EX-99.1 2 mpr8k20110317ex991.htm PRESS RELEASE DATED MARCH 17, 2011 mpr8k20110317ex991.htm


Date:
March 17, 2011
  
For Release:
Immediate
  
Contact:
Investor Contact:
  
 
Gary J. Morgan,
Joseph Hassett, SVP
 
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
 
●    Net Income up 37% Versus Last Year’s Fourth Quarter
 
Harleysville, PA, March 17, 2011 – 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, 2011.
 
Net sales for the fourth quarter ended January 31, 2011 were up 20% to $23.8 million compared with $19.8 million for the fourth quarter last year. Net income totaled $1.8 million and diluted earnings per share were $0.12 for the fourth quarter, compared with net income of $1.3 million and diluted earnings per share of $0.09 for the same period last year, increases of 37% and 33%, respectively.
 
New order bookings for the fourth quarter were up 15% to $20.7 million compared with $18.0 million for the fourth quarter last year.
 
“I am pleased to report a good finish to fiscal year 2011, with strong top and bottom line growth in the quarter as well as solid new bookings sustaining our momentum heading into the new fiscal year,” stated De Hont. “The performance of our Product Recovery/Pollution Control Technologies and Fluid Handling Technologies reporting segments, each of which achieved better than 20% revenue growth in the quarter, are not only signs of an emerging recovery across our various markets, but more importantly illustrates the success of our sales and marketing strategy, including currently investing in additional sales staff to provide future sales growth.”
 
Net sales for the fiscal year ended January 31, 2011 were up 11% to $88.9 million compared with $80.1 million for the same period last year. Net income totaled $6.1 million and diluted earnings per share were $0.42 for the fiscal year ended January 31, 2011 compared with net income of $4.4 million and diluted earnings per share of $0.30 for the same period last year, increases of 38% and 40%, respectively.”
 
New order bookings for the fiscal year ended January 31, 2011 were up 10% to $89.9 million compared with $81.8 million for the prior fiscal year.
 
The Company’s cash balance increased to $32.4 million as of January 31, 2011. This increase resulted from $8.6 million of cash flows generated from operating activities, which was offset by increasing the dividend payment to shareholders, acquiring assets including patents and technology of Bio-Reaction Industries LLC, fully funding capital projects and continuing the ongoing research and development projects.
 
“During the fiscal year ended January 31, 2011, we continued to sustain gross margins and operating margins at the highest levels of the past few years despite rising commodity prices by increasingly leveraging the efficiency and cost reduction initiatives implemented throughout the organization,” added De Hont. “As a result, 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. We remain confident that Met-Pro is ideally positioned to leverage our strong financial position to capitalize on the continuing global economic recovery in which there is rising demand for our extensive portfolio of energy-efficient, environmentally-friendly and productivity enhancing solutions and products.”
 
Continued Page 2
 
Met-Pro Corporation/Page 2
 
The Board of Directors increased the quarterly dividend by 10% from $0.06 to $0.066 per share in the third quarter. This equates to $0.264 per share on an annualized basis. On January 5, 2011, the Company’s Board of Directors declared a quarterly dividend of $0.066 per share payable on March 17, 2011 to shareholders of record at the close of business on March 3, 2011. This is the thirty-sixth 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, March 17, 2011, 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 47210381) 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 31, 2011. 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 47210381.
 
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

 
   
Three Months Ended
  
Fiscal Year Ended
  
   
January 31,
  
January 31,
  
   
2011
  
2010
  
2011
  
2010
  
 
Net sales
$23,766,789
  
$19,798,121
  
$88,865,426
  
$80,132,493
  
 
Cost of goods sold
15,108,416
  
13,217,027
  
56,587,326
  
52,755,941
  
 
Gross profit
8,658,373
  
6,581,094
  
32,278,100
  
27,376,552
  
                   
 
