Paul Mueller Company Announces Its Second Quarter Earnings of 2024
Rhea-AI Summary
Paul Mueller Company (OTC Pink: MUEL) announced its Q2 2024 earnings. Key highlights include:
- Net sales increased 9.6% to $65.67 million for Q2 2024 compared to $59.93 million in Q2 2023.
- Net income rose to $6.8 million ($7.26 per share) in Q2 2024, up from $4.81 million ($4.43 per share) in Q2 2023.
- Backlog grew significantly to $187.3 million as of June 30, 2024, compared to $106.0 million a year ago, primarily driven by the pharmaceutical divisions.
- The company announced plans to construct a new $20 million facility, adding 100,000 square feet for expanded production and R&D.
- A tender offer resulted in the repurchase of 148,874 shares for $11.9 million at $80 per share.
Positive
- Net sales increased 9.6% year-over-year in Q2 2024
- Net income grew by 41.4% to $6.8 million in Q2 2024
- Earnings per share increased to $7.26 in Q2 2024 from $4.43 in Q2 2023
- Backlog surged to $187.3 million, up 76.7% from the previous year
- Announced plans for a new $20 million facility to expand production and R&D
Negative
- Cash and marketable securities decreased to $21.6 million after the tender offer
- Six-month net sales remained flat year-over-year at $116 million
News Market Reaction
On the day this news was published, MUEL gained 40.00%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SPRINGFIELD, Mo., July 26, 2024 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC Pink: MUEL) (the “Company”) announces its second-quarter earnings of 2024.
| 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 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net Sales | $ | 65,670 | $ | 59,931 | $ | 116,026 | $ | 116,282 | $ | 228,900 | $ | 221,050 | |||||||||||||
| Cost of Sales | 45,871 | 41,379 | 80,431 | 80,933 | 158,123 | 165,816 | |||||||||||||||||||
| Gross Profit | $ | 19,799 | $ | 18,552 | $ | 35,595 | $ | 35,349 | $ | 70,777 | $ | 55,234 | |||||||||||||
| Selling, General and Administrative Expense | 11,417 | 12,714 | 21,775 | 25,301 | 84,743 | 39,675 | |||||||||||||||||||
| Operating Income (Loss) | $ | 8,382 | $ | 5,838 | $ | 13,820 | $ | 10,048 | $ | (13,966 | ) | $ | 15,559 | ||||||||||||
| Interest Income (Expense) | 70 | (80 | ) | (1,178 | ) | (177 | ) | (1,351 | ) | (369 | ) | ||||||||||||||
| Other Income | 506 | 613 | 2,050 | 1,333 | 3,383 | 2,310 | |||||||||||||||||||
| Income (Loss) before Provision (Benefit) for Income Taxes | $ | 8,958 | $ | 6,371 | $ | 14,692 | $ | 11,204 | $ | (11,934 | ) | $ | 17,500 | ||||||||||||
| Provision (Benefit) for Income Taxes | 2,154 | 1,558 | 3,439 | 2,724 | (4,817 | ) | 4,140 | ||||||||||||||||||
| Net Income (Loss) | $ | 6,804 | $ | 4,813 | $ | 11,253 | $ | 8,480 | $ | (7,117 | ) | $ | 13,360 | ||||||||||||
| Earnings (Loss) per Common Share –– | Basic and Diluted | ( | ) | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
| Six Months Ended | |||||||
| June 30 | |||||||
| 2024 | 2023 | ||||||
| Net Income | $ | 11,253 | $ | 8,480 | |||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||
