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 | 160 Cassell Road
Box 144
Harleysville, Pa 19438
(215) 723-6751
FAX (215) 723-6758
TRADED: NYSE
SYMBOL: MPR | NEWS
RELEASE |
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| date: | February 25, 2004 | | |
| for release: | Immediate | | |
| contact: | Investor Contact: | | Media Contact: |
| | Gary J. Morgan, Vice President of Finance, CFO | | Dina Silver, APR (215) 957-0300 |
| | 215-723-6751,gmorgan@metpro.com | | dsilver@dbcommunications.net |
Met-Pro Corporation Announces Financial Results
for the Fiscal Year Ended 1/31/2004
• 8% Sales Increase Over FYE 2003
• 4th Quarter Income from Operations Increases 23% Over Last Year
• Year-to-Date Income from Operations Increases 22%
• Year-to-Date Bookings Increase 12% Over Last Year
• Cash Flows from Operating Activities Increase 41%
Harleysville, PA, February 25-Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE:MPR), today announced sales and earnings per share for the fourth quarter and full year ended January 31, 2004.
Sales for the fourth quarter were $19.6 million, which was 6% above last year’s fourth quarter sales of $18.5 million. Sales for the fiscal year ended January 31, 2004 totaled $75.1 million, compared to $69.6 million for the same period last year, an increase of 8%.
Income from operations for the fourth quarter ended January 31, 2004 totaled $3.3 million, compared to $2.7 million for the same quarter of last year, an increase of 23%. Income from operations for the fiscal year ended January 31, 2004 totaled $11.2 million, a 22% increase over the $9.2 million reported in the prior fiscal year.
Basic and diluted earnings per share for the fourth quarter ended January 31, 2004 were $.21 compared to $.22 for the same period last year. Basic and diluted earnings, excluding an unusual charge for expenses incurred in a patent litigation case, increased for the fourth quarter ended January 31, 2004 to $.25, up 14% from $.22 for the fourth quarter of last year.
Basic and diluted earnings per share for the fiscal year ended January 31, 2004 were $.76 compared to $.71 for the prior fiscal year. Basic and diluted earnings, excluding an unusual charge for expenses incurred in a patent litigation case, increased for the fiscal year ended January 31, 2004 to $.87 and $.86, up 23% and $.21, respectively, from $.71 a year ago.
As Met-Pro announced in a separate press release issued on February 24, 2004, an agreement has been reached with United States Filter Corporation (USFilter), subject to court approval, to settle a patent litigation case that involved a small number of odor control installations sold by Met-Pro’s Duall Division. Basic and diluted earnings per share for the fiscal year ended January 31, 2004 were reduced by $.11 and $.10, respectively, due to litigation expenses incurred in connection with this case. The settlement will have no material adverse impact upon the fiscal year ending January 31, 2005. More information about this settlement can be obtained in the separate press release.
Bookings of new order s for the fiscal year ended January 31, 2004 totaled $75.3 million compared to $68.3 million for last year, an increase of 12%.
Cash flows from operating activities increased to $8.2 million, a 41% increase over the $5.8 million reported in the fiscal year ended January 31, 2003. Cash flows from operating activities per share for the full year increased $.28 to $.98 over the $.70 earned during the fiscal year ended 2003.
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Met-Pro Corporation/Page 2
A four-for-three stock split was completed by the Company on October 15, 2003. All references in the financial statements to per share amounts and number of shares outstanding have been restated to reflect the effect of the stock split.
"We are pleased with the results that we have been able to report for the fourth quarter and the fiscal year ended January 31, 2004," said Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation. "These results demonstrate that our company is very capable of adjusting to varying economic realities and delivering solid results. We are also pleased that the price of our stock increased 50.5% (including the dividend payment) during the calendar year ending December 31, 2003 and that we were able to reward our shareholders for their confidence in our company through a 7.4% cash dividend increase, which we announced on September 17, 2003. The legal expenses stemming from the patent litigation initiated by USFilter had a significant impact on our earnings per share for both the four th quarter and the fiscal year. However, with the agreed to settlement, it will no longer have any material adverse financial impact on the company."
De Hont further stated that "the diversity of our products and the markets we serve, the many synergies within our organization, our great team of employees and an improving economy give us continued optimism about our prospects for the new fiscal year."
This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included at the end of this press release is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles as well as certain Regulation G disclosures.
About Met-Pro
Met-Pro Corporation, Harleysville, Pennsylvania, manufactures and sells product recovery and pollution control equipment for purification of air and liquids and fluid handling equipment for corrosive, abrasive and high temperature liquids. With ten divisions and five subsidiaries, the company, established in 1966, provides products to residential, commercial, industrial and municipal markets that include, but are not limited to, pharmaceuticals, chemicals, petrochemicals, water and aquariums. For more information, please visitwww.met-pro.com.
