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HARLEYSVILLE, Pa., Nov. 20 /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, 2008.
Net sales for the third quarter ended October 31, 2008 were $28.0 million
compared with record high net sales of $30.1 million for the third quarter
last year, which benefitted from $4.4 million of net sales associated with the
largest order in the Company's history. Net income in the third quarter
totaled $3.0 million compared with net income of $3.1 million for the same
quarter last year. For the third quarter, the Company reported earnings of
$0.20 per fully diluted share which was equivalent to the fully diluted per
share earnings for the third quarter of last year.
Met-Pro's bookings of new orders for the third quarter were the highest of
any quarter in the Company's history, totaling $29.1 million compared with
$23.5 million for the same quarter last year, an increase of 23%.
"Global demand for Met-Pro's products remained strong as evidenced by our
record third quarter booking performance," said De Hont. "Our performance
demonstrates our ability to deliver solid results while adjusting to difficult
economic realities. It is representative of the widening global recognition
of the various Met-Pro brands and our ability to respond to the rising
worldwide demand for a cleaner environment, lower energy consumption, and
improved process performance. The Company remains financially strong and is
continuing to make progress on its operating efficiency initiatives while
still investing in its business. While we remain cautious about the global
economic environment, we believe the diversity of our products and end
markets, together with our growing international brand recognition and
improving operating efficiencies, leave us well positioned for the future."
Net sales for the nine months ended October 31, 2008 were a record $78.8
million compared with $77.6 million for the same period last year, which
benefitted from $7.4 million of net sales associated with the largest order in
the Company's history. Net income for the nine months ended October 31, 2008
totaled $7.6 million compared with $8.7 million for the same period last year,
which included a $2.2 million gain from a property sale. Excluding the gain
from the prior year's property sale, net income for the nine months ended
October 31, 2008 was up 18% from a year ago and was the highest first nine
months net income in the Company's history. For the nine months ended October
31, 2008, earnings were $0.50 per fully diluted share compared with earnings
of $0.57 per fully diluted share for the same period last year, which included
the gain from the property sale. Excluding the gain from the prior year's
property sale, earnings per fully diluted share for the nine months ended
October 31, 2008 were up 19% from the comparable period last year, and were
the highest first nine month earnings per fully diluted share in the Company's
history.
Met-Pro's bookings of new orders for the nine months ended October 31,
2008 were the highest for any first nine months in the Company's history,
totaling $82.8 million compared with $72.2 million for the same period last
year, an increase of 15%.
At their November 3, 2008 meeting, the Board of Directors authorized a
9.1% increase in the quarterly dividend. The new quarterly dividend of $0.06
per share will be payable December 10, 2008 to shareholders of record at the
close of business on November 26, 2008. This is the thirty-fourth consecutive
year the Company 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, November
20, 2008, 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.
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 73088899) at 10:55
AM (Eastern) on today. A taped replay of the conference call will be available
within two hours of the conclusion of the call and until December 4, 2008. 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 73088899.
This press release contains non-GAAP financial measures within the meaning
of Regulation G promulgated by the Securities and Exchange Commission.
Included at the end of this press release is a reconciliation of these non-
GAAP financial measures with their most directly comparable financial measures
calculated in accordance with generally accepted accounting principles as well
as certain Regulation G disclosures.
About Met-Pro
Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville,
Pennsylvania, was recently recognized, for the third consecutive year, as one
of America's "200 Best Small Companies" by Forbes magazine. The Company was
also named earlier this year as one of the world's "Top Small to Midsize
Manufacturers" by Start-It magazine for the second year in a row. Through its
business units, in the United States, Canada, Europe and The People's Republic
of China, a wide range of products and services are offered for industrial,
commercial, municipal and residential markets worldwide. These include product
recovery and pollution control technologies for purification of air and
liquids; fluid handling technologies for corrosive, abrasive and high
temperature liquids; Mefiag filtration technologies for harsh, corrosive
liquid filtration applications; and filtration and purification technologies
which include proprietary water treatment chemicals and filter products for
air and liquid filtration. 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, 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.
