SPRINGFIELD, Mo., March 11, 2022 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2021.
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PAUL MUELLER COMPANY |
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TWELVE-MONTH REPORT |
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(In thousands) |
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CONSOLIDATED STATEMENTS OF INCOME |
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Three Months Ended |
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Twelve Months Ended |
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December 31 |
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December 31 |
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2021 |
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2020 |
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2021 |
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2020 |
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|
|
|
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Net Sales |
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|
$ |
46,993 |
|
$ |
54,126 |
|
$ |
184,613 |
|
$ |
201,116 |
|
|
Cost of Sales |
|
|
|
37,461 |
|
|
37,908 |
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|
136,167 |
|
|
140,313 |
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|
Gross Profit |
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|
$ |
9,532 |
|
$ |
16,218 |
|
$ |
48,446 |
|
$ |
60,803 |
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|
Selling, General and Administrative Expense |
|
|
9,756 |
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|
10,999 |
|
|
43,884 |
|
|
44,155 |
|
|
Goodwill Impairment Expense |
|
|
|
- |
|
|
15,397 |
|
|
- |
|
|
15,397 |
|
|
Operating Income (Loss) |
|
|
$ |
(224) |
|
$ |
(10,178) |
|
$ |
4,562 |
|
$ |
1,251 |
|
|
Interest Expense |
|
|
|
(98) |
|
|
(173) |
|
|
(742) |
|
|
(992) |
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|
PPP Loan Forgiveness |
|
|
|
- |
|
|
- |
|
|
1,884 |
|
|
- |
|
|
Other Income |
|
|
|
2,780 |
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|
339 |
|
|
2,844 |
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|
1,208 |
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|
Income (Loss) before Provision (Benefit) for Income Taxes |
|
$ |
2,458 |
|
$ |
(10,012) |
|
$ |
8,548 |
|
$ |
1,467 |
|
|
Provision for Income Taxes |
|
|
|
496 |
|
|
1,263 |
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|
1,547 |
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|
4,024 |
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Net Income (Loss) |
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|
$ |
1,962 |
|
$ |
(11,275) |
|
$ |
7,001 |
|
$ |
(2,557) |
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Earnings (Loss) per Common Share –– |
Basic |
|
$ |
1.81 |
|
$ |
(9.43) |
|
$ |
6.44 |
|
$ |
(2.14) |
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Diluted |
|
$ |
1.81 |
|
$ |
(9.43) |
|
$ |
6.44 |
|
$ |
(2.14) |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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Twelve Months Ended |
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December 31 |
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2021 |
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2020 |
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Net Income (Loss) |
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$ |
7,001 |
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$ |
(2,557) |
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Other Comprehensive Income (Loss), Net of Tax: |
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Foreign Currency Translation Adjustment |
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(1,889) |
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3,419 |
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Change in Pension Liability |
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6,206 |
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(2,730) |
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Comprehensive Income (Loss) |
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$ |
11,318 |
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$ |
(1,868) |
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CONSOLIDATED BALANCE SHEETS |
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December 31 |
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December 31 |
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2021 |
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2020 |
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Cash and Short-Term Investments |
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$ |
11,281 |
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$ |
22,943 |
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Accounts Receivable |
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|
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|
25,774 |
|
20,462 |
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Inventories |
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|
|
|
26,454 |
|
17,926 |
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Current Net Investments in Sales-Type Leases |
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|
|
23 |
|
3 |
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Other Current Assets |
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|
|
|
1,814 |
|
1,771 |
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Current Assets |
|
$ |
65,346 |
|
$ |
63,105 |
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|
|
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|
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|
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|
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Net Property, Plant, and Equipment |
|
41,250 |
|
46,570 |
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Right of Use Assets |
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|
|
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|
2,526 |
|
2,448 |
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Other Assets |
