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.
For FYE 1/31
Financial Highlights
For FYE 1/31
$
7
8
.
2
$
7
4
.
4
$
8
7
.
7
$
9
3
.
5
$
1
0
6
.
9
$
4
0
$
5
0
$
6
0
$
7
0
$
8
0
$
9
0
$
1
0
0
$
1
1
0
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
Net Sales
For FYE 1/31/2008
$30,208,043
$30,208,043
Central
America
2.2%
America
2.2%
Other
1.4%
1.4%
Caribbean
4.7%
4.7%
Southeast Asia
4.9%
4.9%
Africa &
Middle East
7.2%
Middle East
7.2%
North Pacific
11.6%
11.6%
Canada
19.2%
19.2%
South America
19.7%
19.7%
Europe
29.2%
29.2%
International Net Sales
• Total International Sales increased 34%
– Product Recovery/Pollution Control International
Sales increased 72%
Sales increased 72%
– Filtration/Purification International Sales
increased 27%
increased 27%
2007
75.9%
U. S. Sales
24.1%
Foreign Sales
2008
28.3%
Foreign Sales
71.7%
U. S. Sales
2008 International
• Growth in international markets
remained strong
remained strong
• Countries around the globe
continue to invest in expanding
their industrial infrastructure
continue to invest in expanding
their industrial infrastructure
Sales $30.2 million
34%
Operating Income $4.1 million
+100%
(a) Adjusted for (i) a $2.2 million or $0.14 net gain from a property sale in the FYE 2008, (ii) $0.2 million of non-recurring
costs in the FYE 2007 related to the relocation of the Company’s Sethco and Mefiag business units and the expansion
of the Company’s Netherlands and Telford, Pennsylvania facilities, (iii) a one time loss amounting to $0.2 million on the
curtailment of pension benefits in the FYE 2007, and (iv) an increase in the estimated tax rate primarily related to a
reduction in the tax benefit provided by R&D tax credits which amounted to $0.6 million in the FYE 2006, of which $0.5
million related to the three year period ended 1/31/2005
costs in the FYE 2007 related to the relocation of the Company’s Sethco and Mefiag business units and the expansion
of the Company’s Netherlands and Telford, Pennsylvania facilities, (iii) a one time loss amounting to $0.2 million on the
curtailment of pension benefits in the FYE 2007, and (iv) an increase in the estimated tax rate primarily related to a
reduction in the tax benefit provided by R&D tax credits which amounted to $0.6 million in the FYE 2006, of which $0.5
million related to the three year period ended 1/31/2005
For FYE 1/31
(a)
(a)
(a)
(a)
(a)
Adjusted Net Income
For FYE 1/31
(a)
(a)
(a)
(a)
(a)
(a) Adjusted for (i) a $2.2 million or $0.14 net gain from a property sale in the FYE 2008, (ii) $0.2 million of non-recurring
costs in the FYE 2007 related to the relocation of the Company’s Sethco and Mefiag business units and the expansion
of the Company’s Netherlands and Telford, Pennsylvania facilities, (iii) a one time loss amounting to $0.2 million on the
curtailment of pension benefits in the FYE 2007, and (iv) an increase in the estimated tax rate primarily related to a
reduction in the tax benefit provided by R&D tax credits which amounted to $0.6 million in the FYE 2006, of which $0.5
million related to the three year period ended 1/31/2005
costs in the FYE 2007 related to the relocation of the Company’s Sethco and Mefiag business units and the expansion
of the Company’s Netherlands and Telford, Pennsylvania facilities, (iii) a one time loss amounting to $0.2 million on the
curtailment of pension benefits in the FYE 2007, and (iv) an increase in the estimated tax rate primarily related to a
reduction in the tax benefit provided by R&D tax credits which amounted to $0.6 million in the FYE 2006, of which $0.5
million related to the three year period ended 1/31/2005
Adjusted EPS, Diluted
Net Income
(Millions)
(Millions)
$ 1.5
$ 1.9
2007
2008
(a)
Percent
Change
Change
Net Sales
(Millions)
(Millions)
$21.4
$22.7
Earnings Per
Share (Dollars)
Share (Dollars)
$ 0.10
$ 0.13
(a) 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.
Company’s Sethco business unit in Hauppauge, New York.
Ended 4/30
Bookings
(Millions)
(Millions)
$23.9
$28.0
28%
6%
30%
17%
(a)
First Quarter
Ended 4/30/2008
Cash on Hand (Millions)
Current Ratio
Total Debt to Equity
$25.1
4.4
6.8%
$1.64 per
share
Financial Strength
$
.
