EX-99 2 mprpr20050519.htm NEWS RELEASE news release

date:
May 19, 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 First Quarter Ended 4/30/2005

• Quarterly Net Sales Increase 15% Over Last Year
• Quarterly Diluted Earnings Per Share Increase 60% Over Last Year
• Quarterly Bookings Increase 22% Over Last Year
• Backlog Up 54% Over Last Year
 
 
Harleysville, PA, May 19 - 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, 2005.

Sales for the first quarter ended April 30, 2005 were $17.9 million, which was 15% above last year’s first quarter sales of $15.6 million.

Net income for the first quarter ended April 30, 2005 totaled $1.3 million compared to $0.8 million for the same quarter last year, an increase of 62%. This increase was due to higher sales in both operating segments, combined with higher gross margins in the Company’s Product Recovery/Pollution Control segment.

Basic and diluted earnings per share were up $0.06 to $0.16, an increase of 60% over the $0.10 earned during last year’s first quarter.

Met-Pro’s bookings of new orders for the first quarter were the highest of any quarter in the Company’s history, totaling $24.7 million, compared to $20.3 million for the same period of last year, an increase of 22%.

This increase in bookings resulted in a record high backlog of orders totaling $18.3 million compared to $11.9 million for the first quarter ended April 30, 2004, an increase of 54%.  A fair percentage of this backlog is scheduled to be shipped during the upcoming quarter providing a solid base for second quarter sales.

In making this announcement, De Hont stated that “we are extremely pleased with our record high bookings and backlog for the first quarter. This marks the second straight quarter in which we have had record bookings. Although Met-Pro’s performance has clearly benefited from improved market conditions, we firmly believe that our commitment to greater market focus has contributed even more significantly to our improved results. Our record high backlog, current quotation activity and our employees' commitment to greater market focus give us continued optimism about our prospects for the second quarter and the full fiscal year.”

On March 8, 2005 the Company paid a quarterly dividend of $0.0775 per share to shareholders of record at the close of business on February 25, 2005. In addition, the Board of Directors, at their meeting on April 6, 2005, declared a quarterly dividend of $0.0775 per share payable June 8, 2005 to shareholders of record at the close of business on May 27, 2005. This represents a 7% increase over the corresponding dividends paid during the same periods last year, and is the thirtieth consecutive year the Company has paid a cash or stock dividend.
 

Continued Page 2
Met-Pro Corporation/Page 2

About Met-Pro

Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, manufactures and sells product recovery and pollution control equipment for purification of air and liquids and fluid handling equipment for corrosive, abrasive and high temperature liquids. With ten divisions and six 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.

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, under the 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 Web site at www.met-pro.com.
 

 
Met-Pro Corporation
Condensed Consolidated Balance Sheet
(unaudited)

 
April 30,
  
January 31,
  
 
2005
  
2005
  
Assets
 
      
     Current assets
$51,238,388
  
$50,270,495
  
     Property, plant and equipment, net 
11,141,929
  
11,287,253
  
     Costs in excess of net assets of business acquired, net
20,798,913
  
20,798,913
  
     Other assets
561,619
  
567,405
  
          Total assets
$83,740,849
  
$82,924,066
  
         
Liabilities and shareholders’ equity
        
     Current liabilities
$14,212,041
  
$13,867,892
  
     Long-term debt
3,696,942
  
4,039,068
  
     Other liabilities
1,867,167
  
1,851,915
  
          Total liabilities
19,776,150
  
19,758,875
  
         
Shareholders’ equity
63,964,699
  
63,165,191
  
          Total liabilities and shareholders’ equity
$83,740,849
  
$82,924,066
  



Continued Page 3
Met-Pro Corporation/Page 3

Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)


