SPRINGFIELD, Mo., April 27, 2018 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC:MUEL) today announced earnings for the quarter ended March 31, 2018.

PAUL MUELLER COMPANY
THREE-MONTH REPORT
Unaudited
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)						Three Months Ended								Twelve Months Ended
						March 31								March 31
							2018				2017				2018				2017
Net Sales						$	46,078			$	37,611			$	176,424			$	164,471
Cost of Sales							33,802				27,017				125,772				121,463
Gross Profit						$	12,276			$	10,594			$	50,652			$	43,008
Selling, General and Administrative Expense							11,422				10,483				44,049				47,506
Operating Income (Loss)						$	854			$	111			$	6,603			$	(4,498	)
Interest Expense							(346	)			(50	)			(626	)			(308	)
Other Income (Expense)							48				(90	)			(2,045	)			167
Income (Loss) before Provision (Benefit) for Income Taxes						$	556			$	(29	)		$	3,932			$	(4,639	)
Provision (Benefit) for Income Taxes							174				114				5,733				(1,304	)
Net Income (Loss)						$	382			$	(143	)		$	(1,801	)		$	(3,335	)
Earnings (Loss) per Common Share ––				Basic		$	0.32			($0.12		)		($1.51		)		($2.78		)
				Diluted		$	0.32			($0.12		)		($1.51		)		($2.78		)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
														Three Months Ended
														March 31
															2018				2017
			Net Income (Loss)											$	382			$	(143	)
			Other Comprehensive Income, Net of Tax:
			Foreign Currency Translation Adjustment												727				556
			Amortization of De-Designated Hedges												-				3
			Comprehensive Income											$	1,109			$	416
CONSOLIDATED BALANCE SHEETS
														March 31				December 31
															2018				2017
			Cash and Short-Term Investments											$	2,266			$	6,571
			Accounts Receivable												27,424				22,680
			Inventories												34,943				31,080
			Other Current Assets												3,047				2,519
			Current Assets											$	67,680			$	62,850
			Net Property, Plant, and Equipment												57,725				51,586
			Other Assets												25,772				25,458
			Total Assets											$	151,177			$	139,894
			Accounts Payable											$	16,337			$	14,242
			Current Maturities and Short-Term debt												9,509				4,021
			Other Current Liabilities												33,996				31,966
			Current Liabilities											$	59,842			$	50,229
			Long-Term Debt												28,131				23,562
			Long-Term Pension Liabilities												30,708				34,766
			Other Long-Term Liabilities												3,408				3,356
			Total Liabilities											$	122,089			$	111,913
			Shareholders' Investment												29,088				27,981
			Total Liabilities and Shareholders' Investment											$	151,177			$	139,894
SELECTED FINANCIAL DATA
																		March 31				December 31
																			2018				2017
				Book Value per Common Share														$	24.32			$	23.39
				Total Shares Outstanding															1,196,216				1,196,261
				Backlog														$	93,951			$	94,043
CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
																						Accumulated Other Comprehensive Income (Loss)
						Common Stock				Paid-in Surplus				Retained Earnings				Treasury Stock
																										Total
Balance, December 31, 2017						$	1,508			$	9,708			$	59,256			$	(6,329	)		$	(36,162	)		$	27,981
Add (Deduct):
	Net Income														382												382
	Other Comprehensive Income, Net of Tax																						727				727
	Treasury Stock Acquisition																		(2	)							(2	)
Balance,  March 31, 2018						$	1,508			$	9,708			$	59,638			$	(6,331	)		$	(35,435	)		$	29,088
CONSOLIDATED STATEMENT OF CASH FLOWS
																		Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
			Operating Activities:
			Net Income (Loss)															$	382			$	(143	)
			Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:
			Pension Contributions (Greater) Less than Expense																(4,058	)			27
			Bad Debt Expense (Recovery)																5				-
			Depreciation & Amortization																1,329				1,432
			(Gain) Loss on Sales of Equipment																(152	)			(12	)
			Other																-				(20	)
			Change in Assets and Liabilities
			(Inc) Dec in Accts and Notes Receivable																(4,748	)			(2,115	)
			(Inc) Dec in Cost in Excess of Estimated Earnings and Billings																(53	)			(597	)
			(Inc) Dec in Inventories																(3,865	)			(1,104	)
			(Inc) Dec in Prepayments																(474	)			(566	)
			(Inc) Dec Other Assets																(1	)			-
			Inc (Dec) in Accounts Payable																3,084				1,084
			Inc (Dec) Other Accrued Expenses																(3,859	)			2,067
			Inc (Dec) Advanced Billings																3,804				1,425
			Inc (Dec) in Billings in Excess of Costs and Estimated Earnings																1,096				1,483
			Inc (Dec) In Other Liabilities																51				17
			Net Cash (Required) Provided by Operating Activities															$	(7,459	)		$	2,978
			Investing Activities
			Proceeds from Sales of Equipment																152				80
			Additions to Property and Equipment																(7,452	)			(857	)
			Net Cash (Required) for Investing Activities															$	(7,300	)		$	(777	)
			Financing Activities
			Proceeds (Repayment) of Short-Term Borrowings, Net																5,488				(1,828	)
			Proceeds (Repayment) of Long-Term Debt																4,569				(101	)
			Treasury Stock Acquisitions																(2	)			(102	)
			Net Cash Provided (Required) for Financing Activities															$	10,055			$	(2,031	)
			Effect of Exchange Rate Changes																399				(31	)
			Net (Decrease) Increase in Cash and Cash Equivalents															$	(4,305	)		$	139
			Cash and Cash Equivalents at Beginning of Year																6,571				357
			Cash and Cash Equivalents at End of Quarter															$	2,266			$	496

