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

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

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

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

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