| Foreign Currency Translation Adjustment | (780 | ) | 441 | ||||
| Comprehensive Income | $ | 10,473 | $ | 8,921 | |||
| CONSOLIDATED BALANCE SHEETS | |||||||
| June 30 | December 31 | ||||||
| 2024 | 2023 | ||||||
| Cash and Short-Term Investments | $ | 3,409 | $ | 1,883 | |||
| Marketable Securities | 18,169 | 32,042 | |||||
| Accounts Receivable | 35,662 | 25,166 | |||||
| Reserve for Doubtful Accounts | (1,141 | ) | |||||
| Inventories (FIFO) | 44,379 | 45,910 | |||||
| LIFO Reserve | (21,310 | ) | (21,774 | ) | |||
| Inventories (LIFO) | 23,069 | 24,136 | |||||
| Current Net Investments in Sales-Type Leases | 29 | 27 | |||||
| Other Current Assets | 5,920 | 3,537 | |||||
| Current Assets | $ | 85,117 | $ | 86,791 | |||
| Net Property, Plant, and Equipment | 44,253 | 42,011 | |||||
| Right of Use Assets | 2,280 | 2,421 | |||||
| Other Assets | 2,823 | 2,590 | |||||
| Long-Term Net Investments in Sales-Type Leases | - | 456 | |||||
| Total Assets | $ | 134,473 | $ | 134,269 | |||
| Accounts Payable | $ | 15,284 | $ | 11,041 | |||
| Current Maturities and Short-Term Debt | 631 | 640 | |||||
| Current Lease Liabilities | 350 | 402 | |||||
| Advance Billings | 18,865 | 27,383 | |||||
| Pension Liabilities | 32 | 32 | |||||
| Other Current Liabilities | 26,520 | 19,599 | |||||
| Current Liabilities | $ | 61,682 | $ | 59,097 | |||
| Long-Term Debt | 8,407 | 8,880 | |||||
| Long-Term Pension Liabilities | 217 | 233 | |||||
| Other Long-Term Liabilities | 1,696 | 1,768 | |||||
| Lease Liabilities | 777 | 775 | |||||
| Total Liabilities | $ | 72,779 | $ | 70,753 | |||
| Shareholders' Investment | 61,694 | 63,516 | |||||
| Total Liabilities and Shareholders' Investment | $ | 134,473 | $ | 134,269 | |||
| SELECTED FINANCIAL DATA | |||||||
| June 30 | December 31 | ||||||
| 2024 | 2023 | ||||||
| Book Value per Common Share | $ | 65.85 | $ | 58.50 | |||
| Total Shares Outstanding | 936,837 | 1,085,711 | |||||
| Backlog | $ | 187,336 | $ | 97,350 | |||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | ||||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance, December 31, 2023 | $ | 1,508 | $ | 9,708 | $ | 67,181 | $ | (10,787 | ) | $ | (4,094 | ) | $ | 63,516 | ||||||||||
| Add (Deduct): | ||||||||||||||||||||||||
| Net Income | 11,253 | 11,253 | ||||||||||||||||||||||
| Other Comprehensive Income, Net of Tax | (780 | ) | (780 | ) | ||||||||||||||||||||
| Dividends, $.30 per Common Share | (378 | ) | (378 | ) | ||||||||||||||||||||
| Treasury Stock Acquisition | (11,910 | ) | (11,910 | ) | ||||||||||||||||||||
| Other | (7 | ) | (7 | ) | ||||||||||||||||||||
| Balance, June 30, 2024 | $ | 1,508 | $ | 9,708 | $ | 78,049 | $ | (22,697 | ) | $ | (4,874 | ) | $ | 61,694 | ||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||
| Operating Activities: | |||||||
| Net Income | $ | 11,253 | $ | 8,480 | |||
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
| Pension Contributions (Greater) Less than Expense | (16 | ) | (818 | ) | |||
| Bad Debt (Recovery) Expense | - | (19 | ) | ||||
| Depreciation & Amortization | 3,427 | 3,027 | |||||
| Loss (Gain) on Disposal of Equipment | 175 | - | |||||
