SPRINGFIELD, Mo., April 07, 2020 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2019.

PAUL MUELLER COMPANY
TWELVE-MONTH REPORT
(In thousands)
CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended								Twelve Months Ended
	December 31								December 31
	2019				2018				2019				2018
Net Sales	$	55,266			$	45,618			$	197,177			$	201,210
Cost of Sales		38,552				33,942				142,435				150,260
Gross Profit	$	16,714			$	11,676			$	54,742			$	50,950
Selling, General and Administrative Expense		11,971				11,965				45,672				47,137
Operating Income (Loss)	$	4,743			$	(289	)		$	9,070			$	3,813
Interest Expense		(19	)			(187	)			(827	)			(920	)
Other Income (Expense)		(15	)			(1	)			351				218
Income (Loss) before Provision (Benefit) for Income Taxes	$	4,709			$	(477	)		$	8,594			$	3,111
Provision (Benefit) for Income Taxes		1,144				(337	)			2,005				472
Net Income (Loss)	$	3,565			$	(140	)		$	6,589			$	2,639
Earnings (Loss) per Common Share  ––
Basic	$	2.98			$	(0.12)			$	5.51			$	2.21
Diluted	$	2.98			$	(0.12)			$	5.51			$	2.21

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	Twelve Months Ended
	December 31
		2019				2018
Net Income	$	6,589			$	2,639
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation Adjustment		(589	)			(1,659	)
Change in Pension Liability		(1,204	)			(1,330	)
Comprehensive Income (Loss)	$	4,796			$	(350	)
CONSOLIDATED BALANCE SHEETS
	December 31				December 31
		2019				2018
Cash and Short-Term Investments	$	1,072			$	715
Accounts Receivable		28,509				27,533
Inventories		20,552				26,678
Current Net investments in Sales-Type leases		47				-
Other Current Assets		3,763				2,066
Current Assets	$	53,943			$	56,992
Net Property, Plant, and Equipment		47,406				50,699
Right of Use Assets		1,421				-
Other Assets		21,355				22,497
Long-Term Net Investments in Sales-Type Leases		769				-
Total Assets	$	124,894			$	130,188
Accounts Payable	$	10,534			$	11,177
Current Maturities and Short-Term debt		6,208				10,332
Current Lease Liabilities		485				-
Other Current Liabilities		27,021				26,131
Current Liabilities	$	44,248			$	47,640
Long-Term Debt		15,334				21,478
Long-Term Pension Liabilities		30,395				32,081
Other Long-Term Liabilities		1,566				1,361
Lease Liabilities		936				-
Total Liabilities		92,479				102,560
Shareholders' Investment		32,415				27,628
Total Liabilities and Shareholders' Investment	$	124,894			$	130,188

SELECTED FINANCIAL DATA
	December 31			December 31
	2019			2018
Book Value per Common Share	$	27.11		$	23.10
Total Shares Outstanding		1,195,866			1,196,187
Backlog	$	79,791		$	97,354

CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
		Common Stock			Paid-in Surplus			Retained Earnings			Treasury Stock				Accumulated Other Comprehensive Income (Loss)				Total
Balance, December 31, 2018		$	1,508		$	9,708		$	61,895		$	(6,332	)		$	(39,151	)		$	27,628
Add (Deduct):
Net Income								6,589												6,589
Other Comprehensive Income, Net of Tax																(1,793	)			(1,793	)
Treasury Stock Acquisition												(9	)							(9	)
Balance, December 31, 2019		$	1,508		$	9,708		$	68,484		$	(6,341	)		$	(40,944	)		$	32,415

