# EDGAR Filing Document

**Accession Number:** 0000089439
**File Stem:** 0000089439-23-000004
**Filing Date:** 2023-2
**Character Count:** 19986
**Document Hash:** 718fe362d773c31e3baa2efc21c5aeb7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000089439-23-000004.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0000089439-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230207

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MUELLER INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000089439
- **STANDARD INDUSTRIAL CLASSIFICATION:** ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
- **IRS NUMBER:** 250790410
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-06770
- **FILM NUMBER:** 23595627

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 100
- **STREET 2:** 150 SCHILLING BOULEVARD
- **CITY:** COLLIERVILLE
- **STATE:** TN
- **ZIP:** 38017
- **BUSINESS PHONE:** (901)753-3200

**MAIL ADDRESS:**
- **STREET 1:** SUITE 100
- **STREET 2:** 150 SCHILLING BOULEVARD
- **CITY:** COLLIERVILLE
- **STATE:** TN
- **ZIP:** 38017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SHARON STEEL CORP
- **DATE OF NAME CHANGE:** 19910103

?xml version="1.0" ? mli-20230207

**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 7, 2023

![mli-20230207_g1.jpg](mli-20230207_g1.jpg)

**<u>MUELLER INDUSTRIES INC.</u>**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **<u>Delaware</u>** | **<u>1-6770</u>** | **<u>25-0790410</u>** |
| (State or other jurisdiction | (Commission File | (IRS Employer |
| of incorporation) | Number) | Identification No.) |

---

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| | | |
|:---|:---|:---|
| **<u>150 Schilling Boulevard</u>** | **<u>Suite 100</u>** | |
| **<u>Collierville</u>** | **<u>Tennessee</u>** | **<u>38017</u>** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

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| | | |
|:---|:---|:---|
| Registrant's telephone number, including area code: | **<u>(901)</u>** | **<u>753-3200</u>** |

---

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| | |
|:---|:---|
| Registrant's Former Name or Address, if changed since last report: | **<u>N/A</u>** |

---

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))

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of each class</u> <u>Trading Symbol</u> <u>Name of exchange on which registered</u> <br> Common Stock MLI NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new of revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

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On February 7, 2023, the Registrant issued a press release announcing earnings for the quarter and year ended December 31, 2022. A copy of the press release announcing the fourth quarter and fiscal 2022 earnings is attached as Exhibit 99.1.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d) Exhibits

 99.1 Press release dated February 7, 2023 reporting fourth quarter and fiscal 2022 earnings.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | MUELLER INDUSTRIES, INC. | MUELLER INDUSTRIES, INC. |
| | By: | /s/ Anthony J. Steinriede |
| | Name: | Anthony J. Steinriede |
| | Title: | Vice President - Corporate Controller |
| Date: February 7, 2023 |  |  |

---

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**Exhibit Index**

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| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | <u>[Press release dated, February](exhibit991q42022earningsre.htm)[7](exhibit991q42022earningsre.htm)[, 20](exhibit991q42022earningsre.htm)[23](exhibit991q42022earningsre.htm)</u> |

---

## Ex-99

![muellerlogoa03.jpg](muellerlogoa03.jpg)

**Mueller Industries, Inc. Reports Fiscal 2022 Fourth Quarter and Full Year Results**

COLLIERVILLE, Tenn., February 7, 2023 -- Mueller Industries, Inc. (NYSE: MLI) today reported 2022 fourth quarter and full year results.

*For the Fourth Quarter 2022 versus Fourth Quarter 2021:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income: &nbsp;&nbsp;&nbsp;&nbsp;$190.4 million vs $172.1 million, up 10.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$877.6 million vs $956.4 million, down 8.2%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$138.9 million vs $125.6 million, up 10.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted EPS:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2.46 vs $2.21, up 11.3%.

*For the Full Year 2022 versus the Full Year 2021:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income:&nbsp;&nbsp;&nbsp;&nbsp;$877.1 million vs $655.8 million, up 33.7%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$4.0 billion vs $3.8 billion, up 5.7%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$658.3 million vs $468.5 million, up 40.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted EPS:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$11.64 vs $8.25, up 41.1%.

Fourth Quarter Financial and Operating Commentary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The average price of copper was $3.66 per pound, a 16.4 percent decline as compared with the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales declined $78.8 million, reflecting the impact of lower copper prices as well as an 11 percent reduction in unit volumes across our mill businesses, the largest of which emanated from our international operations. These reductions were offset by a 22 percent increase in net sales from our higher value added businesses, particularly in our climate segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company recognized a $13.1 million expense related to its complete withdrawal from a multi-employer pension plan, thereby eliminating a significant long term financial risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company generated $207 million of cash from operations in the fourth quarter, $723.9 million for the year and cash and short-term investments totaled $678.9 million at year end. The Company's current ratio is 4 to 1.

