![](https://capedge.com/proxy/8-K/0000065201-09-000025/mpr0526ex990.jpg)
Date: | May 22, 2009 | |
For Release: | Immediate | |
Contact: | Investor Contact: | |
Gary J. Morgan, | Joseph Hassett, VP | |
Senior Vice President of Finance, CFO | Gregory FCA Communications | |
215-723-6751 | 610-228-2110 |
Met-Pro Corporation Announces First Quarter Financial Results
Harleysville, PA, May 22, 2009 – 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, 2009.
Net sales for the first quarter ended April 30, 2009 were $19.6 million compared with net sales of $22.7 million for the same quarter last year. Net income totaled $1.0 million and diluted earnings per share were $0.07 for the first quarter, compared with net income of $1.9 million and diluted earnings per share of $0.13 for the same period last year.
“Results in the first quarter continue to reflect weakness in our large project revenues due to a global slowdown in capital spending as well as a moderating pace of general business activity,” said De Hont. “Gross margins in the quarter remained strong, reflecting the continued progress of our efficiency initiatives, including global sourcing, more effective logistics, and lean manufacturing, as well as the ability of our flexible manufacturing strategy to quickly adjust costs to match our level of business activity. Selling, general and administrative expenses for the first quarter, however, increased versus the same quarter last year primarily due to external variables such as the impact of fluctuations in the stock market on the Company’s pension plans combined with higher healthcare and stock option expenses. While we had previously taken actions to control expenses, such as freezing our pension plans, in the aggregate the increases in these expenses totaled approximately $500,000 in the first quarter. Selling expenses in last year’s first quarter included the positive effect of the receipt of a $300,000 legal settlement. When combined these four S,G&A items represent approximately a $0.04 per share difference between the respective quarters.
“During the first quarter, the Company generated $5.9 million in cash flow from operating activities. As a result, our balance sheet remains extremely strong with over $26.4 million in cash and only $4.9 million of debt. This will not only allow us to support investments to further enhance efficiency initiatives, develop new products, and expand into new growth markets, but will also allow us to take advantage of potential acquisition opportunities. Economic conditions are still posing a challenge, as demonstrated by our $18.9 million of bookings in the first quarter compared with $28.0 million for the same quarter last year. However, the underlying fundamental strength of our business leaves us well positioned to create long-term sustainable growth and value for our shareholders.”
On March 12, 2009, the Company paid a quarterly dividend of $0.06 per share to shareholders of record at the close of business on February 26, 2009. In addition, the Board of Directors, at their meeting on March 27, 2009, declared a quarterly dividend of $0.06 per share payable June 12, 2009 to shareholders of record at the close of business on May 29, 2009. The current quarterly dividend represents a 9.1% increase over the same period last year. This is the thirty-fourth consecutive year the Company has paid a cash or stock dividend.
Conference Call
Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and Chief Financial Officer, will hold a conference call for investors on Friday, May 22, 2009, at 11:00 AM (Eastern). Met-Pro’s earnings release and the accompanying financial supplement, which includes significant financial information to be discussed during the conference call, is available on Met-Pro’s Investor Relations website at www.met-pro.com/html/invrel.htm. Interested persons who wish to hear the live webcast should go to the Met-Pro Corporation website prior to the starting time to register, download and install any necessary audio software.
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You may also participate by calling the US/Canada Dial-In # 877-818-7738 or the International Dial-In # 706-643-9333 (conference ID 98364818) at 10:55 AM (Eastern) on May 22, 2009. A taped replay of the conference call will be available within two hours of the conclusion of the call and until June 5, 2009. To access the taped replay, call the US/Canada Dial-In # 800-642-1687 or the International Dial-In # 706-645-9291 and enter conference ID 98364818.
