SPRINGFIELD, Mo., Aug. 2, 2006 (PRIMEZONE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its second quarter report for the period ended June 30, 2006, as follows:
Paul Mueller Company and Subsidiaries
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SIX-MONTH REPORT
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(Unaudited)
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CONSOLIDATED SUMMARIES OF OPERATIONS
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Three Months Ended Six Months Ended
June 30 June 30
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2006 2005 2006 2005
----------- ----------- ----------- -----------
Net Sales $34,115,000 $34,516,000 $59,591,000 $67,299,000
Cost of Sales 28,305,000 27,971,000 48,863,000 53,124,000
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Gross Profit $ 5,810,000 $ 6,545,000 $10,728,000 $14,175,000
Selling, General
and Admin.
Expenses 5,092,000 5,891,000 10,055,000 10,929,000
----------- ----------- ----------- -----------
Operating Income $ 718,000 $ 654,000 $ 673,000 $ 3,246,000
Other Income 228,000 90,000 454,000 203,000
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Income before
Provision for
Income Taxes $ 946,000 $ 744,000 $ 1,127,000 $ 3,449,000
Provision (Benefit)
for Income Taxes 264,000 399,000 298,000 1,079,000
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Net Income
(Loss) $ 682,000 $ 345,000 $ 829,000 $ 2,370,000
=========== =========== =========== ===========
Earnings (Loss) per
Common Share
Basic $ 0.59 $ 0.29 $ 0.72 $ 2.02
Diluted $ 0.59 $ 0.29 $ 0.71 $ 2.01
Twelve Months Ended
June 30
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2006 2005
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Net Sales $ 130,425,000 $ 136,526,000
Cost of Sales 105,722,000 113,320,000
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Gross Profit $ 24,703,000 $ 23,206,000
Selling, General and
Admin. Expenses 20,430,000 20,010,000
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Operating Income $ 4,273,000 $ 3,196,000
Other Income 542,000 379,000
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Income before
Provision for
Income Taxes $ 4,815,000 $ 3,575,000
Provision (Benefit) for
Income Taxes (261,000) 5,714,000
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Net Income (Loss) $ 5,076,000 $ (2,139,000)
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Earnings (Loss)
per Common Share -
Basic $ 4.40 $ (1.83)
Diluted $ 4.36 $ (1.83)
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FINANCIAL HIGHLIGHTS
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June 30 December 31
2006 2005
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Total Assets $70,532,000 $55,171,000
Working Capital $ 6,984,000 $ 7,705,000
Current Ratio 1.16 : 1 1.28 : 1
Net Worth $20,868,000 $21,449,000
Book Value Per Share $ 17.78 $ 18.46
Backlog $54,644,000 $37,027,000
NOTES:
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1) The effective tax rate for the three months and six months
ended June 30, 2006, varied from the statutory rate (34%) due to
the effect of the alternative minimum tax. The effective rate for
the quarter ended June 30, 2005, varied from the statutory rate
(34%) due to a non-cash charge made during the second quarter of
$520,000, after tax, and has been treated differently for book
and tax purposes; and the effective rate for the six months ended
June 30, 2005, was lower than the statutory rate (34%) due to
utilization of a net operating loss carryforward and tax credits.
2) The effective tax rate for the twelve months ended June 30,
2006, varied from the statutory rate (34%) due to the effect
of the alternative minimum tax and a partial reduction of the
valuation allowance established during 2004 for all the Company's
net deferred tax assets.
3) The tax provision for the twelve months ended June 30, 2005,
included a non-cash charge of $6,193,000 recorded during 2004 to
establish a valuation allowance for all the Company's net
deferred tax assets. A consolidated cumulative loss before tax
was incurred during the three-year period ended December 31,
2004, and is sufficient objective evidence to preclude the
assertion that the ultimate realization of the net deferred tax
assets is more likely than not; and a full valuation allowance
was required under the provisions of Statement of Financial
Accounting Standards (SFAS) No. 109, "Accounting for Income
Taxes." The consolidated cumulative loss before tax was
attributable principally to LIFO provisions recorded during the
three years ended December 31, 2004, due to a significant
increase in stainless steel prices.