EX-99 2 mpr3qtex99.htm EXHIBIT 99.1 Exhibit 99
Exhibit 99.1
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 date:
November 22, 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 Third Quarter Ended 10/31/2005 
 
• Net Sales and Bookings at Historical Highs
• Quarterly Net Sales Increase 26% Over Same Period Last Year
• Quarterly Diluted Earnings Per Share Increase 89% Over Same Period Last Year
• Quarterly Bookings Increase 16% Over Same Period Last Year
• Backlog Up 41% Over Same Period Last Year

Harleysville, PA, November 22– Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE: MPR), today announced the Company’s financial results for the third quarter ended October 31, 2005.
 
Sales for the third quarter ended October 31, 2005 were the highest of any third quarter in the Company’s history, totaling $21.9 million compared with $17.4 million for the same quarter last year, an increase of 26%. Sales for the nine months ended October 31, 2005 were the highest of any first three quarters in the Company’s history, totaling $62.5 million compared with $53.4 million for the same period last year, an increase of 17%.
 
Net income for the third quarter ended October 31, 2005 totaled $1.9 million compared with $1.0 million for the same quarter last year, an increase of 92%. For the nine months ended October 31, 2005, net income totaled $5.2 million compared with $3.4 million during the same period last year, an increase of 51%. These increases are due principally 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 $0.08 to $0.17 per share, an increase of 89% over the $0.09 earned during last year’s third quarter. For the nine months ended October 31, 2005, basic earnings per share were $0.46 compared with $0.31 for the same period last year, an increase of 48%. Diluted earnings per share for the nine month period were $0.46 versus $0.30, an increase of 53%.
 
Met-Pro’s bookings of new orders for the third quarter were the highest of any third quarter in the Company’s history, totaling $23.5 million compared with $20.3 million for the same quarter last year, an increase of 16%. For the nine months ended October 31, 2005, bookings were the highest of any first three quarters in the Company’s history, totaling $69.2 million compared with $57.9 million during the same period last year, an increase of 20%.
 
As a result of this increase in bookings, the backlog of orders now totals $16.5 million compared with $11.7 million for the third quarter ended October 31, 2004, an increase of 41%. This is the highest backlog total at the end of a third quarter in the Company’s history and provides a solid base for full year sales.
 
A four-for-three stock split was paid by the Company on November 15, 2005. All references in this release and in the financial statements to per share amounts and shares outstanding give effect to the stock split. In addition, as recently announced, Met-Pro Corporation will pay a quarterly cash dividend on December 8, 2005 to shareholders of record at the close of business on November 25, 2005 that represents a 7.5% increase over the prior quarter's dividend.
 
“We are very pleased with the results for the third quarter and the year to date,” stated De Hont. “Our record high third quarter bookings and strong backlog serve as a solid base for the fourth quarter. In addition, the combination of a strong backlog and steady quotation activity gives us not only continued optimism, but confidence about our prospects for the fourth quarter.”

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, 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)

   
October 31,
  
January 31,
  
   
   2005
  
        2005
  
Assets
          
   Current assets
  
$52,830,128
  
$50,270,495
  
   Property, plant and equipment, net
  
12,141,265
  
11,287,253
  
   Costs in excess of net assets of businesses acquired, net
  
20,798,913
  
20,798,913
  
   Other Assets
  
551,079
  
567,405
  
       Total assets
  
$86,321,385
  
$82,924,066
  
 
  
 
      
Liabilities and shareholders’ equity
  
 
      
   Current liabilities
  
$15,388,645
  
$13,867,892
  
   Long-term debt
  
2,729,854
  
4,039,068
  
   Other liabilities
  
1,889,931
  
1,851,915
  
       Total liabilities
  
20,008,430
  
19,758,875
  
 
  
 
  
 
  
Shareholders’ equity
  
66,312,955
  
63,165,191
  
       Total liabilities and shareholders’ equity
 
$86,321,385
  
$82,924,066
  
 
Continued Page 3
Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
 
 
Three Months Ended  
Nine Months Ended  
 
October 31,  
October 31,   
 
      2005
  
    2004
  
    2005
  
    2004
  
Net sales
$21,918,792
  
$17,406,160
  
$62,492,924
  
$53,390,830
  
Cost of goods sold
15,205,528
  
12,065,367
  
42,762,662
  
36,586,442
  
Gross profit
6,713,264
  
5,340,793
  
19,730,262
  
16,804,388
  
                 
Operating expenses
        
  
      
