MPR Met-Pro Corp.

HARLEYSVILLE, Pa., Nov. 20 /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 third quarter ended October 31, 2007. Sales for the third quarter ended October 31, 2007 were the highest of any quarter in the Company's history, totaling $28.1 million compared with $25.3 million for the same quarter last year, an increase of 11%. Sales for the nine months ended October 31, 2007 were the highest of any first three quarters in the Company's history, totaling $77.6 million compared with $68.9 million for the same period last year, an increase of 13%. Net income for the third quarter ended October 31, 2007 was the highest of any quarter in the Company's history, excluding the first quarter of this fiscal year, which included a 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. Net income in the third quarter totaled $2.8 million compared with $2.2 million for the same quarter last year, an increase of 28%. For the nine months ended October 31, 2007, net income was the highest of any first three quarters in the Company's history, totaling $9.2 million compared with $5.2 million during the same period last year. Excluding the first quarter net gain on the sale of the Sethco property, Met-Pro's adjusted net income was the highest of any first three quarters in the Company's history, totaling $7.0 million compared with $5.2 million for the same period last year, an increase of 34%. Basic earnings per share for the third quarter ended October 31, 2007 were $0.19 per share compared with $0.15 per share for the third quarter of last year, an increase of 27%. Diluted earnings per share for the third quarter were $0.18 per share compared with $0.14 per share for the third quarter of last year, an increase of 29%. For the nine months ended October 31, 2007, basic and diluted earnings per share were $0.61 per share and $0.60 per share, respectively, compared with $0.35 per share and $0.34 per share, respectively, earned during last year's first three quarters. Excluding the first quarter net gain on the sale of the Sethco property, Met-Pro's adjusted basic and diluted earnings per share for the nine months ended October 31, 2007 were $0.47 per share and $0.46 per share, respectively, compared with $0.35 per share and $0.34 per share, respectively, for the same period last year, an increase of 34% and 35%. The Company's backlog of orders as of October 31, 2007 totaled $20.6 million compared with $24.7 million for the period ended October 31, 2006. Substantially the entire backlog that existed as of October 31, 2007 is expected to be shipped during the next six months. A four-for-three stock split was paid by the Company on November 14, 2007. All references in this release and in the financial statements to per share amounts and shares outstanding give effect to the stock split, except for the shares outstanding and shares held in treasury as of January 31, 2007 in the Shareholders' Equity section of the Consolidated Balance Sheet. In addition, as recently announced, Met-Pro Corporation will pay a quarterly cash dividend on December 10, 2007 to shareholders of record at the close of business on November 26, 2007 that represents a 9% increase over the prior quarter's dividend. This is the thirty-third consecutive year the Company has paid a cash or stock dividend. "We are very pleased with the record high results for the third quarter and the year-to-date," stated De Hont. "Our current backlog serves as a solid sales base for the fourth quarter. In combination with our steady quotation activity and strong October bookings, which were the highest monthly bookings year-to-date, it gives us continued optimism about our future prospects as well." Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and the Chief Financial Officer, will hold a conference call for investors today, November 20, 2007, 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 http://www.met-pro.com/html/invrel.htm prior to the beginning of the conference call. Interested persons who wish to hear the live web cast 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 22904771) 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 December 4, 2007. 