|
7,003 |
|
8,732 |
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|
Long-Term Net Investments in Sales-Type Leases |
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|
|
164 |
|
83 |
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Total Assets |
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$ |
116,289 |
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$ |
120,938 |
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Accounts Payable |
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$ |
14,470 |
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$ |
11,316 |
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Current Maturities and Short-Term debt |
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|
1,330 |
|
2,115 |
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Current Lease Liabilities |
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|
483 |
|
519 |
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Other Current Liabilities |
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|
27,691 |
|
24,656 |
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Current Liabilities |
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$ |
43,974 |
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$ |
38,606 |
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Long-Term Debt |
|
14,241 |
|
18,440 |
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Long-Term Pension Liabilities |
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|
18,036 |
|
30,047 |
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Other Long-Term Liabilities |
|
1,848 |
|
2,226 |
|
|
Lease Liabilities |
|
|
|
|
|
|
897 |
|
1,075 |
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Total Liabilities |
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$ |
78,996 |
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$ |
90,394 |
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Shareholders' Investment |
|
37,293 |
|
30,544 |
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Total Liabilities and Shareholders' Investment |
|
$ |
116,289 |
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$ |
120,938 |
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SELECTED FINANCIAL DATA |
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December 31 |
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December 31 |
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2021 |
|
2020 |
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Book Value per Common Share |
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$ |
34.32 |
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$ |
25.54 |
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Total Shares Outstanding |
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|
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|
1,086,661 |
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1,195,747 |
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Backlog |
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$ |
78,357 |
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$ |
61,563 |
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CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT |
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Accumulated Other Comprehensive Income (Loss) |
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Common Stock |
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Paid-in Surplus |
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Retained Earnings |
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Treasury Stock |
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Total |
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Balance, December 31, 2020 |
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|
$ |
1,508 |
|
$ |
9,708 |
|
$ |
65,927 |
|
$ |
(6,344) |
|
$ |
(40,255) |
|
$ |
30,544 |
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|
Add (Deduct): |
|
|
|
|
|
|
|
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|
|
|
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Net Income |
|
|
|
|
|
|
7,001 |
|
|
|
|
|
7,001 |
|
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Other Comprehensive Income, Net of Tax |
|
|
|
|
|
|
|
|
|
4,317 |
|
4,317 |
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Dividends, $.15 per Common Share |
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|
(164) |
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|
|
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|
(164) |
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Treasury Stock Acquisition |
|
|
|
|
|
|
|
|
(4,405) |
|
|
|
(4,405) |
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|
Balance, December 31, 2021 |
|
|
$ |
1,508 |
|
$ |
9,708 |
|
$ |
72,764 |
|
$ |
(10,749) |
|
$ |
(35,938) |
|
$ |
37,293 |
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CONSOLIDATED STATEMENT OF CASH FLOWS |
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Twelve Months Ended December 31, 2021 |
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Twelve Months Ended December 31, 2020 |
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Operating Activities: |
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Net Income (Loss) |
|
|
|
$ |
7,001 |
|
$ |
(2,557) |
|
|
|
|
|
|
|
|
|
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Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: |
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|
|
|
|
|
|
|
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Pension Contributions (Greater) Less than Expense |
|
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|
(5,805) |
|
(3,078) |
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|
|
|
|
|
|
Bad Debt (Recovery ) Expense |
|
|
|
(528) |
|
168 |
|
|
|
|
|
|
|
Depreciation & Amortization |
|
|
|
6,547 |
|
7,083 |
|
|
|
|
|
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Deferred Tax Expense |
|
|
|
|
|
|
|
1,792 |
|
533 |
|
|
|
|
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(Gain) Loss on Sales of Equipment |
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(57) |
