SPRINGFIELD, Mo., March 15, 2024 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2023.
| PAUL MUELLER COMPANY | ||||||||||||||||
| TWELVE-MONTH REPORT | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net Sales | $ | 55,786 | $ | 59,002 | $ | 229,156 | $ | 191,520 | ||||||||
| Cost of Sales | 38,744 | 50,082 | 158,625 | 152,286 | ||||||||||||
| Gross Profit | $ | 17,042 | $ | 8,920 | $ | 70,531 | $ | 39,234 | ||||||||
| Selling, General and Administrative Expense | 51,723 | 4,679 | 88,269 | 35,011 | ||||||||||||
| Operating Income (Loss) | $ | (34,681 | ) | $ | 4,241 | $ | (17,738 | ) | $ | 4,223 | ||||||
| Interest Expense | (91 | ) | (87 | ) | (350 | ) | (697 | ) | ||||||||
| Other Income | 856 | 939 | 2,666 | 1,115 | ||||||||||||
| Income (Loss) before Provision (Benefit) for Income Taxes | $ | (33,916 | ) | $ | 5,093 | $ | (15,422 | ) | $ | 4,641 | ||||||
| Provision (Benefit) for Income Taxes | (10,042 | ) | 1,193 | (5,532 | ) | 1,032 | ||||||||||
| Net Income (Loss) | $ | (23,874 | ) | $ | 3,900 | $ | (9,890 | ) | $ | 3,609 | ||||||
| Earnings (Loss) per Common Share -- Basic and Diluted | ($21.99 | ) | $ | 3.59 | ($9.11 | ) | $ | 3.32 | ||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||
| Twelve Months Ended | |||||||||
| December 31 | |||||||||
| 2023 | 2022 | ||||||||
| Net Income (Loss) | $ | (9,890 | ) | $ | 3,609 | ||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||
| Foreign Currency Translation Adjustment | 677 | (1,416 | ) | ||||||
| Change in Pension Liability | 33,322 | 1,262 | |||||||
| Comprehensive Income | $ | 24,109 | $ | 3,455 | |||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| December 31 | December 31 | ||||||||
| 2023 | 2022 | ||||||||
| Cash | $ | 1,883 | $ | 679 | |||||
| Marketable Securities | 32,042 | 37,497 | |||||||
| Accounts Receivable | 25,166 | 20,580 | |||||||
| Inventories (FIFO) | 45,910 | 48,515 | |||||||
| LIFO Reserve | (21,774 | ) | (21,691 | ) | |||||
| Inventories (LIFO) | 24,136 | 26,824 | |||||||
| Current Net Investments in Sales-Type Leases | 27 | 24 | |||||||
| Other Current Assets | 3,537 | 3,156 | |||||||
| Current Assets | $ | 86,791 | $ | 88,760 | |||||
| Net Property, Plant, and Equipment | 42,011 | 41,511 | |||||||
| Right of Use Assets | 2,421 | 2,304 | |||||||
| Other Assets | 2,590 | 5,041 | |||||||
| Long-Term Net Investments in Sales-Type Leases | 456 | 312 | |||||||
| Total Assets | $ | 134,269 | $ | 137,928 | |||||
| Accounts Payable | $ | 11,041 | $ | 11,802 | |||||
| Current Maturities and Short-Term debt | 640 | 628 | |||||||
| Current Lease Liabilities | 402 | 448 | |||||||
| Advance Billings | 27,383 | 41,288 | |||||||
| Pension Liabilities | 32 | 11,558 | |||||||
| Other Current Liabilities | 19,599 | 20,062 | |||||||
| Current Liabilities | $ | 59,097 | $ | 85,786 | |||||
| Long-Term Debt | 8,880 | 9,349 | |||||||
| Long-Term Pension Liabilities | 233 | 236 | |||||||
| Other Long-Term Liabilities | 1,768 | 1,737 | |||||||
| Lease Liabilities | 775 | 762 | |||||||
| Total Liabilities | $ | 70,753 | $ | 97,870 | |||||
| Shareholders' Investment | 63,516 | 40,058 | |||||||
| Total Liabilities and Shareholders' Investment | $ | 134,269 | $ | 137,928 | |||||
| SELECTED FINANCIAL DATA | |||||||||
| December 31 | December 31 | ||||||||
| 2023 | 2022 | ||||||||
| Book Value per Common Share | $ | 58.50 | $ | 36.90 | |||||
| Total Shares Outstanding | 1,085,711 | 1,085,711 | |||||||
