8-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):   May 22, 2007

MET-PRO CORPORATION
(Exact name of registrant as specified in its charter)

Pennsylvania	001-07763	23-1683282
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation or organization)		Identification No.)

160 Cassell Road, P.O. Box 144
Harleysville, Pennsylvania	19438
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 723-6751

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On May 22, 2007, Met-Pro Corporation ("Met-Pro," the "Registrant" or the "Company") reported its results of operations for the first quarter ended April 30, 2007.  A copy of the press release issued by the Company is furnished herewith as Exhibit 99.1.

In addition, the Company held a teleconference call on May 22, 2007 during which members of management discussed the Company's financial performance for the first quarter ended April 30, 2007 and other matters relating to its business.  A copy of the teleconference transcript is furnished herewith as Exhibit 99.2.

Item 7.01.  Regulation FD Disclosure.

On May 22, 2007, Met-Pro Corporation issued a press release announcing its financial results for the first quarter ended April 30, 2007. A copy of this press release is attached hereto as Exhibit 99.1.

The press release attached hereto as Exhibit 99.1 contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission (the “SEC”). Met-Pro believes that these non-GAAP financial measures provide information that is useful to its investors regarding its financial condition and results of operations.

The press release contains adjusted income before tax, net income, and basic and diluted earnings per share for the first quarter ended April 30, 2007 which excludes the gain on the sale of property previously associated with the Company's business unit in Hauppauge, New York. The adjusted income before tax, net income and earnings per share numbers are not a measure of financial performance under GAAP and should not be considered as a substitute for income before tax, net income, income from operations, net cash provided by operating activities or any other operating or liquidity measure prepared in accordance with GAAP.

Met-Pro’s management believes that adjusted income before tax, net income, and basic and diluted earnings per share provide additional information useful to assessing, comparing and evaluating the operating performance of its business, insofar as the adjustment pertains to the gain on the sale of the New York property.

Limitation on Incorporation by Reference

In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth in this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01.  Financial Statements and Exhibits.

A copy of the press release dated May 22, 2007, reporting the results of operations for the first quarter ended April 30, 2007, is furnished herewith as Exhibit 99.1.

In addition, a copy of the transcript from the Company's teleconference held on May 22, 2007, to discuss its results of operations for the first quarter ended April 30, 2007, is furnished herewith as Exhibit 99.2.

  

The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

      Date:  May 23, 2007

MET-PRO CORPORATION

By: /s/ Raymond J. De Hont

Raymond J. De Hont,

President and Chief Executive Officer

Exhibit Index

Exhibit	Description
99.1	Press release issued by Met-Pro Corporation to report its results of operations for the three months ended April 30, 2007
99.2	Transcript of conference call held May 22,  2007 to discuss results of operations for the three months ended April 30, 2007

EX-99.1

Date:	May 22, 2007
For Release:	Immediate
Contact:	Investor Contact:
	Gary J. Morgan, Senior Vice President of Finance, CFO
	215-723-6751, gmorgan@met-pro.com

Met-Pro Corporation Announces Financial Results

for the First Quarter Ended 4/30/2007

• Core Earnings Up – Profitable Property Sale Reached in First Quarter

Harleysville, PA, May 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 first quarter ended April 30, 2007.

Sales for the first quarter ended April 30, 2007 were $21.9 million, which was 11% above last year’s first quarter sales of $19.8 million.

Net income for the first quarter ended April 30, 2007 totaled $3.9 million compared with $1.2 million for the same period last year. Excluding the net gain of approximately $2.2 million on the sale of property previously associated with the Company’s Sethco business unit in Hauppauge, New York, Met-Pro’s adjusted net income was $1.7 million in the first quarter ended April 30, 2007, an increase of 38% over the first quarter of last year. 

Basic and diluted earnings per share for the first quarter ended April 30, 2007 were $0.35 and $0.34, respectively, compared with $0.11 earned during last year’s first quarter. Excluding the net gain on the sale of property, Met-Pro’s adjusted basic and diluted earnings per share were each $0.15 compared with $0.11 for the first quarter of last year, an increase of 36%.

The Company’s backlog of orders as of April 30,2007 totaled a record high $30.0 million compared with $21.5 million as of April 30, 2006, an increase of 40%. Substantially the entire backlog that existed as of April 30, 2007 is expected to be shipped during the current fiscal year.

