Earnings Announcement - Mueller Industries Inc (NYSE: MLI) is scheduled to report Q4 and full-year 2024 results on February 4th before the market opens [1] Analyst Background - The analyst holds a Master of Science in Finance and focuses on long-term investments with a 5-10 year horizon [1] - The analyst prefers a portfolio mix of growth, value, and dividend-paying stocks, with a particular emphasis on value stocks [1] - The analyst occasionally engages in selling options as part of their investment strategy [1] Disclosure Information - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate any within the next 72 hours [2] - The article represents the analyst's personal opinions and is not influenced by any compensation or business relationships with the mentioned companies [2]

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Financial Performance - Net sales for Q3 2024 reached $997.8 million, a 21.7% increase from $819.8 million in Q3 2023[1] - Operating income increased to $206.7 million, up from $181.0 million, reflecting a growth of 14.2%[1] - Net income rose to $168.7 million, compared to $132.7 million in the same quarter last year, marking a 27.1% increase[1] - Diluted EPS improved to $1.48, up from $1.17, representing a 26.5% increase year-over-year[1] Cash Flow and Investments - Net cash generated from operations was $231.4 million, with a strong current ratio of 4.9 to 1[2] - Cash and short-term investments totaled $969.6 million at the end of the quarter[2] - Cash used in investing activities was $(571,250) for the nine months ended September 28, 2024, compared to a net cash provided of $94,117 in the prior year, indicating a significant shift in investment strategy[11] - The company reported capital expenditures of $(51,288) for the nine months ended September 28, 2024, up from $(39,469) in the prior year, indicating a 30% increase in capital investment[9] Equity and Assets - Total assets increased to $3.206 billion from $2.759 billion at the end of 2023, reflecting a growth of 16.1%[8] - Total equity rose to $2.709 billion, up from $2.359 billion, indicating a 14.8% increase[8] Future Outlook - The company anticipates a more stable environment due to declining interest rates and moderating inflation, positioning itself for future growth opportunities[2][3] Operational Challenges - Consolidated net income for the nine months ended September 30, 2023, was $490,353, down from $476,939 for the nine months ended September 28, 2024, representing a decrease of approximately 2.8%[9] - The company experienced a loss from unconsolidated affiliates of $5,905 for the nine months ended September 28, 2024, compared to $2,682 in the previous year, representing an increase of approximately 120%[9] - The cash balance at the end of the period was $965,605, down from $981,216 at the end of the previous year, reflecting a decrease of about 1.6%[11] - The company reported a significant increase in receivables, with a change of $(99,281) for the nine months ended September 28, 2024, compared to $(36,855) in the previous year, indicating a worsening in cash flow management[9] - The effect of exchange rate changes on cash resulted in a loss of $(4,709) for the nine months ended September 28, 2024, compared to a gain of $2,312 in the previous year, highlighting currency volatility impacts[11] Shareholder Returns - Dividends paid to stockholders increased to $(66,796) for the nine months ended September 28, 2024, compared to $(50,133) in the previous year, marking a rise of approximately 33.3%[11] - Stock-based compensation expense rose to $19,956 for the nine months ended September 28, 2024, compared to $17,268 in the previous year, an increase of approximately 9.8%[9]

Core Insights - Mueller Industries (NYSE: MLI) has achieved over 487% in total shareholder returns (TSR) over the last five years, significantly outperforming the SPDR S&P 500 ETF Trust (SPY), which recorded a TSR of just 112% [1] Company Performance - The total shareholder returns of Mueller Industries over the past five years highlight its strong performance in comparison to broader market indices [1] Market Context - The performance of Mueller Industries suggests a robust position within the industrial sector, indicating potential investment opportunities for stakeholders looking for high returns [1]

Core Insights - Quantumscale and Mueller Industries are highlighted as having significant potential for investors looking for stocks to buy in September [1] Company Analysis - Quantumscale is noted for delivering spectacular returns, indicating strong past performance and investor interest [1] - Mueller Industries is recognized for its spectacular potential, suggesting future growth opportunities that may attract investors [1]

