Met-Pro Corporation Announces First Quarter Financial Results

- Net Sales up 13% Versus Last Year's First Quarter

- Net Income up 48% Versus Last Year's First Quarter

Jun 04, 2010, 08:00 ET from Met-Pro Corporation

HARLEYSVILLE, Pa., June 4 /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, 2010.

Net sales for the first quarter ended April 30, 2010 were $22.3 million, the second highest first quarter net sales in the Company's history, and up 13% from $19.6 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 $1.0 million and diluted earnings per share of $0.07 for the same period last year, increases of 48% and 43%, respectively.

New order bookings for the first quarter were up 17% to $22.2 million compared with $18.9 million for the first quarter last year. As a result, the Company's backlog of orders as of April 30, 2010 totaled $17.3 million compared with $14.5 million last year, an increase of 19%. Substantially all of the April 30, 2010 backlog is expected to be shipped during the current fiscal year.

"We are encouraged by the growth achieved in our solid first quarter results," stated De Hont. "Demand for Met-Pro's products continues to improve as evidenced by the 17% increase in first quarter new order bookings, which follows a 13% increase in new order bookings during the second half of last fiscal year when compared with the first half. Our gross margin for the first quarter came in at approximately 36%, which is up slightly from last year's first quarter. Cash flows from operating activities totaled $2.3 million, which increased our cash position at April 30, 2010 to $32.5 million, or $2.21 per diluted share, further solidifying our already strong balance sheet. The momentum in new order bookings, in combination with our steady quotation activity, gives us continued optimism about our future prospects."

On March 12, 2010, the Company paid a quarterly dividend of $0.06 per share to shareholders of record at the close of business on February 26, 2010. In addition, the Board of Directors, at their meeting on March 29, 2010, declared a quarterly dividend of $0.06 per share payable June 11, 2010 to shareholders of record at the close of business on May 28, 2010. This is the thirty-fifth 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 4, 2010, 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 74942496) 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 18, 2010. 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 74942496.

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.

Contact:

Investor Contact:

Gary J. Morgan,

Joseph Hassett, SVP

Senior Vice President of Finance, CFO

Gregory FCA Communications

215-723-6751

610-228-2110

Met-Pro Corporation

Consolidated Statement of Income

(unaudited)

Three Months Ended April 30,

2010

2009

Net sales

$22,277,077

$19,641,008

Cost of goods sold

14,295,538

12,628,040

Gross profit

7,981,539

7,012,968

Operating expenses

    Selling

2,932,897

2,528,532

    General and administrative

2,945,602

3,012,327

5,878,499

5,540,859

Income from operations

2,103,040

1,472,109

Interest expense

(82,510)

(53,823  )

Other income, net

117,468

13,965

Income before taxes

2,137,998

1,432,251

Provision for taxes

726,920

479,802

Net income

$1,411,078

$952,449

Basic earnings per share

$.10

$.07

Diluted earnings per share

$.10

$.07

Average common shares outstanding:

    Basic shares

14,619,000

14,600,109

    Diluted shares

14,693,035

14,645,792

Met-Pro Corporation

Consolidated Balance Sheet

April 30, 2010

January 31, 2010

Assets

(unaudited)

