SPRINGFIELD, Mo., Feb. 28, 2007 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today reported its earnings for the year 2006.
PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED SUMMARIES OF OPERATIONS
(UNAUDITED)
Three Months Twelve Months
Ended December 31 Ended December 31
---------------------- -----------------------
2006 2005 2006 2005
---------- ----------- ----------- -----------
Net Sales $ 56,598,000 $ 39,512,000 $ 152,887,000 $ 138,133,000
Cost of Sales 45,719,000 31,006,000 125,442,000 109,983,000
------------ ------------ ------------- -------------
Gross Profit $ 10,879,000 $ 8,506,000 $ 27,445,000 $ 28,150,000
Selling,
General &
Administrative
Expenses 6,490,000 5,343,000 22,146,000 21,304,000
------------ ------------ ------------- -------------
Operating
Income $ 4,389,000 $ 3,163,000 $ 5,299,000 $ 6,846,000
Other Income
(Expense) (173,000) (11,000) 494,000 291,000
------------ ------------ ------------- -------------
Income before
Provision
(Benefit)
for Income
Taxes $ 4,216,000 $ 3,152,000 $ 5,793,000 $ 7,137,000
Provision
(Benefit)
for Income
Taxes (1,779,000) (677,000) (1,229,000) 520,000
------------ ------------ ------------- -------------
Net Income $ 5,995,000 $ 3,829,000 $ 7,022,000 $ 6,617,000
============ =========== =========== ===========
Earnings per
Common Share:
Basic $ 5.21 $ 3.33 $ 6.10 $ 5.68
Diluted $ 5.12 $ 3.31 $ 6.04 $ 5.64
NOTES: 1) A non-cash credit of $3,157,000 was recorded during the
fourth quarter of 2006 to reduce the balance of a
valuation allowance established during 2004 for all of
the Company's net deferred tax assets. The reduction in
the valuation allowance is directly related to the
improved financial performance of the Company during the
past two years, and its backlog of $116,913,000 as of
December 31, 2006. The Company's recent performance and
the December 31, 2006, backlog provide positive evidence
that it is more likely than not that the Company can
realize its net deferred tax assets. The non-cash credit
increased net income for 2006 by $3,157,000, and it has
been included in the tax provisions on the above
Consolidated Summaries of Operations for the three months
and twelve months ended December 31, 2006.
2) Fourth quarter 2006 results were unfavorably affected by
an adjustment to the LIFO reserve, which decreased net
income by $285,400, or $0.25 per share ($0.24 diluted).
The high year-end inventory level contributed to the
adjustment.
3) For the year ended December 31, 2006, net income was
adversely affected by an increase to the LIFO reserve,
which reduced net income by $2,202,400, or $1.91 per share
($1.89 diluted). For the year ended December 31, 2005,
net income was favorably affected by a reduction to the
LIFO reserve, which increased net income by $427,400,
or $0.37 per share ($0.36 diluted).
4) A non-cash credit of $1,200,000 was recorded during the
fourth quarter of 2005 to reduce a portion of the valuation
allowance established during 2004 for all of the Company's
net deferred tax assets. The valuation allowance was
reduced due to the improved performance of the Company
during 2005, particularly during the fourth quarter, when
net income was $3,829,000. The non-cash credit increased
net income for 2005 by $1,200,000 and has been included in
the tax provisions on the above Consolidated Summaries of
Operations for the three months and twelve months ended
December 31, 2005. The effective tax rate for the year
2005 was also favorably affected by the utilization of a
net operating loss carryforward and tax credits.
5) Fourth quarter 2005 results were favorably affected by an
adjustment to the LIFO reserve, which increased net income
by $1,085,000, or $0.94 per share on a basic and diluted
basis. The favorable adjustment was due to a significant
reduction in inventory during the fourth quarter of 2005.