2014

Met-Pro Corporation Announces Second Quarter Financial Results Net Sales Grow 21%, Orders Growth Leads to 29% Backlog Increase

HARLEYSVILLE, Pa., Sept. 6, 2012 /PRNewswire/ -- Met-Pro Corporation (NYSE: MPR) today announced the Company's financial results for the second quarter ended July 31, 2012.

Net sales for the second quarter ended July 31, 2012 were $28.0 million, an increase of 21% compared with net sales of $23.1 million for the same quarter last year. Net income for the second quarter ended July 31, 2012 was $1.6 million, or $0.11 per diluted share, compared with net income of $1.5 million, or $0.10 per diluted share, for the same period last year.

New orders for the second quarter were $31.5 million, a 7% increase when compared with $29.5 million for the second quarter last year. As a result, the Company's backlog of orders increased by $3.5 million for the quarter and totaled $33.9 million as of July 31, 2012, an increase of 29% when compared with $26.3 million at the same point last year. The vast majority of the July 31, 2012 backlog is expected to be shipped during the current fiscal year.

"The significant increase in revenues and growth in bookings and backlog in the quarter are strong indicators that our marketing strategy has been effective in increasing share in our targeted end markets," stated Raymond J. De Hont, Chairman and Chief Executive Officer. "Each of our business segments contributed to the strong top line growth, with three of our business segments generating operating profits that led to a 10% increase in earnings in the quarter compared with the same period a year ago. Somewhat offsetting these achievements were results in our Product Recovery/Pollution Control Technologies segment, wherein weaker margins on a small number of contracts led to a decrease in both segment and consolidated gross margins in the quarter. We are encouraged by our success penetrating new markets and expanding our customer base. By continuing to strengthen our organization, we will be able to more effectively leverage this increasing market success to improve returns. The strong interest in our products, together with our solid backlog, allows us to remain optimistic about our future prospects."

Net sales for the six months ended July 31, 2012 were $53.2 million compared with $46.5 million for the same period last year, an increase of 14%. Net income for the first half ended July 31, 2012 totaled $2.9 million, or $0.20 per fully diluted share, both essentially unchanged from the first half of last fiscal year. New order bookings for the six months ended July 31, 2012 were up 6% to $58.5 million compared with $55.1 million for the same period last year.

On June 15, 2012, the Company paid a quarterly dividend of $0.071 per share to shareholders of record at the close of business on June 1, 2012. In addition, the Board of Directors, at their meeting on June 6, 2012, declared a quarterly dividend of $0.071 per share payable September 14, 2012 to shareholders of record at the close of business on August 31, 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, September 6, 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 17040712) 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 September 20, 2012. 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 17040712.

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.



 

 

Met-Pro Corporation
Consolidated Statements of Income

(unaudited)

 





Three Months Ended
July 31,

   Six Months Ended
   July 31,


2012

2011

2012

2011

Net sales

$27,997,242

$23,089,343

$53,204,303

$46,519,246

Cost of goods sold

19,299,138

14,952,362

35,555,673

30,324,060

Gross profit

8,698,104

8,136,981

17,648,630

16,195,186

Operating expenses

    Selling





3,029,372

2,924,062

6,088,953

5,840,188

    General and administrative

3,248,591

2,990,426

7,392,680

6,049,529

Total selling, general and administrative

6,277,963

5,914,488

13,481,633

11,889,717

Income from operations

2,420,141

2,222,493

4,166,997

4,305,469






Interest expense

(41,863)

(49,908)

(84,398)

(98,709)

Other income

49,747

85,344

95,672

191,330

Income before taxes

2,428,025

2,257,929

4,178,271

4,398,090






Provision for taxes

808,026

767,695

1,299,574

1,495,349






Net income

1,619,999

$1,490,234

$2,878,697

$2,902,741






Basic earnings per share

$.11

$.10

$.20

$.20

Diluted earnings per share

$.11

$.10

$.20

$.20






Average common shares outstanding:





    Basic shares

14,679,746

14,659,281

14,681,423

14,659,331

    Diluted shares

14,739,548

14,833,239

14,736,153

14,824,680

Met-Pro Corporation
Consolidated Balance Sheets





July 31,
2012

January 31,
2012

Assets

(unaudited)