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| The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release, and other materials filed or to be filed with the Securities and Exchange Commission (as well as information included in oral or other written statements made or to be made by the Company) contains statements that are forward-looking. Such statements may relate to plans for future expansion, business development activities, capital spending, financing, the effects of regulation and competition, or anticipated sales or earnings results. Such information involves risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, those relating to, the cancellation of purchase orders, product dev elopment activities, computer systems implementation, dependence on existing management, the continuation of effective cost and quality control measures, retention of customers, global economic and market conditions, and changes in federal or state laws. |
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Met-Pro common shares are traded on the New York Stock Exchange, symbolMPR.
To obtain an Annual Report or additional information on the Company, please call 215-723-6751 and ask for the Investor Relations Department, or visit the Company’s Web siteat www.met-pro.com.
Met-Pro Corporation
Condensed Consolidated Balance Sheet
(unaudited)
| | | January 31, | |
| | 2004 | | 2003 |
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| Assets | | | |
Current assets | $48,173,429 | | $40,631,745 |
Property, plant and equipment, net | 11,514,199 | | 11,950,422 |
Costs in excess of net assets of business acquired, net | 20,798,913 | | 20,798,913 |
Other assets | 649,016 | | 373,591 |
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Total assets | $81,135,557 | | $73,754,671 |
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| Liabilities and shareholders’ equity | | | |
| Current liabilities | $14,229,463 | | $9,750,309 |
| Long-term debt | 5,447,869 | | 7,111,995 |
| Other liabilities | 1,187,491 | | 846,482 |
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Total liabilities | 20,864,823 | | 17,708,786 |
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Shareholders’ equity | 60,270,734 | | 56,045,885 |
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Total liabilities and shareholders’ equity | $81,135,557 | | $73,754,671 |
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Continued Page 3
Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
| | Three Months Ended | | Twelve Months Ended | |
| | January 31, | | January 31, | |
| | 2004 | | 2003 | | 2004 | | 2003 | |
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Net sales | $19,618,907 | | $18,475,723 | | $75,058,929 | | $69,619,382 | |
Cost of goods sold | 12,799,310 | | 12,046,628 | | 48,406,090 | | 45,439,557 | |
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Gross profit | 6,819,597 | | 6,429,095 | | 26,652,839 | | 24,179,825 | |
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| Operating expenses | | | | | | | | |
| Selling | 1,759,119 | | 1,674,568 | | 7,662,594 | | 7,139,082 | |
| General and administrative | 1,786,057 | | 2,093,749 | | 7,823,007 | | 7,885,757 | |
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Income from operations | 3,274,421 | | 2,660,778 | | 11,167,238 | | 9,154,986 | |
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Interest expense | (104,836 | ) | (126,158 | ) | (441,704 | ) | (505,394 | ) |
Other income, net | 29,630 | | 76,958 | | 182,736 | | 278,126 | |
| Unusual charge - patent litigation | (512,968 | ) | - | | (1,292,242 | ) | - | |
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Income before taxes | 2,686,247 | | 2,611,578 | | 9,616,028 | | 8,927,718 | |
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Provision for taxes | 913,324 | | 797,109 | | 3,269,449 | | 3,039,339 | |
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Net income | $1,772,923 | | $1,814,469 | | $6,346,579 | | $5,888,379 | |
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Basic earnings per share | $.21 | | $.22 | | $.76 | | $.71 | |
Diluted earnings per share | $.21 | | $.22 | | $.76 | | $.71 | |
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| Average common shares outstanding: | | | | | | | | |
Basic shares | 8,295,499 | | 8,234,891 | | 8,297,668 | | 8,239,490 | |
Diluted shares | 8,390,032 | | 8,291,312 | | 8,398,256 | | 8,295,328 | |
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| Adjusted for four-for-three stock split | | | | | | | | |
Consolidated Business Segment Data
(unaudited)
| | Years Ended January 31, |
| 2004 | | 2003 |
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| Net sales | | | |
Product recovery/pollution control equipment | $50,746,995 | | $46,094,834 |
Fluid handling equipment | 24,311,934 | | 23,524,548 |
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| $75,058,929 | | $69,619,382 |
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| Income from operations | | | |
Product recovery/pollution control equipment | $7,977,169 | | $6,039,173 |
Fluid handling equipment | 3,190,069 | | 3,115,813 |
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| $11,167,238 | | $9,154,986 |
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| Identifiable assets at January 31 | | | |
Product recovery/pollution control equipment | $44,613,967 | | $41,396,626 |
Fluid handling equipment | 19,313,159 | | 18,417,187 |
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| | 63,927,126 | | 59,813,813 |
Corporate | 17,208,431 | | 13,940,858 |
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| $81,135,557 | | $73,754,671 |
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Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
| | Years ended January 31, | |
| | 2004 | | 2003 | | 2002 | |
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| Increase (Decrease) in Cash and Cash Equivalents |