“We are pleased with the results for the first quarter,” said De Hont. “Our quotation activity remains high and we continue to achieve solid bookings. The record high $30.0 million backlog at the end of the first quarter serves as a solid base for future sales growth. The combination of a strong quality backlog and continued steady quotation activity gives us confidence regarding our prospects for the second quarter and the full fiscal year.”

The Board of Directors, at their meeting on April 4, 2007, declared a quarterly dividend of $0.0675 per share payable June 12, 2007 to shareholders of record at the close of business on May 29, 2007. This represents an 8.0% increase over the same period last year. This is the thirty-second consecutive year the Company has paid a cash or stock dividend.

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, was recently recognized as one of America’s “200 Best Small Companies” by Forbes magazine. Through its divisions and subsidiaries, in four states, Canada, Europe and The People's Republic of China, a wide range of products and services are offered for industrial, commercial, and residential markets. These include Product Recovery and Pollution Control Technologies for purification of air and liquids; Fluid Handling Technologies for corrosive, abrasive and high temperature liquids; and Filtration and Purification Technologies including proprietary water treatment chemicals and filter products. For more information, please visit www.met-pro.com.

Continued Page 2

Met-Pro Corporation/Page 2

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

Consolidated Statement of Operations

(unaudited)

	Three Months Ended
	April 30,
	2007		2006
Net sales	$21,916,609		$19,779,041
Cost of goods sold	14,997,082		13,923,682
Gross profit	6,919,527		5,855,359
Operating expenses (income)
Selling	2,069,877		1,896,179
General and administrative	2,483,853		2,358,513
Gain on sale of building	(3,513,940	)	–
	1,039,790		4,254,692
Income from operations	5,879,737		1,600,667
Interest expense	(80,152	)	(59,805	)
Other income, net	217,306		234,798
Income before taxes	6,016,891		1,775,660
Provision for taxes	2,138,648		568,212
Net income	$3,878,243		$1,207,448
Basic earnings per share	$.35		$.11
Diluted earnings per share	$.34		$.11
Average common shares outstanding:
Basic shares	11,220,577		11,199,599
Diluted shares	11,468,767		11,439,813

Continued Page 3

Met-Pro Corporation/Page 3

Met-Pro Corporation

Consolidated Balance Sheet

(unaudited)

	April 30,		January 31,
	2007		2007
Assets
Current assets
Cash and cash equivalents	$24,354,204		$17,322,194
Marketable securities	27,897		24,090
Accounts receivable, net of allowance for doubtful
accounts of approximately $156,000 and
$133,000, respectively	20,197,550		20,837,589
Inventories	20,613,149		19,296,279
Prepaid expenses, deposits and other current assets	1,717,692		1,748,130
Total current assets	66,910,492		59,228,282
Property, plant and equipment, net	16,114,947		16,832,988
Costs in excess of net assets of business acquired, net	20,798,913		20,798,913
Other assets	300,022		306,403
Total assets	$104,124,374		$97,166,586
Liabilities and shareholders’ equity
Current liabilities
Current portion of long-term debt	$1,979,722		$1,955,202
Accounts payable	6,699,695		6,450,813
Accrued salaries, wages and expenses	4,909,644		4,135,342
Dividend payable	757,389		757,029
Customers’ advances	2,892,004		981,680
Deferred income taxes	242,457		245,231
Total current liabilities	17,480,911		14,525,297
Long-term debt	5,034,456		5,417,990
Other non-current liabilities	3,317,132		3,276,551
Deferred income taxes	2,290,532		1,369,591
Total liabilities	28,123,031		24,589,429
Shareholders’ equity
Common shares, $.10 par value; 18,000,000 shares
authorized, 12,846,608 shares issued,
of which 1,626,031 and 1,631,364 shares were
reacquired and held in treasury at the respective dates	1,284,661		1,284,661
Additional paid-in capital	8,039,875		7,910,708
Retained earnings	77,917,406		74,921,913
Accumulated other comprehensive income (loss)	228,458		(33,471	)
Treasury shares, at cost	(11,469,057	)	(11,506,654	)
Total shareholders’ equity	76,001,343		72,577,157
Total liabilities and shareholders’ equity	$104,124,374		$97,166,586

Continued Page 4

Met-Pro Corporation/Page 4

Met-Pro Corporation

Consolidated Business Segment Data

(unaudited)

