SPRINGFIELD, Mo., April 26, 2024 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended March 31, 2024.
| PAUL MUELLER COMPANY | ||||||||||||
| THREE-MONTH REPORT | ||||||||||||
| (In thousands) | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| March 31 | March 31 | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net Sales | $ | 50,356 | $ | 56,351 | $ | 223,161 | $ | 207,096 | ||||
| Cost of Sales | 34,560 | 39,554 | 153,631 | 159,979 | ||||||||
| Gross Profit | $ | 15,796 | $ | 16,797 | $ | 69,530 | $ | 47,117 | ||||
| Selling, General and Administrative Expense | 10,358 | 12,587 | 86,040 | 37,358 | ||||||||
| Operating Income (Loss) | $ | 5,438 | $ | 4,210 | $ | (16,510) | $ | 9,759 | ||||
| Interest Expense | (1,248) | (97) | (1,501) | (406) | ||||||||
| Other Income | 1,544 | 720 | 3,491 | 1,571 | ||||||||
| Income (Loss) before Provision (Benefit) for Income Taxes | $ | 5,734 | $ | 4,833 | $ | (14,520) | $ | 10,924 | ||||
| Provision (Benefit) for Income Taxes | 1,285 | 1,166 | (5,413) | 2,526 | ||||||||
| Net Income (Loss) | $ | 4,449 | $ | 3,667 | $ | (9,107) | $ | 8,398 | ||||
| Earnings (Loss) per Common Share -- | Basic and Diluted | $4.10 | $3.38 | $(8.39) | $7.74 | |||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | |||||||||||
| 2024 | 2023 | ||||||||||
| Net Income | $ | 4,449 | $ | 3,667 | |||||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||||
| Foreign Currency Translation Adjustment | (239) | 164 | |||||||||
| Comprehensive Income | $ | 4,210 | $ | 3,831 | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| March 31 | December 31 | ||||||||||
| 2024 | 2023 | ||||||||||
| Cash | $ | 5,644 | $ | 1,883 | |||||||
| Marketable Securities | 31,687 | 32,042 | |||||||||
| Accounts Receivable | 25,209 | 25,166 | |||||||||
| Inventories (FIFO) | 47,689 | 45,910 | |||||||||
| LIFO Reserve | (21,557) | (21,774) | |||||||||
| Inventories (LIFO) | 26,132 | 24,136 | |||||||||
| Current Net Investments in Sales-Type Leases | 28 | 27 | |||||||||
| Other Current Assets | 7,344 | 3,537 | |||||||||
| Current Assets | $ | 96,044 | $ | 86,791 | |||||||
| Net Property, Plant, and Equipment | 42,854 | 42,011 | |||||||||
| Right of Use Assets | 2,322 | 2,421 | |||||||||
| Other Assets | 2,372 | 2,590 | |||||||||
| Long-Term Net Investments in Sales-Type Leases | 480 | 456 | |||||||||
| Total Assets | $ | 144,072 | $ | 134,269 | |||||||
| Accounts Payable | $ | 11,993 | $ | 11,041 | |||||||
| Current Maturities and Short-Term debt | 632 | 640 | |||||||||
| Current Lease Liabilities | 364 | 402 | |||||||||
| Advance Billings | 33,434 | 27,383 | |||||||||
| Pension Liabilities | 32 | 32 | |||||||||
| Other Current Liabilities | 18,722 | 19,599 | |||||||||
| Current Liabilities | $ | 65,177 | $ | 59,097 | |||||||
| Long-Term Debt | 8,616 | 8,880 | |||||||||
| Long-Term Pension Liabilities | 225 | 233 | |||||||||
| Other Long-Term Liabilities | 1,775 | 1,768 | |||||||||
| Lease Liabilities | 722 | 775 | |||||||||
| Total Liabilities | $ | 76,515 | $ | 70,753 | |||||||
| Shareholders' Investment | 67,557 | 63,516 | |||||||||
| Total Liabilities and Shareholders' Investment | $ | 144,072 | $ | 134,269 | |||||||
| SELECTED FINANCIAL DATA | ||||||||||||
| March 31 | December 31 | |||||||||||
| 2024 | 2023 | |||||||||||
| Book Value per Common Share | $62.22 | $58.50 | ||||||||||
| Total Shares Outstanding | 1,085,711 | 1,085,711 | ||||||||||
| Backlog | $ | 95,196 | $ | 97,350 | ||||||||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | ||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Treasury Stock | |||||||||||||||||||
| Total | ||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 1,508 | $ | 9,708 | $ | 67,181 | $ | (10,787) | $ | (4,094) | $ | 63,516 | ||||||||||
