EX-99.1 2 mpr8k20120906ex991.htm RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JULY 31, 2012 mpr8k20120906ex991.htm
Exhibit 99.1
 
Date: September 6, 2012  
For Release: Immediate  
Contact:
Investor Contact:
  
 
Neal E. Murphy
Joseph Hassett, SVP
 
Vice President of Finance, CFO
Gregory FCA Communications
 
215-723-6751
610-228-2110

Met-Pro Corporation Announces Second Quarter Financial Results 
 
Net Sales Grow 21%, Orders Growth Leads to 29% Backlog Increase

 
Harleysville, PA, September 6, 2012 – Met-Pro Corporation (NYSE: MPR-News) today announced the Company’s financial results for the second quarter ended July 31, 2012.
 
Net sales for the second quarter ended July 31, 2012 were $28.0 million, an increase of 21% compared with net sales of $23.1 million for the same quarter last year. Net income for the second quarter ended July 31, 2012 was $1.6 million, or $0.11 per diluted share, compared with net income of $1.5 million, or $0.10 per diluted share, for the same period last year.
 
New orders for the second quarter were $31.5 million, a 7% increase when compared with $29.5 million for the second quarter last year. As a result, the Company’s backlog of orders increased by $3.5 million for the quarter and totaled $33.9 million as of July 31, 2012, an increase of 29% when compared with $26.3 million at the same point last year. The vast majority of the July 31, 2012 backlog is expected to be shipped during the current fiscal year.
 
“The significant increase in revenues and growth in bookings and backlog in the quarter are strong indicators that our marketing strategy has been effective in increasing share in our targeted end markets,” stated Raymond J. De Hont, Chairman and Chief Executive Officer. “Each of our business segments contributed to the strong top line growth, with three of our business segments generating operating profits that led to a 10% increase in earnings in the quarter compared with the same period a year ago. Somewhat offsetting these achievements were results in our Product Recovery/Pollution Control Technologies segment, wherein weaker margins on a small number of contracts led to a decrease in both segment and consolidated gross margins in the quarter. We are encouraged by our success penetrating new markets and expanding our customer base. By continuing to strengthen our organization, we will be able to more effectively leverage this increasing market success to improve returns. The strong interest in our products, together with our solid backlog, allows us to remain optimistic about our future prospects.”
 
Net sales for the six months ended July 31, 2012 were $53.2 million compared with $46.5 million for the same period last year, an increase of 14%. Net income for the first half ended July 31, 2012 totaled $2.9 million, or $0.20 per fully diluted share, both essentially unchanged from the first half of last fiscal year. New order bookings for the six months ended July 31, 2012 were up 6% to $58.5 million compared with $55.1 million for the same period last year.
 
On June 15, 2012, the Company paid a quarterly dividend of $0.071 per share to shareholders of record at the close of business on June 1, 2012. In addition, the Board of Directors, at their meeting on June 6, 2012, declared a quarterly dividend of $0.071 per share payable September 14, 2012 to shareholders of record at the close of business on August 31, 2012. This is the twenty-first consecutive year that Met-Pro Corporation has paid a cash dividend.
 
Mr. De Hont and Neal E. Murphy, Vice President of Finance and Chief Financial Officer, will hold a conference call for investors today, September 6, 2012, 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/news/news-releases prior to the beginning of the conference call.
Continued Page 2
Met-Pro Corporation/Page 2
 
 
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 17040712) 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 20, 2012. 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 17040712.
 
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, fluid handling and filtration solutions. The Company’s diverse and synergistic solutions and products address the world’s growing need for clean air and water, reduced energy consumption and improved operating efficiencies. Through its global sales organization, internationally recognized brands, and operations in North America, South America, 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. You should carefully consider the factors discussed in Part I, “Item 1A Risk Factors” in our Annual Report on Form 10-K/A for the year ended January 31, 2012 as filed with the Securities and Exchange Commission.
 
