MUEL
$31.40
Paul Mueller
$.15
.48%
Earnings Details
Quarter September 2020
Friday, October 30, 2020 4:07:00 PM
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Summary

Paul Mueller (MUEL) Recent Earnings

Paul Mueller (MUEL) reported Quarter September 2020 earnings of $3.34 per share on revenue of $51.6 million.. Revenue grew 12.3% on a year-over-year basis.

Results
Reported Earnings
$3.34
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$51.6 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Paul Mueller Company Announces Its Third Quarter Earnings of 2020

SPRINGFIELD, Mo., Oct. 30, 2020 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the quarter ended September 30, 2020.

PAUL MUELLER COMPANY
NINE-MONTH REPORT
Unaudited
(In thousands)
                 
CONSOLIDATED STATEMENTS OF INCOME
                 
      Three Months Ended Nine Months Ended Twelve Months Ended
      September 30 September 30 September 30
      2020 2019 2020 2019 2020 2019
                 
Net Sales    $ 51,607 $ 45,968 $ 146,990 $ 141,911 $ 202,256 $ 187,529
Cost of Sales    35,504 33,117 102,405 103,883 140,957 137,825
        Gross Profit  $ 16,103 $ 12,851 $ 44,585 $ 38,028 $ 61,299 $ 49,704
Selling, General and Administrative Expense 11,167 11,205 33,156 33,701 45,127 45,666
        Operating Income  $ 4,936 $ 1,646 $ 11,429 $ 4,327 $ 16,172 $ 4,038
Interest Expense  (110) (213) (819) (808) (838) (995)
Other Income    427 81 869 366 854 365
Income before Provision for Income Taxes $ 5,253 $ 1,514 $ 11,479 $ 3,885 $ 16,188 $ 3,408
Provision for Income Taxes  1,258 374 2,761 861 3,905 524
Net Income    $ 3,995 $ 1,140 $ 8,718 $ 3,024 $ 12,283 $ 2,884
                 
Earnings per Common Share ––Basic $3.34 $0.95 $7.29 $2.53 $10.27 $2.41
    Diluted $3.34 $0.95 $7.29 $2.53 $10.27 $2.41
                 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 
          Nine Months Ended    
          September 30    
          2020 2019    
                 
   Net Income     $ 8,718 $ 3,024    
   Other Comprehensive Income (Loss), Net of Tax:          
   Foreign Currency Translation Adjustment   1,590 (1,216)    
   Comprehensive Income   $ 10,308 $ 1,808    
                 
CONSOLIDATED BALANCE SHEETS
                 
          September 30 December 31    
          2020 2019    
                 
   Cash and Short-Term Investments     $ 21,583 $ 1,072    
   Accounts Receivable     20,273 28,509    
   Inventories      21,042 20,552    
   Current Net Investments in Sales-Type Leases   56 47    
   Other Current Assets     1,654 3,763    
   Current Assets $ 64,608 $ 53,943    
                 
   Net Property, Plant, and Equipment 45,668 47,406    
   Right of Use Assets 1,459 1,421    
   Other Assets 23,477 21,355    
   Long-Term Net Investments in Sales-Type Leases 840 769    
   Total Assets $ 136,052 $ 124,894    
                 
   Accounts Payable     $ 10,513 $ 10,534    
   Current Maturities and Short-Term debt   1,370 6,208    
   Current Lease Liabilities     466 485    
   Other Current Liabilities     31,209 27,021    
   Current Liabilities $ 43,558 $ 44,248    
                 
   Long-Term Debt 18,805 15,334     
   Long-Term Pension Liabilities     27,288 30,395    
   Other Long-Term Liabilities 2,688 1,566    
   Lease Liabilities 993 936    
   Total Liabilities     $ 93,332 $ 92,479    
   Shareholders' Investment 42,720 32,415    
   Total Liabilities and Shareholders' Investment $ 136,052 $ 124,894    
                 
            
                 
                 
                 