| Backlog | $ | 97,350 | $ | 132,829 | |||||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | ||||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance, December 31, 2022 | $ | 1,508 | $ | 9,708 | $ | 75,721 | $ | (10,787 | ) | $ | (36,092 | ) | $ | 40,058 | ||||||||||
| Add (Deduct): | ||||||||||||||||||||||||
| Net (Loss) | (9,890 | ) | (9,890 | ) | ||||||||||||||||||||
| Other Comprehensive Income, Net of Tax | 2,001 | 31,998 | 33,999 | |||||||||||||||||||||
| Dividends, $.60 per Common Share | (651 | ) | (651 | ) | ||||||||||||||||||||
| Treasury Stock Acquisition | ||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 1,508 | $ | 9,708 | $ | 67,181 | $ | (10,787 | ) | $ | (4,094 | ) | $ | 63,516 | ||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| Twelve Months Ended December 31, 2023 | Twelve Months Ended December 31, 2022 | |||||||
| Operating Activities: | ||||||||
| Net Income (Loss) | $ | (9,890 | ) | $ | 3,609 | |||
| Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||||||
| Pension Contributions (Greater) Less than Expense | 21,793 | (4,980 | ) | |||||
| Bad Debt Expense | 275 | 81 | ||||||
| Depreciation & Amortization | 6,641 | 6,156 | ||||||
| Deferred Tax (Benefit) Expense | (9,230 | ) | 831 | |||||
| Loss (Gain) on Disposal of Equipment | 796 | (1 | ) | |||||
| Change in Assets and Liabilities | ||||||||
| (Inc) Dec in Accts and Notes Receivable | (4,861 | ) | 5,113 | |||||
| Dec (Inc) in Inventories | 2,688 | (370 | ) | |||||
| Dec (Inc) in Prepayments | 394 | (1,052 | ) | |||||
| (Inc) in Net Investment in Sales-Type Leases | (147 | ) | (149 | ) | ||||
| Dec in Other Assets | 381 | 347 | ||||||
| Dec in Deferred Taxes | 11,550 | 437 | ||||||
| (Dec) in Accounts Payable | (761 | ) | (2,668 | ) | ||||
| Inc in Accrued Income Tax | 1,536 | - | ||||||
| Inc in Accrued Expenses | 5,014 | 414 | ||||||
| (Dec) Inc in Advanced Billings | (13,905 | ) | 22,693 | |||||
| (Dec) Inc in Billings in Excess of Costs and Estimated Earnings | (7,013 | ) | 10,552 | |||||
| Inc in Lease Liability for Operating | - | 421 | ||||||
| Inc in Lease Liability for Financing | 133 | 33 | ||||||
| Principal payments on Lease Liability for Operating | (85 | ) | (350 | ) | ||||
| (Dec) in Long Term Liabilities | (1,058 | ) | (111 | ) | ||||
| Net Cash Provided by Operating Activities | $ | 4,251 | $ | 41,006 | ||||
| Investing Activities | ||||||||
| Proceeds from Sales of Equipment | 171 | 26 | ||||||
| Investments in Marketable Securities | 5,455 | (29,466 | ) | |||||
| Additions to Property, Plant, and Equipment | (7,704 | ) | (9,067 | ) | ||||
| Net Cash (Required) for Investing Activities | $ | (2,078 | ) | $ | (38,507 | ) | ||
| Financing Activities | ||||||||
| Principal payments on Lease Liability for Financing | (116 | ) | (201 | ) | ||||
| (Repayment) of Short-Term Borrowings, Net | - | (642 | ) | |||||
| (Repayment) of Long-Term Debt | (634 | ) | (4,045 | ) | ||||
| Dividends paid | (651 | ) | (652 | ) | ||||
| Treasury Stock Acquisitions | - | (38 | ) | |||||
| Net Cash (Required) for Financing Activities | $ | (1,401 | ) | $ | (5,578 | ) | ||
| Effect of Exchange Rate Changes | 432 | 508 | ||||||
| Net Increase (Decrease) in Cash | $ | 1,204 | $ | (2,571 | ) | |||
| Cash at Beginning of Year | 679 | 3,250 | ||||||
| Cash at End of Year | $ | 1,883 | $ | 679 | ||||
PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS
(In thousands)
A.The chart below depicts the net revenue on a consolidating basis for the three months ended December 31.
