Exhibit 99.1
date: | November 22, 2005 |
for release: | Immediate |
contact: | Investor Contact: |
| | Gary J. Morgan, Vice President of Finance, CFO |
| | 215-723-6751, gmorgan@met-pro.com |
Met-Pro Corporation Announces Financial Results
for the Third Quarter Ended 10/31/2005
• Net Sales and Bookings at Historical Highs
• Quarterly Net Sales Increase 26% Over Same Period Last Year
• Quarterly Diluted Earnings Per Share Increase 89% Over Same Period Last Year
• Quarterly Bookings Increase 16% Over Same Period Last Year
• Backlog Up 41% Over Same Period Last Year
Harleysville, PA, November 22– Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE: MPR), today announced the Company’s financial results for the third quarter ended October 31, 2005.
Sales for the third quarter ended October 31, 2005 were the highest of any third quarter in the Company’s history, totaling $21.9 million compared with $17.4 million for the same quarter last year, an increase of 26%. Sales for the nine months ended October 31, 2005 were the highest of any first three quarters in the Company’s history, totaling $62.5 million compared with $53.4 million for the same period last year, an increase of 17%.
Net income for the third quarter ended October 31, 2005 totaled $1.9 million compared with $1.0 million for the same quarter last year, an increase of 92%. For the nine months ended October 31, 2005, net income totaled $5.2 million compared with $3.4 million during the same period last year, an increase of 51%. These increases are due principally to higher sales in both the Product Recovery/Pollution Control Equipment and Fluid Handling Equipment operating segments.
Basic and diluted earnings per share were up $0.08 to $0.17 per share, an increase of 89% over the $0.09 earned during last year’s third quarter. For the nine months ended October 31, 2005, basic earnings per share were $0.46 compared with $0.31 for the same period last year, an increase of 48%. Diluted earnings per share for the nine month period were $0.46 versus $0.30, an increase of 53%.
Met-Pro’s bookings of new orders for the third quarter were the highest of any third quarter in the Company’s history, totaling $23.5 million compared with $20.3 million for the same quarter last year, an increase of 16%. For the nine months ended October 31, 2005, bookings were the highest of any first three quarters in the Company’s history, totaling $69.2 million compared with $57.9 million during the same period last year, an increase of 20%.
As a result of this increase in bookings, the backlog of orders now totals $16.5 million compared with $11.7 million for the third quarter ended October 31, 2004, an increase of 41%. This is the highest backlog total at the end of a third quarter in the Company’s history and provides a solid base for full year sales.
A four-for-three stock split was paid by the Company on November 15, 2005. All references in this release and in the financial statements to per share amounts and shares outstanding give effect to the stock split. In addition, as recently announced, Met-Pro Corporation will pay a quarterly cash dividend on December 8, 2005 to shareholders of record at the close of business on November 25, 2005 that represents a 7.5% increase over the prior quarter's dividend.
“We are very pleased with the results for the third quarter and the year to date,” stated De Hont. “Our record high third quarter bookings and strong backlog serve as a solid base for the fourth quarter. In addition, the combination of a strong backlog and steady quotation activity gives us not only continued optimism, but confidence about our prospects for the fourth quarter.”
Met-Pro Corporation/Page 2
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, 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 six wholly-owned 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 visit www.met-pro.com.
| |
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) contain 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 or delay of purchase orders and shipments, product development 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. |
Met-Pro common shares are traded on the New York Stock Exchange, symbol MPR.
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 site at www.met-pro.com.
Met-Pro Corporation
Condensed Consolidated Balance Sheet
(unaudited)
| | | October 31, | | January 31, | |
| | | 2005 | | 2005 | |
Assets | | | | | |
| Current assets | | $52,830,128 | | $50,270,495 | |
| Property, plant and equipment, net | | 12,141,265 | | 11,287,253 | |
| Costs in excess of net assets of businesses acquired, net | | 20,798,913 | | 20,798,913 | |
| Other Assets | | 551,079 | | 567,405 | |
Total assets | | $86,321,385 | | $82,924,066 | |
| | | | | | |
Liabilities and shareholders’ equity | | | | | |
| Current liabilities | | $15,388,645 | | $13,867,892 | |
| Long-term debt | | 2,729,854 | | 4,039,068 | |
| Other liabilities | | 1,889,931 | | 1,851,915 | |
Total liabilities | | 20,008,430 | | 19,758,875 | |
| | | | | | |
Shareholders’ equity | | 66,312,955 | | 63,165,191 | |
