MPR Met-Pro Corp.

HARLEYSVILLE, Pa., May 22 /PRNewswire-FirstCall/ -- Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE:MPR), today announced the Company's financial results for the first quarter ended April 30, 2007. Sales for the first quarter ended April 30, 2007 were $21.9 million, which was 11% above last year's first quarter sales of $19.8 million. Net income for the first quarter ended April 30, 2007 totaled $3.9 million compared with $1.2 million for the same period last year. Excluding the net gain of approximately $2.2 million on the sale of property previously associated with the Company's Sethco business unit in Hauppauge, New York, Met-Pro's adjusted net income was $1.7 million in the first quarter ended April 30, 2007, an increase of 38% over the first quarter of last year. Basic and diluted earnings per share for the first quarter ended April 30, 2007 were $0.35 and $0.34, respectively, compared with $0.11 earned during last year's first quarter. Excluding the net gain on the sale of property, Met-Pro's adjusted basic and diluted earnings per share were each $0.15 compared with $0.11 for the first quarter of last year, an increase of 36%. The Company's backlog of orders as of April 30, 2007 totaled a record high $30.0 million compared with $21.5 million as of April 30, 2006, an increase of 40%. Substantially the entire backlog that existed as of April 30, 2007 is expected to be shipped during the current fiscal year. "We are pleased with the results for the first quarter," said De Hont. "Our quotation activity remains high and we continue to achieve solid bookings. The record high $30.0 million backlog at the end of the first quarter serves as a solid base for future sales growth. The combination of a strong quality backlog and continued steady quotation activity gives us confidence regarding our prospects for the second quarter and the full fiscal year." The Board of Directors, at their meeting on April 4, 2007, declared a quarterly dividend of $0.0675 per share payable June 12, 2007 to shareholders of record at the close of business on May 29, 2007. This represents an 8.0% increase over the same period last year. This is the thirty-second consecutive year the Company has paid a cash or stock dividend. 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 as one of America's "200 Best Small Companies" by Forbes magazine. Through its divisions and subsidiaries, in four states, Canada, Europe and The People's Republic of China, a wide range of products and services are offered for industrial, commercial, and residential markets. These include Product Recovery and Pollution Control Technologies for purification of air and liquids; Fluid Handling Technologies for corrosive, abrasive and high temperature liquids; and Filtration and Purification Technologies including proprietary water treatment chemicals and filter products. For more information, please visit http://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 press 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 Web site at http://www.met-pro.com/. Contact: Investor Contact: Gary J. Morgan, Senior Vice President of Finance, CFO 215-723-6751, Met-Pro Corporation Consolidated Statement of Operations (unaudited) Three Months Ended April 30, 2007 2006 Net sales $21,916,609 $19,779,041 Cost of goods sold 14,997,082 13,923,682 Gross profit 6,919,527 5,855,359 Operating expenses (income) Selling 2,069,877 1,896,179 General and administrative 2,483,853 2,358,513 Gain on sale of building (3,513,940) - 1,039,790 4,254,692 Income from operations 5,879,737 1,600,667 Interest expense (80,152) (59,805) Other income, net 217,306 234,798 Income before taxes 6,016,891 1,775,660 Provision for taxes 2,138,648 568,212 Net income $3,878,243 $1,207,448 Basic earnings per share $.35 $.11 Diluted earnings per share $.34 $.11 Average common shares outstanding: Basic shares 11,220,577 11,199,599 Diluted shares 11,468,767 11,439,813 Met-Pro Corporation Consolidated Balance Sheet (unaudited) April 30, January 31, 2007 2007 Assets Current assets Cash and cash equivalents $24,354,204 $17,322,194 Marketable securities 27,897 24,090 Accounts receivable, net of allowance for doubtful accounts of approximately $156,000 and $133,000, respectively 20,197,550 20,837,589 Inventories 20,613,149 19,296,279 Prepaid expenses, deposits and other current assets 1,717,692 1,748,130 Total current assets 66,910,492 59,228,282 Property, plant and equipment, net 16,114,947 16,832,988 Costs in excess of net assets of business acquired, net 20,798,913 20,798,913 Other assets 300,022 306,403 Total assets $104,124,374 $97,166,586 Liabilities and shareholders' equity Current liabilities Current portion of long-term debt $1,979,722 $1,955,202 Accounts