Investor Contact:
Gary J. Morgan,
Senior Vice President of Finance, CFO
215-723-6751, gmorgan@met-pro.com
Joseph Hassett, VP
Gregory FCA Communications
610-228-2110
Met-Pro Corporation
Consolidated Statement of Operations
(unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2008 2007 2008 2007
Net sales $27,979,483 $30,140,427 $78,781,675 $77,616,267
Cost of goods sold(1) 17,734,396 19,971,169 51,311,316 51,353,454
Gross profit 10,245,087 10,169,258 27,470,359 26,262,813
Operating expenses
(income)
Selling(1) 3,139,258 2,750,032 8,111,853 8,616,248
General and
administrative 2,949,983 2,966,465 8,501,240 8,373,726
Gain on sale of
building - - - (3,513,940)
Income from operations 4,155,846 4,452,761 10,857,266 12,786,779
Interest expense (51,182) (69,696) (179,948) (240,394)
Other income, net 77,838 228,738 376,768 745,131
Income before taxes 4,182,502 4,611,803 11,054,086 13,291,516
Provision for taxes 1,171,136 1,544,951 3,414,114 4,575,645
Net income $3,011,366 $3,066,852 $7,639,972 $8,715,871
Basic earnings per
share $.20 $.20 $.51 $.58
Diluted earnings per
share $.20 $.20 $.50 $.57
Average common shares
outstanding:
Basic shares 15,042,572 14,983,501 15,013,042 14,989,673
Diluted shares 15,402,764 15,312,924 15,359,048 15,324,527
(1) The Company has reclassified freight out, and representative and
distributor commissions from a deduction of gross sales to the cost of goods
sold and selling expense categories, respectively, for the three and nine-
month periods ended October 31, 2007. For the three-month periods ended
October 31, 2008 and 2007, freight out was $285,166 and $473,299,
respectively, and representative and distributor commissions was $937,072 and
$624,478, respectively. For the nine-month periods ended October 31, 2008 and
2007, freight out was $993,661 and $708,157, respectively, and representative
and distributor commissions was $1,642,943 and $1,900,916, respectively.
Met-Pro Corporation
Consolidated Balance Sheet
(unaudited)
October 31, January 31,
2008 2008
Assets
Current assets
Cash and cash equivalents $18,832,373 $21,906,877
Marketable securities 10,934 20,369
Accounts receivable, net of allowance
for doubtful accounts of approximately
$179,000 and $152,000, respectively 23,116,751 23,013,988
Inventories 21,137,829 21,258,227
Prepaid expenses, deposits and other
current assets 1,250,154 1,895,679
Total current assets 64,348,041 68,095,140
Property, plant and equipment, net 19,632,455 20,233,827
Costs in excess of net assets of business
acquired, net 20,798,913 20,798,913
Other assets 417,385 283,023
Total assets $105,196,794 $109,410,903
Liabilities and shareholders' equity
Current liabilities
Current portion of long-term debt $1,043,602 $2,028,482
Accounts payable 5,966,525 7,512,874
Accrued salaries, wages and expenses 6,202,803 6,023,857
Dividend payable - 827,147
Customers' advances 343,661 260,698
Deferred income taxes 200,517 197,743
Total current liabilities 13,757,108 16,850,801
Long-term debt 3,612,817 4,075,682
Other non-current liabilities 1,676,503 2,109,250
Deferred income taxes 3,150,367 3,132,002
Total liabilities 22,196,795 26,167,735
Shareholders' equity
Common shares, $.10 par value; 36,000,000
shares authorized, 15,928,679 and
15,928,810 shares issued, respectively,
of which 1,328,570 and 889,780 shares
were reacquired and held in treasury at
the respective dates 1,592,868 1,592,881
Additional paid-in capital 2,268,590 1,897,655
Retained earnings 89,258,229 83,267,096
Accumulated other comprehensive income 563,907 1,340,427
Treasury shares, at cost (10,683,595) (4,854,891)
Total shareholders' equity 82,999,999 83,243,168
Total liabilities and shareholders'
equity $105,196,794 $109,410,903
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2008 2007 2008 2007
Net sales
Product Recovery/
Pollution Control
Technologies(1) $13,863,654 $17,154,433 $37,554,600 $39,976,169
Fluid Handling
Technologies(1) 8,213,799 7,243,918 23,070,719 20,755,110
Mefiag Filtration
Technologies(1)(2) 2,809,550 2,843,841 9,114,722 8,511,626
Filtration/
Purification
Technologies(1)(2) 3,092,480 2,898,235 9,041,634 8,373,362
$27,979,483 $30,140,427 $78,781,675 $77,616,267
Income from operations
Product Recovery/
Pollution Control
Technologies $1,853,682 $2,434,662 $4,444,955 $3,890,814
Fluid Handling
Technologies 1,785,470 1,592,550 5,022,442 4,325,164
Mefiag Filtration
Technologies(2) 188,082 148,234 525,984 462,657
Filtration/
Purification
Technologies(2) 328,612 277,315 863,885 594,204
4,155,846 4,452,761 10,857,266 9,272,839
Gain on sale of
building - - - 3,513,940
$4,155,846 $4,452,761 $10,857,266 $12,786,779
October 31, January 31,
2008 2008
Identifiable Assets
Product Recovery/
Pollution Control
Technologies $42,295,920 $40,509,227
Fluid Handling
Technologies 22,789,217 22,401,768
Mefiag Filtration
Technologies(2) 11,952,837 12,810,694
Filtration/
Purification
Technologies(2) 9,460,161 8,877,725
86,498,135 84,599,414
Corporate 18,698,659 24,811,489
$105,196,794 $109,410,903
(1) The Company has reclassified freight out, and representative and
distributor commissions from a deduction of gross sales to the cost of goods
sold and selling expense categories for the three and nine-month periods ended
October 31, 2007.
