PAUL MUELLER COMPANY

SIX-MONTH REPORT

Unaudited

(In thousands)

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Six Months Ended

Twelve Months Ended

June 30

June 30

June 30

2024

2023

2024

2023

2024

2023

Net Sales

$

65,670

$

59,931

$

116,026

$

116,282

$

228,900

$

221,050

Cost of Sales

45,871

41,379

80,431

80,933

158,123

165,816

Gross Profit

$

19,799

$

18,552

$

35,595

$

35,349

$

70,777

$

55,234

Selling, General and Administrative Expense

11,417

12,714

21,775

25,301

84,743

39,675

Operating Income (Loss)

$

8,382

$

5,838

$

13,820

$

10,048

$

(13,966

)

$

15,559

Interest Income (Expense)

70

(80

)

(1,178

)

(177

)

(1,351

)

(369

)

Other Income

506

613

2,050

1,333

3,383

2,310

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

$

8,958

$

6,371

$

14,692

$

11,204

$

(11,934

)

$

17,500

Provision (Benefit) for Income Taxes

2,154

1,558

3,439

2,724

(4,817

)

4,140

Net Income (Loss)

$

6,804

$

4,813

$

11,253

$

8,480

$

(7,117

)

$

13,360

Earnings (Loss) per Common Share ––

Basic and Diluted

$7.26

$4.43

$11.13

$7.81

($6.79

)

$12.31

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six Months Ended

June 30

2024

2023

Net Income

$

11,253

$

8,480

Other Comprehensive Income (Loss), Net of Tax:

Foreign Currency Translation Adjustment

(780

)

441

Comprehensive Income

$

10,473

$

8,921

CONSOLIDATED BALANCE SHEETS

June 30

December 31

2024

2023

Cash and Short-Term Investments

$

3,409

$

1,883

Marketable Securities

18,169

32,042

Accounts Receivable

35,662

25,166

Reserve for Doubtful Accounts

(1,141

)

Inventories (FIFO)

44,379

45,910

LIFO Reserve

(21,310

)

(21,774

)

Inventories (LIFO)

23,069

24,136

Current Net Investments in Sales-Type Leases

29

27

Other Current Assets

5,920

3,537

Current Assets

$

85,117

$

86,791

Net Property, Plant, and Equipment

44,253

42,011

Right of Use Assets

2,280

2,421

Other Assets

2,823

2,590

Long-Term Net Investments in Sales-Type Leases

-

456

Total Assets

$

134,473

$

134,269

Accounts Payable

$

15,284

$

11,041

Current Maturities and Short-Term Debt

631

640

Current Lease Liabilities

350

402

Advance Billings

18,865

27,383

Pension Liabilities

32

32

Other Current Liabilities

26,520

19,599

Current Liabilities

$

61,682

$

59,097

Long-Term Debt

8,407

8,880

Long-Term Pension Liabilities

217

233

Other Long-Term Liabilities

1,696

1,768

Lease Liabilities

777

775

Total Liabilities

$

72,779

$

70,753

Shareholders' Investment

61,694

63,516

Total Liabilities and Shareholders' Investment

$

134,473

$

134,269

SELECTED FINANCIAL DATA

June 30

December 31

2024

2023

Book Value per Common Share

$

65.85

$

58.50

Total Shares Outstanding

936,837

1,085,711

Backlog

$

187,336

$

97,350

CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT

Common Stock

Paid-in Surplus

Retained
Earnings

Treasury Stock

Accumulated
Other
Comprehensive
Income (Loss)

Total

Balance, December 31, 2023

$

1,508

$

9,708

$

67,181

$

(10,787

)

$

(4,094

)

$

63,516

Add (Deduct):

Net Income

11,253

11,253

Other Comprehensive Income, Net of Tax

(780

)

(780

)

Dividends, $.30 per Common Share

(378

)

(378

)

Treasury Stock Acquisition

(11,910

)

(11,910

)

Other

(7

)

(7

)

Balance, June 30, 2024

$

1,508

$

9,708

$

78,049

$

(22,697

)

$

(4,874

)

$

61,694

CONSOLIDATED STATEMENT OF CASH FLOWS

Six Months
Ended
June 30, 2024

Six Months
Ended
June 30, 2023

Operating Activities:

Net Income

$

11,253

$

8,480

Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:

Pension Contributions (Greater) Less than Expense

(16

)

(818

)

Bad Debt (Recovery) Expense

-

(19

)

Depreciation & Amortization

3,427

3,027

Loss (Gain) on Disposal of Equipment

175

-

(Gain) on Sales of Equipment

(106

)

(33

)

Change in Assets and Liabilities

(Inc) in Accts and Notes Receivable

(9,354

)

(3,854

)

Dec (Inc) in Inventories

1,290

(3,444

)

(Inc) in Prepayments

(2,389

)

(643

)

(Inc) in Net Investment in Sales-type leases

(80

)

(69

)

Dec in Other Assets

738

307

Inc in Accounts Payable

4,242

1,330

(Dec) Inc in Accrued Income Tax

(1,165

)

1,911

(Dec) Inc in Other Accrued Expenses

(227

)

4,919

(Dec) in Advanced Billings

(8,519

)

(4,647

)

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

8,306

(2,927

)

Inc in Lease Liability for Operating

57

-

Inc in Lease Liability for Financing

-

133

Principal payments of Lease Liability for Operating

(53

)

(137

)

(Dec) Inc in Long Term Deferred Tax Liabilities

(78

)

8

(Dec) Inc in Other Long-Term Liabilities

(93

)

599

Net Cash Provided by Operating Activities

$

7,408

$

4,123

Investing Activities

Intangibles

-

(62

)

Purchases of Marketable Securities

(24,649

)

-

Proceeds from Sales of Marketable Securities

38,522

-

Proceeds from Sales of Equipment

131

67

Additions to Property, Plant, and Equipment

(6,612

)

(3,190

)

Net Cash (Required) for Investing Activities

$

7,392

$

(3,185

)

Financing Activities

Principal payments of Lease Liability for Financing

(22

)

(98

)

(Repayment) of Short-Term Borrowings, Net

(751

)

(1,673

)

Proceeds of Short-Term Borrowings, Net

754

1,673

(Repayment) of Long-Term Debt

(422

)

(318

)

Dividends Paid

(378

)

(326

)

Treasury Stock Acquisitions

(11,910

)

-

Net Cash (Required) for Financing Activities

$

(12,729

)

$

(742

)

Effect of Exchange Rate Changes

(545

)

535

Net Increase in Cash and Cash Equivalents

$

1,526

$

731

Cash and Cash Equivalents at Beginning of Year

1,883

38,176

Cash and Cash Equivalents at End of Quarter

$

3,409

$

38,907