EX-99.1 2 mpr8kex99.htm FEBRUARY 26, 2009 PRESS RELEASE mpr8kex99.htm
 
 
Date: February 26, 2009  
     
For Release:  Immediate  
     
Contact: Investor Contact:  
  Gary J. Morgan, Joseph Hassett, VP
  Senior Vice President of Finance, CFO Gregory FCA Communications
  215-723-6751  610-228-2110

 
Met-Pro Corporation Announces
 Fourth Quarter and Fiscal Year End Financial Results

 
Harleysville, PA, February 26, 2009 – Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE: MPR), today announced the Company’s financial results for the fourth quarter and fiscal year ended January 31, 2009.
 
Net sales for the fourth quarter ended January 31, 2009 were $24.6 million compared with record quarterly net sales of $29.3 million for the fourth quarter last year. Net income in the fourth quarter totaled $2.2 million compared with a record quarterly net income of $3.2 million for the same quarter last year. For the fourth quarter, the Company reported earnings of $0.15 per fully diluted share compared with $0.21 per fully diluted share for the fourth quarter of last year. In addition, the Company generated $4.4 million in cash flow from operating activities in the fourth quarter and finished the year with a cash balance of $21.7 million.
 
“Despite the current global economic environment, this quarter’s sales and earnings were the second best fourth quarter results in the Company’s history and non-project revenues, including recurring demand for parts and consumables, remained strong throughout the fiscal year,” said De Hont. “During fiscal 2009, our efficiency initiatives, including facility consolidations, global sourcing, and more effective logistics, continued to generate cost improvements helping us expand margins, generate record cash flow from operating activities, and increase full year earnings compared with the prior year excluding a gain on real estate. The global economic slowdown, however, did impact our business, particularly in our Product Recovery/Pollution Control Technologies segment, where the timeframe between quotation and order for large projects continued to increase. The overall decrease in fourth quarter and fiscal year 2009 revenues was almost entirely due to the resultant decrease in large project activity in the current fiscal year.
 
“Fortunately, we enter the new year with an extremely strong balance sheet and continue to anticipate strong cash flows from operating activities, which will allow us to support investments to further enhance efficiency initiatives, develop exciting new products, and expand into new growth markets. While there will be short-term disruptions, over the long term, we believe the diversity of our products and end markets, together with our international brand recognition, new product development capabilities, improving operating efficiencies and strong balance sheet, leave us well positioned to capitalize on the worldwide trend towards a cleaner environment, lower energy consumption, and improved process performance.”
 
Net sales for the fiscal year ended January 31, 2009 were $103.4 million, which included approximately $11.5 million in project revenues, compared with fiscal 2008 net sales of $106.9 million, which included approximately $21 million of project revenues. For the fiscal year ended January 31, 2009, net income totaled $9.9 million, or $0.65 per fully diluted share, compared with $11.9 million, or $0.78 per fully diluted share, for the same period last year, which included a $2.2 million ($0.15 per fully diluted share) gain from a real estate sale. Excluding the gain from the real estate sale in fiscal 2008, both the net income and fully diluted earnings per share for the fiscal year ended January 31, 2009 were the highest in the Company’s history.
 
Met-Pro’s bookings of new orders for the fourth quarter were $19.0 million compared with $21.2 million for the same quarter last year, which included a $3.4 million project. Bookings of new orders for the fiscal year ended January 31, 2009 were $101.8 million compared with $93.4 million for the same period last year.
 
Continued Page 2
Met-Pro Corporation/Page 2

 
At their December 3, 2008 meeting, the Board of Directors declared a quarterly dividend of $0.06 per share payable March 12, 2009 to shareholders of record at the close of business on February 26, 2009. The current quarterly dividend represents a 9% increase over the same period last year. This is the thirty-fourth consecutive year the Company has paid a cash or stock dividend.
 
Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and Chief Financial Officer, will hold a conference call for investors today, February 26, 2009, at 11:00 AM (Eastern). Met-Pro’s earnings release and the accompanying financial supplement, which includes significant financial information to be discussed during the conference call, will be available on Met-Pro’s Investor Relations website at www.met-pro.com/html/invrel.htm prior to the beginning of the conference call.
 
Interested persons who wish to hear the live webcast should go to the Met-Pro Corporation website prior to the starting time to register, download and install any necessary audio software.
 
