PAUL MUELLER COMPANY

NINE-MONTH REPORT

Unaudited

(In thousands)

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Nine Months Ended

Twelve Months Ended

September 30

September 30

September 30

2024

2023

2024

2023

2024

2023

Net Sales

$

62,085

$

57,088

$

178,111

$

173,370

$

233,897

$

232,372

Cost of Sales

41,028

38,948

121,459

119,881

160,203

169,963

Gross Profit

$

21,057

$

18,140

$

56,652

$

53,489

$

73,694

$

62,409

Selling, General and Administrative Expense

12,238

11,245

34,013

36,546

85,736

41,225

Operating Income (Loss)

$

8,819

$

6,895

$

22,639

$

16,943

$

(12,042

)

$

21,184

Interest Expense ¹

(83

)

(82

)

(256

)

(259

)

(347

)

(346

)

Other Income ¹

840

477

1,885

1,810

2,741

2,749

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

$

9,576

$

7,290

$

24,268

$

18,494

$

(9,648

)

$

23,587

Provision (Benefit) for Income Taxes

2,297

1,786

5,736

4,510

(4,306

)

5,703

Net Income (Loss)

$

7,279

$

5,504

$

18,532

$

13,984

$

(5,342

)

$

17,884

Earnings (Loss) per Common Share - Basic and Diluted

$

7.77

$

5.07

$

18.79

$

12.88

$

(5.28

)

$

16.47

1. The elimination of intercompany interest was incorrect in the 2nd Quarter release causing interest income and interest expense to be overstated by the same amount, however, net income was still correct. For this financial presentation, the error was corrected as of June 30th so the three-month, nine-month and twelve-month interest income and expense would be presented correctly.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine Months Ended

September 30

2024

2023

Net Income

$

18,532

$

13,984

Other Comprehensive Income (Loss), Net of Tax:

Foreign Currency Translation Adjustment

526

(275

)

Comprehensive Income

$

19,058

$

13,709

CONSOLIDATED BALANCE SHEETS

September 30

December 31

2024

2023

Cash and Cash Equivalents ²

$

16,030

$

5,894

Marketable Securities ²

15,070

28,031

Accounts Receivable

31,363

25,166

Inventories (FIFO)

45,450

45,910

LIFO Reserve

(21,461

)

(21,774

)

Inventories (LIFO)

23,989

24,136

Current Net Investments in Sales-Type Leases

35

27

Other Current Assets

6,262

3,537

Current Assets

$

92,749

$

86,791

Net Property, Plant, and Equipment

45,890

42,011

Right of Use Assets

2,271

2,421

Other Assets

2,409

2,590

Long-Term Net Investments in Sales-Type Leases

604

456

Total Assets

$

143,923

$

134,269

Accounts Payable

$

13,003

$

11,041

Current Maturities and Short-Term Debt

648

640

Current Lease Liabilities

344

402

Advance Billings

22,696

27,383

Pension Liabilities

32

32

Other Current Liabilities

25,989

19,599

Current Liabilities

$

62,712

$

59,097

Long-Term Debt

8,500

8,880

Long-Term Pension Liabilities

209

233

Other Long-Term Liabilities

1,677

1,768

Lease Liabilities

759

775

Total Liabilities

$

73,857

$

70,753

Shareholders' Investment

70,066

63,516

Total Liabilities and Shareholders' Investment

$

143,923

$

134,269

2. Has been restated to move money market accounts out of marketable securities into cash equivalents.

SELECTED FINANCIAL DATA

September 30

December 31

2024

2023

Book Value per Common Share

$

74.79

$

58.50

Total Shares Outstanding

936,837

1,085,711

Backlog

$

171,505

$

97,350

 CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT

Accumulated Other Comprehensive Income (Loss)

Common Stock

Paid-in Surplus

Treasury Stock

Retained Earnings

Total

Balance, December 31, 2023

$

1,508

$

9,708

$

67,181

$

(10,787

)

$

(4,094

)

$

63,516

Add (Deduct):

Net Income

18,532

18,532

Other Comprehensive Income (Loss), Net of Tax

526

526

Dividends, $.45 per Common Share

(594

)

(594

)

Treasury Stock Acquisition

(11,910

)

(11,910

)

Other

(4

)

(4

)

Balance, September 30, 2024

$

1,508

$

9,708

$

85,115

$

(22,697

)

$

(3,568

)

$

70,066

 CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months Ended
September 30, 2024

Nine Months Ended
September 30, 2023

Operating Activities:

Net Income

$

18,532

$

13,984

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

Pension Contributions (Greater) Less than Expense

(25

)

(1,586

)

Bad Debt Expense (Recovery)

-

112

Depreciation & Amortization

5,177

4,718

(Gain) on Sales of Equipment

(104

)

(48

)

(Gain) on Disposal of Equipment

(389

)

-

Change in Assets and Liabilities

(Inc) in Accts and Notes Receivable

(6,197

)

(3,658

)

(Inc) in Cost in Excess of Estimated Earnings and Billings

-

(109

)

Dec (Inc) in Inventories

738

(1,985

)

(Inc) in Prepayments

(2,724

)

(456

)

(Inc) in Net Investment in Sales-type leases

(353

)

(80

)

Dec in Other LT Assets

1,036

373

Inc (Dec) in Accounts Payable

1,962

(148

)

(Dec) Inc in Accrued Income Tax

(1,063

)

3,519

Inc in Other Accrued Expenses

1,606

5,515

(Dec) in Advanced Billings

(4,686

)

(4,737

)

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

5,842

(7,073

)

Inc in Lease Liability for Operating

169

-

Inc in Lease Liability for Financing

-

130

Principal payments of Lease Liability for Operating

(188

)

(163

)

(Dec) in Long Term Deferred Tax Liabilities

(85

)

-

(Dec) Inc in Other Long-Term Liabilities

(119

)

197

        Net Cash Provided by Operating Activities

$

19,129

$

8,505

Investing Activities

Intangibles

-

(62

)

Purchases of Marketable Securities ²

(16,442

)

(23,464

)

Proceeds from Sales of Marketable Securities ²

29,403

18,130

Proceeds from Sales of Equipment

131

83

Additions to Property, Plant, and Equipment

(8,637

)

(4,351

)

       Net Cash (Required) for Investing Activities

$

4,455

$

(9,664

)

Financing Activities

Principal payments of Lease Liability for Financing

(149

)

(146

)

(Repayment) of Short-Term Borrowings, Net

(1,637

)

-

Proceeds of Short-Term Borrowings, Net

1,637

-

(Repayment) of Long-Term Debt

(1,152

)

(479

)

Dividends Paid

(594

)

(489

)

Treasury Stock Acquisitions

(11,910

)

-

       Net Cash Provided by (Required for) Financing Activities

$

(13,805

)

$

(1,114

)

Effect of Exchange Rate Changes

357

290

Net Increase in Cash and Cash Equivalents ²

$

10,136

$

(1,983

)

Cash and Cash Equivalents at Beginning of Year ²

5,894

3,468

Cash and Cash Equivalents at End of Quarter ²

$

16,030

$

1,485

2. Has been restated to move money market accounts out of marketable securities into cash equivalents.