Attached files
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| EX-99.2 - TRANSCRIPT OF CONFERENCE CALL HELD DECEMBER 2, 2010 - MET PRO CORP | mpr8k20101203ex992.htm |
| 8-K - FORM 8-K, THIRD QUARTER FINANCIAL RESULTS - MET PRO CORP | mpr8k20101203.htm |
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Date:
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December 2, 2010
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For Release:
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Immediate
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Contact:
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Investor Contact:
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Gary J. Morgan,
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Joseph Hassett, VP
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Senior Vice President of Finance, CFO
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Gregory FCA Communications
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215-723-6751
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610-228-2110
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Met-Pro Corporation Announces Third Quarter Financial Results
· Earnings Per Share up 43% Versus Last Year’s Third Quarter
Harleysville, PA, December 2, 2010 – 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.
Continued Page 2
Met-Pro Corporation/Page 2
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.
Continued Page 3
Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Statements of Income
(unaudited)
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Three Months Ended
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Nine Months Ended
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||||||||
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October 31,
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October 31,
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||||||||
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2010
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2009
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2010
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2009
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||||||
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Net sales
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$21,384,674
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$19,807,781
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$65,098,637
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$60,334,372
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|||||
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Cost of goods sold
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13,589,638
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13,131,244
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41,478,910
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39,538,914
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|||||
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Gross profit
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7,795,036
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6,676,537
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23,619,727
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20,795,458
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|||||
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Operating expenses
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|||||||||
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Selling
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2,849,221
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2,366,455
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8,549,038
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7,415,388
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|||||
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General and administrative
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2,763,913
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2,771,681
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8,478,717
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8,599,958
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|||||
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5,613,134
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5,138,136
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17,027,755
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16,015,346
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||||||
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Income from operations
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2,181,902
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1,538,401
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6,591,972
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4,780,112
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|||||
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Interest expense
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(50,201
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)
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(58,994
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)
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(159,887
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)
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(166,449
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)
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Other income, net
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18,601
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61,689
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208,834
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138,441
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|||||
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Income before taxes
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2,150,302
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1,541,096
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6,640,919
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4,752,104
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|||||
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Provision for taxes
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731,103
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516,266
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2,257,912
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1,591,957
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|||||
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Net income
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$1,419,199
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$1,024,830
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$4,383,007
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$3,160,147
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|||||
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Basic earnings per share
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$.10
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$.07
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$.30
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$.22
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|||||
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Diluted earnings per share
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$.10
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$.07
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$.30
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$.22
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Average common shares outstanding:
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|||||||||
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Basic shares
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14,620,439
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14,600,109
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14,621,802
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14,600,109
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Diluted shares
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14,711,056
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14,676,525
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14,717,084
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14,676,297
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|||||
Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Balance Sheets
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October 31,
2010
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January 31,
2010
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|||||
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Assets
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(unaudited)
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|||||
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Current assets
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||||||
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Cash and cash equivalents
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$34,195,031
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$31,387,108
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||||
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Accounts receivable, net of allowance for
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||||||
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doubtful accounts of approximately
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||||||
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$173,000 and $204,000, respectively
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13,760,732
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14,011,950
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Inventories
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15,951,368
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16,136,521
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Prepaid expenses, deposits and other current assets
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1,664,162
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1,709,664
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Total current assets
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65,571,293
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63,245,243
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Property, plant and equipment, net
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19,853,258
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19,860,751
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Goodwill
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20,798,913
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20,798,913
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Other assets
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1,761,399
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703,452
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Total assets
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$107,984,863
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$104,608,359
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Liabilities and shareholders’ equity
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||||||
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Current liabilities
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||||||
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Current portion of long-term debt
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$534,811
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$534,251
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||||
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Accounts payable
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5,544,724
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4,297,936
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||||
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Accrued salaries, wages and expenses
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4,194,457
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3,425,691
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Dividend payable
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966,098
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876,279
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Customers’ advances
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561,250
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882,637
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Deferred income taxes
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181,253
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181,253
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||||
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Total current liabilities
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11,982,593
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10,198,047
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||||
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Long-term debt
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3,255,522
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3,536,755
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||||
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Other non-current liabilities
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8,147,488
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8,179,410
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||||
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Deferred income taxes
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1,668,671
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1,716,563
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||||
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Total liabilities
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25,054,274
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23,630,775
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||||
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Shareholders’ equity
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||||||
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Common shares, $.10 par value; 36,000,000 shares
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||||||
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authorized, 15,928,679 shares issued, of which
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||||||
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1,290,838 and 1,311,664 shares were reacquired
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||||||
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and held in treasury at the respective dates
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1,592,868
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1,592,868
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||||
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Additional paid-in capital
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3,340,332
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2,988,950
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Retained earnings
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92,324,568
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90,662,820
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||||
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Accumulated other comprehensive loss
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(3,760,013
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)
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(3,679,641
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)
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Treasury shares, at cost
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(10,567,166
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)
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(10,587,413
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)
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Total shareholders’ equity
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82,930,589
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80,977,584
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||||
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Total liabilities and shareholders’ equity
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$107,984,863
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$104,608,359
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Continued Page 5
Met-Pro Corporation/Page 5
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
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Three Months Ended
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Nine Months Ended
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||||||||
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October 31,
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October 31,
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||||||||
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2010
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2009
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2010
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2009
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||||||
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Net sales
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|||||||||
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Product Recovery/Pollution Control Technologies
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$9,204,381
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$9,012,363
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$29,924,788
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$26,900,405
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|||||
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Fluid Handling Technologies
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7,031,096
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5,781,338
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20,070,626
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18,491,303
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|||||
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Mefiag Filtration Technologies
|
2,478,656
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2,502,795
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7,421,375
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6,981,727
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|||||
|
Filtration/Purification Technologies
|
2,670,541
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2,511,285
|
7,681,848
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7,960,937
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|||||
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$21,384,674
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$19,807,781
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$65,098,637
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$60,334,372
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||||||
| Income (loss) from operations | |||||||||
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Product Recovery/Pollution Control Technologies
|
$324,695
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$561,966
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$1,483,092
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$1,610,321
|
|||||
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Fluid Handling Technologies
|
1,563,262
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833,094
|
4,166,526
|
3,110,175
|
|||||
|
Mefiag Filtration Technologies
|
89,283
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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
|
||||||||
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Identifiable Assets
|
|||||||||
|
Product Recovery/Pollution Control Technologies
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$33,684,030
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$34,466,168
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|||||||
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Fluid Handling Technologies
|
17,689,173
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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
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31,558,645
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|||||||
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$107,984,863
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$104,608,359
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||||||||
Continued Page 6
Met-Pro Corporation/Page 6
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
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)
|
||
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(Gain) on sales of property and equipment, net
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(13,236
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)
|
(13,695
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)
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||
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Stock-based compensation
|
484,416
|
494,625
|
||||
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Allowance for doubtful accounts
|
(31,473
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)
|
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
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)
|
||
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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
|
|||
###