This presentation includes forward-looking statements
which reflect the Company’s current views with respect
to future events and financial performance, but involve
uncertainties that could significantly impact results. The
Private Securities Litigation Reform Act of 1995 provides
a “safe harbor” for such forward-looking statements.
which reflect the Company’s current views with respect
to future events and financial performance, but involve
uncertainties that could significantly impact results. The
Private Securities Litigation Reform Act of 1995 provides
a “safe harbor” for such forward-looking statements.
Company Profile
§ Leading niche-oriented global provider of:
– Product recovery and pollution control
products and services
products and services
– Fluid handling products and services
§ Diversified portfolio of global businesses
and product lines
and product lines
§ Track record of strong financial performance over
41 year operating history
41 year operating history
§ Strong drivers of organic growth
Investment Highlights
§ High margin business with 40% recurring parts and
consumables sales
consumables sales
§ Strong growth and margin improvement opportunities:
– Expanding global presence - 14 facilities worldwide
including China, France, and Netherlands
including China, France, and Netherlands
– Gross margin improvement
– Leverage fixed operating cost structure
– Disciplined strategic acquisitions
§ Experienced management team/strong independent
Board of Directors
Board of Directors
§ Strong balance sheet
§ 33 consecutive years of dividends
Business Segments
Product Recovery/
Pollution Control Technologies
(52% of MPR Revenues)
Filtration/Purification Technologies
(22% of MPR revenues)
Fluid Handling Technologies
(26% of MPR revenues)
Synergistic operations:
ü Shared management
ü Joint customer outreach
ü Integrated products
ü Solutions provider
ü Ability to leverage
distribution channel
distribution channel
Business Units
Date
Acquired
Acquired
Centrifugal metal pumps for chemical, petrochemical,
hot oil and hot water applications with temperatures
up to 850° F
hot oil and hot water applications with temperatures
up to 850° F
Thermoset fiberglass reinforced plastic (“FRP”)
centrifugal pumps with flows up to 5,000 GPM
centrifugal pumps with flows up to 5,000 GPM
Thermoplastic pumps with flows up to 250 GPM
Chemical and biological odor control systems, fume
and gas scrubbers, air strippers and fans
and gas scrubbers, air strippers and fans
Pulse-jet fabric filters, cartridge collectors
and cyclones
and cyclones
Patented Tri-Stack™ mixed flow fans for laboratory
fume hood exhaust systems
fume hood exhaust systems
Catalytic, thermal and regenerative thermal oxidation
systems
systems
Duall
Flex-Kleen
Strobic Air
Systems
Business Unit
Description
1988
1998
1996
1966
1984
1971
1971
Custom pleating, filters, cartridges and filter housings
Horizontal disc, cartridge, bag, carbon and oil
absorbing filters
absorbing filters
Proprietary chemicals for treatment of municipal,
industrial and commercial water systems
industrial and commercial water systems
1971
1971
2002
2002
1993
Customers & Major Markets
§ Over 8,000 active customers
– Large cross-section of industries
including Fortune 1000 companies
including Fortune 1000 companies
§ Major markets include
– Pharmaceutical
– Chemical/petrochemical
– Food processing
– Metal finishing
– Saltwater aquariums
– Refinery
– Semiconductor/electronics
– Municipalities
– Universities
– Hospitals/public health
– Government facilities
Products from Single Units…
Mefiag Filter System
Flex-Kleen Pulse-Jet
Cartridge Dust Collector
Cartridge Dust Collector
Fybroc FRP Pumps
Strobic Air Patented
Tri-Stack™ Fan
Tri-Stack™ Fan
Dean
Metallic Pumps
Metallic Pumps
Sethco
Thermoplastic
Pumps
Thermoplastic
