Met-Pro Corporation Announces Third Quarter Financial Results

Net Income Increases 34% on 18% Net Sales Growth

06 Dec, 2012, 08:00 ET from Met-Pro Corporation

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

Net sales for the third quarter ended October 31, 2012 were $29.8 million, an increase of 18% compared with net sales of $25.2 million for the same quarter last year. Net income was $2.8 million or $0.19 per diluted share, increases of 34% and 36%, respectively, when compared with net income of $2.1 million or $0.14 per diluted share for the third quarter of last year.

New orders received in the third quarter were $24.4 million, compared with $27.5 million for the third quarter of last year. The Company's backlog of orders entering the fourth quarter totaled $28.6 million, which is equal to the order backlog at the same point last year.

"We are pleased with the results for the third quarter, which we were able to achieve despite a challenging global business environment," commented Raymond J. De Hont, Met-Pro's Chief Executive Officer and President. "Strong top line growth and focus on execution and cost control enabled us to achieve a 34% increase in net income. Each of the Company's business segments was profitable for the quarter. Though the pace of firm orders received in the third quarter slowed as compared to the third quarter of last year, our order backlog and the breadth of our quotation activity remain strong. While there is continuing economic uncertainty in the U.S. and other key global economies that could impact our forecasts, we expect to report growth in full year earnings this fiscal year, which would be our third consecutive year having done so, and are well positioned to continue this trend next year."   

Gross profit margin was 35.8% for the quarter as compared with 37.0% for the third quarter of last year and 31.1% for the second quarter of this year. Selling, general and administrative expenses were 21.5% of net sales for the current quarter as compared with 25.1% in the third quarter ended October 31, 2011 and 22.4% for the second quarter of this year.   

Net sales for the nine months ended October 31, 2012 were $83.0 million, up 16% when compared with $71.8 million for the same period last year. Net income totaled $5.7 million and diluted earnings per share were $0.38 for the nine months ended October 31, 2012, increases of 14% and 12%, respectively, compared with net income of $5.0 million and diluted earnings per share of $0.34 for the same period last year.

On October 23, 2012, the Company announced a 2.1% increase in the quarterly dividend from $0.071 to $0.0725 per share, or $0.29 per share on an annualized basis. The increased dividend will be payable on December 17, 2012 to shareholders of record at the close of business on December 3, 2012. This is the twenty-second 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, December 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 Number 877-818-7738 or the International Dial-In Number 706-643-9333 (Conference ID 65160720) 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 20, 2012. To access the taped replay, call the US/Canada Dial-In Number 855-859-2056 or the International Dial-In Number 404-537-3406 and enter Conference ID 65160720.

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

October 31,

Nine Months Ended

October 31,

2012

2011

2012

2011

Net sales

$29,761,356

$25,245,131

$82,965,659

$71,764,377

Cost of goods sold

19,096,841

15,910,283

54,652,514

46,234,343

Gross profit

10,664,515

9,334,848

28,313,145

25,530,034

Operating expenses

    Selling

3,071,621

2,944,019

9,160,574

8,784,207

    General and administrative

3,343,147

3,387,617

10,735,827

9,437,146

Total selling, general and administrative

6,414,768

6,331,636

19,896,401

18,221,353

Income from operations

4,249,747

3,003,212

8,416,744

7,308,681

Interest expense

(41,470)

(47,153)

(125,868)

(145,862)

Other income

20,110

198,317

115,782

389,647

Income before taxes

4,228,387

3,154,376

8,406,658

7,552,466

Provision for taxes

1,437,652

1,072,490

2,737,226

2,567,839

Net income

$2,790,735

$2,081,886

$5,669,432

$4,984,627

Basic earnings per share

$.19

$.14

$.39

$.34

Diluted earnings per share

$.19

$.14

$.38

$.34

Average common shares outstanding:

    Basic shares

14,682,776

14,659,383

14,683,286

14,659,402

    Diluted shares

14,734,252

14,799,814

14,733,464

14,788,493

 

Met-Pro Corporation and Subsidiaries Consolidated Balance Sheets

October 31, 2012

January 31, 2012

Assets

(unaudited)

