SPRINGFIELD, Mo., April 25, 2025 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the first quarter ended March 31, 2025.
| PAUL MUELLER COMPANY | |||||||||||||||||||||||||||||||
| THREE-MONTH REPORT | |||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||
| March 31 | March 31 | ||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Net Sales | $ | 58,860 | $ | 50,356 | $ | 257,089 | $ | 223,161 | |||||||||||||||||||||||
| Cost of Sales | 41,038 | 34,560 | 172,602 | 153,631 | |||||||||||||||||||||||||||
| Gross Profit | $ | 17,822 | $ | 15,796 | $ | 84,487 | $ | 69,530 | |||||||||||||||||||||||
| Selling, General and Administrative Expense | 11,533 | 10,358 | 47,423 | 86,040 | |||||||||||||||||||||||||||
| Operating Income (Loss) | $ | 6,289 | $ | 5,438 | $ | 37,064 | $ | (16,510 | ) | ||||||||||||||||||||||
| Interest Income (Expense) | 29 | (1,248 | ) | 976 | (1,501 | ) | |||||||||||||||||||||||||
| Other Income | 64 | 1,544 | 897 | 3,491 | |||||||||||||||||||||||||||
| Income (Loss) before Provision (Benefit) for Income Taxes | $ | 6,382 | $ | 5,734 | $ | 38,937 | $ | (14,520 | ) | ||||||||||||||||||||||
| Provision (Benefit) for Income Taxes | 1,454 | 1,285 | 8,786 | (5,413 | ) | ||||||||||||||||||||||||||
| Net Income (Loss) | $ | 4,928 | $ | 4,449 | $ | 30,151 | $ | (9,107 | ) | ||||||||||||||||||||||
| Earnings (Loss) per Common Share -- Basic and Diluted | $ | 5.26 | $ | 4.10 | $ | 32.18 | ($8.39) | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| March 31 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||
| Net Income | $ | 4,928 | $ | 4,449 | |||||||||||||||||||||||||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | 875 | (239 | ) | ||||||||||||||||||||||||||||
| Comprehensive Income | $ | 5,803 | $ | 4,210 | |||||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||||
| March 31 | December 31 | ||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 21,674 | $ | 21,169 | |||||||||||||||||||||||||||
| Marketable Securities | 33,634 | 24,446 | |||||||||||||||||||||||||||||
| Accounts Receivable, net | 21,551 | 31,266 | |||||||||||||||||||||||||||||
| Inventories (FIFO) | 47,587 | 40,905 | |||||||||||||||||||||||||||||
| LIFO Reserve | (21,529 | ) | (20,146 | ) | |||||||||||||||||||||||||||
| Inventories (LIFO) | 26,058 | 20,759 | |||||||||||||||||||||||||||||
| Current Net Investments in Sales-Type Leases | 44 | 39 | |||||||||||||||||||||||||||||
| Other Current Assets | 6,766 | 4,933 | |||||||||||||||||||||||||||||
| Current Assets | $ | 109,727 | $ | 102,612 | |||||||||||||||||||||||||||
| Net Property, Plant, and Equipment | 54,713 | 50,754 | |||||||||||||||||||||||||||||
| Right of Use Assets | 2,213 | 2,235 | |||||||||||||||||||||||||||||
| Other Assets | 1,411 | 1,862 | |||||||||||||||||||||||||||||
| Long-Term Net Investments in Sales-Type Leases | 1,494 | 1,211 | |||||||||||||||||||||||||||||
| Total Assets | $ | 169,558 | $ | 158,674 | |||||||||||||||||||||||||||
| Accounts Payable | $ | 13,037 | $ | 17,588 | |||||||||||||||||||||||||||
| Current Maturities and Short-Term debt | 432 | 3,466 | |||||||||||||||||||||||||||||
| Current Lease Liabilities | 350 | 336 | |||||||||||||||||||||||||||||
| Advance Billings | 34,136 | 26,788 | |||||||||||||||||||||||||||||
| Other Current Liabilities | 30,281 | 23,226 | |||||||||||||||||||||||||||||
| Current Liabilities | $ | 78,236 | $ | 71,404 | |||||||||||||||||||||||||||
| Long-Term Debt | 5,184 | 5,096 | |||||||||||||||||||||||||||||
| Other Long-Term Liabilities | 628 | 2,329 | |||||||||||||||||||||||||||||
| Lease Liabilities | 973 | 896 | |||||||||||||||||||||||||||||
| Total Liabilities | $ | 85,021 | $ | 79,725 | |||||||||||||||||||||||||||
| Shareholders' Investment | 84,537 | 78,949 | |||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Investment | $ | 169,558 | $ | 158,674 | |||||||||||||||||||||||||||
| SELECTED FINANCIAL DATA | |||||||||||||||||||||||||||||||||
| March 31 | December 31 | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Book Value per Common Share | $ | 90.24 | $ | 84.27 | |||||||||||||||||||||||||||||
| Total Shares Outstanding | 936,837 | 936,837 | |||||||||||||||||||||||||||||||