| Add (Deduct): | ||||||||||||||||||||||
| Net Income | 4,449 | 4,449 | ||||||||||||||||||||
| Other Comprehensive (Loss) Net of Tax | (239) | (239) | ||||||||||||||||||||
| Dividends, $.60 per Common Share | (163) | (163) | ||||||||||||||||||||
| Other | $ | (6) | (6) | |||||||||||||||||||
| Balance, March 31, 2024 | $ | 1,508 | $ | 9,708 | $ | 71,461 | $ | (10,787) | $ | (4,333) | $ | 67,557 | ||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||
| Operating Activities: | |||||
| Net Income | $ | 4,449 | $ | 3,667 | |
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||
| Pension Contributions (Greater) Less than Expense | (8) | (409) | |||
| Bad Debt Expense | - | 15 | |||
| Depreciation & Amortization | 1,736 | 1,560 | |||
| Loss (Gain) on Disposal of Equipment | 18 | 9 | |||
| Change in Assets and Liabilities | |||||
| (Inc) in Accts and Notes Receivable | (42) | (2,634) | |||
| (Inc) in Cost in Excess of Estimated Earnings and Billings | (35) | - | |||
| (Inc) in Inventories | (1,901) | - | |||
| (Inc) in Prepayments | (3,772) | (2,937) | |||
| (Inc) in Net Investment in Sales-Type Leases | (25) | (1,122) | |||
| Dec (Inc) in Other Assets | 469 | (46) | |||
| Dec in Deferred Taxes | - | 240 | |||
| (Dec) Inc in Accounts Payable | 952 | (204) | |||
| Inc in Accrued Income Tax | 1,501 | 430 | |||
| Inc (Dec) in Accrued Expenses | (654) | 3,622 | |||
| (Dec) Inc in Advanced Billings | 6,051 | (1,088) | |||
| (Dec) in Billings in Excess of Costs and Estimated Earnings | (1,730) | (736) | |||
| Inc in Lease Liability for Operating | 24 | - | |||
| Inc in Lease Liability for Financing | - | 131 | |||
| Principal payments on Lease Liability for Operating | (41) | (65) | |||
| (Dec) in Long Term Liabilities | (12) | (58) | |||
| (Dec) in Long Term Deferred Tax Liabilities | (82) | - | |||
| Net Cash Provided by Operating Activities | $ | 6,898 | $ | 375 | |
| Investing Activities | |||||
| Intangibles | - | (62) | |||
| Proceeds from Sales of Equipment | 15 | 2 | |||
| Purchases in Marketable Securities | (12,221) | (5,676) | |||
| Proceeds from Sales of Marketable Securities | 12,575 | 8,496 | |||
| Additions to Property, Plant, and Equipment | (3,064) | (1,589) | |||
| Net Cash (Required) for Investing Activities | $ | (2,695) | $ | 1,171 | |
| Financing Activities | |||||
| Principal payments on Lease Liability for Financing | (52) | (46) | |||
| Proceeds from Short-Term Borrowings | 277 | 1,407 | |||
| (Repayment) of Short-Term Borrowings | (277) | (1,407) | |||
| (Repayment) of Long-Term Debt | (158) | (158) | |||
| Dividends paid | (163) | (163) | |||
| Net Cash (Required) for Financing Activities | $ | (373) | $ | (367) | |
| Effect of Exchange Rate Changes | (69) | 64 | |||
| Net Increase in Cash | $ | 3,761 | $ | 1,243 | |
| Cash at Beginning of Year | 1,883 | 679 | |||
| Cash at End of Quarter | $ | 5,644 | $ | 1,922 | |
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 March 31.
| Three Months Ended March 31 | ||||||
| Revenue | 2024 | 2023 | ||||
| Domestic | $ | 38,877 | $ | 45,585 | ||
| Mueller BV | $ | 11,825 | $ | 11,304 | ||
| Eliminations | $ | (346 | ) | $ | (538 | ) |
| Net Revenue | $ | 50,356 | $ | 56,351 | ||
The chart below depicts the net revenue on a consolidating basis for the twelve months ended March 31.
| Twelve Months Ended March 31 | ||||||
| Revenue | 2024 | 2023 | ||||
| Domestic | $ | 176,298 | $ | 162,662 | ||
| Mueller BV | $ | 48,231 | $ | 45,680 | ||
| Eliminations | $ | (1,368 | ) | $ | (1,246 | ) |
| Net Revenue | $ | 223,161 | $ | 207,096 | ||
The chart below depicts the net income (loss) on a consolidating basis for the three months ended March 31.