payable 6,699,695 6,450,813 Accrued salaries, wages and expenses 4,909,644 4,135,342 Dividend payable 757,389 757,029 Customers' advances 2,892,004 981,680 Deferred income taxes 242,457 245,231 Total current liabilities 17,480,911 14,525,297 Long-term debt 5,034,456 5,417,990 Other non-current liabilities 3,317,132 3,276,551 Deferred income taxes 2,290,532 1,369,591 Total liabilities 28,123,031 24,589,429 Shareholders' equity Common shares, $.10 par value; 18,000,000 shares authorized, 12,846,608 shares issued, of which 1,626,031 and 1,631,364 shares were reacquired and held in treasury at the respective dates 1,284,661 1,284,661 Additional paid-in capital 8,039,875 7,910,708 Retained earnings 77,917,406 74,921,913 Accumulated other comprehensive income (loss) 228,458 (33,471) Treasury shares, at cost (11,469,057) (11,506,654) Total shareholders' equity 76,001,343 72,577,157 Total liabilities and shareholders' equity $104,124,374 $97,166,586 Met-Pro Corporation Consolidated Business Segment Data (unaudited) Three Months Ended April 30, 2007 2006 Net sales Product recovery/pollution control technologies $10,546,886 $9,298,349 Fluid handling technologies 6,054,072 5,917,494 Filtration/purification technologies 5,315,651 4,563,198 $21,916,609 $19,779,041 Income from operations Product recovery/pollution control technologies $913,060 $566,714 Fluid handling technologies 1,163,314 695,544 Filtration/purification technologies 289,423 338,409 2,365,797 1,600,667 Gain on sale of building 3,513,940 - $5,879,737 $1,600,667 April 30, January 31, 2007 2007 Identifiable assets Product recovery/pollution control technologies $34,810,198 $35,332,252 Fluid handling technologies 20,968,230 21,667,719 Filtration/purification technologies 20,822,904 20,514,339 76,601,332 77,514,310 Corporate 27,523,042 19,652,276 $104,124,374 $97,166,586 Met-Pro Corporation Consolidated Statement of Cash Flows (unaudited) Three Months Ended April 30, 2007 2006 Increase (Decrease) in Cash and Cash Equivalents Cash flows from operating activities Net income $3,878,243 $1,207,448 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 417,784 370,964 Deferred income taxes 904,929 (553) (Gain) on sale of property and equipment, net (3,513,998) (4,410) Stock-based compensation 127,527 81,800 Allowance for doubtful accounts 23,302 (79,003) (Increase) decrease in operating assets: Accounts receivable 761,011 1,740,117 Inventories (1,214,553) (1,147,983) Prepaid expenses, deposits and other current assets 44,199 86,777 Other assets (1,935) (2,250) Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 787,810 (1,072,742) Customers' advances 1,908,041 262,518 Other non-current liabilities 40,581 549 Net cash provided by operating activities 4,162,941 1,443,232 Cash flows from investing activities Proceeds from sale of property and equipment 4,342,598 4,410 Acquisitions of property and equipment (354,559) (2,227,748) Net cash provided by (used in) investing activities 3,988,039 (2,223,338) Cash flows from financing activities Proceeds from new borrowing - 3,602,921 Reduction of debt (367,235) (330,508) Exercise of stock options 39,238 55,232 Payment of dividends (757,390) (699,820) Net cash provided by (used in) financing activities (1,085,387) 2,627,825 Effect of exchange rate changes on cash (33,583) 29,778 Net increase in cash and cash equivalents 7,032,010 1,877,497 Cash and cash equivalents at February 1 17,322,194 17,683,305 Cash and cash equivalents at April 30 $24,354,204 $19,560,802 Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure This press 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 to 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 press 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 press 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 first quarters ended April 30, 2007 and 2006: Met-Pro Corporation Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure (unaudited) Three Months Ended April 30, 2007 2006 Income before tax as reported $6,016,891 $1,775,660 Less: Gain on sale of building (3,513,940) - Adjusted income before tax $2,502,951 $1,775,660 Net income as reported $3,878,243 $1,207,448 Less: Gain on sale of building (2,213,782) - Adjusted net income $1,664,461 $1,207,448 Basic earnings per share as reported $.35 $.11 Adjusted basic earnings per share $.15 $.11 Diluted earnings per share as reported $.34 $.11 Adjusted diluted earnings per share $.15 $.11 Average common shares outstanding: Basic shares 11,220,577 11,199,599 Diluted shares 11,468,767 11,439,813 DATASOURCE: Met-Pro Corporation CONTACT: Gary J. Morgan, Senior Vice President of Finance, CFO of Met-Pro Corporation, +1-215-723-6751, Web site: http://www.met-pro.com/

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