SPRINGFIELD, Mo., March 19, 2021 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2020.

PAUL MUELLER COMPANY
TWELVE-MONTH REPORT
(In thousands)
CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended								Twelve Months Ended
			December 31								December 31
			2020				2019				2020				2019
Net Sales			$	54,126			$	55,266			$	201,116			$	197,177
Cost of Sales				37,908				38,552				140,313				142,435
Gross Profit			$	16,218			$	16,714			$	60,803			$	54,742
Selling, General and Administrative Expense				10,999				11,971				44,155				45,672
Goodwill Impairment Expense				15,397				-				15,397				-
Operating Income (Loss)			$	(10,178	)		$	4,743			$	1,251			$	9,070
Interest Expense				(173	)			(19	)			(992	)			(827	)
Other Income (Expense)				339				(15	)			1,208				351
Income (Loss) before Provision (Benefit) for Income Taxes			$	(10,012	)		$	4,709			$	1,467			$	8,594
Provision for Income Taxes				1,263				1,144				4,024				2,005
Net Income (Loss)			$	(11,275	)		$	3,565			$	(2,557	)		$	6,589
Earnings (Loss) per Common Share ––	Basic			($9.43	)			$2.98				($2.14	)			$5.51
	Diluted			($9.43	)			$2.98				($2.14	)			$5.51

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		Twelve Months Ended
		December 31
		2020				2019
Net Income (Loss)		$	(2,557	)		$	6,589
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation Adjustment		3,419				(589		)
Change in Pension Liability		(2,730		)		(1,204		)
Comprehensive Income (Loss)		$	(1,868	)		$	4,796
CONSOLIDATED BALANCE SHEETS
		December 31				December 31
		2020				2019
Cash and Short-Term Investments		$	22,943			$	1,072
Accounts Receivable		20,462				28,509
Inventories		17,926				20,552
Current Net Investments in Sales-Type Leases		3				47
Other Current Assets		1,771				3,763
Current Assets		$	63,105			$	53,943
Net Property, Plant, and Equipment		46,570				47,406
Right of Use Assets		2,448				1,421
Other Assets		8,732				21,355
Long-Term Net Investments in Sales-Type Leases		83				769
Total Assets		$	120,938			$	124,894
Accounts Payable		$	11,316			$	10,534
Current Maturities and Short-Term debt		2,115				6,208
Current Lease Liabilities		519				485
Other Current Liabilities		24,656				27,021
Current Liabilities		$	38,606			$	44,248
Long-Term Debt		18,440				15,334
Long-Term Pension Liabilities		30,047				30,395
Other Long-Term Liabilities		2,226				1,566
Lease Liabilities		1,075				936
Total Liabilities		$	90,394			$	92,479
Shareholders' Investment		30,544				32,415
Total Liabilities and Shareholders' Investment		$	120,938			$	124,894

 

SELECTED FINANCIAL DATA
		December 31			December 31
		2020			2019
Book Value per Common Share		$	25.54		$	27.11
Total Shares Outstanding		1,195,747			1,195,866
Backlog		$	61,563		$	79,791

 

CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
		Common Stock			Paid-in Surplus			Retained Earnings				Treasury Stock				Accumulated Other Comprehensive Income (Loss)				Total
Balance, December 31, 2019		$	1,508		$	9,708		$	68,484			$	(6,341	)		$	(40,944	)		$	32,415
Add (Deduct):
Net Income (Loss)								(2,557		)										(2,557		)
Other Comprehensive Income, Net of Tax																689				689
Treasury Stock Acquisition												(3		)						(3		)
Balance, December 31, 2020		$	1,508		$	9,708		$	65,927			$	(6,344	)		$	(40,255	)		$	30,544

CONSOLIDATED STATEMENT OF CASH FLOWS
			Twelve Months Ended December 31, 2020				Twelve Months Ended December 31, 2019
Operating Activities:
Net Income (Loss)		$	(2,557	)		$	6,589
Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Pension Contributions (Greater) Less than Expense			(3,078	)			(2,890	)
Bad Debt Expense			168				398
Depreciation & Amortization			7,083				6,248
Deferred Tax Expense			533				979
Loss (Gain) on Sales of Equipment			5				(36	)
Goodwill Impairment Expense			15,397				-
Interest on Lease Liability for Financing			(18	)			(17	)
Change in Assets and Liabilities
Dec (Inc) in Accts and Notes Receivable			7,879				(1,100	)
Dec (Inc) in Cost in Excess of Estimated Earnings and Billings			1,198				(985	)
Dec in Inventories			2,626				6,126
Dec (Inc) in Prepayments			165				(644	)
Dec (Inc) in Net Investment in Sales-Type Leases			730				(816	)
(Inc) Dec in Other Assets			(450	)			52
(Inc) in Deferred Taxes			(866	)			(382	)
Inc (Dec) in Accounts Payable			782				(642	)
Inc (Dec) in Accrued Expenses			5,138				(1,006	)
(Dec) in Advanced Billings			(1,241	)			(6,327	)
(Dec) Inc in Billings in Excess of Costs and Estimated Earnings			(6,262	)			8,223
Inc in Lease Liability for Operating			296				1,189
Inc in Lease Liability for Financing			487				770
Principal payments on Lease Liability for Operating			(323	)			(374	)
Inc in Long Term Liabilities			660				206
Net Cash Provided by Operating Activities		$	28,352			$	15,561
Investing Activities
Intangibles			-				(118	)
Proceeds from Sales of Equipment			14				49
Additions to Property, Plant, and Equipment			(7,253	)			(4,340	)
Net Cash (Required) for Investing Activities		$	(7,239	)		$	(4,409	)
Financing Activities
Principal payments on Lease Liability for Financing			(269	)			(147	)
(Repayment) of Short-Term Borrowings, Net			(4,150	)			(4,088	)
Proceeds (Repayment) of Long-Term Debt			2,230				(5,893	)
Treasury Stock Acquisitions			(3	)			(9	)
Net Cash (Required) for Financing Activities		$	(2,192	)		$	(10,137	)
Effect of Exchange Rate Changes			2,950				(658	)
Net Increase in Cash and Cash Equivalents		$	21,871			$	357
Cash and Cash Equivalents at Beginning of Year			1,072				715
Cash and Cash Equivalents at End of Year		$	22,943			$	1,072

 

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		2020			2019
Domestic	$41,909			$40,310
Mueller BV	$12,306			$15,043
Eliminations	($89		)	($87		)
Net Revenue	$54,126			$55,266

 

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

Twelve Months Ended December 31
Revenue		2020			2019
Domestic	$154,888			$144,500
Mueller BV	$47,213			$54,436
Eliminations	($985		)	($1,759		)
Net Revenue	$201,116			$197,177

 

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		2020			2019
Domestic	$3,959			$3,319
Mueller BV	($15,189		)	$192
Eliminations	($45		)	$54
Net Income	($11,275		)	$3,565

 

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		2020			2019
Domestic	$12,184			$7,412
Mueller BV	($14,758		)	($805		)
Eliminations	$17			($18		)
Net Income	($2,557		)	$6,589

B. Please refer to the President’s letter in the 2020 Annual Report for relevant management discussion and analysis including the $15.4 million impairment of goodwill related to the 2008 acquisition of Mueller BV.

C. The pre-tax results for the three months ended December 31, 2020, were favorably affected by a $57,000 decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2020, were favorably affected by a $0.3 million decrease in the LIFO reserve. 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.

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 1.12 for December, 2019 and 1.23 for December, 2020, 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 2020 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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