Mueller Co. posts $1.4M profits

Paul Mueller Co. (OTC: MUEL) posted second-quarter net income of $1.4 million, a 215 percent increase compared to a loss of $1.2 million in the same quarter of 2011.

The Springfield-based stainless steel manufacturer recorded earnings per diluted share of $1.13, compared to a $1 loss per share in second-quarter 2011, according to a news release.

The second-quarter 2011 bottom line was adversely affected by the the April 2011 exit of former President and CEO Matthew Detelich, who was paid severance and noncompete payments of $777,000. In that quarter, the company also realized the accrual of $2.7 million - a noncash charge - for the actuarial present value of a life annuity in Detelich's employment agreement. Total severance and noncompete expenses were $1.2 million for the 12 months that ended June 30, the release said.

Detelich was succeeded by Robert Nosal, who was replaced by David Moore in August.

Second-quarter 2012 financial notes:

• Sales were $43.5 million, up from $42.6 million in the same quarter last year. For the latest quarter, domestic sales were $28.8 million, with a net income of $424,000, and European operations via Mueller BV were $14.7 million, with a net income of $956,000.
• Cost of sales were $30.9 million, resulting in a gross profit of $12.5 million. Comparatively, second-quarter 2011 cost of sales were $28.7 million, with a gross profit of $13.8 million.
• The company's backlog was $66.5 million at the end of the quarter.

As of June 30, Mueller Co.'s assets were $98.6 million and its total liabilities and shareholders' investment was $98.6 million. Mueller Co. manufactures stainless steel equipment and performs on-site construction, repair and maintenance. Its products are used in more than 100 countries on dairy farms and for industrial applications including pharmaceutical, biotechnological and chemical processing, according to the release.

Mueller Co.'s pink sheet stock was trading at $25 this morning, compared to a 52-week range of $13.50 to $27.25.