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
July 31,
  
Six Months Ended
   July 31,
   
2012
  
2011
  
2012
  
2011
  
 
Net sales
$27,997,242
  
$23,089,343
  
$53,204,303
  
$46,519,246
  
 
Cost of goods sold
19,299,138
  
14,952,362
  
35,555,673
  
30,324,060
  
 
Gross profit
8,698,104
  
8,136,981
  
17,648,630
  
16,195,186
  
                   
 
Operating expenses
                
 
Selling
3,029,372
  
2,924,062
  
6,088,953
  
5,840,188
  
 
General and administrative
3,248,591
  
2,990,426
  
7,392,680
  
6,049,529
  
 
Total selling, general and administrative
6,277,963
  
5,914,488
  
13,481,633
  
11,889,717
  
 
Income from operations
2,420,141
  
2,222,493
  
4,166,997
  
4,305,469
  
                   
 
Interest expense
(41,863
)
(49,908
)
(84,398
)
(98,709
)
 
Other income
49,747
  
85,344
  
95,672
  
191,330
  
 
Income before taxes
2,428,025
  
2,257,929
  
4,178,271
  
4,398,090
  
                   
 
Provision for taxes
808,026
  
767,695
  
1,299,574
  
1,495,349
  
                   
 
Net income
1,619,999
  
$1,490,234
  
$2,878,697
  
$2,902,741
  
                   
 
Basic earnings per share
$.11
  
$.10
  
$.20
  
$.20
  
 
Diluted earnings per share
$.11
  
$.10
  
$.20
  
$.20
  
                   
 
Average common shares outstanding:
                
 
Basic shares
14,679,746
  
14,659,281
  
14,681,423
  
14,659,331
  
 
Diluted shares
14,739,548
  
14,833,239
  
14,736,153
  
14,824,680
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continued Page 4
Met-Pro Corporation/Page 4
 
Met-Pro Corporation
Consolidated Balance Sheets

     
July 31,
2012
   January 31,
2012
 
 
Assets
   (unaudited)      
 
Current assets
          
 
Cash and cash equivalents
  
$31,173,910
  
$34,581,394
  
 
Short-term investments
  
1,022,266
  
764,061
  
 
Accounts receivable, net of allowance for
          
 
doubtful accounts of approximately
          
 
$393,000 and $491,000, respectively
  
17,782,160
  
17,373,121
  
 
Inventories
  
17,927,911
  
17,847,143
  
 
Prepaid expenses, deposits and other current assets
  
2,122,429
  
1,683,486
  
 
Deferred income taxes
  
186,111
  
186,329
  
 
Total current assets
  
70,214,787
  
72,435,534
  
             
 
Property, plant and equipment, net
  
18,905,209
  
19,322,436
  
 
Goodwill
  
20,798,913
  
20,798,913
  
 
Other assets
  
2,859,678
  
2,952,332
  
 
Total assets
  
$112,778,587
  
$115,509,215
  
             
             
 
Liabilities and shareholders’ equity
          
 
Current liabilities
          
 
Current portion of debt
  
$569,963
  
$657,216
  
 
Accounts payable
  
7,371,543
  
7,684,739
  
 
Accrued salaries, wages and benefits
  
1,799,692
  
1,827,603
  
 
Other accrued expenses
  
2,625,231
  
2,357,929
  
 
Dividend payable
  
1,043,876
  
1,042,297
  
 
Customers’ advances
  
1,441,639
  
3,232,600
  
 
Total current liabilities
  
14,851,944
  
16,802,384
  
             
 
Long-term debt
  
2,477,041
  
2,687,971
  
 
Accrued pension retirement benefits
  
9,196,595
  
10,618,047
  
 
Other non-current liabilities
  
57,489
  
56,391
  
 
Deferred income taxes
  
1,314,255
  
1,522,451
  
 
Total liabilities
  
27,897,324
  
31,687,244
  
 
Commitments and contingencies
          
 
Shareholders’ equity
          
 
Common shares, $.10 par value; 36,000,000 shares
          
 
authorized, 15,928,679 shares issued, of which
          
 
1,241,666 and 1,250,051 shares were reacquired
          
 
and held in treasury
  
1,592,868
  
1,592,868
  
 
Additional paid-in capital
  
4,582,952
  
4,058,735
  
 
Retained earnings
  
97,020,326
  
96,228,764
  
 
Accumulated other comprehensive loss
  
(8,044,714
)
(7,718,883
)
 
Treasury shares, at cost
  
(10,270,169
)
(10,339,513
)
 
Total shareholders’ equity
  
84,881,263
  
83,821,971
  
 
Total liabilities and shareholders’ equity
  
$112,778,587
  
$115,509,215
  
 
 
 
 
 
 
 
 
 
 
