![](https://capedge.com/proxy/8-K/0001015402-04-003590/press_banner.jpg)
date: | August 24, 2004 | |
for release: | Immediate | |
contact: | Investor Contact: | Media Contact: |
Gary J. Morgan, VP of Finance, CFO | Dina Silver, 215-957-0300 | |
215-723-6751, gmorgan@met-pro.com | dsilver@dbcommunications.net |
Met-Pro Corporation Announces Financial Results
for the Second Quarter Ended 7/31/2004
Harleysville, PA, August 24 –Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE:MPR), today announced that second quarter sales were $20.4 million compared to $18.6 million for the same period last year and $4.7 million higher than the first quarter of this year. First half sales totaled $36.0 million compared to $35.6 million for the same period last year.
Net income for the second quarter ended July 31, 2004 totaled $1.6 million or slightly higher than the same period last year and $0.8 million higher than the first quarter of this year. For the first half, net income totaled $2.4 million compared to $2.9 million during last year's first half.
For the second quarter, both basic and diluted earnings per share were $0.19 per share compared to $0.19 per share for the same period last year and $0.09 higher than the first quarter of this year. For the first half, both basic and diluted earnings per share were $0.29 per share compared to $0.35 per share earned during last year’s first half.
“Met-Pro’s first half earnings were adversely impacted by a combination of product mix, pricing pressures and higher raw material costs”, said De Hont. “Our quotation activity remains high in both operating segments; however, while the net sales and income from operations of our Fluid Handling Segment have increased significantly during the first half, the net sales and income from operations of our Product Recovery/Pollution Control Segment have also been, and continue to be, adversely impacted by the delayed timing of the issuance of customer purchase orders for several larger dollar projects. In an effort to improve our gross margins and profit levels, we continue to review our operations and expenses, and have begun raising prices where feasible.”
On June 9, 2004 the Company paid a quarterly dividend of $.0725 per share to shareholders of record at the close of business on May 28, 2004. In addition, the Board of Directors, at their meeting on June 9, 2004, declared a quarterly dividend of $.0725 per share payable on September 9, 2004 to shareholders of record at the close of business on August 27, 2004. This represents a 7.4% increase over the corresponding dividends paid during the same periods last year.
This dividend represents the thirtieth consecutive year the Company has paid a cash or stock dividend.
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, manufactures and sells productrecovery/pollution control equipment for purification of air and liquids, and fluid handling equipment for corrosive, abrasive and high temperature liquids. With ten divisions and five wholly-owned subsidiaries, the company, established in 1966, providesproducts to residential, commercial, industrial and municipal markets that include, but are not limited to, pharmaceuticals,chemicals, petrochemicals, water and aquariums. For more information, please visitwww.met-pro.com.
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The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press 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 or s hipments, 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 stock is traded on the New York Stock Exchange, SymbolMPR.
Financial information should be considered in conjunction with the Management’s Discussion and Analysis of financial conditions and results of operations in the Company’s Annual Report and the Securities and Exchange Commission’s Form 10-K for the fiscal year ended January 31, 2004. To obtain an Annual Report, Form 10-K or additional information on the Company, please call 215-723-6751 and ask for the Investor Relations Department, or visit the Company’s Web site atwww.met-pro.com.
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
Three Months Ended | Six Months Ended | |||||||
July 31, | July 31, | |||||||
2004 | 2003 | 2004 | 2003 | |||||
Net sales | $20,350,024 | $18,626,209 | $35,984,670 | 35,628,478 | ||||
Cost of goods sold | 13,948,861 | 11,977,741 | 24,521,075 | 22,745,043 | ||||
Gross profit | 6,401,163 | 6,648,468 | 11,463,595 | 12,883,435 | ||||
Operating expenses | ||||||||
Selling | 1,964,071 | 1,891,418 | 3,896,439 | 3,810,466 | ||||
General and administrative (a) | 1,946,955 | 2,092,885 | 3,749,263 | 4,134,521 | ||||
Income from operations | 2,490,137 | 2,664,165 | 3,817,893 | 4,938,448 | ||||
Interest expense | (90,095 | ) | (111,719 | ) | (186,942 | ) | (227,797 | ) |
Other income, net | 60,116 | 67,657 | 140,581 | 131,720 | ||||
Unusual charge - patent litigation (a) | (20,131 | ) | (244,286 | ) | (97,792 | ) | (420,967 | ) |
Income before taxes | 2,440,027 | 2,375,817 | 3,673,740 | 4,421,404 | ||||
Provision for taxes | 829,610 | 807,778 | 1,249,074 | 1,503,277 | ||||
Net income | $1,610,417 | $1,568,039 | $2,424,666 | $2,918,127 | ||||
Basic earnings per share | $.19 | $.19 | $.29 | $.35 | ||||
Diluted earnings per share | $.19 | $.19 | $.29 | $.35 | ||||
Average common shares outstanding: | ||||||||
Basic shares | 8,348,996 | 8,288,492 | 8,352,252 | 8,288,492 | ||||
Diluted shares | 8,476,042 | 8,344,919 | 8,474,359 | 8,350,381 | ||||
Adjusted for four-for-three stock split. | ||||||||
(a) Reclassified legal expenses related to patent litigation from general and administrative expense to unusualcharge – patent litigation for the three-month and six-month periods ended July 31, 2003.
