EX-99 2 mprpr.htm PRESS RELEASE 20050823 Press Release 20050823
 
 date:
August 23, 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 Second Quarter Ended 7/31/2005

• Quarterly Net Sales Increase 11% Over Last Year
• Quarterly Diluted Earnings Per Share Increase 21% Over Last Year
• Quarterly Bookings Increase 21% Over Last Year
• Backlog Up 83% Over Same Period Last Year

Harleysville, PA, August 23 - Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE:MPR), today announced the Company’s financial results for the second quarter ended July 31, 2005.

Sales for the second quarter ended July 31, 2005 were the highest of any second quarter in the Company’s history, totaling $22.6 million compared to $20.4 million for the same quarter last year, an increase of 11%. First half sales totaled $40.6 million compared to $36.0 million for the same period last year, an increase of 13%.
 
Net income for the second quarter ended July 31, 2005 was the highest of any second quarter in the Company’s history, totaling $2.0 million compared to $1.6 million for the same quarter last year, an increase of 21%. For the first half, net income totaled $3.3 million compared to $2.4 million during last year’s first half, an increase of 35%. This increase was due to higher sales in both the Product Recovery/Pollution Control Equipment and Fluid Handling Equipment operating segments.

Basic and diluted earnings per share were up $0.04 to $0.23, an increase of 21% over the $0.19 earned during last year’s second quarter. For the first half, both basic and diluted earnings per share were $0.39 per share compared to $0.29 per share earned during last year’s first half, an increase of 34%.

Met-Pro’s bookings of new orders for the second quarter totaled $21.0 million compared to $17.3 million for the same quarter last year, an increase of 21%. For the first half, bookings were the highest of any first half in the Company’s history, totaling $45.7 million compared to $37.6 million during last year’s first half, an increase of 22%.

As a result of this increase in bookings, the backlog of orders now totals $16.0 million compared to $8.8 million for the second quarter ended July 31, 2004, an increase of 83%. This is the highest backlog total at the end of a second quarter in the Company’s history and provides a solid base for third quarter sales.

In making this announcement De Hont stated that, “we are very pleased with the results for the second quarter. Our dedicated employees worked hard to improve our results and their continued commitment to greater market focus contributed significantly to our ability to achieve record high bookings and backlog for the first half of this fiscal year. The combination of a strong backlog and steady quotation activity gives us continued optimism about our prospects for the third quarter and the full fiscal year."
 
Continued Page 2
Met-Pro Corporation/Page 2
 
On June 8, 2005 the Company paid a quarterly dividend of $0.0775 per share to shareholders of record at the close of business on May 27, 2005. In addition, the Board of Directors, at their meeting on June 8, 2005, declared a quarterly dividend of $0.0775 per share payable September 8, 2005 to shareholders of record at the close of business on August 28, 2005. This represents a 7% increase over the corresponding dividends paid during the same periods last year, and is the thirty-first 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 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, without limitations, expectations about the Company’s prospects, such as anticipated sales or earnings results, the amount of quotation activity and bookings level, the timing of shipments, the effect of competition, regulation, accounting policies, and other third party influences upon the Company’s sales and earnings results, expectations as to the effect or extent of dividend payments, capital spending, financings and acquisitions, and the impact of pending litigation or the availability of insurance coverage. 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.

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)

 
July 31,
  
January 31,
  
 
2005
  
2005
  
Assets
        
     Current assets
$52,097,817
  
$50,270,495
  
     Property, plant and equipment, net
10,922,814
  
11,287,253
  
     Costs in excess of net assets of businesses acquired, net
20,798,913
  
20,798,913
  
     Other assets
569,382
  
567,405
  
           Total assets
$84,388,926
  
$82,924,066
  
         
Liabilities and shareholders’ equity
        
     Current liabilities
$14,356,634
  
$13,867,892
  
     Long-term debt
3,062,232
  
4,039,068
  
     Other liabilities
1,878,582
  
1,851,915
  
           Total liabilities 
19,297,448
  
19,758,875
  
         
Shareholders’ equity
65,091,478
  
63,165,191
  
           Total liabilities and shareholders’ equity 
$84,388,926
  
$82,924,066
  
 
 