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		2018			2017
Domestic	$	32,633		$	27,419
Mueller BV	$	13,608		$	10,253
Eliminations	$	(163	)	$	(61	)
Net Revenue	$	46,078		$	37,611

The chart below depicts the net revenue on a consolidating basis for the twelve months ended March 31.

Twelve Months Ended March 31
Revenue		2018			2017
Domestic	$	125,521		$	111,591
Mueller BV	$	51,516		$	53,786
Eliminations	$	(613	)	$	(906	)
Net Revenue	$	176,424		$	164,471

The chart below depicts the net income on a consolidating basis for the three months ended March 31.

Three Months Ended March 31
Net Income		2018			2017
Domestic	$	854		$	528
Mueller BV	$	(497	)	$	(727	)
Eliminations	$	25		$	56
Net Income	$	382		$	(143	)

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		2018			2017
Domestic	$	184		$	(4,076	)
Mueller BV	$	(2,121	)	$	598
Eliminations	$	136		$	143
Net Income	$	(1,801	)	$	(3,335	)

B. Revenue for the 1^st quarter of $46.1 million was up $8.5 million (22.5%) over the 1^st quarter of 2017. Revenue for the trailing 12 months of $176.4 million was up $12.0 million (7.3%) over the 12 months ending March 31, 2017. Our pharmaceutical group led the way with a quarter over quarter increase of $6.6 million as the large pharmaceutical order that was being worked on for most of 2017 began to ship.

Net income for the 1^st quarter was $0.4 million compared to a slight loss for the first quarter of 2017. The first quarter 2018 results were dampened by an increase in the LIFO reserve of $0.6 million before tax.

Net loss for the trailing twelve months was $1.8 million. These results were impacted by a pretax increase in the LIFO reserve of $1.3 million; one-time tax expense from the new tax legislation of $4.2 million; and approximately $2.0 million in non-reoccurring costs related to the consolidation in The Netherlands.

The net loss of $3.3 million for the twelve months ending March 31, 2017 was affected by a pretax impact of $0.5 increase in LIFO reserve and the $6.7 million in settlement charges from the lump sum pension payments.

C. Backlog remained nearly unchanged for the quarter and is a robust $94.0 million at March 31st. Domestic backlog has decreased by $3.1 million for the quarter to end at $67.1 million. Backlog in The Netherlands continued to grow and was up $3.6 million to $28.5 million.

D. Tax expense of approximately $4.2 million was recognized in December due to new United States federal tax legislation under the Tax Cuts and Jobs Act (TCJA) enacted in December 2017. This includes a $0.9 million transition tax expense estimate and $3.3 million tax expense due to the revaluation of the deferred tax asset due to a decrease in the tax rate. In certain cases, the Company has recorded for 2017 a reasonable estimate of the effects of the TCJA, and accordingly such amounts are provisional. Final adjustments, if necessary, will be determined in 2018 and recorded as a measurement period adjustment through 2018 tax expense.

E. Production started in the new facility in Groenlo as scheduled on April 9^th.  Total debt on the new building is $25.9 million as of March 31^st.

F. The pre-tax results for the three months ended March 31, 2018, were unfavorably affected by a $559,000 increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2018, were unfavorably affected by a $1,256,000 increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2017, were unfavorably affected by a $500,000 increase in the LIFO reserve.

G. The Company completed the lump sum pension payments to participants who elected to take the settlement. These payments, paid from the assets of the plans, were available for participants who were no longer employed by the company as of May 6, 2016, but who had not yet begun receiving their benefit. The eligible participants represented about a quarter of the obligations of the plans and just over 50% of those eligible elected the settlement. The payments, totaling $13.8 million to 218 participants, were made on or about September 26, 2016. The results for twelve months ended December 31, 2016 contained a negative noncash effect on the pre-tax earnings of the Company of $6.7 million ($4.2 million net of tax).

H. 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 March, 2017; 1.20 for December, 2017 and 1.23 for March, 2018, 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 on page 29 of the Company’s 2017 Annual Report, 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 2017 annual report, available at www.paulmueller.com.

Press Contact: Jay Holden | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9422
jholden@paulmueller.com | http://paulmueller.com

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