MUEL Paul Meuller Co (PK)

PAUL MUELLER COMPANY (OTC:MUEL.PK) TODAY RELEASED ITS THIRD QUARTER REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 2011, AS FOLLOWS:

PAUL MUELLER COMPANY AND SUBSIDIARIES
NINE-MONTH REPORT
Unaudited
CONSOLIDATED SUMMARIES OF OPERATIONS
			Three Months Ended		Nine Months Ended		Twelve Months Ended
			September 30		September 30		September 30
			2011	2010	2011	2010	2011	2010
Net Sales			$ 36,814,000	$ 36,962,000	$ 110,203,000	$ 94,755,000	$ 145,081,000	$ 135,111,000
Cost of Sales			24,748,000	28,773,000	74,352,000	69,827,000	98,471,000	100,204,000
Gross Profit			$ 12,066,000	$ 8,189,000	$ 35,851,000	$ 24,928,000	$ 46,610,000	$ 34,907,000
Selling, General and Administrative Expense			11,074,000	8,986,000	34,260,000	28,391,000	45,206,000	38,267,000
Operating Income			$ 992,000	$ (797,000)	$ 1,591,000	$ (3,463,000)	$ 1,404,000	$ (3,360,000)
Other Income (Expense)			(987,000)	(662,000)	(2,368,000)	(1,741,000)	(2,745,000)	(2,516,000)
Income before Provision for Income Taxes			$ 5,000	$ (1,459,000)	$ (777,000)	$ (5,204,000)	$ (1,341,000)	$ (5,876,000)
Provision for Income Taxes			121,000	(452,000)	797,000	(2,043,000)	6,010,000	(3,076,000)
Net Income			$ (116,000)	$ (1,007,000)	$ (1,574,000)	$ (3,161,000)	$ (7,351,000)	$ (2,800,000)
Earnings per Common Share ––		Basic	($0.10)	($0.84)	($1.32)	($2.65)	($6.15)	($2.22)
		Diluted	($0.10)	($0.84)	($1.32)	($2.65)	($6.15)	($2.22)
NOTES:	1)	Domestic sales for the third quarter of 2011 were $24,026,000 and the net loss was $361,000, compared to 2010 when sales were $24,343,000 and the net loss was $1,305,000. For 2011, Mueller BV sales for the third quarter were $12,788,000 and net income was $245,000, compared to 2010 when sales were $12,619,000 and net income was $298,000.
	2)	The results for the three months, nine months, and twelve months ended 9/30/11, were adversely affected by severance and noncompete payments totaling $961,000 and the accrual of $2,721,000 (a current non-cash charge) for the actuarial present value of a life annuity all of which are in accordance with the employment agreement of the former President and CEO.
	3)	The results for the three months, nine months, and twelve months ended 9/30/11, were adversely affected by one time fees associated with the new bank financing (credit revolver and terms loans) totaling $670,000.
	4)	The provisions for income taxes for the three months, nine months, and twelve months ended September 30, 2011 included a valuation allowance against a portion of the company's net deferred tax assets of $126,000 971,000 and 1,748,000 respectively
SUMMARIZED CONSOLIDATED BALANCE SHEETS
			September 30	December 31
			2011	2010
Current Assets			$ 56,049,000	$ 40,997,000
Net Property, Plant, and Equipment			40,787,000	44,829,000
Other assets			16,176,000	16,452,000
Total Assets			$ 113,012,000	$ 102,278,000
Current Liabilities			$ 61,044,000	$ 46,047,000
Long-Term Debt			15,459,000	18,177,000
Other Long-Term Liabilities			19,488,000	20,231,000
Shareholders' Investment			17,021,000	17,823,000
Total Liabilities and Shareholders' Investment			$ 113,012,000	$ 102,278,000
Book Value per Common Share			$13.18	$13.81
Total Shares Outstanding			1,291,074	1,291,074
Backlog			$ 61,529,000	$ 31,044,000

CONTACT: Marcelino Rodriguez - Secretary & CFO
         Springfield, Missouri
         (417) 831-3000