Date: | May 22, 2007 |
For Release: | Immediate |
Contact: | Investor Contact: |
Gary J. Morgan, Senior Vice President of Finance, CFO | |
215-723-6751, gmorgan@met-pro.com |
Met-Pro Corporation Announces Financial Results
for the First Quarter Ended 4/30/2007
• Core Earnings Up – Profitable Property Sale Reached in First Quarter
Harleysville, PA, May 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 first quarter ended April 30, 2007.
Sales for the first quarter ended April 30, 2007 were $21.9 million, which was 11% above last year’s first quarter sales of $19.8 million.
Net income for the first quarter ended April 30, 2007 totaled $3.9 million compared with $1.2 million for the same period last year. Excluding the net gain of approximately $2.2 million on the sale of property previously associated with the Company’s Sethco business unit in Hauppauge, New York, Met-Pro’s adjusted net income was $1.7 million in the first quarter ended April 30, 2007, an increase of 38% over the first quarter of last year.
Basic and diluted earnings per share for the first quarter ended April 30, 2007 were $0.35 and $0.34, respectively, compared with $0.11 earned during last year’s first quarter. Excluding the net gain on the sale of property, Met-Pro’s adjusted basic and diluted earnings per share were each $0.15 compared with $0.11 for the first quarter of last year, an increase of 36%.
The Company’s backlog of orders as of April 30,2007 totaled a record high $30.0 million compared with $21.5 million as of April 30, 2006, an increase of 40%. Substantially the entire backlog that existed as of April 30, 2007 is expected to be shipped during the current fiscal year.
“We are pleased with the results for the first quarter,” said De Hont. “Our quotation activity remains high and we continue to achieve solid bookings. The record high $30.0 million backlog at the end of the first quarter serves as a solid base for future sales growth. The combination of a strong quality backlog and continued steady quotation activity gives us confidence regarding our prospects for the second quarter and the full fiscal year.”
The Board of Directors, at their meeting on April 4, 2007, declared a quarterly dividend of $0.0675 per share payable June 12, 2007 to shareholders of record at the close of business on May 29, 2007. This represents an 8.0% increase over the same period last year. This is the thirty-second consecutive year the Company has paid a cash or stock dividend.
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, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized as one of America’s “200 Best Small Companies” by Forbes magazine. Through its divisions and subsidiaries, in four states, Canada, Europe and The People's Republic of China, a wide range of products and services are offered for industrial, commercial, and residential markets. These include Product Recovery and Pollution Control Technologies for purification of air and liquids; Fluid Handling Technologies for corrosive, abrasive and high temperature liquids; and Filtration and Purification Technologies including proprietary water treatment chemicals and filter products. For more information, please visit www.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) 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
Consolidated Statement of Operations
(unaudited)
Three Months Ended | ||||||
April 30, | ||||||
2007 | 2006 | |||||
Net sales | $21,916,609 | $19,779,041 | ||||
Cost of goods sold | 14,997,082 | 13,923,682 | ||||
Gross profit | 6,919,527 | 5,855,359 | ||||
Operating expenses (income) | ||||||
Selling | 2,069,877 | 1,896,179 | ||||
General and administrative | 2,483,853 | 2,358,513 | ||||
Gain on sale of building | (3,513,940 | ) | – | |||
1,039,790 | 4,254,692 | |||||
Income from operations | 5,879,737 | 1,600,667 | ||||
Interest expense | (80,152 | ) | (59,805 | ) | ||
Other income, net | 217,306 | 234,798 | ||||
Income before taxes | 6,016,891 | 1,775,660 | ||||
Provision for taxes | 2,138,648 | 568,212 | ||||
Net income | $3,878,243 | $1,207,448 | ||||
Basic earnings per share | $.35 | $.11 | ||||
Diluted earnings per share | $.34 | $.11 | ||||
Average common shares outstanding: | ||||||
Basic shares | 11,220,577 | 11,199,599 | ||||
Diluted shares | 11,468,767 | 11,439,813 |
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Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Balance Sheet
(unaudited)
April 30, | January 31, | |||
2007 | 2007 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $24,354,204 | $17,322,194 | ||
Marketable securities | 27,897 | 24,090 | ||
Accounts receivable, net of allowance for doubtful | ||||
accounts of approximately $156,000 and | ||||
$133,000, respectively | 20,197,550 | 20,837,589 | ||
Inventories | 20,613,149 | 19,296,279 | ||
Prepaid expenses, deposits and other current assets | 1,717,692 | 1,748,130 | ||
Total current assets | 66,910,492 | 59,228,282 | ||
Property, plant and equipment, net | 16,114,947 | 16,832,988 | ||
Costs in excess of net assets of business acquired, net | 20,798,913 | 20,798,913 | ||
Other assets | 300,022 | 306,403 | ||
Total assets | $104,124,374 | $97,166,586 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities | ||||
Current portion of long-term debt | $1,979,722 | $1,955,202 | ||
Accounts payable | 6,699,695 | 6,450,813 | ||
Accrued salaries, wages and expenses | 4,909,644 | 4,135,342 | ||
Dividend payable | 757,389 | 757,029 | ||
Customers’ advances | 2,892,004 | 981,680 | ||
Deferred income taxes | 242,457 | 245,231 | ||
Total current liabilities | 17,480,911 | 14,525,297 | ||
