Date: | June 4, 2010 | |
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
· Net Sales up 13% Versus Last Year’s First Quarter |
· Net Income up 48% Versus Last Year’s First Quarter |
Harleysville, PA, June 4, 2010 – 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, 2010.
Net sales for the first quarter ended April 30, 2010 were $22.3 million, the second highest first quarter net sales in the Company’s history, and up 13% from $19.6 million for the same quarter last year. Net income totaled $1.4 million and diluted earnings per share were $0.10 for the first quarter, compared with net income of $1.0 million and diluted earnings per share of $0.07 for the same period last year, increases of 48% and 43%, respectively.
New order bookings for the first quarter were up 17% to $22.2 million compared with $18.9 million for the first quarter last year. As a result, the Company’s backlog of orders as of April 30, 2010 totaled $17.3 million compared with $14.5 million last year, an increase of 19%. Substantially all of the April 30, 2010 backlog is expected to be shipped during the current fiscal year.
“We are encouraged by the growth achieved in our solid first quarter results,” stated De Hont. “Demand for Met-Pro’s products continues to improve as evidenced by the 17% increase in first quarter new order bookings, which follows a 13% increase in new order bookings during the second half of last fiscal year when compared with the first half. Our gross margin for the first quarter came in at approximately 36%, which is up slightly from last year’s first quarter. Cash flows from operating activities totaled $2.3 million, which increased our cash position at April 30, 2010 to $32.5 million, or $2.21 per diluted share, further solidifying our already strong balance sheet. The momentum in new order bookings, in combination with our steady q uotation activity, gives us continued optimism about our future prospects.”
On March 12, 2010, the Company paid a quarterly dividend of $0.06 per share to shareholders of record at the close of business on February 26, 2010. In addition, the Board of Directors, at their meeting on March 29, 2010, declared a quarterly dividend of $0.06 per share payable June 11, 2010 to shareholders of record at the close of business on May 28, 2010. This is the thirty-fifth consecutive year that Met-Pro Corporation has paid either 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, June 4, 2010, 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 prior to the beginning of the conference call.
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 74942496) at 10:55 AM (Eastern) today. A taped replay of the conference call will be available within two hours of the conclusion of the call and until June 18, 2010. 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 74942496.
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Met-Pro Corporation/Page 2
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, is a leading niche-oriented global provider of product recovery, pollution control and fluid handling solutions. The Company’s diverse and synergistic solutions and products address the world’s growing need to meet more stringent emission regulations, reduce energy consumption and employ green technology. Through its global sales organization, internationally recognized brands, and operations in the United States, Canada, Europe and The People's Republic of China, Met-Pro’s solutions, products and systems are sold to a well-diversified cross-section of customers and markets around the world. 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 Comp any. 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/Page 3
Met-Pro Corporation
Consolidated Statement of Income
(unaudited)
Three Months Ended | ||||||||
April 30, | ||||||||
2010 | 2009 | |||||||
Net sales | $22,277,077 | $19,641,008 | ||||||
Cost of goods sold | 14,295,538 | 12,628,040 | ||||||
Gross profit | 7,981,539 | 7,012,968 | ||||||
Operating expenses | ||||||||
Selling | 2,932,897 | 2,528,532 | ||||||
General and administrative | 2,945,602 | 3,012,327 | ||||||
5,878,499 | 5,540,859 | |||||||
Income from operations | 2,103,040 | 1,472,109 | ||||||
Interest expense | (82,510 | ) | (53,823 | ) | ||||
Other income, net | 117,468 | 13,965 | ||||||
Income before taxes | 2,137,998 | 1,432,251 | ||||||
Provision for taxes | 726,920 | 479,802 | ||||||
Net income | $1,411,078 | $952,449 | ||||||
Basic earnings per share | $.10 | $.07 | ||||||
Diluted earnings per share | $.10 | $.07 | ||||||
Average common shares outstanding: | ||||||||
Basic shares | 14,619,000 | 14,600,109 | ||||||
Diluted shares | 14,693,035 | 14,645,792 |
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Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Balance Sheet
April 30, | January 31, | |||||
2010 | 2010 | |||||
Assets | (unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $32,456,543 | $31,387,108 | ||||
Accounts receivable, net of allowance for | ||||||
doubtful accounts of approximately | ||||||
