PAUL MUELLER COMPANY

TWELVE-MONTH REPORT

(In thousands)

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Twelve Months Ended

December 31

December 31

2023

2022

2023

2022

Net Sales

$

55,786

$

59,002

$

229,156

$

191,520

Cost of Sales

38,744

50,082

158,625

152,286

Gross Profit

$

17,042

$

8,920

$

70,531

$

39,234

Selling, General and Administrative Expense

51,723

4,679

88,269

35,011

Operating Income (Loss)

$

(34,681

)

$

4,241

$

(17,738

)

$

4,223

Interest Expense

(91

)

(87

)

(350

)

(697

)

Other Income

856

939

2,666

1,115

Income (Loss) before Provision (Benefit) for Income Taxes

$

(33,916

)

$

5,093

$

(15,422

)

$

4,641

Provision (Benefit) for Income Taxes

(10,042

)

1,193

(5,532

)

1,032

Net Income (Loss)

$

(23,874

)

$

3,900

$

(9,890

)

$

3,609

Earnings (Loss) per Common Share –– Basic and Diluted

($21.99

)

$

3.59

($9.11

)

$

3.32

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Twelve Months Ended

December 31

2023

2022

Net Income (Loss)

$

(9,890

)

$

3,609

Other Comprehensive Income (Loss), Net of Tax:

Foreign Currency Translation Adjustment

677

(1,416

)

Change in Pension Liability

33,322

1,262

Comprehensive Income

$

24,109

$

3,455

CONSOLIDATED BALANCE SHEETS

December 31

December 31

2023

2022

Cash

$

1,883

$

679

Marketable Securities

32,042

37,497

Accounts Receivable

25,166

20,580

Inventories (FIFO)

45,910

48,515

LIFO Reserve

(21,774

)

(21,691

)

Inventories (LIFO)

24,136

26,824

Current Net Investments in Sales-Type Leases

27

24

Other Current Assets

3,537

3,156

Current Assets

$

86,791

$

88,760

Net Property, Plant, and Equipment

42,011

41,511

Right of Use Assets

2,421

2,304

Other Assets

2,590

5,041

Long-Term Net Investments in Sales-Type Leases

456

312

Total Assets

$

134,269

$

137,928

Accounts Payable

$

11,041

$

11,802

Current Maturities and Short-Term debt

640

628

Current Lease Liabilities

402

448

Advance Billings

27,383

41,288

Pension Liabilities

32

11,558

Other Current Liabilities

19,599

20,062

Current Liabilities

$

59,097

$

85,786

Long-Term Debt

8,880

9,349

Long-Term Pension Liabilities

233

236

Other Long-Term Liabilities

1,768

1,737

Lease Liabilities

775

762

Total Liabilities

$

70,753

$

97,870

Shareholders' Investment

63,516

40,058

Total Liabilities and Shareholders' Investment

$

134,269

$

137,928

SELECTED FINANCIAL DATA

December 31

December 31

2023

2022

Book Value per Common Share

$

58.50

$

36.90

Total Shares Outstanding

1,085,711

1,085,711

Backlog

$

97,350

$

132,829

 CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT

Common
Stock

Paid-in
Surplus

Retained
Earnings

Treasury
Stock

Accumulated Other
Comprehensive
Income (Loss)

Total

Balance, December 31, 2022

$

1,508

$

9,708

$

75,721

$

(10,787

)

$

(36,092

)

$

40,058

Add (Deduct):

Net (Loss)

(9,890

)

(9,890

)

Other Comprehensive Income, Net of Tax

2,001

31,998

33,999

Dividends, $.60 per Common Share

(651

)

(651

)

Treasury Stock Acquisition

Balance, December 31, 2023

$

1,508

$

9,708

$

67,181

$

(10,787

)

$

(4,094

)

$

63,516

 CONSOLIDATED STATEMENT OF CASH FLOWS

Twelve Months
Ended
December 31, 2023

Twelve Months
Ended
December 31, 2022

Operating Activities:

Net Income (Loss)

$

(9,890

)

$

3,609

Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:

Pension Contributions (Greater) Less than Expense

21,793

(4,980

)

Bad Debt Expense

275

81

Depreciation & Amortization

6,641

6,156

Deferred Tax (Benefit) Expense

(9,230

)

831

Loss (Gain) on Disposal of Equipment

796

(1

)

Change in Assets and Liabilities

(Inc) Dec in Accts and Notes Receivable

(4,861

)

5,113

Dec (Inc) in Inventories

2,688

(370

)

Dec (Inc) in Prepayments

394

(1,052

)

(Inc) in Net Investment in Sales-Type Leases

(147

)

(149

)

Dec in Other Assets

381

347

Dec in Deferred Taxes

11,550

437

(Dec) in Accounts Payable

(761

)

(2,668

)

Inc in Accrued Income Tax

1,536

-

Inc in Accrued Expenses

5,014

414

(Dec) Inc in Advanced Billings

(13,905

)

22,693

(Dec) Inc in Billings in Excess of Costs and Estimated Earnings

(7,013

)

10,552

Inc in Lease Liability for Operating

-

421

Inc in Lease Liability for Financing

133

33

Principal payments on Lease Liability for Operating

(85

)

(350

)

(Dec) in Long Term Liabilities

(1,058

)

(111

)

Net Cash Provided by Operating Activities

$

4,251

$

41,006

Investing Activities

Proceeds from Sales of Equipment

171

26

Investments in Marketable Securities

5,455

(29,466

)

Additions to Property, Plant, and Equipment

(7,704

)

(9,067

)

Net Cash (Required) for Investing Activities

$

(2,078

)

$

(38,507

)

Financing Activities

Principal payments on Lease Liability for Financing

(116

)

(201

)

(Repayment) of Short-Term Borrowings, Net

-

(642

)

(Repayment) of Long-Term Debt

(634

)

(4,045

)

Dividends paid

(651

)

(652

)

Treasury Stock Acquisitions

-

(38

)

Net Cash (Required) for Financing Activities

$

(1,401

)

$

(5,578

)

Effect of Exchange Rate Changes

432

508

Net Increase (Decrease) in Cash

$

1,204

$

(2,571

)

Cash at Beginning of Year

679

3,250

Cash at End of Year

$

1,883

$

679