EX-99.1 2 mpr8k20100827pr.htm RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JULY 31, 2010 mpr8k20100827pr.htm
 
 
Date:
August 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 Second Quarter Financial Results
 
·   Earnings Per Share up 38% Versus Last Year’s Second Quarter
 
Harleysville, PA, August 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 second quarter ended July 31, 2010.
 
Net sales for the second quarter ended July 31, 2010 were $21.4 million compared with net sales of $20.9 million for the same quarter last year. Net income totaled $1.6 million and diluted earnings per share were $0.11 for the second quarter, compared with net income of $1.2 million and diluted earnings per share of $0.08 for the same period last year, increases of 31% and 38%, respectively.
 
New order bookings for the second quarter were up 14% to $22.1 million compared with $19.4 million for the second quarter last year. As a result, the Company’s backlog of orders as of July 31, 2010 totaled $17.7 million compared with $13.1 million last year, an increase of 35%. Substantially all of the July 31, 2010 backlog is expected to be shipped during the current fiscal year.
 
“Demand for Met-Pro’s products continues to remain strong as evidenced by the 14% increase in second quarter new order bookings, which followed a 17% increase in new order bookings during the first quarter ended April 30, 2010,” stated De Hont. “We are encouraged that the increase in new order bookings both in the second quarter and year-to-date was achieved without the benefit of any material contribution from large projects, the timing of which remains unpredictable.  Large project quotation activity, however, remains steady adding to an already significant pipeline of opportunities. We are also encouraged by the improvement in gross margin during the second quarter, 37% versus 34% for last year’s second quarter, as well as the improvement in income from operations as a percentage of sales, 11% versus 8% for last year’s second quarter. The continued strength in new order bookings, together with our steady quotation activity and the underlying fundamental strength of our business, gives us continued optimism about our future prospects.”
 
Net sales for the six months ended July 31, 2010 were $43.7 million compared with $40.5 million for the same period last year, an increase of 8%. Net income for the first half ended July 31, 2010 totaled $3.0 million compared with $2.1 million for the same period last year, an increase of 39%. For the first half ended July 31, 2010, earnings were $0.20 per fully diluted share compared with earnings of $0.15 per fully diluted share for last year’s first half, an increase of 33%.
 
Cash flows from operating activities for the six months ended July 31, 2010 totaled $5.2 million, which increased the Company’s cash position at July 31, 2010 to a record $34.2 million. This cash balance, though underperforming in today's investment market, provides for acquisition opportunities as well as continued shareholder dividends.
 
On June 11, 2010, the Company paid a quarterly dividend of $0.06 per share to shareholders of record at the close of business on May 28, 2010. In addition, the Board of Directors, at their meeting on June 2, 2010, declared a quarterly dividend of $0.06 per share payable September 15, 2010 to shareholders of record at the close of business on September 1, 2010. This is the thirty-fifth consecutive year that Met-Pro Corporation has paid either a cash or stock dividend.
 
Continued Page 2
 
Met-Pro Corporation/Page 2
 
Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and Chief Financial Officer, will hold a conference call for investors today, August 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 89900484) 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 September 9, 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 89900484.
 
About Met-Pro
 
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, is a leading niche-oriented global provider of product recovery, pollution control and fluid handling solutions. The Company’s diverse and synergistic solutions and products address the world’s growing need to meet more stringent emission regulations, reduce energy consumption and employ green technology. Through its global sales organization, internationally recognized brands, and operations in the United States, Canada, Europe and The People's Republic of China, Met-Pro’s solutions, products and systems are sold to a well-diversified cross-section of customers and markets around the world. 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 Statements of Income
(unaudited)

       Three Months Ended   Six Months Ended  
     
July 31,
  
July 31,
  
     
2010
  
2009
  
2010
  
2009
  
 
Net sales
  
$21,436,886
  
$20,885,583
  
$43,713,963
  
$40,526,591
  
 
Cost of goods sold
  
13,593,734
  
13,779,630
  
27,889,272
  
26,407,670
  
 
Gross profit
  
7,843,152
  
7,105,953
  
15,824,691
  
14,118,921
  
                     
 
Operating expenses
          
 
      
