EX-99 2 mprpr20060523.htm PRESS RELEASE press release

 date:
May 23, 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 First Quarter Ended 4/30/2006
 
Harleysville, PA, May 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 first quarter ended April 30, 2006.

Sales for the first quarter ended April 30, 2006 were $19.8 million, which was 10% above last year’s first quarter sales of $17.9 million.
 
Net income for the first quarter ended April 30, 2006 totaled $1.2 million compared with $1.3 million for the same period last year. The decline in net income was primarily due to $0.3 million of non-recurring and non-capitalized expenses resulting from the relocation of Met-Pro’s Sethco and Mefiag Divisions, and the expansion of the Company’s Netherlands and Telford, Pennsylvania facilities. Excluding these non-recurring relocation and expansion charges, Met-Pro’s pro forma net income was $1.5 million, an increase of 10% over the first quarter ending April 30, 2005.
 
Additionally, as required by a new accounting standard, a non-cash charge for stock options was expensed for the first time this quarter, resulting in $0.1 million of additional expenses without a comparable charge in the same quarter in 2005.
 
Basic and diluted earnings per share were $0.11 compared with the $0.12 earned during last year’s first quarter. Excluding non-recurring charges, Met-Pro’s pro forma basic and diluted earnings per share were $0.13, an increase of 8% over last year’s first quarter.

The Company’s backlog of orders is a record high at $21.5 million compared with $18.3 million for the first quarter ended April 30, 2005, an increase of 18%. Substantially all of the backlog that existed as of April 30, 2006 is expected to be shipped during the current fiscal year.

Met-Pro’s bookings of new orders for the first quarter, which were the second highest of any quarter in the Company’s history, totaling $23.8 million, decreased 4% when compared with $24.7 million for the same period last year, which was the highest quarter in the Company’s history.
 
“We are pleased with the results for the first quarter as we build for the future,” said De Hont. “Our quotation activity remains high and we continue to achieve solid bookings. The non-recurring relocation and expansion expenses incurred during the first quarter were an investment for a long-term gain in efficiency. Excluding these non-recurring expenses, earnings grew nicely over the comparable quarter last year. The significant orders in the first quarter, combined with steady quotation activity, give us continued optimism about our future prospects.”

On March 9, 2006, the Company paid a quarterly dividend of $0.0625 per share to shareholders of record at the close of business on February 24, 2006. In addition, the Board of Directors, at their meeting on April 5, 2006, declared a quarterly dividend of $0.0625 per share payable June 7, 2006 to shareholders of record at the close of business on May 26, 2006. This 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 the Company has paid a cash or stock dividend.
 
Continued Page 2
Met-Pro Corporation/Page 2
 
This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included at the end of this press release is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles as well as certain Regulation G disclosures.
 
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)

   
  April 30,
  2006
  
January 31, 2006      
  
 Assets
          
 Current assets
  
$55,473,036
  
$54,004,947
  
 Property, plant and equipment, net
  
15,803,718
  
13,838,221
  
 Costs in excess of net assets of businesses acquired, net
  
20,798,913
  
20,798,913
  
 Other assets
  
1,015,440
  
1,020,844
  
  Total assets
  
$93,091,107
  
$89,662,925
  
           
 Liabilities and shareholders’ equity
          
 Current liabilities
  
$16,623,909
  
$17,142,747
  
 Long-term debt
  
5,723,812
  
2,723,586
  
 Other liabilities
  
2,301,464
  
2,258,354
  
  Total liabilities
  
24,649,185
  
22,124,687
  
           
 Shareholders’ equity
  
68,441,922
  
67,538,238
  
  Total liabilities and shareholders’ equity
 
$93,091,107
  
$89,662,925
  
 

Continued Page 3
Met-Pro Corporation Page 3
 
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
 
 
Three Months Ended
  
 
April 30, 
  
 Net sales
$19,779,041
  
$17,927,612
  
 Cost of goods sold
13,923,682
  
11,973,337
  
 Gross profit
5,855,359
  
5,954,275
  
         
 Operating expenses
        
 Selling
1,896,179
  
1,954,263
  
 General and administrative
2,362,923
  
2,093,458
  
 Income from operations
1,596,257
  
1,906,554
  
         
 Interest expense
(59,805
)
(66,052
)
 Other income, net 
239,208
  
126,989
  
 Income before taxes
1,775,660
  
1,967,491
  
         
 Provision for taxes
568,212
  
649,273
  
         
 Net income
$1,207,448
  
$1,318,218
  
         
 Basic earnings per share (1)
$.11
  
$.12
  
 Diluted earnings per share (1)
$.11
  
$.12
  
         
 Average common shares outstanding:
        
 Basic shares (1) 
11,199,599
  
11,175,641
  
 Diluted shares (1)
11,439,813
  
11,286,592
  
 
 (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)

 
Three Months Ended April 30,
   
2006      
 
2005      
 
 Net sales
          
     Product recovery/pollution control equipment (2)
  
$10,659,665
  
$8,824,534
  
     Fluid handling equipment (2)
  
9,119,376
  
9,103,078
  
   
$19,779,041
  
$17,927,612
  
           
 Income from operations
          
     Product recovery/pollution control equipment (2)
  
