met-pro corp, usa
TRANSCRIPT
COMPANY WATCH
8Pump Industry Analyst January 2013
Met-Pro Corp, USA
Key Figures (US$ million)Three months ended 31.10
2012 2011
Net Sales 29.8 25.2Of Which:Fluid Handling Technologies 10.6 7.3
Cost of Goods Sold 19.1 15.9
Gross Profit 10.7 9.3
Income from Operations 4.2 3.0Of Which:Fluid Handling Technologies 3.1 1.7
Net Income 2.8 2.1
Nine months ended 31.10 2012 2011
Net Sales 83.0 71.8Of Which:Fluid Handling Technologies 28.3 24.3
Cost of Goods Sold 54.7 46.2
Gross Profit 28.3 25.5
Income from Operations 8.4 7.3Of Which:Fluid Handling Technologies 7.9 5.9
Net Income 5.7 5.0
COMMENT
DXP Enterprises Inc, USA
Key Figures (US$ million)Three months ended 30.9
2012 2011
Sales 289.9 207.9Of Which:Innovative Pumping Solutions 38.9 31.3
Cost of Sales 206.4 148.4
Gross Profit 83.5 59.5
Selling, General and Admin Expense 59.0 45.0
Operating Income 24.5 14.4
Net Income 13.1 8.3
Nine months ended 30.9 2012 2011
Sales 804.1 588.6Of Which:Innovative Pumping Solutions 113.5 69.8
Cost of Sales 572.5 419.5
Gross Profit 231.6 169.2
Selling, General and Admin Expense 166.3 129.6
Operating Income 65.3 39.6
Net Income 36.9 22.2
COMMENT
Met-Pro Corp delivered a 34% increase in net income on 18% net sales growth for the third quarter ended 31 October 2012.
New orders received in the third quarter were US$24.4 million, compared with US$27.5 million last year. The company’s backlog of orders entering the fourth quarter reached US$28.6 million, unchanged on a year ago.
“Strong top line growth and focus on execution and cost control enabled us to achieve a 34% increase in net income. Each of the company’s business segments was profitable for the quarter. Though the pace of firm orders received in the third quarter slowed as compared to the third quarter of last year, our order backlog and
the breadth of our quotation activity remain strong. While there is continuing economic uncertainty in the US and other key global economies that could impact our forecasts, we expect to report growth in full year earnings this fiscal year, which would be our third consecutive year having done so, and are well positioned to continue this trend next year,” said Raymond De Hont, Met-Pro’s CEO and president.
Net sales for the nine months ended 31 October 2012 were US$83.0 million, up 16% on the same period last year. Net income reached US$5.7 million in the first nine months of 2012, an increase of 14% on a year ago. ■www.met-pro.com
DXP Enterprises Inc’s third quarter 2012 net income of US$13.1 million was significantly up on the net income of US$8.3 million delivered in the third quarter of 2011. Sales increased US$82.1 million, or 39.5%, to approximately US$289.9 million over the same time-frame. After excluding acquisitions, sales increased 7.4% from 2011, on a same store sales basis.
For the nine months ended 30 September 2012, net income was US$36.9 million, compared with US$22.2 million for the first nine months of 2011. Nine month 2012 sales increased US$215.5 million, or 36.6%, to approximately US$804.1 million from US$588.6 million for the same period in 2011. After excluding acquisitions, nine month sales increased 13.2% from 2011 on a same store sales basis.
David Little, DXP Enterprises chairman and CEO, said: “We are pleased to report a strong third quarter in sales and profitability. On a trailing 12 month basis, we exceeded our sales goal of US$1 billion and third quarter EBITDA margins were 10.6%. Congratulations to DXPeople for achieving our financial goals earlier than expected. We also added three new SuperCenters in the third quarter. We believe that our internal and external growth strategies will take market share despite the uncertainty and softness in the market. We look forward to our new financial goals of US$2 billion in sales by 2016 at 10% EBITDA margins and our moral goal of providing the opportunity for DXPeople and customers to be more successful.” ■www.dxpe.com