 
Selling
  
2,766,920
  
2,520,401
  
5,699,817
  
5,048,933
  
 
General and administrative
  
2,769,202
  
2,815,950
  
5,714,804
  
5,828,277
  
     
5,536,122
  
5,336,351
  
11,414,621
  
10,877,210
  
 
Income from operations
  
2,307,030
  
1,769,602
  
4,410,070
  
3,241,711
  
                     
 
Interest expense
  
(27,176
)
(53,632
)
(109,686
)
(107,455
)
 
Other income, net
  
72,765
  
62,787
  
190,233
  
76,752
  
 
Income before taxes
  
2,352,619
  
1,778,757
  
4,490,617
  
3,211,008
  
                     
 
Provision for taxes
  
799,889
  
595,889
  
1,526,809
  
1,075,691
  
                     
 
Net income
  
$1,552,730
  
$1,182,868
  
$2,963,808
  
$2,135,317
  
                     
 
Basic earnings per share
  
$.11
  
$.08
  
$.20
  
$.15
  
 
Diluted earnings per share
  
$.11
  
$.08
  
$.20
  
$.15
  
                     
 
Average common shares outstanding:
                  
 
Basic shares
  
14,619,443
  
14,600,109
  
14,619,614
  
14,600,109
  
 
Diluted shares
  
14,702,134
  
14,660,511
  
14,709,756
  
14,672,811
  
 


 

 

 

 
 
 

 

 

 

 
 

 

 




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

     
July 31,
2010
  
January 31,
2010
  
 
Assets
  
(unaudited)
      
 
Current assets
          
 
Cash and cash equivalents
  
$34,224,143
  
$31,387,108
  
 
Accounts receivable, net of allowance for
          
 
doubtful accounts of approximately
          
 
$174,000 and $204,000, respectively
  
14,882,841
  
14,011,950
  
 
Inventories
  
14,895,658
  
16,136,521
  
 
Prepaid expenses, deposits and other current assets
  
1,191,695
  
1,709,664
  
 
Total current assets
  
65,194,337
  
63,245,243
  
             
 
Property, plant and equipment, net
  
19,316,335
  
19,860,751
  
 
Goodwill
  
20,798,913
  
20,798,913
  
 
Other assets
  
915,896
  
703,452
  
 
Total assets
  
$106,225,481
  
$104,608,359
  
             
             
 
Liabilities and shareholders’ equity
          
 
Current liabilities
          
 
Current portion of long-term debt
  
$713,713
  
$534,251
  
 
Accounts payable
  
4,765,775
  
4,297,936
  
 
Accrued salaries, wages and expenses
  
3,914,209
  
3,425,691
  
 
Dividend payable
  
877,220
  
876,279
  
 
Customers’ advances
  
646,168
  
882,637
  
 
Deferred income taxes
  
181,253
  
181,253
  
 
Total current liabilities
  
11,098,338
  
10,198,047
  
             
 
Long-term debt
  
3,323,571
  
3,536,755
  
 
Other non-current liabilities
  
8,014,124
  
8,179,410
  
 
Deferred income taxes
  
1,677,605
  
1,716,563
  
 
Total liabilities
  
24,113,638
  
23,630,775
  
             
 
Shareholders’ equity
          
 
Common shares, $.10 par value; 36,000,000 shares
          
 
authorized, 15,928,679 shares issued, of which
          
 
1,308,333 and 1,311,664 shares were reacquired
          
 
and held in treasury at the respective dates
  
1,592,868
  
1,592,868
  
 
Additional paid-in capital
  
3,319,943
  
2,988,950
  
 
Retained earnings
  
91,871,467
  
90,662,820
  
 
Accumulated other comprehensive loss
  
(4,063,050
)
(3,679,641
)
 
Treasury shares, at cost
  
(10,609,385
)
(10,587,413
)
 
Total shareholders’ equity
  
82,111,843
  
80,977,584
  
 
Total liabilities and shareholders’ equity
  
$106,225,481
  
$104,608,359
  
 

 

 

 

 




Continued Page 5
 
Met-Pro Corporation/Page 5
 
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)

