Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MET PRO CORP | mpr8k20110902.htm |
| EX-99.2 - TRANSCRIPT OF CONFERENCE CALL HELD SEPTEMBER 1, 2011 - MET PRO CORP | mpr8k20110902ex992.htm |
| Date: | September 1, 2011 | |
| For Release: | Immediate | |
|
Contact:
|
Investor Contact:
|
|
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Gary J. Morgan,
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Joseph Hassett, SVP
|
|
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Senior Vice President of Finance, CFO
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Gregory FCA Communications
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|
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215-723-6751
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610-228-2110
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Met-Pro Corporation Announces Second Quarter Financial Results
-
New Order Bookings A Quarterly Record $29.5 Million
Harleysville, PA, September 1, 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 second quarter ended July 31, 2011.
Net sales for the second quarter ended July 31, 2011 were $23.1 million, an increase of 8% compared with net sales of $21.4 million for the same quarter last year. Net income for the second quarter ended July 31, 2011 totaled $1.5 million or per diluted share of $0.10, compared with net income of $1.6 million or per diluted share of $0.11 for the same period last year. In the second quarter of 2011, the Company incurred a one-time expense in the Product Recovery/Pollution Control Technologies reporting segment of approximately $300,000 or $0.013 per diluted earnings per share resulting from a voluntary retirement program.
New order bookings for the second quarter were the highest quarterly bookings in the Company’s history, totaling $29.5 million, a 33% increase when compared with $22.1 million for the second quarter last year. As a result, the Company’s backlog of orders totaled $26.3 million as of July 31, 2011, an increase of 49% when compared with $17.7 million last year.
“Though earnings were essentially flat, we are encouraged by our second quarter performance with regard to revenue growth and more importantly our record new order bookings, which were generated despite a still unpredictable economy,” stated De Hont. “The improvement in large project new order bookings, which was led by our Product Recovery/Pollution Control Technologies reporting segment, is not only a sign of an emerging recovery across our various markets, but more importantly illustrates the effect of our long-term growth strategy, including investing in additional sales staff to drive sales growth. The momentum in new order booking activity, together with our solid backlog and steady quotation activity, gives us continued optimism about our future prospects.”
Net sales for the six months ended July 31, 2011 were $46.5 million compared with $43.7 million for the same period last year, an increase of 6%. Net income for the first half ended July 31, 2011, totaled $2.9 million compared with $3.0 million for the same period last year. For both the first half ended July 31, 2011 and 2010, earnings were $0.20 per fully diluted share. New order bookings for the six months ended July 31, 2011 were up 24% to $55.1 million compared with $44.3 million for the same period last year.
The Company’s balance sheet remains very strong with approximately $30.0 million cash on hand.
On June 15, 2011, the Company paid a quarterly dividend of $0.066 per share to shareholders of record at the close of business on June 1, 2011. In addition, the Board of Directors, at their meeting on June 1, 2011, declared a quarterly dividend of $0.066 per share payable September 15, 2011 to shareholders of record at the close of business on September 1, 2011. This is the thirty-sixth consecutive year that Met-Pro Corporation has paid either a cash or stock dividend.
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, September 1, 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 88919844) 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 15, 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 88919844.
