EX-99 2 mprnr20060228.htm PRESS RELEASE press release

banner
 
 date:
February 28, 2006
 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 1/31/2006
 
• Net Sales and Bookings at Historical Highs
• Year-to-Date Diluted Earnings Per Share Increase 51% Over Last Year
• Backlog Entering New Fiscal Year at Historical High
 
 
Harleysville, PA, February 28 - 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, 2006.
 
Sales for the fourth quarter ended January 31, 2006 were the highest of any fourth quarter in the Company's history, totaling $22.6 million compared with $18.7 million for the same quarter last year, an increase of 21%. Sales for the fiscal year ended January 31, 2006 were the highest of any fiscal year in the Company's history, totaling $85.1 million compared with $72.1 million for the same period last year, an increase of 18%.
 
Net income for the fourth quarter ended January 31, 2006 totaled $2.2 million, compared with $1.4 million for the same quarter of last year, an increase of 53%. Net income for the fiscal year ended January 31, 2006 totaled $7.3 million, a 52% increase over the $4.8 million reported in the prior year. The increase in net income was due primarily to higher net sales in both operating segments, and to a lesser extent, a reduction in the effective tax rate relating to research and development tax credits, of which the majority is related to the three year period ended January 31, 2005.
 
Basic and diluted earnings per share for the fourth quarter ended January 31, 2006 were $0.19 compared with $0.13 and $0.12, respectively, for the same period last year, an increase of 46% and 58%, respectively. Basic and diluted earnings per share for the fiscal year ended January 31, 2006 were $0.65 compared with $0.43 for the prior fiscal year, an increase of 51%.
 
Met-Pro's bookings of new orders for the fourth quarter ended January 31, 2006 were the highest of any fourth quarter in the Company's history, totaling $23.4 million, compared with $18.6 million for the same quarter last year, an increase of 25%. Bookings of new orders for the fiscal year ended January 31, 2006 were the highest of any fiscal year in the Company's history, totaling $92.5 million, compared with $76.5 million for the same period last year, an increase of 21%.
 
As a result of this increase in bookings, the booked backlog now totals $17.7 million compared with $11.7 million for the period ended January 31, 2005. This is the highest backlog total entering a new fiscal year in the Company's history.
 
“We are very pleased with our results for the fourth quarter and the full fiscal year,” stated De Hont. “Our record high sales and bookings are a testimony of our great employees’ ability to go head-to-head with our respected competition and prevail. The $17.7 million of booked backlog serves as a solid base for first quarter sales. The combination of a strong backlog and continued steady quotation activity make us optimistic about our prospects for the new fiscal year.”
 
The Board of Directors, at their meeting on December 15, 2005, declared a quarterly dividend of $0.0625 per share payable on March 9, 2006 to shareholders of record at the close of business on February 24, 2006. This dividend represents a 7.5% increase over the same period last year and follows a four-for-three stock split, which was paid on November 15, 2005. This is the thirty-first consecutive year that Met-Pro Corporation has paid either 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. 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)
 

 
January 31,
  
January 31,
  
 
2006      
 
2005      
  
Assets
        
Current assets
$54,004,947
  
$50,270,495
  
Property, plant and equipment, net
13,838,221
  
11,287,253
  
Costs in excess of net assets of businesses acquired, net
20,798,913
  
20,798,913
  
Other assets
1,020,844
  
567,405
  
Total assets
$89,662,925
  
$82,924,066
  
         
Liabilities and shareholders’ equity
        
Current liabilities
$17,142,747
  
$13,867,892
  
Long-term debt
2,723,586
  
4,039,068
  
Other liabilities
2,258,354
  
1,851,915
  
Total liabilities
22,124,687
  
19,758,875
  
         
Shareholders’ equity
67,538,238
  
63,165,191
  
Total liabilities and shareholders’ equity
$89,662,925
  
$82,924,066
  
 
Continued Page 3
Met-Pro Corporation/Page 3
 
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
 
 
Three Months Ended  
January 31,  
Twelve Months Ended   
January 31,   
 
2006      
  
2005      
 
2006      
 
2005      
 
Net sales
$22,623,176
  
$18,725,459
  
$85,116,100
  
$72,116,289
  
Cost of goods sold
15,678,779
  
12,855,014
  
58,441,441
  
49,441,456
  
Gross profit
6,944,397
  
5,870,445
  
26,674,659
  
22,674,833
  
                 
Operating expenses
                
Selling
1,965,124
  
1,778,330
  
7,864,833
  
7,537,508
  
General and administrative
2,525,168
  
1,898,398
  
9,134,091
  
7,624,276
  
Income from operations
2,454,105
  
2,193,717
  
9,675,735
  
7,513,049
  
                 
Interest expense
(72,620
)
(98,247
)
(269,488
)
(371,345
)
Other income, net
167,057
  
