Attached files
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| 8-K - MET-PRO CORPORATION 8-K 3-21-2013 - MET PRO CORP | form8k.htm |
| EX-99.2 - EXHIBIT 99.2 - MET PRO CORP | ex99_2.htm |
Exhibit 99.1
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Date:
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March 21, 2013
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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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Neal E. Murphy
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Joseph Hassett, SVP
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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
Fourth Quarter and Fiscal Year End Financial Results
· Record Fiscal 2013 Net Sales of $110 Million, Up 10% Over Fiscal 2012
· Fiscal 2013 Earnings Per Share Increase 15% to $0.55
Harleysville, PA, March 21, 2013 – Met-Pro Corporation (NYSE: MPR-News) today announced the Company’s financial results for the fourth quarter and fiscal year ended January 31, 2013.
Net sales for the fiscal year ended January 31, 2013 were a record $109.9 million, up 10% from $100.2 million in fiscal 2012. Net income for fiscal 2013 totaled $8.0 million, or $0.55 per share, increases of 13% and 15%, respectively, compared with net income of $7.1 million, or $0.48 per share, for fiscal 2012.
Net sales for the fourth quarter ended January 31, 2013 were $27.0 million compared with net sales of $28.4 million for the same quarter last year, a decrease of 5%. Net income for the fourth quarter of fiscal 2013 totaled $2.4 million, or $0.16 per share, increases of 11% and 7%, respectively, compared with net income of $2.1 million, or $0.15 per share, for the same period last year.
New orders for the fiscal year ended January 31, 2013 were $106.2 million compared with $110.9 million for the prior fiscal year, down 4%.
New orders for the fourth quarter totaled $23.2 million, an 18% decrease compared with $28.3 million for the fourth quarter last year, reflecting both Met-Pro’s quarterly variability from receipt of new orders and the hesitation in releasing capital orders that characterized the last few months of the year. As a result, the Company’s backlog of orders totaled $24.9 million as of January 31, 2013, compared with $28.4 million as of the same point last year, a decrease of 12%.
“The global strength of the Met-Pro brands and a more strategic sales and marketing effort enabled us to improve our penetration of targeted growth markets and increase net sales at a double-digit rate to record levels in fiscal 2013,” commented Raymond J. De Hont, Met-Pro’s Chief Executive Officer and President. “Fiscal year earnings increased for the third consecutive year, as our sales and marketing strategy together with the productivity and efficiency enhancements implemented within our organization continued to gradually translate into improved overall financial performance. In the fourth quarter, gross margins were up while total selling, general and administrative expenses as a percentage of sales were down, indicative of the continued, steady progress being achieved within our operations. We are pleased with the fiscal 2013 results and the progress we have made in improving our overall financial performance. Our pipeline of potential opportunities allows us to remain optimistic regarding our full year fiscal 2014 prospects.”
On December 20, 2012, the Company’s Board of Directors declared a quarterly dividend of $0.0725 per share, representing a 2% increase compared to the dividend for the same quarter a year ago. The dividend was paid on March 15, 2013 to shareholders of record at the close of business on March 1, 2013. This is the twenty-second consecutive year that Met-Pro Corporation has paid a cash dividend.
Continued Page 2
Met-Pro Corporation/Page 2
Mr. De Hont and Neal E. Murphy, Vice President of Finance and Chief Financial Officer, will hold a conference call for investors today, March 21, 2013, 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.
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 Number 877-818-7738 or the International Dial-In Number 706-643-9333 (Conference ID 13646242) 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 April 4, 2013. To access the taped replay, call the US/Canada Dial-In Number 855-859-2056 or the International Dial-In Number 404-537-3406 and enter Conference ID 13646242.