Total liabilities and shareholders’ equity | | $86,321,385 | | $82,924,066 | |
Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
| | Three Months Ended | Nine Months Ended |
| | October 31, | October 31, |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Net sales | $21,918,792 | | $17,406,160 | | $62,492,924 | | $53,390,830 | |
| Cost of goods sold | 15,205,528 | | 12,065,367 | | 42,762,662 | | 36,586,442 | |
| Gross profit | 6,713,264 | | 5,340,793 | | 19,730,262 | | 16,804,388 | |
| | | | | | | | | |
Operating expenses | | | | | | | | |
| Selling | 1,972,308 | | 1,862,739 | | 5,899,709 | | 5,759,178 | |
| General and administrative | 2,256,959 | | 1,976,615 | | 6,608,923 | | 5,725,878 | |
| Income from operations | 2,483,997 | | 1,501,439 | | 7,221,630 | | 5,319,332 | |
| | | | | | | | | |
| Interest expense | (60,954 | ) | (86,156 | ) | (196,868 | ) | (273,098 | ) |
| Other income, net | 162,854 | | 69,061 | | 448,847 | | 111,850 | |
| Income before taxes | 2,585,897 | | 1,484,344 | | 7,473,609 | | 5,158,084 | |
| | | | | | | | | |
| Provision for taxes | 703,875 | | 504,673 | | 2,316,820 | | 1,753,747 | |
| | | | | | | | | |
Net income | $1,882,022 | | $979,671 | | $5,156,789 | | $3,404,337 | |
| | | | | | | | | |
Basic earnings per share (1) | $.17 | | $.09 | | $.46 | | $.31 | |
Diluted earnings per share (1) | $.17 | | $.09 | | $.46 | | $.30 | |
| | | | | | | | | |
Average common shares outstanding: | | | | | | | | |
Basic shares (1) | 11,184,295 | | 11,140,839 | | 11,185,838 | | 11,142,537 | |
Diluted shares (1) | 11,317,027 | | 11,293,111 | | 11,320,875 | | 11,290,240 | |
(1) On October 11, 2005 the Board of Directors declared a four-for-three stock split which was paid on November 15, 2005 to shareholders of record on November 1, 2005. All references in the financial statements to per share amounts and number of shares outstanding give effect to the split. |
Consolidated Business Segment Data
(unaudited)
| | | Nine Months Ended October 31, | |
| | | 2005 | | 2004 | |
Net sales | | | | | |
| Product recovery/pollution control equipment | | $39,244,030 | | $31,556,277 | |
| Fluid handling equipment | | 23,248,894 | | 21,834,553 | |
| | | $62,492,924 | | $53,390,830 | |
| | | | | | |
Income from operations | | | | | |
| Product recovery/pollution control equipment | | $3,938,788 | | $2,522,779 | |
| Fluid handling equipment | | 3,282,842 | | 2,796,553 | |
| | | $7,221,630 | | $5,319,332 | |
| | | | | | |
| | | October 31, | | January 31, | |
| | | 2005 | | 2005 | |
Identifiable assets | | | | | |
| Product recovery/pollution control equipment | | $43,665,377 | | $41,554,730 | |
| Fluid handling equipment | | 21,995,856 | | 19,784,083 | |
| | | 65,661,233 | | 61,338,813 | |
| Corporate | | 20,660,152 | | 21,585,253 | |
| | | $86,321,385 | | $82,924,066 | |
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
| | Nine Months Ended October 31, | |
| | 2005 | | 2004 | |
Increase (Decrease) in Cash and Cash Equivalents |
| | | | | |
Cash flows from operating activities | | | | |
| Net income | $5,156,789 | | $3,404,337 | |
| Adjustments to reconcile net income to net | | | | |
| cash provided by operating activities: | | | | |
| Depreciation and amortization | 1,109,925 | | 1,105,463 | |
| Deferred income taxes | (1,659 | ) | (2,021 | ) |
| (Gain) loss on sale of property and equipment, net | 8,348 | | (1,650 | ) |
| Allowance for doubtful accounts | 96,682 | | 76,914 | |
| (Increase) decrease in operating assets: | | | | |
| Accounts receivable | (2,172,567 | ) | 1,665,238 | |
| Inventories | (2,638,644 | ) | (1,031,531 | ) |
| Prepaid expenses, deposits and other current assets | 18,158 | | 79,159 | |
| Other assets | (6,744 | ) | (19,502 | ) |
| Increase (decrease) in operating liabilities: | | | | |
| Accounts payable and accrued expenses | 1,560,944 | | (750,110 | ) |
| Customers’ advances | 380,037 | | (287,805 | ) |
| Other non-current liabilities | 1,648 | | 1,648 | |
| | | | | |
| Net cash provided by operating activities | 3,512,917 | | 4,240,140 | |
| | | | | |
Cash flows from investing activities | | | | |
| Proceeds from sale of property and equipment | 31,696 | | 1,650 | |
| Acquisitions of property and equipment | (2,093,201 | ) | (734,576 | ) |
| | | | | |
| Net cash (used in) investing activities | (2,061,505 | ) | (732,926 | ) |
| | | | | |
Cash flows from financing activities | | | | |
| Reduction of debt | (1,500,910 | ) | (1,227,190 | ) |
| Exercise of stock options | 324,281 | | 641,872 | |
| Payment of dividends | (1,948,755 | ) | (1,815,651 | ) |
| Purchase of treasury shares | (140,135 | ) | (481,687 | ) |
| | | | | |
| Net cash (used in) financing activities | (3,265,519 | ) | (2,882,656 | ) |
| Effect of exchange rate changes on cash | (59,026 | ) | (33,792 | ) |
| | | | | |
Net increase (decrease) in cash and cash equivalents | (1,873,133 | ) | 590,766 | |
| | | | | |
| Cash and cash equivalents at February 1 | 20,889,476 | | 16,996,253 | |
| | | | | |
Cash and cash equivalents at October 31 | $19,016,343 | | $17,587,019 | |
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