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Paul Mueller Company Releases Its Third Quarter 2012 Earnings Report

SPRINGFIELD, Mo., Oct. 26, 2012 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC:MUEL) today released its third quarter report for the period ended September 30, 2012.

PAUL MUELLER COMPANY AND SUBSIDIARIES
NINE-MONTH REPORT
Unaudited
CONSOLIDATED SUMMARIES OF OPERATIONS
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
2012 2011 2012 2011 2012 2011
Net Sales $ 46,058,000 $ 36,814,000 $ 130,696,000 $ 110,203,000 $ 174,674,000 $ 145,081,000
Cost of Sales 34,089,000 24,748,000 94,266,000 74,352,000 126,811,000 98,471,000
Gross Profit $ 11,969,000 $ 12,066,000 $ 36,430,000 $ 35,851,000 $ 47,863,000 $ 46,610,000
Selling, General and Administrative Expense 10,688,000 11,074,000 31,412,000 34,260,000 41,077,000 45,206,000
Operating Income $ 1,281,000 $ 992,000 $ 5,018,000 $ 1,591,000 $ 6,786,000 $ 1,404,000
Other Income (Expense) (268,000) (987,000) (513,000) (2,368,000) 570,000 (2,745,000)
Income before Provision for Income Taxes $ 1,013,000 $ 5,000 $ 4,505,000 $ (777,000) $ 7,356,000 $ (1,341,000)
Provision for Income Taxes 161,000 121,000 979,000 797,000 239,000 6,010,000
Net Income $ 852,000 $ (116,000) $ 3,526,000 $ (1,574,000) $ 7,117,000 $ (7,351,000)
Earnings per Common Share –– Basic $0.70 ($0.10) $2.90 ($1.32) $5.86 ($6.15)
Diluted $0.70 ($0.10) $2.90 ($1.32) $5.86 ($6.15)
SUMMARIZED CONSOLIDATED BALANCE SHEETS
September 30 December 31
2012 2011
Current Assets $ 58,889,000 $ 51,251,000
Net Property, Plant, and Equipment 33,823,000 36,251,000
Other assets 13,625,000 16,372,000
Total Assets $ 106,337,000 $ 103,874,000
Current Liabilities $ 59,133,000 $ 52,219,000
Long-Term Debt 9,171,000 13,066,000
Other Long-Term Liabilities 26,163,000 30,350,000
Shareholders' Investment 11,870,000 8,239,000
Total Liabilities and Shareholders' Investment $ 106,337,000 $ 103,874,000
Book Value per Common Share $9.50 $6.58
Total Shares Outstanding 1,250,018 1,252,977
Backlog $ 57,955,000 $ 51,714,000
NOTES
1) Domestic sales for the three months and nine months ended September 30, 2012, were $32,833,000 and $87,442,000, respectively and the net income was $499,000 and $784,000, respectively, compared to 2011 when sales were $24,026,000 and $67,164,000, respectively and the net loss was $361,000 and $3,661,000, respectively. For Mueller BV, sales for the three months and nine months ended September 30, 2012, were $13,225,000 and $43,254,000, respectively and net income was $353,000 and $2,742,000, respectively, compared to 2011 when sales were $12,788,000 and $43,040,000, respectively and net income was $245,000 and $2,087,000, respectively.
2) The results for the three months, nine months, and twelve months ended September 30, 2012, were adversely affected by severance and non-compete expenses of $235,000, $872,000 and $1,057,000, respectively. The results for the three months ended September 30, 2011, were adversely affected by severance and non-compete expenses of $365,000. The results for the nine months and twelve months ended September 30, 2011, were adversely affected by severance and non-compete expenses of $1,142,000. The results for the nine months and twelve months ended September 30, 2011, were adversely affected by the accrual of $2,667,000 (a non-cash charge in May 2011) for the actuarial present value of a life annuity in accordance with the employment agreement of the former President and CEO.
3) The results for the twelve months ended September 30, 2012, included the sale of Springfield Brewing Company to Front Row Property LLC in November 2011. The selling price was $3,000,000, which included cash and a promissory note for $400,000 payable over five years. The gain on the sale of Springfield Brewing Company was $580,000.
4) The results for the twelve months ended September 30, 2012, were adversely affected by an increase in the LIFO reserve of $701,000. The results for the twelve months ended September 30, 2011, were adversely affected by an increase in the LIFO reserve of $370,000.

Paul Mueller Company is a manufacturer of high quality stainless steel equipment used in over 100 countries worldwide on dairy farms and in wide varieties of industrial applications, including food, dairy, and beverage processing; 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 32 of the Company's 2011 Annual Report. The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.

CONTACT: Marcelino Rodriguez, Secretary & Chief Financial Officer Springfield, Missouri (417) 575-9000Source:Paul Mueller Company