41,416
 
615,904
  
153,266
  
Income before taxes
2,548,542
  
2,136,886
  
10,022,151
  
7,294,970
  
                 
Provision for taxes
392,047
  
726,544
  
2,708,867
  
2,480,291
  
                 
Net income
$2,156,495
  
$1,410,342
  
$7,313,284
  
$4,814,679
  
                 
Basic earnings per share (1)
$.19
  
$.13
  
$.65
  
$.43
  
Diluted earnings per share (1) 
$.19
  
$.12
  
$.65
  
$.43
  
                 
Average common shares outstanding:
                
Basic shares (1)
11,187,837
  
11,144,804
  
11,188,657
  
11,145,843
  
Diluted shares (1) 
11,328,833
  
11,285,909
  
11,333,612
  
11,284,007
  
 
(1) On October 10, 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)

 
   Years Ended January 31,
  
 
2006      
 
2005      
 
Net sales
        
Product recovery/pollution control equipment
$53,798,651
  
$42,861,110
  
Fluid handling equipment
31,317,449
  
29,255,179
  
 
$85,116,100
  
$72,116,289
  
         
Income from operations
        
Product recovery/pollution control equipment
$5,451,852
  
$3,761,248
  
Fluid handling equipment
4,223,883
  
3,751,801
  
 
$9,675,735
  
$7,513,049
  
         
Identifiable assets at January 31
        
Product recovery/pollution control equipment
$45,204,688
  
$41,554,730
  
Fluid handling equipment
23,630,424
  
19,784,083
  
 
68,835,112
  
61,338,813
  
Corporate
20,827,813
  
21,585,253
  
 
$89,662,925
  
$82,924,066
  
Continued Page 4
Met-Pro Corporation/Page 4

Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
 
Years Ended January 31,
  
 
2006     
 
2005     
 
2004     
  
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities
            
Net income
$7,313,284
  
$4,814,679
  
$6,346,579
  
Adjustments to reconcile net income to net
            
cash provided by operating activities:
            
Depreciation and amortization
1,486,340
  
1,491,894
  
1,571,482
  
Deferred income taxes
610,593
  
511,225
  
471,652
  
(Gain) loss on sale of property and equipment, net
13,131
  
(6,358
)
24,906
  
Allowance for doubtful accounts
34,002
  
4,823
  
(55,077
)
(Increase) decrease in operating assets: 
            
Accounts receivable
(4,428,817
)
3,080,432
  
(4,156,402
)
Inventories
(2,657,517
)
(1,008,533
)
766,704
  
Prepaid expenses, deposits and other current assets
(141,097
)
(31,363
)
(214,988
)
Other assets
(484,162
)
48,833
  
(336,490
)
Increase (decrease) in operating liabilities:
            
Accounts payable and accrued expenses
2,283,700
  
(1,176,126
)
3,352,279
  
Customers’ advances
409,760
  
813,818
  
460,009
  
Other non-current liabilities
2,197
  
2,197
  
2,197
  
             
Net cash provided by operating activities
4,441,414
  
8,545,521
  
8,232,851
  
             
 
Cash flows from investing activities
            
Proceeds from sale of property and equipment
31,565
  
18,965
  
-
  
Acquisitions of property and equipment
(4,151,253
)
(1,193,767
)
(952,812
)
             
Net cash (used in) investing activities
(4,119,688
)
(1,174,802
)
(952,812
)
             
Cash flows from financing activities
            
Proceeds from new borrowings
793,947
  
-
  
-
  
Reduction of debt
(1,800,910
)
(1,233,866
)
(1,536,927
)
Exercise of stock options
324,281
  
698,685
  
884,339
  
Payment of dividends
(2,648,576
)
(2,464,033
)
(2,280,833
)
Purchase of treasury shares
(140,135
)
(538,499
)
(893,570
)
Payment of cash in lieu of fractional shares
(1,914
)
-
  
(1,421
)
             
Net cash (used in) financing activities
(3,473,307
)
(3,537,713
)
(3,828,412
)
Effect of exchange rate changes on cash
(54,590
)
60,217
  
115,259
  
             
Net increase (decrease) in cash and cash equivalents
(3,206,171
)
3,893,223
  
3,566,886
  
             
Cash and cash equivalents at February 1
20,889,476
  
16,996,253
  
13,429,367
  
             
Cash and cash equivalents at end of year
17,683,305
  
$20,889,476
  
$16,996,253
  
 
 
###