(2) On a quarterly basis, the Company analyzes the segmentation
aggregation criteria as outlined in SFAS No. 131. As of the first three
quarters of the fiscal year ending January 31, 2009, the Mefiag operating
segment previously included in the aggregated Filtration/Purification
Technologies segment, met the quantitative threshold of reported revenue of
10% or more of the totaled consolidated revenue of the Company. As a result,
SFAS No. 131 requires the Mefiag operating segment to be listed as a
reportable segment and therefore separately disclosed. This change in segment
reporting results in the Company identifying three reportable segments,
Product Recovery/Pollution Control Technologies, Fluid Handling Technologies
and Mefiag Filtration Technologies, and one other segment,
Filtration/Purification Technologies, as presented above.
Met-Pro Corporation
Consolidated Statement of Cash Flows
(unaudited)
Nine Months Ended October 31,
2008 2007
Increase (Decrease) in Cash
and Cash Equivalents
Cash flows from operating activities
Net income $7,639,972 $8,715,871
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,441,242 1,284,648
Deferred income taxes 1,147 904,000
(Gain) on sale of property and
equipment, net (18,174) (3,540,578)
Stock-based compensation 324,153 382,581
Allowance for doubtful accounts 26,580 37,874
(Increase) decrease in operating assets:
Accounts receivable (590,531) 1,444,988
Inventories (167,617) (2,544,845)
Prepaid expenses, deposits and other
current assets 614,565 (258,213)
Other assets (153,480) (6,776)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses (988,259) 244,597
Customers' advances 86,744 (391,030)
Other non-current liabilities (432,747) 16,960
Net cash provided by operating
activities 7,783,595 6,290,077
Cash flows from investing activities
Proceeds from sale of property and equipment 20,785 4,377,115
Acquisitions of property and equipment (1,368,841) (4,200,072)
Net cash provided by (used in) investing
activities (1,348,056) 177,043
Cash flows from financing activities
Reduction of debt (1,272,597) (1,119,526)
Exercise of stock options 1,912,398 1,081,835
Payment of dividends (2,483,956) (2,274,700)
Purchase of treasury shares (7,694,333) (630,515)
Net cash (used in) financing activities (9,538,488) (2,942,906)
Effect of exchange rate changes on cash 28,445 (75,711)
Net increase (decrease) in cash and cash
equivalents (3,074,504) 3,448,503
Cash and cash equivalents at February 1 21,906,877 17,322,194
Cash and cash equivalents at October 31 $18,832,373 $20,770,697
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
This news release contains non-GAAP financial measures within the meaning
of Regulation G promulgated by the Securities and Exchange Commission. A
reconciliation of these non-GAAP financial measures to their most directly
comparable financial measures calculated in accordance with generally accepted
accounting principles in the United States ("GAAP") follows. Although Met-Pro
Corporation believes that these non-GAAP financial measures provide useful
information to investors about its financial condition and results of
operations, this information should be considered supplemental in nature and
not as a substitute for financial information prepared in accordance with
GAAP. Management's statements regarding the reasons why it believes the
presentation of the non-GAAP financial information in this news release
provides useful information to its investors, and any other material purposes
for which management uses this non-GAAP financial information, are set forth
in Met-Pro's Current Report on Form 8-K to which this news release is attached
as an exhibit.
The following table reconciles income before tax, net income, and basic
and diluted earnings per share, excluding the gain on the sale of property
previously associated with the Company's Sethco business unit in Hauppauge,
New York, as well as income before tax, net income, and basic and diluted
earnings per share calculated in accordance with generally accepted accounting
principles, for the three and nine month periods ended October 31, 2008 and
2007:
Met-Pro Corporation
Reconciliation of Non-GAAP Financial Measures and
Regulation G Disclosure
(unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2008 2007 2008 2007
Income before tax
as reported $4,182,502 $4,611,803 $11,054,086 $13,291,516
Less: Gain on sale
of building - - - (3,513,940)
Adjusted income
before tax $4,182,502 $4,611,803 $11,054,086 $9,777,576
Net income as
reported $3,011,316 $3,066,852 $7,639,972 $8,715,851
Less: Gain on sale
of building, net
of tax - - - (2,213,782)
Adjusted net income $3,011,316 $3,066,852 $7,639,972 $6,502,069
Basic earnings per
share as reported $.20 $.20 $.51 $.58
Adjusted basic
earnings per share $.20 $.20 $.51 $.43
Diluted earnings per
share as reported $.20 $.20 $.50 $.57
Adjusted diluted
earnings per share $.20 $.20 $.50 $.42
Average common shares
outstanding:
Basic shares 15,042,572 14,983,501 15,013,042 14,989,673
Diluted shares 15,402,764 15,312,924 15,359,048 15,324,527
SOURCE Met-Pro Corporation
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