Attached files
| file | filename |
|---|---|
| EX-99.2 - TRANSCRIPT OF EARNINGS RELEASE CONFERENCE CALL HELD SEPTEMBER 6, 2012 - MET PRO CORP | mpr8k20120906ex992.htm |
| 8-K - FORM 8-K - MET PRO CORP | mpr8k20120906.htm |
Exhibit 99.1
| Date: | September 6, 2012 | |
| For Release: | Immediate | |
|
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 Announces Second Quarter Financial Results
Net Sales Grow 21%, Orders Growth Leads to 29% Backlog Increase
Harleysville, PA, September 6, 2012 – Met-Pro Corporation (NYSE: MPR-News) today announced the Company’s financial results for the second quarter ended July 31, 2012.
Net sales for the second quarter ended July 31, 2012 were $28.0 million, an increase of 21% compared with net sales of $23.1 million for the same quarter last year. Net income for the second quarter ended July 31, 2012 was $1.6 million, or $0.11 per diluted share, compared with net income of $1.5 million, or $0.10 per diluted share, for the same period last year.
New orders for the second quarter were $31.5 million, a 7% increase when compared with $29.5 million for the second quarter last year. As a result, the Company’s backlog of orders increased by $3.5 million for the quarter and totaled $33.9 million as of July 31, 2012, an increase of 29% when compared with $26.3 million at the same point last year. The vast majority of the July 31, 2012 backlog is expected to be shipped during the current fiscal year.
“The significant increase in revenues and growth in bookings and backlog in the quarter are strong indicators that our marketing strategy has been effective in increasing share in our targeted end markets,” stated Raymond J. De Hont, Chairman and Chief Executive Officer. “Each of our business segments contributed to the strong top line growth, with three of our business segments generating operating profits that led to a 10% increase in earnings in the quarter compared with the same period a year ago. Somewhat offsetting these achievements were results in our Product Recovery/Pollution Control Technologies segment, wherein weaker margins on a small number of contracts led to a decrease in both segment and consolidated gross margins in the quarter. We are encouraged by our success penetrating new markets and expanding our customer base. By continuing to strengthen our organization, we will be able to more effectively leverage this increasing market success to improve returns. The strong interest in our products, together with our solid backlog, allows us to remain optimistic about our future prospects.”
Net sales for the six months ended July 31, 2012 were $53.2 million compared with $46.5 million for the same period last year, an increase of 14%. Net income for the first half ended July 31, 2012 totaled $2.9 million, or $0.20 per fully diluted share, both essentially unchanged from the first half of last fiscal year. New order bookings for the six months ended July 31, 2012 were up 6% to $58.5 million compared with $55.1 million for the same period last year.
On June 15, 2012, the Company paid a quarterly dividend of $0.071 per share to shareholders of record at the close of business on June 1, 2012. In addition, the Board of Directors, at their meeting on June 6, 2012, declared a quarterly dividend of $0.071 per share payable September 14, 2012 to shareholders of record at the close of business on August 31, 2012. This is the twenty-first 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, September 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.
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 17040712) 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 September 20, 2012. 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 17040712.
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.