	Three Months Ended April 30,
	2007	2006
Net sales
Product recovery/pollution control technologies	$10,546,886	$9,298,349
Fluid handling technologies	6,054,072	5,917,494
Filtration/purification technologies	5,315,651	4,563,198
	$21,916,609	$19,779,041
Income from operations
Product recovery/pollution control technologies	$913,060	$566,714
Fluid handling technologies	1,163,314	695,544
Filtration/purification technologies	289,423	338,409
	2,365,797	1,600,667
Gain on sale of building	3,513,940	–
	$5,879,737	$1,600,667
	April 30,	January 31,
	2007	2007
Identifiable assets
Product recovery/pollution control technologies	$34,810,198	$35,332,252
Fluid handling technologies	20,968,230	21,667,719
Filtration/purification technologies	20,822,904	20,514,339
	76,601,332	77,514,310
Corporate	27,523,042	19,652,276
	$104,124,374	$97,166,586

Continued Page 5

Met-Pro Corporation/Page 5

Met-Pro Corporation

Consolidated Statement of Cash Flows

(unaudited) 

	Three Months Ended April 30,
	2007		2006
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities
Net income	$3,878,243		$1,207,448
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization	417,784		370,964
Deferred income taxes	904,929		(553	)
(Gain) on sale of property and equipment, net	(3,513,998	)	(4,410	)
Stock-based compensation	127,527		81,800
Allowance for doubtful accounts	23,302		(79,003	)
(Increase) decrease in operating assets:
Accounts receivable	761,011		1,740,117
Inventories	(1,214,553	)	(1,147,983	)
Prepaid expenses, deposits and other current assets	44,199		86,777
Other assets	(1,935	)	(2,250	)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	787,810		(1,072,742	)
Customers’ advances	1,908,041		262,518
Other non-current liabilities	40,581		549
Net cash provided by operating activities	4,162,941		1,443,232
Cash flows from investing activities
Proceeds from sale of property and equipment	4,342,598		4,410
Acquisitions of property and equipment	(354,559	)	(2,227,748	)
Net cash provided by (used in) investing activities	3,988,039		(2,223,338	)
Cash flows from financing activities
Proceeds from new borrowing	–		3,602,921
Reduction of debt	(367,235	)	(330,508	)
Exercise of stock options	39,238		55,232
Payment of dividends	(757,390	)	(699,820	)
Net cash provided by (used in) financing activities	(1,085,387	)	2,627,825
Effect of exchange rate changes on cash	(33,583	)	29,778
Net increase in cash and cash equivalents	7,032,010		1,877,497
Cash and cash equivalents at February 1	17,322,194		17,683,305
Cash and cash equivalents at April 30	$24,354,204		$19,560,802

Continued Page 6

Met-Pro Corporation/Page 6

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 income before tax, net income, and basic and diluted earnings per share, excluding the gain on the sale of property previously associated with the Company’s Sethco business unit in Hauppauge, New York, as well as income before tax, net income, and basic and diluted earnings per share calculated in accordance with generally accepted accounting principles, for the first quarters ended April 30, 2007 and 2006:

Met-Pro Corporation

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

 (unaudited)

	Three Months Ended
	April 30,
	2007		2006
Income before tax as reported	$6,016,891		$1,775,660
Less: Gain on sale of building	(3,513,940	)	–
Adjusted income before tax	$2,502,951		$1,775,660
Net income as reported	$3,878,243		$1,207,448
Less: Gain on sale of building	(2,213,782	)	–
Adjusted net income	$1,664,461		$1,207,448
Basic earnings per share as reported	$.35		$.11
Adjusted basic earnings per share	$.15		$.11
Diluted earnings per share as reported	$.34		$.11
Adjusted diluted earnings per share	$.15		$.11
Average common shares outstanding:
Basic shares	11,220,577		11,199,599
Diluted shares	11,468,767		11,439,813

###

EX-99.2

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 1

    

MET-PRO CORPORATION

Moderator: Kevin Bittle

May 22, 2007

10:00 am CT

Operator:	Good morning. My name is (Stacy) and I will be your conference operator today.
	At this time I would like to welcome everyone to the First Quarter 2007 Results conference call.
	All lines have been placed on mute to prevent any background noise.
	After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number 1 on your telephone keypad. If you would like to withdraw your question press star then the number 2 on your telephone keypad. Thank you.
	Mr. Biddle, you may begin your conference.
Kevin Bittle:	Good morning and welcome to Met-Pro Corporation’s Earnings conference call for the first quarter ended April 30, 2007.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 2

    

My name is Kevin Bittle and I’m with the company’s Creative Services Department. With me on our call this morning is Ray De Hont, our Chairman and Chief Executive Officer and Gary Morgan, our Senior Vice President of Finance and Chief Financial Officer. Shortly you will hear comments from both of these individuals.