SELECTED FINANCIAL DATA
                 
            September 30 December 31  
            2020 2019  
    Book Value per Common Share     $35.73 $27.11  
    Total Shares Outstanding     1,195,747 1,195,866  
    Backlog       $ 75,287 $ 79,791  
                 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
              Accumulated Other Comprehensive Income (Loss)  
                
      Common Stock Paid-in Surplus Retained Earnings Treasury Stock   
           Total
Balance, December 31, 2019  $ 1,508 $ 9,708 $ 68,484 $ (6,341) $ (40,944) $ 32,415
Add (Deduct):              
 Net Income      8,718     8,718
 Other Comprehensive Income, Net of Tax         1,590 1,590
 Treasury Stock Acquisition        (3)   (3)
Balance, September 30, 2020  $ 1,508 $ 9,708 $ 77,202 $ (6,344) $ (39,354) $ 42,720
                 
                 
 CONSOLIDATED STATEMENT OF CASH FLOWS
                 
                 
                 
             Nine Months Ended  
September 30, 2020
 Nine Months Ended
September 30, 2019 
   Operating Activities:        
            
   Net Income $ 8,718 $ 3,024
            
   Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:      
   Pension Contributions (Greater) Less than Expense (3,107) (2,631)
   Bad Debt Expense (Recovery) (15) (210)
   Depreciation & Amortization 4,855 4,919
   Loss (Gain) on Sales of Equipment 1 (18)
   Change in Assets and Liabilities        
   Dec in Accts and Notes Receivable 8,251 2,426
   Dec (Inc) in Cost in Excess of Estimated Earnings and Billings 939 (180)
   (Inc) in Inventories (490) (546)
   Dec (Inc) in Prepayments 1,170 (643)
   (Inc) in Net Investment in Sales-type leases   (79) -
   Dec (Inc) in Intangibles     - (118)
   (Inc) in Other LT Assets (338) (48)
   (Dec) Inc in Accounts Payable (21) 2,012
   Inc (Dec) in Other Accrued Expenses 7,389 (948)
   Inc in Advanced Billings 1,241 7,295
   (Dec) Inc in Billings in Excess of Costs and Estimated Earnings (4,441) 1,633
   Inc in Lease Liability for operating     36 -
   Inc in Lease Liability for financing     27 -
   Inc (Dec) In Other Liabilities 108 (198)
   Net Cash Provided by Operating Activities $ 24,244 $ 15,769
            
   Investing Activities        
   Proceeds from Sales of Equipment 4 31
   Additions to Property, Plant, and Equipment (3,128) (1,062)
   Net Cash (Required) for Investing Activities $ (3,124) $ (1,031)
            
   Financing Activities        
   (Repayment) of principal portion of lease liability for operating (26) -
   (Repayment) of Short-Term Borrowings, Net (4,826) (7,692)
   Proceeds (Repayment) of Long-Term Debt 2,640 (5,553)
   Treasury Stock Acquisitions (3) -
   Net Cash (Required) for Financing Activities $ (2,215) $ (13,245)
            
   Effect of Exchange Rate Changes  1,606 (1,215)
            
   Net Increase in Cash and Cash Equivalents $ 20,511 $ 278
            
   Cash and Cash Equivalents at Beginning of Year 1,072 715
            
   Cash and Cash Equivalents at End of Quarter $ 21,583 $ 993
                 

 

 

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 September 30.

 Three Months Ended September 30  
 Revenue 2020  2019  
 Domestic$41,453 $36,168  
 Mueller BV$10,518 $10,310  
 Eliminations($364)($510) 
 Net Revenue$51,607 $45,968  

 

The chart below depicts the net revenue on a consolidating basis for the nine months ended September 30.

 Nine Months Ended September 30  
 Revenue 2020  2019  
 Domestic$112,979 $104,190  
 Mueller BV$34,907 $39,393  
 Eliminations($896)($1,672) 
 Net Revenue$146,990 $141,911  

The chart below depicts the net revenue on a consolidating basis for the twelve months ended September 30.

