Paul Mueller Company Announces Its Fourth Quarter Earnings of 2023
Paul Mueller Company (MUEL) reported its earnings for the quarter ended December 31, 2023, showing a decrease in net sales compared to the previous year. The company experienced a net loss for the quarter and the twelve-month period, with significant impacts from operating expenses and income taxes. Despite challenges, the company made efforts to streamline its pension plans, resulting in a one-time charge affecting net income. The financials also reflect changes in the LIFO reserve and currency exchange rates.
Negative
Decrease in net sales compared to the previous year
Net loss reported for the quarter and twelve-month period
Significant impact from operating expenses and income taxes
One-time charge due to streamlining pension plans affecting net income
Changes in the LIFO reserve negatively impacting pre-tax results
Currency exchange rate fluctuations affecting consolidated financials
03/15/2024 - 04:05 PM
SPRINGFIELD, Mo., March 15, 2024 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended December 31, 2023.
PAUL MUELLER COMPANY TWELVE-MONTH REPORT (In thousands) CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Twelve Months Ended December 31 December 31 2023 2022 2023 2022 Net Sales $ 55,786 $ 59,002 $ 229,156 $ 191,520 Cost of Sales 38,744 50,082 158,625 152,286 Gross Profit $ 17,042 $ 8,920 $ 70,531 $ 39,234 Selling, General and Administrative Expense 51,723 4,679 88,269 35,011 Operating Income (Loss) $ (34,681 ) $ 4,241 $ (17,738 ) $ 4,223 Interest Expense (91 ) (87 ) (350 ) (697 ) Other Income 856 939 2,666 1,115 Income (Loss) before Provision (Benefit) for Income Taxes $ (33,916 ) $ 5,093 $ (15,422 ) $ 4,641 Provision (Benefit) for Income Taxes (10,042 ) 1,193 (5,532 ) 1,032 Net Income (Loss) $ (23,874 ) $ 3,900 $ (9,890 ) $ 3,609 Earnings (Loss) per Common Share –– Basic and Diluted ($21.99 ) $ 3.59 ($9.11 ) $ 3.32
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Twelve Months Ended December 31 2023 2022 Net Income (Loss) $ (9,890 ) $ 3,609 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation Adjustment 677 (1,416 ) Change in Pension Liability 33,322 1,262 Comprehensive Income $ 24,109 $ 3,455 CONSOLIDATED BALANCE SHEETS December 31 December 31 2023 2022 Cash $ 1,883 $ 679 Marketable Securities 32,042 37,497 Accounts Receivable 25,166 20,580 Inventories (FIFO) 45,910 48,515 LIFO Reserve (21,774 ) (21,691 ) Inventories (LIFO) 24,136 26,824 Current Net Investments in Sales-Type Leases 27 24 Other Current Assets 3,537 3,156 Current Assets $ 86,791 $ 88,760 Net Property, Plant, and Equipment 42,011 41,511 Right of Use Assets 2,421 2,304 Other Assets 2,590 5,041 Long-Term Net Investments in Sales-Type Leases 456 312 Total Assets $ 134,269 $ 137,928 Accounts Payable $ 11,041 $ 11,802 Current Maturities and Short-Term debt 640 628 Current Lease Liabilities 402 448 Advance Billings 27,383 41,288 Pension Liabilities 32 11,558 Other Current Liabilities 19,599 20,062 Current Liabilities $ 59,097 $ 85,786 Long-Term Debt 8,880 9,349 Long-Term Pension Liabilities 233 236 Other Long-Term Liabilities 1,768 1,737 Lease Liabilities 775 762 Total Liabilities $ 70,753 $ 97,870 Shareholders' Investment 63,516 40,058 Total Liabilities and Shareholders' Investment $ 134,269 $ 137,928
SELECTED FINANCIAL DATA December 31 December 31 2023 2022 Book Value per Common Share $ 58.50 $ 36.90 Total Shares Outstanding 1,085,711 1,085,711 Backlog $ 97,350 $ 132,829
CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT Common Stock Paid-in Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Balance, December 31, 2022 $ 1,508 $ 9,708 $ 75,721 $ (10,787 ) $ (36,092 ) $ 40,058 Add (Deduct): Net (Loss) (9,890 ) (9,890 ) Other Comprehensive Income, Net of Tax 2,001 31,998 33,999 Dividends, $.60 per Common Share (651 ) (651 ) Treasury Stock Acquisition Balance, December 31, 2023 $ 1,508 $ 9,708 $ 67,181 $ (10,787 ) $ (4,094 ) $ 63,516
CONSOLIDATED STATEMENT OF CASH FLOWS Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2022 Operating Activities: Net Income (Loss) $ (9,890 ) $ 3,609 Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: Pension Contributions (Greater) Less than Expense 21,793 (4,980 ) Bad Debt Expense 275 81 Depreciation & Amortization 6,641 6,156 Deferred Tax (Benefit) Expense (9,230 ) 831 Loss (Gain) on Disposal of Equipment 796 (1 ) Change in Assets and Liabilities (Inc) Dec in Accts and Notes Receivable (4,861 ) 5,113 Dec (Inc) in Inventories 2,688 (370 ) Dec (Inc) in Prepayments 394 (1,052 ) (Inc) in Net Investment in Sales-Type Leases (147 ) (149 ) Dec in Other Assets 381 347 Dec in Deferred Taxes 11,550 437 (Dec) in Accounts Payable (761 ) (2,668 ) Inc in Accrued Income Tax 1,536 - Inc in Accrued Expenses 5,014 414 (Dec) Inc