and various components for OEM applications.  Products are distributed into sectors such as building construction, appliance, defense, energy, and automotive.

*********************

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.

CONTACT
Jeffrey A. Martin
 (901)753-3226
 
 
 
 
 
 
 
 
 
 
 
Page 2 of 5
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 
  
For the Quarter Ended
    
For the Year Ended
  
(In thousands, except per share data)
  
December 26, 2015
    
December 27, 2014
    
December 26, 2015
    
December 27, 2014
  
 
  
   
   
   
 
Net sales
  
$
471,983
    
$
537,342
    
$
2,100,002
    
$
2,364,227
  
 
                                
Cost of goods sold
    
411,336
      
468,889
      
1,809,702
      
2,043,719
  
Depreciation and amortization
    
9,818
      
8,084
      
34,608
      
33,735
  
Selling, general, and administrative expense
    
31,866
      
31,228
      
130,358
      
131,740
  
Gain on sale of assets
    
—
      
(4,842
)
    
(15,376
)
    
(6,259
)
Severance
    
—
      
4,224
      
3,442
      
7,296
  
 
                                
    Operating income
    
18,963
      
29,759
      
137,268
      
153,996
  
 
                                
Interest expense
    
(1,690
)
    
(1,827
)
    
(7,667
)
    
(5,740
)
Other income (expense), net
    
1,654
      
(683
)
    
2,188
      
(243
)
 
                                
    Income before income taxes
    
18,927
      
27,249
      
131,789
      
148,013
  
 
                                
Income tax expense
    
(7,008
)
    
(9,200
)
    
(43,382
)
    
(45,479
)
Income from unconsolidated affiliate, net of tax
    
2,191
      
—
      
—
      
—
  
 
                                
    Consolidated net income
    
14,110
      
18,049
      
88,407
      
102,534
  
 
                                
Net loss (income) attributable to noncontrolling interest
    
325
      
(62
)
    
(543
)
    
(974
)
 
                                
    Net income attributable to Mueller Industries, Inc.
  
$
14,435
    
$
17,987
    
$
87,864
    
$
101,560
  
 
                                
Weighted average shares for basic earnings per share
    
56,450
      
56,169
      
56,316
      
56,042
  
Effect of dilutive stock-based awards
    
537
      
668
      
652
      
726
  
 
                                
Adjusted weighted average shares for diluted earnings per share
    
56,987
      
56,837
      
56,968
      
56,768
  
 
                                
Basic earnings per share
  
$
0.26
    
$
0.32
    
$
1.56
    
$
1.81
  
 
                                
Diluted earnings per share
  
$
0.25
    
$
0.32
    
$
1.54
    
$
1.79
  
 
                                
Dividends per share
  
$
0.075
    
$
0.075
    
$
0.300
    
$
0.300
  
 
                                
Summary Segment Data:
                                
 
                                
Net sales:
                                
    Plumbing & Refrigeration Segment
  
$
302,898
    
$
323,641
    
$
1,260,273
    
$
1,416,701
  
    OEM Segment
    
171,245
      
216,592
      
849,538
      
959,914
  
    Elimination of intersegment sales
    
(2,160
)
    
(2,891
)
    
(9,809
)
    
(12,388
)
 
                                
Net sales
  
$
471,983
    
$
537,342
    
$
2,100,002
    
$
2,364,227
  
 
                                
Operating income:
                                
    Plumbing & Refrigeration Segment
  
$
15,039
    
$
16,859
    
$
90,072
    
$
93,230
  
    OEM Segment
    
10,021
      
17,235
      
72,648
      
85,714
  
    Unallocated expenses
    
(6,097
)
    
(4,335
)
    
(25,452
)
    
(24,948
)
 
                                
Operating income
  
$
18,963
    
$
29,759
    
$
137,268
    
$
153,996
  


Page 3 of 5
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In thousands)
  
December 26, 2015
    
December 27, 2014
  
ASSETS
        
Cash and cash equivalents
  
$
274,844
    
$
352,134
  
Accounts receivable, net
    
251,571
      
275,065
  
Inventories
    
239,378
      
256,585
  
Other current assets
    
34,608
      
57,429
  
 
                