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Met-Pro Corporation
Condensed Consolidated Balance Sheet
(unaudited)
July 31, | January 31, | ||
2004 | 2004 | ||
Assets | |||
Current assets | $47,215,825 | $48,173,429 | |
Property, plant and equipment, net | 11,266,390 | 11,514,199 | |
Costs in excess of net assets of businesses acquired, net | 20,798,913 | 20,798,913 | |
Other assets | 636,195 | 649,016 | |
Total assets | $79,917,323 | $81,135,557 | |
Liabilities and shareholders’ equity | |||
Current liabilities | $12,652,916 | $14,229,463 | |
Long-term debt | 4,409,075 | 5,447,869 | |
Other liabilities | 1,234,054 | 1,187,491 | |
Total liabilities | 18,296,045 | 20,864,823 | |
Shareholders’ equity | 61,621,278 | 60,270,734 | |
Total liabilities and shareholders’ equity | $79,917,323 | $81,135,557 | |
Consolidated Business Segment Data
(unaudited)
Six Months Ended July 31, | |||
2004 | 2003 | ||
Net sales | |||
Product recovery/pollution control equipment | $21,655,882 | $23,758,091 | |
Fluid handling equipment | 14,328,788 | 11,870,387 | |
$35,984,670 | $35,628,478 | ||
Income from operations | |||
Product recovery/pollution control equipment | $1,951,500 | $3,473,546 | |
Fluid handling equipment | 1,866,393 | 1,464,902 | |
$3,817,893 | $4,938,448 | ||
July 31, | January 31, | ||
2004 | 2004 | ||
Identifiable assets | |||
Product recovery/pollution control equipment | $42,983,174 | $44,613,967 | |
Fluid handling equipment | 19,632,098 | 19,313,159 | |
62,615,272 | 63,927,126 | ||
Corporate | 17,302,051 | 17,208,431 | |
$79,917,323 | $81,135,557 | ||
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Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Six Months Ended July 31, | |||||
2004 | 2003 | ||||
Increase (Decrease) in Cash and Cash Equivalents | |||||
Cash flows from operating activities | |||||
Net income | $2,424,666 | $2,918,127 | |||
Adjustments to reconcile net income to net | |||||
cash provided by operating activities: | |||||
Depreciation and amortization | 730,184 | 779,082 | |||
Deferred income taxes | (1,415 | ) | (7,129 | ) | |
Allowance for doubtful accounts | (43,052 | ) | 53,813 | ||
(Increase) decrease in operating assets: | |||||
Accounts receivable | 951,785 | (1,388,503 | ) | ||
Inventories | (691,701 | ) | (214,657 | ) | |
Prepaid expenses, deposits and other current assets | 343,568 | 299,032 | |||
Other assets | (4,734 | ) | (4,674 | ) | |
Increase (decrease) in operating liabilities: | |||||
Accounts payable and accrued expenses | (1,175,236 | ) | 1,692,272 | ||
Customers’ advances | (355,780 | ) | 622,565 | ||
Other non-current liabilities | (6,788 | ) | 1,098 | ||
Net cash provided by operating activities | 2,171,497 | 4,751,026 | |||
Cash flows from investing activities | |||||
Acquisitions of property and equipment | (504,055 | ) | (505,488 | ) | |
Net cash (used in) investing activities | (504,055 | ) | (505,488 | ) | |
Cash flows from financing activities | |||||
Reduction of debt | (918,463 | ) | (918,463 | ) | |
Exercise of stock options | 641,872 | - | |||
Payment of dividends | (1,209,101 | ) | (1,118,947 | ) | |
Purchase of treasury shares | (481,687 | ) | - | ||
Net cash (used in) financing activities | (1,967,379 | ) | (2,037,410 | ) | |
Effect of exchange rate changes on cash | (31,435 | ) | 24,861 | ||
Net increase (decrease) in cash and cash equivalents | (331,372 | ) | 2,232,989 | ||
Cash and cash equivalents at February 1 | 16,996,253 | 13,429,367 | |||
Cash and cash equivalents at July 31 | $16,664,881 | $15,662,356 | |||
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