Paul Mueller Company Announces Its Second Quarter Earnings of 2021
SPRINGFIELD, Mo., July 30, 2021 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended June 30, 2021.
PAUL MUELLER COMPANY | |||||||||||||||||||||||
SIX-MONTH REPORT | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | Twelve Months Ended | |||||||||||||||||||||
June 30 | June 30 | June 30 | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Net Sales | $ | 49,278 | $ | 53,223 | $ | 94,557 | $ | 95,383 | $ | 200,290 | $ | 196,617 | |||||||||||
Cost of Sales | 33,909 | 36,602 | 65,747 | 66,901 | 139,159 | 138,570 | |||||||||||||||||
Gross Profit | $ | 15,369 | $ | 16,621 | $ | 28,810 | $ | 28,482 | $ | 61,131 | $ | 58,047 | |||||||||||
Selling, General and Administrative Expense | 11,553 | 11,484 | 22,861 | 21,989 | 45,027 | 45,165 | |||||||||||||||||
Goodwill Impairment Expense | - | - | - | - | 15,397 | - | |||||||||||||||||
Operating Income | $ | 3,816 | $ | 5,137 | $ | 5,949 | $ | 6,493 | $ | 707 | $ | 12,882 | |||||||||||
Interest Expense | (91) | (94) | (542) | (709) | (825) | (941) | |||||||||||||||||
Other Income | 2,004 | 5 | 2,042 | 442 | 2,808 | 508 | |||||||||||||||||
Income before Provision for Income Taxes | $ | 5,729 | $ | 5,048 | $ | 7,449 | $ | 6,226 | $ | 2,690 | $ | 12,449 | |||||||||||
Provision for Income Taxes | 949 | 1,200 | 1,368 | 1,503 | 3,889 | 3,021 | |||||||||||||||||
Net Income (Loss) | $ | 4,780 | $ | 3,848 | $ | 6,081 | $ | 4,723 | $ | (1,199) | $ | 9,428 | |||||||||||
Earnings (Loss) per Common Share –– | Basic | $ | 4.38 | $ | 3.22 | ( | |||||||||||||||||
Diluted | $ | 4.38 | $ | 3.22 | ( | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30 | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Net Income | $ | 6,081 | $ | 4,723 | ||||||||||||
Other Comprehensive Income, Net of Tax: | ||||||||||||||||
Foreign Currency Translation Adjustment | (847) | 16 | ||||||||||||||
Comprehensive Income | $ | 5,234 | $ | 4,739 | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
June 30 | December 31 | |||||||||||||||
2021 | 2020 | |||||||||||||||
Cash and Short-Term Investments | $ | 11,601 | $ | 22,943 | ||||||||||||
Accounts Receivable | 25,124 | 20,462 | ||||||||||||||
Inventories | 24,743 | 17,926 | ||||||||||||||
Current Net Investments in Sales-Type Leases | 4 | 3 | ||||||||||||||
Other Current Assets | 2,581 | 1,771 | ||||||||||||||
Current Assets | $ | 64,053 | $ | 63,105 | ||||||||||||
Net Property, Plant, and Equipment | 44,034 | 46,570 | ||||||||||||||
Right of Use Assets | 2,343 | 2,448 | ||||||||||||||
Other Assets | 8,737 | 8,732 | ||||||||||||||
Long-Term Net Investments in Sales-Type Leases | 119 | 83 | ||||||||||||||
Total Assets | $ | 119,286 | $ | 120,938 | ||||||||||||
Accounts Payable | $ | 12,073 | $ | 11,316 | ||||||||||||
Current Maturities and Short-Term Debt | 1,390 | 2,115 | ||||||||||||||
Current Lease Liabilities | 482 | 519 | ||||||||||||||
Other Current Liabilities | 26,556 | 24,656 | ||||||||||||||
Current Liabilities | $ | 40,501 | $ | 38,606 | ||||||||||||
Long-Term Debt | 15,509 | 18,440 | ||||||||||||||
Long-Term Pension Liabilities | 28,126 | 30,047 | ||||||||||||||
Other Long-Term Liabilities | 2,680 | 2,226 | ||||||||||||||
Lease Liabilities | 886 | 1,075 | ||||||||||||||
Total Liabilities | $ | 87,702 | $ | 90,394 | ||||||||||||
Shareholders' Investment | 31,584 | 30,544 | ||||||||||||||
Total Liabilities and Shareholders' Investment | $ | 119,286 | $ | 120,938 |