$722,097
  
$722,328
  
     Fluid handling equipment (2)
  
874,160
  
1,184,226
  
   
$1,596,257
  
$1,906,554
  
     
 
April 30, 2006         
 January 31, 2006
 Identifiable assets
          
     Product recovery/pollution control equipment (2)
  
$39,872,106
  
$40,526,378
  
     Fluid handling equipment (2)
  
29,017,825
  
28,308,734
  
   
68,889,931
  
68,835,112
  
     Corporate
  
24,201,176
  
20,827,813
  
   
$93,091,107
  
$89,662,925
  
 
 (2)   Effective February 1, 2006, Sethco Division was transferred from the Product Recovery/Pollution Control Equipment Segment to the Fluid Handling Equipment Segment. The business segment information above for the three month period ended April 30, 2005 and the period ended January 31, 2006 was restated to reflect this change.
 
Continued Page 4
Met-Pro Corporation Page 4
 
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
 
   
   Three Months Ended April 30,
 
 
2006      
 
2005     
  
 Increase (Decrease) in Cash and Cash Equivalents
           
 Cash flows from operating activities
          
 Net income
  
$1,207,448
  
$1,318,218
  
 Adjustments to reconcile net income to net
          
cash provided by (used in) operating activities:
          
Depreciation and amortization
  
370,964
  
374,519
  
Deferred income taxes
  
(553
)
(589
)
(Gain) loss on sale of property and equipment, net
  
(4,410
)
12,198
  
Stock-based compensation
  
81,800
  
-
  
Allowance for doubtful accounts
  
(79,003
)
23,066
  
(Increase) decrease in operating assets: 
          
  Accounts receivable
  
1,740,117
  
206,313
  
  Inventories
  
(1,147,983
)
(2,402,889
)
  Prepaid expenses, deposits and other current assets
  
86,777
  
57,228
  
  Other assets
  
(2,250
)
(1,950
)
Increase (decrease) in operating liabilities:
          
  Accounts payable and accrued expenses
  
(1,072,742
)
(264,409
)
  Customers’ advances
 
262,518
  
623,810
  
  Other non-current liabilities
  
549
  
549
  
           
 Net cash provided by (used in) operating activities
  
1,443,232
  
(53,936
)
           
 Cash flows from investing activities
          
 Proceeds from sale of property and equipment
  
4,410
  
12,330
  
 Acquisitions of property and equipment
  
(2,227,748
)
(261,596
)
           
 Net cash (used in) investing activities
  
(2,223,338
)
(249,266
)
           
 Cash flows from financing activities
          
 Proceeds from new borrowing
  
3,602,921
  
-
  
 Reduction of debt
  
(330,508
)
(300,910
)
 Exercise of stock options
  
55,232
  
184,146
  
 Payment of dividends
  
(699,820
)
(648,524
)
           
 Net cash provided by (used in) financing activities
  
2,627,825
  
(765,288
)
 Effect of exchange rate changes on cash
  
29,778
  
(13,122
)
           
 Net increase (decrease) in cash and cash equivalents
  
1,877,497
 
(1,081,612
)
           
 Cash and cash equivalents at February 1
  
17,683,305
  
20,889,476
  
           
 Cash and cash equivalents at April 30
  
$19,560,802
  
$19,807,864
  

 
Continued Page 5
Met-Pro Corporation Page 5
 

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the United States ("GAAP") follows. Although Met-Pro Corporation believes that these non-GAAP financial measures provide useful information to investors about its financial condition and results of operations, this information should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Management's statements regarding the reasons why it believes the presentation of the non-GAAP financial information in this press release provides useful information to its investors, and any other material purposes for which management uses this non-GAAP financial information, are set forth in Met-Pro’s Current Report on Form 8-K to which this press release is attached as an exhibit.

The following table reconciles net income, and basic and diluted earnings per share, excluding non-recurring and non-capitalized expenses resulting from the relocation of the Company’s Sethco and Mefiag Divisions, and the expansion the Company's Netherlands and Telford, Pennsylvania facilities, as well as net income, and basic and diluted earnings per share calculated in accordance with generally accepted accounting principles for the first quarter ended April 30, 2006 and 2005:


Met-Pro Corporation
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
(unaudited)

 
 
Three Months Ended
 
April 30,
 
2006
  
2005
 Income before tax as reported
$1,775,660
  
$1,967,491
 Add: Non-recurring charges
357,267
  
-
 Adjusted income before tax
$2,132,927
  
$1,967,491
       
 Net income as reported
$1,207,448
  
$1,318,218
 Add: Non-recurring charges
242,942
  
-
 Adjusted net income
$1,450,390
  
$1,318,218
       
 Basic earnings per share as reported
$.11
  
$.12
 Adjusted basic earnings per share
$.13
  
$.12
       
 Diluted earnings per share as reported
$.11
  
$.12
 Adjusted diluted earnings per share
$.13
  
$.12
       
 Average common shares Outstanding:
      
 Basic shares
11,199,599
  
11,175,641
 Diluted shares
11,439,813
 
11,286,592
 Adjusted for four-for-three stock split.

 

###