| Three Months Ended March 31 | ||||||
| Net Income | 2024 | 2023 | ||||
| Domestic | $ | 4,048 | $ | 4,450 | ||
| Mueller BV | $ | 374 | $ | (770 | ) | |
| Eliminations | $ | 27 | $ | (13 | ) | |
| Net Income | $ | 4,449 | $ | 3,667 | ||
The chart below depicts the net income on a consolidating basis for the twelve months ended March 31.
| Twelve Months Ended March 31 | ||||||
| Net Income | 2024 | 2023 | ||||
| Domestic | $ | (11,730 | ) | $ | 9,852 | |
| Mueller BV | $ | 2,621 | $ | (1,435 | ) | |
| Eliminations | $ | 2 | $ | (19 | ) | |
| Net Income (Loss) | $ | (9,107 | ) | $ | 8,398 | |
B.March 31, 2024 backlog is $95.2 million compared to $122.8 million at March 31, 2023. The majority of this backlog is in the U.S. where the backlog is $87.8 million at March 31, 2024 compared to $115.4 million at March 31, 2023. The $27.6 million reduction in U.S. backlog is from all segments but primarily from the pharmaceutical, food and beverage, and component divisions coming off of record high backlogs. In the Netherlands, the backlog is relatively flat -- $7.9 million at March 31, 2024 versus $8.2 million on March 31, 2023.
C.Revenue is down from the previous year by $6 million on a three-month basis but up $16.1 million on trailing twelve months. The lower first quarter revenue from last year is primarily from the timing of revenue recognition on the larger pharmaceutical projects and lower revenue from the components division coming off record revenue in late 2022 and early 2023. In the Netherlands, revenue is above last year by $0.5 million and $2.1 million on a three-month and twelve-month basis, respectively. The Dutch market is improving.
Net Income is up $0.8 million on a three-month and down $17.5 million on a twelve-month basis before removing the pension settlement charges. In the Netherlands, earnings are up year over year by $1.1 million for three months and $4.1 million over twelve months. One-time restructuring charges accrued in March 2023 and the subsequent efficiencies achieved from the restructuring along with a price increase taken in the first quarter of 2023 on slightly higher volumes led to the improved earnings.
We manage our business in the U.S. looking at earnings before tax (EBT) and excluding the effects of LIFO and non-reoccurring events such as the pension settlement. This non-GAAP adjusted EBT (as shown in the table below) is down $0.7 million for the three months but up $9.7 million for the trailing twelve months primarily from strong results in the pharmaceutical, food and beverage, and components divisions.
| Three Months Ended March 31 | Twelve Months Ended March 31 | ||||||||||||
| (In Thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Domestic Net Income | $ | 4,048 | $ | 4,450 | $ | (11,730 | ) | $ | 9,852 | ||||
| Income Tax Expense | $ | 1,171 | $ | 1,405 | $ | (4,991 | ) | $ | 3,020 | ||||
| Domestic EBT - GAAP | $ | 5,219 | $ | 5,855 | $ | (16,721 | ) | $ | 12,872 | ||||
| LIFO Adjustment | $ | (217 | ) | $ | (185 | ) | $ | 51 | $ | 2,577 | |||
| Pension Adjustment | $ | - | $ | - | $ | 41,774 | $ | - | |||||
| Domestic EBT - Non-GAAP | $ | 5,002 | $ | 5,670 | $ | 25,104 | $ | 15,449 | |||||
D.On March 12, 2024, the Board of Directors authorized a tender offer effective from March 15, 2024, through May 7, 2024, for up to $10 million with the option to go to $15 million of the Company's common stock at a price of $80. As of April 26, 2024, $5.88 million in shares are tendered to the Company's depository agent. On April 26, 2024, the Company announced that the limit was increased to $15 million.
E.Effective March 14, 2024, the Company amended its domestic bank borrowing facility to extend the agreement until March 31, 2025, with the following changes:
- Capacity was reduced from $15 million to $10 million.
- Interest rate spread was changed from "SOFR+10" plus 1.15% to "SOFR+10" plus 1.35%.
- Financial leverage test of trailing twelve-month Debt/EBITDA was eliminated.
F.The pre-tax results for the three months ended March 31, 2024, were favorably affected by $0.2 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended March 31, 2024, were unfavorably affected by $0.1 million increase in the LIFO reserve. The pre-tax results for the three months ended March 31, 2023, were favorably affected by $0.2 million increase in the LIFO reserve. The pre-tax results for the twelve months ended March 31, 2023 were unfavorably affected by $2.6 million increase in the LIFO reserve.
G.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 1.09 for March 2023, 1.10 for December 2023, and 1.08 for March 2024, 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.
Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
kjeffries@paulmueller.com | http://paulmueller.com