You may also participate by calling the US/Canada Dial-In # 877-818-7738 or the International Dial-In # 706-643-9333 (conference ID 85225048) at 10:55 AM (Eastern) on February 26, 2009. A taped replay of the conference call will be available within two hours of the conclusion of the call and until March 12, 2009. To access the taped replay, call the US/Canada Dial-In # 800-642-1687 or the International Dial-In # 706-645-9291 and enter conference ID 85225048.
 
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, for the third consecutive year, as one of America’s “200 Best Small Companies” by Forbes magazine. In 2008, the Company was also named one of the world’s “Top Small to Midsize Manufacturers” by Start-It magazine for the second year in a row. Through its business units, in the United States, Canada, Europe and The People's Republic of China, a wide range of products and services are offered for industrial, commercial, municipal and residential markets worldwide. These include product recovery and pollution control technologies for purification of air and liquids; fluid handling technologies for corrosive, abrasive and high temperature liquids; Mefiag filtration technologies for harsh, corrosive liquid filtration applications; and filtration and purification technologies which include proprietary water treatment chemicals and filter products for air and liquid filtration. 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 news 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 website at www.met-pro.com.
 

 

 

 

 

 

Continued Page 3
Met-Pro Corporation/Page 3
 
 
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)

   
Three Months Ended
  
Fiscal Year Ended
  
   
January 31,
  
January 31,
  
   
2009
  
2008
  
2009
  
2008
  
 
Net sales
$24,610,251
  
$29,251,582
  
$103,391,926
  
$106,867,849
  
 
Cost of goods sold
15,979,614
  
19,142,027
  
67,290,930
  
70,495,481
  
 
Gross profit
8,630,637
  
10,109,555
  
36,100,996
  
36,372,368
  
                   
 
Operating expenses
                
 
Selling
2,592,731
  
2,868,282
  
10,704,584
  
11,484,530
  
 
General and administrative
2,838,093
  
2,430,561
  
11,339,333
  
10,804,287
  
 
Gain on sale of building
–
  
–
  
–
  
(3,513,940
)
 
Income from operations
3,199,813
  
4,810,712
  
14,057,079
  
17,597,491
  
                   
 
Interest expense
 (48,301
)
(63,931
)
 (228,249
)
(304,325
)
 
Other income, net
52,306
  
223,584
  
429,074
  
968,715
  
 
Income before taxes
3,203,818
  
4,970,365
  
14,257,904
  
18,261,881
  
                   
 
Provision for taxes
982,725
  
1,780,071
  
4,396,839
  
6,355,716
  
                   
 
Net income
$2,221,093
  
$3,190,294
  
$9,861,065
  
$11,906,165
  
                   
 
Basic earnings per share
$0.15
  
$0.21
  
$0.66
  
$0.79
  
 
Diluted earnings per share
$0.15
  
$0.21
  
$0.65
  
$0.78
  
                   
 
Average common shares outstanding:
                
 
Basic shares
14,939,840
  
14,998,422
  
14,909,809
  
15,002,012
  
 
Diluted shares
15,261,918
  
15,329,739
  
15,219,540
  
15,328,368
  




 

 
 
 
 
 
 
 
 
 
 

 
 
 
 

 

 

Continued Page 4
Met-Pro Corporation/Page 4
 

Met-Pro Corporation
Consolidated Balance Sheet
(unaudited)

     
January 31,
    
January 31,
  
     
2009
    
2008
 
 
Assets
            
 
Current assets
            
 
Cash and cash equivalents
  
$21,749,653
    
$21,906,877
  
 
Marketable securities
  
–
    
20,369
  
 
Accounts receivable, net of allowance for doubtful
            
 
accounts of approximately $167,000 and
            
 
$152,000, respectively
  
20,177,672
    
23,013,988
  
 
Inventories
  
20,236,865
    
21,258,227
  
 
Prepaid expenses, deposits and other current assets
  
1,997,542
    
1,895,679
  
 
Total current assets
  
64,161,732
    
68,095,140
  
               
 
Property, plant and equipment, net
  
19,389,597
    
20,233,827
  
 
Costs in excess of net assets of businesses acquired, net
  
20,798,913
    
20,798,913
  
 
Other assets
  
402,062
    
283,023
  
 
Total assets
  
$104,752,304
    
$109,410,903
  
               
 
Liabilities and shareholders’ equity
            
 
Current liabilities
            
 
Current portion of long-term debt
  
$746,042
    
$2,028,482
  
 
Accounts payable
  
5,464,629
    
7,512,874
  
 
Accrued salaries, wages and expenses
  
4,546,199
    
6,023,857
  
 
Dividend payable
  
876,007
    
827,147
  
 
Customers’ advances
  
356,008
    
260,698
  
 
Deferred income taxes
  
250,782
    
197,743
  
 
Total current liabilities
  
12,239,667
    
16,850,801
  
               
 
