CINCINNATI, Aug. 11, 2011 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM: CECE), a leading provider of air
pollution control systems, today announced second quarter and six
month results for the period ended June 30,
2011. Additionally, the Company announced approval by its
Board of Directors of a share buyback program authorizing the
purchase of up to 0.5 million shares of CECO common stock over an
eighteen month period.
Financial highlights for the second quarter of 2011 compared
to the second quarter of 2010 include:
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Net sales were $32.5 million
compared to $34.8 million in the comparable quarter;
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Gross profit increased to $8.7
million from $8.4 million;
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Gross margin increased to 26.8%
from 24.1%;
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Selling & administrative
expenses were reduced by $1.2 million to $5.7 million;
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Selling & administrative
expenses as a percent of sales decreased from 19.8% to
17.5%;
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Operating income increased to
$2.8 million from $1.4 million in 2010;
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Operating margin increased to
8.6% from 4.0% in 2010;
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Net income was $2.0 million
compared to net income of $0.6 million in 2010;
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Net income per diluted share was
$0.12 compared to net income per diluted share of $0.04 in
2010;
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Bookings increased by 7% to
$33.5 million compared to $31.3 million in 2010;
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Cash and cash equivalents
increased to $8.4 million with only $0.3 million in bank debt;
and
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Backlog as of June 30, 2011 was
$52.6 million compared to $51.6 million as of March 31,
2011.
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Financial highlights for the six months ended June 30, 2011 compared to six months ended
June 30, 2010 include:
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Net sales were $68.5 million
compared to $69.8 million for the comparable period in
2010;
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Gross profit increased to $17.2
million from $16.4 million;
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Gross margin increased to 25.1%
from 23.5%;
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Selling & administrative
expenses were reduced to $11.7 million from $14.1
million;
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Selling & administrative
expenses as a percent of sales decreased from 20.2% to
17.1%;
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Operating income increased to
$5.3 million from $2.0 million in 2010;
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Operating margin increased to
7.7% from 2.9% in 2010;
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Net income was $3.2 million
compared to net income of $0.7 million in 2010;
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Net income per diluted share was
$0.20 compared to net income per diluted share of $0.05;
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Year-to-date bookings increased
by 14% to $66.8 million compared to $58.4 million in
2010.
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Our year-over-year bookings have
increased by 14% and we are showing significant increases in gross
margins and operating margins for the three and six month periods
ended June 30, 2011.
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"I am very pleased with the results from the second quarter and
the ongoing improvement in financial performance that the Company
has achieved," commented CECO's Chief Executive Officer,
Jeff Lang. "Our slightly lower
revenues in the quarter are the result of our intentional pruning
of lower margin customer segments from our backlog, primarily in
our Contracting/Services Group. Nevertheless, we expect that
revenues will increase as our domestic and global sales initiatives
take effect."
Mr. Lang continued, "We continue to realize the positive results
from global growth, streamlining and gross margin enhancement that
we began implementing last year. Additionally, nearly 32% of
our 2011 bookings were from international customers which provides
further proof that our global expansion initiatives continue to be
successful."
CECO will host a conference call on Thursday, August 11, 2011 at 8:30 a.m. EDT to review its financial results for
the quarter. Conferencing details are as follows:
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Dial in number:
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800-901-5259
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International dial in
number:
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617-786-4514
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Participant passcode:
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65043320
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Replay:
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888-286-8010
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International:
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617-801-6888
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Passcode:
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63652961
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ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North
America's largest independent air pollution control company.
CECO provides a wide spectrum of air quality services and
products including: industrial air filters, environmental
maintenance, monitoring and management services, and air quality
improvement systems. CECO is a full-service provider to the
steel, military, aluminum, automotive, ethanol, aerospace, electric
power, semiconductor, chemical, cement, metalworking, glass,
foundry and virtually all industrial process industries.
For more information on CECO Environmental please visit the
company's website at http://www.cecoenviro.com.
Contact:
Corporate Information
Jeff Lang, CECO Environmental
Corp.
