SPRINGFIELD, Mo., Oct. 25, 2024 (GLOBE NEWSWIRE) — Paul Mueller Company (OTC Pink: MUEL) (the “Company”) announces its third-quarter earnings of 2024.
| PAUL MUELLER COMPANY |
| NINE-MONTH REPORT |
| Unaudited |
| (In thousands) |
| | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME |
| | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended | | Twelve Months Ended |
| | September 30 | | September 30 | | September 30 |
| | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | |
| | | | | | | | | | | | |
| Net Sales | $ | 62,085 | | | $ | 57,088 | | | $ | 178,111 | | | $ | 173,370 | | | $ | 233,897 | | | $ | 232,372 | |
| Cost of Sales | | 41,028 | | | | 38,948 | | | | 121,459 | | | | 119,881 | | | | 160,203 | | | | 169,963 | |
| Gross Profit | $ | 21,057 | | | $ | 18,140 | | | $ | 56,652 | | | $ | 53,489 | | | $ | 73,694 | | | $ | 62,409 | |
| Selling, General and Administrative Expense | | 12,238 | | | | 11,245 | | | | 34,013 | | | | 36,546 | | | | 85,736 | | | | 41,225 | |
| Operating Income (Loss) | $ | 8,819 | | | $ | 6,895 | | | $ | 22,639 | | | $ | 16,943 | | | $ | (12,042 | ) | | $ | 21,184 | |
| Interest Expense 1 | | (83 | ) | | | (82 | ) | | | (256 | ) | | | (259 | ) | | | (347 | ) | | | (346 | ) |
| Other Income 1 | | 840 | | | | 477 | | | | 1,885 | | | | 1,810 | | | | 2,741 | | | | 2,749 | |
| Income (Loss) before Provision (Benefit) for Income Taxes | $ | 9,576 | | | $ | 7,290 | | | $ | 24,268 | | | $ | 18,494 | | | $ | (9,648 | ) | | $ | 23,587 | |
| Provision (Benefit) for Income Taxes | | 2,297 | | | | 1,786 | | | | 5,736 | | | | 4,510 | | | | (4,306 | ) | | | 5,703 | |
| Net Income (Loss) | $ | 7,279 | | | $ | 5,504 | | | $ | 18,532 | | | $ | 13,984 | | | $ | (5,342 | ) | | $ | 17,884 | |
| | | | | | | | | | | | |
| Earnings (Loss) per Common Share – Basic and Diluted | $ | 7.77 | | | $ | 5.07 | | | $ | 18.79 | | | $ | 12.88 | | | $ | (5.28 | ) | | $ | 16.47 | |
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| 1. The elimination of intercompany interest was incorrect in the 2nd Quarter release causing interest income and interest expense to be overstated by the same amount, however, net income was still correct. For this financial presentation, the error was corrected as of June 30th so the three-month, nine-month and twelve-month interest income and expense would be presented correctly. |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| | | | | | |
| | | Nine Months Ended | |
| | | September 30 | |
| | | | 2024 | | | | 2023 | | |
| | | | | | |
| | Net Income | $ | 18,532 | | | $ | 13,984 | | |
| | Other Comprehensive Income (Loss), Net of Tax: | | | | |
| | Foreign Currency Translation Adjustment | | 526 | | | | (275 | ) | |
| | Comprehensive Income | $ | 19,058 | | | $ | 13,709 | | |
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| CONSOLIDATED BALANCE SHEETS |
| | | | | | |
| | | September 30 | | December 31 | |
| | | | 2024 | | | | 2023 | | |
| | | | | | |
| | Cash and Cash Equivalents 2 | $ | 16,030 | | | $ | 5,894 | | |
| | Marketable Securities 2 | | 15,070 | | | | 28,031 | | |
| | Accounts Receivable | | 31,363 | | | | 25,166 | | |
| | Inventories (FIFO) | | 45,450 | | | | 45,910 | | |
| | LIFO Reserve | | (21,461 | ) | | | (21,774 | ) | |
| | Inventories (LIFO) | | 23,989 | | | | 24,136 | | |
| | Current Net Investments in Sales-Type Leases | | 35 | | | | 27 | | |
| | Other Current Assets | | 6,262 | | | | 3,537 | | |
| | Current Assets | $ | 92,749 | | | $ | 86,791 | | |
| | | | | | |
| | Net Property, Plant, and Equipment | | 45,890 | | | | 42,011 | | |
| | Right of Use Assets | | 2,271 | | | | 2,421 | | |
| | Other Assets | | 2,409 | | | | 2,590 | | |
| | Long-Term Net Investments in Sales-Type Leases | | 604 | | | | 456 | | |
| | Total Assets | $ | 143,923 | | | $ | 134,269 | | |
| | | | | | |
| | Accounts Payable | $ | 13,003 | | | $ | 11,041 | | |
| | Current Maturities and Short-Term Debt | | 648 | | | | 640 | | |
| | Current Lease Liabilities | | 344 | | | | 402 | | |
| | Advance Billings | | 22,696 | | | | 27,383 | | |
| | Pension Liabilities | | 32 | | | | 32 | | |
| | Other Current Liabilities | | 25,989 | | | | 19,599 | | |
| | Current Liabilities | $ | 62,712 | | | $ | 59,097 | | |