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)
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Three Months Ended
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Six Months Ended
|
|||||||
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July 31,
|
July 31,
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|||||||
|
2011
|
2010
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2011
|
2010
|
|||||
|
Net sales
|
$23,089,343
|
$21,436,886
|
$46,519,246
|
$43,713,963
|
||||
|
Cost of goods sold
|
14,952,362
|
13,593,734
|
30,324,060
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27,889,272
|
||||
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Gross profit
|
8,136,981
|
7,843,152
|
16,195,186
|
15,824,691
|
||||
|
Operating expenses
|
|
|||||||
|
Selling
|
2,924,062
|
2,766,920
|
5,840,188
|
5,699,817
|
||||
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General and administrative
|
2,990,426
|
2,769,202
|
6,049,529
|
5,714,804
|
||||
|
5,914,488
|
5,536,122
|
11,889,717
|
11,414,621
|
|||||
|
Income from operations
|
2,222,493
|
2,307,030
|
4,305,469
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4,410,070
|
||||
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Interest expense
|
(49,908
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)
|
(27,176
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) |
(98,709
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)
|
(109,686
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)
|
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Other income, net
|
85,344
|
72,765
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191,330
|
190,233
|
||||
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Income before taxes
|
2,257,929
|
2,352,619
|
4,398,090
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4,490,617
|
||||
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Provision for taxes
|
767,695
|
799,889
|
1,495,349
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1,526,809
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||||
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Net income
|
$1,490,234
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$1,552,730
|
$2,902,741
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$2,963,808
|
||||
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Basic earnings per share
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$.10
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$.11
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$.20
|
$.20
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||||
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Diluted earnings per share
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$.10
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$.11
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$.20
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$.20
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||||
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Average common shares outstanding:
|
||||||||
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Basic shares
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14,659,281
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14,619,443
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14,659,331
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14,619,614
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||||
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Diluted shares
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14,833,239
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14,702,134
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14,824,680
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14,709,756
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||||
Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation
Consolidated Balance Sheets
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July 31,
2011
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January 31,
2011
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Assets
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(unaudited)
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||||
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Current assets
|
|||||
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Cash and cash equivalents
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$29,721,241
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$32,400,814
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|||
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Short-term investments
|
764,061
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497,155
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|||
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Accounts receivable, net of allowance for
|
|||||
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doubtful accounts of approximately
|
|||||
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$502,000 and $444,000, respectively
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16,747,749
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15,311,322
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|||
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Inventories
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16,978,928
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15,474,430
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|||
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Prepaid expenses, deposits and other current assets
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1,548,145
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1,578,176
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Deferred income taxes
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84,920
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84,155
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|||
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Total current assets
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65,845,044
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65,346,052
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|||
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Property, plant and equipment, net
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20,037,462
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19,863,031
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|||
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Goodwill
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20,798,913
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20,798,913
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|||
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Other assets
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2,445,066
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2,038,332
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|||
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Total assets
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$109,126,485
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$108,046,328
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|||