Continued Page 3
Met-Pro Corporation/Page 3
Met-Pro Corporation
Consolidated Statements of Income
(unaudited)
| Three Months Ended
July 31,
|
Six Months Ended
July 31,
|
||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||
|
Net sales
|
$27,997,242
|
$23,089,343
|
$53,204,303
|
$46,519,246
|
|||||
|
Cost of goods sold
|
19,299,138
|
14,952,362
|
35,555,673
|
30,324,060
|
|||||
|
Gross profit
|
8,698,104
|
8,136,981
|
17,648,630
|
16,195,186
|
|||||
|
Operating expenses
|
|||||||||
|
Selling
|
3,029,372
|
2,924,062
|
6,088,953
|
5,840,188
|
|||||
|
General and administrative
|
3,248,591
|
2,990,426
|
7,392,680
|
6,049,529
|
|||||
|
Total selling, general and administrative
|
6,277,963
|
5,914,488
|
13,481,633
|
11,889,717
|
|||||
|
Income from operations
|
2,420,141
|
2,222,493
|
4,166,997
|
4,305,469
|
|||||
|
Interest expense
|
(41,863
|
)
|
(49,908
|
)
|
(84,398
|
)
|
(98,709
|
)
|
|
|
Other income
|
49,747
|
85,344
|
95,672
|
191,330
|
|||||
|
Income before taxes
|
2,428,025
|
2,257,929
|
4,178,271
|
4,398,090
|
|||||
|
Provision for taxes
|
808,026
|
767,695
|
1,299,574
|
1,495,349
|
|||||
|
Net income
|
1,619,999
|
$1,490,234
|
$2,878,697
|
$2,902,741
|
|||||
|
Basic earnings per share
|
$.11
|
$.10
|
$.20
|
$.20
|
|||||
|
Diluted earnings per share
|
$.11
|
$.10
|
$.20
|
$.20
|
|||||
|
Average common shares outstanding:
|
|||||||||
|
Basic shares
|
14,679,746
|
14,659,281
|
14,681,423
|
14,659,331
|
|||||
|
Diluted shares
|
14,739,548
|
14,833,239
|
14,736,153
|
14,824,680
|
|||||
Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Balance Sheets
|
July 31,
2012
|
January 31,
2012
|
|
||||
|
Assets
|
(unaudited) | |||||
|
Current assets
|
||||||
|
Cash and cash equivalents
|
$31,173,910
|
$34,581,394
|
||||
|
Short-term investments
|
1,022,266
|
764,061
|
||||
|
Accounts receivable, net of allowance for
|
||||||
|
doubtful accounts of approximately
|
||||||
|
$393,000 and $491,000, respectively
|
17,782,160
|
17,373,121
|
||||
|
Inventories
|
17,927,911
|
17,847,143
|
||||
|
Prepaid expenses, deposits and other current assets
|
2,122,429
|
1,683,486
|
||||
|
Deferred income taxes
|
186,111
|
186,329
|
||||
|
Total current assets
|
70,214,787
|
72,435,534
|
||||
|
Property, plant and equipment, net
|
18,905,209
|
19,322,436
|
||||
|
Goodwill
|
20,798,913
|
20,798,913
|
||||
|
Other assets
|
2,859,678
|
2,952,332
|
||||
|
Total assets
|
$112,778,587
|
$115,509,215
|
||||
|
Liabilities and shareholders’ equity
|
||||||
|
Current liabilities
|
||||||
|
Current portion of debt
|
$569,963
|
$657,216
|
||||
|
Accounts payable
|
7,371,543
|
7,684,739
|
||||
|
Accrued salaries, wages and benefits
|
1,799,692
|
1,827,603
|
||||
|
Other accrued expenses
|
2,625,231
|
2,357,929
|
||||
|
Dividend payable
|
1,043,876
|
1,042,297
|
||||
|
Customers’ advances
|
1,441,639
|
3,232,600
|
||||
|
Total current liabilities
|
14,851,944
|
16,802,384
|
||||
|
Long-term debt
|
2,477,041
|
2,687,971
|
||||
|
Accrued pension retirement benefits
|
9,196,595
|
10,618,047
|
||||
|
Other non-current liabilities
|
57,489
|
56,391
|
||||
|
Deferred income taxes
|
1,314,255
|
1,522,451
|
||||
|
Total liabilities
|
27,897,324
|
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
|
4,582,952
|
4,058,735
|
||||
|
Retained earnings
|
97,020,326
|
96,228,764
|
||||
|
Accumulated other comprehensive loss
|
(8,044,714
|
)
|
(7,718,883
|
)
|
||
|
Treasury shares, at cost
|
(10,270,169
|
)
|
(10,339,513
|
)
|
||
|
Total shareholders’ equity
|
84,881,263
|
83,821,971
|
||||
|
Total liabilities and shareholders’ equity
|
$112,778,587
|
$115,509,215
|
Continued Page 5
Met-Pro Corporation/Page 5
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
|
Three Months Ended
July 31,
|
Six Months Ended
July 31,
|
|||||||
|
2012
|
2011
|
2012
|
2011
|