Continued Page 3
Met-Pro Corporation/Page 3
 
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
  
 
Three Months Ended
  
Six Months Ended
  
 
July 31,
  
July 31,
  
 
2005
  
2004
  
2005
  
2004
  
                 
Net sales 
$22,646,520
  
$20,350,024
  
$40,574,132
  
$35,984,670
  
Cost of goods sold
15,583,797
  
13,948,861
  
27,557,134
  
24,521,075
  
Gross profit
7,062,723
  
6,401,163
  
13,016,998
  
11,463,595
  
                 
Operating expenses
                
    Selling
1,973,138
  
1,964,071
  
3,927,401
  
3,896,439
  
    General and administrative
2,258,506
  
1,946,955
  
4,351,964
  
3,749,263
  
Income from operations
2,831,079
  
2,490,137
  
4,737,633
  
3,817,893
  
                 
Interest expense
(69,862
)
(90,095
 ) 
(135,914
)
(186,942
)
Other income, net
159,004
  
39,985
  
285,993
  
42,789
  
Income before taxes
2,920,221
  
2,440,027
  
4,887,712
  
3,673,740
  
                 
Provision for taxes
963,672
  
829,610
  
1,612,945
  
1,249,074
  
Net income
$1,956,549
  
$1,610,417
  
$3,274,767
  
$2,424,666
  
                 
Basic earnings per share
$.23
  
$.19
  
$.39
  
$.29
  
Diluted earnings per share
$.23
  
$.19
  
$.39
  
$.29
  
                 
Average common shares outstanding:
                
    Basic shares
8,384,354
  
8,348,996
  
8,385,138
  
8,352,252
  
    Diluted shares
8,476,717
  
8,476,042
  
8,480,840
  
8,474,359
  
 
 
Consolidated Business Segment Data
(unaudited)
 
Six Months Ended July 31,
  
 
2005
  
2004
  
Net sales
        
    Product recovery/pollution control equipment
$24,802,000
  
$21,655,882
  
    Fluid handling equipment
15,772,132
  
14,328,788
  
 
$40,574,132
  
$35,984,670
  
         
Income from operations
        
    Product recovery/pollution control equipment
$2,396,036
  
$1,951,500
  
    Fluid handling equipment
2,341,597
  
1,866,393
  
 
$4,737,633
  
$3,817,893
  
         
 
July 31,
  
January 31,
  
 
2005
  
2005
  
Identifiable assets
        
    Product recovery/pollution control equipment
$44,135,698
  
$41,554,730
  
    Fluid handling equipment
20,509,167
  
19,784,083
  
 
64,644,865
  
61,338,813
  
    Corporate
19,744,061
  
21,585,253
  
 
$84,388,926
  
$82,924,066
  
 
Continued Page 4
Met-Pro Corporation/Page 4

Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
 
 
Six Months Ended July 31,
  
 
2005
  
2004
  
Increase (Decrease) in Cash and Cash Equivalents
  
         
Cash flows from operating activities
        
    Net income
$3,274,767
  
$2,424,666
  
    Adjustments to reconcile net income to net
        
            cash provided by operating activities:
        
        Depreciation and amortization
742,600
  
730,184
  
        Deferred income taxes
(1,177
)
(1,415
)
        Loss on sale of property and equipment, net
8,591
  
-
  
        Allowance for doubtful accounts
55,466
  
43,052
  
        (Increase) decrease in operating assets:
        
                Accounts receivable
(2,305,022
)
865,681
  
                Inventories
(2,530,526
)
(691,701
)
                Prepaid expenses, deposits and other current assets
303,086
  
343,568
  
                Other assets
(17,394
)
(4,734
)
        Increase (decrease) in operating liabilities:
        
                Accounts payable and accrued expenses
1,267,070
  
(1,175,236
)
                Customers’ advances
(329,212
)
(355,780
)
                Other non-current liabilities
1,098
  
(6,788
)
            Net cash provided by operating activities
469,347
  
2,171,497
  
         
         
Cash flows from investing activities
        
    Proceeds from sale of property and equipment
30,907
  
-
  
    Acquisitions of property and equipment
(488,380
)
(504,055
)
            Net cash (used in) investing activities
(457,473
)
(504,055
)
         
         
Cash flows from financing activities
        
    Reduction of debt
(1,200,910
)
(918,463
)
    Exercise of stock options
184,146
  
641,872
  
    Payment of dividends
(1,298,639
)
(1,209,101
)
    Purchase of treasury shares
-
  
(481,687
)
            Net cash (used in) financing activities
(2,315,403
)
(1,967,379
)
Effect of exchange rate changes on cash
(22,212
)
(31,435
)
         
Net (decrease) in cash and cash equivalents
(2,325,741
)
(331,372
)
         
Cash and cash equivalents at February 1
20,889,476
  
16,996,253
  
Cash and cash equivalents at July 31
$18,563,735
  
$16,664,881
  

 
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