HARLEYSVILLE, Pa., June 2, 2011 /PRNewswire/ -- 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, 2011.
Net sales for the first quarter ended April 30, 2011 were $23.4
million, the highest first quarter net sales in the
Company's history, and up 5% from $22.3
million for the same quarter last year. Net income totaled
$1.4 million and diluted earnings per
share were $0.10 for the first
quarter compared with net income of $1.4
million and diluted earnings per share of $0.10 for the same period last year.
New order bookings for the first quarter were up 15% to
$25.5 million compared with
$22.2 million for the first quarter
last year. As a result, the Company's backlog of orders as of
April 30, 2011 totaled $20.1 million compared with $17.3 million last year, an increase of 16%.
Substantially all of the April 30,
2011 backlog is expected to be shipped during the current
fiscal year.
"We are pleased to have sustained our recent trend of
year-over-year quarterly revenue growth, with the best revenue
first quarter in the Company's history," stated De Hont. "Gross
margins in the quarter were 34.4%, continuing to track toward the
high end of our historical range, although somewhat off from the
comparable year ago quarter primarily due to product mix, higher
commodity costs, and some temporary softness in our Product
Recovery/Pollution Control Technologies segment resulting from the
lagging effect of delays in the timing of customer orders for
several large projects. To offset the rising commodity costs, we
have taken certain measures including product price increases and
improved purchasing practices. New order bookings during the first
quarter included several large orders for our Product
Recovery/Pollution Control Technologies segment, which together
with steady quotation activity are encouraging signs of an
impending rebound in our large project business.
"During the first quarter, we continued to invest in our growth
initiatives, adding a Business Development Manager in China and accelerating the incorporation of
our new South American subsidiary. Both of these investments should
improve our competitive profile throughout these rapidly
industrializing markets, creating strong demand for a broad range
of Met-Pro products. Cash was $29.4
million at the end of the quarter, down somewhat from recent
levels mainly due to the Company electing to contribute
$2.9 million to our salary and hourly
pension plans. We expect that this contribution will improve the
funded status of the pension plans and, along with the accrual of
future benefits being frozen, improve our risk profile. The
momentum in new order bookings, in combination with our steady
quotation activity, gives us continued optimism about our future
prospects."
On March 17, 2011, the Company
paid a quarterly dividend of $0.066
per share to shareholders of record at the close of business on
March 3, 2011. In addition, the Board
of Directors, at their meeting on March 30,
2011, declared a quarterly dividend of $0.066 per share payable June 15, 2011 to shareholders of record at the
close of business on June 1, 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, June 2, 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 65875614) 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
June 16, 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
65875614.
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.
Met-Pro
Corporation
Consolidated
Statements of Income
(unaudited)
|
|
|
Three Months
Ended
April 30,
|
|
|
2011
|
2010
|
|
Net sales
|
$23,429,903
|
$22,277,077
|
|
Cost of goods sold
|
15,371,698
|
14,295,538
|
|
Gross profit
|
8,058,205
|
7,981,539
|
|
Operating
expenses
Selling
|
2,916,126
|
2,932,897
|
|
General and
administrative
|
3,059,103
|
2,945,602
|
|
|
5,975,229
|
5,878,499
|
|
Income from
operations
|
2,082,976
|
2,103,040
|
|
|
|
|
|
Interest expense
|
(48,801)
|
(82,510 )
|
|
Other income, net
|
105,986
|
117,468
|
|
Income before taxes
|
2,140,161
|
2,137,998
|
|
|
|
|
|
Provision for taxes
|
727,654
|
726,920
|
|
|
|
|
|
Net income
|
$1,412,507
|
$1,411,078
|
|
|
|
|
|
Basic earnings per
share
|
$.10
|
$.10
|
|
Diluted earnings per
share
|
$.10
|
$.10
|
|
|
|
|
|
Average common shares
outstanding:
|
|
|
|
Basic shares
|
14,659,117
|
14,619,000
|
|
Diluted shares
|
14,841,720
|
14,693,035
|
|
|
|
|
|
|
Met-Pro
Corporation
Consolidated Balance
Sheets
|
|
|
April
30,
2011
|
January
31,
2011
|
|
Assets
|
(unaudited)
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
$29,366,309
|
$32,400,814
|
|
Short-term
investments
|
497,155
|
497,155
|
|
Accounts receivable, net of
allowance for
|
|
|
|
doubtful accounts of
approximately
|
|
|
|
$463,000 and $444,000,
respectively
|
17,119,493
|
15,311,322
|
|
Inventories
|
16,045,351
|
15,474,430
|
|
Prepaid expenses, deposits and
other current assets
|
1,602,533
|
1,578,176
|
|
Deferred income taxes
|
84,698
|
84,155