Long-term debt | 5,034,456 | 5,417,990 | ||
Other non-current liabilities | 3,317,132 | 3,276,551 | ||
Deferred income taxes | 2,290,532 | 1,369,591 | ||
Total liabilities | 28,123,031 | 24,589,429 | ||
Shareholders’ equity | ||||
Common shares, $.10 par value; 18,000,000 shares | ||||
authorized, 12,846,608 shares issued, | ||||
of which 1,626,031 and 1,631,364 shares were | ||||
reacquired and held in treasury at the respective dates | 1,284,661 | 1,284,661 | ||
Additional paid-in capital | 8,039,875 | 7,910,708 | ||
Retained earnings | 77,917,406 | 74,921,913 | ||
Accumulated other comprehensive income (loss) | 228,458 | (33,471 | ) | |
Treasury shares, at cost | (11,469,057 | ) | (11,506,654 | ) |
Total shareholders’ equity | 76,001,343 | 72,577,157 | ||
Total liabilities and shareholders’ equity | $104,124,374 | $97,166,586 |
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Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
Three Months Ended April 30, | |||||
2007 | 2006 | ||||
Net sales | |||||
Product recovery/pollution control technologies | $10,546,886 | $9,298,349 | |||
Fluid handling technologies | 6,054,072 | 5,917,494 | |||
Filtration/purification technologies | 5,315,651 | 4,563,198 | |||
$21,916,609 | $19,779,041 | ||||
Income from operations | |||||
Product recovery/pollution control technologies | $913,060 | $566,714 | |||
Fluid handling technologies | 1,163,314 | 695,544 | |||
Filtration/purification technologies | 289,423 | 338,409 | |||
2,365,797 | 1,600,667 | ||||
Gain on sale of building | 3,513,940 | – | |||
$5,879,737 | $1,600,667 | ||||
April 30, | January 31, | ||||
2007 | 2007 | ||||
Identifiable assets | |||||
Product recovery/pollution control technologies | $34,810,198 | $35,332,252 | |||
Fluid handling technologies | 20,968,230 | 21,667,719 | |||
Filtration/purification technologies | 20,822,904 | 20,514,339 | |||
76,601,332 | 77,514,310 | ||||
Corporate | 27,523,042 | 19,652,276 | |||
$104,124,374 | $97,166,586 |
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Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Three Months Ended April 30, | ||||||
2007 | 2006 | |||||
Increase (Decrease) in Cash and Cash Equivalents | ||||||
Cash flows from operating activities | ||||||
Net income | $3,878,243 | $1,207,448 | ||||
Adjustments to reconcile net income to net | ||||||
cash provided by operating activities: | ||||||
Depreciation and amortization | 417,784 | 370,964 | ||||
Deferred income taxes | 904,929 | (553 | ) | |||
(Gain) on sale of property and equipment, net | (3,513,998 | ) | (4,410 | ) | ||
Stock-based compensation | 127,527 | 81,800 | ||||
Allowance for doubtful accounts | 23,302 | (79,003 | ) | |||
(Increase) decrease in operating assets: | ||||||
Accounts receivable | 761,011 | 1,740,117 | ||||
Inventories | (1,214,553 | ) | (1,147,983 | ) | ||
Prepaid expenses, deposits and other current assets | 44,199 | 86,777 | ||||
Other assets | (1,935 | ) | (2,250 | ) | ||
Increase (decrease) in operating liabilities: | ||||||
Accounts payable and accrued expenses | 787,810 | (1,072,742 | ) | |||
Customers’ advances | 1,908,041 | 262,518 | ||||
Other non-current liabilities | 40,581 | 549 | ||||
Net cash provided by operating activities | 4,162,941 | 1,443,232 | ||||
Cash flows from investing activities | ||||||
Proceeds from sale of property and equipment | 4,342,598 | 4,410 | ||||
Acquisitions of property and equipment | (354,559 | ) | (2,227,748 | ) | ||
Net cash provided by (used in) investing activities | 3,988,039 | (2,223,338 | ) | |||
Cash flows from financing activities | ||||||
Proceeds from new borrowing | – | 3,602,921 | ||||
Reduction of debt | (367,235 | ) | (330,508 | ) | ||
Exercise of stock options | 39,238 | 55,232 | ||||
Payment of dividends | (757,390 | ) | (699,820 | ) | ||
Net cash provided by (used in) financing activities | (1,085,387 | ) | 2,627,825 | |||
Effect of exchange rate changes on cash | (33,583 | ) | 29,778 | |||
Net increase in cash and cash equivalents | 7,032,010 | 1,877,497 | ||||
Cash and cash equivalents at February 1 | 17,322,194 | 17,683,305 | ||||
Cash and cash equivalents at April 30 | $24,354,204 | $19,560,802 |
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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 press 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 income before tax, net income, and basic and diluted earnings per share, excluding the gain on the sale of property previously associated with the Company’s Sethco business unit in Hauppauge, New York, as well as income before tax, net income, and basic and diluted earnings per share calculated in accordance with generally accepted accounting principles, for the first quarters ended April 30, 2007 and 2006:
Met-Pro Corporation
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
(unaudited)
Three Months Ended | |||||
April 30, | |||||
2007 | 2006 | ||||
Income before tax as reported | $6,016,891 | $1,775,660 | |||
Less: Gain on sale of building | (3,513,940 | ) | – | ||
Adjusted income before tax | $2,502,951 | $1,775,660 | |||
Net income as reported | $3,878,243 | $1,207,448 | |||
Less: Gain on sale of building | (2,213,782 | ) | – | ||
Adjusted net income | $1,664,461 | $1,207,448 | |||
Basic earnings per share as reported | $.35 | $.11 | |||
Adjusted basic earnings per share | $.15 | $.11 | |||
Diluted earnings per share as reported | $.34 | $.11 | |||
Adjusted diluted earnings per share | $.15 | $.11 | |||
Average common shares outstanding: | |||||
Basic shares | 11,220,577 | 11,199,599 | |||
Diluted shares | 11,468,767 | 11,439,813 | |||
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