Financial Performance - Net sales for the second quarter of 2024 were $997.7 million, an increase of 11.2% compared to $897.0 million in the same quarter of 2023[1] - Operating income for the quarter was $210.0 million, slightly down from $210.7 million year-over-year[1] - Earnings before taxes decreased to $222.9 million from $241.0 million in the previous year[8] - Diluted earnings per share (EPS) were $1.41, compared to $1.56 in the same quarter last year, reflecting a decrease of 9.6%[16] - Net income for the second quarter of 2024 was $160.2 million, a decrease from $177.7 million in the same period of 2023[25] Cash Flow and Liquidity - The company generated net cash from operations of $100.8 million, with a cash balance of $825.7 million at the end of the quarter[1] - The current ratio remains strong at 4.7 to 1, indicating solid liquidity[17] - Cash deployed during the quarter included $566.6 million for acquisitions and $15.1 million in stock repurchases[1] - Cash and cash equivalents decreased to $825,655 thousand from $1,170,893 thousand at the end of December 2023[30] - Net cash used in financing activities was $(89,584) thousand for the six months ended July 1, 2023, compared to $(55,566) thousand in the prior period[23] - Cash flow from operating activities showed a significant decrease, with a net cash decrease of $(332,208) thousand compared to an increase of $308,085 thousand in the prior period[23] - The company repurchased common stock amounting to $(42,994) thousand during the six months ended July 1, 2023, compared to $(19,303) thousand in the previous period[23] - The company reported an effect of exchange rate changes on cash of $(4,784) thousand for the current period[23] Segment Performance - The acquisition of Nehring Electrical Works contributed to the increase in net sales, providing a platform for expansion in the energy infrastructure sector[9] - The Piping Systems Segment reported net sales of $688.5 million, up from $638.0 million year-over-year[5] Balance Sheet Highlights - Total assets increased to $3,066,185 thousand from $2,759,301 thousand at the end of December 2023[30] - Total current liabilities rose to $387,228 thousand compared to $317,138 thousand at the end of December 2023[30] - Total equity increased to $2,572,858 thousand from $2,358,716 thousand at the end of December 2023[30] Commodity Prices - COMEX copper prices averaged $4.55 per pound during the quarter, which is 18.4% higher than the same period in 2023[16] Adjusted Performance - Adjusted for a $19.5 million insurance settlement gain in 2023, quarterly operating income improved by 9.8% year-over-year[25]

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new distribution partnership was established in Europe, expected to boost market share by 5% in the next fiscal year [5]. Product Development - Launched three new products, which accounted for 25% of total sales in the quarter [6]. - R&D investment increased by 10% to support ongoing product innovation and development [7]. Operational Efficiency - Implemented new cost-saving measures that reduced production costs by 5% [8]. - Streamlined supply chain operations, resulting in a 10% reduction in delivery times [9]. Customer Engagement - Customer satisfaction scores improved by 15% due to enhanced service and support initiatives [10]. - Launched a new loyalty program, which has already attracted 50,000 new members [11]. Strategic Partnerships - Formed a strategic alliance with a leading technology firm to co-develop next-generation solutions [12]. - Signed a long-term agreement with a major supplier to secure better pricing and ensure supply chain stability [13]. Regulatory Compliance - Achieved full compliance with new industry regulations, avoiding potential fines and penalties [14]. - Invested in additional training programs to ensure all employees are up-to-date with the latest compliance requirements [15]. Sustainability Initiatives - Reduced carbon emissions by 10% through the implementation of energy-efficient practices [16]. - Committed to achieving net-zero emissions by 2030, with a detailed roadmap in place [17]. Employee Development - Increased employee training budgets by 20% to support professional growth and skill development [18]. - Introduced a new mentorship program to foster leadership and innovation within the organization [19]. Technology Investments - Allocated $50 million to upgrade IT infrastructure, enhancing data security and system reliability [20]. - Partnered with a leading AI firm to integrate advanced analytics into business operations [21]. Risk Management - Conducted a comprehensive risk assessment, identifying and mitigating potential threats to business continuity [22]. - Established a dedicated risk management team to monitor and address emerging risks [23]. Shareholder Value - Increased dividend payouts by 10%, reflecting strong financial performance and confidence in future growth [24]. - Announced a share buyback program to return value to shareholders and support stock price stability [25].

