SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the calander year ended December 31, 2006
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission file number 001-007763
A. Full title of the plan and address of the plan, if different from that of the issuer named below:
Met-Pro Corporation Retirement Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
Met-Pro Corporation
160 Cassell Road
PO Box 144
Harleysville, PA 19438
MET-PRO CORPORATION
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 2006 AND 2005
TABLE OF CONTENTS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
PAGE | |
NUMBER | |
2 | |
3 | |
4 | |
5 to 7 | |
8 | |
Signature | 9 |
Exhibit Index | 10 |
REGISTERED PUBLIC ACCOUNTING FIRM
Participants and Administrator
Met-Pro Corporation
Retirement Savings Plan
Harleysville, PA
We have audited the accompanying statements of net assets available for benefits of the Met-Pro Corporation Retirement Savings Plan as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Met-Pro Corporation Retirement Savings Plan as of December 31, 2006 and 2005, and the changes in its net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2006 is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ Margolis & Company P.C. | |
Certified Public Accountants | |
Bala Cynwyd, PA | |
June 11, 2007 |
DECEMBER 31, | |||
2006 | 2005 | ||
Assets: | |||
Cash | $ 2,561 | $ - | |
Investments, at current value: | |||
Mutual funds | 6,454,539 | 6,568,704 | |
Met-Pro Corporation common stock | 2,576,417 | 2,003,340 | |
Common/collective funds | 869,969 | - | |
Receivables: | |||
Loans receivable | 77,662 | 72,765 | |
Contribution receivable | 35,471 | - | |
Net assets available for benefits | $10,016,619 | $8,644,809 |
The notes to financial statements are an integral part of the above statement.
YEAR ENDED | ||||
DECEMBER 31, | ||||
2006 | 2005 | |||
Additions: | ||||
Contributions: | ||||
Employees | $ 865,535 | $ 764,628 | ||
Employer | 219,827 | 207,751 | ||
Total additions | 1,085,362 | 972,379 | ||
Deductions: | ||||
Benefits paid to beneficiaries | ||||
and terminated employees | 945,169 | 667,070 | ||
Administration expenses | 7,517 | 8,077 | ||
Other expenses | 5,035 | 6,881 | ||
Total deductions | 957,721 | 682,028 | ||
Investment income: | ||||
Dividends and interest | 350,202 | 188,171 | ||
Unrealized appreciation: | ||||
Mutual funds | 157,005 | 340,562 | ||
Met-Pro Corporation common stock | 480,290 | 293,696 | ||
Common collective funds | 3,024 | - | ||
Realized gain: | ||||
Mutual funds | 253,648 | 1,870 | ||
Met-Pro Corporation common stock | - | 8,562 | ||
Total investment income | 1,244,169 | 832,861 | ||
Net increase | 1,371,810 | 1,123,212 | ||
Net assets available for benefits: | ||||
Beginning of year | 8,644,809 | 7,521,597 | ||
End of year | $10,016,619 | $8,644,809 |
The notes to financial statements are an integral part of the above statement.
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
1. | Description of the Plan |
The following description of the Met-Pro Corporation Retirement Savings Plan ("the Plan") is provided for general information purposes only. Participants should refer to the plan agreement for a more complete description of the Plan's provisions.
General - The Plan is a defined contribution plan covering substantially all U.S. employees of Met-Pro Corporation ("the Company"). Employees become eligible to be participants in the Plan upon completing twelve months of employment and having attained the age of 21. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Employee contributions - The Plan provides employees with an option to enter into a salary reduction agreement with the Company, whereby a portion of the employee's compensation may be deferred by having the Company contribute such amount on the employee's behalf to the Plan. The maximum amount which an employee may elect to defer with respect to any plan year is subject to limitations as provided by the Internal Revenue Code.
Employer contributions - The Company may elect to contribute a matching percentage of one-half the participant’s eligible contributions for the plan year up to 4% of eligible compensation.
The Company may also choose to contribute a discretionary amount to the Plan. No such contributions have been made in 2006 or 2005.
Forfeitures - Forfeitures by terminated employees of amounts not vested are reallocated against plan administration fees. Employee forfeited, nonvested amounts were approximately $25,300 and $3,500 for the years ended December 31, 2006 and 2005, respectively.
Investment options - Participants can direct their allocable balances into mutual funds and sponsor corporate stock managed by PNC Advisors.
Participant accounts - Each participant's account is credited with his or her salary deferral contribution, employer matching contribution, if any, and an allocation of net investment income and charged with an allocation of administrative expenses. Allocations are based on the participant’s earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Participants may change their investment options at any time.
Amounts allocated to persons who terminated from the Plan but have not been paid totaled approximately $3,250,000 and $2,630,000 at December 31, 2006 and 2005, respectively.
Participant loans - Participants may borrow from their fund accounts up to a maximum of $50,000 or 50% of their vested balance, whichever is less. The loans are collateralized by the balance in the participant’s account and bear interest at rates ranging from 5% to 9.25%, which are commensurate with local prevailing rates as determined by the Plan Administrator.
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
1. | Description of the Plan - Continued |
Vesting - Participants are immediately vested in their voluntary contributions. Vesting in the remainder of their accounts is based on years of credited service. A participant is 100 percent vested after six years of credited service.
Plan termination - The Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.
2. | Summary of Significant Accounting Policies |
Basis of accounting - The accompanying financial statements have been prepared on the accrual basis of accounting.
Contributions - Employer matching and employee salary deferral contributions are included in the income of the Plan in the period for which the contribution is being made. The participants designate what percentage of their contribution, along with the employer match, is allocated to the various funds.
Payments of benefits - Benefits are recorded when paid.