| (Gain) on Sales of Equipment | (106 | ) | (33 | ) | |||
| Change in Assets and Liabilities | |||||||
| (Inc) in Accts and Notes Receivable | (9,354 | ) | (3,854 | ) | |||
| Dec (Inc) in Inventories | 1,290 | (3,444 | ) | ||||
| (Inc) in Prepayments | (2,389 | ) | (643 | ) | |||
| (Inc) in Net Investment in Sales-type leases | (80 | ) | (69 | ) | |||
| Dec in Other Assets | 738 | 307 | |||||
| Inc in Accounts Payable | 4,242 | 1,330 | |||||
| (Dec) Inc in Accrued Income Tax | (1,165 | ) | 1,911 | ||||
| (Dec) Inc in Other Accrued Expenses | (227 | ) | 4,919 | ||||
| (Dec) in Advanced Billings | (8,519 | ) | (4,647 | ) | |||
| Inc (Dec) in Billings in Excess of Costs and Estimated Earnings | 8,306 | (2,927 | ) | ||||
| Inc in Lease Liability for Operating | 57 | - | |||||
| Inc in Lease Liability for Financing | - | 133 | |||||
| Principal payments of Lease Liability for Operating | (53 | ) | (137 | ) | |||
| (Dec) Inc in Long Term Deferred Tax Liabilities | (78 | ) | 8 | ||||
| (Dec) Inc in Other Long-Term Liabilities | (93 | ) | 599 | ||||
| Net Cash Provided by Operating Activities | $ | 7,408 | $ | 4,123 | |||
| Investing Activities | |||||||
| Intangibles | - | (62 | ) | ||||
| Purchases of Marketable Securities | (24,649 | ) | - | ||||
| Proceeds from Sales of Marketable Securities | 38,522 | - | |||||
| Proceeds from Sales of Equipment | 131 | 67 | |||||
| Additions to Property, Plant, and Equipment | (6,612 | ) | (3,190 | ) | |||
| Net Cash (Required) for Investing Activities | $ | 7,392 | $ | (3,185 | ) | ||
| Financing Activities | |||||||
| Principal payments of Lease Liability for Financing | (22 | ) | (98 | ) | |||
| (Repayment) of Short-Term Borrowings, Net | (751 | ) | (1,673 | ) | |||
| Proceeds of Short-Term Borrowings, Net | 754 | 1,673 | |||||
| (Repayment) of Long-Term Debt | (422 | ) | (318 | ) | |||
| Dividends Paid | (378 | ) | (326 | ) | |||
| Treasury Stock Acquisitions | (11,910 | ) | - | ||||
| Net Cash (Required) for Financing Activities | $ | (12,729 | ) | $ | (742 | ) | |
| Effect of Exchange Rate Changes | (545 | ) | 535 | ||||
| Net Increase in Cash and Cash Equivalents | $ | 1,526 | $ | 731 | |||
| Cash and Cash Equivalents at Beginning of Year | 1,883 | 38,176 | |||||
| Cash and Cash Equivalents at End of Quarter | $ | 3,409 | $ | 38,907 | |||
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 June 30.
| Three Months Ended June 30 | |||||||
| Revenue | 2024 | 2023 | |||||
| Domestic | $ | 52,830 | $ | 48,295 | |||
| Mueller BV | $ | 13,164 | $ | 12,073 | |||
| Eliminations | $ | (324 | ) | $ | (437 | ) | |
| Net Revenue | $ | 65,670 | $ | 59,931 | |||
The chart below depicts the net revenue on a consolidating basis for the six months ended June 30.
| Six Months Ended June 30 | |||||||
| Revenue | 2024 | 2023 | |||||
| Domestic | $ | 91,707 | $ | 93,880 | |||
| Mueller BV | $ | 24,989 | $ | 23,377 | |||
| Eliminations | $ | (670 | ) | $ | (975 | ) | |
| Net Revenue | $ | 116,026 | $ | 116,282 | |||
The chart below depicts the net revenue on a consolidating basis for the twelve months ended June 30.