***Operating Highlights and Outlook:***

Greg Christopher, CEO, commented, "We concluded 2022 by delivering the best fourth quarter of operating and net income in the Company's history. Not only have we reinvested to be a low cost producer, but we have also pursued acquisitions that both strengthen our market leading positions in core products and expand our portfolio into higher value added content. In tandem, these strategic actions have improved our gross margins to levels we believe are more appropriate for the industries we serve.

Economic activity as a whole began to temper during the second half of 2022 amidst rising interest rates, inflationary pressures, and global instability. Beyond that, the destocking of inventories and normalization of supply chains exerted downward impacts.

------

Notwithstanding, we head into 2023 with an optimistic outlook. Although we anticipate some decline in U.S. residential building markets as compared with 2022, we also believe that household formations will remain underserved by the housing supply. As such, demand levels should remain at healthy levels relative to industry capacity. At the same time, we maintain continued backlogs in other critical markets including commercial construction, refrigeration, HVAC and transportation. Internationally, we believe that following a difficult 2022, market conditions may be bottoming out, thereby positioning our businesses for a rebound.

This was another record year of financial performance for our Company, but we still see many opportunities ahead of us. Importantly, our strong performance has enabled us to build a war chest to fund continued investments to improve our low cost position and support our bold plans for growth."

*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.

CONTACT <br>Jeffrey A. Martin <br>(901) 753-3226

------

**MUELLER INDUSTRIES, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Quarter Ended | For the Quarter Ended | For the Year Ended | For the Year Ended |
| *(In thousands, except per share data)* | December 31, 2022 | December 25, 2021 | December 31, 2022 | December 25, 2021 |
| Net sales | $877581 | $956357 | $3982455 | $3769345 |
| Cost of goods sold | 620800 | 726594 | 2864862 | 2938989 |
| Depreciation and amortization | 10738 | 11633 | 43731 | 45390 |
| Selling, general, and administrative expense | 55630 | 48729 | 203086 | 184052 |
| Gain on sale of businesses |  | (3001) |  | (57760) |
| Gain on sale of assets, net |  |  | (6373) |  |
| Impairment charges |  | 261 |  | 2829 |
| Operating income | 190413 | 172141 | 877149 | 655845 |
| Interest expense | (144) | (258) | (810) | (7709) |
| Environmental expense | 349 | (982) | (1298) | (5053) |
| Redemption premium |  |  |  | (5674) |
| Pension plan termination expense | (13100) |  | (13100) |  |
| Other income, net | 8430 | 947 | 14090 | 3730 |
| Income before income taxes | 185948 | 171848 | 876031 | 641139 |
| Income tax expense | (49798) | (44862) | (223322) | (165858) |
| Income (loss) from unconsolidated affiliates, net of foreign tax | 4085 | (288) | 10111 | (157) |
| Consolidated net income | 140235 | 126698 | 662820 | 475124 |
| Net income attributable to noncontrolling interests | (1329) | (1097) | (4504) | (6604) |
| Net income attributable to Mueller Industries, Inc. | $138906 | $125601 | $658316 | $468520 |
| Weighted average shares for basic earnings per share | 55642 | 56104 | 55779 | 56011 |
| Effect of dilutive stock-based awards | 717 | 796 | 776 | 787 |
| Adjusted weighted average shares for diluted earnings per share | 56359 | 56900 | 56555 | 56798 |
| Basic earnings per share | $2.50 | $2.24 | $11.80 | $8.36 |
| Diluted earnings per share | $2.46 | $2.21 | $11.64 | $8.25 |
| Dividends per share | $0.25 | $0.13 | $1.00 | $0.52 |

---

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**MUELLER INDUSTRIES, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED**

**(Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | For the Quarter Ended | For the Quarter Ended | For the Year Ended | For the Year Ended |
| *(In thousands)* | December 31, 2022 | December 25, 2021 | December 31, 2022 | December 25, 2021 |
| Summary Segment Data: |  |  |  |  |
| Net sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Piping Systems Segment | $567039 | $652466 | $2730084 | $2600030 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Metals Segment | 146322 | 176226 | 644689 | 703363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Climate Segment | 170551 | 130428 | 650307 | 495414 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elimination of intersegment sales | (6331) | (2763) | (42625) | (29462) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net sales | $877581 | $956357 | $3982455 | $3769345 |
| Operating income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Piping Systems Segment | $131056 | $142482 | $671062 | $486287 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Metals Segment | 22960 | 27077 | 82464 | 85475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Climate Segment | 53158 | 21757 | 188067 | 85536 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unallocated expenses | (16761) | (19175) | (64444) | (1453) |
| Operating income | $190413 | $172141 | $877149 | $655845 |

