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, 2009. Net sales for the first quarter ended April 30, 2009 were $19.6 million compared with net sales of $22.7 million for the same quarter last year. Net income totaled $1.0 million and diluted earnings per share were $0.07 for the first quarter, compared with net income of $1.9 million and diluted earnings per share of $0.13 for the same period last year. "Results in the first quarter continue to reflect weakness in our large project revenues due to a global slowdown in capital spending as well as a moderating pace of general business activity," said De Hont. "Gross margins in the quarter remained strong, reflecting the continued progress of our efficiency initiatives, including global sourcing, more effective logistics, and lean manufacturing, as well as the ability of our flexible manufacturing strategy to quickly adjust costs to match our level of business activity. Selling, general and administrative expenses for the first quarter, however, increased versus the same quarter last year primarily due to external variables such as the impact of fluctuations in the stock market on the Company's pension plans combined with higher healthcare and stock option expenses. While we had previously taken actions to control expenses, such as freezing our pension plans, in the aggregate the increases in these expenses totaled approximately $500,000 in the first quarter. Selling expenses in last year's first quarter included the positive effect of the receipt of a $300,000 legal settlement. When combined these four S,G&A items represent approximately a $0.04 per share difference between the respective quarters. "During the first quarter, the Company generated $5.9 million in cash flow from operating activities. As a result, our balance sheet remains extremely strong with over $26.4 million in cash and only $4.9 million of debt. This will not only allow us to support investments to further enhance efficiency initiatives, develop new products, and expand into new growth markets, but will also allow us to take advantage of potential acquisition opportunities. Economic conditions are still posing a challenge, as demonstrated by our $18.9 million of bookings in the first quarter compared with $28.0 million for the same quarter last year. However, the underlying fundamental strength of our business leaves us well positioned to create long-term sustainable growth and value for our shareholders." On March 12, 2009, the Company paid a quarterly dividend of $0.06 per share to shareholders of record at the close of business on February 26, 2009. In addition, the Board of Directors, at their meeting on March 27, 2009, declared a quarterly dividend of $0.06 per share payable June 12, 2009 to shareholders of record at the close of business on May 29, 2009. The current quarterly dividend represents a 9.1% increase over the same period last year. This is the thirty-fourth consecutive year the Company has paid a cash or stock dividend. Conference Call Mr. De Hont and Gary J. Morgan, Senior Vice President of Finance and Chief Financial Officer, will hold a conference call for investors on Friday, May 22, 2009, 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, is available on Met-Pro's Investor Relations website at http://www.met-pro.com/html/invrel.htm. 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 98364818) at 10:55 AM (Eastern) on May 22, 2009. A taped replay of the conference call will be available within two hours of the conclusion of the call and until June 5, 2009. 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 98364818. About Met-Pro Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized, for the third consecutive year, as one of America's "200 Best Small Companies" by Forbes magazine. In 2008, the Company was also named one of the world's "Top Small to Midsize Manufacturers" by Start-It magazine for the second year in a row. 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; Mefiag filtration technologies for harsh, corrosive liquid filtration applications; and filtration and purification technologies which include proprietary water treatment chemicals and filter products for air and liquid filtration. 