But before we begin I’d like to make a few comments. First, during today’s call we will be referring to adjusted earnings. This is considered to be a non-GAAP financial measure since it excludes from earnings the effects of certain non-recurring items.

In this morning’s release we provided a reconciliation of adjusted earnings to our GAAP-based results, together with a discussion of why we use adjusted earnings.

The earnings release, along with reconciliation is available on the Investor Relation’s page on our corporate website, www.met-pro.com.

I’d also like to remind you that any statements made today with regard to our future expectations may constitute forward-looking statements within the meaning of the Private Securities and Litigation Reform Act of 1995.

Please refer to our Annual Report for the fiscal year ended January 31, 2007 that was filed with the SEC for important factors that among others could cause our actual results to differ from any results which might be projected or casted or estimated in any of our forward-looking statements.

And with that, I will now turn the call over to Ray.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 3

    

Ray De Hont:	Thank you, Kevin. Good morning, everyone and welcome again from Harleysville, Pennsylvania. Earlier this morning we released our financial results for the first quarter ended April 30, 2007.
	In a moment, Gary Morgan will provide more specific comments on the quarter’s financial results, but prior to that I’d like to offer these general comments on our performance.
	Our quotation activity during the first quarter remained high and we continue to achieve solid bookings. As a result we ended the first quarter with a record backlog which serves as a solid base for future sales growth.
	First quarter sales were the highest for any first quarter in the company’s history. The strategic measures we implemented last year, included selected sales price increases and improved purchasing practices continue to help improve our gross margins, resulting in a higher gross margin for the first quarter ended April 30, 2007 versus the same period last year.
	In addition, our adjusted first quarter net income and earnings per share increased significantly versus the same period last year.
	During the first quarter we also completed the sale of the property previously associated with the company’s Sethco business unit in Hauppauge, New York for $4.6 million.
	I would like to now ask Gary Morgan to review our first quarter financial performance, after which I will provide some concluding remarks before we take your questions.
	Gary.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 4

    

Gary Morgan:	Thank you, Ray. Net sales for the first quarter ended April 30, 2007 were the highest of any first quarter in the company’s history, totaling $21.9 million, compared with $19.8 million for the same quarter last year, an increase of 11%.
	This increase in net sales was due to a 16% increase in the filtration and purification technology segment, a 13% increase in the product recovery and pollution control technology segment, and a 2% increase in the fluid handling technology segment.
	The gross margin for the first quarter ended April 30, 2007 was 31.6%, compared with 29.6% for the same period in the prior year. This increase in gross margin was due to higher gross margins earned in the product recovery and pollution control technologies and fluid handling technology reporting segment, as a result of certain strategic measures implemented, which included selective price increases and improved purchasing practices.
	During the first quarter the company sold its manufacturing facility in Hauppauge, New York, which had been previously used by our Sethco business unit, prior to Sethco’s relocation and consolidation with our Fybroc business unit in Pennsylvania. This property sold for $4.6 million and resulted in a book gain before tax of $3.5 million.
	Including this profitable property sale, our income from operations for the first quarter ended April 30, 2007 was $5.9 million compared to $1.6 million for the same quarter last year.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 5

    

Excluding the pre-tax gain of $3.5 million on the sale of property, our adjusted income from operations was $2.4 million, still a solid gain of 48% over the same quarter last year.

Again excluding the gain on this property sale, income from operations increased 67% in the fluid handling technology segment and 61% in the product recover and pollution control technology segment, while income from operations in the filtration and purification technology segment decreased by 14%.

For the first quarter, we reported net income of $3.9 million, compared with $1.2 million for the same quarter last year. Excluding the net after tax gain of $2.2 million on the sale of the New York property our adjusted net income was $1.7 million for the first quarter, compared with $1.2 million for the same quarter last year, an increase of 38%.