    Total current assets
    
800,401
      
941,213
  
 
                
Property, plant, and equipment, net
    
280,224
      
245,910
  
Other assets
    
258,176
      
140,973
  
 
                
 
  
$
1,338,801
    
$
1,328,096
  
 
                
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current portion of debt
  
$
11,760
    
$
36,194
  
Accounts payable
    
88,051
      
100,735
  
Other current liabilities
    
109,618
      
101,140
  
 
                
    Total current liabilities
    
209,429
      
238,069
  
 
                
Long-term debt
    
204,250
      
205,250
  
Pension and postretirement liabilities
    
34,876
      
41,556
  
Environmental reserves
    
20,943
      
21,842
  
Deferred income taxes
    
7,161
      
24,556
  
Other noncurrent liabilities
    
2,440
      
1,389
  
 
                
    Total liabilities
    
479,099
      
532,662
  
 
                
Total Mueller Industries, Inc. stockholders' equity
    
827,285
      
762,150
  
Noncontrolling interest
    
32,417
      
33,284
  
 
                
    Total equity
    
859,702
      
795,434
  
 
                
 
  
$
1,338,801
    
$
1,328,096
  
 
                

Page 4 of 5
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 
  
For the Year Ended
  
 (In thousands)
  
December 26, 2015
    
December 27, 2014
  
 
  
 
Cash flows from operating activities
  
   
 
  Consolidated net income
  
$
88,407
    
$
102,534
  
  Reconciliation of consolidated net income to net cash
    provided by operating activities:
                
      Depreciation and amortization
    
35,040
      
34,076
  
      Stock-based compensation expense
    
6,244
      
6,265
  
      Gain on disposal of assets
    
(14,815
)
    
(5,405
)
      Deferred income taxes
    
(7,209
)
    
(6,495
)
      Income tax benefit from exercise of stock options
    
(972
)
    
(837
)
      Changes in assets and liabilities, net of businesses acquired:
                
        Receivables
    
51,530
      
(21,932
)
        Inventories
    
41,086
      
1,381
  
        Other assets
    
12,449
      
(23,652
)
        Current liabilities
    
(54,194
)
    
5,849
  
        Other liabilities
    
436
      
(2,223
)
        Other, net
    
1,607
      
1,044
  
 
                
Net cash provided by operating activities
    
159,609
      
90,605
  
 
                
Cash flows from investing activities
                
  Capital expenditures
    
(28,834
)
    
(39,173
)
  Acquisition of business, net of cash acquired
    
(105,944
)
    
(30,137
)
  Proceeds from sale of assets, net of cash transferred
    
5,538
      
33,788
  
  Investment in unconsolidated affiliate
    
(65,900
)
    
—
  
  Net withdrawals from (deposits) into restricted cash balances
    
4,333
      
(2,902
)
 
                
Net cash used in investing activities
    
(190,807
)
    
(38,424
)
 
                
Cash flows from financing activities
                
  Dividends paid to stockholders of Mueller Industries, Inc.
    
(16,903
)
    
(16,819
)
  (Repayment) issuance of debt by joint venture, net
    
(23,567
)
    
7,258
  
  Net cash used to settle stock-based awards
    
(760
)
    
(719
)
  Repurchase of common stock
    
—
      
(58
)
  Repayments of long-term debt
    
(1,000
)
    
(1,050
)
  Income tax benefit from exercise of stock options
    
972
      
837
  
 
                
Net cash used in financing activities
    
(41,258
)
    
(10,551
)
 
                
Effect of exchange rate changes on cash
    
(4,834
)
    
(1,296
)
 
                
(Decrease) increase in cash and cash equivalents
    
(77,290
)
    
40,334
  
Cash and cash equivalents at the beginning of the period
    
352,134
      
311,800
  
 
                
Cash and cash equivalents at the end of the period
  
$
274,844
    
$
352,134
  
 
                



Page 5 of 5

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