NINE-MONTH REPORT Unaudited (In thousands) | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | Twelve Months Ended | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
$ | 45,766 | $ | 43,063 | $ | 132,518 | $ | 137,620 | $ | 179,511 | $ | 191,746 | |||||||||
Cost of Sales | 34,801 | 32,959 | 102,204 | 98,706 | 139,665 | 136,614 | ||||||||||||||
Gross Profit | $ | 10,965 | $ | 10,104 | $ | 30,314 | $ | 38,914 | $ | 39,846 | $ | 55,132 | ||||||||
Selling, General and Administrative Expense | 9,695 | 11,267 | 30,332 | 34,128 | 40,088 | 45,127 | ||||||||||||||
Goodwill Impairment Expense | - | - | - | - | - | 15,397 | ||||||||||||||
Operating Income (Loss) | $ | 1,270 | $ | (1,163) | $ | (18) | $ | 4,786 | $ | (242) | $ | (5,392) | ||||||||
Interest Expense | (105) | (102) | (610) | (644) | (708) | (817) | ||||||||||||||
PPP Loan Forgiveness | - | - | - | 1,884 | - | 1,884 | ||||||||||||||
Other Income (Expense) | 38 | (94) | 176 | 64 | 2,956 | 403 | ||||||||||||||
Income (Loss) before Provision (Benefit) for Income Taxes | $ | 1,203 | $ | (1,359) | $ | (452) | $ | 6,090 | $ | 2,006 | $ | (3,922) | ||||||||
Provision (Benefit) for Income Taxes | 223 | (317) | (161) | 1,051 | 335 | 2,314 | ||||||||||||||
Net Income (Loss) | $ | 980 | $ | (1,042) | $ | (291) | $ | 5,039 | $ | 1,671 | $ | (6,236) | ||||||||
Earnings (Loss) per Common Share - | Basic and Diluted | $ | 0.90 | ( | $ | (0.27) | $ | 4.61 | $ | 1.54 | $ | (5.58) | ||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||
Nine Months Ended | ||||||
2022 | 2021 | |||||
Net Income (Loss) | $ | (291) | $ | 5,039 | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign Currency Translation Adjustment | (3,292) | (1,048) | ||||
Comprehensive Income (Loss) | $ | (3,583) | $ | 3,991 | ||
CONSOLIDATED BALANCE SHEETS | ||||||
2022 | 2021 | |||||
Cash and Short-Term Investments | $ | 20,871 | $ | 11,281 | ||
Accounts Receivable | 20,509 | 25,774 | ||||
Inventories (FIFO) | 55,120 | 43,309 | ||||
LIFO Reserve | (21,308) | (16,855) | ||||
Inventories (LIFO) | 33,812 | 26,454 | ||||
Current Net Investments in Sales-Type Leases | 22 | 23 | ||||
Other Current Assets | 4,556 | 1,814 | ||||
Current Assets | $ | 79,770 | $ | 65,346 | ||
Net Property, Plant, and Equipment | 38,649 | 41,250 | ||||
Right of Use Assets | 2,074 | 2,526 | ||||
Other Assets | 7,290 | 7,003 | ||||
Long-Term Net Investments in Sales-Type Leases | 251 | 164 | ||||
Total Assets | $ | 128,034 | $ | 116,289 | ||
Accounts Payable | $ | 11,186 | $ | 14,470 | ||
Current Maturities and Short-Term debt | 1,180 | 1,330 | ||||
Current Lease Liabilities | 389 | 483 | ||||
Advance Billings | 34,089 | 18,595 | ||||
Other Current Liabilities | 18,117 | 9,096 | ||||
Current Liabilities | $ | 64,961 | $ | 43,974 | ||
Long-Term Debt | 11,924 | 14,241 | ||||
Long-Term Pension Liabilities | 15,087 | 18,036 | ||||
Other Long-Term Liabilities | 2,225 | 1,848 | ||||
Lease Liabilities | 654 | 897 | ||||
Total Liabilities | $ | 94,851 | $ | 78,996 | ||
33,183 | 37,293 | |||||
Total Liabilities and | $ | 128,034 | $ | 116,289 | ||
SELECTED FINANCIAL DATA | ||||||
2022 | 2021 | |||||
Book Value per Common Share | $ | 30.56 | $ | 34.32 | ||
Total Shares Outstanding | 1,085,711 | 1,086,661 | ||||
Backlog | $ | 139,177 | $ | 78,357 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | |||||||||||||||||||
Common Stock | Paid-in Surplus | Retained Earnings | Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||