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| Cash flows from operating activities | | | | | | |
Net income | $6,346,579 | | $5,888,379 | | $6,189,317 | |
| Adjustments to reconcile net income to net | | | | | | |
| cash provided by operating activities: | | | | | | |
Depreciation and amortization | 1,571,482 | | 1,559,357 | | 2,046,007 | |
Deferred income taxes | 471,652 | | 379,874 | | 155,419 | |
| (Gain) loss on sales of property and equipment, net | 24,906 | | (5,247 | ) | (472,895 | ) |
Allowance for doubtful accounts | (55,077 | ) | 34,188 | | 10,721 | |
| (Increase) decrease in operating assets, net of acquisition: | | | | | | |
Accounts receivable | (4,156,402 | ) | (1,420,024 | ) | 3,658,676 | |
Inventories | 766,704 | | 591,932 | | (687,317 | ) |
| Prepaid expenses, deposits and other current assets | (214,988 | ) | (52,207 | ) | 115,808 | |
Other assets | (336,490 | ) | (8,408 | ) | (8,092 | ) |
| Increase (decrease) in operating liabilities, net of acquisition: | | | | | | |
Accounts payable and accrued expenses | 3,352,279 | | (406,094 | ) | (2,933,944 | ) |
Customers’ advances | 460,009 | | (732,761 | ) | 140,289 | |
Other non-current liabilities | 2,197 | | 2,197 | | 87,578 | |
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Net cash provided by operating activities | 8,232,851 | | 5,831,186 | | 8,301,567 | |
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| Cash flows from investing activities | | | | | | |
Proceeds from sales of property and equipment | – | | 19,347 | | 1,095,456 | |
| Acquisitions of property and equipment | (952,812 | ) | (752,125 | ) | (1,631,356 | ) |
Payment for purchase of acquisition | – | | (465,673 | ) | – | |
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Net cash (used in) investing activities | (952,812 | ) | (1,198,451 | ) | (535,900 | ) |
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| Cash flows from financing activities | | | | | | |
Proceeds from new borrowing | – | | 16,373 | | – | |
Reduction of debt | (1,536,927 | ) | (1,235,974 | ) | (1,741,711 | ) |
Exercise of stock options | 884,339 | | 353,229 | | 1,092,253 | |
Payment of dividends | (2,280,833 | ) | (2,029,579 | ) | (1,934,132 | ) |
| Purchase of treasury shares | (893,570 | ) | (289,218 | ) | (1,793,435 | ) |
Cash in lieu of fractional shares | (1,421 | ) | – | | – | |
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| Net cash (used in) financing activities | (3,828,412 | ) | (3,185,169 | ) | (4,377,025 | ) |
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Effect of exchange rate changes on cash | 115,259 | | 149,541 | | (66,427 | ) |
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| Net increase in cash and cash equivalents | 3,566,886 | | 1,597,107 | | 3,322,215 | |
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| Cash and cash equivalents at beginning of year | 13,429,367 | | 11,832,260 | | 8,510,045 | |
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Cash and cash equivalents at end of year | $16,996,253 | | $13,429,367 | | $11,832,260 | |
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Continued Page 5
Met-Pro Corporation/Page 5
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the United States ("GAAP") follows. Although Met-Pro Corporation believes that these non-GAAP financial measures provide useful information to investors about its financial condition and results of operations, this information should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Management's statements regarding the reasons why it believes the presentation of the non-GAAP financial information in this pres s release provides useful information to its investors, and any other material purposes for which management uses this non-GAAP financial information, are set forth in Met-Pro’s Current Report on Form 8-K to which this press release is attached as an exhibit.
The following table reconciles basic and diluted earnings per share, excluding an unusual charge for expenses incurred in a patent infringement case, and basic and diluted earnings per share calculated in accordance with generally accepted accounting principles for the fourth quarter and fiscal years ended January 31, 2004 and 2003:
Met-Pro Corporation
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
(unaudited)
| | Three Months Ended | | Twelve Months Ended | |
| | January 31, | | January 31, | |
| 2004 | | 2003 | | 2004 | | 2003 |
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| Income before tax as reported | $2,686,247 | | $2,611,578 | | $9,616,028 | | $8,927,718 |
| Add: Unusual charge - patent litigation | 512,968 | | - | | 1,292,242 | | - |
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Adjusted income before tax | $3,199,215 | | $2,611,578 | | $10,908,270 | | $8,927,718 |
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Net income as reported | $1,772,923 | | $1,814,469 | | $6,346,579 | | $5,888,379 |
Add: Unusual charge - patent litigation | 338,559 | | - | | 852,879 | | - |
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Adjusted net income | $2,111,482 | | $1,814,469 | | $7,199,458 | | $5,888,379 |
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Basic earnings per share as reported | $.21 | | $.22 | | $.76 | | $.71 |
Adjusted basic earnings per share | $.25 | | $.22 | | $.87 | | $.71 |
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| Diluted earnings per share as reported | $.21 | | $.22 | | $.76 | | $.71 |
Adjusted diluted earnings per share | $.25 | | $.22 | | $.86 | | $.71 |
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| Average common shares outstanding: | | | | | | | |
| Basic shares | 8,295,499 | | 8,234,891 | | 8,297,668 | | 8,239,490 |
Diluted shares | 8,390,032 | | 8,291,312 | | 8,398,256 | | 8,295,328 |
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| Adjusted for four-for-three stock split. | | | | | | | |