| Backlog | $ | 254,516 | $ | 153,685 | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | |||||||||||||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 1,508 | $ | 9,708 | $ | 96,037 | $ | (22,697 | ) | $ | (5,607 | ) | $ | 78,949 | |||||||||||||||||||
| Add (Deduct): | |||||||||||||||||||||||||||||||||
| Net Income | 4,928 | 4,928 | |||||||||||||||||||||||||||||||
| Other Comprehensive (Loss) Net of Tax | 875 | 875 | |||||||||||||||||||||||||||||||
| Dividends, $.23 per Common Share | (215 | ) | (215 | ) | |||||||||||||||||||||||||||||
| Other | - | ||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | 1,508 | $ | 9,708 | $ | 100,750 | $ | (22,697 | ) | $ | (4,732 | ) | $ | 84,537 | |||||||||||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
| Operating Activities: | |||||||||||||||||||||||||||
| Net Income | $ | 4,928 | $ | 4,449 | |||||||||||||||||||||||
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||||||||||||||||||
| Pension Contributions (Greater) Less than Expense | - | (8 | ) | ||||||||||||||||||||||||
| Depreciation & Amortization | 1,557 | 1,736 | |||||||||||||||||||||||||
| Loss (Gain) on Disposal of Equipment | 197 | 18 | |||||||||||||||||||||||||
| Change in Assets and Liabilities | |||||||||||||||||||||||||||
| Dec (Inc) in Accts and Notes Receivable | 9,716 | (42 | ) | ||||||||||||||||||||||||
| (Inc) in Cost in Excess of Estimated Earnings and Billings | (73 | ) | (35 | ) | |||||||||||||||||||||||
| (Inc) in Inventories | (5,000 | ) | (1,901 | ) | |||||||||||||||||||||||
| (Inc) in Prepayments | (2,048 | ) | (3,772 | ) | |||||||||||||||||||||||
| (Inc) in Net Investment in Sales-Type Leases | (288 | ) | (25 | ) | |||||||||||||||||||||||
| Dec in Other Assets | 556 | 469 | |||||||||||||||||||||||||
| Dec in Deferred Taxes | 288 | - | |||||||||||||||||||||||||
| (Dec) Inc in Accounts Payable | (4,550 | ) | 952 | ||||||||||||||||||||||||
| Inc in Accrued Income Tax | 1,454 | 1,501 | |||||||||||||||||||||||||
| Inc (Dec) in Accrued Expenses | 2,554 | (654 | ) | ||||||||||||||||||||||||
| Inc in Advanced Billings | 7,348 | 6,051 | |||||||||||||||||||||||||
| Inc (Dec) in Billings in Excess of Costs and Estimated Earnings | 3,079 | (1,730 | ) | ||||||||||||||||||||||||
| Inc in Lease Liability for Operating | - | 24 | |||||||||||||||||||||||||
| Principal payments on Lease Liability for Operating | (71 | ) | (41 | ) | |||||||||||||||||||||||
| (Dec) in Long Term Liabilities | (1,774 | ) | (12 | ) | |||||||||||||||||||||||
| (Dec) in Long Term Deferred Tax Liabilities | - | (82 | ) | ||||||||||||||||||||||||
| Net Cash Provided by Operating Activities | $ | 17,873 | $ | 6,898 | |||||||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||||||
| Proceeds from Sales of Equipment | - | 15 | |||||||||||||||||||||||||
| Purchases of Marketable Securities | (10,452 | ) | (12,221 | ) | |||||||||||||||||||||||
| Proceeds from Sales of Marketable Securities | 1,264 | 12,575 | |||||||||||||||||||||||||
| Additions to Property, Plant, and Equipment | (4,957 | ) | (3,064 | ) | |||||||||||||||||||||||
| Net Cash (Required) for Investing Activities | $ | (14,145 | ) | $ | (2,695 | ) | |||||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||||||
| Principal payments on Lease Liability for Financing | (26 | ) | (52 | ) | |||||||||||||||||||||||
| Proceeds from Short-Term Borrowings | 2,136 | 277 | |||||||||||||||||||||||||
| (Repayment) of Short-Term Borrowings | (5,186 | ) | (277 | ) | |||||||||||||||||||||||
| (Repayment) of Long-Term Debt | (334 | ) | (158 | ) | |||||||||||||||||||||||
| Dividends paid | (215 | ) | (163 | ) | |||||||||||||||||||||||
| Net Cash (Required) for Financing Activities | $ | (3,625 | ) | $ | (373 | ) | |||||||||||||||||||||
| Effect of Exchange Rate Changes | 402 | (69 | ) | ||||||||||||||||||||||||
| Net Increase in Cash | $ | 505 | $ | 3,761 | |||||||||||||||||||||||
| Cash at Beginning of Year | 21,169 | 1,883 | |||||||||||||||||||||||||
| Cash at End of Quarter | $ | 21,674 | $ | 5,644 | |||||||||||||||||||||||
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 March 31.