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 22904771. 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, for the second consecutive year, as one of America's "200 Best Small Companies" by Forbes magazine. The Company was also recently named as one of America's "Top Publicly-Held Manufacturers" by Start-It 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 are 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; 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 Nine Months Ended October 31, October 31, 2007 2006 2007 2006 Net sales $28,059,516 $25,323,927 $77,572,214 $68,881,850 Cost of goods sold 18,936,861 17,005,918 52,494,210 47,973,992 Gross profit 9,122,655 8,318,009 25,078,004 20,907,858 Operating expenses (income) Selling 2,125,554 2,297,478 6,715,332 6,269,844 General and administrative 2,966,465 2,856,574 8,373,726 7,396,505 Gain on sale of building - - (3,513,940) - Income from operations 4,030,636 3,163,957 13,502,886 7,241,509 Interest expense (69,696) (109,205) (240,394) (256,519) Other income, net 228,738 254,461 745,131 759,712 Income before taxes 4,189,678 3,309,213 14,007,623 7,744,702 Provision for taxes 1,403,539 1,136,395 4,815,540 2,555,751 Net income $2,786,139 $2,172,818 $9,192,083 $5,188,951 Basic earnings per share(1) $.19 $.15 $.61 $.35 Diluted earnings per share(1) $.18 $.14 $.60 $.34 Average common shares outstanding: Basic shares(1) 14,983,501 14,938,068 14,989,673 14,939,680 Diluted shares(1) 15,312,924 15,176,329 15,324,527 15,179,735 (1) On October 17, 2007, the Board of Directors declared a four-for-three stock split which was paid on November 14, 2007 to shareholders of record on November 1, 2007. All references in the financial statements to per share amounts and number of shares outstanding give effect to the split, except for the shares outstanding and shares held in treasury as of January 31, 2007 in the Shareholders' Equity section of the Consolidated Balance Sheet. Met-Pro Corporation Consolidated Balance Sheet (unaudited) October 31, January 31, 2007 2007 Assets Current assets Cash and cash equivalents $20,770,697 $17,322,194 Marketable securities 22,761 24,090 Accounts receivable, net of allowance for doubtful accounts of approximately $171,000 and $133,000, respectively 22,639,155 20,837,589 Inventories 20,797,505 19,296,279 Prepaid expenses, deposits and other current assets 1,549,829 1,748,130 Total current assets 65,779,947 59,228,282 Property, plant and equipment, net 19,322,717 16,832,988 Costs in excess of net assets of business acquired, net 20,798,913 20,798,913 Other assets 288,228 306,403 Total assets $106,189,805 $97,166,586 Liabilities and shareholders' equity Current liabilities Current portion of long-term debt $2,013,282 $1,955,202 Accounts payable 5,884,016 6,450,813 Accrued salaries, wages and expenses 5,968,128 4,135,342 Dividend payable 826,771 757,029 Customers' advances 591,896 981,680 Deferred income taxes 242,457 245,231 Total current liabilities 15,526,550 14,525,297 Long-term debt 4,273,807 5,417,990 Other non-current liabilities 3,293,511 3,276,551 Deferred income taxes 2,301,030 1,369,591 Total liabilities 25,394,898 24,589,429 Shareholders' equity Common shares, $.10 par value; 18,000,000 shares authorized, 15,928,810 and 12,846,608 shares issued, of which 889,780 and 1,631,364 shares were reacquired and held in treasury at the respective dates 1,194,661 1,284,661 Additional paid-in capital 2,182,846 7,910,708 Retained earnings 81,644,555 74,921,913 Accumulated other comprehensive income (loss) 627,736 (33,471) Treasury shares, at cost (4,854,891) (11,506,654) Total shareholders' equity 80,794,907 72,577,157 Total liabilities and shareholders' equity $106,189,805 $97,166,586 Met-Pro Corporation Consolidated Business Segment Data (unaudited) Three Months Ended Nine Months Ended October 31, October 31, 2007 2006 2007 2006 Net sales Product recovery/ pollution control technologies $15,496,497 $12,991,946 $40,596,227 $35,083,198 Fluid handling technologies 7,204,658 7,416,844 20,616,228 19,440,477 Filtration/ purification technologies 5,358,361 4,915,137 16,359,759 14,358,175 $28,059,516 $25,323,927 $77,572,214 $68,881,850 Income from