    Selling
1,972,308
  
1,862,739
  
5,899,709
  
5,759,178
  
    General and administrative
2,256,959
  
1,976,615
  
6,608,923
  
5,725,878
  
Income from operations
2,483,997
  
1,501,439
  
7,221,630
  
5,319,332
  
                 
Interest expense
(60,954
)
(86,156
)
(196,868
)
(273,098
)
Other income, net
162,854
  
69,061
  
448,847
  
111,850
  
Income before taxes
2,585,897
  
1,484,344
  
7,473,609
  
5,158,084
  
                 
Provision for taxes
703,875
  
504,673
  
2,316,820
  
1,753,747
  
                 
Net income
$1,882,022
  
$979,671
  
$5,156,789
  
$3,404,337
  
                 
Basic earnings per share (1)
$.17
  
$.09
  
$.46
  
$.31
  
Diluted earnings per share (1) 
$.17
  
$.09
  
$.46
  
$.30
 
                 
Average common shares outstanding:
                
    Basic shares (1)
11,184,295
  
11,140,839
  
11,185,838
  
11,142,537
  
    Diluted shares (1) 
11,317,027
  
11,293,111
  
11,320,875
  
11,290,240
  
(1)    On October 11, 2005 the Board of Directors declared a four-for-three stock split which was paid on November 15, 2005 to shareholders of record on November 1, 2005. All references in the financial statements to per share amounts and number of shares outstanding give effect to the split.
 
Consolidated Business Segment Data
(unaudited)
 
   
       Nine Months Ended October 31,  
  
   
       2005
  
2004
  
Net sales
          
    Product recovery/pollution control equipment
  
$39,244,030
  
$31,556,277
  
    Fluid handling equipment
  
23,248,894
  
21,834,553
  
   
$62,492,924
  
$53,390,830
  
           
Income from operations
          
    Product recovery/pollution control equipment
  
$3,938,788
  
$2,522,779
  
    Fluid handling equipment
  
3,282,842
  
2,796,553
  
   
$7,221,630
  
$5,319,332
  
           
   
October 31,
  
January 31,
  
   
       2005
  
2005
  
Identifiable assets
          
    Product recovery/pollution control equipment
  
$43,665,377
  
$41,554,730
  
    Fluid handling equipment
  
21,995,856
  
19,784,083
  
   
65,661,233
  
61,338,813
  
    Corporate
  
20,660,152
  
21,585,253
  
   
$86,321,385
  
$82,924,066
  
 
Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
 
 
    Nine Months Ended October 31,  
  
 
  2005
  
   2004
  
Increase (Decrease) in Cash and Cash Equivalents
         
Cash flows from operating activities
        
    Net income
$5,156,789
  
$3,404,337
  
    Adjustments to reconcile net income to net
        
          cash provided by operating activities:
        
       Depreciation and amortization
1,109,925
  
1,105,463
  
       Deferred income taxes
(1,659
)
(2,021
)
       (Gain) loss on sale of property and equipment, net
8,348
  
(1,650
)
       Allowance for doubtful accounts
96,682
  
76,914
  
       (Increase) decrease in operating assets: 
        
             Accounts receivable
(2,172,567
)
1,665,238
  
             Inventories
(2,638,644
)
(1,031,531
)
             Prepaid expenses, deposits and other current assets
18,158
  
79,159
  
             Other assets
(6,744
)
(19,502
)
       Increase (decrease) in operating liabilities:
        
             Accounts payable and accrued expenses
1,560,944
  
(750,110
)
             Customers’ advances
380,037
  
(287,805
)
             Other non-current liabilities
1,648
  
1,648
  
         
           Net cash provided by operating activities
3,512,917
  
4,240,140
  
         
Cash flows from investing activities
        
    Proceeds from sale of property and equipment
31,696
  
1,650
  
    Acquisitions of property and equipment
(2,093,201
)
(734,576
)
 
        
           Net cash (used in) investing activities
(2,061,505
)
(732,926
)
 
        
Cash flows from financing activities
        
    Reduction of debt
(1,500,910
)
(1,227,190
)
    Exercise of stock options
324,281
  
641,872
  
    Payment of dividends
(1,948,755
)
(1,815,651
)
    Purchase of treasury shares
(140,135
)
(481,687
)
         
           Net cash (used in) financing activities
(3,265,519
)
(2,882,656
)
Effect of exchange rate changes on cash
(59,026
)
(33,792
)
         
Net increase (decrease) in cash and cash equivalents
(1,873,133
)
590,766
  
         
Cash and cash equivalents at February 1
20,889,476
  
16,996,253
  
         
Cash and cash equivalents at October 31
$19,016,343
  
$17,587,019
  
 


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