SPRINGFIELD, Mo., Feb. 27, 2008 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today reported its earnings for the year 2007.
PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED SUMMARIES OF OPERATIONS
(UNAUDITED)
Three Months Twelve Months
Ended December 31 Ended December 31
------------------------ --------------------------
2007 2006 2007 2006
----------- ----------- ------------ ------------
Net Sales $79,444,000 $56,598,000 $241,147,000 $152,887,000
Cost of Sales 63,578,000 45,719,000 200,859,000 125,442,000
----------- ----------- ------------ ------------
Gross
Profit $15,866,000 $10,879,000 $ 40,288,000 $ 27,445,000
Selling, General
& Administrative
Expenses 6,298,000 6,490,000 25,275,000 22,146,000
----------- ----------- ------------ ------------
Operating
Income $ 9,568,000 $ 4,389,000 $ 15,013,000 $ 5,299,000
Other Income
(Expense) (1,103,000) (173,000) (419,000) 494,000
----------- ----------- ------------ ------------
Income before
Provision
(Benefit)
for Income
Taxes $ 8,465,000 $ 4,216,000 $ 14,594,000 $ 5,793,000
Provision
(Benefit)
for Income
Taxes 3,276,000 (1,779,000) 5,508,000 (1,229,000)
----------- ----------- ------------ ------------
Net Income $ 5,189,000 $ 5,995,000 $ 9,086,000 $ 7,022,000
=========== =========== ============ ============
Earnings per
Common Share:
Basic $ 4.49 $ 5.21 $ 7.88 $ 6.10
Diluted $ 4.42 $ 5.12 $ 7.74 $ 6.04
NOTES: 1) Fourth quarter 2007 results were favorably affected by an
adjustment to the LIFO reserve, which increased net income
by $2,163,000, or $1.87 per share ($1.84 diluted). The
reduction in the inventory level during the fourth quarter
due to the high level of sales contributed to the
adjustment.
2) For the year ended December 31, 2007, net income was
adversely affected by an increase to the LIFO reserve, which
reduced net income by $1,005,000, or $0.87 per share ($0.86
diluted). The high price of stainless steel during 2007
contributed to the LIFO reserve increase.
3) A noncash 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 was directly related to the improved financial
performance of the Company during 2006 and 2005, and the
backlog of $116,913,000 as of December 31, 2006. The noncash
credit increased net income for 2006 by $3,157,000 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, 2006.
4) Fourth quarter 2006 results were unfavorably affected by an
adjustment to the LIFO reserve, which decreased net income
by $285,000, or $0.25 per share ($0.24 diluted). The high
year-end inventory level contributed to the adjustment.
5) For the year ended December 31, 2006, net income was
adversely affected by an increase to the LIFO reserve, which
reduced net income by $2,202,000, or $1.91 per share ($1.89
diluted). The increase in inventory during 2006 and the
increase in stainless steel over the prior year contributed
to the LIFO reserve increase.