|||||
|
Net sales
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
$13,193,396
|
$9,625,898
|
$23,694,236
|
$17,957,870
|
||||
|
Fluid Handling Technologies
|
8,315,307
|
7,407,151
|
17,715,506
|
16,960,255
|
||||
|
Mefiag Filtration Technologies
|
3,523,165
|
3,204,384
|
6,375,331
|
6,344,301
|
||||
|
Filtration/Purification Technologies
|
2,965,374
|
2,851,910
|
5,419,230
|
5,256,820
|
||||
|
$27,997,242
|
$23,089,343
|
$53,204,303
|
$46,519,246
|
|||||
|
Income (loss) from operations
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
($469,167
|
)
|
($49,043
|
)
|
($912,229
|
)
|
($529,328
|
)
|
|
Fluid Handling Technologies
|
2,363,288
|
1,901,703
|
4,747,658
|
4,142,399
|
||||
|
Mefiag Filtration Technologies
|
367,901
|
169,078
|
295,813
|
390,550
|
||||
|
Filtration/Purification Technologies
|
158,119
|
200,755
|
35,755
|
301,848
|
||||
|
$2,420,141
|
$2,222,493
|
$4,166,997
|
$4,305,469
|
|||||
|
July 31,
2012
|
January 31,
2012
|
|||||||
|
Identifiable assets
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
$37,284,193
|
$36,444,763
|
||||||
|
Fluid Handling Technologies
|
18,815,811
|
19,290,035
|
||||||
|
Mefiag Filtration Technologies
|
14,916,983
|
14,017,572
|
||||||
|
Filtration/Purification Technologies
|
8,419,428
|
8,368,652
|
||||||
|
79,436,415
|
78,121,022
|
|||||||
|
Corporate
|
33,342,172
|
37,388,193
|
||||||
|
$112,778,587
|
$115,509,215
|
|||||||
Continued Page 6
Met-Pro Corporation/Page 6
Met-Pro Corporation
Consolidated Statements of Cash Flows
(unaudited)
| Six Months Ended July 31, |
|
||||||
| 2012 | 2011 |
|
|||||
|
Cash flows from operating activities
|
|||||||
|
Net income
|
$2,878,697
|
$2,902,741
|
|||||
|
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
|
|||||||
|
Depreciation and amortization
|
989,865
|
955,777
|
|||||
|
Stock-based compensation
|
593,561
|
359,652
|
|||||
|
Deferred income taxes
|
(209,897
|
)
|
(1,212
|
)
|
|||
|
Loss/(gain) on sale of property and equipment, net
|
1,080
|
(27,496
|
)
|
||||
|
Allowance for doubtful accounts
|
(98,479
|
)
|
57,456
|
||||
|
Changes in operating assets and liabilities:
|
|||||||
|
Accounts receivable
|
(425,173
|
)
|
(1,357,446
|
)
|
|||
|
Inventories
|
(219,103
|
)
|
(1,379,911
|
)
|
|||
|
Prepaid expenses, deposits and other assets
|
(695,430
|
)
|
(162,928
|
)
|
|||
|
Accounts payable and accrued expenses
|
(2,972
|
)
|
1,650,817
|
||||
|
Customers’ advances
|
(1,788,386
|
)
|
372,567
|
||||
|
Accrued pension retirement benefits
|
(1,421,452
|
)
|
(2,751,787
|
)
|
|||
|
Other non-current liabilities
|
1,098
|
1,098
|
|||||
|
Net cash (used in) provided by operating activities
|
(396,591
|
)
|
619,328
|
||||
|
Cash flows from investing activities
|
|||||||
|
Proceeds from sale of property and equipment
|
–
|
33,990
|
|||||
|
Acquisitions of property and equipment
|
(678,364
|
)
|
(918,049
|
)
|
|||
|
Purchase of investments
|
(1,022,266
|
)
|
(1,010,534
|
)
|
|||
|
Proceeds from maturities of investments
|
1,012,123
|
497,155
|
|||||
|
Net cash used in investing activities
|
(688,507
|
)
|
(1,397,438
|
)
|
|||
|
Cash flows from financing activities
|
|||||||
|
Proceeds from new borrowings
|
223,454
|
407,759
|
|||||
|
Reduction of debt
|
(470,326
|
)
|
(385,819
|
)
|
|||
|
Exercise of stock options
|
–
|
42,800
|
|||||
|
Payment of dividends
|
(2,085,556
|
)
|
(1,934,975
|
)
|
|||
|
Purchase of treasury shares
|
–
|
(42,800
|
)
|
||||
|
Net cash used in financing activities
|
(2,332,428
|
)
|
(1,913,035
|
)
|
|||
|
Effect of exchange rate changes on cash
|
10,042
|
11,572
|
|||||
|
Net decrease in cash and cash equivalents
|
(3,407,484
|
)
|
(2,679,573
|
)
|
|||
|
Cash and cash equivalents at February 1
|
34,581,394
|
32,400,814
|
|||||
|
Cash and cash equivalents at July 31
|
|
$31,173,910
|
$29,721,241
|
||||
###