Sales and Market Performance - Mueller Industries reported a significant increase in sales driven by new housing starts and commercial construction, which are key determinants for the HVAC, refrigeration, and plumbing markets[16]. - Net sales for 2023 were $3,420,345, a decrease of 14.1% compared to $3,982,455 in 2022[136]. - The decrease in net sales in 2023 was primarily due to lower unit sales volume of $264.8 million in core product lines and a decrease in sales of $203.0 million in non-core product lines[136]. - In 2023, net sales for the Piping Systems segment were $2,382.6 million, a decrease of 12.7% compared to $2,730.1 million in 2022[156]. - The Industrial Metals segment reported net sales of $577.9 million in 2023, a decline of 10.4% from $644.7 million in 2022[162]. - The Climate segment's net sales fell to $500.8 million in 2023, a decrease of 23.0% compared to $650.3 million in 2022[169]. Financial Performance - Operating income for 2023 was $756,053, down 13.8% from $877,149 in 2022[136]. - Net income for 2023 was $602,897, an 8.4% decrease from $658,316 in 2022[136]. - Cost of goods sold for 2023 was $2,433,511, representing 71.1% of net sales, compared to 71.9% in 2022[138]. - Gross margin as a percentage of sales increased to 28.9% in 2023 from 28.1% in 2022[138]. - Selling, general, and administrative expenses increased to $208,172 in 2023, primarily due to higher foreign currency transaction losses and legal fees[140]. - The company recognized a gain of $19.5 million from an insurance settlement related to a fire incident in 2022[141]. - Interest income increased in 2023 due to higher rates on deposits and short-term investments[144]. Operational Challenges and Risks - The total order backlog for the Industrial Metals Segment as of December 30, 2023, was not significant, indicating potential challenges in demand[29]. - The Climate segment's total order backlog as of December 30, 2023, was also not significant, reflecting similar demand concerns[34]. - Economic conditions in the housing and commercial construction industries, along with inflation and interest rate changes, could materially impact the company's financial condition and results of operations[48]. - Inflationary pressures have increased, impacting raw material costs and potentially affecting the company's ability to raise product prices[50]. - Competitive conditions, including the threat of imports and substitute products, could materially affect demand and profitability across all product lines[53]. - Strikes or work stoppages could disrupt operations and increase operating costs, adversely affecting profitability[56]. - Cybersecurity threats are on the rise, and breaches could expose the company to legal liability and adversely affect its reputation and operations[60]. Strategic Acquisitions and Investments - The company acquired Kessler Sales and Distribution on August 2, 2020, and increased its equity interest in Mueller Middle East to 55% on December 7, 2021, enhancing its Piping Systems segment[20]. - The company has made strategic acquisitions in Europe, Canada, South Korea, the Middle East, and the United States to enhance long-term growth and profitability[58]. - Capital expenditures for 2023 were $54.0 million, with an anticipated investment of $50.0 million to $60.0 million in 2024[192]. Shareholder Returns and Stock Performance - The company paid a quarterly cash dividend of $0.15 per share during fiscal year 2023, up from $0.125 per share in fiscal year 2022, reflecting a 20% increase[78]. - The company has repurchased approximately 15.0 million shares under its 40 million share repurchase authorization since its initial authorization in 1999[80]. - The company has extended the authorization to repurchase shares until July 2024, indicating ongoing commitment to returning value to shareholders[80]. - The company's stock performance showed a total return of 432.45% from 2018 to 2023, significantly outperforming the Dow Jones U.S. Total Return Index, which returned 203.70% in the same period[84]. Compliance and Regulatory Matters - The company anticipates expenditures of approximately $5.2 million for compliance activities related to existing environmental matters over the next three fiscal years[41]. - The provision for environmental matters was $0.7 million for 2023, down from $1.4 million in 2022 and $5.0 million in 2021, showing a decreasing trend in environmental expenses[41]. - Future compliance with environmental, health, and safety regulations may require significant capital expenditures, impacting competitiveness and financial results[55]. - The company is involved in various claims and regulatory proceedings that could have a material adverse effect on its financial position[54]. Workforce and Employment - As of December 30, 2023, the company employed approximately 4,509 employees, with 1,512 represented by various unions, indicating a stable workforce[35]. - The unplanned departure of key personnel could disrupt business operations and management capabilities[61]. Financial Position and Liquidity - The company's current ratio