SELECTED FINANCIAL DATA | |||||||||||||
June 30 | December 31 | ||||||||||||
2021 | 2020 | ||||||||||||
Book Value per Common Share | $ | 28.94 | $ | 25.54 | |||||||||
Total Shares Outstanding | 1,091,464 | 1,195,747 | |||||||||||
Backlog | $ | 76,118 | $ | 61,563 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | |||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Common | Paid-in | Retained | Treasury | Comprehensive | |||||||||||||||||||
Stock | Surplus | Earnings | Stock | Income (Loss) | Total | ||||||||||||||||||
Balance, December 31, 2020 | $ | 1,508 | $ | 9,708 | $ | 65,927 | $ | (6,344) | $ | (40,255) | $ | 30,544 | |||||||||||
Add (Deduct): | |||||||||||||||||||||||
Net Income | 6,081 | 6,081 | |||||||||||||||||||||
Other Comprehensive Income, Net of Tax | (847) | (847) | |||||||||||||||||||||
Treasury Stock Acquisition | (4,194) | (4,194) | |||||||||||||||||||||
Balance, June 30, 2021 | $ | 1,508 | $ | 9,708 | $ | 72,008 | $ | (10,538) | $ | (41,102) | $ | 31,584 |
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||||
Six Months | Six Months | |||||||||||||
Ended | Ended | |||||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||||
Operating Activities: | ||||||||||||||
Net Income | $ | 6,081 | $ | 4,723 | ||||||||||
Adjustment to Reconcile Net Income to Net Cash (Required) Provided by Operating Activities: | ||||||||||||||
Pension Contributions (Greater) Less than Expense | (1,921) | (2,142) | ||||||||||||
Bad Debt (Recovery) | (44) | (26) | ||||||||||||
Depreciation & Amortization | 3,277 | 3,192 | ||||||||||||
(Gain) Loss on Sales of Equipment | (18) | 1 | ||||||||||||
PPP Loan Forgiveness | (1,884) | - | ||||||||||||
Change in Assets and Liabilities | ||||||||||||||
(Inc) Dec in Accts and Notes Receivable | (4,618) | 6,514 | ||||||||||||
(Inc) Dec in Cost in Excess of Estimated Earnings and Billings | (824) | 1,229 | ||||||||||||
(Inc) in Inventories | (5,947) | (1,345) | ||||||||||||
Dec in Prepayments | 14 | 755 | ||||||||||||
(Inc) in Net Investment in Sales-type leases | (37) | (41) | ||||||||||||
Dec in Other Assets | 611 | 71 | ||||||||||||
Inc in Accounts Payable | 757 | 1,382 | ||||||||||||
(Dec) Inc in Other Accrued Expenses | (4,061) | 5,169 | ||||||||||||
Inc in Advanced Billings | 7,944 | 5,366 | ||||||||||||
(Dec) in Billings in Excess of Costs and Estimated Earnings | (1,982) | (4,480) | ||||||||||||
Inc in Lease Liability for Operating | 51 | - | ||||||||||||
Inc in Lease Liability for Financing | 43 | - | ||||||||||||
Principal payments of Lease Liability for Operating | (137) | (25) | ||||||||||||
(Dec) Inc in Other Long-Term Liabilities | (47) | 66 | ||||||||||||
Net Cash (Required) Provided by Operating Activities | $ | (2,742) | $ | 20,409 | ||||||||||
Investing Activities | ||||||||||||||
Proceeds from Sales of Equipment | 24 | 3 | ||||||||||||
Additions to Property, Plant, and Equipment | (2,188) | (824) | ||||||||||||
Net Cash (Required) for Investing Activities | ||||||||||||||
Financing Activities | ||||||||||||||
Principal payments of Lease Liability for Financing | (136) | - | ||||||||||||
(Repayment) Proceeds of Short-Term Borrowings, Net | (610) | (4,875) | ||||||||||||
(Repayment) Proceeds of Long-Term Debt | (843) | 2,758 | ||||||||||||
Treasury Stock Acquisitions | (4,194) | (3) | ||||||||||||
Net Cash (Required) for Financing Activities | $ | (5,783) | $ | (2,120) | ||||||||||
Effect of Exchange Rate Changes | (653) | 14 | ||||||||||||