Current assets

    Cash and cash equivalents

$31,842,244

$34,581,394

    Short-term investments

1,022,266

764,061

    Accounts receivable, net of allowance for

      doubtful accounts of approximately

      $232,000 and $491,000, respectively

20,895,152

17,373,121

    Inventories

18,898,950

17,847,143

    Prepaid expenses, deposits and other current assets

1,863,546

1,683,486

    Deferred income taxes

167,399

186,329

        Total current assets

74,689,557

72,435,534

Property, plant and equipment, net

18,896,612

19,322,436

Goodwill

20,798,913

20,798,913

Other assets

2,654,974

2,952,332

        Total assets  

$117,040,056

$115,509,215

Liabilities and shareholders' equity

Current liabilities

    Current portion of debt

$379,592

$657,216

    Accounts payable

8,134,747

7,684,739

    Accrued salaries, wages and benefits

2,173,138

1,827,603

    Other accrued expenses

3,991,571

2,357,929

    Dividend payable

1,067,028

1,042,297

    Customers' advances

1,188,423

3,232,600

        Total current liabilities

16,934,499

16,802,384

Long-term debt

2,381,432

2,687,971

Accrued pension retirement benefits

9,307,757

10,618,047

Other non-current liabilities

58,039

56,391

Deferred income taxes

1,322,075

1,522,451

        Total liabilities

30,003,802

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

4,736,738

4,058,735

    Retained earnings

98,745,132

96,228,764

    Accumulated other comprehensive loss

(7,768,315)

(7,718,883)

    Treasury shares, at cost

(10,270,169)

(10,339,513)

        Total shareholders' equity

87,036,254

83,821,971

        Total liabilities and shareholders' equity  

$117,040,056

$115,509,215

 

Met-Pro Corporation and Subsidiaries Consolidated Business Segment Data

(unaudited)

Three Months Ended October 31,

    Nine Months Ended     October 31,

2012

2011

2012

2011

Net sales

    Product Recovery/Pollution Control Technologies

$13,604,696

$11,893,296

$37,298,932

$29,851,166

    Fluid Handling Technologies

10,634,005

7,346,897

28,349,511

24,307,152

    Mefiag Filtration Technologies

3,037,013

3,286,624

9,412,344

9,630,925

    Filtration/Purification Technologies

2,485,642

2,718,314

7,904,872

7,975,134

$29,761,356

$25,245,131

$82,965,659

$71,764,377

Income from operations

    Product Recovery/Pollution Control Technologies

$933,815

$1,064,314

$21,586

$534,986

    Fluid Handling Technologies

3,116,729

1,747,678

7,864,387

5,890,077

    Mefiag Filtration Technologies

123,525

127,022

419,338

517,572

    Filtration/Purification Technologies

75,678

64,198

111,433

366,046

$4,249,747

$3,003,212

$8,416,744

$7,308,681

 October 31,  2012

January 31, 2012

Identifiable assets

    Product Recovery/Pollution Control Technologies

$41,305,110

$36,444,763

    Fluid Handling Technologies

20,220,234

19,290,035

    Mefiag Filtration Technologies

14,995,354

14,017,572

    Filtration/Purification Technologies

8,071,433

8,368,652

84,592,131

78,121,022

    Corporate

32,447,925

37,388,193

$117,040,056

$115,509,215

 

 

 

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

Nine Months Ended October 31,

2012

2011

Cash flows from operating activities                             

    Net income

$5,669,432

$4,984,627

    Adjustments to reconcile net income to net

        cash provided by operating activities:

      Depreciation and amortization

1,498,255

1,433,018

      Stock-based compensation

747,347

539,478

      Deferred income taxes

(191,247)

(4,646)

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

1,080

(26,003)

      Allowance for doubtful accounts

(258,714)

53,654

      Changes in operating assets and liabilities:   

            Accounts receivable

(3,272,233)

(839,188)

            Inventories

(1,063,228)

(2,138,267)

            Prepaid expenses, deposits and other assets

(459,659)

(246,406)

            Accounts payable and accrued expenses

2,395,460

2,028,062

            Customers' advances

(2,045,097)

2,451,901

            Accrued pension retirement benefits

(1,310,290)

(2,747,053)

            Other non-current liabilities

1,647

1,647

            Net cash provided by operating activities

1,712,753

5,490,824

Cash flows from investing activities

    Proceeds from sale of property and equipment

33,848

    Acquisitions of property and equipment

(1,016,028)

(1,636,866)

    Purchases of investments

(1,022,266)

(1,010,534)

    Proceeds from maturities of investments

1,258,598

497,155

            Net cash used in investing activities

(779,696)

(2,116,397 )

Cash flows from financing activities

    Proceeds from new borrowings

222,778

426,802

    Reduction of debt

(766,686)

(625,413)

    Exercise of stock options

42,800

    Payment of dividends

(3,128,334)

(2,902,505)

    Purchase of treasury shares

(42,800)

            Net cash used in financing activities

(3,672,242)

(3,101,116 )

Effect of exchange rate changes on cash

35

34

Net (decrease) increase in cash and cash equivalents

(2,739,150)

273,345

Cash and cash equivalents at February 1

34,581,394

32,400,814

Cash and cash equivalents at October 31

$31,842,244

$32,674,159

 

SOURCE Met-Pro Corporation



RELATED LINKS

http://www.met-pro.com