Balance, | $ | 1,508 | $ | 9,708 | $ | 72,764 | $ | (10,749) | $ | (35,938) | $ | 37,293 | |||||||
Add (Deduct): | |||||||||||||||||||
Net Income (Loss) | (291) | (291) | |||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (3,292) | (3,292) | |||||||||||||||||
Dividends, | (489) | (489) | |||||||||||||||||
Treasury Stock Acquisition | (38) | (38) | |||||||||||||||||
Balance, | $ | 1,508 | $ | 9,708 | $ | 71,984 | $ | (10,787) | $ | (39,230) | $ | 33,183 | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||
Nine Months Ended | Nine Months Ended | |||||
Operating Activities: | ||||||
Net Income (Loss) | $ | (291) | $ | 5,039 | ||
Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||
Pension Contributions (Greater) Less than Expense | (2,950) | (2,882) | ||||
Bad Debt Expense (Recovery) | (1) | (58) | ||||
Depreciation & Amortization | 4,549 | 4,896 | ||||
(Gain) Loss on Sales of Equipment | (4) | (43) | ||||
PPP Loan Forgiveness | - | (1,884) | ||||
Change in Assets and Liabilities | ||||||
Dec (Inc) in Accts and Notes Receivable | 5,266 | (1,658) | ||||
(Inc) in Cost in Excess of Estimated Earnings and Billings | - | (1,655) | ||||
(Inc) in Inventories | (7,358) | (8,571) | ||||
(Inc) in Prepayments | (2,742) | (152) | ||||
(Inc) in Net Investment in Sales-type leases | (86) | (101) | ||||
Dec in Other LT Assets | 218 | 677 | ||||
(Dec) Inc in Accounts Payable | (3,284) | 3,156 | ||||
(Dec) in Accrued Income Tax | (1) | - | ||||
Inc (Dec) in Other Accrued Expenses | 1,468 | (3,271) | ||||
Inc in Advanced Billings | 15,494 | 9,012 | ||||
Inc (Dec) in Billings in Excess of Costs and Estimated Earnings | 7,554 | (1,208) | ||||
Inc in Lease Liability for Operating | 220 | 193 | ||||
Inc in Lease Liability for Financing | - | 152 | ||||
Principal payments of Lease Liability for Operating | (231) | (202) | ||||
(Dec) In Other Long-Term Liabilities | (175) | (90) | ||||
Net Cash Provided by Operating Activities | $ | 17,646 | $ | 1,350 | ||
Investing Activities | ||||||
Intangibles | - | (105) | ||||
Proceeds from Sales of Equipment | 11 | 67 | ||||
Additions to Property, Plant, and Equipment | (5,838) | (3,588) | ||||
Net Cash (Required) for Investing Activities | $ | (5,827) | $ | (3,626) | ||
Financing Activities | ||||||
Principal payments of Lease Liability for Financing | (144) | (197) | ||||
(Repayment) of Short-Term Borrowings, Net | - | (595) | ||||
(Repayment) of Long-Term Debt | (957) | (1,250) | ||||
Dividends Paid | (489) | - | ||||
Treasury Stock Acquisitions | (38) | (4,216) | ||||
Net Cash (Required) for Financing Activities | $ | (1,628) | $ | (6,258) | ||
Effect of Exchange Rate Changes | (601) | (140) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 9,590 | $ | (8,674) | ||
Cash and Cash Equivalents at Beginning of Year | 11,281 | 22,943 | ||||
Cash and Cash Equivalents at End of Quarter | $ | 20,871 | $ | 14,269 | ||
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
Three Months Ended | ||||||
Revenue | 2022 | 2021 | ||||
Domestic | $ | 35,464 | $ | 33,192 | ||
$ | 10,316 | $ | 10,148 | |||
Eliminations | $ | (14 | ) | $ | (277 | ) |
Net Revenue | $ | 45,766 | $ | 43,063 |
The chart below depicts the net revenue on a consolidating basis for the nine months ended
Nine Months Ended | ||||||
Revenue | 2022 | 2021 | ||||
Domestic | $ | 97,895 | $ | 104,183 | ||
$ | 35,354 | $ | 34,369 | |||
Eliminations | $ | (731 | ) | $ | (932 | ) |
Net Revenue | $ | 132,518 | $ | 137,620 |