in Advanced Billings (13,905 ) 22,693 (Dec) Inc in Billings in Excess of Costs and Estimated Earnings (7,013 ) 10,552 Inc in Lease Liability for Operating - 421 Inc in Lease Liability for Financing 133 33 Principal payments on Lease Liability for Operating (85 ) (350 ) (Dec) in Long Term Liabilities (1,058 ) (111 ) Net Cash Provided by Operating Activities $ 4,251 $ 41,006 Investing Activities Proceeds from Sales of Equipment 171 26 Investments in Marketable Securities 5,455 (29,466 ) Additions to Property, Plant, and Equipment (7,704 ) (9,067 ) Net Cash (Required) for Investing Activities $ (2,078 ) $ (38,507 ) Financing Activities Principal payments on Lease Liability for Financing (116 ) (201 ) (Repayment) of Short-Term Borrowings, Net - (642 ) (Repayment) of Long-Term Debt (634 ) (4,045 ) Dividends paid (651 ) (652 ) Treasury Stock Acquisitions - (38 ) Net Cash (Required) for Financing Activities $ (1,401 ) $ (5,578 ) Effect of Exchange Rate Changes 432 508 Net Increase (Decrease) in Cash $ 1,204 $ (2,571 ) Cash at Beginning of Year 679 3,250 Cash at End of Year $ 1,883 $ 679
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 2023 2022 Domestic $43,082 $47,299 Mueller BV $12,967 $12,002 Eliminations ($263 ) ($299 ) Net Revenue $55,786 $59,002
The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.
Twelve Months Ended December 31 Revenue 2023 2022 Domestic $183,006 $145,193 Mueller BV $47,710 $47,356 Eliminations ($1,560 ) ($1,029 ) Net Revenue $229,156 $191,520
The chart below depicts the net income (loss) on a consolidating basis for the three months ended December 31.
Three Months Ended December 31 Net Income 2023 2022 Domestic ($25,561 ) $3,861 Mueller BV $1,711 $52 Eliminations ($24 ) ($13 ) Net Income (Loss) ($23,874 ) $3,900
The chart below depicts the net income (loss) on a consolidating basis for the twelve months ended December 31.
Twelve Months Ended December 31 Net Income 2023 2022 Domestic ($11,328 ) $4,517 Mueller BV $1,477 ($903 ) Eliminations ($39 ) ($5 ) Net Income (Loss) ($9,890 ) $3,609
B. Please refer to the President’s letter and footnotes in the 2023 Annual Report for relevant management discussion and analysis.
C. The Company successfully terminated two defined benefit pension plans on December 18, 2023; only a small SERP plan remains. The Company annually contributed an average of $4.7 million to these plans during 2018–2022, a use of cash that will not be required in the future. The 2023 termination of these plans required an additional cash contribution of $11.1 million and resulted in a non-cash reduction of pretax earnings of $41.8 million . This non-cash settlement charge resulted in a 2023 net loss of $9.9 million . Excluding this settlement charge, net income would have been a record of $21.0 million .
D. The pre-tax results for the three months ended December 31, 2023, were favorably affected by a $0.5 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2023, were unfavorably affected by a $83,000 increase in the LIFO reserve. The pre-tax results for the three months ended December 31, 2022, were unfavorably affected by a $0.4 million increase in the LIFO reserve. The pre-tax results for the twelve months ended December 31, 2022, were unfavorably affected by a $4.8 million increase in the LIFO reserve.
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 $1.07 for December, 2022 and $1.10 for December, 2023, 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 2023 annual report, available at www.paulmueller.com/investors .
Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
kjeffries@paulmueller.com | https://paulmueller.com
What were the net sales for Paul Mueller Company in the quarter ended December 31, 2023?
Paul Mueller Company reported net sales of $55,786 for the quarter ended December 31, 2023.
Did Paul Mueller Company experience a net loss or gain for the quarter ended December 31, 2023?
Paul Mueller Company experienced a net loss of $23,874 for the quarter ended December 31, 2023.
What impact did operating expenses have on Paul Mueller Company's financials?
Operating expenses had a significant impact, leading to an operating loss of $34,681 for the quarter.
How did the streamlining of pension plans affect Paul Mueller Company's net income?
The streamlining of pension plans resulted in a one-time charge, impacting net income and leading to a reported net loss.
Were there any changes in the LIFO reserve affecting Paul Mueller Company's results?
Changes in the LIFO reserve negatively impacted pre-tax results for the company.
How were the consolidated financials of Paul Mueller Company affected by currency exchange rates?
Currency exchange rate fluctuations impacted the consolidated financials, especially when consolidating Mueller B.V., the Dutch subsidiary.