| Twelve Months Ended June 30 | |||||||
| Revenue | 2024 | 2023 | |||||
| Domestic | $ | 180,833 | $ | 176,642 | |||
| Mueller BV | $ | 49,322 | $ | 45,695 | |||
| Eliminations | $ | (1,255 | ) | $ | (1,287 | ) | |
| Net Revenue | $ | 228,900 | $ | 221,050 | |||
The chart below depicts the net income (loss) on a consolidating basis for the three months ended June 30.
| Three Months Ended June 30 | |||||||
| Net Income | 2024 | 2023 | |||||
| Domestic | $ | 6,027 | $ | 4,705 | |||
| Mueller BV | $ | 774 | $ | 110 | |||
| Eliminations | $ | 3 | $ | (2 | ) | ||
| Net Income (Loss) | $ | 6,804 | $ | 4,813 | |||
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 | 2024 | 2023 | |||||
| Domestic | $ | 10,075 | $ | 9,155 | |||
| Mueller BV | $ | 1,148 | $ | (660 | ) | ||
| Eliminations | $ | 30 | $ | (15 | ) | ||
| Net Income (Loss) | $ | 11,253 | $ | 8,480 | |||
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 | 2024 | 2023 | |||||
| Domestic | $ | (10,408 | ) | $ | 14,322 | ||
| Mueller BV | $ | 3,285 | $ | (941 | ) | ||
| Eliminations | $ | 6 | $ | (21 | ) | ||
| Net Income Loss | $ | (7,117 | ) | $ | 13,360 | ||
B. June 30, 2024 backlog is
C. Compared to last year, revenue is up
Net Income is up
We manage our business in the U.S. looking at earnings before tax (EBT) and excluding the effects of LIFO and non-reoccurring events such as the pension settlement. This non-GAAP adjusted EBT (as shown in the table below) show improved results from the strong 2023 for all three timeframes primarily from the pharmaceutical and food and beverage divisions.
| Results Ending June 30th | |||||||||||||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||||||||||
| (In Thousands) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Domestic Net Income | $ | 6,027 | $ | 4,705 | $ | 10,075 | $ | 9,155 | $ | (10,408 | ) | $ | 14,322 | ||||||||||
| Income Tax Expense | $ | 1,899 | $ | 1,468 | $ | 3,070 | $ | 2,873 | $ | (4,560 | ) | $ | 4,430 | ||||||||||
| Domestic EBT - GAAP | $ | 7,926 | $ | 6,173 | $ | 13,145 | $ | 12,028 | $ | (14,968 | ) | $ | 18,752 | ||||||||||
| LIFO Adjustment | $ | (246 | ) | $ | 424 | $ | (463 | ) | $ | 239 | $ | (619 | ) | $ | 1,528 | ||||||||
| Pension Adjustment | $ | - | $ | - | $ | - | $ | - | $ | 41,774 | $ | - | |||||||||||
| Domestic EBT - Non-GAAP | $ | 7,680 | $ | 6,597 | $ | 12,682 | $ | 12,267 | $ | 26,187 | $ | 20,280 | |||||||||||
D. On July 26, 2024, the Company announced construction of a new
E. On March 12, 2024, the Board of Directors authorized a tender offer effective from March 15, 2024 through May 7, 2024 for up to
F. 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 1.09 for June, 2023; 1.10 for December, 2023 and 1.07 for June, 2024, 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.
Contact Info:
Ken Jeffries (417) 575-9000
kjeffries@paulmueller.com
https://paulmueller.com
FAQ
What was Paul Mueller Company's (MUEL) net income for Q2 2024?
How much did Paul Mueller Company's (MUEL) backlog increase as of June 30, 2024?
What new facility did Paul Mueller Company (MUEL) announce in their Q2 2024 earnings report?
How many shares did Paul Mueller Company (MUEL) repurchase in their recent tender offer?
