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Met-Pro Corporation Announces First Quarter Financial Results

HARLEYSVILLE, Pa., June 7, 2012 /PRNewswire/ -- Met-Pro Corporation (NYSE: MPR) today announced the Company's financial results for the first quarter ended April 30, 2012.

Net sales were $25.2 million, the highest first quarter net sales in the Company's history, a 7.6% increase from $23.4 million for the same quarter last year. Net income totaled $1.3 million and diluted earnings per share were $0.09 compared with net income of $1.4 million and diluted earnings per share of $0.10 for the same period last year. Current year results included one-time costs of approximately $0.7 million incurred in connection with the transition to a new Chief Financial Officer, which had an after-tax impact of $0.3 million or $0.02 cents per diluted share.

Bookings for the first quarter were up 5.8% to $27.0 million compared with $25.5 million for the first quarter last year. The Company's backlog of orders as of April 30, 2012 was $30.5 million compared with $20.1 million last year. Substantially all of the April 30, 2012 backlog is expected to be shipped during the current fiscal year.

"We are pleased with our continued upward progression in sales and bookings from the prior year as well as with our gross margin improvement to 35.5% from 34.4% when compared with last year's first quarter," stated Raymond J. De Hont, Chairman and Chief Executive Officer. "Our global engineered solutions strategy and the market building investments that we have made are continuing to gain traction, positioning us to drive growth in shareholder value over the longer term and, together with our order backlog and global proposal activity, allowing us to remain optimistic for the current fiscal year."  

On March 16, 2012, the Company paid a quarterly dividend of $0.071 per share to shareholders of record at the close of business on March 2, 2012. In addition, the Board of Directors, at their meeting on April 2, 2012, declared a quarterly dividend of $0.071 per share payable June 15, 2012 to shareholders of record at the close of business on June 1, 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, June 7, 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.

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 78865636) 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 21, 2012. To access the taped replay, call the US/Canada Dial-In # 855-859-2056 or the International Dial-In # 404-537-3406 and enter conference ID 78865636.

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.

 

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 and Subsidiaries
Consolidated Statements of Income

(unaudited)

 



Three Months Ended
April 30,




2012

2011

Net sales

$25,207,061

$23,429,903

Cost of goods sold



16,256,535

15,371,698

Gross profit



8,950,526

8,058,205

Operating expenses

    Selling







3,059,581

2,916,126

    General and administrative



4,144,089

3,059,103

Total selling, general and administrative



7,203,670

5,975,229

Income from operations



1,746,856

2,082,976






Interest expense



(42,535)

(48,801)

Other income



45,925

105,986

Income before taxes



1,750,246

2,140,161






Provision for taxes



491,548

727,654






Net income



$1,258,698

$1,412,507






Basic earnings per share



$.09

$.10

Diluted earnings per share



$.09

$.10






Average common shares outstanding:





    Basic shares



14,678,628

14,659,117

    Diluted shares



14,744,826

14,841,720



 

Met-Pro Corporation and Subsidiaries
Consolidated Balance Sheets

 


April 30,
2012

January 31,
2012

Assets

(unaudited)


Current assets



    Cash and cash equivalents

$33,718,966

$34,581,394

    Short-term investments

1,019,315

764,061

    Accounts receivable, net of allowance for



      doubtful accounts of approximately



      $452,000 and $491,000, respectively

15,273,701

17,373,121

    Inventories

19,239,814

17,847,143

    Prepaid expenses, deposits and other current assets

1,531,508

1,683,486

    Deferred income taxes

186,742

186,329

        Total current assets

70,970,046

72,435,534




Property, plant and equipment, net

19,368,319

19,322,436

Goodwill

20,798,913

20,798,913

Other assets

2,718,549

2,952,332

        Total assets  

$113,855,827

$115,509,215







Liabilities and shareholders' equity



Current liabilities



    Current portion of debt

$366,232

$657,216

    Accounts payable

6,658,848

7,684,739

    Accrued salaries, wages and benefits

1,664,358

1,827,603

    Other accrued expenses

2,701,824

2,357,929

    Dividend payable

1,043,373

1,042,297

    Customers' advances

2,196,911

3,232,600

        Total current liabilities

14,631,546

16,802,384




Long-term debt

2,575,564

2,687,971

Accrued pension retirement benefits

10,680,616

10,618,047

Other non-current liabilities

56,941

56,391

Deferred income taxes

1,322,781

1,522,451

        Total liabilities

29,267,448

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



      1,250,051 shares were reacquired and held in



      treasury at both dates

1,592,868

1,592,868

    Additional paid-in capital

4,500,136

4,058,735

    Retained earnings

96,444,203

96,228,764

    Accumulated other comprehensive loss

(7,609,315)

