BUSINESS SEGMENTS AND OTHER INFORMATION

12 Months Ended

Jan. 31, 2013

BUSINESS SEGMENTS AND OTHER INFORMATION [Abstract]

BUSINESS SEGMENTS AND OTHER INFORMATION

NOTE 14:              BUSINESS SEGMENTS AND OTHER INFORMATION

The segment discussion outlined below represents the segment structure as determined by management in accordance with FASB ASC Topic 280, "Segment Reporting".

The Company has five operating segments which are aggregated into three reportable segments: Product Recovery/Pollution Control Technologies, Fluid Handling Technologies and Mefiag Filtration Technologies, and one other segment (Filtration/Purification Technologies). The Filtration/Purification Technologies segment is comprised of two operating segments that do not meet the criteria for aggregation outlined in FASB ASC Topic 280-10-50-12. The Company's analysis is that FASB ASC Topic 280-10-50-12 permits the aggregation of operating segments if, individually, each operating segment does not meet any of the following quantitative thresholds: (i) reported revenue is 10% or more of combined revenue of all reported operating segments, (ii) the absolute amount of reported profit or loss is 10% or more of the greater, in absolute amounts, of either the combined reported profit of all operating segments that did not report a loss or the combined reported loss of all operating segments that did report a loss, and (iii) its assets are 10% or more of the combined assets of all operating segments.  As of the fiscal years ended January 31, 2013, 2012 and 2011, none of the operating segments included in the Filtration/Purification Technologies segment met these criteria, and at least 75% of total consolidated revenue was included in the Product Recovery/Pollution Control Technologies, Fluid Handling Technologies and Mefiag Filtration Technologies reporting segments; therefore the Company determined the aggregation of these operating segments into this other segment was appropriate under FASB ASC Topic 280-10-50-12.

The Company expects, based upon the current financial performance of its business units, the segmentation reporting will continue to be presented in future periods using the three reportable segments and the one other segment.

The following is a description of each segment:

Product Recovery/Pollution Control Technologies: This reportable segment consists of one operating segment that manufactures products for the purification of air or liquids.  Many of these products are custom designed and engineered to solve a customer's product recovery or pollution control issues.  The products are sold worldwide through Company sales personnel and a network of manufacturer's representatives.  This reporting segment is comprised of the Met-Pro Environmental Air Solutions (the combination of the Duall, Systems, Flex-Kleen, Bio-Reaction Industries and Met-Pro Industrial Services product brands), Met-Pro Product Recovery/Pollution Control Technologies Inc., and Strobic Air Corporation business units.

Fluid Handling Technologies: This reportable segment consists of one operating segment that manufactures high-quality centrifugal pumps that are suitable for difficult applications, including the pumping of acids, brines, caustics, bleaches, seawater, high-temperature liquids and a wide variety of waste liquids.  A variety of pump configurations make these products adaptable to almost any pumping application.  These products are sold worldwide through an extensive network of distributors.  This reporting segment is comprised of Met-Pro Global Pump Solutions business unit (consisting of the Dean Pump, Fybroc and Sethco product brands).

Mefiag Filtration Technologies:  This reportable segment consists of one operating segment that produces filter systems using horizontal disc technology for tough, corrosive applications in the plating, metal finishing and printing industries.  These products are sold worldwide through Company sales personnel and a network of distributors.  This reporting segment is comprised of the Mefiag, Mefiag B.V. and Mefiag (Guangzhou) Filter Systems Ltd. business units.

Filtration/Purification Technologies: This other segment consists of two operating segments that produce the following products: proprietary chemicals for the treatment of municipal drinking water systems and boiler and cooling tower systems; cartridges and filter housings; and filtration products for difficult industrial air and liquid applications.  This other segment is comprised of the Keystone Filter and Pristine Water Solutions operating segments.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. The Company evaluates the performance of these segments based on many factors including sales, sales trends, margins and operating performance.

No significant intercompany revenue is realized in these reporting segments. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management.