Investments - Investments in mutual funds, Met-Pro Corporation common stock and common/collective funds held by the Plan are valued at quoted market prices. The difference between the year end market values and cost of current year acquisitions, and the difference between the beginning of the year and end of the year market values for assets held for the year is the unrealized appreciation and is included in the statement of changes in net assets available for benefits as net unrealized appreciation.
Concentrations of credit risk - At December 31, 2006 and 2005, the Plan maintained 100% of its investments with PNC Advisors.
Use of estimates - The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates
3. | Tax Status |
The Plan and related trust agreement are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has elected to utilize the PNC Bank Prototype Plan which received favorable status November 19, 2001. The Plan has been amended since receiving the determination letter. However, the plan administrator and the Plan’s tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code.
4. | Administration of Plan Assets |
The Plan's assets, which consist principally of investments, are held by the Trustee of the Plan. Certain administrative functions are performed by employees of the Company. No such employee received compensation from the Plan
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
5. | Investments |
The following individual investments exceeded 5% of the fair value of net assets available for plan benefits at December 31:
2006 | 2005 | ||
Fidelity Advisor Equity Growth Fund | $ 449,291 | $ 470,386 | |
Janus Adviser Balanced Fund | 945,733 | 422,598 | |
Janus Adviser Capital Appreciation Fund | 1,434,170 | 835,782 | |
Janus Adviser Growth and Income Fund | 1,202,634 | 1,281,994 | |
Janus Adviser Large Growth Fund | - | 666,162 | |
Met-Pro Corporation Common Stock | 2,576,417 | 2,003,340 | |
BlackRock Money Market Fund | - | 785,168 | |
BlackRock Balanced Fund | - | 437,500 | |
PNC Investment Contract Fund | 869,969 | - | |
6. | Plan Amendment |
During 2005, the Company enacted an amendment to the Plan affecting only terminated employees. For terminated employees with accounts over $1,000, but not over $5,000, an automatic rollover to a qualified retirement plan will be performed. Any terminated employee with less than $1,000 will receive a distribution representing their vested account balance less the applicable 20% federal income tax withholding, unless instructed to rollover such amount to either an IRA or another qualified retirement plan of their choice. |
DECEMBER 31, 2006
EIN 23-1683282
PLAN NUMBER 009
(a) | (b) | (c) | (d) | (e) | |||
DESCRIPTION OF INVESTMENT | |||||||
INCLUDING MATURITY | |||||||
IDENTITY OF ISSUE, | DATE, RATE OF INTEREST, | ||||||
BORROWER, LESSOR, | COLLATERAL, PAR OR | CURRENT | |||||
OR SIMILAR PARTY | MATURITY VALUE | COST | VALUE |
Cash | Uninvested Cash | $ 2,561 | $ 2,561 | ||
Mutual Funds: | |||||
AIM Basic Value Fund | Mutual fund, 2,543 shares | 77,927 | 93,064 | ||
American Century Small Cap Q | Mutual fund, 12,985 shares | 128,184 | 126,997 | ||
American Century Small Cap V | Mutual fund, 12,239 shares | 121,849 | 119,082 | ||
BlackRock Index Fund | Mutual fund, 10,425 shares | 226,244 | 282,735 | ||
Federated Mid-Cap Index Fund | Mutual fund, 13,688 shares | 287,638 | 314,014 | ||
Federated Total Return Bond | Mutual fund, 25,541 shares | 271,755 | 269,201 | ||
Fidelity Advisor Equity Growth Fund | Mutual fund, 8,787 shares | 449,424 | 449,291 | ||
Investment Company of America | Mutual fund, 3,399 shares | 108,442 | 113,910 | ||
Janus Adviser Balanced Fund | Mutual fund, 35,715 shares | 928,162 | 945,733 | ||
Janus Adviser Capital | |||||
Appreciation Fund | Mutual fund, 46,868 shares | 1,246,714 | 1,434,170 | ||
Janus Adviser Growth | |||||
and Income Fund | Mutual fund, 66,481 shares | 1,019,970 | 1,202,634 | ||
Janus Adviser International Fund | Mutual fund, 7,725 shares | 256,609 | 419,917 | ||
MPC SLF | Mutual fund, 1,112 shares | 1,112 | 1,112 | ||
Royce Value Plus Service Fund | Mutual fund, 8,823 shares | 123,920 | 124,319 | ||
T Rowe Ret 2010 R | Mutual fund, 4,624 shares | 74,990 | 72,960 | ||
T Rowe Ret 2020 R | Mutual fund, 17,400 shares | 304,338 | 299,620 | ||
T Rowe Ret 2030 R | Mutual fund, 507 shares | 9,513 | 9,361 | ||
T Rowe Ret 2040 R | Mutual fund, 2,031 shares | 38,511 | 37,884 | ||
Washington Mutual Investors Fund | Mutual fund, 3,974 shares | 120,599 | 138,535 | ||
5,795,901 | 6,454,539 | ||||
* | Met-Pro Corporation Stock | Common stock, 173,613 shares | 1,540,246 | 2,576,417 | |
Common/Collective Funds: | |||||
PNC Investment Contract Fund | Mutual Fund, 299,803 shares | 866,945 | 869,969 | ||
* | Participant loans | 5% - 10%; interest with | |||
varying maturity dates | - | 77,662 | |||
$8,205,653 | $9,981,148 |
MET-PRO CORPORATION RETIREMENT SAVINGS PLAN
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other person(s) who administer(s) the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
Met-Pro Corporation Retirement Savings Plan | |||
July 6, 2007 | By: /s/ Gary J. Morgan | ||
Date | Gary J. Morgan | ||
Plan Administrator |
MET-PRO CORPORATION RETIREMENT SAVINGS PLAN
Exhibit | ||
Number | Description | |
Consent of Independent Registered Public Accounting Firm | ||
* Filed herewith