SPRINGFIELD, Mo., July 21, 2008 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its second quarter report for the period ended June 30, 2008, as follows:
PAUL MUELLER COMPANY AND SUBSIDIARIES
SIX-MONTH REPORT
Unaudited
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CONSOLIDATED SUMMARIES OF OPERATIONS
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Three Months Ended Six Months Ended
June 30 June 30
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net Sales $ 50,176,000 $ 53,740,000 $102,031,000 $103,279,000
Cost of
Sales 41,218,000 44,574,000 84,735,000 85,593,000
------------ ------------ ------------ ------------
Gross
Profit $ 8,958,000 $ 9,166,000 $ 17,296,000 $ 17,686,000
Selling,
General and
Administration
Expense 7,433,000 6,666,000 14,220,000 12,420,000
------------ ------------ ------------ ------------
Operating
Income $ 1,525,000 $ 2,500,000 $ 3,076,000 $ 5,266,000
Other Income
(Expense) (124,000) 308,000 116,000 499,000
------------ ------------ ------------ ------------
Income before
Provision
for Income
Taxes $ 1,401,000 $ 2,808,000 $ 3,192,000 $ 5,765,000
Provision
for Income
Taxes 481,000 1,022,000 1,136,000 2,095,000
------------ ------------ ------------ ------------
Net Income $ 920,000 $ 1,786,000 $ 2,056,000 $ 3,670,000
============ ============ ============ ============
Earnings per
Common
Share -
Basic $0.79 $1.55 $1.78 $3.18
Diluted $0.78 $1.52 $1.74 $3.13
Twelve Months Ended
June 30
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2008 2007
------------ ------------
Net Sales $239,899,000 $196,575,000
Cost of
Sales 200,001,000 162,172,000
------------ ------------
Gross
Profit $ 39,898,000 $ 34,403,000
Selling,
General and
Administration
Expense 27,075,000 24,511,000
------------ ------------
Operating
Income $ 12,823,000 $ 9,892,000
Other Income
(Expense) (802,000) 539,000
------------ ------------
Income before
Provision
for Income
Taxes $ 12,021,000 $ 10,431,000
Provision
for Income
Taxes 4,549,000 568,000
------------ ------------
Net Income $ 7,472,000 $ 9,863,000
============ ============
Earnings per
Common
Share -
Basic $6.47 $8.56
Diluted $6.35 $8.43
NOTES: 1) The second quarter of 2008 includes the results for
Mueller B.V., a wholly owned Dutch subsidiary, which
acquired all the outstanding stock of Paltrok Beheer
B.V. as of April 18, 2008, the acquisition date.
Mueller B.V.'s sales were $6,025,000, and net income
was $347,000 for the second quarter of 2008. Mueller
B.V.'s results for the quarter were adversely affected
by amortization of $349,000, after tax, of an
intangible asset (the value of the backlog at the
acquisition date) and a settlement provision of
$248,000, after tax. The backlog reported as of June
30, 2008, includes $14,564,000 for Mueller B.V.
2) Net income for the second quarter of 2008 was adversely
affected by an increase in the LIFO reserve of
$154,000, after tax, while net income for the second
quarter of 2007 was adversely affected by an increase
in the LIFO reserve of $1,538,000, after tax. Net
income for the six months ended June 30, 2008, was
adversely affected by an increase in the LIFO reserve
of $384,000, after tax, while net income for the first
six months ended June 30, 2007, was adversely affected
by an increase in the LIFO reserve of $2,122,000, after
tax.
3) The effective tax rate for the twelve months ended June
30, 2007, varied from the statutory rate (34%) due to a
noncash credit of $3,157,000 recorded during the fourth
quarter of 2006 to reduce the remaining balance of the
valuation allowance established during 2004 for all of
the Company's net deferred tax assets.
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SUMMARIZED CONSOLIDATED BALANCE SHEETS
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June 30, December 31,
2008 2007
------------ ------------
Current Assets $ 69,601,000 $ 69,785,000
Net Property, Plant, and Equipment 37,566,000 27,415,000
Other assets 8,420,000 4,932,000
------------ ------------
Total Assets $115,587,000 $102,132,000
Current Liabilities $ 57,000,000 $ 57,218,000
Long-Term Debt 14,890,000 3,083,000
Other Long-Term Liabilities 15,601,000 14,434,000
Shareholders' Investment 28,096,000 27,397,000
------------ ------------
Total Liabilities and
Shareholders' Investment $115,587,000 $102,132,000
Book Value per Common Share $23.15 $22.86
Backlog $ 88,163,000 $ 69,270,000