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,
  
 
2012
  
2011
  
2012
  
2011
  
Net sales
                
Product Recovery/Pollution Control Technologies
$13,193,396
  
$9,625,898
  
$23,694,236
  
$17,957,870
  
Fluid Handling Technologies
8,315,307
  
7,407,151
  
17,715,506
  
16,960,255
  
Mefiag Filtration Technologies
3,523,165
  
3,204,384
  
6,375,331
  
6,344,301
  
Filtration/Purification Technologies
2,965,374
  
2,851,910
  
5,419,230
  
5,256,820
  
 
$27,997,242
  
$23,089,343
  
$53,204,303
  
$46,519,246
  
                 
Income (loss) from operations
                
Product Recovery/Pollution Control Technologies
($469,167
)
($49,043
)
($912,229
)
($529,328
)
Fluid Handling Technologies
2,363,288
  
1,901,703
  
4,747,658
  
4,142,399
  
Mefiag Filtration Technologies
367,901
  
169,078
  
295,813
  
390,550
  
Filtration/Purification Technologies
158,119
  
200,755
  
35,755
  
301,848
  
 
$2,420,141
  
$2,222,493
  
$4,166,997
  
$4,305,469
  
                 
         
July 31,
2012
  
January 31,
2012
  
Identifiable assets
                
Product Recovery/Pollution Control Technologies
        
$37,284,193
  
$36,444,763
  
Fluid Handling Technologies
        
18,815,811
  
19,290,035
  
Mefiag Filtration Technologies
        
14,916,983
  
14,017,572
  
Filtration/Purification Technologies
        
8,419,428
  
8,368,652
  
         
79,436,415
  
78,121,022
  
Corporate
        
33,342,172
  
37,388,193
  
         
$112,778,587
  
$115,509,215
  

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

        Six Months Ended July 31,
  
        2012   2011
 
               
 
Cash flows from operating activities
            
 
Net income
    
$2,878,697
  
$2,902,741
  
 
Adjustments to reconcile net income to net
  cash (used in) provided by operating activities:
            
 
Depreciation and amortization
    
989,865
  
955,777
  
 
Stock-based compensation
    
593,561
  
359,652
  
 
Deferred income taxes
    
(209,897
)
(1,212
)
 
Loss/(gain) on sale of property and equipment, net
    
1,080
  
(27,496
)
 
Allowance for doubtful accounts
    
(98,479
)
57,456
  
 
Changes in operating assets and liabilities:
            
 
Accounts receivable
    
(425,173
)
(1,357,446
)
 
Inventories
    
(219,103
)
(1,379,911
)
 
Prepaid expenses, deposits and other assets
    
(695,430
)
(162,928
)
 
Accounts payable and accrued expenses
    
(2,972
)
1,650,817
  
 
Customers’ advances
    
(1,788,386
)
372,567
  
 
Accrued pension retirement benefits
    
(1,421,452
)
(2,751,787
)
 
Other non-current liabilities
    
1,098
  
1,098
  
               
 
Net cash (used in) provided by operating activities
    
(396,591
)
619,328
  
               
 
Cash flows from investing activities
            
 
Proceeds from sale of property and equipment
    
–
  
33,990
  
 
Acquisitions of property and equipment
    
(678,364
)
(918,049
)
 
Purchase of investments
    
(1,022,266
)
(1,010,534
)
 
Proceeds from maturities of investments
    
1,012,123
  
497,155
  
               
 
Net cash used in investing activities
    
(688,507
)
(1,397,438
)
               
 
Cash flows from financing activities
            
 
Proceeds from new borrowings
    
223,454
  
407,759
  
 
Reduction of debt
    
(470,326
)
(385,819
)
 
Exercise of stock options
    
–
  
42,800
  
 
Payment of dividends
    
(2,085,556
)
(1,934,975
)
 
Purchase of treasury shares
    
–
  
(42,800
)
               
 
Net cash used in financing activities
    
(2,332,428
)
(1,913,035
)
 
Effect of exchange rate changes on cash
    
10,042
  
11,572
  
               
 
Net decrease in cash and cash equivalents
    
(3,407,484
)
(2,679,573
)
               
 
Cash and cash equivalents at February 1
    
34,581,394
  
32,400,814
  
               
 
Cash and cash equivalents at July 31
 
  
$31,173,910
  
$29,721,241
  


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