EX-99 2 mprnr03012005.htm NEWS RELEASE news release
 
date:
March 1, 2005
for release:
Immediate
contact:
Investor Contact:
 
Gary J. Morgan, Vice President of Finance, CFO
 
215-723-6751, gmorgan@met-pro.com


Met-Pro Corporation Announces Financial Results
for the Fiscal Year Ended 1/31/2005

Harleysville, PA, March 1 - Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE: MPR), today announced sales and earnings per share for the fourth quarter and full year ended January 31, 2005.

Sales for the fourth quarter were $18.7 million compared to $19.6 million for the same period last year. Sales for the fiscal year ended January 31, 2005 totaled $72.1 million compared to $75.1 million for the same period last year.

Basic and diluted earnings per share for the fourth quarter ended January 31, 2005 were $0.17 compared to $0.21 for the same period last year. Basic and diluted earnings per share for the fiscal year ended January 31, 2005 were $0.58 and $0.57, respectively, compared to $0.76 for the prior fiscal year.

Met-Pro’s bookings of new orders in the fourth quarter were the highest of any fourth quarter in the Company’s history totaling $18.6 million compared to $16.3 million for the same period last year. As a result, Met-Pro’s backlog of orders received and released for manufacturing now totals $11.7 million compared to $7.3 million for the period ended January 31, 2004 and is the second highest backlog total entering a new fiscal year in the Company’s history.

The Company’s cash flows from operating activities totaled $8.5 million compared to $8.2 million for the fiscal year ended January 31, 2004. Cash flows from operating activities per share for the full year increased $.03 to $1.01 over the $.98 earned during the fiscal year ended 2004.

“Our record high fourth quarter bookings and strong backlog of orders serve as a solid base for the first quarter of the new fiscal year,” stated De Hont. “In addition, the combination of a strong backlog and steady quotation activity gives us not only optimism, but confidence about our prospects for the new fiscal year.”

The Board of Directors, at their meeting on December 14, 2004, declared a quarterly dividend of $.0775 per share payable on March 8, 2005 to shareholders of record at the close of business on February 25, 2005. This represents a 6.9% increase over the corresponding dividend paid during the same period last year and the thirtieth consecutive year that Met-Pro Corporation has paid either a cash or stock dividend.

“We are pleased that the Company’s strong balance sheet and our continually growing cash position provide the Company with the ability for future investments in our business while allowing us to continue to reward our shareholders,” added De Hont.

About Met-Pro

Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, manufactures and sells product recovery/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, provides products to residential, commercial, industrial and municipal markets that include, but are not limited to, pharmaceuticals, chemicals, petrochemicals, water and aquariums. For more information, please visit www.met-pro.com.


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Met-Pro Corporation /Page 2


 
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 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.

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 on Form 10-K for the fiscal year ended January 31, 2004 filed with the Securities and Exchange Commission. To obtain a 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 at www.met-pro.com.



Met-Pro Corporation
Condensed Consolidated Balance Sheet
(unaudited)

 
January 31,
 
     2005
   
    2004
Assets
 
      
     Current assets
$50,270,495
  
$48,173,429
     Property, plant and equipment, net 
11,287,253
  
11,514,199
     Costs in excess of net assets of business acquired, net
20,798,913
  
20,798,913
     Other assets
567,405
  
649,016
         Total assets
$82,924,066
  
$81,135,557
       
Liabilities and shareholders’ equity
      
     Current liabilities
$13,867,892
  
$14,229,463
     Long-term debt
4,039,068
  
5,447,869
     Other liabilities
1,851,915
  
1,187,491
         Total liabilities
19,758,875
  
20,864,823
       
Shareholders’ equity
63,165,191
  
60,270,734
         Total liabilities and shareholders’ equity
$82,924,066
  
$81,135,557


 
 
 
Continued Page 3
Met-Pro Corporation /Page 3
 
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)

 
Three Months Ended
    
Twelve Months Ended
    
 
January 31,
    
January 31,
    
 
2005
  
2004
    
2005
  
2004
    
Net sales
$18,725,459
  
$19,618,907
    
$72,116,289
  
$75,058,929
    
Cost of goods sold
12,855,014
  
12,799,310
    
49,441,456
  
48,406,090
    
Gross profit
5,870,445
  
6,819,597
    
22,674,833
  
26,652,839
    
                     
Operating expenses
                    
     Selling
1,778,330
  
1,759,119
    
7,537,508
  
7,662,594
    
     General and administrative
1,898,398
  
1,786,057
  
(a)
7,624,276
  
7,823,007
  
(a)
Income from operations
2,193,717
  
3,274,421
    
7,513,049
  
11,167,238
    
                     
Interest expense
(98,247
)
(104,836
)
  
(371,345
)
(441,704
)
  
Other income, net 
60,166
  
29,630
    
288,558
  
182,736
    
Unusual charge - patent litigation
(18,750
)
(512,968
)
(a)
(135,292
)
(1,292,242
)
(a)
Income before taxes
2,136,886
  