|
|
Total
current assets
|
64,715,539
|
65,346,052
|
|
|
|
|
|
Property, plant and equipment,
net
|
19,904,798
|
19,863,031
|
|
Goodwill
|
20,798,913
|
20,798,913
|
|
Other assets
|
2,056,720
|
2,038,332
|
|
Total assets
|
$107,475,970
|
$108,046,328
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
Current liabilities
|
|
|
|
Current portion of
debt
|
$949,149
|
$532,540
|
|
Accounts payable
|
5,746,014
|
4,864,724
|
|
Accrued salaries, wages and
benefits
|
1,171,483
|
1,650,314
|
|
Other accrued
expenses
|
2,707,142
|
2,286,043
|
|
Dividend payable
|
967,529
|
967,445
|
|
Customers' advances
|
856,184
|
907,107
|
|
Total
current liabilities
|
12,397,501
|
11,208,173
|
|
|
|
|
|
Long-term debt
|
2,934,671
|
3,011,988
|
|
Accrued pension retirement
benefits
|
3,776,785
|
6,553,262
|
|
Other non-current
liabilities
|
54,744
|
54,195
|
|
Deferred income taxes
|
2,746,780
|
2,745,786
|
|
Total
liabilities
|
21,910,481
|
23,573,404
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
Common shares, $.10 par value;
36,000,000 shares
|
|
|
|
authorized, 15,928,679
shares issued, of which
|
|
|
|
1,269,134 and 1,270,417
shares were reacquired
|
|
|
|
and held in treasury at
the respective dates
|
1,592,868
|
1,592,868
|
|
Additional paid-in
capital
|
3,629,575
|
3,448,249
|
|
Retained earnings
|
93,558,225
|
93,113,247
|
|
Accumulated other comprehensive
loss
|
(2,734,006)
|
(3,201,767)
|
|
Treasury shares, at
cost
|
(10,481,173)
|
(10,479,673)
|
|
Total
shareholders' equity
|
85,565,489
|
84,472,924
|
|
Total
liabilities and shareholders' equity
|
$107,475,970
|
$108,046,328
|
|
|
|
|
|
|
Met-Pro
Corporation
Consolidated Business Segment
Data
(unaudited)
|
|
|
Three Months
Ended April 30,
|
|
|
2011
|
2010
|
|
Net sales
|
|
|
|
Product Recovery/Pollution
Control Technologies
|
$8,331,972
|
$11,013,225
|
|
Fluid Handling
Technologies
|
9,553,104
|
6,530,571
|
|
Mefiag Filtration
Technologies
|
3,139,917
|
2,434,249
|
|
Filtration/Purification
Technologies
|
2,404,910
|
2,299,032
|
|
|
$23,429,903
|
$22,277,077
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
|
Product Recovery/Pollution
Control Technologies
|
($480,285)
|
$516,161
|
|
Fluid Handling
Technologies
|
2,240,696
|
1,288,796
|
|
Mefiag Filtration
Technologies
|
221,472
|
206,519
|
|
Filtration/Purification
Technologies
|
101,093
|
91,564
|
|
|
$2,082,976
|
$2,103,040
|
|
|
April
30,
2011
|
January
31,
2011
|
|
|
|
Identifiable
assets
|
|
|
|
Product Recovery/Pollution
Control Technologies
|
$33,147,390
|
$34,003,251
|
|
Fluid Handling
Technologies
|
20,072,721
|
18,114,257
|
|
Mefiag Filtration
Technologies
|
14,193,775
|
12,814,143
|
|
Filtration/Purification
Technologies
|
8,235,261
|
8,369,385
|
|
|
75,649,147
|
73,301,036
|
|
Corporate
|
31,826,823
|
34,745,292
|
|
|
$107,475,970
|
$108,046,328
|
|
|
|
|
|
|
Met-Pro
Corporation
Consolidated
Statements of Cash Flows
(unaudited)
|
|
|
Three Months
Ended April 30,
|
|
2011
|
2010
|
|
Cash flows from operating
activities
|
|
|
|
Net income
|
$1,412,507
|
$1,411,078
|
|
Adjustments to reconcile net
income to net
cash provided by
(used in) operating activities:
|
|
|
|
Depreciation and
amortization
|
481,932
|
445,252
|
|
Deferred income
taxes
|
(606)
|
(597)
|
|
Stock-based
compensation
|
179,826
|
161,472
|
|
Allowance for doubtful
accounts
|
19,215
|
(18,557)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(1,636,920)
|
(1,556,207)
|
|
Inventories
|
(388,008)
|
395,944
|
|
Prepaid
expenses, deposits and other assets
|
(38,705)
|
250,155
|
|
Accounts
payable and accrued expenses
|
687,771
|
1,608,371
|
|
Customers'
advances
|
(52,906)
|
(511,077)
|
|
Accrued
pension retirement benefits
|
(2,776,476)
|
112,894
|
|
Other
non-current liabilities
|
549
|
549
|
|
|
|
|
|
Net cash
provided by (used in) operating activities
|
(2,111,821)
|
2,299,277
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
Acquisitions of property and
equipment
|
(235,679)
|
(210,475)
|
|
|
|
|
|
Net cash
used in investing activities
|
(235,679)
|
(210,475)
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
Proceeds from new
borrowings
|
407,731
|
–
|
|
Reduction of debt
|
(123,023)
|
(132,845)
|
|
Exercise of stock
options
|
42,800
|
212,744
|
|
Payment of dividends
|
(967,445)
|
(877,021)
|
|
Purchase of treasury
shares
|
(42,800)
|
(226,666)
|
|
|
|
|
|
Net cash
used in financing activities
|
(682,737)
|
(1,023,788)
|
|
Effect of exchange rate changes
on cash
|
(4,268)
|
4,421
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
(3,034,505)
|
1,069,435
|
|
|
|
|
|
Cash and cash equivalents at
February 1
|
32,400,814
|
30,662,104
|
|
|
|
|
|
Cash and cash equivalents at
April 30
|
$29,366,309
|
$31,731,539
|
|
|
|
|
|
|
Contact:
|
Investor Contact:
|
|
|
|
Gary J. Morgan,
|
Joseph Hassett, SVP
|
|
|
Senior Vice President of
Finance, CFO
|
Gregory FCA
Communications
|
|
|
215-723-6751
|
610-228-2110
|
|
|
|
|
SOURCE Met-Pro Corporation