CINCINNATI, Nov. 10, 2011 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM: CECE), a leading global provider
of air pollution control systems, today announced third quarter and
nine month results for the period ended September 30, 2011.
Financial highlights for the third quarter of 2011 compared
to the third quarter of 2010 include:
Net sales were $32.9 million
compared to $33.9 million in the comparable quarter;
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Gross profit increased to $9.7
million from $7.8 million;
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Gross margin increased to 29.5%
from 23.0%;
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Selling & administrative
expenses as a percent of sales decreased to 19.1% from
19.5%;
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Operating income increased to
$3.3 million from $1.6 million in 2010;
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Operating margin increased to
10.0% from 4.7% in 2010;
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Net income was $2.3 million
compared to net income of $0.7 million in 2010;
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Net income per diluted share was
$0.14 compared to net income per diluted share of $0.05 in
2010;
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Bookings were $35.6 million
compared to $35.1 million in 2010;
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Cash and cash equivalents
increased to $9.9 million with no bank debt; and
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Backlog as of September 30, 2011
was $55.3 million compared to $52.6 million as of June 30,
2011.
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Financial highlights for the nine months ended September 30, 2011 compared to nine months ended
September 30, 2010 include:
Net sales were $101.4 million
compared to $103.7 million for the comparable period in
2010;
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Gross profit increased to $26.9
million from $24.2 million;
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Gross margin increased to 26.5%
from 23.3%;
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Selling & administrative
expenses as a percent of sales decreased to 17.8% from
20.1%;
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Operating income increased to
$8.6 million from $3.6 million in 2010;
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Operating margin increased to
8.5% from 3.5% in 2010;
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Net income was $5.5 million
compared to net income of $1.4 million in 2010;
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Net income per diluted share was
$0.34 compared to net income per diluted share of $0.09;
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Year-to-date bookings increased
by 10% to $102.4 million compared to $93.5 million in
2010.
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"I am very pleased with the results from the third quarter and
the ongoing improvement in financial performance that the Company
is achieving. CECO's substantial improvement in performance is a
direct result of our focus on favorable product mix changes, better
sales price management, global expansion, and our team's meticulous
approach to operational excellence," commented CECO's Chief
Executive Officer, Jeff Lang. "Our
slightly lower revenues in the quarter are the result of our
intentional portfolio pruning of lower margin customer segments
that we effected earlier in 2011. In addition, our year-over-year
bookings and improved gross margin backlog are improving steadily
as our domestic and global sales initiatives take effect."
Mr. Lang continued, "We continue to realize the positive results
from global growth, streamlining and operating income margin
enhancement that we began implementing in Q1 of 2010. We expect
these trends to continue as we move into the final quarter of 2011
and into 2012."
CECO will host a conference call on Thursday, November 10, 2011 at 8:30 a.m. EST to review its financial results for
the quarter. Conferencing details are as follows:
Dial in number:
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866-783-2142
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International dial in
number:
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857-350-1601
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Participant passcode:
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52446760
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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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78699339
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ABOUT CECO ENVIRONMENTAL
CECO Environmental is a global air pollution company with
substantial global operations and revenues. CECO provides a
wide spectrum of air quality products and services including
engineered equipment, cyclones, scrubbers, dampers, diverters,
RTO's, component parts, and monitoring and management
services. Industries served include refining, petro-chemical,
power, steel, aluminum, automotive, chemical, and virtually all
industrial processes. Revenue from engineered equipment is
approximately 75% and 25% from parts and services. Global
Growth, Operational Excellence, Margin Expansion, Safety, and
Employee Development are CECO's core competencies and long term
objectives.
For more information on CECO Environmental please visit the
company's website at http://www.cecoenviro.com.
