Paul Mueller Company Announces Its Fourth Quarter Earnings of 2021

Rhea-AI Summary

Paul Mueller Company (OTC: MUEL) reported a net sales decline to $46,993K for Q4 2021 from $54,126K in Q4 2020. Gross profit also fell to $9,532K compared to $16,218K in the previous year. Despite these challenges, net income improved to $1,962K from a loss of $11,275K YoY. The earnings per share reached $1.81, a significant recovery from a loss of $9.43 in Q4 2020. Total assets decreased to $116,289K, with shareholders' equity rising to $37,293K. The company reported a backlog of $78,357K, up from $61,563K.

Positive

• Net income improved to $1,962K from a loss of $11,275K YoY.
• Earnings per share increased to $1.81, recovering from a loss of $9.43.
• Backlog increased to $78,357K from $61,563K, indicating future revenue potential.

Negative

• Net sales decreased to $46,993K from $54,126K YoY.
• Gross profit declined to $9,532K from $16,218K in the previous year.
• Total assets decreased to $116,289K from $120,938K.

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

FAQ

What were Paul Mueller Company's earnings for Q4 2021?

Paul Mueller Company reported earnings of $1,962K for Q4 2021, an improvement from a loss of $11,275K in Q4 2020.

How did the sales performance of Paul Mueller Company change in 2021?

Net sales fell to $46,993K in Q4 2021 from $54,126K in Q4 2020, showing a decline in sales performance.

What is the earnings per share for MUEL in the latest report?

In the latest report, Paul Mueller Company reported earnings per share of $1.81, a significant recovery from a loss of $9.43 in Q4 2020.

What changes occurred in Paul Mueller Company's asset base as of December 31, 2021?

As of December 31, 2021, Paul Mueller Company's total assets decreased to $116,289K from $120,938K in 2020.

What is the backlog reported by Paul Mueller Company?

Paul Mueller Company reported a backlog of $78,357K, an increase from $61,563K the previous year.