Our diluted earnings per share for the first quarter ended April 30, 2007 were 34 cents per share, compared with 11 cents per share for the same quarter of last year. Excluding the net gain on the property, the company’s adjusted diluted earnings per share were 15 cents per share, compared with 11 cents per share for the same quarter of last year, an increase of 36%.

As a result of our strong level bookings totaling $23.2 million in the first quarter, we ended the first quarter with a record high backlog of $30 million, compared with $21.5 million for the same period of last year, an increase of 40%.

Our balance sheet remains strong. At the end of the first quarter our cash on hand totaled a record high $24.4 million or $2.17 per share, and our current ratio is 3.8.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 6

    

	Our debt totaled $7 million, which gives us a total debt to equity ratio of 9%.
	This concludes my comments. Thank you. And I will now turn the call back to Ray.
	Ray.
Ray De Hont:	Thank you, Gary. Let me focus again on the things that essentially tell the story for the first quarter. Market demand for Met-Pro’s products remained strong. Quotation activity continued to be high and we were able to achieve solid bookings, resulting in a record high $30 million backlog.
	Sales for the first quarter were the highest for any first quarter in the company’s history and together with improved gross margins resulted in significant increases in adjusted first quarter net income and earnings per share when compared with the same period last year.
	The record high $30 million backlog at the end of the first quarter, substantially all of which is expected to be shipped during the current fiscal year provides a solid base for future sales growth.
	The strategic measures we implemented last year, along with the additional ones we have already added this year, and will continue to add, should positively impact our future gross margins. Our balance sheet remains strong, and we will continue to invest in our company to maximize our future sales and earnings growth.
	In  closing, we are pleased with the results for the first quarter.  The measures we have taken to improve our sales and marketing organization and increase

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 7

    

	our profitability, together with a continuing strong demand for our products, our record-high backlog and steady quotation activity gives us confidence regarding our prospects for the second quarter and the full fiscal year.
	I’d like to thank all of you for your participation in today’s call.
	I’ll now turn the call back to Kevin Bittle.
	Kevin.
Kevin Bittle:	Thank you, Ray. At this time we would welcome any questions you may have. I would like to ask our Operator, (Stacy), to provide instructions for this portion of the call. Thank you.
Operator:	At this time if you would like to ask a question please press star then the number 1 on your telephone keypad. We’ll pause for just a moment to compile the Q&A roster.
	Your first question comes from Ryan Connors.
Ryan Connors:	Hi, guys.
Ray De Hont:	Hi, Ryan.

Gary Morgan:	Good morning, Ryan.
Ryan Connors:	Good morning. Yeah, just a few questions, first off on the gross margin, you know, obviously up year-over-year but it was a sequential downtick versus prior quarter. I wonder if you could talk about kind of what drove that, if it was mix or just what the big drivers were there?

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 8

    

Ray De Hont:	Well when you look at the makeup of the shipments for the first quarter, Ryan, the Product Recovery Pollution Control Technologies Group had 48% of the sales versus 27.6% – 27%-28% for fluid handling and around 24% for filtration purification.
	That’s versus 47 last year for product recovery pollution control, and almost 30 for the fluid handling technology. So when you look at it we had a little bit more in the product recovery pollution control side of our business as far as sales. And typically the margins are not as high as the Fluid Handling Technologies’ Group, although they were up on a year-to-year basis and they continue to improve.
Ryan Connors:	Okay.
Ray De Hont:	And that’s part of the reason for that.
Ryan Connors:	Okay, that helps. And then in terms of, you know, last quarter you talked about, you know, some shifting in terms of logistical issues pushing some orders forward, first quarter to second. Are we completely caught up there? In other words did everything that should have shipped in the first quarter end up going out in the second quarter?

Ray De Hont:	You mean everything that should have went in the fourth quarter went out in the first quarter.
Ryan Connors:	Right right. I’m sorry. Right.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 9

    

Ray De Hont:	Okay. You get me confused. Yes, when you look at – if you go back to last year, you go back to the third and fourth quarter when we were putting the news releases out on the bookings line…
Ryan Connors:	Right.
Ray De Hont:	Many of them, the larger ones basically said that the orders would be shipped in the second and third quarter. So that’s why we have confidence in the second and third quarter. But primarily everything that should have shipped in the first quarter did ship.
Ryan Connors:	Okay. And then last one, you know, just in terms of the backlog, obviously the numbers there are just very impressive, but it does seem like we’re starting to run up against large numbers in terms of, you know, additional growth from here getting tougher to come by. I mean, is it fair to say that we kind of level off a little bit versus some of the rates we’ve been seeing that expand?
Ray De Hont:	As far as on the sales side?
Ryan Connors:	As far as in the growth of the backlog.