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 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, 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 http://www.met-pro.com/. Met-Pro Corporation Consolidated Statement of Operations (unaudited) Three Months Ended April 30, 2009 2008 Net sales $19,641,008 $22,656,474 Cost of goods sold 12,628,040 15,064,250 Gross profit 7,012,968 7,592,224 Operating expenses Selling 2,528,532 2,252,076 General and administrative 3,012,327 2,643,919 5,540,859 4,895,995 Income from operations 1,472,109 2,696,229 Interest expense (53,823) (65,061) Other income, net 13,965 175,815 Income before taxes 1,432,251 2,806,983 Provision for taxes 479,802 881,338 Net income $952,449 $1,925,645 Basic earnings per share $.07 $.13 Diluted earnings per share $.07 $.13 Average common shares outstanding: Basic shares 14,600,109 15,038,900 Diluted shares 14,645,792 15,313,389 Met-Pro Corporation Consolidated Balance Sheet (unaudited) April 30, January 31, 2009 2009 Assets Current assets Cash and cash equivalents $26,446,717 $21,749,653 Accounts receivable, net of allowance for doubtful accounts of approximately $210,000 and $167,000, respectively 14,522,548 20,177,672 Inventories 20,684,278 20,236,865 Prepaid expenses, deposits and other current assets 1,722,518 1,997,542 Total current assets 63,376,061 64,161,732 Property, plant and equipment, net 19,810,977 19,389,597 Costs in excess of net assets of businesses acquired, net 20,798,913 20,798,913 Other assets 406,423 402,062 Total assets $104,392,374 $104,752,304 Liabilities and shareholders' equity Current liabilities Current portion of long-term debt $924,821 $746,042 Accounts payable 4,938,844 5,464,629 Accrued salaries, wages and expenses 3,771,899 4,546,199 Dividend payable 876,007 876,007 Customers' advances 384,100 356,008 Deferred income taxes 250,782 250,782 Total current liabilities 11,146,453 12,239,667 Long-term debt 3,962,517 3,753,228 Other non-current liabilities 8,940,189 8,855,912 Deferred income taxes 1,137,425 1,126,016 Total liabilities 25,186,584 25,974,823 Shareholders' equity Common shares, $.10 par value; 36,000,000 shares authorized, 15,928,679 shares issued, of which 1,328,570 shares were reacquired and held in treasury at the respective dates 1,592,868 1,592,868 Additional paid-in capital 2,630,070 2,465,193 Retained earnings 89,803,750 89,727,308 Accumulated other comprehensive loss (4,137,303) (4,324,293) Treasury shares, at cost (10,683,595) (10,683,595) Total shareholders' equity 79,205,790 78,777,481 Total liabilities and shareholders' equity $104,392,374 $104,752,304 Met-Pro Corporation Consolidated Business Segment Data (unaudited) Three Months Ended April 30, 2009 2008 Net sales Product recovery/pollution control technologies $7,569,982 $9,504,792 Fluid handling technologies 6,978,462 6,988,583 Mefiag filtration technologies 2,487,250 3,255,155 Filtration/purification technologies 2,605,314 2,907,944 $19,641,008 $22,656,474 Income (loss) from operations Product recovery/pollution control technologies $145,203 $892,251 Fluid handling technologies 1,306,005 1,379,954 Mefiag filtration technologies (15,403) 159,128 Filtration/purification technologies 36,304 264,896 $1,472,109 $2,696,229 April 30, January 31, 2009 2009 Identifiable assets Product recovery/pollution control technologies $34,891,160 $39,623,284 Fluid handling technologies 21,610,231 22,056,812 Mefiag filtration technologies 11,623,897 11,410,677 Filtration/purification technologies 9,444,864 9,369,905 77,570,152 82,460,678 Corporate 26,822,222 22,291,626 $104,392,374 $104,752,304 Met-Pro Corporation Consolidated Statement of Cash Flows (unaudited) Three Months Ended April 30, 2009 2008 Increase (Decrease) in Cash and Cash Equivalents Cash flows from operating activities Net income $952,449 $1,925,645 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 480,672 473,225 Deferred income taxes (597) 4,686 (Gain) loss on sale of property and equipment, net (12,195) 2,611 Stock-based compensation 164,876 108,051 Allowance for doubtful accounts 42,941 11,186 (Increase) decrease in operating assets: Accounts receivable 5,695,089 4,092,724 Inventories (381,726) (531,236) Prepaid expenses and deposits 558,434 - Other assets (283,798) 98,700 Increase (decrease) in operating liabilities: Accounts payable and accrued expenses (1,378,851) (1,749,774) Customers' advances 27,013 324,179 Other non-current liabilities 84,276 14,986 Net cash provided by operating activities 5,948,583 4,774,983 Cash flows from investing activities Proceeds from sale of property and equipment 18,882 - Acquisitions of property and equipment (797,497) (404,379) Net cash used in investing activities (778,615) (404,379) Cash flows from financing activities Proceeds from new borrowing 485,336 - Reduction of debt (104,440) (366,906) Payment of dividends (876,007) (827,136) Net cash used in financing activities (495,111) (1,194,042) Effect of exchange rate changes on cash 22,207 (22,941) Net increase in cash and cash equivalents 4,697,064 3,153,621 Cash and cash equivalents at February 1 21,749,653 21,906,877 Cash and cash equivalents at April 30 $26,446,717 $25,060,498 CONTACT: Investor Contact: Gary J. Morgan, Senior Vice President of Finance, CFO 215-723-6751 Joseph Hassett, VP Gregory FCA Communications 610-228-2110 DATASOURCE: Met-Pro Corporation CONTACT: Investors, Gary J. Morgan, Senior Vice President of Finance, CFO, +1-215-723-6751, or Joseph Hassett, VP of Gregory FCA Communications, +1-610-228-2110 Web Site: http://www.met-pro.com/

Copyright