| | | | | | |
| | Long-Term Debt | | 8,500 | | | | 8,880 | | |
| | Long-Term Pension Liabilities | | 209 | | | | 233 | | |
| | Other Long-Term Liabilities | | 1,677 | | | | 1,768 | | |
| | Lease Liabilities | | 759 | | | | 775 | | |
| | Total Liabilities | $ | 73,857 | | | $ | 70,753 | | |
| | Shareholders’ Investment | | 70,066 | | | | 63,516 | | |
| | Total Liabilities and Shareholders’ Investment | $ | 143,923 | | | $ | 134,269 | | |
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| | 2. Has been restated to move money market accounts out of marketable securities into cash equivalents. | | | |
| CONSOLIDATED STATEMENT OF SHAREHOLDERS’ INVESTMENT |
| | | | | | | | | | | Accumulated Other Comprehensive Income (Loss) | | |
| | | | | | | | | | | | |
| | | Common Stock | | Paid-in Surplus | | | | Treasury Stock | | | |
| | | | | Retained Earnings | | | | Total |
| Balance, December 31, 2023 | $ | 1,508 | | | $ | 9,708 | | | $ | 67,181 | | | $ | (10,787 | ) | | $ | (4,094 | ) | | $ | 63,516 | |
| Add (Deduct): | | | | | | | | | | | |
| | Net Income | | | | | | 18,532 | | | | | | | | 18,532 | |
| | Other Comprehensive Income (Loss), Net of Tax | | | | | | | | | | 526 | | | | 526 | |
| | Dividends, $.45 per Common Share | | | | | | (594 | ) | | | | | | | (594 | ) |
| | Treasury Stock Acquisition | | | | | | | | (11,910 | ) | | | | | (11,910 | ) |
| | Other | | | | | | (4 | ) | | | | | | | (4 | ) |
| Balance, September 30, 2024 | $ | 1,508 | | | $ | 9,708 | | | $ | 85,115 | | | $ | (22,697 | ) | | $ | (3,568 | ) | | $ | 70,066 | |
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| CONSOLIDATED STATEMENT OF CASH FLOWS |
| | | | Nine Months Ended
September 30, 2024 | | Nine Months Ended
September 30, 2023 | |
| | | | | |
| | Operating Activities: | | | | |
| | | | | | |
| | Net Income | $ | 18,532 | | | $ | 13,984 | | |
| | | | | | |
| | Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | | | | |
| | Pension Contributions (Greater) Less than Expense | | (25 | ) | | | (1,586 | ) | |
| | Bad Debt Expense (Recovery) | | – | | | | 112 | | |
| | Depreciation & Amortization | | 5,177 | | | | 4,718 | | |
| | (Gain) on Sales of Equipment | | (104 | ) | | | (48 | ) | |
| | (Gain) on Disposal of Equipment | | (389 | ) | | | – | | |
| | Change in Assets and Liabilities | | | | |
| | (Inc) in Accts and Notes Receivable | | (6,197 | ) | | | (3,658 | ) | |
| | (Inc) in Cost in Excess of Estimated Earnings and Billings | | – | | | | (109 | ) | |
| | Dec (Inc) in Inventories | | 738 | | | | (1,985 | ) | |
| | (Inc) in Prepayments | | (2,724 | ) | | | (456 | ) | |
| | (Inc) in Net Investment in Sales-type leases | | (353 | ) | | | (80 | ) | |
| | Dec in Other LT Assets | | 1,036 | | | | 373 | | |
| | Inc (Dec) in Accounts Payable | | 1,962 | | | | (148 | ) | |
| | (Dec) Inc in Accrued Income Tax | | (1,063 | ) | | | 3,519 | | |
| | Inc in Other Accrued Expenses | | 1,606 | | | | 5,515 | | |
| | (Dec) in Advanced Billings | | (4,686 | ) | | | (4,737 | ) | |
| | Inc(Dec) in Billings in Excess of Costs and Estimated Earnings | | 5,842 | | | | (7,073 | ) | |
| | Inc in Lease Liability for Operating | | 169 | | | | – | | |
| | Inc in Lease Liability for Financing | | – | | | | 130 | | |
| | Principal payments of Lease Liability for Operating | | (188 | ) | | | (163 | ) | |
| | (Dec) in Long Term Deferred Tax Liabilities | | (85 | ) | | | – | | |
| | (Dec) Inc in Other Long-Term Liabilities | | (119 | ) | | | 197 | | |
| | Net Cash Provided by Operating Activities | $ | 19,129 | | | $ | 8,505 | | |
| | | | | | |
| | Investing Activities | | | | |
| | Intangibles | | – | | | | (62 | ) | |
| | Purchases of Marketable Securities 2 | | (16,442 | ) | | | (23,464 | ) | |
| | Proceeds from Sales of Marketable Securities 2 | | 29,403 | | | | 18,130 | | |
| | Proceeds from Sales of Equipment | | 131 | | | | 83 | | |
| | Additions to Property, Plant, and Equipment | | (8,637 | ) | | | (4,351 | ) | |
| | Net Cash (Required) for Investing Activities | $ | 4,455 | | | $ | (9,664 | ) | |
| | | | | | |
| | Financing Activities | | | | |
| | Principal payments of Lease Liability for Financing | | (149 | ) | | | (146 | ) | |