Current assets



    Cash and cash equivalents

$31,173,910

$34,581,394

    Short-term investments

1,022,266

764,061

    Accounts receivable, net of allowance for



      doubtful accounts of approximately



      $393,000 and $491,000, respectively

17,782,160

17,373,121

    Inventories

17,927,911

17,847,143

    Prepaid expenses, deposits and other current assets

2,122,429

1,683,486

    Deferred income taxes

186,111

186,329

        Total current assets

70,214,787

72,435,534




Property, plant and equipment, net

18,905,209

19,322,436

Goodwill

20,798,913

20,798,913

Other assets

2,859,678

2,952,332

        Total assets  

$112,778,587

$115,509,215







Liabilities and shareholders' equity



Current liabilities



    Current portion of debt

$569,963

$657,216

    Accounts payable

7,371,543

7,684,739

    Accrued salaries, wages and benefits

1,799,692

1,827,603

    Other accrued expenses

2,625,231

2,357,929

    Dividend payable

1,043,876

1,042,297

    Customers' advances

1,441,639

3,232,600

        Total current liabilities

14,851,944

16,802,384




Long-term debt

2,477,041

2,687,971

Accrued pension retirement benefits

9,196,595

10,618,047

Other non-current liabilities

57,489

56,391

Deferred income taxes

1,314,255

1,522,451

        Total liabilities

27,897,324

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



      1,241,666 and 1,250,051 shares were reacquired



      and held in treasury

1,592,868

1,592,868

    Additional paid-in capital

4,582,952

4,058,735

    Retained earnings

97,020,326

96,228,764

    Accumulated other comprehensive loss

(8,044,714)

(7,718,883)

    Treasury shares, at cost

(10,270,169)

(10,339,513)

        Total shareholders' equity

84,881,263

83,821,971

        Total liabilities and shareholders' equity  

$112,778,587

$115,509,215

Met-Pro Corporation
Consolidated Business Segment Data

(unaudited)

 





Three Months Ended
July 31,

    Six Months Ended
    July 31,


2012

2011

2012

2011

Net sales





    Product Recovery/Pollution Control Technologies

$13,193,396

$9,625,898

$23,694,236

$17,957,870

    Fluid Handling Technologies

8,315,307

7,407,151

17,715,506

16,960,255

    Mefiag Filtration Technologies

3,523,165

3,204,384

6,375,331

6,344,301

    Filtration/Purification Technologies

2,965,374

2,851,910

5,419,230

5,256,820


$27,997,242

$23,089,343

$53,204,303

$46,519,246






Income (loss) from operations

    Product Recovery/Pollution Control Technologies

($469,167)

($49,043)

($912,229)

($529,328)

    Fluid Handling Technologies

2,363,288

1,901,703

4,747,658

4,142,399

    Mefiag Filtration Technologies

367,901

169,078

295,813

390,550

    Filtration/Purification Technologies

158,119

200,755

35,755

301,848


$2,420,141

$2,222,493

$4,166,997

$4,305,469









 July 31,
 2012

January 31,
2012

Identifiable assets





    Product Recovery/Pollution Control Technologies



$37,284,193

$36,444,763

    Fluid Handling Technologies



18,815,811

19,290,035

    Mefiag Filtration Technologies



14,916,983

14,017,572

    Filtration/Purification Technologies



8,419,428

8,368,652




79,436,415

78,121,022

    Corporate



33,342,172

37,388,193




$112,778,587

$115,509,215

 

Met-Pro Corporation
Consolidated Statements of Cash Flows
(unaudited)





Six Months Ended July 31,


2012

2011

Cash flows from operating activities                              




    Net income


$2,878,697

$2,902,741

    Adjustments to reconcile net income to net

        cash (used in) provided by operating activities:




      Depreciation and amortization


989,865

955,777

      Stock-based compensation


593,561

359,652

Deferred income taxes


(209,897)

(1,212)

      Loss/(gain) on sale of property and equipment, net


1,080

(27,496)

      Allowance for doubtful accounts


(98,479)

57,456

      Changes in operating assets and liabilities:  




            Accounts receivable


(425,173)

(1,357,446)

            Inventories


(219,103)

(1,379,911)

            Prepaid expenses, deposits and other assets


(695,430)

(162,928)

            Accounts payable and accrued expenses


(2,972)

1,650,817

            Customers' advances


(1,788,386)

372,567

            Accrued pension retirement benefits


(1,421,452)

(2,751,787)

            Other non-current liabilities


1,098

1,098





            Net cash (used in) provided by operating activities


(396,591)

619,328





Cash flows from investing activities




    Proceeds from sale of property and equipment


33,990

    Acquisitions of property and equipment


(678,364)

(918,049)

    Purchase of investments


(1,022,266)

(1,010,534)

    Proceeds from maturities of investments


1,012,123

497,155





            Net cash used in investing activities


(688,507)

(1,397,438 )





Cash flows from financing activities




    Proceeds from new borrowings


223,454

407,759

    Reduction of debt


(470,326)

(385,819)

    Exercise of stock options


42,800

    Payment of dividends


(2,085,556)

(1,934,975)

    Purchase of treasury shares


(42,800)





            Net cash used in financing activities


(2,332,428)

(1,913,035 )

Effect of exchange rate changes on cash


10,042

11,572





Net decrease in cash and cash equivalents


(3,407,484 )

(2,679,573 )





Cash and cash equivalents at February 1


34,581,394

32,400,814





Cash and cash equivalents at July 31


$31,173,910

$29,721,241






Contact:

Investor Contact:



Neal E. Murphy

Joseph Hassett, SVP


Vice President of Finance, CFO

Gregory FCA Communications


215-723-6751

610-228-2110

SOURCE Met-Pro Corporation



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