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 for the year ended January 31, 2013 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 and Subsidiaries
Consolidated Statements of Income
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Three Months Ended
January 31,
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Fiscal Years Ended
January 31,
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2013
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2012
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2013
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2012
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Net sales
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$ | 26,976,263 | $ | 28,397,015 | $ | 109,941,922 | $ | 100,161,392 | ||||||||
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Cost of goods sold
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17,502,385 | 18,558,042 | 72,154,899 | 64,792,385 | ||||||||||||
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Gross profit
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9,473,878 | 9,838,973 | 37,787,023 | 35,369,007 | ||||||||||||
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Operating expenses
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||||||||||||||||
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Selling
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2,657,725 | 3,232,916 | 11,818,299 | 12,017,123 | ||||||||||||
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General and administrative
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3,355,086 | 3,323,454 | 14,090,913 | 12,760,600 | ||||||||||||
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Total selling, general and administrative
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6,012,811 | 6,556,370 | 25,909,212 | 24,777,723 | ||||||||||||
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Income from operations
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3,461,067 | 3,282,603 | 11,877,811 | 10,591,284 | ||||||||||||
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Interest expense
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(40,338 | ) | (45,319 | ) | (166,206 | ) | (191,181 | ) | ||||||||
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Other income
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38,294 | 44,560 | 154,076 | 434,207 | ||||||||||||
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Income before taxes
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3,459,023 | 3,281,844 | 11,865,681 | 10,834,310 | ||||||||||||
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Provision for taxes
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1,083,232 | 1,132,770 | 3,820,458 | 3,700,609 | ||||||||||||
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Net income
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$ | 2,375,791 | $ | 2,149,074 | $ | 8,045,223 | $ | 7,133,701 | ||||||||
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Basic earnings per share
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$ | .16 | $ | .15 | $ | .55 | $ | .49 | ||||||||
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Diluted earnings per share
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$ | .16 | $ | .15 | $ | .55 | $ | .48 | ||||||||
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Average common shares outstanding:
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||||||||||||||||
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Basic shares
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14,684,220 | 14,660,673 | 14,685,038 | 14,662,055 | ||||||||||||
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Diluted shares
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14,734,811 | 14,776,606 | 14,738,035 | 14,774,692 | ||||||||||||
Continued Page 4
Met-Pro Corporation/Page 4
Met-Pro Corporation and Subsidiaries
Consolidated Balance Sheets
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January 31,
2013
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January 31,
2012
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Assets
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Current assets
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Cash and cash equivalents
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$ | 33,305,908 | $ | 34,581,394 | ||||
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Short-term investments
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1,022,266 | 764,061 | ||||||
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Accounts receivable, net of allowance for doubtful accounts of $288,102 and $491,138, respectively
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19,094,589 | 17,373,121 | ||||||
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Inventories
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17,870,720 | 17,847,143 | ||||||
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Prepaid expenses, deposits and other current assets
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1,848,049 | 1,683,486 | ||||||
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Deferred income taxes
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1,043 | 186,329 | ||||||
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Total current assets
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73,142,575 | 72,435,534 | ||||||
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Property, plant and equipment, net
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19,499,593 | 19,322,436 | ||||||
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Goodwill
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20,798,913 | 20,798,913 | ||||||
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Other assets
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2,814,100 | 2,952,332 | ||||||
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Total assets
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$ | 116,255,181 | $ | 115,509,215 | ||||
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Liabilities and shareholders’ equity
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Current liabilities
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Current portion of debt
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$ | 369,622 | $ | 657,216 | ||||
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Accounts payable
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6,081,691 | 7,684,739 | ||||||
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Accrued salaries, wages and benefits
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1,775,438 | 1,827,603 | ||||||
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Other accrued expenses
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2,780,051 | 2,357,929 | ||||||
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Dividend payable
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1,068,862 | 1,042,297 | ||||||
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Customers’ advances
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1,397,553 | 3,232,600 | ||||||
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Total current liabilities
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13,473,217 | 16,802,384 | ||||||
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Long-term debt
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2,269,885 | 2,687,971 | ||||||
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Accrued pension retirement benefits
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9,652,313 | 10,618,047 | ||||||
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Other non-current liabilities
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58,589 | 56,391 | ||||||
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Deferred income taxes
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2,118,801 | 1,522,451 | ||||||
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Total liabilities
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27,572,805 | 31,687,244 | ||||||
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Commitments and contingencies
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Shareholders’ equity
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Common shares, $.10 par value; 36,000,000 shares authorized, 15,928,679 shares issued, of which 1,231,824 and 1,250,051 shares were reacquired and held in treasury
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1,592,868 | 1,592,868 | ||||||
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Additional paid-in capital
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4,899,188 | 4,058,735 | ||||||
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Retained earnings
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100,054,279 | 96,228,764 | ||||||
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Accumulated other comprehensive loss
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(7,613,536 | ) | (7,718,883 | ) | ||||
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Treasury shares, at cost
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(10,250,423 | ) | (10,339,513 | ) | ||||
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Total shareholders’ equity