operations Product recovery/ pollution control technologies $2,012,537 $1,734,161 $4,606,921 $3,140,233 Fluid handling technologies 1,592,550 1,320,796 4,325,164 3,054,544 Filtration/ purification technologies 425,549 109,000 1,056,861 1,046,732 Gain on sale of building - - 3,513,940 - $4,030,636 $3,163,957 $13,502,886 $7,241,509 October 31, January 31, 2007 2007 Identifiable Assets Product recovery/ pollution control technologies $37,407,259 $35,332,252 Fluid handling technologies 22,206,857 21,667,719 Filtration/ purification technologies 20,806,083 20,514,339 80,420,199 77,514,310 Corporate 25,769,606 19,652,276 $106,189,805 $97,166,586 Met-Pro Corporation Consolidated Statement of Cash Flows (unaudited) Nine Months Ended October 31, 2007 2006 Increase (Decrease) in Cash and Cash Equivalents Cash flows from operating activities Net income $9,192,083 $5,188,951 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,284,648 1,183,326 Deferred income taxes 904,000 (1,659) (Gain) on sale of property and equipment, net (3,540,578) 11,754 Stock-based compensation 382,581 245,402 Allowance for doubtful accounts 37,874 (67,424) (Increase) decrease in operating assets: Accounts receivable (1,505,335) (1,842,257) Inventories (1,231,232) (2,414,105) Prepaid expenses, deposits and other current assets 243,937 202 Other assets (6,776) 25,421 Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 902,945 2,064,990 Customers' advances (391,030) (621,249) Other non-current liabilities 16,960 1,648 Net cash provided by operating activities 6,290,077 3,775,000 Cash flows from investing activities Proceeds from sale of property and equipment 4,377,115 14,310 Acquisitions of property and equipment (4,200,072) (4,192,649) Securities available for sale - (21,820) Net cash provided by (used in) investing activities 177,043 (4,200,159) Cash flows from financing activities Proceeds from new borrowings - 4,306,406 Reduction of debt (1,119,526) (1,103,380) Exercise of stock options 1,081,835 147,173 Payment of dividends (2,274,699) (2,100,393) Purchase of treasury shares (630,516) - Net cash provided by (used in) financing activities (2,942,906) 1,249,806 Effect of exchange rate changes on cash (75,711) 29,722 Net increase in cash and cash equivalents 3,448,503 854,369 Cash and cash equivalents at February 1 17,322,194 17,683,305 Cash and cash equivalents at October 31 $20,770,697 $18,537,674 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 with 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 three and nine month periods ended October 31, 2007 and 2006: Met-Pro Corporation Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure (unaudited) Three Months Ended Nine Months Ended October 31, October 31, 2007 2006 2007 2006 Income before tax as reported $4,189,678 $3,309,213 $14,007,623 $7,744,702 Less: Gain on sale of building - - (3,513,940) - Adjusted income before tax $4,189,678 $3,309,213 $10,493,683 $7,744,702 Net income as reported $2,786,139 $2,172,818 $9,192,083 $5,188,951 Less: Gain on sale of building - - (2,213,782) - Adjusted net income $2,786,139 $2,172,818 $6,978,301 $5,188,951 Basic earnings per share as reported (1) $.19 $.15 $.61 $.35 Adjusted basic earnings per share (1) $.19 $.15 $.47 $.35 Diluted earnings per share as reported (1) $.18 $.14 $.60 $.34 Adjusted diluted earnings per share (1) $.18 $.14 $.46 $.34 Average common shares outstanding: Basic shares (1) 14,983,501 14,938,068 14,989,673 14,939,680 Diluted shares (1) 15,312,924 15,176,329 15,324,527 15,179,735 (1) On October 17, 2007, the Board of Directors declared a four-for-three stock split which was paid on November 14, 2007 to shareholders of record on November 1, 2007. All references in the financial statements to per share amounts and number of shares outstanding give effect to the split, except for the shares outstanding and shares held in treasury as of January 31, 2007 in the Shareholders' Equity section of the Consolidated Balance Sheet. DATASOURCE: Met-Pro Corporation CONTACT: Gary J. Morgan, Senior Vice President of Finance, CFO, Met-Pro Corporation, +1-215-723-6751, Web site: http://www.met-pro.com/

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