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized, for the third consecutive year, as one of America’s “200 Best Small Companies” by Forbes magazine. In 2008, the Company was also named one of the world’s “Top Small to Midsize Manufacturers” by Start-It magazine for the second year in a row. Through its business units, in the United States, Canada, Europe and The People's Republic of China, a wide range of products and services are offered for industrial, commercial, municipal and residential markets worldwide. These include product recovery and pollution control technologies for purification of air and liquids; fluid handling technologies for corrosive, abrasive and high temperature liquids; Mefiag filtration technologies for harsh, corrosive liquid filtration applications; and filtration and purification technologies which include proprietary water treatment chemicals and filter products for air and liquid filtration. 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 news 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 website at www.met-pro.com.
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Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
Three Months Ended | ||||||||
April 30, | ||||||||
2009 | 2008 | |||||||
Net sales | $19,641,008 | $22,656,474 | ||||||
Cost of goods sold | 12,628,040 | 15,064,250 | ||||||
Gross profit | 7,012,968 | 7,592,224 | ||||||
Operating expenses | ||||||||
Selling | 2,528,532 | 2,252,076 | ||||||
General and administrative | 3,012,327 | 2,643,919 | ||||||
5,540,859 | 4,895,995 | |||||||
Income from operations | 1,472,109 | 2,696,229 | ||||||
Interest expense | (53,823 | ) | (65,061 | ) | ||||
Other income, net | 13,965 | 175,815 | ||||||
Income before taxes | 1,432,251 | 2,806,983 | ||||||
Provision for taxes | 479,802 | 881,338 | ||||||
Net income | $952,449 | $1,925,645 | ||||||
Basic earnings per share | $.07 | $.13 | ||||||
Diluted earnings per share | $.07 | $.13 | ||||||
Average common shares outstanding: | ||||||||
Basic shares | 14,600,109 | 15,038,900 | ||||||
Diluted shares | 14,645,792 | 15,313,389 |
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Met-Pro Corporation
Consolidated Balance Sheet
(unaudited)
April 30, 2009 | January 31, 2009 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $26,446,717 | $21,749,653 | |||
Accounts receivable, net of allowance for doubtful | |||||
accounts of approximately $210,000 and | |||||
$167,000, respectively | 14,522,548 | 20,177,672 | |||
Inventories | 20,684,278 | 20,236,865 | |||
Prepaid expenses, deposits and other current assets | 1,722,518 | 1,997,542 | |||
Total current assets | 63,376,061 | 64,161,732 | |||
Property, plant and equipment, net | 19,810,977 | 19,389,597 | |||
Costs in excess of net assets of businesses acquired, net | 20,798,913 | 20,798,913 | |||
Other assets | 406,423 | 402,062 | |||
Total assets | $104,392,374 | $104,752,304 | |||
Liabilities and shareholders’ equity | |||||
Current liabilities | |||||
Current portion of long-term debt | $924,821 | $746,042 | |||
Accounts payable | 4,938,844 | 5,464,629 | |||
Accrued salaries, wages and expenses | 3,771,899 | 4,546,199 | |||
Dividend payable | 876,007 | 876,007 | |||
Customers’ advances | 384,100 | 356,008 | |||
Deferred income taxes | 250,782 | 250,782 | |||
Total current liabilities | 11,146,453 | 12,239,667 | |||
Long-term debt | 3,962,517 | 3,753,228 | |||
Other non-current liabilities | 8,940,189 | 8,855,912 | |||
Deferred income taxes | 1,137,425 | 1,126,016 | |||
Total liabilities | 25,186,584 | 25,974,823 | |||
Shareholders’ equity | |||||
Common shares, $.10 par value; 36,000,000 shares | |||||
authorized, 15,928,679 shares issued, | |||||
of which 1,328,570 shares were reacquired | |||||