$185,000 and $204,000, respectively | 15,592,477 | 14,011,950 | ||||
Inventories | 15,680,708 | 16,136,521 | ||||
Prepaid expenses, deposits and other current assets | 1,418,008 | 1,709,664 | ||||
Total current assets | 65,147,736 | 63,245,243 | ||||
Property, plant and equipment, net | 19,500,572 | 19,860,751 | ||||
Goodwill | 20,798,913 | 20,798,913 | ||||
Other assets | 730,367 | 703,452 | ||||
Total assets | $106,177,588 | $104,608,359 | ||||
Liabilities and shareholders’ equity | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $528,761 | $534,251 | ||||
Accounts payable | 5,263,975 | 4,297,936 | ||||
Accrued salaries, wages and expenses | 4,064,286 | 3,425,691 | ||||
Dividend payable | 877,200 | 876,279 | ||||
Customers’ advances | 371,787 | 882,637 | ||||
Deferred income taxes | 181,253 | 181,253 | ||||
Total current liabilities | 11,287,262 | 10,198,047 | ||||
Long-term debt | 3,375,093 | 3,536,755 | ||||
Other non-current liabilities | 8,292,854 | 8,179,410 | ||||
Deferred income taxes | 1,712,508 | 1,716,563 | ||||
Total liabilities | 24,667,717 | 23,630,775 | ||||
Shareholders’ equity | ||||||
Common shares, $.10 par value; 36,000,000 shares | ||||||
authorized, 15,928,679 shares issued, of which | ||||||
1,308,687 and 1,311,664 shares were reacquired | ||||||
and held in treasury at the respective dates | 1,592,868 | 1,592,868 | ||||
Additional paid-in capital | 3,154,348 | 2,988,950 | ||||
Retained earnings | 91,195,957 | 90,662,820 | ||||
Accumulated other comprehensive loss | (3,828,041 | ) | (3,679,641 | ) | ||
Treasury shares, at cost | (10,605,261 | ) | (10,587,413 | ) | ||
Total shareholders’ equity | 81,509,871 | 80,977,584 | ||||
Total liabilities and shareholders’ equity | $106,177,588 | $104,608,359 |
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Met-Pro Corporation/Page 5
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
Three Months Ended April 30, | ||||||
2010 | 2009 | |||||
Net sales | ||||||
Product Recovery/Pollution Control Technologies | $11,013,225 | $7,569,982 | ||||
Fluid Handling Technologies | 6,530,571 | 6,978,462 | ||||
Mefiag Filtration Technologies | 2,434,249 | 2,487,250 | ||||
Filtration/Purification Technologies | 2,299,032 | 2,605,314 | ||||
$22,277,077 | $19,641,008 | |||||
Income (loss) from operations | ||||||
Product Recovery/Pollution Control Technologies | $516,161 | $145,203 | ||||
Fluid Handling Technologies | 1,288,796 | 1,306,005 | ||||
Mefiag Filtration Technologies | 206,519 | (15,403 | ) | |||
Filtration/Purification Technologies | 91,564 | 36,304 | ||||
$2,103,040 | $1,472,109 | |||||
April 30, | January 31, | |||||
2010 | 2010 | |||||
Identifiable assets | ||||||
Product Recovery/Pollution Control Technologies | $35,322,331 | $34,466,168 | ||||
Fluid Handling Technologies | 17,555,792 | 18,068,428 | ||||
Mefiag Filtration Technologies | 12,531,954 | 12,257,281 | ||||
Filtration/Purification Technologies | 8,211,089 | 8,257,837 | ||||
73,621,166 | 73,049,714 | |||||
Corporate | 32,556,422 | 31,558,645 | ||||
$106,177,588 | $104,608,359 |
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Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Three Months Ended April 30, | ||||||
2010 | 2009 | |||||
Cash flows from operating activities | ||||||
Net income | $1,411,078 | $952,449 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 445,252 | 480,672 | ||||
Deferred income taxes | (597 | ) | (597 | ) | ||
(Gain) on sales of property and equipment, net | – | (12,195 | ) | |||
Stock-based compensation | 161,472 | 164,876 | ||||
Allowance for doubtful accounts | (18,557 | ) | 42,941 | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (1,556,207 | ) | 5,695,089 | |||
Inventories | 395,944 | (381,726 | ) | |||
Prepaid expenses, deposits and other assets | 250,155 | 274,636 | ||||
Accounts payable and accrued expenses | 1,608,371 | (1,378,851 | ) | |||
Customers’ advances | (511,077 | ) | 27,013 | |||
Other non-current liabilities | 113,443 | 84,276 | ||||
Net cash provided by operating activities | 2,299,277 | 5,948,583 | ||||
Cash flows from investing activities | ||||||
Proceeds from sales of property and equipment | – | 18,882 | ||||
Acquisitions of property and equipment | (210,475 | ) | (797,497 | ) | ||
Net cash used in investing activities | (210,475 | ) | (778,615 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from new borrowings | – | 485,336 | ||||
Reduction of debt | (132,845 | ) | (104,440 | ) | ||
Exercise of stock options | 212,744 | – | ||||
Payment of dividends | (877,021 | ) | (876,007 | ) | ||
Purchase of treasury shares | (226,666 | ) | – | |||
Net cash used in financing activities | (1,023,788 | ) | (495,111 | ) | ||
Effect of exchange rate changes on cash | 4,421 | 22,207 | ||||
Net increase in cash and cash equivalents | 1,069,435 | 4,697,064 | ||||
Cash and cash equivalents at February 1 | 31,387,108 | 21,749,653 | ||||
Cash and cash equivalents at April 30 | $32,456,543 | $26,446,717 |
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