Net (Decrease) Increase in Cash and Cash Equivalents | $ | (11,342) | $ | 17,482 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 22,943 | 1,072 | ||||||||||||
Cash and Cash Equivalents at End of Quarter | $ | 11,601 | $ | 18,554 | ||||||||||
PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS
(1) Results of Operations: (In thousands)
A. The chart below depicts the net revenue on a consolidating basis for the three months ended June 30.
Three Months Ended June 30 | ||||||
Revenue | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ||||||
Eliminations | ( | ) | ( | ) | ||
Net Revenue |
The chart below depicts the net revenue on a consolidating basis for the six months ended June 30.
Six Months Ended June 30 | ||||||
Revenue | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ||||||
Eliminations | ( | ) | ( | ) | ||
Net Revenue |
The chart below depicts the net revenue on a consolidating basis for the twelve months ended June 30.
Twelve Months Ended June 30 | ||||||
Revenue | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ||||||
Eliminations | ( | ) | ( | ) | ||
Net Revenue |
The chart below depicts the net income on a consolidating basis for the three months ended June 30.
Three Months Ended June 30 | ||||||
Net Income | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ||||||
Eliminations | ||||||
Net Income |
The chart below depicts the net income on a consolidating basis for the six months ended June 30.
Six Months Ended June 30 | ||||||
Net Income | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ( | ) | ||||
Eliminations | ||||||
Net Income |
The chart below depicts the net income on a consolidating basis for the twelve months ended June 30.
Twelve Months Ended June 30 | ||||||
Net Income | 2021 | 2020 | ||||
Domestic | ||||||
Mueller BV | ( | ) | ( | ) | ||
Eliminations | ||||||
Net Income | ( | ) |
B. We have continued to have positive results in the first half of 2021. Backlog across most business segments has been strengthening. However, a spike in COVID-19 cases, particularly in southwest Missouri, the location of our headquarters is concerning. A continued tightening of labor and materials markets will also pose a challenge for the remainder of 2021. Although we are once again implementing remote work for some office staff and physical separation in our locations due to the COVID-19 spike in our area and facilities, our facilities are operating.
C. June 30, 2021, the backlog was
D. Revenue for the three months is down
E. The Company was granted a loan for
F. Net income for the three months was
Net income for the trailing twelve months is a
In June, the Company increased wages of the production workers in the US in response to the shortage of qualified workers and the labor shortage in general. Many of the non-manufacturing hourly wages were adjusted in July, and salaried positions are also under review. The estimated annual impact of these changes on net income will be a negative
G. On March 19, 2021, the Company announced a stock repurchase plan of up to
H. The pre-tax results for the three months ended June 30, 2021, were unfavorably affected by a
I. The consolidated financials are affected by the euro to the dollar exchange rate when consolidating Mueller B.V., the Dutch subsidiary. The month-end euro to dollar exchange rate was 1.12 for June 2020, 1.23 for December 2020, and 1.19 for June 2021.
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 2020 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