SPRINGFIELD, Mo., Oct. 30, 2015 (GLOBE NEWSWIRE) — Paul Mueller Company (OTC:MUEL) today announced earnings for the quarter ended June 30, 2015.
| PAUL MUELLER COMPANY | |||||||||||||||||||
| NINE-MONTH REPORT | |||||||||||||||||||
| Unaudited | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30 | September 30 | September 30 | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Net Sales | $ | 40,102,000 | $ | 51,320,000 | $ | 134,456,000 | $ | 150,158,000 | $ | 185,011,000 | $ | 199,911,000 | |||||||
| Cost of Sales | 27,133,000 | 39,525,000 | 94,266,000 | 109,904,000 | 131,551,000 | 143,928,000 | |||||||||||||
| Gross Profit | $ | 12,969,000 | $ | 11,795,000 | $ | 40,190,000 | $ | 40,254,000 | $ | 53,460,000 | $ | 55,983,000 | |||||||
| Selling, General and Administrative Expense | 10,295,000 | 9,988,000 | 30,324,000 | 31,334,000 | 41,606,000 | 41,903,000 | |||||||||||||
| Operating Income | $ | 2,674,000 | $ | 1,807,000 | $ | 9,866,000 | $ | 8,920,000 | $ | 11,854,000 | $ | 14,080,000 | |||||||
| Other Income (Expense) | (63,000 | ) | (173,000 | ) | (610,000 | ) | (535,000 | ) | (969,000 | ) | (752,000 | ) | |||||||
| Income before Provision for Income Taxes | $ | 2,611,000 | $ | 1,634,000 | $ | 9,256,000 | $ | 8,385,000 | $ | 10,885,000 | $ | 13,328,000 | |||||||
| Provision (Benefit) for Income Taxes | 318,000 | 333,000 | 2,330,000 | 2,494,000 | 2,973,000 | (4,402,000 | ) | ||||||||||||
| Net Income | $ | 2,293,000 | $ | 1,301,000 | $ | 6,926,000 | $ | 5,891,000 | $ | 7,912,000 | $ | 17,730,000 | |||||||
| Earnings per Common Share –– | Basic | $ | 1.85 | $ | 1.06 | $ | 5.61 | $ | 4.80 | $ | 6.41 | $ | 14.44 | ||||||
| Diluted | $ | 1.85 | $ | 1.05 | $ | 5.60 | $ | 4.77 | $ | 6.39 | $ | 14.34 | |||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||
| September 30 | |||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| Net Income | $ | 6,926,000 | $ | 5,891,000 | |||||||||||||||
| Other Comprehensive Income, Net of Tax: | |||||||||||||||||||
| Foreign Currency Translation Adjustment | (2,108,000 | ) | (2,107,000 | ) | |||||||||||||||
| Amortization of De-Designated Hedges | (1,000 | ) | 25,000 | ||||||||||||||||
| Comprehensive Income | $ | 4,817,000 | $ | 3,809,000 | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
| September 30 | December 31 | ||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| Accounts Receivable | $ | 26,709,000 | $ | 24,289,000 | |||||||||||||||
| Inventories | 34,409,000 | 26,517,000 | |||||||||||||||||
| Other Current Assets | 7,411,000 | 10,132,000 | |||||||||||||||||
| Current Assets | $ | 68,529,000 | $ | 60,938,000 | |||||||||||||||
| Net Property, Plant, and Equipment | 35,320,000 | 34,646,000 | |||||||||||||||||
| Other Assets | 23,581,000 | 24,438,000 | |||||||||||||||||
| Total Assets | $ | 127,430,000 | $ | 120,022,000 | |||||||||||||||
| Accounts Payable | $ | 13,414,000 | $ | 10,843,000 | |||||||||||||||
| Current Maturities and Short-Term debt | 16,646,000 | 23,136,000 | |||||||||||||||||
| Other Current Liabilities | 26,821,000 | 22,548,000 | |||||||||||||||||
| Current Liabilities | $ | 56,881,000 | $ | 56,527,000 | |||||||||||||||
| Long-Term Debt | 5,146,000 | 1,991,000 | |||||||||||||||||
| Long-Term Pension Liabilities | 35,384,000 | 36,004,000 | |||||||||||||||||
| Other Long-Term Liabilities | 1,055,000 | 1,361,000 | |||||||||||||||||
| Total Liabilities | 98,466,000 | 95,883,000 | |||||||||||||||||
| Shareholders’ Investment | 28,964,000 | 24,139,000 | |||||||||||||||||
| Total Liabilities and Shareholders’ Investment | $ | 127,430,000 | $ | 120,022,000 | |||||||||||||||
| SELECTED FINANCIAL DATA | |||||||||||||||||||
| September 30 | December 31 | ||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| Book Value per Common Share | $ | 23.41 | $ | 19.51 | |||||||||||||||
| Total Shares Outstanding | 1,237,220 | 1,237,379 | |||||||||||||||||
| Backlog | $ | 54,955,000 | $ | 53,953,000 | |||||||||||||||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS’ INVESTMENT | |||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) |
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| Common Stock | Paid-in Surplus | Retained Earnings |