Operating expenses
                
 
Selling
3,125,232
  
2,326,140
  
11,674,270
  
9,741,528
  
 
General and administrative
3,154,792
  
2,522,511
  
11,633,509
  
11,122,469
  
   
6,280,024
  
4,848,651
  
23,307,779
  
20,863,997
  
 
Income from operations
2,378,349
  
1,732,443
  
8,970,321
  
6,512,555
  
                   
 
Interest expense
(52,583
)
(57,694
)
(212,470)
  
(224,143
)
 
Other income, net
153,212
  
121,736
  
362,046
  
260,177
  
 
Income before taxes
2,478,978
  
1,796,485
  
9,119,897
  
6,548,589
  
                   
 
Provision for taxes
722,853
  
516,821
  
2,980,765
  
2,108,778
  
                   
 
Net income
$1,756,125
  
$1,279,664
  
$6,139,132
  
$4,439,811
  
                   
 
Basic earnings per share
$.12
  
$.09
  
$.42
  
$.30
  
 
Diluted earnings per share
$.12
  
$.09
  
$.42
  
$.30
  
                   
 
Average common shares outstanding:
                
 
Basic shares
14,626,398
  
14,601,259
  
14,629,215
  
14,602,276
  
 
Diluted shares
14,753,975
  
14,676,349
  
14,758,659
  
14,675,735
  

 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

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

 
   
January 31,
2011
  
January 31,
2010
  
Assets
          
Current assets
          
Cash and cash equivalents
  
$32,400,814
  
$30,662,104
  
Short-term investments
  
497,155
  
725,004
  
Accounts receivable, net of allowance for
          
doubtful accounts of approximately $444,000 and
          
$204,000, respectively
  
15,311,322
  
14,011,950
  
Inventories
  
15,474,430
  
16,136,521
  
Prepaid expenses, deposits and other current assets
  
1,578,176
  
1,709,664
  
    Deferred income taxes
  
84,155
  
–
  
Total current assets
  
65,346,052
  
63,245,243
  
           
Property, plant and equipment, net
  
19,863,031
  
19,860,751
  
Goodwill
  
20,798,913
  
20,798,913
  
Other assets
  
2,038,332
  
703,452
  
Total assets
  
$108,046,328
  
$104,608,359
  
           
           
Liabilities and shareholders’ equity
          
Current liabilities
          
Current portion of long-term debt
  
$532,540
  
$534,251
  
Accounts payable
  
4,864,724
  
4,297,936
  
Accrued salaries, wages and benefits
  
1,650,314
  
1,020,383
  
Other accrued expenses
  
2,286,043
  
2,405,308
  
Dividend payable
  
967,445
  
876,279
  
Customers’ advances
  
907,107
  
882,637
  
Deferred income taxes
  
–
  
181,253
  
Total current liabilities
  
11,208,173
  
10,198,047
  
           
Long-term debt
  
3,011,988
  
3,536,755
  
Accrued pension retirement benefits
  
6,553,262
  
8,127,412
  
Other non-current liabilities
  
54,195
  
51,998
  
Deferred income taxes
  
2,745,786
  
1,716,563
  
Total liabilities
  
23,573,404
  
23,630,775
  
           
Shareholders’ equity
          
Common shares, $.10 par value; 36,000,000 shares
          
authorized, 15,928,679 shares issued, of which
          
1,270,417 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
  
3,448,249
  
2,988,950
  
Retained earnings
  
93,113,247
  
90,662,820
  
Accumulated other comprehensive loss
  
(3,201,767
)
(3,679,641
)
Treasury shares, at cost
  
(10,479,673
)
(10,587,413
)
Total shareholders’ equity
  
84,472,924
  
80,977,584
  
Total liabilities and shareholders’ equity
  
$108,046,328
  
$104,608,359
  


 

 

