EX-99.1 2 mpr8k20100226ex991.htm PRESS RELEASE ISSUED FEBRUARY 26, 2010 mpr8k20100226ex991.htm
 
 
Date:
February 26, 2010
  
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, 2010 – 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, 2010.
 
Net sales for the fourth quarter ended January 31, 2010 were $19.8 million compared with net sales of $24.6 million for the fourth quarter last year. Net income in the fourth quarter totaled $1.3 million, or $0.09 per fully diluted share, compared with net income of $2.2 million, or $0.15 per fully diluted share, for the same quarter last year.
 
New order bookings for the fourth quarter were $18.0 million compared with $19.0 million for the same quarter last year.
 
“The fourth quarter proved to be another very challenging quarter as both revenues and earnings were down versus the fourth quarter last year,” said De Hont. “Fortunately, the efficiency and cost reduction initiatives we’ve implemented, together with our flexible manufacturing strategy, allowed us to generate solid gross margins of slightly greater than 33% in the fourth quarter despite reduced revenue levels. Lower selling, general and administrative expenses also positively impacted the fourth quarter financial results and together with the solid gross margins allowed us to deliver the most profitable quarter of the fiscal year. Though fourth quarter new order bookings were down slightly from a year ago, we believe the shortfall was simply a timing issue. We are encouraged by the level of large project activity and remain optimistic regarding future new order bookings.”
 
Net sales for the fiscal year ended January 31, 2010 were $80.1 million compared with fiscal 2009 net sales of $103.4 million. For the fiscal year ended January 31, 2010, net income totaled $4.4 million, or $0.30 per fully diluted share, compared with $9.9 million, or $0.65 per fully diluted share, for the prior fiscal year.
 
The Company generated a record $15.6 million in cash flow from operating activities in the fiscal year and ended the fiscal year with a cash balance of $31.4 million.
 
Bookings of new orders for the fiscal year ended January 31, 2010 were $81.8 million compared with $101.8 million for the same period last year.
 
“Our performance during the fiscal year ending January 31, 2010 again demonstrated the resiliency of our business model, as we sustained gross margins and improved operating efficiencies to generate profits and cash despite one of the most challenging years in our history,” added De Hont. “We recently consolidated our Duall, Flex-Kleen and Met-Pro Systems business units into a single business unit, Met-Pro Environmental Air Solutions. The newly formed Met-Pro Environmental Air Solutions business unit will allow us to improve our capacity utilization, reduce our cost structure and improve our competitive positioning and profitability. We will be better able to take advantage of the many synergies that exist between the Duall, Flex-Kleen and Systems brands, allowing us the opportunity to gain market share, especially in markets where we currently have limited or no presence, and service our customers in a more effective manner. With a high cash position and very little debt, our balance sheet remains extremely strong. We continue to focus on efficiency and cost reduction initiatives, which will allow us to effectively compete for new business while achieving solid gross margins.
 

Continued Page 2
Met-Pro Corporation/Page 2
 
 
“Market conditions seem to be improving, as our new order bookings were up $5.1 million or 13% in the second half of the fiscal year when compared with the first half of the fiscal year. We are confident that Met-Pro is ideally positioned to leverage our strong financial position to capitalize on a global economic recovery in which there will be rising demand for our extensive portfolio of energy-efficient, environmentally-friendly and productivity enhancing products.”
 
At their December 11, 2009 meeting, the Company’s Board of Directors declared a quarterly dividend of $0.06 per share payable on March 12, 2010 to shareholders of record at the close of business on February 26, 2010. This is the thirty-fifth consecutive year that Met-Pro Corporation has paid either 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, 2010, 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 54625283) at 10:55 AM (Eastern) today. A taped replay of the conference call will be available within two hours of the conclusion of the call and until March 12, 2010. 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 54625283.
 