Treasury Stock | ||||||||||||||||
| Total | |||||||||||||||||||
| Balance, December 31, 2014 | $ | 1,508,000 | $ | 9,695,000 | $ | 55,259,000 | $ | (5,109,000 | ) | $ | (37,214,000 | ) | $ | 24,139,000 | |||||
| Add (Deduct): | |||||||||||||||||||
| Net Income | 6,926,000 | 6,926,000 | |||||||||||||||||
| Other Comprehensive Income, Net of Tax | (2,109,000 | ) | (2,109,000 | ) | |||||||||||||||
| Treasury Stock Acquisition | (5,000 | ) | (5,000 | ) | |||||||||||||||
| Deferred Compensation | 13,000 | 13,000 | |||||||||||||||||
| Balance, September 30, 2015 | $ | 1,508,000 | $ | 9,708,000 | $ | 62,185,000 | $ | (5,114,000 | ) | $ | (39,323,000 | ) | $ | 28,964,000 | |||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||
| Nine Months Ended September 30, 2015 |
Nine Months Ended September 30, 2014 |
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| Operating Activities: | |||||||||||||||||||
| Net Income | $ | 6,926,000 | $ | 5,891,000 | |||||||||||||||
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||||||||||
| Pension Contributions (Greater) Less than Expense | (621,000 | ) | (3,432,000 | ) | |||||||||||||||
| Bad Debt Expense (Recovery) | 36,000 | (46,000 | ) | ||||||||||||||||
| Depreciation & Amortization | 4,094,000 | 4,284,000 | |||||||||||||||||
| Deferred Tax (Benefit) Expense | (596,000 | ) | 16,000 | ||||||||||||||||
| (Gain) Loss on Sales of Equipment | 48,000 | (15,000 | ) | ||||||||||||||||
| Other | (65,000 | ) | 50,000 | ||||||||||||||||
| Change in Assets and Liabilities | |||||||||||||||||||
| (Inc) Dec in Accts and Notes Receivable | (3,335,000 | ) | (1,577,000 | ) | |||||||||||||||
| (Inc) Dec in Cost in Excess of Estimated Earnings and Billings | (1,000 | ) | (188,000 | ) | |||||||||||||||
| (Inc) Dec in Inventories | (8,827,000 | ) | (2,683,000 | ) | |||||||||||||||
| (Inc) Dec in Prepayments | 1,844,000 | (2,101,000 | ) | ||||||||||||||||
| (Inc) Dec Other Assets | (1,691,000 | ) | 1,290,000 | ||||||||||||||||
| Inc (Dec) in Accounts Payable | 4,285,000 | 4,983,000 | |||||||||||||||||
| Inc (Dec) Other Accrued Expenses | (2,736,000 | ) | 1,594,000 | ||||||||||||||||
| Inc (Dec) Advanced Billings | 6,091,000 | 1,205,000 | |||||||||||||||||
| Inc (Dec) in Billings in Excess of Costs and Estimated Earnings | 241,000 | (1,957,000 | ) | ||||||||||||||||
| Inc (Dec) In Other Liabilities | (176,000 | ) | (11,000 | ) | |||||||||||||||
| Net Cash Provided by Operating Activities | $ | 5,517,000 | $ | 7,303,000 | |||||||||||||||
| Investing Activities | |||||||||||||||||||
| Proceeds from Sales of Equipment | 48,000 | 39,000 | |||||||||||||||||
| Additions to Property and Equipment | (6,483,000 | ) | (3,459,000 | ) | |||||||||||||||
| Net Cash Required for Investing Activities | $ | (6,435,000 | ) | $ | (3,420,000 | ) | |||||||||||||
| Financing Activities | |||||||||||||||||||
| Proceeds (Repayment) of Short-Term Borrowings, Net | (5,444,000 | ) | 147,000 | ||||||||||||||||
| Proceeds (Repayment) of Long-Term Debt | 5,526,000 | (3,829,000 | ) | ||||||||||||||||
| Treasury Stock Acquisitions | (5,000 | ) | (8,000 | ) | |||||||||||||||
| Net Cash Required for Financing Activities | $ | 77,000 | $ | (3,690,000 | ) | ||||||||||||||
| Effect of Exchange Rate Changes | 18,000 | (102,000 | ) | ||||||||||||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | $ | (823,000 | ) | $ | 91,000 | ||||||||||||||
| Cash and Cash Equivalents at Beginning of Year | 1,402,000 | 179,000 | |||||||||||||||||
| Cash and Cash Equivalents at End of Quarter | $ | 579,000 | $ | 270,000 | |||||||||||||||
PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS
(1) Results of Operations:
A. The chart below depicts the net revenue on a consolidating basis for the three months ended September 30.
| Three Months Ended September 30 | ||||||
| Revenue | 2015 | 2014 | ||||
| Domestic | $ | 28,308,000 | $ | 35,135,000 | ||
| Mueller BV | $ | 12,201,000 | $ | 16,861,000 | ||
| Eliminations | ($ | 407,000 | ) | ($ | 676,000 | ) |
| Net Revenue | $ | 40,102,000 | $ | 51,320,000 | ||
The chart below depicts the net revenue on a consolidating basis for the nine months ended September 30.
