Paul Mueller Continues to Pare Losses in the Third Quarter

October 31, 2011

While the losses continue at Paul Mueller (MUEL.PK), the third quarter ended September 30, 2011 showed signs of improvement. Sales were essentially flat at $36.8 million, but a reduction in the cost of sales gave MUEL a gross profit of $12.1 million versus $8.2 million in 2010. The net loss for the period was reduced to $116 thousand or ($0.10) per share compared to a net loss of $1 million or ($0.84) per share for the same period in 2010.

For the nine month period ended September 30, sales increased 17% to $110.2 million and the net loss for the period fell to $1.6 million or ($1.32) per share compared to a net loss of $3.2 million or ($2.65) per share during the same period in 2010.

In addition, the three and nine month period of 2011 were negatively impacted by severance payments of $961 thousand and an non-cash charge of $2.7 million for the actuarial present value of a life annuity both related to the former President and CEO. The company also had one-time fees of $670 thousand related to new bank financing the negatively impacted both the three and nine month period of 2011.

Book value per share dropped to $13.18 at September 30, 2011 compared to book value per share of $13.81 at December 31, 2010. The backlog for Paul Mueller Company stood at $61.53 million on September 30, 2011 compared to $31.04 million on December 31, 2010.

Disclosure: The author holds a long position in MUEL.PK at the time of this article.

Print Friendly

Previous post:

Next post: