Paul Mueller Company Announces Its Fourth Quarter Earnings of 2023

Paul Mueller Company

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