| Three Months Ended March 31 | |||||
| Revenue | 2025 | 2024 | |||
| Domestic | $ | 50,077 | $ | 38,877 | |
| Mueller BV | $ | 8,783 | $ | 11,825 | |
| Eliminations | $ | - | $ | (346 | ) |
| Net Revenue | $ | 58,860 | $ | 50,356 | |
The chart below depicts the net revenue on a consolidating basis for the twelve months ended March 31.
| Twelve Months Ended March 31 | ||||||
| Revenue | 2025 | 2024 | ||||
| Domestic | $ | 213,382 | $ | 176,298 | ||
| Mueller BV | $ | 44,916 | $ | 48,231 | ||
| Eliminations | $ | (1,209 | ) | $ | (1,368 | ) |
| Net Revenue | $ | 257,089 | $ | 223,161 | ||
The chart below depicts the net income (loss) on a consolidating basis for the three months ended March 31.
| Three Months Ended March 31 | |||||
| Net Income | 2025 | 2024 | |||
| Domestic | $ | 5,428 | $ | 4,048 | |
| Mueller BV | $ | (494 | ) | $ | 374 |
| Eliminations | $ | (6 | ) | $ | 27 |
| Net Income | $ | 4,928 | $ | 4,449 | |
The chart below depicts the net income on a consolidating basis for the twelve months ended March 31.
| Twelve Months Ended March 31 | ||||||
| Net Income | 2025 | 2024 | ||||
| Domestic | $ | 29,714 | $ | (11,730 | ) | |
| Mueller BV | $ | 468 | $ | 2,621 | ||
| Eliminations | $ | (31 | ) | $ | 2 | |
| Net Income (Loss) | $ | 30,151 | $ | (9,107 | ) | |
B.March 31, 2025 backlog is $254.5 million compared to $95.2 million at March 31, 2024. The majority of this backlog is in the U.S. where the backlog is $247.7 million at March 31, 2025 compared to $87.8 million at March 31, 2024. The $159.3 million increase in U.S. backlog is primarily from the Industrial Equipment segment which accepted approximately $120 million in purchase orders in March 2025 to be completed through the end of 2026. In the Netherlands, the backlog is relatively flat -- $7.5 million at March 31, 2025 versus $7.9 million on March 31, 2024.
C.Revenue is up from the previous year by $8.5 million on a three-month basis and up $33.9 million for the trailing twelve months. Operations in the U.S. are up $11.2 million for the three months and $37.1 million for the twelve months with the increases primarily from the Industrial Equipment segment. In the Netherlands, revenues are down slightly over $3 million on a three-month and twelve-month basis, primarily from the Benelux where environmental regulations continue to be uncertain.
Net Income is up $0.5 million on a three-month and up $39.3 million on a twelve-month basis before removing the pension settlement charges. In the Netherlands, earnings are down $0.9 million for three months and $2.2 million over twelve months on lower revenues.
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) is up $3.4 million for the three months and up $13.2 million for the trailing twelve months primarily from strong results in the Industrial Equipment segment.
| Three Months Ended March 31 | Twelve Months Ended March 31 | |||||||||||
| (In Thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Domestic Net Income | $ | 5,428 | $ | 4,048 | $ | 29,715 | $ | (11,730 | ) | |||
| Income Tax Expense | $ | 1,628 | $ | 1,171 | $ | 8,609 | $ | (4,991 | ) | |||
| Domestic EBT - GAAP | $ | 7,056 | $ | 5,219 | $ | 38,324 | $ | (16,721 | ) | |||
| LIFO Adjustment | $ | 1,383 | $ | (217 | ) | $ | (28 | ) | $ | 51 | ||
| Pension Adjustment | $ | - | $ | - | $ | - | $ | 41,774 | ||||
| Domestic EBT - Non-GAAP | $ | 8,439 | $ | 5,002 | $ | 38,296 | $ | 25,104 | ||||
D.Effective March 26, 2025, the Company extended its domestic bank borrowing facility until March 31, 2026.
E.On March 28, 2025, the Company paid off the amortizing note secured by domestic land, building, and equipment in the amount of $3,019,000.
F.On March 31, 2025, the Board of Directors authorized a tender offer effective from March 31, 2025, through May 7, 2025, for up to $15 million of the Company's common stock at a price of $250 per share.
G.On April 15, 2025, the Company announced the second phase of the expansion to the Components Products facility. This $17.9 million expansion adds 20,000 square feet to increase the capacity for producing tank heads, cones, and shells. It will also allow the production of thicker materials to access new markets.
H.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 1.08 for March 2024, 1.04 for December 2024, and 1.08 for March 2025, 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 2024 annual report, available at
www.paulmueller.com.
Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
kjeffries@paulmueller.com | https://paulmueller.com
