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Paul Mueller Company Releases Its Third Quarter 2012 Earnings Report

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SPRINGFIELD, Mo., Oct. 26, 2012 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today released its third quarter report for the period ended September 30, 2012.

PAUL MUELLER COMPANY AND SUBSIDIARIES
NINE-MONTH REPORT
Unaudited
 
CONSOLIDATED SUMMARIES OF OPERATIONS
               
    Three Months Ended Nine Months Ended Twelve Months Ended
    September 30 September 30 September 30
    2012 2011 2012 2011 2012 2011
               
Net Sales  $ 46,058,000  $ 36,814,000  $ 130,696,000  $ 110,203,000  $ 174,674,000  $ 145,081,000
Cost of Sales  34,089,000  24,748,000  94,266,000  74,352,000  126,811,000  98,471,000
Gross Profit  $ 11,969,000  $ 12,066,000  $ 36,430,000  $ 35,851,000  $ 47,863,000  $ 46,610,000
Selling, General and Administrative Expense  10,688,000  11,074,000  31,412,000  34,260,000  41,077,000  45,206,000
Operating Income  $ 1,281,000  $ 992,000  $ 5,018,000  $ 1,591,000  $ 6,786,000  $ 1,404,000
Other Income (Expense)  (268,000)  (987,000)  (513,000)  (2,368,000)  570,000  (2,745,000)
Income before Provision for Income Taxes  $ 1,013,000  $ 5,000  $ 4,505,000  $ (777,000)  $ 7,356,000  $ (1,341,000)
Provision for Income Taxes  161,000  121,000  979,000  797,000  239,000  6,010,000
Net Income  $ 852,000  $ (116,000)  $ 3,526,000  $ (1,574,000)  $ 7,117,000  $ (7,351,000)
               
Earnings per Common Share –– Basic $0.70 ($0.10) $2.90 ($1.32) $5.86 ($6.15)
  Diluted $0.70 ($0.10) $2.90 ($1.32) $5.86 ($6.15)
               
 
SUMMARIZED CONSOLIDATED BALANCE SHEETS
               
        September 30 December 31    
        2012 2011    
               
  Current Assets  $ 58,889,000  $ 51,251,000    
  Net Property, Plant, and Equipment  33,823,000  36,251,000    
  Other assets  13,625,000  16,372,000    
  Total Assets  $ 106,337,000  $ 103,874,000    
               
  Current Liabilities  $ 59,133,000  $ 52,219,000    
  Long-Term Debt  9,171,000  13,066,000    
  Other Long-Term Liabilities  26,163,000  30,350,000    
  Shareholders' Investment  11,870,000  8,239,000    
  Total Liabilities and Shareholders' Investment  $ 106,337,000  $ 103,874,000    
               
  Book Value per Common Share $9.50 $6.58    
  Total Shares Outstanding  1,250,018  1,252,977    
  Backlog  $ 57,955,000  $ 51,714,000    
               
   
  NOTES
   
  1)  Domestic sales for the three months and nine months ended September 30, 2012, were $32,833,000 and $87,442,000, respectively and the net income was $499,000 and $784,000, respectively, compared to 2011 when sales were $24,026,000 and $67,164,000, respectively and the net loss was $361,000 and $3,661,000, respectively. For Mueller BV, sales for the three months and nine months ended September 30, 2012, were $13,225,000 and $43,254,000, respectively and net income was $353,000 and $2,742,000, respectively, compared to 2011 when sales were $12,788,000 and $43,040,000, respectively and net income was $245,000 and $2,087,000, respectively.
               
  2) The results for the three months, nine months, and twelve months ended September 30, 2012, were adversely affected by severance and non-compete expenses of $235,000, $872,000 and $1,057,000, respectively. The results for the three months ended September 30, 2011, were adversely affected by severance and non-compete expenses of $365,000. The results for the nine months and twelve months ended September 30, 2011, were adversely affected by severance and non-compete expenses of $1,142,000. The results for the nine months and twelve months ended September 30, 2011, were adversely affected by the accrual of $2,667,000 (a non-cash charge in May 2011) for the actuarial present value of a life annuity in accordance with the employment agreement of the former President and CEO. 
               
  3) The results for the twelve months ended September 30, 2012, included the sale of Springfield Brewing Company to Front Row Property LLC in November 2011. The selling price was $3,000,000, which included cash and a promissory note for $400,000 payable over five years. The gain on the sale of Springfield Brewing Company was $580,000.
               
  4) The results for the twelve months ended September 30, 2012, were adversely affected by an increase in the LIFO reserve of $701,000. The results for the twelve months ended September 30, 2011, were adversely affected by an increase in the LIFO reserve of $370,000.

Paul Mueller Company is a manufacturer of high quality stainless steel equipment used in over 100 countries worldwide on dairy farms and in wide varieties of industrial applications, including food, dairy, and beverage processing; pharmaceutical, biotechnological, and chemical processing; water distillation; heat transfer; heat recovery; HVAC; and process cooling.

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 32 of the Company's 2011 Annual Report.   The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.

CONTACT: Marcelino Rodriguez, Secretary & Chief Financial Officer Springfield, Missouri (417) 575-9000
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