|
5 |
|
|
|
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(Gain) Recognized on Sale of Subsidiary |
|
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|
|
|
(3,208) |
|
- |
|
|
|
|
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Goodwill Impairment Expense |
|
|
|
|
|
|
|
- |
|
15,397 |
|
|
|
|
|
|
|
Interest on Lease Liability for Financing |
|
|
|
(15) |
|
(18) |
|
|
|
|
|
|
|
PPP Loan Forgiveness |
|
|
|
|
|
|
|
(1,884) |
|
- |
|
|
|
|
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|
|
Change in Assets and Liabilities |
|
|
|
|
|
|
|
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(Inc) Dec in Accts and Notes Receivable |
|
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|
(1,116) |
|
7,879 |
|
|
|
|
|
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|
(Inc) Dec in Cost in Excess of Estimated Earnings and Billings |
|
|
|
(2,380) |
|
1,198 |
|
|
|
|
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(Inc) Dec in Inventories |
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|
(8,578) |
|
2,626 |
|
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|
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Dec in Prepayments |
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|
3 |
|
165 |
|
|
|
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(Inc) Dec in Net Investment in Sales-Type Leases |
|
|
|
|
|
(101) |
|
730 |
|
|
|
|
|
|
|
(Inc) in Other Assets |
|
|
|
(1,801) |
|
(450) |
|
|
|
|
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Dec (Inc) in Deferred Taxes |
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|
|
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|
|
|
1,968 |
|
(866) |
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Inc in Accounts Payable |
|
|
|
3,748 |
|
782 |
|
|
|
|
|
|
|
(Dec) Inc in Accrued Income Tax |
|
|
|
|
|
|
|
(591) |
|
505 |
|
|
|
|
|
|
|
(Dec) Inc in Accrued Expenses |
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|
(5,487) |
|
4,633 |
|
|
|
|
|
|
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Inc (Dec) in Advanced Billings |
|
|
|
11,498 |
|
(1,241) |
|
|
|
|
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|
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(Dec) in Billings in Excess of Costs and Estimated Earnings |
|
|
|
(672) |
|
(6,262) |
|
|
|
|
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|
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Inc in Lease Liability for Operating |
|
|
|
|
|
|
|
255 |
|
296 |
|
|
|
|
|
|
|
Inc in Lease Liability for Financing |
|
|
|
|
|
|
|
103 |
|
487 |
|
|
|
|
|
|
|
Principal payments on Lease Liability for Operating |
|
|
|
|
|
(298) |
|
(323) |
|
|
|
|
|
|
|
(Dec) Inc in Long Term Liabilities |
|
|
|
(378) |
|
660 |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
|
|
|
$ |
16 |
|
$ |
28,352 |
|
|
|
|
|
|
|
|
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Investing Activities |
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|
|
|
|
|
|
|
|
|
|
|
Intangibles |
|
|
|
|
|
|
|
|
(105) |
|
- |
|
|
|
|
|
|
|
Proceeds from Sales of Equipment |
|
|
|
81 |
|
14 |
|
|
|
|
|
|
|
Additions to Property, Plant, and Equipment |
|
|
|
(5,262) |
|
(7,253) |
|
|
|
|
|
|
|
Net Cash (Required) for Investing Activities |
|
|
|
$ |
(5,286) |
|
$ |
(7,239) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal payments on Lease Liability for Financing |
|
|
|
|
|
(259) |
|
(269) |
|
|
|
|
|
|
|
(Repayment) of Short-Term Borrowings, Net |
|
|
|
(590) |
|
(4,150) |
|
|
|
|
|
|
|
(Repayment) Proceeds of Long-Term Debt |
|
|
|
(1,653) |
|
2,230 |
|
|
|
|
|
|
|
Dividends paid |
|
|
|
|
|
|
|
(164) |
|
- |
|
|
|
|
|
|
|
Treasury Stock Acquisitions |
|
|
|
(4,405) |
|
(3) |
|
|
|
|
|
|
|
Net Cash (Required) for Financing Activities |
|
|
|
$ |
(7,071) |
|
$ |
(2,192) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Effect of Exchange Rate Changes |
|
|
|
679 |
|
2,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in Cash and Cash Equivalents |
|
|
|
$ |
(11,662) |
|
$ |
21,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Cash and Cash Equivalents at Beginning of Year |
|
|
|
22,943 |
|
1,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Year |
|
|
|
$ |
11,281 |
|
$ |
22,943 |
|
|
|
|
|
|
|
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|
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|
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 |
|
2021 |
|
|
2020 |
|
|
| Domestic |
$32,897 |
|
$41,909 |
|
|
| Mueller BV |
$14,451 |
|
$12,306 |
|
|
| Eliminations |
($355 |
) |
($89 |
) |
|
| Net Revenue |
$46,993 |
|
$54,126 |
|
|
|
|
|
|
The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.
|
|
|
|
| Twelve Months Ended December 31 |
|
| Revenue |
|
2021 |
|
|
2020 |
|
|
| Domestic |
$137,079 |
|
$154,888 |
|
|
| Mueller BV |
$48,820 |
|
$47,213 |
|
|
| Eliminations |
($1,286 |
) |
($985 |
) |
|
| Net Revenue |
$184,613 |
|
$201,116 |
|
|
|
|
|
|
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 |
|
2021 |
|
|
2020 |
|
|
| Domestic |
$961 |
|
$3,959 |
|
|
| Mueller BV |
$963 |
|
($15,189 |
) |
|
| Eliminations |
$38 |
|
($45 |
) |
|
| Net Income |
$1,962 |
|
($11,275 |
) |
|
|
|
|
|
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 |
|
2021 |
|
|
2020 |
|
|
| Domestic |
$7,328 |
|
$12,184 |
|
|
| Mueller BV |
($365 |
) |
($14,758 |
) |
|
| Eliminations |
$38 |
|
$17 |
|
|
| Net Income |
$7,001 |
|
($2,557 |
) |
|
|
|
|
|
B. Please refer to the President’s letter and footnotes in the 2021 Annual Report for relevant management discussion and analysis including the sale of Mueller Field Operations, Inc. (MFO) to MFO’s management on December 31, 2021.
C. The pre-tax results for the three months ended December 31, 2021, were unfavorably affected by a $1.20 million increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2021, were unfavorably affected by a $4.0 million increase in the LIFO reserve. 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.
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 1.23 for December, 2020 and 1.13 for December, 2021, 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 2021 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