(7,718,883)

    Treasury shares, at cost

(10,339,513)

(10,339,513)

        Total shareholders' equity

84,588,379

83,821,971

        Total liabilities and shareholders' equity  

$113,855,827

$115,509,215

 

 

Met-Pro Corporation and Subsidiaries
Consolidated Business Segment Data

(unaudited)

 


Three Months Ended April 30,


2012

2011

Net sales



    Product Recovery/Pollution Control Technologies

$10,500,840

$8,331,972

    Fluid Handling Technologies

9,400,199

9,553,104

    Mefiag Filtration Technologies

2,852,166

3,139,917

    Filtration/Purification Technologies

2,453,856

2,404,910


$25,207,061

$23,429,903




Income (loss) from operations



    Product Recovery/Pollution Control Technologies

($443,062)

($480,285)

    Fluid Handling Technologies

2,384,370

2,240,696

    Mefiag Filtration Technologies

(72,088)

221,472

    Filtration/Purification Technologies

(122,364)

101,093


$1,746,856

$2,082,976


 

April 30,

2012

 

January 31,

2012


Identifiable assets



    Product Recovery/Pollution Control Technologies

$34,977,794

$36,444,763

    Fluid Handling Technologies

19,136,649

19,290,035

    Mefiag Filtration Technologies

15,086,547

14,017,572

    Filtration/Purification Technologies

8,985,779

8,368,652


78,186,769

78,121,022

    Corporate

35,669,058

37,388,193


$113,855,827

$115,509,215

 

Met-Pro Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

 



Three Months Ended April 30,



2012

2011





Cash flows from operating activities                              




    Net income


$1,258,698

$1,412,507

    Adjustments to reconcile net income to net

        cash provided by (used in) operating activities:




      Depreciation and amortization


487,599

481,932

      Stock-based compensation


441,401

179,826

      Deferred income taxes


(209,278)

(606)

      Loss on sales of property and equipment, net


1,080

      Allowance for doubtful accounts


(38,862)

19,215

      Change in operating assets and liabilities:   




            Accounts receivable


2,171,197

(1,636,920)

            Inventories


(1,361,633)

(388,008)

            Prepaid expenses, deposits and other assets


123,755

(38,705)

            Accounts payable and accrued expenses


(862,836)

687,771

            Customers' advances


(1,036,453)

(52,906)

            Accrued pension retirement benefits


62,569

(2,776,476)

            Other non-current liabilities


549

549





            Net cash provided by (used in) operating activities


1,037,786

(2,111,821)





Cash flows from investing activities




    Acquisitions of property and equipment


(474,884)

(235,679)

    Purchase of investments


(763,264)

    Proceeds from maturities of investments


756,073





            Net cash used in investing activities


(482,075)

(235,679)





Cash flows from financing activities




    Proceeds from new borrowings


407,731

    Repayment of debt


(387,451)

(123,023)

    Exercises of stock options


42,800

    Payment of dividends


(1,042,183)

(967,445)

    Purchases of treasury shares


(42,800)





            Net cash used in financing activities


(1,429,634)

(682,737)

Effect of exchange rate changes on cash


11,495

(4,268)





Net decrease in cash and cash equivalents


(862,428)

(3,034,505)





Cash and cash equivalents at February 1


34,581,394

32,400,814





Cash and cash equivalents at April 30


$33,718,966

$29,366,309





Supplemental disclosure of cash flow information:




     Cash paid for interest


$43,436

$49,030

     Cash paid for income taxes


370,703

228,584

 

 

 

SOURCE Met-Pro Corporation



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