| Three Months Ended December 31 | ||||||
| Revenue | 2023 | 2022 | ||||
| Domestic | $43,082 | $47,299 | ||||
| Mueller BV | $12,967 | $12,002 | ||||
| Eliminations | ($263 | ) | ($299 | ) | ||
| Net Revenue | $55,786 | $59,002 | ||||
The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.
| Twelve Months Ended December 31 | ||||||
| Revenue | 2023 | 2022 | ||||
| Domestic | $183,006 | $145,193 | ||||
| Mueller BV | $47,710 | $47,356 | ||||
| Eliminations | ($1,560 | ) | ($1,029 | ) | ||
| Net Revenue | $229,156 | $191,520 | ||||
The chart below depicts the net income (loss) on a consolidating basis for the three months ended December 31.
| Three Months Ended December 31 | ||||||
| Net Income | 2023 | 2022 | ||||
| Domestic | ($25,561 | ) | $3,861 | |||
| Mueller BV | $1,711 | $52 | ||||
| Eliminations | ($24 | ) | ($13 | ) | ||
| Net Income (Loss) | ($23,874 | ) | $3,900 | |||
The chart below depicts the net income (loss) on a consolidating basis for the twelve months ended December 31.
| Twelve Months Ended December 31 | ||||||
| Net Income | 2023 | 2022 | ||||
| Domestic | ($11,328 | ) | $4,517 | |||
| Mueller BV | $1,477 | ($903 | ) | |||
| Eliminations | ($39 | ) | ($5 | ) | ||
| Net Income (Loss) | ($9,890 | ) | $3,609 | |||
B.Please refer to the President's letter and footnotes in the 2023 Annual Report for relevant management discussion and analysis.
C.The Company successfully terminated two defined benefit pension plans on December 18, 2023; only a small SERP plan remains. The Company annually contributed an average of $4.7 million to these plans during 2018-2022, a use of cash that will not be required in the future. The 2023 termination of these plans required an additional cash contribution of $11.1 million and resulted in a non-cash reduction of pretax earnings of $41.8 million. This non-cash settlement charge resulted in a 2023 net loss of $9.9 million. Excluding this settlement charge, net income would have been a record of $21.0 million.
D.The pre-tax results for the three months ended December 31, 2023, were favorably affected by a $0.5 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2023, were unfavorably affected by a $83,000 increase in the LIFO reserve. The pre-tax results for the three months ended December 31, 2022, were unfavorably affected by a $0.4 million increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2022, were unfavorably affected by a $4.8 million increase in the LIFO reserve.
E.The consolidated financials are affected by the euro to dollar exchange rate when consolidating Mueller B.V., the Dutch subsidiary. The month end euro to dollar exchange rate was $1.07 for December, 2022 and $1.10 for December, 2023, respectively.
This press release contains forward-looking statements that provide current expectations of future events based on certain assumptions. All statements regarding future performance growth, conditions, or developments are forward-looking statements. Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including, but not limited to, the factors described in the Company's Annual Report under "Safe Harbor for Forward-Looking Statements", which is available at paulmueller.com. The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.
The accounting policies related to this report and additional management discussion and analysis are provided in the 2023 annual report, available at
www.paulmueller.com/investors.
Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
kjeffries@paulmueller.com | https://paulmueller.com
