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| IMMEDIATE RELEASE | | | | | | | TRADED: | | OTC (MUEL) | | | | |
| THURSDAY, OCTOBER 27 , 2011 | | | | | | FOR FURTHER INFORMATION CONTACT: | | |
| | | | | | | | | | | | Marcelino Rodriguez – Secretary & CFO |
| | | | | | | | | | | | Springfield, Missouri | | |
| | | | | | | | | | | | (417) 831-3000 | | | | |
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| SPRINGFIELD, MISSOURI -- PAUL MUELLER COMPANY (OTC: MUEL.PK) TODAY RELEASED ITS THIRD QUARTER REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 2011, AS FOLLOWS: |
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| PAUL MUELLER COMPANY AND SUBSIDIARIES |
| NINE-MONTH REPORT |
| Unaudited |
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| CONSOLIDATED SUMMARIES OF OPERATIONS |
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| | | | | | Three Months Ended | | Nine Months Ended | | Twelve Months Ended |
| | | | | | September 30 | | September 30 | | September 30 |
| | | | | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 |
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| Net Sales | | | | | $ 36,814,000 | | $ 36,962,000 | | $ 110,203,000 | | $ 94,755,000 | | $ 145,081,000 | | $ 135,111,000 |
| Cost of Sales | | | | 24,748,000 | | 28,773,000 | | 74,352,000 | | 69,827,000 | | 98,471,000 | | 100,204,000 |
| Gross Profit | | | | $ 12,066,000 | | $ 8,189,000 | | $ 35,851,000 | | $ 24,928,000 | | $ 46,610,000 | | $ 34,907,000 |
| Selling, General and Administrative Expense | | 11,074,000 | | 8,986,000 | | 34,260,000 | | 28,391,000 | | 45,206,000 | | 38,267,000 |
| Operating Income | | | | $ 992,000 | | $ (797,000) | | $ 1,591,000 | | $ (3,463,000) | | $ 1,404,000 | | $ (3,360,000) |
| Other Income (Expense) | | | (987,000) | | (662,000) | | (2,368,000) | | (1,741,000) | | (2,745,000) | | (2,516,000) |
| Income before Provision for Income Taxes | | $ 5,000 | | $ (1,459,000) | | $ (777,000) | | $ (5,204,000) | | $ (1,341,000) | | $ (5,876,000) |
| Provision for Income Taxes | | | 121,000 | | (452,000) | | 797,000 | | (2,043,000) | | 6,010,000 | | (3,076,000) |
| Net Income | | | | | $ (116,000) | | $ (1,007,000) | | $ (1,574,000) | | $ (3,161,000) | | $ (7,351,000) | | $ (2,800,000) |
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| Earnings per Common Share –– | Basic | | ($0.10) | | ($0.84) | | ($1.32) | | ($2.65) | | ($6.15) | | ($2.22) |
| | | | Diluted | | ($0.10) | | ($0.84) | | ($1.32) | | ($2.65) | | ($6.15) | | ($2.22) |
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| NOTES: | 1) | Domestic sales for the third quarter of 2011 were $24,026,000 and the net loss was $361,000, compared to 2010 when sales were $24,343,000 and the net loss was $1,305,000. For 2011, Mueller BV sales for the third quarter were $12,788,000 and net income was $245,000, compared to 2010 when sales were $12,619,000 and net income was $298,000. | | | | |
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| 2) | The results for the three months, nine months, and twelve months ended 9/30/11, were adversely affected by severance and noncompete payments totaling $961,000 and the accrual of $2,721,000 (a current non-cash charge) for the actuarial present value of a life annuity all of which are in accordance with the employment agreement of the former President and CEO. | | | | |
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| 3) | The results for the three months, nine months, and twelve months ended 9/30/11, were adversely affected by one time fees associated with the new bank financing (credit revolver and terms loans) totaling $670,000. | | | | |
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| 4) | The provisions for income taxes for the three months, nine months, and twelve months ended September 30, 2011 included a valuation allowance against a portion of the company's net deferred tax assets of $126,000 971,000 and 1,748,000 respectively | | | | |
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| SUMMARIZED CONSOLIDATED BALANCE SHEETS |
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| | | | | | | | | | September 30 | | December 31 | | | | |
| | | | | | | | | | 2011 | | 2010 | | | | |
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| | | Current Assets | | $ 56,049,000 | | $ 40,997,000 | | | | |
| | | Net Property, Plant, and Equipment | | 40,787,000 | | 44,829,000 | |
| | | Other assets | | 16,176,000 | | 16,452,000 |
| | | Total Assets | | $ 113,012,000 | | $ 102,278,000 |
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| | | Current Liabilities | | $ 61,044,000 | | $ 46,047,000 |
| | | Long-Term Debt | | 15,459,000 | | 18,177,000 |
| | | Other Long-Term Liabilities | | 19,488,000 | | 20,231,000 |
| | | Shareholders' Investment | | 17,021,000 | | 17,823,000 | | | | |
| | | Total Liabilities and Shareholders' Investment | | $ 113,012,000 | | $ 102,278,000 | | | | |
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| | | Book Value per Common Share | | $13.18 | | $13.81 | | | | |
| | | Total Shares Outstanding | | 1,291,074 | | 1,291,074 | | | | |
| | | Backlog | | $ 61,529,000 | | $ 31,044,000 | | October 27, 2011 | | |
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