Ray De Hont:	I think there’s still some room for growth there. However, you’re going to be starting to see in the second and third quarter you’re going to have some large shipments going out. So that backlog may come down a little bit by the end of the third quarter.
	But the activity is really strong right now, Ryan, as far as the quoting activity. And we expect some decent bookings. So it all depends on how the bookings turn out in the next two quarters.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 10

    

Ryan Connors:	Okay. And then finally, Gary, just a housekeeping item, what was the precise tax rate for the core business, taking the real estate gain out of the picture?
Gary Morgan:	The effective tax rate for the core business, Ryan, you should be using 33-1/2%. And the real estate, on the gain on the real estate I use 37%. So going forward into the second and third quarter in the balance of the year, I would – we estimate the tax rates going to be – end up being 33-1/2%.
Ryan Connors:	Okay great. That’s helpful. Thanks a lot as usual, guys.
Ray De Hont:	You’re welcome.
Operator:	Your next question comes from Rich Wesolowski.
Rich Wesolowski:	Good morning.
Ray De Hont:	Good morning.
Gary Morgan:	Good morning, Rich.

Rich Wesolowski:	Ray and Gary, the first Q earning season we heard mixed reports from varied companies on the states of the domestic industrial economy. Just broadly speaking, how do you expect to demand trend, looking past the next maybe one or two quarters where you can sense quoting activity?
Ray De Hont:	Well based on the information I’ve gotten from our General Managers and Vice Presidents, the activity is pretty good. It’s still strong. We’re getting a lot of activity on the quotation side. Our bookings have been solid. And they’re looking at good opportunities going forward. So I think the opportunities for our business are still strong as far as getting domestic booking.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 11

    

Gary Morgan:	And also on the international side.
Ray De Hont:	Well I think the question was about the domestic bookings. The international business continues to be very strong also.
Rich Wesolowski:	Okay great. I apologize if you covered this earlier. Have you made any additional moves to raise prices following the round that was discussed on the second half ’06 calls?
Ray De Hont:	We continue to look at it on a case-by-case basis. And we have made some increases in various businesses. They’re selective. Last year there were quite a few that were across the board, but this year we’re looking at where we’re impacted by maybe a commodity price increase here and there.
Rich Wesolowski:	Uh huh.
Ray De Hont:	And we’ve raised our prices accordingly.

Rich Wesolowski:	Is the strength in the pricing concentrated in one segment over another perhaps?
Ray De Hont:	Not really. When you look at the first quarter results we did well in our product recovery pollution control segment. The gross margins were up in that segment. The gross margins were up significantly in the fluid handling segment. And in the purification filtration group, which typically has a good high margins, they were about even.
Rich Wesolowski:	Okay. What’s stage are you guys at in expanding the water treatment chemical business to areas of the country where it hasn’t been so strong historically?

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 12

    

Ray De Hont:	We’re pretty far along. We’ve added some agents. And that’s where the impact comes in as far as on the SG&A. When you look at the filtration and purification group that’s where you see a little bit of a dip in the income. And that’s because we’ve added the agents. We’ve added sales and marketing people into that group. And for first quarter, although our overall businesses isn't cyclical, the first quarter is typically I’d say the toughest quarter for that group because the chemical business can suffer from weather conditions.
Rich Wesolowski:	Okay. Are the entrenched suppliers that you’re aiming to unseat, are you competing against an alternative type of product or the same product that you now make made by someone else?
Ray De Hont:	There’s different formulas. Everybody has a different formulation that they use for treating a process let’s say. What we’re doing is we’re looking at better opportunities. Are there better opportunities, both domestically and

	internationally for us to purchase a product that we can then blend into our product.
Rich Wesolowski:	Okay. Finally just a little item, did you see a meaningful change in the pension expense since moving to the contribution plan?
Gary Morgan:	We expect the savings about $500,000 on an annualized basis. In the first quarter we saved approximately $125,000 on the pension expenses.
Rich Wesolowski:	Great. Okay, thank you.
Ray De Hont:	You’re welcome.
Operator:	Your next question is from Christopher Mince.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 13

    

Christopher Mince:	Hello Ray, Gary.
Ray De Hont:	Hi, Christopher.
Gary Morgan:	Good morning, Christopher.
Christopher Mince:	Right. Just going off the previously asked revenue mix question, is there any way you could break out the revenue growth by say volume, price, currency, any of the above?