 Twelve Months Ended September 30  
 Revenue 2020  2019  
 Domestic$153,289 $135,378  
 Mueller BV$49,950 $54,123  
 Eliminations($983)($1,972) 
 Net Revenue$202,256 $187,529  

The chart below depicts the net income on a consolidating basis for the three months ended September 30.

 Three Months Ended September 30  
 Net Income 2020  2019  
 Domestic$3,773 $2,273  
 Mueller BV$169 ($1,085) 
 Eliminations$53 ($48) 
 Net Income$3,995 $1,140  

The chart below depicts the net income on a consolidating basis for the nine months ended September 30.

 Nine Months Ended September 30  
 Net Income 2020  2019  
 Domestic$8,224 $4,093  
 Mueller BV$431 ($997) 
 Eliminations$63 ($72) 
 Net Income$8,718 $3,024  

The chart below depicts the net income on a consolidating basis for the twelve months ended September 30.

 Twelve Months Ended September 30  
 Net Income 2020  2019  
 Domestic$11,543 $5,090  
 Mueller BV$623 ($2,149) 
 Eliminations$117 ($57) 
 Net Income$12,283 $2,884  

 

B.The strong beginning of the year backlog in the U.S. and reduced spending has mitigated the initial financial impact of the pandemic resulting in strong earnings for the first nine months. However, the uncertainty in the economy has slowed order entry as well as the increase in COVID-19 cases in the US and Europe is causing concern as countries begin to lock back down. Looking forward, we face the uncertainty of lower pharmaceutical and field backlog, the increasing risk of COVID-19 related disruptions, and increased costs after the aggressive cost-cutting during the beginning of the pandemic.
  
C.September 30, 2020 backlog was $75.3 million which is $4.5 million lower than the $79.8 million at December 31, 2019. In the U.S., backlog is $64.2 million which is down $5.5 million from December 31, 2019. Two thirds of the U.S. backlog is in the Pharmaceutical groups and Mueller Field Operations which is working on the large juice storage facility. Mueller BV backlog has been relatively flat but still at recent historic lows.
  
D.Revenue for the three, nine and twelve months are higher in the US driven by the large pharmaceutical backlog in the U.S. that went into production in mid-2019. Mueller Field Operations showed increased revenue from the previous year’s quarter from a large juice facility project. Dairy Farm Equipment revenues showed signs of rebounding with a 25% increase in quarterly revenue from the second quarter. In The Netherlands, the business conditions continue to be soft with trailing revenues flat to last year for the quarter but down to last year at nine and twelve months. However, The Netherlands continues to save in expenses.
  
 Net Income was favorable from the prior year at three, nine and twelve month trailing results. In the US, pharmaceutical and field operations work continue to drive overall profitability and the dairy farm equipment segment experienced its best quarterly results in over a year. In the Netherlands, better margins and expense savings are more than offsetting the reduced revenue.
  
E.September 30, 2020, total debt was $20.2 million compared to $21.5 million as of December 31, 2019. Cash and cash equivalents were $21.6 million at September 30, 2020 compared to $1.1 million at December 31, 2019. Advanced Billings for the Company which is a liability representing deposits received from customers on large projects was $10.1 million at September 30th compared to $8.9 million at December 31, 2019.
  
 All bank covenants were in compliance as of September 30, 2020.
  
F.The pre-tax results for the three months ended September 30, 2020, were favorably affected by $0.2 million decrease in the LIFO reserve. The pre-tax results for the nine months ended September 30, 2020, were favorably affected by $0.3 million decrease in the LIFO reserve. The pre-tax results for the twelve months ended September 30, 2020, were favorably affected by $0.8 million decrease in the LIFO reserve. The pre-tax results for the three months ended September 30, 2019, were unfavorably affected by $0.1 million increase in the LIFO reserve. The pre-tax results for the nine months ended September 30, 2019, were unfavorably affected by $0.4 million increase in the LIFO reserve. The pre-tax results for the twelve months ended September 30, 2019, were unfavorably affected by $0.3 million increase in the LIFO reserve.
  
G.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 1.10 for September 2019; 1.12 for December 2019; and 1.17 for September 2020.

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 2019 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


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Source: Paul Mueller Company