About Met-Pro
 
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized as one of “America’s Fastest Growing Small Companies” by Fortune Small Business magazine. Through its business units in the United States, Canada, Europe and The People's Republic of China, a wide range of products and services is 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; 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, goodwill impairment, 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 Income
 
 
    Three Months Ended   Fiscal Year Ended  
   
January 31,
  
January 31,
  
   
2010
  
2009
  
2010
  
  2009
  
 
Net sales
$19,798,121
  
$24,610,251
  
$80,132,493
  
$103,391,926
  
 
Cost of goods sold
13,217,027
  
15,979,614
  
52,755,941
  
67,290,930
  
 
Gross profit
6,581,094
  
8,630,637
  
27,376,552
  
36,100,996
  
                   
 
Operating expenses
                
 
Selling
2,326,140
  
2,592,731
  
9,741,528
  
10,704,584
  
 
General and administrative
2,522,511
  
2,838,093
  
11,122,469
  
11,339,333
  
 
Income from operations
1,732,443
  
3,199,813
  
6,512,555
  
14,057,079
  
                   
 
Interest expense
(57,694
)
(48,301
)
(224,143
)
(228,249
)
 
Other income, net
121,736
  
52,306
  
260,177
  
429,074
  
 
Income before taxes
1,796,485
  
3,203,818
  
6,548,589
  
14,257,904
  
                   
 
Provision for taxes
516,821
  
982,725
  
2,108,778
  
4,396,839
  
                   
 
Net income
$1,279,664
  
$2,221,093
  
$4,439,811
  
$9,861,065
  
                   
 
Basic earnings per share
$.09
  
$.15
  
$.30
  
$.66
  
 
Diluted earnings per share
$.09
  
$.15
  
$.30
  
$.65
  
                   
 
Average common shares outstanding:
                
 
Basic shares
14,601,259
  
14,939,840
  
14,602,276
  
14,909,809
  
 
Diluted shares
14,676,349
  
15,261,918
  
14,675,735
  
15,219,540
  

 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Continued Page 4
Met-Pro Corporation/Page 4
 
 
 
Met-Pro Corporation
Consolidated Balance Sheet
 

       January 31,   January 31,  
     
2010
   2009  
 
Assets
          
 
Current assets
          
 
Cash and cash equivalents
  
$31,387,108
  
$21,749,653
  
 
Accounts receivable, net of allowance for doubtful
          
 
accounts of approximately $204,000 and
          
 
$167,000, respectively
  
14,011,950
  
20,177,672
  
 
Inventories
  
16,136,521
  
20,236,865
  
 
Prepaid expenses, deposits and other current assets
  
1,709,664
  
1,997,542
  
 
Total current assets
  
63,245,243
  
64,161,732
  
             
 
Property, plant and equipment, net
  
19,860,751
  
19,389,597
  
 
Goodwill
  
20,798,913
  
20,798,913
  
 
Other assets
  
703,452
  
402,062
  
 
Total assets
  
$104,608,359
  
$104,752,304
  
             
             
 
Liabilities and shareholders’ equity
          
 
Current liabilities
          
 
Current portion of long-term debt
  
$534,251
  
$746,042
  
 
Accounts payable
  
4,297,936
  
5,464,629
  
 
Accrued salaries, wages and expenses
  
3,425,691
  
4,546,199
  
 
Dividend payable
  
876,279
  
876,007
  
 
Customers’ advances
  
882,637
  
356,008
  
 
Deferred income taxes
  
181,253
  
250,782
  
 
Total current liabilities
  
10,198,047
  
12,239,667
  
             
 
Long-term debt
  
3,536,755
  
3,753,228
  
 
Other non-current liabilities
  
8,179,410
  
8,855,912
  
 
Deferred income taxes
  
1,716,563
  
1,126,016
  
 
Total liabilities
  
23,630,775
  
25,974,823
  
             
 
Shareholders’ equity
          
 
Common shares, $.10 par value; 36,000,000 shares
          
 
authorized, 15,928,679 shares issued, of which
          
 
1,311,664 and 1,328,570 shares were reacquired
          
 
and held in treasury at the respective dates
  
1,592,868
  
1,592,868
  
 
Additional paid-in capital
  
2,988,950
  
2,465,193
  
 
Retained earnings
  
90,662,820
  
89,727,308
  
 
Accumulated other comprehensive loss
  
(3,679,641
)
(4,324,293
)
 
Treasury shares, at cost
  
(10,587,413
)
(10,683,595
)
 
Total shareholders’ equity
  
80,977,584
  
78,777,481
  
 
Total liabilities and shareholders’ equity
  
$104,608,359
  
$104,752,304
  


 

 
 

 
 

 
 

 
Continued Page 5
Met-Pro Corporation/Page 5
 
 
 
Met-Pro Corporation
Consolidated Business Segment Data
 
 
   
