MET PRO CORP - FORM 8-K - EX-99.1 - RESULTS OF OPERATIONS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2011. - December 9, 2011

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EX-99.2 - TRANSCRIPT OF CONFERENCE CALL HELD DECEMBER 8, 2011 - MET PRO CORPmpr8k20111208ex992.htm
8-K - FORM 8-K - MET PRO CORPmpr8k20111208.htm
 
 
Date: December 8, 2011   
For Release: Immediate  
Contact:
Investor Contact:
  
 
Raymond J. De Hont
Joseph Hassett, SVP
 
Chairman and Chief Executive Officer
Gregory FCA Communications
 
215-723-6751
610-228-2110

Met-Pro Corporation Announces Third Quarter Financial Results

●    Net Sales Up 18% Versus Last Year’s Third Quarter
●     Net Income Up 47% Versus Last Year’s Third Quarter
 
Harleysville, PA, December 8, 2011 – 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, 2011.
 
Net sales for the third quarter ended October 31, 2011 were $25.2 million, an increase of 18% compared with net sales of $21.4 million for the same quarter last year. Net income totaled $2.1 million and diluted earnings per share were $0.14 for the third quarter, compared with net income of $1.4 million and diluted earnings per share of $0.10 for the same period last year, increases of 47% and 40%, respectively.
 
New order bookings for the third quarter totaled $27.5 million, an 11% increase compared with the $24.8 million for the third quarter last year. As a result, the Company’s backlog of orders totaled $28.6 million as of October 31, 2011, an increase of 35% when compared with $21.2 million last year.
 
“Consolidated results in the third quarter reflect strong top and bottom line growth driven by increased new order bookings delivered through our expanded sales and marketing organization,” said De Hont. “In particular, we have benefitted from a significant improvement in our large project new order bookings, which have contributed to a strong rebound in our Product Recovery/Pollution Control segment this quarter. We are encouraged by the improvement in gross margin during the third quarter, 37% versus 36% for last year’s third quarter, as well as the improvement in income from operations as a percentage of sales, 12% versus 10% for last year’s third quarter. Demand for Met-Pro’s products remains strong as evidenced by the 11% increase in third quarter new order bookings, which followed a 33% increase in new order bookings during the second quarter ended July 31, 2011. The continued strength in new order bookings, together with our solid backlog and steady quotation activity, gives us continued optimism about our future prospects.”
 
Net sales for the nine months ended October 31, 2011 increased 10% to $71.8 million compared with $65.1 million for the same period last year. Net income totaled $5.0 million and diluted earnings per share were $0.34 for the nine months ended October 31, 2011 compared with net income of $4.4 million and diluted earnings per share of $0.30 for the same period last year, increases of 14% and 13%, respectively.
 
New order bookings for the nine months ended October 31, 2011 were up 19% to $82.6 million compared with $69.2 million for the same period last year.
 
With the continued growth in operating cash flows and the resulting cumulative cash balance, the Board of Directors, at their  meeting on October 19, 2011, increased the quarterly dividend by 8% from $0.066 to $0.071 per share, or $0.284 per share on an annualized basis. The increased dividend will be payable on December 16, 2011 to shareholders of record at the close of business on December 2, 2011.  This is the thirty-seventh consecutive year that Met-Pro Corporation has paid either a cash or stock dividend.  With this increase the Company, by the end of this fiscal year, will have paid approximately $3.9 million in dividends in addition to having elected to contribute $2.9 million to their salary and hourly pension plans during the first quarter to further reduce the unfunded pension liability.
 
 
Continued Page 2
 
Met-Pro Corporation/Page 2
 
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 8, 2011, 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 27178727) 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 22, 2011. 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 27178727.
 
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.
 