Long-term debt
  
3,753,228
    
4,075,682
  
 
Other non-current liabilities
  
8,855,912
    
2,109,250
  
 
Deferred income taxes
  
1,126,016
    
3,132,002
  
 
Total liabilities
  
25,974,823
    
26,167,735
  
               
 
Shareholders’ equity
            
 
Common shares, $.10 par value; 36,000,000 shares
            
 
authorized, 15,928,679 and 15,928,810 shares issued,
            
 
of which 1,328,570 and 889,780 shares were reacquired
            
 
and held in treasury at the respective dates
  
1,592,868
    
1,592,881
  
 
Additional paid-in capital
  
2,465,193
    
1,897,655
  
 
Retained earnings
  
89,727,308
    
83,267,096
  
 
Accumulated other comprehensive income (loss)
  
(4,324,293
)
  
1,340,427
  
 
Treasury shares, at cost
  
(10,683,595
)
  
(4,854,891
)
 
Total shareholders’ equity
  
78,777,481
    
83,243,168
  
 
Total liabilities and shareholders’ equity
  
$104,752,304
    
$109,410,903
  


 

 
 

 
 

Continued Page 5
Met-Pro Corporation/Page 5
 

Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)

   
Three Months Ended
Fiscal Year Ended
   
January 31,
January 31,
   
2009
  
2008
  
        2009
  
2008
 
Net sales
                
 
Product Recovery/Pollution Control Technologies
$12,414,318
  
$16,921,157
  
$49,968,918
  
$56,897,328
  
 
Fluid Handling Technologies
7,344,046
  
6,823,192
  
30,414,765
  
27,578,301
  
 
Mefiag Filtration Technologies (1)
2,068,332
  
3,031,937
  
11,183,054
  
11,543,563
  
 
Filtration/Purification Technologies (1)
2,783,555
  
2,475,296
  
11,825,189
  
10,848,657
  
   
$24,610,251
  
$29,251,582
  
$103,391,926
  
$106,867,849
  
                   
 
Income from operations
                
 
Product Recovery/Pollution Control Technologies
$1,111,964
  
$2,682,283
  
$5,556,919
  
$6,573,097
  
 
Fluid Handling Technologies
1,825,706
  
1,570,615
  
6,848,148
  
5,895,780
  
 
Mefiag Filtration Technologies (1)
(37,470
)
405,597
  
488,514
  
868,252
  
 
Filtration/Purification Technologies (1)
299,613
  
152,217
  
1,163,498
  
746,422
  
   
3,199,813
  
4,810,712
  
14,057,079
  
14,083,551
  
 
Gain on sale of building
–
  
–
  
–
  
3,513,940
  
   
$3,199,813
  
$4,810,712
  
$14,057,079
  
$17,597,491
  
                   
                   
           
January 31,
  
January 31,
  
           
2009
  
2008
  
 
Identifiable Assets
                
 
Product Recovery/Pollution Control Technologies
        
$39,623,284
  
$40,509,227
  
 
Fluid Handling Technologies
        
22,056,812
  
22,401,768
  
 
Mefiag Filtration Technologies (1)
        
11,410,677
  
12,810,694
  
 
Filtration/Purification Technologies (1)
        
9,369,905
  
8,877,725
  
           
82,460,678
  
84,599,414
  
 
Corporate
        
22,291,626
  
24,811,489
  
           
$104,752,304
  
$109,410,903
  

  (1)
On a quarterly basis, the Company analyzes the segmentation aggregation criteria as outlined in SFAS No. 131. As of the fiscal year ending January 31, 2009, the Mefiag operating segment previously included in the aggregated Filtration/Purification Technologies segment, met the quantitative threshold of reported revenue of 10% or more of the totaled consolidated revenue of the Company. As a result, SFAS No. 131 requires the Mefiag operating segment to be listed as a reportable segment and therefore separately disclosed. This change in segment reporting results in the Company identifying three reportable segments, Product Recovery/Pollution Control Technologies, Fluid Handling Technologies and Mefiag Filtration Technologies, and one other segment, Filtration/Purification Technologies, as presented above.