CECO
ENVIRONMENTAL CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Dollars in thousands, except per
share data
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THREE MONTHS ENDED
SEPTEMBER 30,
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NINE MONTHS ENDED
SEPTEMBER 30,
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2011
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2010
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2011
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2010
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Net sales
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$
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32,947
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$
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33,860
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$
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101,440
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$
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103,657
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Cost of sales
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23,249
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26,132
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74,571
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79,513
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Gross profit
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9,698
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7,728
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26,869
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24,144
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Selling and
administrative
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6,270
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6,648
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17,958
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20,786
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Amortization
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118
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118
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341
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378
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Gain on sale of operating
equipment
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0
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(608)
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0
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(608)
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Income from
operations
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3,310
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1,570
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8,570
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3,588
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Other income, (expense)
net
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103
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(68)
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436
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(121)
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Interest expense (including
related party interest of $59 and $58, and $177 and $171,
respectively)
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(296)
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(341)
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(870)
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(942)
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Income from continuing
operations before income taxes
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3,117
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1,161
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8,136
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2,525
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Income tax expense
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798
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488
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2,606
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1,008
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Income from continuing
operations
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2,319
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673
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5,530
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1,517
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Income (loss) from discontinued
operations, net of tax
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0
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10
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0
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(155)
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Net income
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$
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2,319
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$
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683
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$
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5,530
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$
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1,362
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Per share data:
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Basic income from continuing
operations
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$
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0.16
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$
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0.05
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$
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0.39
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$
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0.11
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Basic income (loss) from
discontinued operations
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0.00
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0.00
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0.00
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(0.01)
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Basic net income
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$
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0.16
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$
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0.05
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$
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0.39
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$
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0.10
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Diluted income from continuing
operations
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$
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0.14
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$
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0.05
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$
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0.34
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$
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0.10
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Diluted income (loss) from
discontinued operations
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0.00
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0.00
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0.00
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(0.01)
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Diluted net income
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$
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0.14
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$
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0.05
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$
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0.34
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$
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0.09
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Weighted average number of
common shares outstanding:
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Basic
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14,371,752
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14,320,188
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14,340,119
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14,304,554
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Diluted
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17,157,305
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17,128,215
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17,130,767
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14,396,965
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CECO
ENVIRONMENTAL CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited)
Dollars in thousands, except per
share data
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SEPTEMBER 30,
2011
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DECEMBER 31,
2010
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ASSETS
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Current assets:
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Cash and cash
equivalents
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$
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9,918
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$
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5,792
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Accounts receivable,
net
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20,618
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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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10,268
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8,345
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Inventories,
net
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5,056
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4,432
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Prepaid expenses and other
current assets
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2,605
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2,509
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Assets held for
sale
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0
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526
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Current assets of
discontinued operations
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67
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76
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Total current
assets
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48,532
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48,452
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Property and equipment,
net
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5,679
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5,880
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Goodwill
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14,628
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14,713
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Intangibles – finite life,
net
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619
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966
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Intangibles – indefinite
life
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3,214
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3,225
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Deferred income tax asset,
net
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602
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602
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Deferred charges and other
assets
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1,023
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953
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$
|
74,297
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$
|
74,791
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable and
accrued expenses
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$
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12,000
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$
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17,041
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Billings in excess of
costs and estimated earnings on uncompleted contracts
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8,494
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7,810
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Accrued income
taxes
|
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475
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1,646
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Total current
liabilities
|
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20,969
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26,497
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Other liabilities
|
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2,212
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|
2,320
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Convertible subordinated notes
(including related parties notes of $3,950)
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10,100
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10,800
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Total
liabilities
|
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33,281
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39,617
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Shareholders' equity:
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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, $0.01 par value;
100,000,000 shares authorized, 14,617,417 and 14,456,659 shares
issued in 2011 and 2010, respectively
|
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146
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|
144
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Capital in excess of par
value
|
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|
44,155
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|
43,237
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Accumulated deficit
|
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(1,076)
|
|
|
|
(6,243)
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Accumulated other comprehensive
loss
|
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|
(1,801)
|
|
|
|
(1,608)
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|
41,424
|
|
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|
35,530
|
|
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Less treasury stock, at cost,
146,820 and 137,920 shares in 2011 and 2010,
respectively
|
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(408)
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|
|
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(356)
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Total shareholders'
equity
|
|
|
41,016
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|
|
|
35,174
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$
|
74,297
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|
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$
|
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.
Contact:
Corporate Information
Jeff Lang, CECO Environmental
Corp.
Email: investors@cecoenviro.com
1-800-333-5475
SOURCE CECO Environmental Corp.