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)

   
Three Months Ended
  
Nine Months Ended
  
   
October 31,
  
October 31,
  
   
2011
  
2010
  
   2011
  
   2010
  
 
Net sales
$25,245,131
  
$21,384,674
  
$71,764,377
  
$65,098,637
  
 
Cost of goods sold
15,910,283
  
13,589,638
  
46,234,343
  
41,478,910
  
 
Gross profit
9,334,848
  
7,795,036
  
25,530,034
  
23,619,727
  
                   
 
Operating expenses
        
 
  
 
  
 
Selling
2,944,019
  
2,849,221
  
8,784,207
  
8,549,038
  
 
General and administrative
3,387,617
  
2,763,913
  
9,437,146
  
8,478,717
  
   
6,331,636
  
5,613,134
  
18,221,353
  
17,027,755
  
 
Income from operations
3,003,212
  
2,181,902
  
7,308,681
  
6,591,972
  
                   
 
Interest expense
(47,153
)
(50,201
)
(145,862
)
(159,887
)
 
Other income, net
198,317
  
18,601
  
389,647
  
208,834
  
 
Income before taxes
3,154,376
  
2,150,302
  
7,552,466
  
6,640,919
  
                   
 
Provision for taxes
1,072,490
  
731,103
  
2,567,839
  
2,257,912
  
                   
 
Net income
$2,081,886
  
$1,419,199
  
$4,984,627
  
$4,383,007
  
                   
 
Basic earnings per share
$.14
  
$.10
  
$.34
  
$.30
  
 
Diluted earnings per share
$.14
  
$.10
  
$.34
  
$.30
  
                   
 
Average common shares outstanding:
                
 
Basic shares
14,659,383
  
14,620,439
  
14,659,402
  
14,621,802
  
 
Diluted shares
14,799,814
  
14,711,056
  
14,788,493
  
14,717,084
  


 

 

 

 

 

 

 

 

 
 

 
 

 

 

 
 
Continued Page 4
 
Met-Pro Corporation/Page 4
 
Met-Pro Corporation
Consolidated Balance Sheets

   
October 31,
  
January 31,
  
   
2011
   2011  
Assets  
(unaudited)
      
Current assets
          
Cash and cash equivalents
  
$32,674,159
  
$32,400,814
  
Short-term investments
  
764,061
  
497,155
  
Accounts receivable, net of allowance for
          
doubtful accounts of approximately
          
$498,000 and $444,000, respectively
  
16,134,931
  
15,311,322
  
Inventories
  
17,653,829
  
15,474,430
  
Prepaid expenses, deposits and other current assets
  
1,667,011
  
1,578,176
  
Deferred income taxes
  
85,342
  
84,155
  
Total current assets
  
68,979,333
  
65,346,052
  
           
Property, plant and equipment, net
  
20,178,001
  
19,863,031
  
Goodwill
  
20,798,913
  
20,798,913
  
Other assets
  
2,367,577
  
2,038,332
  
Total assets
  
$112,323,824
  
$108,046,328
  
           
           
Liabilities and shareholders’ equity
          
Current liabilities
          
Current portion of debt
  
$639,950
  
$532,540
  
Accounts payable
  
6,484,748
  
4,864,724
  
Accrued salaries, wages and benefits
  
1,620,519
  
1,650,314
  
Other accrued expenses
  
2,765,020
  
2,286,043
  
Dividend payable
  
1,040,828
  
967,445
  
Customers’ advances
  
3,357,674
  
907,107
  
Total current liabilities
  
15,908,739
  
11,208,173
  
           
Long-term debt
  
2,773,613
  
3,011,988
  
Accrued pension retirement benefits
  
3,806,208
  
6,553,262
  
Other non-current liabilities
  
55,842
  
54,195
  
Deferred income taxes
  
2,716,481
  
2,745,786
  
Total liabilities
  
25,260,883
  
23,573,404
  
           
Shareholders’ equity
          
Common shares, $.10 par value; 36,000,000 shares
          
authorized, 15,928,679 shares issued, of which
          
1,269,134 and 1,270,417 shares were reacquired
          
and held in treasury at the respective dates
  
1,592,868
  
1,592,868
  
Additional paid-in capital
  
3,989,227
  
3,448,249
  
Retained earnings
  
95,121,987
  
93,113,247
  
Accumulated other comprehensive loss
  
(3,159,968
)
(3,201,767
)
Treasury shares, at cost
  
(10,481,173
)
(10,479,673
)
Total shareholders’ equity
  
87,062,941
  
84,472,924
  
Total liabilities and shareholders’ equity
  
$112,323,824
  
$108,046,328
  
 




 

 

 
 
Continued Page 5
 
Met-Pro Corporation/Page 5
 
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)