Three Months Ended
January 31,
  
Fiscal Year Ended
January 31,
  
   
2010
  
2009
  
2010
  
2009
  
 
Net sales
                
 
Product recovery/pollution control technologies
$8,999,225
  
$12,414,318
  
$35,899,630
  
$49,968,918
  
 
Fluid handling technologies
6,036,695
  
7,344,046
  
24,527,998
  
30,414,765
  
 
Mefiag filtration technologies
2,545,181
  
2,068,332
  
9,526,908
  
11,183,054
  
 
Filtration/purification technologies
2,217,020
  
2,783,555
  
10,177,957
  
11,825,189
  
   
$19,798,121
  
$24,610,251
  
$80,132,493
  
$103,391,926
  
                   
 
Income (loss) from operations
                
 
Product recovery/pollution control technologies
$313,684
  
$1,111,964
  
$1,924,005
  
$5,556,919
  
 
Fluid handling technologies
1,215,678
  
1,825,706
  
4,325,853
  
6,848,148
  
 
Mefiag filtration technologies
76,486
  
(37,470
)
(34,886
)
488,514
  
 
Filtration/purification technologies
126,595
  
299,613
  
297,583
  
1,163,498
  
   
$1,732,443
  
$3,199,813
  
$6,512,555
  
$14,057,079
  
                   
           
 January 31,
 2010
  
January 31,
2009
  
 
Identifiable Assets
                
 
Product recovery/pollution control technologies
        
$34,466,168
  
$39,623,284
  
 
Fluid handling technologies
        
18,068,428
  
22,056,812
  
 
Mefiag filtration technologies
        
12,257,281
  
11,410,677
  
 
Filtration/purification technologies
        
8,257,837
  
9,369,905
  
           
73,049,714
  
82,460,678
  
 
Corporate
        
31,558,645
  
22,291,626
  
           
$104,608,359
  
$104,752,304
  
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Continued Page 6
Met-Pro Corporation/Page 6
 
 
 
Met-Pro Corporation
Consolidated Statement of Cash Flows
 
 
      Years Ended January 31,  
     
2010
  
2009
  
 
Cash flows from operating activities
          
 
Net income
  
$4,439,811
  
$9,861,065
  
 
Adjustments to reconcile net income to net
          
 
  cash provided by operating activities:
          
 
Depreciation and amortization
  
1,931,512
  
1,924,611
  
 
Deferred income taxes
  
406,754
  
913,356
  
 
(Gain) on sales of property and equipment, net
  
(20,585
)
(18,174
)
 
Loss on sale of investments
  
–
  
11,102
  
 
Stock-based compensation
  
645,967
  
432,204
  
 
Allowance for doubtful accounts
  
37,189
  
14,695
  
 
Changes in operating assets and liabilities:
          
 
Accounts receivable
  
6,409,090
  
2,414,216
  
 
Inventories
  
4,280,330
  
723,256
  
 
Prepaid expenses, deposits and other assets
  
(9,904
)
(279,422
)
 
Accounts payable and accrued expenses
  
(2,551,921
)
(3,113,308
)
 
Customers’ advances
  
524,678
  
96,670
  
 
Other non-current liabilities
  
(447,208
)
(838,184
)
             
 
Net cash provided by operating activities
  
15,645,713
  
12,142,087
  
             
 
Cash flows from investing activities
          
 
Proceeds from sales of property and equipment
  
40,318
  
20,785
  
 
Acquisitions of property and equipment
  
(2,133,807
)
(1,580,528
)
 
Increase in securities available for sale
  
–
  
(472
)
 
Proceeds from sale of securities
  
–
  
11,190
  
             
 
Net cash (used in) investing activities
  
(2,093,489
)
(1,549,025
)
             
 
Cash flows from financing activities
          
 
Proceeds from new borrowings
  
485,336
  
–
  
 
Reduction of debt
  
(926,497
)
(1,664,252
)
 
Exercise of stock options
  
225,584
  
1,912,398
  
 
Payment of dividends
  
(3,504,026
)
(3,359,962
)
 
Purchase of treasury shares
  
(251,612
)
(7,694,333
)
             
 
Net cash (used in) financing activities
  
(3,971,215
)
(10,806,149
)
 
Effect of exchange rate changes on cash
  
56,446
  
55,863
  
             
 
Net increase (decrease) in cash and cash equivalents
  
9,637,455
  
(157,224
)
             
 
Cash and cash equivalents at beginning of year
  
21,749,653
  
21,906,877
  
             
 
Cash and cash equivalents at end of year
 
$31,387,108
  
$21,749,653
  


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