1
5
5
$
.
1
6
6
$
.
1
7
8
$
0
.
1
9
1
$
.
2
0
7
$
.
0
5
5
$
0
.
0
0
$
0
.
0
5
$
0
.
1
0
$
0
.
1
5
$
0
.
2
0
$
0
.
2
5
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
Current Yield = 1.6%
Projected
For FYE 1/31
• First quarter dividend of $0.055 per share payable on June 12, 2008
• A 9% increase over the prior year first quarter dividend
33 Straight Years of Dividends
Overview
• Best year in the Company’s history despite a
weak economic environment
weak economic environment
• Record high sales and earnings
• Strong momentum
• Strong pace of business activity
• Expanding operating margins
• Continue growth
• Increase international sales
• Improve operating margins
• Increase and improve product development
Fiscal 2008 Goals:
Delivering on Our Commitments
Continue Growth
• Sales exceeded $100 million for the first time
in the Company’s history
in the Company’s history
• Third consecutive year of increased sales
For FYE 1/31/2008
$30,208,043
$30,208,043
Central
America
2.2%
America
2.2%
Other
1.4%
1.4%
Caribbean
4.7%
4.7%
Southeast Asia
4.9%
4.9%
Africa &
Middle East
7.2%
Middle East
7.2%
North Pacific
11.6%
11.6%
Canada
19.2%
19.2%
South America
19.7%
19.7%
Europe
29.2%
29.2%
Increase International Sales
• International sales
up 34%
up 34%
• International sales
accounted for 28% of
total fiscal 2008 sales
accounted for 28% of
total fiscal 2008 sales
Improve Operating Margins
• Gross margins increased 190 basis points
• SG&A decreased 90 basis points
• Record net income
Product Development
• Appointed full time Technical Director
• Expanded product offerings
New Products
• Duall introduced a new HLFW
Hydro-Lance® wet particulate
collector
Hydro-Lance® wet particulate
collector
• Systems successfully
commissioned and started-up
a thermal oxidizer revamp at
an ethanol plant that is the
first known facility to recover
water from the flue gas
commissioned and started-up
a thermal oxidizer revamp at
an ethanol plant that is the
first known facility to recover
water from the flue gas
New Products
• Keystone introduced a unique,
new patented GIANT® Filter
housing and a new line of
sub-micronic filter cartridges
new patented GIANT® Filter
housing and a new line of
sub-micronic filter cartridges
• Fybroc expanded its 2530
magnetic drive pump series to
include a 4x6x13 pump size
magnetic drive pump series to
include a 4x6x13 pump size
New Products
• Mefiag introduced a high-
capacity, high temperature
filter line
capacity, high temperature
filter line
• Strobic Air introduced a
75 horsepower Tri-Stack™
fan designed for high
pressure and high flow
75 horsepower Tri-Stack™
fan designed for high
pressure and high flow
Third Party Recognition
• Met-Pro recognized
for second
consecutive year
as one of America’s
“200 Best Small
Companies” by
Forbes magazine
for second
consecutive year
as one of America’s
“200 Best Small
Companies” by
Forbes magazine
According to Forbes,
these companies
“must pass thru a
gauntlet to qualify
for the list”
these companies
“must pass thru a
gauntlet to qualify
for the list”
Third Party Recognition
Growth Strategies
• Increase penetration in existing markets
• 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
• Leading niche market company
with established international brand
name recognition
with established international brand
name recognition
• Large installed base
• Improving cost structure
• Favorable regulatory environment
• Worldwide industrialization in
emerging markets
emerging markets
• Reduction of energy consumption
• Upgrade and retro-fit opportunities
• End market expansion
• Process control and protection of
downstream equipment
downstream equipment
• Performance improvement
Margin Improvement Strategies
• Expand operating margin through:
– Pricing power
– Single source solutions
– Global sourcing
– Volume discounts
– Consolidation
– Improved project execution
– Leverage operating expenses
– Higher margin international sales
Summary
• Record sales and earnings
• Three consecutive years of rising sales ~
exceeded $100 million for first time in history
exceeded $100 million for first time in history
• International brand recognition driving rapid global
growth
growth
• Growing base of installed equipment creates recurring
demand for parts and consumables ~ 40% of sales
demand for parts and consumables ~ 40% of sales
• Improved efficiencies, product mix, scale economies
driving margin expansion
driving margin expansion
• Strong momentum
• Strong pace of business activity
• Strong balance sheet