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

   
Three Months Ended
  
Fiscal Year Ended
  
    January 31,   January 31,  
   
2011
  
2010
  
        2011
  
        2010
  
 
Net sales
                
 
Product Recovery/Pollution Control Technologies
$11,502,070
  
$8,999,225
  
$41,426,858
  
$35,899,630
  
 
Fluid Handling Technologies
7,417,933
  
6,036,695
  
27,488,559
  
24,527,998
  
 
Mefiag Filtration Technologies
2,475,663
  
2,545,181
  
9,897,038
  
9,526,908
  
 
Filtration/Purification Technologies
2,371,123
  
2,217,020
  
10,052,971
  
10,177,957
  
   
$23,766,789
  
$19,798,121
  
$88,865,426
  
$80,132,493
  
                   
  Income (loss) from operations                
 
Product Recovery/Pollution Control Technologies
$563,624
  
$313,684
  
$2,046,716
  
$1,924,005
  
 
Fluid Handling Technologies
1,760,066
  
1,215,678
  
5,926,592
  
4,325,853
  
 
Mefiag Filtration Technologies
(57,553
)
76,486
  
401,695
  
(34,886
)
 
Filtration/Purification Technologies
112,212
  
126,595
  
595,318
  
297,583
  
   
$2,378,349
  
$1,732,443
  
$8,970,321
  
$6,512,555
  
                   
           
January 31,
  
January 31,
  
           
2011
  
2010
  
 
Identifiable Assets
                
 
Product Recovery/Pollution Control Technologies
        
$34,003,251
  
$34,466,168
  
 
Fluid Handling Technologies
        
18,114,257
  
18,068,428
  
 
Mefiag Filtration Technologies
        
12,814,143
  
12,257,281
  
 
Filtration/Purification Technologies
        
8,369,385
  
8,257,837
  
           
73,301,036
  
73,049,714
  
 
Corporate
        
34,745,292
  
31,558,645
  
           
$108,046,328
  
$104,608,359
  

 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

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


 
Years Ended January 31,
  
 
2011
  
2010
  
         
Cash flows from operating activities
        
Net income
$6,139,132
  
$4,439,811
  
Adjustments to reconcile net income to net
  cash provided by operating activities:
        
Depreciation and amortization
1,824,685
  
1,931,512
  
Deferred income taxes
439,069
  
406,754
  
(Gain) loss on sales of property and equipment, net
8,231
  
(20,585
)
Stock-based compensation
645,891
  
645,967
  
Allowance for doubtful accounts
240,133
  
37,189
  
Changes in operating assets and liabilities:
        
Accounts receivable
(1,464,863
)
6,409,090
  
Inventories
676,071
  
4,280,330
  
Prepaid expenses, deposits and other assets
(243,598
)
(9,904
)
Accounts payable and accrued expenses
977,454
  
(2,551,921
)
Customers’ advances
22,004
  
524,678
  
Other non-current liabilities
(666,704
)
(447,208
)
         
Net cash provided by operating activities
8,597,505
  
15,645,713
  
         
Cash flows from investing activities
        
Proceeds from sales of property and equipment
36,387
  
40,318
  
Acquisitions of property and equipment
(1,665,949
)
(2,133,807
)
Purchase of investments
(745,218
)
(1,445,004
)
Proceeds of maturities of investments
725,004
  
720,000
  
Payment for acquisition of business
(955,268
)
–
  
         
Net cash (used in) investing activities
(2,605,044
)
(2,818,493
)
         
Cash flows from financing activities
        
Proceeds from new borrowings
189,074
  
485,336
  
Reduction of debt
(717,134
)
(926,497
)
Exercise of stock options
780,834
  
225,584
  
Payment of dividends
(3,597,539
)
(3,504,026
)
Purchase of treasury shares
(935,631
)
(251,612
)
         
Net cash (used in) financing activities
(4,280,396
)
(3,971,215
)
Effect of exchange rate changes on cash
26,645
  
56,446
  
         
Net increase in cash and cash equivalents
1,738,710
  
8,912,451
  
         
Cash and cash equivalents at beginning of year
30,662,104
  
21,749,653
  
         
Cash and cash equivalents at end of year
$32,400,814
  
$30,662,104
  


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