   
Three Months Ended
July 31,
   Six Months Ended
July 31,
  
   
2010
  
2009
  
        2010
  
        2009
  
 
Net sales
                
 
Product Recovery/Pollution Control Technologies
$9,707,182
  
$10,318,060
  
$20,720,407
  
$17,888,042
  
 
Fluid Handling Technologies
6,508,959
  
5,731,503
  
13,039,530
  
12,709,965
  
 
Mefiag Filtration Technologies
2,508,470
  
1,991,682
  
4,942,719
  
4,478,932
  
 
Filtration/Purification Technologies
2,712,275
  
2,844,338
  
5,011,307
  
5,449,652
  
   
$21,436,886
  
$20,885,583
  
$43,713,963
  
$40,526,591
  
                   
 
Income (loss) from operations
                
 
Product Recovery/Pollution Control Technologies
$642,236
  
$903,152
  
$1,158,397
  
$1,048,355
  
 
Fluid Handling Technologies
1,314,468
  
971,076
  
2,603,264
  
2,277,081
  
 
Mefiag Filtration Technologies
163,446
  
(143,031
)
369,965
  
(158,434
)
 
Filtration/Purification Technologies
186,880
  
38,405
  
278,444
  
74,709
  
   
$2,307,030
  
$1,769,602
  
$4,410,070
  
$3,241,711
  
                   
           
 July 31,
 2010
  
January 31,
2010
  
 
Identifiable assets
                
 
Product Recovery/Pollution Control Technologies
        
$33,398,737
  
$34,466,168
  
 
Fluid Handling Technologies
        
17,282,063
  
18,068,428
  
 
Mefiag Filtration Technologies
        
12,752,807
  
12,257,281
  
 
Filtration/Purification Technologies
        
8,271,502
  
8,257,837
  
           
71,705,109
  
73,049,714
  
 
Corporate
        
34,520,372
  
31,558,645
  
           
$106,225,481
  
$104,608,359
  





 


 












 

 

 

 


Continued Page 6
 
Met-Pro Corporation/Page 6
 
Met-Pro Corporation
Consolidated Statements of Cash Flows
(unaudited)

      Six Months Ended July 31,  
     
2010
  
2009
  
             
 
Cash flows from operating activities
          
 
Net income
  
$2,963,808
  
$2,135,317
  
 
Adjustments to reconcile net income to net
          
 
  cash provided by operating activities:
          
 
Depreciation and amortization
  
882,993
  
980,752
  
 
Deferred income taxes
  
(1,203
)
(1,195
)
 
(Gain)/loss on sales of property and equipment, net
  
668
  
(13,695
)
 
Stock-based compensation
  
322,944
  
329,753
  
 
Allowance for doubtful accounts
  
(29,709
)
71,397
  
 
Changes in operating assets and liabilities:
          
 
Accounts receivable
  
(875,673
)
6,484,484
  
 
Inventories
  
1,151,115
  
2,250,735
  
 
Prepaid expenses, deposits and other assets
  
282,742
  
425,126
  
 
Accounts payable and accrued expenses
  
897,029
  
(2,768,636
)
 
Customers’ advances
  
(237,335
)
(4,960
)
 
Other non-current liabilities
  
(165,287
)
212,557
  
             
 
Net cash provided by operating activities
  
5,192,092
  
10,101,635
  
             
 
Cash flows from investing activities
          
 
Proceeds from sales of property and equipment
  
–
  
20,382
  
 
Acquisitions of property and equipment
  
(527,064
)
(1,262,800
)
             
 
Net cash used in investing activities
  
(527,064
)
(1,242,418
)
             
 
Cash flows from financing activities
          
 
Proceeds from new borrowing
  
189,074
  
485,336
  
 
Reduction of debt
  
(263,430
)
(238,287
)
 
Exercise of stock options
  
252,924
  
–
  
 
Payment of dividends
  
(1,754,220
)
(1,752,013
)
 
Purchase of treasury shares
  
(266,847
)
–
  
             
 
Net cash used in financing activities
  
(1,842,499
)
(1,504,964
)
 
Effect of exchange rate changes on cash
  
14,506
  
91,087
  
             
 
Net increase in cash and cash equivalents
  
2,837,035
  
7,445,340
  
             
 
Cash and cash equivalents at February 1
  
31,387,108
  
21,749,653
  
             
 
Cash and cash equivalents at July 31
 
$34,224,143
  
$29,194,993
  



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