Email: investors@cecoenviro.com
1-800-333-5475
|
CECO ENVIRONMENTAL
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
Dollars in thousands,
except per share data
|
|
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THREE MONTHS ENDED
JUNE 30,
|
SIX MONTHS ENDED
JUNE 30,
|
|
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2011
|
2010
|
2011
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2010
|
|
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Net sales
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$ 32,537
|
$ 34,776
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$ 68,493
|
$ 69,797
|
|
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Cost of sales
|
23,839
|
26,377
|
51,322
|
53,381
|
|
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Gross profit
|
8,698
|
8,399
|
17,171
|
16,416
|
|
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Selling and
administrative
|
5,741
|
6,904
|
11,688
|
14,138
|
|
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Amortization
|
112
|
125
|
223
|
260
|
|
|
Income from operations
|
2,845
|
1,370
|
5,260
|
2,018
|
|
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Other income, net
|
360
|
32
|
333
|
(53)
|
|
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Interest expense (including
related party interest of $59 and $59, and
$118 and $118,
respectively)
|
(284)
|
(308)
|
(574)
|
(601)
|
|
|
|
|
|
|
|
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Income from continuing
operations before income taxes
|
2,921
|
1,094
|
5,019
|
1,364
|
|
|
|
|
|
|
|
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Income tax expense
|
968
|
417
|
1,808
|
520
|
|
|
|
|
|
|
|
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Income from continuing
operations
|
1,953
|
677
|
3,211
|
844
|
|
|
|
|
|
|
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Loss from discontinued
operations, net of tax
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0
|
(95)
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0
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(165)
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|
|
|
|
|
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Net income
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$ 1,953
|
$ 582
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$ 3,211
|
$ 679
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|
|
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|
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Per share data:
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|
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Basic income from continuing
operations
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$ 0.14
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$ 0.05
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$ 0.22
|
$ 0.06
|
|
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Basic loss from discontinued
operations
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0.00
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(0.01)
|
0.00
|
(0.01)
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|
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Basic net income
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$ 0.14
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$ 0.04
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$ 0.22
|
$ 0.05
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|
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Diluted income from continuing
operations
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$ 0.12
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$ 0.05
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$ 0.20
|
$ 0.06
|
|
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Diluted loss from discontinued
operations
|
0.00
|
(0.01)
|
0.00
|
(0.01)
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|
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Diluted net income
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$ 0.12
|
$ 0.04
|
$ 0.20
|
$ 0.05
|
|
|
|
|
|
|
|
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Weighted average number of
common shares outstanding:
|
|
|
|
|
|
|
|
|
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Basic
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14,334,116
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14,304,047
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14,324,040
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14,299,598
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|
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Diluted
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17,141,633
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17,111,818
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17,117,440
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14,393,750
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|
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|
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CECO ENVIRONMENTAL
CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
Dollars in thousands,
except per share data
|
|
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JUNE
30,
2011
|
DECEMBER 31,
2010
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Current assets:
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Cash and cash
equivalents
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$ 8,439
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$ 5,792
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Accounts receivable,
net
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20,061
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26,772
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Costs and estimated
earnings in excess of billings on uncompleted contracts
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10,569
|
8,345
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Inventories,
net
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5,381
|
4,432
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Prepaid expenses and other
current assets
|
2,819
|
2,509
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|
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Assets held for
sale
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0
|
526
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Current assets of
discontinued operations
|
67
|
76
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Total current
assets
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47,336
|
48,452
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Property and equipment,
net
|
5,643
|
5,880
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Goodwill
|
14,776
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14,713
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Intangibles – finite life,
net
|
715
|
966
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Intangibles – indefinite
life
|
3,233
|
3,225
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Deferred income tax asset,
net
|
602
|
602
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|
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Deferred charges and other
assets
|
754
|
953
|
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$ 73,059
|
$ 74,791
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|
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LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
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Current liabilities:
|
|
|
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Current debt
|
$
317
|
$
0
|
|
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Accounts payable and
accrued expenses
|
14,337
|
17,041
|
|
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Billings in excess of
costs and estimated earnings on uncompleted contracts
|
5,496
|
7,810
|
|
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Accrued income
taxes
|
1,158
|
1,646
|
|
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Total current
liabilities
|
21,308
|
26,497
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|
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Other liabilities
|
2,322
|
2,320
|
|
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Convertible subordinated notes
(including related parties notes of $3,950)
|
10,600
|
10,800
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Total
liabilities
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34,230
|
39,617
|
|
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Shareholders' equity:
|
|
|
|
|
Preferred Stock, $.01 par value;
10,000 shares authorized, none issued
|
------
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------
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|
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Common stock, $0.01 par value;
100,000,000 shares authorized, 14,479,917 and 14,456,659
shares
issued in 2011 and 2010,
respectively
|
145
|
144
|
|
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Capital in excess of par
value
|
43,463
|
43,237
|
|
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Accumulated deficit
|
(3,032)
|
(6,243)
|
|
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Accumulated other comprehensive
loss
|
(1,391)
|
(1,608)
|
|
|
39,185
|
35,530
|
|
|
Less treasury stock, at cost,
137,920 shares in 2011 and 2010
|
(356)
|
(356)
|
|
|
Total shareholders'
equity
|
38,829
|
35,174
|
|
|
$73,059
|
$ 74,791
|
|
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.
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All forward-looking statements are subject to certain
risks, uncertainties and assumptions. These risks and
uncertainties, which are more fully described in CECO's Annual and
Quarterly Reports filed with the Securities and Exchange
Commission, and include, but are not limited to: our dependence on
fixed price contracts and the risks associated therewith, including
actual costs exceeding our estimates and our method of accounting
for contract revenue; our history of losses and possibility of
further losses; fluctuations in operating results from period to
period due to seasonality of our business; the effect of growth on
our infrastructure, resources, and existing sales; our ability to
expand our operations in both new and existing markets; the
potential for contract delay or cancellation; the potential for
fluctuations in prices for manufactured components and raw
materials; the impact of federal, state or local government
regulations; economic and political conditions generally; and the
effect of competition in the air pollution control and industrial
ventilation industry. Should one or more of these risks or
uncertainties materialize, or should the assumptions prove
incorrect, actual results may vary in material aspects from those
currently anticipated. We caution investors that other
factors might, in the future, prove to be important in affecting
our results of operations. New factors emerge from time to time and
it is not possible for management to predict all such factors, nor
can it assess the impact of each such factor on the business or the
extent to which any factor, or a combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. Investors are further cautioned not to
place undue reliance on such forward-looking statements as they
speak only to our views as of the date the statement is made.
Except as required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether because of
new information, future events or otherwise.
SOURCE CECO Environmental Corp.