Ray De Hont:	Let me just clarify that. As far as you’re looking, as far as how it breaks down between the two – the three groups.
Christopher Mince:	Yes.
Ray De Hont:	Last year for the first quarter when you look at it as far as we had 47% of our business was product recovery pollution control technologies. And then it was 30% for fluid and handling technologies and 23% for the filtration, purification technologies.
	This first quarter product recovery pollution control amounted to 48% of the total shipments in the first quarter. Fluid handling was about 27-1/2% and filtration purification technology 24.3%. Now that’s in comparison to the full year numbers last year of around 51% for product recovery pollution control technologies, 28% for fluid handling technologies, and then around 21% for filtration purification technologies.
Gary Morgan:	Christopher, of the 11% sales increase, approximately 3% to 5% is related to the price increases.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 14

    

Christopher Mince:	Okay, that helps. Thanks.
Gary Morgan:	Okay.
Christopher Mince:	And going to the balance sheet, obviously cash balance has been steadily building. And, you know, with the recent sale of the real estate it had a nice pop. With that said, could you perhaps update us on your thinking regarding any potential cash deployment?

Ray De Hont:	Well as we’ve stated numerous times both in print and during our conference calls, we are looking at making some acquisitions. And we continue to look. We’ve got a number of opportunities out there. And we’re working towards hopefully bringing some of them to a close. That’s one end of it.
	As far as – we also are investigating a (1031) for the building that we sold in New York. We’re looking to possibly offset some of the tax consequences by purchasing a building and doing a (1031), a section (1031). Those are the two areas at this time.
Christopher Mince:	I’m looking to do that as well at my own house.
Gary Morgan:	Oh good idea.
Christopher Mince:	All right, but that’s all my questions. Thank you.
Ray De Hont:	You’re welcome.
Operator:	Your next question comes from Matt Zaute.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 15

    

Matt Zaute:	Hi. Congratulations on the quarter.
Ray De Hont:	Thank you, Matt.
Matt Zaute:	I’ve got a couple of questions. One is the – you mentioned a strong quality backlog. Can you maybe elaborate a little bit better what you mean by that? Are you suggesting there are better margin projects online or maybe there’s just lower risk projects?

Ray De Hont:	Well I think if you back to last year and maybe the year before we had some projects that didn’t do too well, as far as they came in below estimated margins. They had profit erosion. And we implemented a number of things on the project management side and also on the front-end side as far as how we sell projects.
	And as a result, the projects that are now on our backlog are stronger as far as margin-wise than they were at the same time last year. Last year at the end of the first quarter we had a couple of jobs in there, a couple of projects, significant projects that were much lower margins than what we see right now on our backlog.
	So our backlog overall as far as gross margin is better than it has been in the past couple of years. And the reason is because of the things we’ve implemented, but also as we’ve mentioned previously, our international business is doing very well.
	And we’ve had a number of news releases recently indicating that. And we’re finding we’re able to get some very good margin on the international side.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 16

    

Matt Zaute:	Okay. So is it safe to say that they will likely be let’s say on average maybe better than the last, you know, couple of quarters generally speaking?
Gary Morgan:	I would say better than the quarters of last year, the second – the first, second, and third quarter of last year.
Matt Zaute:	Okay. And then the second part is in regards to quotation activity when there’s this high activity how much of the quoting actual trend leads to an actual order? And what is maybe the time frame from quoting something to an actual order?

Ray De Hont:	It varies from group to group. When you get into the large engineered projects that – the quoting cycle from quote to actual closing of the job could be a year, year-and-a-half because it’s such a large project and has to go through so many channels for approval. You go through contractors and engineers, the end customer and so forth.
	On other jobs it’s a very quick turnaround, but the quotation activity we’re very selective. We’re a niche business historically and we continue to be a niche business. So we don’t try to be everything to everyone. So we may get request for quotes that we turn down. So we’re very selective. And as a result our hit rate is pretty high.
	But again it varies from division to division and subsidiary because of the type of the projects you’re quoting and who you’re competition may be. But typically it’s pretty high.
Matt Zaute:	Yeah. And then is there any kind of business where a contract could be substantial and I’ll quantify a little bit in saying at least – let’s say at least $5 million? Is there anything in the near horizon, any kind of project that we’re trying to bid on?