CONSOLIDATED STATEMENT OF CASH FLOWS
	Twelve Months Ended December 31, 2019				Twelve Months Ended December 31, 2018
Operating Activities:
Net Income	$	6,589			$	2,639
Adjustment to Reconcile Net Income to Net Cash Provided (Required) by Operating Activities:
Pension Contributions (Greater) Less than Expense		(2,890	)			(4,015	)
Bad Debt Expense		398				161
Depreciation & Amortization		6,248				5,794
Deferred Tax Expense		979				1,182
(Gain) Loss on Sales of Equipment		(36	)			(164	)
Interest on Lease Liability for Financing		(17	)			-
Change in Assets and Liabilities
(Inc) Dec in Accts and Notes Receivable		(1,100	)			(4,856	)
(Inc) Dec in Cost in Excess of Estimated Earnings and Billings		(985	)			(182	)
Dec (Inc) in Inventories		6,126				4,402
(Inc) Dec in Prepayments		(644	)			2,000
(Inc) Dec in Net Investment in Sales-type leases		(816	)			-
Dec (Inc) in Other Assets		52				(57	)
(Inc) Dec in Deferred Taxes		(382	)			(422	)
(Dec) Inc in Accounts Payable		(642	)			(3,065	)
(Dec) Inc in Other Accrued Expenses		(1,006	)			(1,805	)
(Dec) Inc in Advanced Billings		(6,327	)			(2,500	)
Inc (Dec) in Billings in Excess of Costs and Estimated Earnings		8,223				(1,529	)
Inc (Dec) in Lease Liability for Operating		1,189				-
Inc (Dec) in Lease Liability for Financing		770				-
Inc (Dec) In Long Term Liabilities		206				(1,997	)
Net Cash Provided (Required) by Operating Activities	$	15,935			$	(4,414	)
Investing Activities
Intangibles		(118	)			-
Proceeds from Sales of Equipment		49				173
Additions to Property, Plant, and Equipment		(4,340	)			(4,838	)
Net Cash (Required) for Investing Activities	$	(4,409	)		$	(4,665	)
Financing Activities
(Repayment) of principal portion of lease liability for operating		(374	)			-
(Repayment) of principal portion of lease liability for financing		(147	)			-
(Repayment) Proceeds of Short-Term Borrowings, Net		(4,088	)			6,313
(Repayment) Proceeds of Long-Term Debt		(5,893	)			(922	)
Treasury Stock Acquisitions		(9	)			(3	)
Net Cash (Required) Provided for Financing Activities	$	(10,511	)		$	5,388
Effect of Exchange Rate Changes		(658	)			(2,165	)
Net Increase (Decrease) in Cash and Cash Equivalents	$	357			$	(5,856	)
Cash and Cash Equivalents at Beginning of Year		715				6,571
Cash and Cash Equivalents at End of Year	$	1,072			$	715

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		2019			2018
Domestic	$	40,310		$	31,188
Mueller BV	$	15,043		$	14,730
Eliminations	$	(87	)	$	(300	)
Net Revenue	$	55,266		$	45,618

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

Twelve Months Ended December 31
Revenue		2019			2018
Domestic	$	144,500		$	137,090
Mueller BV	$	54,436		$	65,341
Eliminations	$	(1,759	)	$	(1,221	)
Net Revenue	$	197,177		$	201,210

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

Three Months Ended December 31
Net Income		2019		2018
Domestic	$	3,319	$	995
Mueller BV	$	192	$	(1,150	)
Eliminations	$	54	$	15
Net Income	$	3,565	$	(140	)

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

Twelve Months Ended December 31
Net Income		2019			2018
Domestic	$	7,412		$	4,686
Mueller BV	$	(805	)	$	(2,083	)
Eliminations	$	(18	)	$	36
Net Income	$	6,589		$	2,639

B. Please refer to the President’s letter in the 2019 Annual Report for relevant management discussion and analysis.

C. The pre-tax results for the three months ended December 31, 2019, were favorably affected by a $0.5 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2019, were favorably affected by a $44,000 decrease in the LIFO reserve.  The pre-tax results for the three months ended December 31, 2018, were favorably affected by a $0.1 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2018, were unfavorably affected by a $2.1 million increase in the LIFO reserve.

D. 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 1.14 for December, 2018 and 1.12 for December, 2019, 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 2019 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

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