Met-Pro Corporation Announces Third Quarter Financial Results

-- Earnings Per Share up 43% Versus Last Year's Third Quarter

Dec 02, 2010, 08:00 ET from Met-Pro Corporation

HARLEYSVILLE, Pa., Dec. 2, 2010 /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 third quarter ended October 31, 2010.

Net sales for the third quarter ended October 31, 2010 were up 8% to $21.4 million compared with $19.8 million for the third quarter last year. Net income totaled $1.4 million and diluted earnings per share were $0.10 for the third 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 38% and 43%, respectively.

New order bookings for the third quarter were $24.8 million, the best quarterly new order bookings total this fiscal year. As a result, the Company's backlog of orders as of October 31, 2010 totaled $21.2 million compared with $18.9 million last year, an increase of 12%. The majority of the October 31, 2010 backlog is expected to be shipped during the current fiscal year.

"We are encouraged by our solid third quarter new order bookings and our recent success in closing several large projects," stated De Hont. "We are also encouraged by the improvement in gross margin during the third quarter, 36% versus 34% for last year's third quarter, as well as the improvement in income from operations as a percentage of sales, 10% versus 8% for last year's third quarter. The gradual improvement in global economic conditions, together with our steady quotation activity and underlying fundamental strength of our business, gives us continued optimism about our future prospects."

Net sales for the nine months ended October 31, 2010 were up 8% to $65.1 million compared with $60.3 million for the same period last year. Net income totaled $4.4 million and diluted earnings per share were $0.30 for the nine months ended October 31, 2010 compared with net income of $3.2 million and diluted earnings per share of $0.22 for the same period last year, increases of 39% and 36%, respectively.  

During the first nine months of the current fiscal year, the Company generated $8.0 million in cash flow from operating activities, resulting in a $34.2 million cash position on October 31, 2010.  In the third quarter, the Company used its cash flow to increase the dividend by 10% and to acquire substantially all of the assets, including the patents and technology, of Bio-Reaction Industries, LLC, a pioneer in environmentally friendly air pollution control systems. The Company also continues to use its cash flow to fund capital projects and research and development.

At their meeting on October 20, 2010, the Board of Directors increased the quarterly dividend by 10% from $0.06 to $0.066 per share. This equates to $0.264 per share on an annualized basis. The increased dividend will be payable on December 17, 2010 to shareholders of record at the close of business on December 3, 2010. 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, December 2, 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 23944290) 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 15, 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 23944290.

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 Statements of Income

(unaudited)

Three Months Ended October 31,

  Nine Months Ended   October 31,

2010

2009

2010

2009

Net sales

$21,384,674

$19,807,781

$65,098,637

$60,334,372

Cost of goods sold

13,589,638

13,131,244

41,478,910

39,538,914

Gross profit

7,795,036

6,676,537

23,619,727

20,795,458

Operating expenses

 Selling

2,849,221

2,366,455

8,549,038

7,415,388

 General and administrative

2,763,913

2,771,681

8,478,717

8,599,958

5,613,134

5,138,136

17,027,755

16,015,346

Income from operations

2,181,902

1,538,401

6,591,972

4,780,112

Interest expense

(50,201)

(58,994)

(159,887)

(166,449)

Other income, net

18,601

61,689

208,834

138,441

Income before taxes

2,150,302

1,541,096

6,640,919

4,752,104

Provision for taxes

731,103

516,266

2,257,912

1,591,957

Net income

$1,419,199

$1,024,830

$4,383,007

$3,160,147

Basic earnings per share

$.10

$.07

$.30

$.22

Diluted earnings per share

$.10

$.07

$.30

$.22

Average common shares outstanding:

 Basic shares

14,620,439

14,600,109

14,621,802

14,600,109

 Diluted shares

14,711,056

14,676,525

14,717,084

14,676,297

Met-Pro Corporation Consolidated Balance Sheets

October 31, 2010

January 31, 2010

Assets

(unaudited)