Current assets

    Cash and cash equivalents

$32,456,543

$31,387,108

    Accounts receivable, net of allowance for

     doubtful accounts of approximately

     $185,000 and $204,000, respectively

15,592,477

14,011,950

    Inventories

15,680,708

16,136,521

    Prepaid expenses, deposits and other current assets

1,418,008

1,709,664

         Total current assets

65,147,736

63,245,243

Property, plant and equipment, net

19,500,572

19,860,751

Goodwill

20,798,913

20,798,913

Other assets

730,367

703,452

         Total assets  

$106,177,588

$104,608,359

Liabilities and shareholders' equity

Current liabilities

    Current portion of long-term debt

$528,761

$534,251

    Accounts payable

5,263,975

4,297,936

    Accrued salaries, wages and expenses

4,064,286

3,425,691

    Dividend payable

877,200

876,279

    Customers' advances

371,787

882,637

    Deferred income taxes

181,253

181,253

         Total current liabilities

11,287,262

10,198,047

Long-term debt

3,375,093

3,536,755

Other non-current liabilities

8,292,854

8,179,410

Deferred income taxes

1,712,508

1,716,563

         Total liabilities

24,667,717

23,630,775

Shareholders' equity

    Common shares, $.10 par value; 36,000,000 shares

     authorized, 15,928,679 shares issued, of which

     1,308,687 and 1,311,664 shares were reacquired

     and held in treasury at the respective dates

1,592,868

1,592,868

    Additional paid-in capital

3,154,348

2,988,950

    Retained earnings

91,195,957

90,662,820

    Accumulated other comprehensive loss

(3,828,041)

(3,679,641)

    Treasury shares, at cost

(10,605,261)

(10,587,413)

         Total shareholders' equity

81,509,871

80,977,584

         Total liabilities and shareholders' equity  

$106,177,588

$104,608,359

Met-Pro Corporation

Consolidated Business Segment Data

(unaudited)

Three Months Ended April 30,

2010

2009

Net sales

 Product Recovery/Pollution Control Technologies

$11,013,225

$7,569,982

 Fluid Handling Technologies

6,530,571

6,978,462

 Mefiag Filtration Technologies

2,434,249

2,487,250

 Filtration/Purification Technologies

2,299,032

2,605,314

$22,277,077

$19,641,008

Income (loss) from operations

 Product Recovery/Pollution Control Technologies

$516,161

$145,203

 Fluid Handling Technologies

1,288,796

1,306,005

 Mefiag Filtration Technologies

206,519

(15,403)

 Filtration/Purification Technologies

91,564

36,304

$2,103,040

$1,472,109

April 30,

2010

January 31,

2010

Identifiable assets

 Product Recovery/Pollution Control Technologies

$35,322,331

$34,466,168

 Fluid Handling Technologies

17,555,792

18,068,428

 Mefiag Filtration Technologies

12,531,954

12,257,281

 Filtration/Purification Technologies

8,211,089

8,257,837

73,621,166

73,049,714

 Corporate

32,556,422

31,558,645

$106,177,588

$104,608,359

Met-Pro Corporation

Consolidated Statement of Cash Flows

(unaudited)

Three Months Ended April 30,

2010

2009

Cash flows from operating activities

 Net income

$1,411,078

$952,449

 Adjustments to reconcile net income to net

    cash provided by operating activities:

  Depreciation and amortization

445,252

480,672

  Deferred income taxes

(597)

(597)

  (Gain) on sales of property and equipment, net

(12,195)

  Stock-based compensation

161,472

164,876

  Allowance for doubtful accounts

(18,557)

42,941

  Changes in operating assets and liabilities: 

      Accounts receivable

(1,556,207)

5,695,089

      Inventories

395,944

(381,726)

      Prepaid expenses, deposits and other assets

250,155

274,636

     Accounts payable and accrued expenses

1,608,371

(1,378,851)

     Customers' advances

(511,077)

27,013

     Other non-current liabilities

113,443

84,276

      Net cash provided by operating activities

2,299,277

5,948,583

Cash flows from investing activities

 Proceeds from sales of property and equipment

18,882

 Acquisitions of property and equipment

(210,475)

(797,497)

      Net cash used in investing activities

(210,475)

(778,615)

Cash flows from financing activities

 Proceeds from new borrowings

485,336

 Reduction of debt

(132,845)

(104,440)

 Exercise of stock options

212,744

 Payment of dividends

(877,021)

(876,007)

 Purchase of treasury shares

(226,666)

      Net cash used in financing activities

(1,023,788)

(495,111)

Effect of exchange rate changes on cash

4,421

22,207

Net increase in cash and cash equivalents

1,069,435

4,697,064

Cash and cash equivalents at February 1

31,387,108

21,749,653

Cash and cash equivalents at April 30

$32,456,543

$26,446,717

SOURCE Met-Pro Corporation



RELATED LINKS

http://www.met-pro.com