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Paul Mueller Company Announces Its Fourth Quarter Earnings of 2021

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

SPRINGFIELD, Mo., March 11, 2022 (GLOBE NEWSWIRE) — Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2021.

 PAUL MUELLER COMPANY 
 TWELVE-MONTH REPORT 
 (In thousands) 
                
 CONSOLIDATED STATEMENTS OF INCOME 
                
     Three Months Ended  Twelve Months Ended 
     December 31  December 31 
     2021  2020  2021  2020 
                
 Net Sales  $ 46,993 $ 54,126 $ 184,613 $ 201,116 
 Cost of Sales   37,461  37,908  136,167  140,313 
 Gross Profit  $ 9,532 $ 16,218 $ 48,446 $ 60,803 
 Selling, General and Administrative Expense  9,756  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) 
 PPP Loan Forgiveness   –  –  1,884  – 
 Other Income   2,780  339  2,844  1,208 
 Income (Loss) before Provision (Benefit) for Income Taxes  $ 2,458 $ (10,012) $ 8,548 $ 1,467 
 Provision for Income Taxes   496  1,263  1,547  4,024 
 Net Income (Loss)  $ 1,962 $ (11,275) $ 7,001 $ (2,557) 
                
 Earnings (Loss) per Common Share ––  Basic $1.81 $(9.43) $6.44 $(2.14) 
    Diluted $1.81 $(9.43) $6.44 $(2.14) 
                

 

            
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
            
        Twelve Months Ended 
        December 31 
        2021 2020 
            
 Net Income (Loss)     $7,001 $(2,557) 
 Other Comprehensive Income (Loss), Net of Tax:       
 Foreign Currency Translation Adjustment   (1,889) 3,419 
 Change in Pension Liability     6,206 (2,730) 
 Comprehensive Income (Loss)   $11,318 $(1,868) 
            
 CONSOLIDATED BALANCE SHEETS 
            
        December 31 December 31 
        2021 2020 
            
 Cash and Short-Term Investments     $11,281 $22,943 
 Accounts Receivable     25,774 20,462 
 Inventories      26,454 17,926 
 Current Net Investments in Sales-Type Leases   23 3 
 Other Current Assets     1,814 1,771 
 Current Assets $65,346 $63,105 
            
 Net Property, Plant, and Equipment 41,250 46,570 
 Right of Use Assets     2,526 2,448 
 Other Assets 7,003 8,732 
 Long-Term Net Investments in Sales-Type Leases   164 83 
 Total Assets $116,289 $120,938 
            
 Accounts Payable     $14,470 $11,316 
 Current Maturities and Short-Term debt     1,330 2,115 
 Current Lease Liabilities     483 519 
 Other Current Liabilities     27,691 24,656 
 Current Liabilities $43,974 $38,606 
            
 Long-Term Debt 14,241 18,440  
 Long-Term Pension Liabilities     18,036 30,047 
 Other Long-Term Liabilities 1,848 2,226 
 Lease Liabilities      897 1,075 
 Total Liabilities     $78,996 $90,394 
 Shareholders’ Investment 37,293 30,544 
 Total Liabilities and Shareholders’ Investment $116,289 $120,938 
            

 

 

  
 SELECTED FINANCIAL DATA 
                   
             December 31 December 31   
             2021 2020   
     Book Value per Common Share     $34.32 $25.54   
     Total Shares Outstanding     1,086,661 1,195,747   
     Backlog       $78,357 $61,563   
                   
  CONSOLIDATED STATEMENT OF SHAREHOLDERS’ INVESTMENT  
               Accumulated Other Comprehensive Income (Loss)   
                  
       Common Stock Paid-in Surplus Retained Earnings Treasury Stock    
            Total 
 Balance, December 31, 2020  $1,508 $9,708 $65,927 $(6,344) $(40,255) $30,544 
 Add (Deduct):               
  Net Income      7,001     7,001 
  Other Comprehensive Income, Net of Tax         4,317 4,317 
  Dividends, $.15 per Common Share     (164)     (164) 
  Treasury Stock Acquisition        (4,405)   (4,405) 
 Balance, December 31, 2021  $1,508 $9,708 $72,764 $(10,749) $(35,938) $37,293 
                   
                   
  CONSOLIDATED STATEMENT OF CASH FLOWS 
             Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020   
                 
                 
                 
    Operating Activities:         
              
      Net Income (Loss)   $7,001 $(2,557)   
              
      Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:       
    Pension Contributions (Greater) Less than Expense   (5,805) (3,078)   
    Bad Debt (Recovery ) Expense   (528) 168   
    Depreciation & Amortization   6,547 7,083   
    Deferred Tax Expense       1,792 533   
    (Gain) Loss on Sales of Equipment   (57) 5   
    (Gain) Recognized on Sale of Subsidiary     (3,208) –   
    Goodwill Impairment Expense       – 15,397   
    Interest on Lease Liability for Financing   (15) (18)   
    PPP Loan Forgiveness       (1,884) –   
      Change in Assets and Liabilities         
    (Inc) Dec in Accts and Notes Receivable   (1,116) 7,879   
    (Inc) Dec in Cost in Excess of Estimated Earnings and Billings   (2,380) 1,198   
    (Inc) Dec in Inventories   (8,578) 2,626   
    Dec in Prepayments   3 165   
    (Inc) Dec in Net Investment in Sales-Type Leases     (101) 730   
    (Inc) in Other Assets   (1,801) (450)   
    Dec (Inc) in Deferred Taxes       1,968 (866)   
    Inc in Accounts Payable   3,748 782   
    (Dec) Inc in Accrued Income Tax       (591) 505   
    (Dec) Inc in Accrued Expenses   (5,487) 4,633   
    Inc (Dec) in Advanced Billings   11,498 (1,241)   
    (Dec) in Billings in Excess of Costs and Estimated Earnings   (672) (6,262)   
    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   
              
    Investing Activities         
    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)   
              
    Effect of Exchange Rate Changes    679 2,950   
              
    Net (Decrease) Increase in Cash and Cash Equivalents   $(11,662) $21,871   
              
    Cash and Cash Equivalents at Beginning of Year   22,943 1,072   
              
    Cash and Cash Equivalents at End of Year   $11,281 $22,943   
                   

 

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

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