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 17

    

Ray De Hont: Well we’re quoting multiple projects, some in the multi-million dollar category. And it’s a matter of I don’t believe we have anything right now that’s at the point of possibly closing for that dollar amount. But we have a number of ones that are $1 million, $2 million and so forth.

	Those $5 million, $7 million projects like we received last year, as I said, there’s a longer lead time from the quotation or the request for a quote, the quotation and then actually booking the job. But we are working on a number of multi-million dollar type jobs.
Matt Zaute:	Okay. And my last question is, you know, a gentleman asked about cash deployment. But also, you know, the company has been a steady kind of cash flow generator. And in this world that we’re in private equity firms are very interested in perhaps a company like yours. And given the size of our company, as you know management of the Board consider maybe exploring strategic alternatives. And maybe you can just elaborate a little bit as to maybe perhaps why this may or may not be an attractive to a private equity firm.
Ray De Hont:	Well we’re always evaluating what our options are as a company. And we do that on a regular basis with our Board of Directors. But we have not been contacted by anybody as far as looking at all of Met-Pro Corporation.
	We have had companies come and ask if we’re looking to divest ourselves of one of our divisions or subsidiaries. And at this point we’re really not – looking at that because we feel that each of our businesses has good strong potential and the total company has strong potential.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 18

    

But you’re correct, with the cash that we have on hand, the cash generation, that’s what those companies – what the private equity looks for.

But again, we’re very diverse. It’s not like you’d be buying a company with one particular product. It has numerous products in numerous markets. And that’s a plus and a minus, depending what the private equity is looking to get into.

Matt Zaute:	Okay. All right. Thank you.
Ray De Hont:	You’re welcome.
Gary Morgan:	Matt, thank you.
Operator:	Once again if you would like to ask a question please press star and the number 1 on your telephone keypad.
	Your next question comes from Alvin Hofman.
Alvin Hofman:	Ray, what percentage of your business is foreign?

Ray De Hont:	Twenty-five – I think for the quarter.
Gary Morgan:	Twenty-five point six percent, five point six million dollars of sales were foreign in the first quarter, Alvin, which is 25.6%. Last year, for the whole year, it was $23.1 million at 25.3%. So our foreign sales continue to tick up. In fact we have – the last four major orders were had three of them were international orders.

Alvin Hofman: Mefiag is included in that foreign business.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 19

    

Gary Morgan:	Mefiag Europe is included in there, yes.
Alvin Hofman:	Mefiag US or Mefiag Holland.
Gary Morgan:	Mefiag BV in Holland and Mefiag Quangzhou in China are included in those numbers.
Alvin Hofman:	All right. Okay. Number two, there was a public relations presentation of 15 minutes I noticed on the Internet. It said that the company preceding Met-Pro – listed as preceding Met-Pro paid $9,999 for the service. I would like to ask if Met-Pro paid and if so, how much?
Ray De Hont:	Zero. We did not pay.
Alvin Hofman:	Good.
Gary Morgan:	We didn’t pay any monies, Alvin.
Alvin Hofman:	Good. I don’t like that stuff.
Ray De Hont:	No, we did not pay. I’ll be honest, Alvin, after we got done with the interview they sent me a form to fill out where they are requesting that we pay. And I said that was not the deal. And so we did not have to pay.
Alvin Hofman:	Congratulations.
Ray De Hont:	Thank you.

Alvin Hofman: Good businessman. I’m finished.

      

MET-PRO CORPORATION

        Moderator:  Kevin Bittle

05-22-07/10:00 am CT

Confirmation # 7939718

        Page 20

    

Ray De Hont:	Thank you, Alvin.
Gary Morgan:	Thank you, Alvin.
Operator:	Once again if you would like to ask a question please press star then the number 1 on your telephone keypad. We’ll pause for just a moment to compile the Q&A roster. There are no further questions at this time.
Kevin Bittle:	Thank you, (Stacy). That concludes today’s conference call. We thank you all very much for your participation.
Ray De Hont:	Thank you.
Gary Morgan:	Thank you.
Operator:	This concludes today’s conference call. You may now disconnect.

END