   
Three Months Ended
  
Nine Months Ended
   
October 31,
  
October 31,
   
 2011
  
 2010
    
        2011
  
        2010
  
Net sales
                    
Product Recovery/Pollution Control Technologies
  
$11,893,296
  
$9,204,381
    
$29,851,166
  
$29,924,788
  
Fluid Handling Technologies
  
7,346,897
  
7,031,096
    
24,307,152
  
20,070,626
  
Mefiag Filtration Technologies
  
3,286,624
  
2,478,656
    
9,630,925
  
7,421,375
  
Filtration/Purification Technologies
  
2,718,314
  
2,670,541
    
7,975,134
  
7,681,848
  
   
$25,245,131
  
$21,384,674
    
$71,764,377
  
$65,098,637
  
                     
Income from operations
                    
Product Recovery/Pollution Control Technologies
  
$1,064,314
  
$324,695
    
$534,986
  
$1,483,092
  
Fluid Handling Technologies
  
1,747,678
  
1,563,262
    
5,890,077
  
4,166,526
  
Mefiag Filtration Technologies
  
127,022
  
89,283
    
517,572
  
459,248
  
Filtration/Purification Technologies
  
64,198
  
204,662
    
366,046
  
483,106
  
   
$3,003,212
  
$2,181,902
    
$7,308,681
  
$6,591,972
  
                     
             
October 31,
2011
  
January 31,
 2011
  
Identifiable Assets
                    
Product Recovery/Pollution Control Technologies
            
$35,446,058
  
$34,003,251
  
Fluid Handling Technologies
            
18,855,469
  
18,114,257
  
Mefiag Filtration Technologies
            
14,476,332
  
12,814,143
  
Filtration/Purification Technologies
            
8,376,056
  
8,369,385
  
             
77,153,915
  
73,301,036
  
Corporate
            
35,169,909
  
34,745,292
  
             
$112,323,824
  
$108,046,328
  







 

 








 









 
 
Continued Page 6
 
Met-Pro Corporation/Page 6
 
Met-Pro Corporation
Consolidated Statements of Cash Flows
(unaudited)

   
Nine Months Ended October 31,
   
2011
2010
Cash flows from operating activities
          
Net income
  
$4,984,627
  
$4,383,007
  
Adjustments to reconcile net income to net
          
  cash provided by operating activities:
          
Depreciation and amortization
  
1,433,018
  
1,344,262
  
Deferred income taxes
  
(4,646
)
(1,809
)
(Gain) on sales of property and equipment, net
  
(26,003
)
(13,236
)
Stock-based compensation
  
539,478
  
484,416
  
Allowance for doubtful accounts
  
53,654
  
(31,473
)
Changes in operating assets and liabilities:
          
Accounts receivable
  
(839,188
)
364,097
  
Inventories
  
(2,138,267
)
214,319
  
Prepaid expenses, deposits and other assets
  
(246,406
)
(269,599
)
Accounts payable and accrued expenses
  
2,028,062
  
1,839,376
  
Customers’ advances
  
2,451,901
  
(324,249
)
Accrued pension retirement benefits
  
(2,747,053
)
(33,5699
)
Other non-current liabilities
  
1,647
  
1,647
  
           
Net cash provided by operating activities
  
5,490,824
  
7,957,189
  
           
Cash flows from investing activities
          
Proceeds from sales of property and equipment
  
33,848
  
36,037
  
Acquisitions of property and equipment
  
(1,636,866
)
(1,128,403
)
Purchase of investments
  
(1,010,534
)
(497,155
)
Proceeds from maturities of investments
  
497,155
  
240,893
  
Payment for acquisition of business
  
–
  
(955,268
)
               
Net cash used in investing activities
  
(2,116,397
)
(2,303,896
)
           
Cash flows from financing activities
          
Proceeds from new borrowing
  
426,802
  
189,074
  
Reduction of debt
  
(625,413
)
(584,864
)
Exercises of stock options
  
42,800
  
547,232
  
Payments of dividends
  
(2,902,505
)
(2,631,441
)
Purchases of treasury shares
  
(42,800
)
(660,019
)
              
Net cash used in financing activities
  
(3,101,116
)
(3,140,018
)
Effect of exchange rate changes on cash
  
34
  
38,386
  
           
Net increase in cash and cash equivalents
  
273,345
  
2,551,661
  
           
Cash and cash equivalents at February 1
  
32,400,814
  
30,662,104
  
           
Cash and cash equivalents at October 31
 
$32,674,159
  
$33,213,765
  



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