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Paul Mueller Company Announces Its Earnings for the Year 2014

SPRINGFIELD, Mo., March 19, 2015 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC:MUEL) today announced earnings for the year ended December 31, 2014. The 2014 Annual Report is available at: www.paulmueller.com.

PAUL MUELLER COMPANY AND SUBSIDIARIES
TWELVE-MONTH REPORT
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
December 31 December 31
2014 2013 2014 2013
Net Revenue $ 50,555,000 $ 49,754,000 $ 200,713,000 $181,257,000
Cost of Sales 37,285,000 34,024,000 147,189,000 126,510,000
Gross Profit $ 13,270,000 $ 15,730,000 $ 53,524,000 $ 54,747,000
Selling, General and Administrative Expense 11,283,000 10,569,000 42,616,000 40,662,000
Operating Income $ 1,987,000 $ 5,161,000 $ 10,908,000 $ 14,085,000
Other Income (Expense) (358,000) (218,000) (894,000) (883,000)
Income before Provision for Income Taxes $ 1,629,000 $ 4,943,000 $ 10,014,000 $ 13,202,000
Provision (Benefit) for Income Taxes 643,000 (6,896,000) 3,137,000 (5,691,000)
Net Income $ 986,000 $ 11,839,000 $ 6,877,000 $ 18,893,000
Earnings per Common Share ––
Basic $0.80 $9.65 $5.60 $15.55
Diluted $0.80 $9.58 $5.56 $15.45
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Twelve Months Ended
December 31
2014 2013
Net Income $ 6,877,000 $ 18,893,000
Other Comprehensive Income, Net of Tax:
Foreign Currency Translation Adjustment (3,019,000) 1,006,000
Change in Pension Liability (11,531,000) 13,230,000
Amortization of De-Designated Hedges 33,000 22,000
Comprehensive Income (Loss) $ (7,640,000) $ 33,151,000
CONSOLIDATED BALANCE SHEETS
December 31 December 31
2014 2013
Current Assets $ 60,938,000 $ 57,228,000
Net Property, Plant, and Equipment 34,646,000 35,730,000
Other Assets 24,438,000 21,313,000
Total Assets $ 120,022,000 $114,271,000
Current Liabilities $ 56,527,000 $ 51,613,000
Long-Term Debt 1,991,000 8,776,000
Other Long-Term Liabilities 37,365,000 22,141,000
Shareholders' Investment 24,139,000 31,741,000
Total Liabilities and Shareholders' Investment $ 120,022,000 $114,271,000
SELECTED FINANCIAL DATA
December 31 December 31
2014 2013
Book Value per Common Share $19.51 $25.65
Total Shares Outstanding 1,237,379 1,237,591
Backlog $ 53,953,000 $ 67,387,000
CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
Common
Stock
Paid-in
Surplus
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive
Income (Loss)

Total
Balance, December 31, 2013 $ 1,508,000 $ 9,650,000 $ 48,382,000 $ (5,102,000) $ (22,697,000) $ 31,741,000
Add (Deduct):
Net Income 6,877,000 $ 6,877,000
Other Comprehensive Income, Net of Tax (14,517,000) (14,517,000)
Treasury Stock Acquisition (7,000) (7,000)
Deferred Compensation 45,000 45,000
Balance, December 31, 2014 $ 1,508,000 $ 9,695,000 $ 55,259,000 $ (5,109,000) $ (37,214,000) $ 24,139,000
CONSOLIDATED STATEMENT OF CASH FLOWS
Twelve
Months
Ended
December 31,
2014
Twelve
Months
Ended
December 31,
2013
Cash Flows from Operating Activities:
Net Income $ 6,877,000 $ 18,893,000
Adjustment to Reconcile Net Income to
Net Cash (Required) Provided by Operating Activities:
Pension Contributions (Greater) Less than Expense 3,890,000 (550,000)
Bad Debt Expense (Recovery) (57,000) 549,000
Depreciation & Amortization 6,009,000 6,276,000
Deferred Tax Expense 1,439,000 2,965,000
Deferred Tax Valuation Allowance - Change (28,000) (10,039,000)
(Gain) Loss on Sales of Equipment (17,000) --
Other 75,000 72,000
Change in Assets and Liabilities, Net of Effect of Acquisitions --
(Inc) Dec in Accts and Notes Receivable (1,681,000) (3,009,000)
(Inc) Dec in Cost in Excess of Estimated Earnings and Billings (6,000) 990,000
(Inc) Dec in Inventories (1,775,000) (2,748,000)
(Inc) Dec in Prepayments (1,348,000) (600,000)
(Inc) Dec Other Assets (2,398,000) 338,000
(Inc) Dec Deferred Tax Assets (7,223,000) 103,000
Inc (Dec) in Accounts Payable 4,697,000 (1,054,000)
Inc (Dec) Other Accrued Expenses 950,000 920,000
Inc (Dec) Advanced Billings (1,953,000) 139,000
Inc (Dec) in Billings in Excess of Costs and Estimated Earnings (1,538,000) 301,000
Net Cash (Required) Provided by Operating Activities $ 5,913,000 $ 13,546,000
Cash Flows (Requirements) from Investing Activities
Proceeds from Sales of Equipment 55,000 53,000
Additions to Property and Equipment (6,983,000) (6,650,000)
Net Cash (Required) Provided by Investing Activities $ (6,928,000) $ (6,597,000)
Cash Flows (Requirements) from Financing Activities
Proceeds (Repayment) of Short-Term Borrowings 6,605,000 (2,946,000)
Proceeds (Repayment) of Long-Term Debt (3,993,000) (3,694,000)
Treasury Stock Acquisitions (8,000) (45,000)
Other -- 22,000
Net Cash (Required) Provided by Financing Activities $ 2,604,000 $ (6,663,000)
Effect of Exchange Rate Changes (366,000) (537,000)
Net Increase (Decrease) in Cash and Cash Equivalents $ 1,223,000 $ (251,000)
Cash and Cash Equivalents at Beginning of Year 179,000 430,000
Cash and Cash Equivalents at End of Year $ 1,402,000 $ 179,000

Paul Mueller Company is a manufacturer of high quality stainless steel equipment used worldwide on dairy farms and in wide varieties of industrial applications, including food, dairy, and beverage processing; transportation; pharmaceutical, biotechnological, and chemical processing; water distillation; heat transfer; heat recovery; HVAC; and process cooling.

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 on page 34 of the Company's 2014 Annual Report, which is available at www.paulmueller.com. The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.

PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS

(1) Results of Operations:

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 2014 2013
Domestic $33,972,000 $31,467,000
Mueller BV $17,648,000 $18,653,000
Eliminations ($1,065,000) ($366,000)
Net Revenue $50,555,000 $49,754,000

The chart below depicts the net revenue on a consolidating basis for the twelve months ended December 31.

Twelve Months Ended December 31
Revenue 2014 2013
Domestic $132,846,000 $122,122,000
Mueller BV $70,915,000 $61,603,000
Eliminations ($3,048,000) ($2,468,000)
Net revenue $200,713,000 $181,257,000

The chart below depicts the net revenue on a consolidating basis for the three months ended December 31.

Three Months Ended December 31
Net Income 2014 2013
Domestic ($74,000) $10,388,000
Mueller BV $1,168,000 $1,366,000
Eliminations ($108,000) 85,000
Net Income $986,000 $11,839,000

The chart below depicts the net income on a consolidating basis for the twelve months ended December 31.

Twelve Months Ended December 31
Net Income 2014 2013
Domestic $2,345,000 $15,278,000
Mueller BV $4,534,000 $3,581,000
Eliminations ($2,000) $34,000
Net Income $6,877,000 $18,893,000

B. The results for the three months ended December 31, 2014 were unfavorably affected by a $516,000 increase in the LIFO reserve. The results for the twelve months ended December 31, 2014, were unfavorably affected by a $1,016,000 increase in the LIFO reserve. The results for the three and twelve months ended December 31, 2013, were both favorably affected by a $665,000 decrease in the LIFO reserve.

C. The change in the valuation allowance against the net deferred tax assets did not materially affect Net Income for the twelve months ended December 31, 2014. The results for the twelve months ended December 31, 2013, were favorably affected by a $10,120,000 reduction in the valuation allowance.

D. The company's subsidiary, Mueller Field Operations, Inc. was involved in an accident involving a field fabricated tank on September 14, 2014. A $2,900,000 million reserve was established for the full contract value of the original order and certain insurance deductibles. While various contractual and insurance issues are still uncertain, the $2,900,000 million reserve is still management's best estimate.

(2) Summary of Accounting Policies:

Principles of Consolidation and Lines of Business – The financial statements include the accounts of Paul Mueller Company and its wholly owned subsidiaries: Mueller Transportation, Inc.; Mueller Field Operations, Inc.; and Mueller B.V. and its subsidiaries (collectively "Company"). All significant intercompany balances and transactions have been eliminated in consolidation. The Company provides manufactured equipment and components for the food, dairy, beverage, transportation, chemical, pharmaceutical, and other industries, as well as the dairy farm market. The Company also provides field fabrication, service and repair, and construction services in these industries.

For all other relevant accounting policies, please see the annual report, which is available at www.paulmueller.com.

CONTACT: Press Contact: Jay Holden Paul Mueller Company Springfield, MO 65802 (417) 575-9422 jholden@paulmueller.com http://paulmueller.com

Source:Paul Mueller Company