| | (Repayment) of Short-Term Borrowings, Net | | (1,637 | ) | | | – | | |
| | Proceeds of Short-Term Borrowings, Net | | 1,637 | | | | – | | |
| | (Repayment) of Long-Term Debt | | (1,152 | ) | | | (479 | ) | |
| | Dividends Paid | | (594 | ) | | | (489 | ) | |
| | Treasury Stock Acquisitions | | (11,910 | ) | | | – | | |
| | Net Cash Provided by (Required for) Financing Activities | $ | (13,805 | ) | | $ | (1,114 | ) | |
| | | | | | |
| | Effect of Exchange Rate Changes | | 357 | | | | 290 | | |
| | | | | | |
| | Net Increase in Cash and Cash Equivalents 2 | $ | 10,136 | | | $ | (1,983 | ) | |
| | | | | | |
| | Cash and Cash Equivalents at Beginning of Year 2 | | 5,894 | | | | 3,468 | | |
| | | | | | |
| | Cash and Cash Equivalents at End of Quarter 2 | $ | 16,030 | | | $ | 1,485 | | |
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| | 2. Has been restated to move money market accounts out of marketable securities into cash equivalents. | |
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The chart below depicts the net revenue on a consolidating basis for the nine months ended September 30.
The chart below depicts the net revenue on a consolidating basis for the twelve months ended September 30.
The chart below depicts the net income (loss) on a consolidating basis for the three months ended September 30.
The chart below depicts the net income on a consolidating basis for the nine months ended September 30.
The chart below depicts the net income on a consolidating basis for the twelve months ended September 30.
| B. | September 30, 2024 backlog is $171.5 million compared to $97.4 million at September 30, 2023. The majority of this backlog is in the U.S. where the backlog is $165.3 million at September 30, 2024 compared to $90.3 million at September 30, 2023. The $75.0 million increase in U.S. backlog is primarily from the pharmaceutical divisions. In the Netherlands, the backlog is $6.9 million on September 30, 2024 versus $9.7 million on September 30, 2023. |
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| C. | Compared to last year, revenue is up $5.0 million (8.8%) on a three-month basis; up $4.7 million (2.7%) on a nine-month basis; and flat for the trailing twelve months. In the U.S., revenues show a similar pattern with increased revenue from the pharmaceutical and food and beverage divisions driving the increase. In the Netherlands business continues to improve with revenue down for the quarter but up on the 9-month and 12-month timeframes. |
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| | Net Income is up $1.8 million for three-months; $4.5 million for nine months but down $23.2 million before removing the pension settlement charges incurred in December 2023. In the Netherlands, earnings continue to improve following the business restructuring in the spring of 2023. Efficiencies achieved from the restructuring along with strategic price increases have led to the improved earnings. |
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| | We manage our business in the U.S. looking at earnings before tax (EBT) and excluding the effects of LIFO and non-reoccurring events such as the pension settlement. This non-GAAP adjusted EBT (as shown in the table on the next page) shows improved results from a strong 2023 performance in all three timeframes. This improvement comes primarily from the pharmaceutical and food and beverage divisions. |
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| D. | Due to recent record backlogs, on July 26, 2024, the Company announced a facility expansion of just over 100,000 square feet at a cost of $22 million. On August 26, 2024, the Company had a ground-breaking ceremony with the Missouri governor, Mike Parsons, and other dignitaries present. On October 16, 2024, site preparation began. Building completion date is scheduled for the end of 2025. |
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| 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 1.06 at September 2023; 1.10 at December 2023 and 1.12 for September 2024, respectively. |
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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.
