SPRINGFIELD, Mo., March 20, 2019 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2018.

  
 PAUL MUELLER COMPANY     
                   
 TWELVE-MONTH REPORT     
 (In thousands)     
                   
 CONSOLIDATED STATEMENTS OF INCOME     
                   
       Three Months Ended Twelve Months Ended     
       December 31 December 31     
       2018 2017 2018 2017     
                   
 Net Sales   $  45,618  $  42,445  $  201,210  $  167,957      
 Cost of Sales      33,942     29,762     150,260     118,987      
 Gross Profit  $  11,676  $  12,683  $  50,950  $  48,970      
 Selling, General and Administrative Expense    11,965     11,843     47,137     44,046      
 Operating Income (Loss)  $  (289) $  840  $  3,813  $  4,924      
 Interest Expense      (187)    (82)    (920)    (330)     
 Other Income (Expense)     (1)    (1,345)    218     (1,247)     
 Income (Loss) before Provision (Benefit) for Income Taxes $  (477) $  (587) $  3,111  $  3,347      
 Provision (Benefit) for Income Taxes     (337)    4,055     472     5,673      
 Net Income (Loss)  $  (140) $  (4,642) $  2,639  $  (2,326)     
                   
 Earnings (Loss) per Common Share  ––Basic ($0.12) ($3.88) $2.21  ($1.94)     
     Diluted ($0.12) ($3.88) $2.21  ($1.94)     
                   
                   
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME     
                   
           Twelve Months Ended     
           December 31     
           2018 2017     
                   
    Net Income (Loss)     $  2,639  $  (2,326)     
    Other Comprehensive Income (Loss), Net of Tax:           
    Foreign Currency Translation Adjustment      (1,659)    4,061      
    Change in Pension Liability        (1,330)    (4,121)     
    Amortization of De-Designated Hedges      -     3      
                   
    Comprehensive Income (Loss)   $  (350) $  (2,383)     
                   
                   
 CONSOLIDATED BALANCE SHEETS     
                   
           December 31 December 31     
           2018 2017     
                   
    Cash and Short-Term Investments     $  715  $  6,571      
    Accounts Receivable        27,533     22,680      
    Inventories         26,678     31,080      
    Other Current Assets        2,066     2,519      
    Current Assets $  56,992  $  62,850      
                   
    Net Property, Plant, and Equipment    50,699     51,586      
    Other Assets    22,497     25,458      
    Total Assets $  130,188  $  139,894      
                   
    Accounts Payable     $  11,177  $  14,242      
    Current Maturities and Short-Term debt        10,332     4,021      
    Other Current Liabilities        26,131     31,966      
    Current Liabilities $  47,640  $  50,229      
                   
    Long-Term Debt    21,478     23,562      
    Long-Term Pension Liabilities        32,081     34,766      
    Other Long-Term Liabilities    1,361     3,356      
    Total Liabilities        102,560     111,913      
    Shareholders' Investment    27,628     27,981      
    Total Liabilities and Shareholders' Investment $  130,188  $  139,894      
                   
                               
 SELECTED FINANCIAL DATA 
                   
             December 31 December 31   
              2018   2017    
     Book Value per Common Share     $23.10  $23.39    
     Total Shares Outstanding        1,196,187     1,196,261    
     Backlog       $  97,354  $  94,043    
                       
                   
  CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT  
               Accumulated Other Comprehensive Income (Loss)   
                  
        Common Stock  Paid-in Surplus Retained Earnings Treasury Stock    
            Total 
 Balance, December 31, 2017  $  1,508  $  9,708  $  59,256  $  (6,329) $  (36,162) $  27,981  
 Add (Deduct):                
  Net Income          2,639         2,639  
  Other Comprehensive Income, Net of Tax            (2,989)    (2,989) 
  Treasury Stock Acquisition            (3)      (3) 
 Balance,  December 31, 2018  $  1,508  $  9,708  $  61,895  $  (6,332) $  (39,151) $  27,628  
                   
                   
  CONSOLIDATED STATEMENT OF CASH FLOWS 
             Twelve Months Ended  December 31, 2018 Twelve Months Ended  December 31, 2017   
                 
                 
                 
    Operating Activities:         
              
    Net Income (Loss)   $  2,639  $  (2,326)   
              
    Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:       
    Pension Contributions (Greater) than Expense      (4,015)    (984)   
    Bad Debt Expense (Recovery)      161     28    
    Depreciation & Amortization      5,794     5,747    
    Deferred Tax (Benefit) Expense          1,182     5,389    
    (Gain) Loss on Sales of Equipment      (164)    (46)   
    Other      -     (20)   
    Change in Assets and Liabilities         
    (Inc) Dec in Accts and Notes Receivable      (4,856)    (4,405)   
    (Inc) Dec in Cost in Excess of Estimated Earnings and Billings      (182)    97    
    (Inc) Dec in Inventories      4,402     (6,953)   
    (Inc) Dec in Prepayments      2,000     (375)   
    (Inc) Dec Other Assets      (57)    23    
    (Inc) Dec in Deferred Taxes          (422)    (1,315)   
    Inc (Dec) in Accounts Payable      (3,065)    5,797    
    Inc (Dec) Other Accrued Expenses      (1,805)    5,119    
    Inc (Dec) Advanced Billings      (2,500)    5,444    
    Inc (Dec) in Billings in Excess of Costs and Estimated Earnings      (1,529)    674    
    Inc (Dec) In Long Term Liabilities      (1,997)    394    
    Net Cash (Required) Provided by Operating Activities   $  (4,414) $  12,288    
              
    Investing Activities         
    Proceeds from Sales of Equipment      173     172    
    Additions to Property, Plant, and Equipment      (4,838)    (23,750)   
    Net Cash (Required) for Investing Activities   $  (4,665) $  (23,578)   
              
    Financing Activities         
    Proceeds (Repayment) of Short-Term Borrowings, Net      6,313     (4,747)   
    (Repayment) Proceeds of Long-Term Debt      (922)    19,004    
    Treasury Stock Acquisitions      (3)    (102)   
    Net Cash Provided for Financing Activities   $  5,388  $  14,155    
              
    Effect of Exchange Rate Changes       (2,165)    3,349    
              
    Net (Decrease) Increase in Cash and Cash Equivalents   $  (5,856) $  6,214    
              
    Cash and Cash Equivalents at Beginning of Year      6,571     357    
              
    Cash and Cash Equivalents at End of Year   $  715  $  6,571    
                   


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 2018  2017   
  Domestic$31,188 $30,926   
  Mueller BV$14,730 $11,607   
  Eliminations($300)($88)  
  Net Revenue$45,618 $42,445   
 

The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.

  Twelve Months Ended December 31  
  Revenue 2018  2017   
  Domestic$137,090 $120,307   
  Mueller BV$65,341 $48,162   
  Eliminations($1,221)($512)  
  Net Revenue$201,210 $167,957   
 

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 2018  2017   
  Domestic$995 ($2,994)  
  Mueller BV($1,150)($1,748)  
  Eliminations$15 $100   
  Net Income($140)($4,642)  
 

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 2018  2017   
  Domestic$4,686 ($143)  
  Mueller BV($2,083)($2,350)  
  Eliminations$36 $167   
  Net Income$2,639 ($2,326)  
 
  1. Backlog is at $97.4 million; up slightly from the $94.0 million at the end of 2017.   Domestic backlog has increased $13.5 million to $83.6 million, primarily from a large pharmaceutical order.  Backlog in The Netherlands is at $13.8 million; down $10.2 million after shipping a large heat transfer order to India.
     
  2. Tax expense of approximately $4.2 million was recognized in December 2017 due to new United States federal tax legislation under the Tax Cuts and Jobs Act (TCJA).  This includes a $0.9 million transition tax expense estimate and $3.3 million tax expense due to the revaluation of the deferred tax asset due to a decrease in the tax rate. In certain cases, the Company recorded for 2017 a reasonable estimate of the effects of the TCJA, and accordingly such amounts are provisional.  In September 2018, tax expense was increased by $0.2 million to finalize the transition tax for 2017.  
     
  3. The pre-tax results for the three months ended December 31, 2018, were favorably affected by a $0.1 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2018, were unfavorably affected by a $2.1 million increase in the LIFO reserve.  The pre-tax results for the three months ended December 31, 2017, were unfavorably affected by a $0.2 million increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2017, were unfavorably affected by a $0.7 million increase in the LIFO reserve. 
     
  4. Mueller B.V. was in violation of certain financial covenants in its bank borrowing facility and its notes payable for the construction of the new building. On March 4, 2019, the Company loaned Mueller B.V. $3.4 million in subordinated debt from the Company’s available cash and borrowing on its domestic facility. This amount plus an additional $1.1 million of subordinated debt loaned to Mueller B.V. in November 2018 was used to pay down on the variable rate note payable on March 8, 2019.  In return, the bank waived the loan covenant violations as of December 31, 2018, and any possible future violations through March 31, 2020. In addition, Mueller B.V. agreed to reduce their capacity of the bank borrowing facility from $8.0 million to $6.8 million.
     
  5. 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 1.20 for December, 2017 and 1.14 for December, 2018, 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 on page 31 of the Company’s 2018 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.

The accounting policies related to this report and additional management discussion and analysis are provided in the 2018 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