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Liabilities and shareholders’ equity
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|||||
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Current liabilities
|
|||||
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Current portion of debt
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$779,635
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$532,540
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|||
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Accounts payable
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6,953,702
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4,864,724
|
|||
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Accrued salaries, wages and benefits
|
1,325,244
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1,650,314
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|||
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Other accrued expenses
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2,245,854
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2,286,043
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|||
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Dividend payable
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967,530
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967,445
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|||
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Customers’ advances
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1,281,454
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907,107
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|||
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Total current liabilities
|
13,553,419
|
11,208,173
|
|||
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Long-term debt
|
2,868,339
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3,011,988
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|||
|
Accrued pension retirement benefits
|
3,801,474
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6,553,262
|
|||
|
Other non-current liabilities
|
55,293
|
54,195
|
|||
|
Deferred income taxes
|
2,728,515
|
2,745,786
|
|||
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Total liabilities
|
23,007,040
|
23,573,404
|
|||
|
Shareholders’ equity
|
|||||
|
Common shares, $.10 par value; 36,000,000 shares
|
|||||
|
authorized, 15,928,679 shares issued, of which
|
|||||
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1,269,134 and 1,270,417 shares were reacquired
|
|||||
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and held in treasury at the respective dates
|
1,592,868
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1,592,868
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|||
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Additional paid-in capital
|
3,809,401
|
3,448,249
|
|||
|
Retained earnings
|
94,080,929
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93,113,247
|
|||
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Accumulated other comprehensive loss
|
(2,882,580
|
)
|
(3,201,767
|
)
|
|
|
Treasury shares, at cost
|
(10,481,173
|
)
|
(10,479,673
|
)
|
|
|
Total shareholders’ equity
|
86,119,445
|
84,472,924
|
|||
|
Total liabilities and shareholders’ equity
|
$109,126,485
|
$108,046,328
|
Continued Page 5
Met-Pro Corporation/Page 5
Met-Pro Corporation
Consolidated Business Segment Data
(unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||
|
July 31,
|
July 31,
|
|||||||
| 2011 |
2010
|
2011
|
2010
|
|
||||
|
Net sales
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
$9,625,898
|
$9,707,182
|
$17,957,870
|
$20,720,407
|
||||
|
Fluid Handling Technologies
|
7,407,151
|
6,508,959
|
16,960,255
|
13,039,530
|
||||
|
Mefiag Filtration Technologies
|
3,204,384
|
2,508,470
|
6,344,301
|
4,942,719
|
||||
|
Filtration/Purification Technologies
|
2,851,910
|
2,712,275
|
5,256,820
|
5,011,307
|
||||
|
$23,089,343
|
$21,436,886
|
$46,519,246
|
$43,713,963
|
|||||
|
Income (loss) from operations
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
($49,043
|
)
|
$642,236
|
($529,328
|
)
|
$1,158,397
|
||
|
Fluid Handling Technologies
|
1,901,703
|
1,314,468
|
4,142,399
|
2,603,264
|
||||
|
Mefiag Filtration Technologies
|
169,078
|
163,446
|
390,550
|
369,965
|
||||
|
Filtration/Purification Technologies
|
200,755
|
186,880
|
301,848
|
278,444
|
||||
|
$2,222,493
|
$2,307,030
|
$4,305,469
|
$4,410,070
|
|||||
|
July 31,
2011
|
January 31,
2011
|
|||||||
|
Identifiable assets
|
||||||||
|
Product Recovery/Pollution Control Technologies
|
$33,815,944
|
$34,003,251
|
||||||
|
Fluid Handling Technologies
|
19,300,127
|
18,114,257
|
||||||
|
Mefiag Filtration Technologies
|
14,943,245
|
12,814,143
|
||||||
|
Filtration/Purification Technologies
|
8,403,782
|
8,369,385
|
||||||
|
76,463,098
|
73,301,036
|
|||||||
|
Corporate
|
32,663,387
|
34,745,292
|
||||||
|
$109,126,485
|
$108,046,328
|
|||||||
Continued Page 6
Met-Pro Corporation/Page 6
Met-Pro Corporation
Consolidated Statements of Cash Flows
(unaudited)
|
Six Months Ended July 31,
|
|||||
|
2011
|
2010
|
||||
|
Cash flows from operating activities
|
|||||
|
Net income
|
$2,902,741
|
$2,963,808
|
|||
|
Adjustments to reconcile net income to net
cash provided by operating activities:
|
|||||
|
Depreciation and amortization
|
955,777
|
882,993
|
|||
|
Deferred income taxes
|
(1,212
|
)
|
(1,203
|
)
|
|
|
(Gain)/loss on sale of property and equipment, net
|
(27,496
|
)
|
668
|
||
|
Stock-based compensation
|
359,652
|
322,944
|
|||
|
Allowance for doubtful accounts
|
57,456
|
(29,709
|
)
|
||
|
Changes in operating assets and liabilities:
|
|||||
|
Accounts receivable
|
(1,357,446
|
)
|
(875,673
|
)
|
|
|
Inventories
|
(1,379,911
|
)
|
1,151,115
|
||
|
Prepaid expenses, deposits and other assets
|
(162,928
|
) |
282,742
|
||
|
Accounts payable and accrued expenses
|
1,650,817
|
1,063,414
|
|||
|
Customers’ advances
|
372,567
|
(237,335
|
)
|
||
|
Accrued pension retirement benefits
|
(2,751,787
|
)
|
(166,385
|
)
|
|
|
Other non-current liabilities
|
1,098
|
(165,287
|
)
|
||
|
Net cash provided by operating activities
|
619,328
|
5,192,092
|
|||
|
Cash flows from investing activities
|
|||||
|
Proceeds from sale of property and equipment
|
33,990
|
–
|
|||
|
Acquisitions of property and equipment
|
(918,049
|
)
|
(527,064
|
)
|
|
|
Purchase of investments
|
(1,010,534
|
)
|
(497,155
|
)
|
|
|
Proceeds from maturities of investments
|
497,155
|
240,893
|
|||
|
Net cash used in investing activities
|
(1,397,438
|
)
|
(783,326
|
)
|
|
|
Cash flows from financing activities
|
|||||
|
Proceeds from new borrowings
|
407,759
|
189,074
|
|||
|
Reduction of debt
|
(385,819
|
)
|
(263,430
|
)
|
|
|
Exercise of stock options
|
42,800
|
252,924
|
|||
|
Payment of dividends
|
(1,934,975
|
)
|
(1,754,220
|
)
|
|
|
Purchase of treasury shares
|
(42,800
|
)
|
(266,847
|
)
|
|
|
Net cash used in financing activities
|
(1,913,035
|
)
|
(1,842,499
|
)
|
|
|
Effect of exchange rate changes on cash
|
11,572
|
14,506
|
|||
|
Net (decrease) increase in cash and cash equivalents
|
(2,679,573
|
)
|
2,580,773
|
||
|
Cash and cash equivalents at February 1
|
32,400,814
|
30,662,104
|
|||
|
Cash and cash equivalents at July 31
|
|
$29,721,241
|
$33,242,877
|
||
###