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, 2009. Net sales for the third quarter ended October 31, 2009 were $19.8 million compared with net sales of $28.0 million for the same quarter last year. For the third quarter, the Company reported net income of $1.0 million, or $0.07 per diluted share, compared with net income of $3.0 million, or $0.20 per diluted share, for the third quarter of last year. "Results in the quarter reflect the lagging effect on both net sales and earnings from the slowdown in global economic activity that began last year," stated De Hont. "Reflecting some improvement in our markets, new orders in the third quarter were $25.5 million, our best quarterly bookings since the third quarter of last year and up 31% sequentially from our second quarter. The recovery in new orders is being led by an improvement in large project bookings within our Product Recovery/Pollution Control Technologies segment, which totaled $5.5 million in the third quarter, the highest quarterly large project bookings since the quarter ended January 31, 2007. With end markets improving, we believe our wide breadth of high-quality comprehensive solutions that meet the increasing demand for a cleaner, more energy efficient environment will enable us to continue to increase our share of this growing global market." During the first nine months of the current fiscal year, the Company generated a record $14.8 million in cash flow from operating activities, resulting in a record $32.3 million cash position on October 31, 2009. Net sales for the nine months ended October 31, 2009 were $60.3 million compared with $78.8 million for the same period last year. Net income for the nine months ended October 31, 2009 totaled $3.2 million compared with $7.6 million for the same period last year. For the nine months ended October 31, 2009, earnings were $0.22 per diluted share compared with earnings of $0.50 per diluted share for last year's first nine months. "We are encouraged by our solid third quarter bookings, the second sequential quarter of increasing new orders, and especially our recent success in closing several large projects," added De Hont. "While these new orders are signs of an improvement in the markets we serve, the lack of any significant global economic growth represents a challenge to capital spending, necessitating continued caution regarding the strength of any recovery in the near term. With record cash, our balance sheet remains extremely strong. We continue to focus on increasing our operating efficiencies, which has allowed us to effectively compete for new business while achieving 34% gross margins for the first nine months, consistent with the same period a year ago despite lower revenue levels. The underlying fundamental strength of our business leaves us well positioned to create long-term sustainable growth and value for our shareholders." On October 21, 2009, the Company declared a quarterly dividend of $0.06 per share payable December 11, 2009 to shareholders of record at the close of business on November 27, 2009. This is the thirty-fifth consecutive year the Company has paid 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, 2009, 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 http://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 39891810) at 10:55 AM (Eastern) today, November 20, 2009. A taped replay of the conference call will be available within two hours of the conclusion of the call and until December 4, 2009. 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 39891810. About Met-Pro Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, was recently recognized as one of "America's Fastest Growing Small Companies" by Fortune Small Business magazine. In 2008, the Company was also named one of America's "200 Best Small Companies" by Forbes magazine for the third 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 is 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 http://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 http://www.met-pro.com/ . Met-Pro Corporation Consolidated Statement of Income (unaudited) Three Months Ended Nine Months Ended October 31, October 31, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $19,807,781 $27,979,483 $60,334,372 $78,781,675 Cost of goods sold 13,131,244 17,734,396 39,538,914 51,311,316 ---------- ---------- ---------- ---------- Gross profit 6,676,537 10,245,087 20,795,458 27,470,359 Operating expenses Selling 2,366,455 3,139,258 7,415,388 8,111,853 General and administrative 2,771,681 2,949,983 8,599,958 8,501,240 --------- --------- --------- --------- Income from operations 1,538,401 4,155,846 4,780,112 10,857,266 Interest expense (58,994) (51,182) (166,449) (179,948) Other income, net 61,689 77,838 138,441 376,768 ------ ------ ------- ------- Income before taxes 1,541,096 4,182,502 4,752,104 11,054,086 Provision for taxes 516,266 1,171,136 1,591,957 3,414,114 ------- --------- --------- --------- Net income $1,024,830 $3,011,366 $3,160,147 $7,639,972 ---------- ---------- ---------- ---------- Basic earnings per share $.07 $.20 $.22 $.51 Diluted earnings per share $.07 $.20 $.22 $.50 ---- ---- ---- ---- Average common shares outstanding: Basic shares 14,600,109 15,042,572 14,600,109 15,013,042 Diluted shares 14,676,525 15,402,764 14,676,297 15,359,048 ---------- ---------- ---------- ---------- Met-Pro Corporation Consolidated Balance Sheet October 31, January 31, 2009 2009 ---- ---- Assets (unaudited) Current assets Cash and cash equivalents $32,285,796 $21,749,653 Accounts receivable, net of allowance for doubtful accounts of approximately $268,000 and $167,000, respectively 13,537,023 20,177,672 Inventories 16,681,236 20,236,865 Prepaid expenses, deposits and other current assets 1,474,154 1,997,542 --------- --------- Total current assets 63,978,209 64,161,732 Property, plant and equipment, net 20,240,188 19,389,597 Costs in excess of net assets of businesses acquired, net 20,798,913 20,798,913 Other assets 697,687 402,062 ------- ------- Total assets $105,714,997 $104,752,304 ------------ ------------ Liabilities and shareholders' equity Current liabilities Current portion of long-term debt $984,301 $746,042 Accounts payable 4,584,270 5,464,629 Accrued salaries, wages and expenses 4,376,192 4,546,199 Dividend payable 876,007 876,007 Customers' advances 655,599 356,008 Deferred income taxes 250,782 250,782 ------- ------- Total current liabilities 11,727,151 12,239,667 Long-term debt 3,730,580 3,753,228 Other non-current liabilities 8,501,119 8,855,912 Deferred income taxes 1,149,876 1,126,016 --------- --------- Total liabilities 25,108,726 25,974,823 ---------- ---------- Shareholders' equity Common shares, $.10 par value; 36,000,000 shares authorized, 15,928,679 shares issued, of which 1,328,570 shares were reacquired and held in treasury at the respective dates 1,592,868 1,592,868 Additional paid-in capital 2,959,818 2,465,193 Retained earnings 90,259,436 89,727,308 Accumulated other comprehensive loss (3,522,256) (4,324,293) Treasury shares, at cost (10,683,595) (10,683,595) ----------- ----------- Total shareholders' equity 80,606,271 78,777,481 ---------- ---------- Total liabilities and shareholders' equity $105,714,997 $104,752,304 ------------ ------------ Met-Pro Corporation Consolidated Business Segment Data (unaudited) Three Months Ended Nine Months Ended October 31, October 31, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales Product recovery/pollution control technologies $9,012,363 $13,863,654 $26,900,405 $37,554,600 Fluid handling technologies 5,781,338 8,213,799 18,491,303 23,070,719 Mefiag filtration technologies 2,502,795 2,809,550 6,981,727 9,114,722 Filtration/purification technologies 2,511,285 3,092,480 7,960,937 9,041,634 --------- --------- --------- --------- $19,807,781 $27,979,483 $60,334,372 $78,781,675 ----------- ----------- ----------- ----------- Income (loss) from operations Product recovery/ pollution control technologies $561,966 $1,853,682 $1,610,321 $4,444,955 Fluid handling technologies 833,094 1,785,470 3,110,175 5,022,442 Mefiag filtration technologies 47,062 188,082 (111,372) 525,984 Filtration/purification technologies 96,279 328,612 170,988 863,885 ------ ------- ------- ------- $1,538,401 $4,155,846 $4,780,112 $10,857,266 ---------- ---------- ---------- ----------- October 31, January 31, 2009 2009 ---- ---- Identifiable Assets Product recovery/pollution control technologies $33,928,381 $39,623,284 Fluid handling technologies 18,749,392 22,056,812 Mefiag filtration technologies 12,013,591 11,410,677 Filtration/purification technologies 8,408,003 9,369,905 --------- --------- 73,099,367 82,460,678 Corporate 32,615,630 22,291,626 --------- ---------- ---------- $105,714,997 $104,752,304 ------------ ------------ Met-Pro Corporation Consolidated Statement of Cash Flows (unaudited) Nine Months Ended October 31, 2009 2008 ---- ---- Increase (Decrease) in Cash and Cash Equivalents Cash flows from operating activities Net income $3,160,147 $7,639,972 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,458,401 1,441,242 Deferred income taxes (1,792) 1,147 (Gain) on sale of property and equipment, net (13,695) (18,174) Stock-based compensation 494,625 324,153 Allowance for doubtful accounts 101,492 26,580 (Increase) decrease in operating assets: Accounts receivable 6,910,662 (590,531) Inventories 3,832,976 (167,617) Prepaid expenses, deposits and other assets 251,165 461,085 Increase (decrease) in operating liabilities: Accounts payable and accrued expenses (1,385,430) (988,259) Customers' advances 298,448 86,744 Other non-current liabilities (354,793) (432,747) Net cash provided by operating activities 14,752,206 7,783,595 ---------- --------- Cash flows from investing activities Proceeds from sale of property and equipment 20,382 20,785 Acquisitions of property and equipment (1,826,975) (1,368,841) Net cash used in investing activities (1,806,593) (1,348,056) ---------- ---------- Cash flows from financing activities Proceeds from new borrowing 485,336 - Reduction of debt (373,336) (1,272,597) Exercise of stock options - 1,912,398 Payment of dividends (2,628,020) (2,483,956) Acquisition of treasury stock - (7,694,333) Net cash used in financing activities (2,516,020) (9,538,488) ---------- ---------- Effect of exchange rate changes on cash 106,550 28,445 ------- ------ Net increase in cash and cash equivalents 10,536,143 (3,074,504) Cash and cash equivalents at February 1 21,749,653 21,906,877 Cash and cash equivalents at October 31 $32,285,796 $18,832,373 ----------- ----------- Contact: Investor Contact: Gary J. Morgan Senior Vice President of Finance, CFO 215-723-6751 Joseph Hassett, VP Gregory FCA Communications 610-228-2110 DATASOURCE: Met-Pro Corporation CONTACT: Investor Contact: Gary J. Morgan, Senior Vice President of Finance, CFO of Met-Pro Corporation, +1-215-723-6751; or Joseph Hassett, VP of Gregory FCA Communications, +1-610-228-2110 Web Site: http://www.met-pro.com/

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