---

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**MUELLER INDUSTRIES, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

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| | | |
|:---|:---|:---|
| *(In thousands)* | December 31, 2022 | December 25, 2021 |
| **ASSETS** |  |  |
| Cash and cash equivalents | $461018 | $87924 |
| Short-term investments | 217863 |  |
| Accounts receivable, net | 380352 | 471859 |
| Inventories | 448919 | 430244 |
| Other current assets | 26501 | 28976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1534653 | 1019003 |
| Property, plant, and equipment, net | 379950 | 385562 |
| Operating lease right-of-use assets | 22892 | 23510 |
| Other assets | 304904 | 300861 |
|  | $2242399 | $1728936 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current portion of debt | $811 | $811 |
| Accounts payable | 128000 | 180793 |
| Current portion of operating lease liabilities | 4942 | 6015 |
| Other current liabilities | 214542 | 194820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 348295 | 382439 |
| Long-term debt | 1218 | 1064 |
| Pension and postretirement liabilities | 13055 | 17533 |
| Environmental reserves | 16380 | 17678 |
| Deferred income taxes | 16258 | 14347 |
| Noncurrent operating lease liabilities | 16880 | 17099 |
| Other noncurrent liabilities | 16349 | 21813 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 428435 | 471973 |
| Total Mueller Industries, Inc. stockholders' equity | 1790914 | 1222118 |
| Noncontrolling interests | 23050 | 34845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1813964 | 1256963 |
|  | $2242399 | $1728936 |

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**MUELLER INDUSTRIES, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(Unaudited)**

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| | | |
|:---|:---|:---|
| | For the Year Ended | For the Year Ended |
| *(In thousands)* | December 31, 2022 | December 25, 2021 |
| **Cash flows from operating activities** |  |  |
| Consolidated net income | $662820 | $475124 |
| Reconciliation of consolidated net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 44088 | 45655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 17801 | 9822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts receivable | 323 | 1216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Income) loss from unconsolidated affiliates | (10111) | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of businesses |  | (57760) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposals of assets | (6373) | (769) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption premium |  | 5674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance proceeds - noncapital related | 1646 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment charges |  | 2829 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax (benefit) expense | (3880) | 7413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of effects of businesses acquired and sold: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | 82713 | (124708) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (24189) | (119514) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (8971) | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | (26633) | 73755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (7564) | (5467) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 2273 | (2645) |
| Net cash provided by operating activities | 723943 | 311701 |
| **Cash flows from investing activities** |  |  |
| Proceeds from sale of assets, net of cash transferred | 7850 | 2302 |
| Purchase of short-term investments | (217863) |  |
| Proceeds from sale of business, net of cash sold |  | 81884 |
| Acquisition of businesses, net of cash acquired |  | (30206) |
| Capital expenditures | (37639) | (31833) |
| Insurance proceeds - capital related | 3354 |  |
| Dividends from unconsolidated affiliates | 2295 |  |
| Payment received for (issuance of) notes receivable |  | 8539 |
| Investments in unconsolidated affiliates |  | (1613) |
| Net cash (used in) provided by investing activities | (242003) | 29073 |

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**MUELLER INDUSTRIES, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | For the Year Ended | For the Year Ended |
| *(In thousands)* | December 31, 2022 | December 25, 2021 |
| **Cash flows from financing activities** |  |  |
| Dividends paid to stockholders of Mueller Industries, Inc. | (55787) | (29137) |
| Dividends paid to noncontrolling interests | (7248) | (9722) |
| Issuance of long-term debt |  | 595000 |
| Repayments of long-term debt | (204) | (920610) |
| Issuance (repayment) of debt by consolidated joint ventures, net | 67 | (5113) |
| Repurchase of common stock | (38054) | (4864) |
| Payment of contingent consideration |  | (1250) |
| Net cash (used) received to settle stock-based awards | (1429) | 85 |
| Debt issuance costs |  | (1111) |
| Net cash used in financing activities | (102655) | (376722) |
| Effect of exchange rate changes on cash | (4365) | (1052) |
| Increase (decrease) in cash, cash equivalents, and restricted cash | 374920 | (37000) |
| Cash, cash equivalents, and restricted cash at the beginning of the year | 90376 | 127376 |
| Cash, cash equivalents, and restricted cash at the end of the year | $465296 | $90376 |

---