Except for the information reported on a segment basis, the Company does not accumulate net sales information by product or service and therefore, the Company does not disclose net sales by product or service because to do so would be impractical.  The Company's reportable segments are however organized as groups of similar products and services.

Financial information for the three reporting segments and one other segment is as follows:

	Years ended January 31,
	2013		2012		2011
Net sales to unaffiliated customers
Product Recovery/Pollution Control Technologies	$	49,061,038	$	43,568,042	$	41,426,858
Fluid Handling Technologies		37,693,475		33,264,149		27,488,559
Mefiag Filtration Technologies		12,975,840		12,945,610		9,897,038
Filtration/Purification Technologies		10,211,569		10,383,591		10,052,971
	$	109,941,922	$	100,161,392	$	88,865,426
Income from operations
Product Recovery/Pollution Control Technologies	$	1,033,954	$	1,198,674	$	2,046,716
Fluid Handling Technologies		9,959,229		8,220,768		5,926,592
Mefiag Filtration Technologies		805,932		780,586		401,695
Filtration/Purification Technologies		78,696		391,256		595,318
	$	11,877,811	$	10,591,284	$	8,970,321
Depreciation and amortization expense
Product Recovery/Pollution Control Technologies	$	731,742	$	708,507	$	657,724
Fluid Handling Technologies		779,865		720,841		672,072
Mefiag Filtration Technologies		293,604		265,192		265,261
Filtration/Purification Technologies		217,239		219,878		229,628
	$	2,022,450	$	1,914,418	$	1,824,685
Capital expenditures
Product Recovery/Pollution Control Technologies	$	953,861	$	692,383	$	305,803
Fluid Handling Technologies		363,140		580,354		476,104
Mefiag Filtration Technologies		299,801		420,186		138,384
Filtration/Purification Technologies		34,951		110,886		57,679
		1,651,753		1,803,810		977,970
Corporate		345,736		293,423		687,979
	$	1,997,489	$	2,097,233	$	1,665,949
Identifiable assets at January 31
Product Recovery/Pollution Control Technologies	$	37,932,865	$	36,444,763	$	34,003,251
Fluid Handling Technologies		20,093,881		19,290,035		18,114,257
Mefiag Filtration Technologies		15,643,078		14,017,572		12,814,143
Filtration/Purification Technologies		8,011,212		8,368,652		8,369,385
		81,681,036		78,121,022		73,301,036
Corporate		34,574,145		37,388,193		34,745,292
	$	116,255,181	$	115,509,215	$	108,046,328

The Company follows the practice of allocating general corporate expenses, including depreciation and amortization expense, among the reporting segments based on a percentage of sales.

Geographic Information:

Transfers between geographic areas are accounted for at cost and consistent with rules and regulations of governing tax authorities.  Such transfers are eliminated in the consolidated financial statements. Income from operations by geographic segment includes an allocation of general corporate expenses.  Identifiable assets are those that can be directly associated with the geographic area. Geographic information for the three years ended January 31 is presented in the following table:

	2013		2012		2011
Net sales:
United States	$	79,306,963	$	72,180,541	$	66,459,905
Foreign		30,634,959		27,980,851		22,405,521
	$	109,941,922	$	100,161,392	$	88,865,426
Foreign Sales by Segment:
Product Recovery/Pollution Control Technologies	$	8,646,957	$	7,492,321	$	7,912,462
Fluid Handling Technologies		11,781,689		10,072,782		7,086,069
Mefiag Filtration Technologies		10,106,050		10,290,964		7,310,354
Filtration/Purification Technologies		100,263		124,784		96,636
	$	30,634,959	$	27,980,851	$	22,405,521
Income from operations:
United States	$	8,625,080	$	8,042,360	$	7,305,971
Foreign		3,252,731		2,548,924		1,664,350
	$	11,877,811	$	10,591,284	$	8,970,321
Total assets:
United States	$	103,902,569	$	104,812,114	$	97,875,243
Foreign		12,352,612		10,697,101		10,171,085
	$	116,255,181	$	115,509,215	$	108,046,328