 
Three Months Ended
  
 
 April 30,
  
 
2005
  
2004
  
Net sales 
$17,927,612
  
$15,634,646
  
Cost of goods sold
11,973,337
  
10,572,214
  
Gross profit
5,954,275
  
5,062,432
  
         
Operating expenses
        
     Selling
1,954,263
  
1,932,368
  
     General and administrative
2,093,458
  
1,802,308
  
Income from operations
1,906,554
  
1,327,756
  
         
Interest expense
(66,052
)
( 96,847
)
Other income, net
126,989
  
80,465
  
Unusual charge-patent litigation
-
  
( 77,661
)
Income before taxes
1,967,491
  
1,233,713
  
         
Provision for taxes
649,273
  
419,464
  
Net income
$1,318,218
  
$814,249
  
         
Basic earnings per share
$.16
  
$. 10
  
Diluted earnings per share
$.16
  
$. 10
  
         
Average common shares outstanding:
        
     Basic shares
8,381,731
  
8,342,386
  
     Diluted shares
8,464,944
  
8,480,996
  


Consolidated Business Segment Data
(unaudited)
 
Three Months Ended
 
April 30,
 
2005
  
2004
  
Net sales
        
     Product recovery/pollution control equipment
$10,244,280
  
$9,251,532
  
     Fluid handling equipment
7,683,332
  
6,383,114
  
 
$17,927,612
  
$15,634,646
  
         
Income from operations
        
     Product recovery/pollution control equipment
$929,992
  
$587,088
  
     Fluid handling equipment
976,562
  
740,668
  
 
$1,906,554
  
$1,327,756
  
         
         
 
April 30,
  
January 31,
  
 
2005
  
2005
  
Identifiable assets
        
     Product recovery/pollution control equipment
$42,609,496
  
$41,554,730
  
     Fluid handling equipment
20,216,194
  
19,784,083
  
 
62,825,690
  
61,338,813
  
     Corporate
20,915,159
  
21,585,253
  
 
$83,740,849
  
$82,924,066
  
 

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

 
Three Months Ended
 
  April 30,  
 
2005
  
2004
  
Increase (Decrease) in Cash and Cash Equivalents
         
Cash flows from operating activities
        
     Net income
$1,318,218
  
$814,249
  
     Adjustments to reconcile net income to net
       
               cash provided by (used in) operating activities:
        
          Depreciation and amortization
374,519
  
358,256
  
          Deferred income taxes
(589
)
(606
)
          Loss on sales of property and equipment, net
12,198
  
-
  
     Allowance for doubtful accounts
23,066
  
(19,736
)
          (Increase) decrease in operating assets:
        
               Accounts receivable
206,313
  
4,253,669
  
               Inventories
(2,402,889
)
(1,384,106
)
               Prepaid expenses, deposits and other current assets
57,228
  
(39,497
)
               Other assets
(1,950
)
(1,920
)
          Increase (decrease) in operating liabilities:
        
               Accounts payable and accrued expenses
(264,409
)
(1,121,513
)
               Customers’ advances
623,810
  
55,869
  
               Other non-current liabilities
549
  
549
  
          Net cash provided by (used in) operating activities
(53,936
)
2,915,214
  
         
Cash flows from investing activities
        
     Proceeds from sales of property and equipment
12,330
  
-
  
     Acquisitions of property and equipment
(261,596
)
(284,632
)
          Net cash (used in) investing activities
(249,266
)
(284,632
)
         
Cash flows from financing activities
        
     Reduction of debt
(300,910
)
(309,232
)
     Exercise of stock options
184,146
  
524,189
  
     Payment of dividends
(648,524
)
(603,441
)
     Purchase of treasury shares
-
  
(481,687
)
          Net cash (used in) financing activities
(765,288
)
(870,171
)
Effect of exchange rate changes on cash
(13,122
)
(25,277
)
         
Net increase (decrease) in cash and cash equivalents
(1,081,612
)
1,735,134
  
         
Cash and cash equivalents at February 1
20,889,476
  
16,996,253
  
Cash and cash equivalents at April 30
$19,807,864
  
$18,731,387
  





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