2,686,247
    
7,294,970
  
9,616,028
    
                     
Provision for taxes
726,544
  
913,324
    
2,480,291
  
3,269,449
    
                     
Net income
$1,410,342
  
$1,772,923
    
$4,814,679
  
$6,346,579
    
                     
Basic earnings per share
$.17
  
$.21
    
$.58
  
$.76
    
Diluted earnings per share 
$.17
  
$.21
    
$.57
  
$.76
    
                     
Average common shares outstanding: 
                    
     Basic shares
8,358,603
  
8,295,499
    
8,359,382
  
8,297,668
    
     Diluted shares
8,464,432
  
8,390,032
    
8,463,005
  
8,398,256
    
Adjusted for four-for-three stock split.
                    

(a)  
Reclassified legal expenses related to patent litigation from general and administrative expense to unusual charge - patent
litigation for the three-month period and fiscal year ended January 31, 2004.
 

Consolidated Business Segment Data
(unaudited)
 
 
 Years Ended January 31,
 
      2005
  
      2004
Net sales
 
    
     Product recovery/pollution control equipment   
$42,861,110
  
$50,746,995
     Fluid handling equipment     
29,255,179
  
24,311,934
         
$72,116,289
  
$75,058,929
 
 
    
Income from operations
      
     Product recovery/pollution control equipment   
$3,761,248
  
$7,977,169
     Fluid handling equipment     
3,751,801
  
3,190,069
         
$7,513,049
  
$11,167,238
 
 
    
Identifiable assets at January 31
      
     Product recovery/pollution control equipment   
$41,554,730
  
$44,613,967
     Fluid handling equipment     
19,784,083
  
19,313,159
      
61,338,813
  
63,927,126
     Corporate      
21,585,253
  
17,208,431
         
$82,924,066
  
$81,135,557


Continued Page 4
Met-Pro Corporation /Page 4
 
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)

 
    Years ended January 31,
  
 
2005
  
 2004
  
   2003
  
Increase (Decrease) in Cash and Cash Equivalents
 
Cash flows from operating activities
            
     Net income    
$4,814,679
  
$6,346,579
  
$5,888,379
  
     Adjustments to reconcile net income to net
            
             cash provided by operating activities:
            
         Depreciation and amortization
1,491,894
  
1,571,482
  
1,559,357
  
         Deferred income taxes   
511,225
  
471,652
  
379,874
  
         (Gain) loss on sales of property and equipment, net
(6,358
)
24,906
  
(5,247
)
         Allowance for doubtful accounts
4,823
  
(55,077
)
34,188
  
         (Increase) decrease in operating assets, net of acquisition: 
            
                  Accounts receivable 
3,080,432
  
(4,156,402
)
(1,420,024
)
                  Inventories       
(1,008,533
)
766,704
  
591,932
  
                  Prepaid expenses, deposits and other current assets  
(31,363
)
(214,988
)
(52,207
)
                  Other assets      
48,833
  
(336,490
)
(8,408
)
         Increase (decrease) in operating liabilities, net of acquisition: 
            
                  Accounts payable and accrued expenses   
(1,176,126
)
3,352,279
  
(406,094
)
                  Customers’ advances     
813,818
  
460,009
  
(732,761
)
                  Other non-current liabilities 
2,197
  
2,197
  
2,197
  
           Net cash provided by operating activities
8,545,521
  
8,232,851
  
5,831,186
  
             
             
Cash flows from investing activities
            
     Proceeds from sales of property and equipment
18,965
  
-
  
19,347
  
     Acquisitions of property and equipment   
(1,193,767
)
(952,812
)
(752,125
)
     Payment for purchase of acquisition 
-
  
-
  
(465,673
)
           Net cash (used in) investing activities 
(1,174,802
)
(952,812
)
(1,198,451
)
             
             
Cash flows from financing activities
            
     Proceeds from new borrowing
-
  
-
  
16,373
  
     Reduction of debt      
(1,233,866
)
(1,536,927
)
(1,235,974
)
     Exercise of stock options     
698,685
  
884,339
  
353,229
  
     Payment of dividends     
(2,464,033
)
(2,280,833
)
(2,029,579
)
     Purchase of treasury shares    
(538,499
)
(893,570
)
(289,218
)
     Cash in lieu of fractional shares    
-
  
(1,421
)
-
  
           Net cash (used in) financing activities
(3,537,713
)
(3,828,412
)
(3,185,169
)
Effect of exchange rate changes on cash    
60,217
  
115,259
  
149,541
  
             
Net increase in cash and cash equivalents   
3,893,223
  
3,566,886
  
1,597,107
  
             
Cash and cash equivalents at beginning of year   
16,996,253
  
13,429,367
  
11,832,260
  
Cash and cash equivalents at end of year 
$20,889,476
  
$16,996,253
  
$13,429,367
  
 

 
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