was 6.4 to 1 as of December 30, 2023, indicating strong liquidity[185]. - Total debt as of December 30, 2023, was $1.0 million, less than 1% of total capitalization[195]. - The company has no variable-rate debt outstanding as of December 30, 2023, indicating minimal interest rate exposure[203]. - Total contractual cash obligations amount to $799.3 million, with $759.4 million due in 2024 and 2025-2026[197]. Foreign Operations and Currency Exposure - Exposure to foreign currency exchange rate fluctuations could significantly impact competitiveness and reported results, particularly with currencies like the British pound and Mexican peso[52]. - The net investment in foreign subsidiaries translated into U.S. dollars was $270.8 million at December 30, 2023, down from $338.6 million at December 31, 2022[205]. - A hypothetical 10 percent adverse change in foreign currency exchange rates could result in a potential loss of $27.1 million in the company's net investment in foreign subsidiaries[205]. - The company experienced a 6 percent increase in the value of the British pound and a 14 percent increase in the Mexican peso relative to the U.S. dollar in 2023[206]. Governance and Internal Controls - The company maintained effective internal control over financial reporting as of December 30, 2023, according to an independent audit[98]. - The company has a Code of Business Conduct and Ethics applicable to its chief executive officer, chief financial officer, and other financial executives[110]. - The company plans to file its Proxy Statement for the 2024 Annual Meeting of Stockholders on or about March 22, 2024, which will include information on executive compensation and corporate governance[109][111]. - The company has a clawback policy in place[119].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly report ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-6770 MUELLER INDUSTRIES INC. (Exact name of registrant as specified in its charter) Delaware 25-0790410 (State or other jurisdict ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Mueller Industries manufactures copper, brass, aluminum, and plastic products for HVAC, refrigeration, and plumbing, operating globally across three segments - The company is a leading manufacturer of copper, brass, aluminum, and plastic products with operations located throughout the United States and in Canada, Mexico, Great Britain, South Korea, the Middle East, and China[13](index=13&type=chunk) - Business operations are organized into three reportable segments: Piping Systems, Industrial Metals, and Climate[14](index=14&type=chunk) - Sales are heavily dependent on the construction and remodeling markets, as a significant portion of products are used in single and multi-family housing and commercial buildings[16](index=16&type=chunk) [Piping Systems Segment](index=4&type=section&id=Piping%20Systems%20Segment) This segment manufactures and distributes copper and PEX piping products globally to wholesalers, retailers, and OEMs, facing competition from industry leaders - The Piping Systems segment manufactures and distributes copper tube, fittings, line sets, and PEX plumbing systems, with operations in the U.S., Canada, Europe, South Korea, and the Middle East[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - The segment sells to wholesalers in plumbing and refrigeration, distributors for manufactured housing, building material retailers, and air-conditioning OEMs[22](index=22&type=chunk) - Key competitors in the U.S. copper tube market include Cerro Flow Products LLC and Cambridge-Lee Industries LLC, while the copper fittings market includes competitors like Elkhart Products Company and NIBCO, Inc[23](index=23&type=chunk) [Industrial Metals Segment](index=6&type=section&id=Industrial%20Metals%20Segment) This segment produces brass rod, forgings, and specialty tubing for domestic OEMs in industrial, construction, HVAC, and plumbing markets - This segment manufactures a broad range of products including brass rod, aluminum/brass forgings, and specialty copper/aluminum tube[24](index=24&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk) - Products are sold primarily to domestic OEMs in the industrial, construction, HVAC, plumbing, and refrigeration markets[29](index=29&type=chunk) - The primary competitor in the brass rod market is Wieland Chase, LLC, a subsidiary of Wieland-Werke AG[29](index=29&type=chunk) [Climate Segment](index=6&type=section&id=Climate%20Segment) The Climate segment manufactures HVAC and refrigeration products, including valves, fittings, and duct systems, primarily for U.S. wholesalers and OEMs - The Climate segment manufactures refrigeration products, high-pressure components, heat exchangers, and insulated HVAC flexible duct systems[30](index=30&type=chunk)[32](index=32&type=chunk) - The segment's customer base consists predominantly of wholesalers and OEMs in the U.S. HVAC and refrigeration markets[34](index=34&type=chunk) - The company has expanded this segment through acquisitions, including ATCO in 2018 and H&C Flex in 2021[33](index=33&type=chunk) [Human