The chart below depicts the net revenue on a consolidating basis for the twelve months ended
Twelve Months Ended | ||||||
Revenue | 2022 | 2021 | ||||
Domestic | $ | 130,791 | $ | 146,092 | ||
$ | 49,805 | $ | 46,675 | |||
Eliminations | $ | (1,085 | ) | $ | (1,021 | ) |
Net Revenue | $ | 179,511 | $ | 191,746 |
The chart below depicts the net income on a consolidating basis for the three months ended
Three Months Ended | ||||||
Net Income | 2022 | 2021 | ||||
Domestic | $ | 1,308 | $ | (81 | ) | |
$ | (333 | ) | $ | (942 | ) | |
Eliminations | $ | 5 | $ | (19 | ) | |
Net Income (Loss) | $ | 980 | $ | (1,042 | ) |
The chart below depicts the net income on a consolidating basis for the nine months ended
Nine Months Ended | ||||||
Net Income | 2022 | 2021 | ||||
Domestic | $ | 658 | $ | 6,367 | ||
$ | (955 | ) | $ | (1,326 | ) | |
Eliminations | $ | 6 | $ | (2 | ) | |
Net Income (Loss) | $ | (291 | ) | $ | 5,039 |
The chart below depicts the net income on a consolidating basis for the twelve months ended
Twelve Months Ended | ||||||
Net Income | 2022 | 2021 | ||||
Domestic | $ | 1,619 | $ | 10,327 | ||
$ | 6 | $ | (16,515 | ) | ||
Eliminations | $ | 46 | $ | (48 | ) | |
Net Income (Loss) | $ | 1,671 | $ | (6,236 | ) |
B. Key headlines for the quarter,
September 30, 2022 backlog, excluding Mueller Field Operations which was sold onDecember 31, 2021 , held steady at a very solid$139.2 million compared to$141.7 million atJune 30, 2022 and$78.4 million atDecember 31, 2021 . Most business unit backlogs are higher led by the pharmaceutical group which has begun another large project that will continue through 2023.- With the higher backlog, the company initiated a more aggressive referral and bonus program in the
U.S. during the summer to attract new workers in this tight employment environment. As ofSeptember 30 th, the company employed 39 additional workers from the beginning of the year with 18 in production, a 5% increase. Additionally, wages have been increased to remain competitive in the market.
- Cash has increased
$9.6 million in the first nine months to$20.9 million . Advanced deposits from customers in line with the increased backlog, grew$15.5 million . Major uses of cash include$7.4 million increase in inventories and capital expenditures of$5.8 million .
- Revenue and profits for the first nine months of the year were lower than expected as the Company worked through the older backlog that was not adequately priced for the current inflation. Production continues to be slowed by the shortage or delay of key components.
- The Company’s pre-tax earnings have been negatively affected by an increase in the LIFO reserve. Pre-tax earnings were reduced by
$4.5 million year-to-date and$5.6 million for trailing twelve months. SinceJanuary 1, 2021 , pre-tax earnings have been negatively affected by$8.5 million . This increase in the reserve is due to inflation and an increase in inventory to produce the larger backlog.
C. Revenue for the trailing three months is up slightly. Revenue in the
D. Similar to revenue, net income is up at three months but lower at nine months and on twelve months when excluding the goodwill impairment of
E. On
On
F. The pre-tax results for the three months ended
G. The consolidated financials are affected by the euro to dollar exchange rate when consolidating
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.
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