![](https://capedge.com/proxy/8-K/0000065201-09-000058/mpk8k20090408ex990.jpg)
Date: | November 20, 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 Third Quarter Financial Results
Harleysville, PA, November 20, 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 third quarter ended October 31, 2009.
Net sales for the third quarter ended October 31, 2009 were $19.8 million compared with net sales of $28.0 million for the same quarter last year. For the third quarter, the Company reported net income of $1.0 million, or $0.07 per diluted share, compared with net income of $3.0 million, or $0.20 per diluted share, for the third quarter of last year.
“Results in the quarter reflect the lagging effect on both net sales and earnings from the slowdown in global economic activity that began last year,” stated De Hont. “Reflecting some improvement in our markets, new orders in the third quarter were $25.5 million, our best quarterly bookings since the third quarter of last year and up 31% sequentially from our second quarter. The recovery in new orders is being led by an improvement in large project bookings within our Product Recovery/Pollution Control Technologies segment, which totaled $5.5 million in the third quarter, the highest quarterly large project bookings since the quarter ended January 31, 2007. With end markets improving, we believe our wide breadth of high-quality comprehensive solutions that meet the increasing demand for a cleaner, more energy efficient environment will enable us to continue to increase our share of this growing global market.”
During the first nine months of the current fiscal year, the Company generated a record $14.8 million in cash flow from operating activities, resulting in a record $32.3 million cash position on October 31, 2009.
Net sales for the nine months ended October 31, 2009 were $60.3 million compared with $78.8 million for the same period last year. Net income for the nine months ended October 31, 2009 totaled $3.2 million compared with $7.6 million for the same period last year. For the nine months ended October 31, 2009, earnings were $0.22 per diluted share compared with earnings of $0.50 per diluted share for last year’s first nine months.
“We are encouraged by our solid third quarter bookings, the second sequential quarter of increasing new orders, and especially our recent success in closing several large projects,” added De Hont. “While these new orders are signs of an improvement in the markets we serve, the lack of any significant global economic growth represents a challenge to capital spending, necessitating continued caution regarding the strength of any recovery in the near term. With record cash, our balance sheet remains extremely strong. We continue to focus on increasing our operating efficiencies, which has allowed us to effectively compete for new business while achieving 34% gross margins for the first nine months, consistent with the same period a year ago despite lower revenue levels. The underlying fundamental strength of our business leaves us well positioned to create long-term sustainable growth and value for our shareholders.”
On October 21, 2009, the Company declared a quarterly dividend of $0.06 per share payable December 11, 2009 to shareholders of record at the close of business on November 27, 2009. This is the thirty-fifth consecutive year the Company has paid a cash or stock dividend.
Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and Chief Financial Officer will hold a conference call for investors today, November 20, 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, will be available on Met-Pro’s Investor Relations website at www.met-pro.com/html/invrel.htm.
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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.
You may also participate by calling the US/Canada Dial-In # 877-818-7738 or the International Dial-In # 706-643-9333 (conference ID 39891810) at 10:55 AM (Eastern) today, November 20, 2009. A taped replay of the conference call will be available within two hours of the conclusion of the call and until December 4, 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 39891810.
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized as one of “America’s Fastest Growing Small Companies” by Fortune Small Business magazine. In 2008, the Company was also named one of America’s “200 Best Small Companies” by Forbes magazine for the third 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 is 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, goodwill impairment, 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 Income
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||
October 31, | October 31, | |||||||||
2009 | 2008 | 2009 | 2008 | |||||||
Net sales | $19,807,781 | $27,979,483 | $60,334,372 | $78,781,675 | ||||||
Cost of goods sold | 13,131,244 | 17,734,396 | 39,538,914 | 51,311,316 | ||||||
Gross profit | 6,676,537 | 10,245,087 | 20,795,458 | 27,470,359 | ||||||
Operating expenses | ||||||||||
Selling | 2,366,455 | 3,139,258 | 7,415,388 | 8,111,853 | ||||||
General and administrative | 2,771,681 | 2,949,983 | 8,599,958 | 8,501,240 | ||||||
Income from operations | 1,538,401 | 4,155,846 | 4,780,112 | 10,857,266 | ||||||
Interest expense | (58,994 | ) | (51,182 | ) | (166,449 | ) | (179,948 | ) | ||
Other income, net | 61,689 | 77,838 | 138,441 | 376,768 | ||||||
Income before taxes | 1,541,096 | 4,182,502 | 4,752,104 | 11,054,086 | ||||||
Provision for taxes | 516,266 | 1,171,136 | 1,591,957 | 3,414,114 | ||||||
Net income | $1,024,830 | $3,011,366 | $3,160,147 | $7,639,972 | ||||||
Basic earnings per share | $.07 | $.20 | $.22 | $.51 | ||||||
Diluted earnings per share | $.07 | $.20 | $.22 | $.50 | ||||||
Average common shares outstanding: | ||||||||||