 


 

 

 
 

 

 
Continued Page 6
Met-Pro Corporation/Page 6
 

Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)

     
Years Ended January 31,
  
     
2009
 
2008
 
Increase (Decrease) in Cash and Cash Equivalents
 
Cash flows from operating activities
          
 
Net income
  
$9,861,065
  
$11,906,165
  
 
Adjustments to reconcile net income to net
          
 
cash provided by operating activities:
          
 
Depreciation and amortization
  
1,924,611
  
1,738,625
  
 
Deferred income taxes
  
913,356
  
1,369,460
  
 
(Gain) loss on sales of property and equipment, net
  
(18,174
)
(3,556,088
)
 
       Loss on sale of investments
  
11,102
  
–
  
 
Stock-based compensation
  
432,204
  
510,108
  
 
Allowance for doubtful accounts
  
14,695
  
19,352
  
 
(Increase) decrease in operating assets:
          
 
Accounts receivable
  
2,414,216
  
(2,633,358
)
 
Inventories
  
723,256
  
(1,197,111
)
 
Prepaid expenses and deposits
  
(653,985
)
(754
)
 
Other assets
  
374,563
  
(115,992
)
 
Increase (decrease) in operating liabilities:
          
 
Accounts payable and accrued expenses
  
(3,113,308
)
2,654,425
  
 
Customers’ advances
  
96,670
  
(723,531
)
 
Other non-current liabilities
  
(838,184
)
(96,157
)
             
 
Net cash provided by operating activities
  
12,142,087
  
9,875,144
  
             
 
Cash flows from investing activities
          
 
Proceeds from sales of property and equipment
  
20,785
  
4,396,164
  
 
Acquisitions of property and equipment
  
(1,580,528
)
(5,456,418
)
 
Increase in securities available for sale
  
(472
)
–
  
 
Proceeds from sale of securities
  
11,190
  
–
  
             
 
Net cash (used in) investing activities
  
(1,549,025
)
(1,060,254
)
             
 
Cash flows from financing activities
          
 
Reduction of debt
  
(1,664,252
)
(1,499,334
)
 
Exercise of stock options
  
1,912,398
  
1,081,835
  
 
Payment of dividends
  
(3,359,962
)
(3,101,839
)
 
Purchase of treasury shares
  
(7,694,333
)
(630,515
)
 
Payment of cash in lieu of fractional shares
  
–
  
(1,642
)
             
 
Net cash (used in) financing activities
  
(10,806,149
)
(4,151,495
)
 
Effect of exchange rate changes on cash
  
55,863
  
(78,712
)
             
 
Net increase (decrease) in cash and cash equivalents
  
(157,224
)
4,584,683
  
             
 
Cash and cash equivalents at beginning of year
  
21,906,877
  
17,322,194
  
             
 
Cash and cash equivalents at end of year
  
$21,749,653
  
$21,906,877
  

 

Continued Page 7
Met-Pro Corporation/Page 7
 

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
 
This news 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 with 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 news 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 news 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 three month period and fiscal year ended January 31, 2009 and 2008:
 


Met-Pro Corporation
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
 (unaudited)
 
   
Three Months Ended
  
Fiscal Year Ended
  
   
January 31,
  
January 31,
  
   
2009
  
2008
  
2009
  
2008
  
 
Income before tax as reported
$3,203,818
  
$4,970,365
  
$14,257,904
  
$18,261,881
  
 
Less: Gain on sale of building
–
  
–
  
–
  
(3,513,940
)
 
Adjusted income before tax
$3,203,818
  
$4,970,365
  
$14,257,904
  
$14,747,941
  
                   
                   
 
Net income as reported
$2,221,093
  
$3,190,294
  
$9,861,065
  
$11,906,165
  
 
Less: Gain on sale of building
–
  
–
  
–
  
(2,213,782
)
 
Adjusted net income
$2,221,093
  
$3,190,294
  
$9,861,065
  
$9,692,383
  
                   
                   
 
Basic earnings per share as reported
$0.15
  
$0.21
  
$0.66
  
$0.79
  
 
Adjusted basic earnings per share
$0.15
  
$0.21
  
$0.66
  
$0.65
  
                   
                   
 
Diluted earnings per share as reported
$0.15
  
          $0.21
  
$0.65
  
$0.78
  
 
Adjusted diluted earnings per share
$0.15
  
          $0.21
  
$0.65
  
$0.63
  
                   
                   
 
Average common shares outstanding:
                
 
Basic shares
14,939,840
  
14,998,422
  
14,909,809
  
15,002,012
  
 
Diluted shares
15,261,918
  
15,329,739
  
15,219,540
  
15,328,368
  



 




 
 
 
 

###