Current assets

 Cash and cash equivalents

$34,195,031

$31,387,108

 Accounts receivable, net of allowance for

  doubtful accounts of approximately

  $173,000 and $204,000, respectively

13,760,732

14,011,950

 Inventories

15,951,368

16,136,521

 Prepaid expenses, deposits and other current assets

1,664,162

1,709,664

    Total current assets

65,571,293

63,245,243

Property, plant and equipment, net

19,853,258

19,860,751

Goodwill

20,798,913

20,798,913

Other assets

1,761,399

703,452

    Total assets  

$107,984,863

$104,608,359

Liabilities and shareholders' equity

Current liabilities

 Current portion of long-term debt

$534,811

$534,251

 Accounts payable

5,544,724

4,297,936

 Accrued salaries, wages and expenses

4,194,457

3,425,691

 Dividend payable

966,098

876,279

 Customers' advances

561,250

882,637

 Deferred income taxes

181,253

181,253

    Total current liabilities

11,982,593

10,198,047

Long-term debt

3,255,522

3,536,755

Other non-current liabilities

8,147,488

8,179,410

Deferred income taxes

1,668,671

1,716,563

    Total liabilities

25,054,274

23,630,775

Shareholders' equity

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

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

  1,290,838 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

3,340,332

2,988,950

 Retained earnings

92,324,568

90,662,820

 Accumulated other comprehensive loss

(3,760,013)

(3,679,641)

 Treasury shares, at cost

(10,567,166)

(10,587,413)

    Total shareholders' equity

82,930,589

80,977,584

    Total liabilities and shareholders' equity  

$107,984,863

$104,608,359

Met-Pro Corporation Consolidated Business Segment Data

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2010

2009

2010

2009

Net sales

 Product Recovery/Pollution Control Technologies

$9,204,381

$9,012,363

$29,924,788

$26,900,405

 Fluid Handling Technologies

7,031,096

5,781,338

20,070,626

18,491,303

 Mefiag Filtration Technologies

2,478,656

2,502,795

7,421,375

6,981,727

 Filtration/Purification Technologies

2,670,541

2,511,285

7,681,848

7,960,937

$21,384,674

$19,807,781

$65,098,637

$60,334,372

Income (loss) from operations

 Product Recovery/Pollution Control Technologies

$324,695

$561,966

$1,483,092

$1,610,321

 Fluid Handling Technologies

1,563,262

833,094

4,166,526

3,110,175

 Mefiag Filtration Technologies

89,283

47,062

459,248

(111,372)

 Filtration/Purification Technologies

204,662

96,279

483,106

170,988

$2,181,902

$1,538,401

$6,591,972

$4,780,112

October 31, 2010

January 31, 2010

Identifiable Assets

 Product Recovery/Pollution Control Technologies

$33,684,030

$34,466,168

 Fluid Handling Technologies

17,689,173

18,068,428

 Mefiag Filtration Technologies

13,118,549

12,257,281

 Filtration/Purification Technologies

8,352,155

8,257,837

72,843,907

73,049,714

 Corporate

35,140,956

31,558,645

$107,984,863

$104,608,359

Met-Pro Corporation

Consolidated Statements of Cash Flows

(unaudited)

Nine Months Ended October 31,

2010

2009

Cash flows from operating activities

 Net income

$4,383,007

$3,160,147

 Adjustments to reconcile net income to net

  cash provided by operating activities:

  Depreciation and amortization

1,344,262

1,458,401

  Deferred income taxes

(1,809)

(1,792)

  (Gain) on sales of property and equipment, net

(13,236)

(13,695)

  Stock-based compensation

484,416

494,625

  Allowance for doubtful accounts

(31,473)

101,492

  Changes in operating assets and liabilities:

      Accounts receivable

364,097

6,910,662

      Inventories

214,319

3,832,976

      Prepaid expenses, deposits and other assets

(269,599)

251,165

     Accounts payable and accrued expenses

1,839,376

(1,385,430)

     Customers' advances

(324,249)

298,448

     Other non-current liabilities

(31,922)

(354,793)

      Net cash provided by operating activities

7,957,189

14,752,206

Cash flows from investing activities

 Proceeds from sales of property and equipment

36,037

20,382

 Acquisitions of property and equipment

(1,128,403)

(1,826,975)

 Payment for acquisition of business

(955,268)

      Net cash used in investing activities

(2,047,634  )

(1,806,593)

Cash flows from financing activities

 Proceeds from new borrowing

189,074

485,336

 Reduction of debt

(584,864)

(373,336)

 Exercises of stock options

547,232

 Payments of dividends

(2,631,441)

(2,628,020)

 Purchases of treasury shares

(660,019)

      Net cash used in financing activities

(3,140,018)

(2,516,020)

Effect of exchange rate changes on cash

38,386

106,550

Net increase in cash and cash equivalents

2,807,923

10,536,143

Cash and cash equivalents at February 1

31,387,108

21,749,653

Cash and cash equivalents at October 31

$34,195,031

$32,285,796

SOURCE Met-Pro Corporation



RELATED LINKS

http://www.met-pro.com