Basic shares | 14,600,109 | 15,042,572 | 14,600,109 | 15,013,042 | ||||||
Diluted shares | 14,676,525 | 15,402,764 | 14,676,297 | 15,359,048 |
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Met-Pro Corporation
Consolidated Balance Sheet
October 31, | January 31, | |||||
2009 | 2009 | |||||
Assets | (unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $32,285,796 | $21,749,653 | ||||
Accounts receivable, net of allowance for doubtful | ||||||
accounts of approximately $268,000 and | ||||||
$167,000, respectively | 13,537,023 | 20,177,672 | ||||
Inventories | 16,681,236 | 20,236,865 | ||||
Prepaid expenses, deposits and other current assets | 1,474,154 | 1,997,542 | ||||
Total current assets | 63,978,209 | 64,161,732 | ||||
Property, plant and equipment, net | 20,240,188 | 19,389,597 | ||||
Costs in excess of net assets of businesses acquired, net | 20,798,913 | 20,798,913 | ||||
Other assets | 697,687 | 402,062 | ||||
Total assets | $105,714,997 | $104,752,304 | ||||
Liabilities and shareholders’ equity | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $984,301 | $746,042 | ||||
Accounts payable | 4,584,270 | 5,464,629 | ||||
Accrued salaries, wages and expenses | 4,376,192 | 4,546,199 | ||||
Dividend payable | 876,007 | 876,007 | ||||
Customers’ advances | 655,599 | 356,008 | ||||
Deferred income taxes | 250,782 | 250,782 | ||||
Total current liabilities | 11,727,151 | 12,239,667 | ||||
Long-term debt | 3,730,580 | 3,753,228 | ||||
Other non-current liabilities | 8,501,119 | 8,855,912 | ||||
Deferred income taxes | 1,149,876 | 1,126,016 | ||||
Total liabilities | 25,108,726 | 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 | 2,959,818 | 2,465,193 | ||||
Retained earnings | 90,259,436 | 89,727,308 | ||||
Accumulated other comprehensive loss | (3,522,256 | ) | (4,324,293 | ) | ||
Treasury shares, at cost | (10,683,595 | ) | (10,683,595 | ) | ||
Total shareholders’ equity | 80,606,271 | 78,777,481 | ||||
Total liabilities and shareholders’ equity | $105,714,997 | $104,752,304 |
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Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||
October 31, | October 31, | |||||||||
2009 | 2008 | 2009 | 2008 | |||||||
Net sales | ||||||||||
Product recovery/pollution control technologies | $9,012,363 | $13,863,654 | $26,900,405 | $37,554,600 | ||||||
Fluid handling technologies | 5,781,338 | 8,213,799 | 18,491,303 | 23,070,719 | ||||||
Mefiag filtration technologies | 2,502,795 | 2,809,550 | 6,981,727 | 9,114,722 | ||||||
Filtration/purification technologies | 2,511,285 | 3,092,480 | 7,960,937 | 9,041,634 | ||||||
$19,807,781 | $27,979,483 | $60,334,372 | $78,781,675 | |||||||
Income (loss) from operations | ||||||||||
Product recovery/pollution control technologies | $561,966 | $1,853,682 | $1,610,321 | $4,444,955 | ||||||
Fluid handling technologies | 833,094 | 1,785,470 | 3,110,175 | 5,022,442 | ||||||
Mefiag filtration technologies | 47,062 | 188,082 | (111,372 | ) | 525,984 | |||||
Filtration/purification technologies | 96,279 | 328,612 | 170,988 | 863,885 | ||||||
$1,538,401 | $4,155,846 | $4,780,112 | $10,857,266 | |||||||
October 31, | January 31, | |||||||||
2009 | 2009 | |||||||||
Identifiable Assets | ||||||||||
Product recovery/pollution control technologies | $33,928,381 | $39,623,284 | ||||||||
Fluid handling technologies | 18,749,392 | 22,056,812 | ||||||||
Mefiag filtration technologies | 12,013,591 | 11,410,677 | ||||||||
Filtration/purification technologies | 8,408,003 | 9,369,905 | ||||||||
73,099,367 | 82,460,678 | |||||||||
Corporate | 32,615,630 | 22,291,626 | ||||||||
$105,714,997 | $104,752,304 |
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Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Nine Months Ended October 31, | ||||||
2009 | 2008 | |||||
Increase (Decrease) in Cash and Cash Equivalents | ||||||
Cash flows from operating activities | ||||||
Net income | $3,160,147 | $7,639,972 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 1,458,401 | 1,441,242 | ||||
Deferred income taxes | (1,792 | ) | 1,147 | |||
(Gain) on sale of property and equipment, net | (13,695 | ) | (18,174 | ) | ||
Stock-based compensation | 494,625 | 324,153 | ||||
Allowance for doubtful accounts | 101,492 | 26,580 | ||||
(Increase) decrease in operating assets: | ||||||
Accounts receivable | 6,910,662 | (590,531 | ) | |||
Inventories | 3,832,976 | (167,617 | ) | |||
Prepaid expenses, deposits and other assets | 251,165 | 461,085 | ||||
Increase (decrease) in operating liabilities: | ||||||
Accounts payable and accrued expenses | (1,385,430 | ) | (988,259 | ) | ||
Customers’ advances | 298,448 | 86,744 | ||||
Other non-current liabilities | (354,793 | ) | (432,747 | ) | ||
Net cash provided by operating activities | 14,752,206 | 7,783,595 | ||||
Cash flows from investing activities | ||||||
Proceeds from sale of property and equipment | 20,382 | 20,785 | ||||
Acquisitions of property and equipment | (1,826,975 | ) | (1,368,841 | ) | ||
Net cash used in investing activities | (1,806,593 | ) | (1,348,056 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from new borrowing | 485,336 | – | ||||
Reduction of debt | (373,336 | ) | (1,272,597 | ) | ||
Exercise of stock options | – | 1,912,398 | ||||
Payment of dividends | (2,628,020 | ) | (2,483,956 | ) | ||
Acquisition of treasury stock | – | (7,694,333 | ) | |||
Net cash used in financing activities | (2,516,020 | ) | (9,538,488 | ) | ||
Effect of exchange rate changes on cash | 106,550 | 28,445 | ||||
Net increase in cash and cash equivalents | 10,536,143 | (3,074,504 | ) | |||
Cash and cash equivalents at February 1 | 21,749,653 | 21,906,877 | ||||
Cash and cash equivalents at October 31 | $32,285,796 | $18,832,373 |
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