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88,682,376 | 83,821,971 | ||||||
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Total liabilities and shareholders’ equity
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$ | 116,255,181 | $ | 115,509,215 | ||||
Continued Page 5
Met-Pro Corporation/Page 5
Met-Pro Corporation and Subsidiaries
Consolidated Business Segment Data
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Three Months Ended
January 31,
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Fiscal Years Ended
January 31,
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2013
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2012
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2013
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2012
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Net sales
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Product Recovery/Pollution Control Technologies
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$ | 11,762,106 | $ | 13,716,876 | $ | 49,061,038 | $ | 43,568,042 | ||||||||
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Fluid Handling Technologies
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9,343,964 | 8,956,997 | 37,693,475 | 33,264,149 | ||||||||||||
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Mefiag Filtration Technologies
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3,563,496 | 3,314,685 | 12,975,840 | 12,945,610 | ||||||||||||
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Filtration/Purification Technologies
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2,306,697 | 2,408,457 | 10,211,569 | 10,383,591 | ||||||||||||
| $ | 26,976,263 | $ | 28,397,015 | $ | 109,941,922 | $ | 100,161,392 | |||||||||
| Income (loss) from operations | ||||||||||||||||
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Product Recovery/Pollution Control Technologies
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$ | 1,012,368 | $ | 663,688 | $ | 1,033,954 | $ | 1,198,674 | ||||||||
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Fluid Handling Technologies
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2,094,842 | 2,330,691 | 9,959,229 | 8,220,768 | ||||||||||||
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Mefiag Filtration Technologies
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386,594 | 263,014 | 805,932 | 780,586 | ||||||||||||
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Filtration/Purification Technologies
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(32,737 | ) | 25,210 | 78,696 | 391,256 | |||||||||||
| $ | 3,461,067 | $ | 3,282,603 | $ | 11,877,811 | $ | 10,591,284 | |||||||||
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January 31,
2013
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January 31,
2012
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Identifiable assets
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Product Recovery/Pollution Control Technologies
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$ | 37,932,865 | $ | 36,444,763 | ||||||||||||
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Fluid Handling Technologies
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20,093,881 | 19,290,035 | ||||||||||||||
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Mefiag Filtration Technologies
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15,643,078 | 14,017,572 | ||||||||||||||
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Filtration/Purification Technologies
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8,011,212 | 8,368,652 | ||||||||||||||
| 81,681,036 | 78,121,022 | |||||||||||||||
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Corporate
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34,574,145 | 37,388,193 | ||||||||||||||
| $ | 116,255,181 | $ | 115,509,215 | |||||||||||||
Continued Page 6
Met-Pro Corporation/Page 6
Met-Pro Corporation and Subsidiaries
Consolidated Statements of Cash Flows
| Fiscal Years Ended January 31, | ||||||||
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2013
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2012
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Cash flows from operating activities
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Net income
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$ | 8,045,223 | $ | 7,133,701 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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2,022,450 | 1,914,418 | ||||||
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Deferred income taxes
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855,679 | 1,197,654 | ||||||
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Loss on sales of property and equipment, net
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2,176 | 102,386 | ||||||
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Stock-based compensation
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903,933 | 744,306 | ||||||
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Allowance for doubtful accounts
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(203,036 | 46,986 | ||||||
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Changes in operating assets and liabilities:
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Accounts receivable
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(1,424,056 | ) | (2,173,195 | ) | ||||
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Inventories
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62,511 | (2,450,559 | ) | |||||
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Prepaid expenses, deposits and other assets
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(476,387 | ) | (350,416 | ) | ||||
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Accounts payable and accrued expenses
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(1,423,633 | ) | 3,116,045 | |||||
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Customers’ advances
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(1,835,262 | ) | 2,323,603 | |||||
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Accrued pension retirement benefits
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(1,247,317 | ) | (2,647,339 | ) | ||||
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Other non-current liabilities
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2,197 | 2,197 | ||||||
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Net cash provided by operating activities
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5,284,478 | 8,959,787 | ||||||
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Cash flows from investing activities
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Proceeds from sale of property and equipment
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- | 33,566 | ||||||
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Acquisitions of property and equipment
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(1,997,489 | ) | (2,097,233 | ) | ||||
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Purchases of investments
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(1,022,266 | ) | (1,010,535 | ) | ||||
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Proceeds from maturities of investments
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1,258,596 | 497,155 | ||||||
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Net cash used in investing activities
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(1,761,159 | ) | (2,577,047 | ) | ||||
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Cash flows from financing activities
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Proceeds from new borrowings
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224,336 | 477,692 | ||||||
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Reduction of debt
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(877,645 | ) | (727,399 | ) | ||||
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Exercise of stock options
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296,108 | 152,970 | ||||||
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Payment of dividends
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(4,193,142 | ) | (3,943,332 | ) | ||||
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Purchase of treasury shares
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(289,868 | ) | (167,534 | ) | ||||
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Net cash used in financing activities
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(4,840,211 | ) | (4,207,603 | ) | ||||
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Effect of exchange rate changes on cash
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41,406 | 5,443 | ||||||
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Net (decrease) increase in cash and cash equivalents
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(1,275,486 | ) | 2,180,580 | |||||
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Cash and cash equivalents at February 1
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34,581,394 | 32,400,814 | ||||||
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Cash and cash equivalents at January 31
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$ | 33,305,908 | $ | 34,581,394 | ||||
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