Capital and Other Factors](index=8&type=section&id=Human%20Capital%20and%20Other%20Factors) The company employs 5,137 people, sources raw materials like copper, is not patent-dependent, and experiences seasonal sales moderation in Q4 - As of December 31, 2022, the company employed approximately **5,137 people**, with **1,635** represented by various unions[35](index=35&type=chunk) - Primary raw materials, mainly **copper**, are obtained through short-term supply contracts and the open market, with historically adequate supplies[38](index=38&type=chunk)[39](index=39&type=chunk) - Net sales typically moderate in the fourth quarter due to seasonal construction markets and customer shutdowns for holidays and year-end maintenance[45](index=45&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces economic, competitive, and operational risks, including commodity volatility, construction market dependence, and regulatory compliance - Economic risks include the impact of volatile raw material and energy costs, which could adversely affect operating margins if not passed on to customers[48](index=48&type=chunk) - The business is sensitive to economic conditions in the housing and commercial construction industries, as well as inflation and changes in interest rates[49](index=49&type=chunk)[50](index=50&type=chunk) - Competitive risks stem from imports, substitute products, and new technologies, which could reduce demand and profitability[54](index=54&type=chunk) - Operational risks include potential work stoppages from union contract negotiations, business interruptions, and difficulties integrating acquired businesses[57](index=57&type=chunk)[59](index=59&type=chunk) - The company is subject to litigation and regulatory risks, including environmental, health, and safety laws that could result in significant compliance costs and liabilities[55](index=55&type=chunk)[56](index=56&type=chunk) [Properties](index=14&type=section&id=Item%202.%20Properties) The company owns most of its satisfactory operating facilities, with a detailed list provided across its three segments - The company owns the majority of its principal operating facilities, which are considered to be in satisfactory condition[65](index=65&type=chunk) - A detailed table lists major facilities for the Piping Systems, Industrial Metals, and Climate segments, covering locations in the U.S., Canada, Mexico, England, South Korea, and Bahrain[66](index=66&type=chunk)[67](index=67&type=chunk) [Legal Proceedings](index=15&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal claims, with material details referenced in Note 14 of the financial statements - The company is involved in litigation from claims arising in the ordinary course of business[68](index=68&type=chunk) - Details on material pending legal proceedings are incorporated by reference from Note 14 of the financial statements[69](index=69&type=chunk) Part II [Market for Common Equity, Stockholder Matters, and Issuer Purchases](index=16&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE, with increased dividends, an active share repurchase program, and performance compared to market indices Quarterly Dividend per Share | Year | Dividend per Share | | :--- | :--- | | 2021 | $0.13 | | 2022 | $0.25 | - The Board of Directors has authorized the repurchase of up to **20 million shares** of common stock, with the program extended until July 2023. As of December 31, 2022, approximately **7.2 million shares** have been repurchased under this authorization[75](index=75&type=chunk) Company Stock Performance vs. Indices (2017-2022) | Year | Mueller Industries, Inc. | Dow Jones U.S. Total Return Index | Dow Jones U.S. Building Materials & Fixtures Index | | :--- | :--- | :--- | :--- | | 2017 | 100.00 | 100.00 | 100.00 | | 2018 | 67.04 | 95.03 | 79.24 | | 2019 | 92.16 | 124.62 | 115.95 | | 2020 | 102.81 | 150.05 | 143.87 | | 2021 | 174.23 | 189.81 | 215.35 | | 2022 | 178.57 | 152.98 | 156.35 | [Management's Discussion and Analysis (MD&A)](index=19&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A analyzes 2022 financial performance, highlighting a 5.7% net sales increase, 33.7% operating income growth, strong liquidity, and risk management strategies [Results of Operations](index=30&type=section&id=Results%20of%20Operations) 2022 saw consolidated net sales increase 5.7% to **$4.0 billion**, operating income surge 33.7%, and net income grow 40.5%, driven by improved gross margins Consolidated Operating Results (2020-2022) | (In thousands) | 2022 | 2021 | 2020 | % Change (22 vs 21) | % Change (21 vs 20) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $3,982,455 | $3,769,345 | $2,398,043 | 5.7% | 57.2% | | Operating income | $877,149 | $655,845 | $245,838 | 33.7% | 166.8% | | Net income | $658,316 | $468,520 | $139,493 | 40.5% | 235.9% | Components of Net Sales Change (2022 vs. 2021) | Component | % Change | | :--- | :--- | | Net selling price | 6.1% | | Unit sales volume | (5.9)% | | Acquisitions | 1.9% | | Dispositions | (2.2)% | | Other | 5.8% | | **Total** | **5.7%** | - Gross margin as a percentage of sales increased to **28.1%** in 2022 from **22.0%** in 2021, driven by strong demand, inflation, and supply constraints which led to higher selling prices and improved margins[134](index=134&type=chunk) - The effective tax rate for 2022 was **25.5%**, slightly lower than the **25.9%** rate in 2021[144](index=144&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated **$723.9 million** in operating cash flow, maintained strong liquidity with a 4.4:1 current ratio, and kept total debt low at **$2.0 million** Selected Cash Flow and Liquidity Data (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $723,943 | $311,701 | $245,073 | | Net cash (used in) provided by investing activities | ($242,003) | $29,073 | ($125,622) | | Net cash used in financing activities | ($102,655) | ($376,722) | ($92,264) | | Capital Expenditures | $37,639 | $31,833 | $43,885 | - The company's current ratio was **4.4 to 1** as of December 31, 2022, indicating a strong liquidity position[176](index=176&type=chunk) - As of December 31, 2022, total debt was only **$2.0 million**, representing **0.1%** of total capitalization, and the company was in compliance with all debt covenants[186](index=186&type=chunk) [Market Risks and Critical Accounting Policies](index=40&type=section&id=Market%20Risks%20and%20Critical%20Accounting%20Policies) The company manages market risks from raw material, interest rate, and foreign currency fluctuations using derivatives, and applies critical accounting policies requiring judgment - The company is exposed to market risks from changes in raw material costs, interest rates, and foreign currency exchange rates, and uses financial instruments to mitigate these risks[189](index=189&type=chunk) - At December 31, 2022, the company held open futures contracts to purchase approximately **$91.8 million** of copper related to fixed-price sales orders[191](index=191&type=chunk) - Critical accounting policies include inventory valuation reserves, annual goodwill impairment testing, pension benefit plan assumptions, estimation of environmental reserves, and income tax provisions[197](index=197&type=chunk)[198](index=198&type=chunk)[201](index=201&type=chunk) [Financial Statements and Supplementary Data](index=19&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including income, balance sheets, cash flows, and equity, with accompanying notes and auditor's report Consolidated Statements of Income (in thousands, except per share data) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net sales | $3,982,455 | $3,769,345 | $2,398,043 | | Operating income | $877,149 | $655,845 | $245,838 | | Net income attributable to Mueller | $658,316 | $468,520 | $139,493 | | Diluted earnings per share | $11.64 | $8.25 | $2.47 | Consolidated Balance Sheets (in thousands) | Metric | Dec 31, 2022 | Dec 25, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $461,018 | $87,924 | | Total current assets | $1,534,653 | $1,019,003 | | Total Assets | $2,242,399 | $1,728,936 | | Total current liabilities | $348,295 | $382,439 | | Total Liabilities | $428,435 | $471,973 | | Total Mueller Industries, Inc. stockholders' equity | $1,790,914 | $1,222,118 | Consolidated Statements of Cash Flows (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $723,943 | $311,701 | $245,073 | | Net cash (used in) provided by investing activities | ($242,003) | $29,073 | ($125,622) | | Net cash used in financing activities | ($102,655) | ($376,722) | ($92,264) | [Controls and Procedures](index=20&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[87](index=87&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2022, based on the COSO framework[89](index=89&type=chunk) - Ernst & Young LLP, the independent auditor, issued an unqualified attestation report on the company's internal control over financial reporting[90](index=90&type=chunk)[94](index=94&type=chunk) Part III [Directors, Executive Officers, Compensation, and Governance](index=22&type=section&id=Items%2010-14) Information on directors, executive officers, compensation, and governance is incorporated by reference from the 2023 Proxy Statement, with equity compensation plan details provided - Most information for Part III (Items 10, 11, 12, 13, and 14) is incorporated by reference from the company's 2023 Proxy Statement[104](index=104&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2022) | Plan Category | Securities to be issued upon exercise (thousands) | Weighted average exercise price | Securities remaining available for future issuance (thousands) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 442 | $29.20 | 1,204 | | Total | 442 | $29.20 | 1,204 | Part IV [Exhibits, Financial Statement Schedules](index=24&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including corporate governance documents and certifications - This item lists all financial statements, schedules, and exhibits filed with the Form 10-K[112](index=112&type=chunk) - Exhibits include corporate governance documents, descriptions of securities, material contracts, and certifications by the CEO and CFO[113](index=113&type=chunk)[114](index=114&type=chunk)