| Nine Months Ended September 30 | ||||||
| Revenue | 2015 | 2014 | ||||
| Domestic | $ | 90,784,000 | $ | 98,874,000 | ||
| Mueller BV | $ | 45,597,000 | $ | 53,268,000 | ||
| Eliminations | ($ | 1,925,000 | ) | ($ | 1,984,000 | ) |
| Net Revenue | $ | 134,456,000 | $ | 150,158,000 | ||
The chart below depicts the net revenue on a consolidating basis for the twelve months ended September 30.
| Twelve Months Ended September 30 | ||||||
| Revenue | 2015 | 2014 | ||||
| Domestic | $ | 124,756,000 | $ | 130,341,000 | ||
| Mueller BV | $ | 63,245,000 | $ | 71,920,000 | ||
| Eliminations | ($ | 2,990,000 | ) | ($ | 2,350,000 | ) |
| Net Revenue | $ | 185,011,000 | $ | 199,911,000 | ||
The chart below depicts the net income on a consolidating basis for the three months ended September 30.
| Three Months Ended September 30 | ||||||
| Net Income | 2015 | 2014 | ||||
| Domestic | $ | 1,471,000 | $ | 268,000 | ||
| Mueller BV | $ | 825,000 | $ | 1,025,000 | ||
| Eliminations | ($ | 3,000 | ) | $ | 8,000 | |
| Net Income | $ | 2,293,000 | $ | 1,301,000 | ||
The chart below depicts the net income on a consolidating basis for the nine months ended September 30.
| Nine Months Ended September 30 | ||||||
| Net Income | 2015 | 2014 | ||||
| Domestic | $ | 3,239,000 | $ | 2,419,000 | ||
| Mueller BV | $ | 3,764,000 | $ | 3,366,000 | ||
| Eliminations | ($ | 77,000 | ) | $ | 106,000 | |
| Net Income | $ | 6,926,000 | $ | 5,891,000 | ||
The chart below depicts the net income on a consolidating basis for the twelve months ended September 30.
| Twelve Months Ended September 30 | ||||||
| Net Income | 2015 | 2014 | ||||
| Domestic | $ | 3,165,000 | $ | 12,808,000 | ||
| Mueller BV | $ | 4,933,000 | $ | 4,731,000 | ||
| Eliminations | ($ | 186,000 | ) | $ | 191,000 | |
| Net Income | $ | 7,912,000 | $ | 17,730,000 | ||
B. The results for the three and nine months ended September 30, 2014, were unfavorably affected by a $500,000 increase in LIFO reserve. The results for the twelve months ended September 30, 2014, were favorably affected by a $165,000 decrease in the LIFO reserve. The results for the three and nine months ended September 30, 2015, were favorably affected by a $500,000 decrease in the LIFO reserve. The results for the twelve months ended September 30, 2015, were unfavorably affected by a $16,000 increase in the LIFO reserve.
C. The results for the twelve months ended September 30, 2014, were favorably affected by a $10,120,000 reduction in the valuation allowance against the net deferred tax assets.
D. The results for the three, nine, and twelve months ended September 30, 2014 were adversely affected by an accident on September 14, 2014 involving the construction of a field fabricated tank. A reserve of $2,900,000 was established for the full contract value of the original order and certain insurance deductibles. While various contractual and insurance issues are still uncertain, and now subject to a lawsuit brought against Mueller Field Operations and its insurers, the $2,900,000 impact is still management’s best estimate. The Company has completed the fabrication of a new tank which is now in operation.
E. The results for the twelve months ended September 30, 2015, included an $11,531,000 non-cash, pre-tax adjustment to Other Comprehensive Income which reduced shareholders’ investment. The adjustment was caused by an increase in the pensions’ underfunded status due to market conditions and actuarial assumptions. The results for the twelve months ended September 30, 2014, included a non-cash, pre-tax adjustment to Other Comprehensive Income of $13,230,000 which increased shareholders’ investment. The adjustment was caused by a decrease in the pensions’ underfunded status due to market conditions and actuarial assumptions.
F. 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 1.27 for September, 2014, 1.22 for December, 2014 and 1.12 for September, 2015, respectively.
(2) Summary of Accounting Policies:
Principles of Consolidation and Lines of Business–The financial statements include the accounts of Paul Mueller Company and its wholly owned subsidiaries: Mueller Transportation, Inc.; Mueller Field Operations, Inc.; and Mueller B.V. and its subsidiaries (collectively “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company provides manufactured equipment and components for the food, dairy, beverage, transportation, chemical, pharmaceutical, and other industries, as well as the dairy farm market. The Company also provides field fabrication, service and repair, and construction services in these industries.
For all other relevant accounting policies, please see the annual report, which is available at www.paulmueller.com.
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 34 of the Company’s 2014 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.
CONTACT: Press Contact: Jay Holden | Paul Mueller Company | SPRINGFIELD, Mo. 65802 | (417) 575-9422 [email protected] | http://paulmueller.com