and held in treasury at the respective dates | 1,592,868 | 1,592,868 | |||
Additional paid-in capital | 2,630,070 | 2,465,193 | |||
Retained earnings | 89,803,750 | 89,727,308 | |||
Accumulated other comprehensive loss | (4,137,303 | ) | (4,324,293 | ) | |
Treasury shares, at cost | (10,683,595 | ) | (10,683,595 | ) | |
Total shareholders’ equity | 79,205,790 | 78,777,481 | |||
Total liabilities and shareholders’ equity | $104,392,374 | $104,752,304 |
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Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
Three Months Ended April 30, | |||||
2009 | 2008 | ||||
Net sales | |||||
Product recovery/pollution control technologies | $7,569,982 | $9,504,792 | |||
Fluid handling technologies | 6,978,462 | 6,988,583 | |||
Mefiag filtration technologies | 2,487,250 | 3,255,155 | |||
Filtration/purification technologies | 2,605,314 | 2,907,944 | |||
$19,641,008 | $22,656,474 | ||||
Income (loss) from operations | |||||
Product recovery/pollution control technologies | $145,203 | $892,251 | |||
Fluid handling technologies | 1,306,005 | 1,379,954 | |||
Mefiag filtration technologies | (15,403 | ) | 159,128 | ||
Filtration/purification technologies | 36,304 | 264,896 | |||
$1,472,109 | $2,696,229 | ||||
April 30, | January 31, | ||||
2009 | 2009 | ||||
Identifiable assets | |||||
Product recovery/pollution control technologies | $34,891,160 | $39,623,284 | |||
Fluid handling technologies | 21,610,231 | 22,056,812 | |||
Mefiag filtration technologies | 11,623,897 | 11,410,677 | |||
Filtration/purification technologies | 9,444,864 | 9,369,905 | |||
77,570,152 | 82,460,678 | ||||
Corporate | 26,822,222 | 22,291,626 | |||
$104,392,374 | $104,752,304 |
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Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Three Months Ended April 30, | |||||
2009 | 2008 | ||||
Increase (Decrease) in Cash and Cash Equivalents | |||||
Cash flows from operating activities | |||||
Net income | $952,449 | $1,925,645 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 480,672 | 473,225 | |||
Deferred income taxes | (597 | ) | 4,686 | ||
(Gain) loss on sale of property and equipment, net | (12,195 | ) | 2,611 | ||
Stock-based compensation | 164,876 | 108,051 | |||
Allowance for doubtful accounts | 42,941 | 11,186 | |||
(Increase) decrease in operating assets: | |||||
Accounts receivable | 5,695,089 | 4,092,724 | |||
Inventories | (381,726 | ) | (531,236 | ) | |
Prepaid expenses and deposits | 558,434 | – | |||
Other assets | (283,798 | ) | 98,700 | ||
Increase (decrease) in operating liabilities: | |||||
Accounts payable and accrued expenses | (1,378,851 | ) | (1,749,774 | ) | |
Customers’ advances | 27,013 | 324,179 | |||
Other non-current liabilities | 84,276 | 14,986 | |||
Net cash provided by operating activities | 5,948,583 | 4,774,983 | |||
Cash flows from investing activities | |||||
Proceeds from sale of property and equipment | 18,882 | – | |||
Acquisitions of property and equipment | (797,497 | ) | (404,379 | ) | |
Net cash used in investing activities | (778,615 | ) | (404,379 | ) | |
Cash flows from financing activities | |||||
Proceeds from new borrowing | 485,336 | – | |||
Reduction of debt | (104,440 | ) | (366,906 | ) | |
Payment of dividends | (876,007 | ) | (827,136 | ) | |
Net cash used in financing activities | (495,111 | ) | (1,194,042 | ) | |
Effect of exchange rate changes on cash | 22,207 | (22,941 | ) | ||
Net increase in cash and cash equivalents | 4,697,064 | 3,153,621 | |||
Cash and cash equivalents at February 1 | 21,749,653 | 21,906,877 | |||
Cash and cash equivalents at April 30 | $26,446,717 | $25,060,498 |
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