Pumps
Keystone
Custom Filter
Cartridges
Cartridges
Duall AroBIOS™ Bioscrubber
Pristine Water
Treatment
Chemicals
Treatment
Chemicals
…to Large, Complex Projects
Dean High
Temperature Pumps
Temperature Pumps
Fybroc FRP Pumps
Mefiag Filter Systems
Duall Multi Component
Hot Gas Scrubber System
Hot Gas Scrubber System
Flex-Kleen
Bag Houses
Bag Houses
Systems Rotary
Concentrator and
Recuperative
Concentrator and
Recuperative
Thermal Oxidizer
Strobic Air Patented
Tri-Stack™ Fans
Tri-Stack™ Fans
Growth Strategies
§ Increase penetration in existing markets
through cross-selling
through cross-selling
§ Expand geographic reach
§ Globally penetrate new markets
§ New product development
§ Strategic acquisitions and technology
licensing agreements
licensing agreements
§ Global sourcing
§ Strong customer focus
Growth Drivers
§ Favorable regulatory environment
§ Worldwide industrialization in
emerging markets
emerging markets
§ Reduction of energy consumption
§ Upgrade and retro-fit opportunities
§ End market expansion
§ Growing brand awareness worldwide
§ Process control and protection of
downstream equipment
downstream equipment
§ Performance improvement
Margin Improvement Strategies
§ Expand operating margin through:
– Pricing power
– Single source solutions
– Centralize purchasing function
• Global sourcing
• Volume discounts
– Consolidation
– Improved project execution
– Leverage operating expenses
– Higher margin international sales
Competitive Environment
§ No single competitor across full range of products
§ Fragmented competition:
– Large competitors with limited focus on our niches
– Small competitors with limited products and services,
geographic coverage, and financial strength
geographic coverage, and financial strength
§ Met-Pro outsourcing strategy minimizes growth constraints,
improves ability to serve customers in their local markets
improves ability to serve customers in their local markets
§ Met-Pro recognized as one of top suppliers in the niches
in which we compete
in which we compete
§ Diversity of products and knowledge of market niches
Restatement of Prior Period
Financial Statements
Financial Statements
§ Announced January 23, 2008
§ Premature recognition of revenue and net income
due to actions of a non-officer sales employee
due to actions of a non-officer sales employee
§ Impacts FYE January 31, 2007 and interim periods
ended April, July, and October 2007
ended April, July, and October 2007
§ Impacts sales, net income, and backlog
§ Updated 10-K and 10-Q’s expected to be filed
within the next two weeks
within the next two weeks
Financial Impact
($mil, except DEPS amounts) | FY 2007 | Q1 2008 | Q2 2008 | Q3 2008 |
DEPS, as reported | $0.47 | $0.25 | $0.17 | $0.18 |
DEPS, amended* | $0.46 | $0.24 | $0.13 | $0.20 |
Change | ($0.01) | ($0.01) | ($0.04) | +$0.02 |
Revenue, as reported | $91.4 | $21.9 | $27.6 | $28.1 |
Revenue, amended* | $90.6 | $20.8 | $25.2 | $29.0 |
Change | ($0.8) | ($1.1) | ($2.4) | +$0.9 |
Backlog, as reported | $28.6 | $30.0 | $26.5 | $20.6 |
Backlog, amended* | $29.5 | $31.9 | $30.8 | $22.1 |
Change | +$0.9 | +$1.9 | +$4.3 | +$1.5 |
* Per January 23, 2008 8-K filing
Strong Balance Sheet
$16.5 million
4.3 million
$20.8 million
Cash on Hand
Long-Term Debt
Cash, Net of Debt
$
Strong Dividend History
§ 4-for-3 stock split distributed November 14, 2007
§ 8.6% dividend increase announced on October 18, 2007
§ Quarterly dividend = 5.50 cents per share
§ Current yield = 2.1%
§ Dividend paid for 33 consecutive years
$0.146
$0.155
$0.166
$0.178
$0.191
$0.207
Why Invest in Met-Pro Today?
üHigh margin business
üRecurring revenue
üStrong growth drivers for revenue and margins
üExperienced management team
üStrong independent Board of Directors
üSolid balance sheet
üDividends paid for thirty-three consecutive years