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;

Gross profit increased to $9.7 million from $7.8 million;

Gross margin increased to 29.5% from 23.0%;

Selling & administrative expenses as a percent of sales decreased to 19.1% from 19.5%;

Operating income increased to $3.3 million from $1.6 million in 2010;

Operating margin increased to 10.0% from 4.7% in 2010;

Net income was $2.3 million compared to net income of $0.7 million in 2010;

Net income per diluted share was $0.14 compared to net income per diluted share of $0.05 in 2010;

Bookings were $35.6 million compared to $35.1 million in 2010;

Cash and cash equivalents increased to $9.9 million with no bank debt; and

Backlog as of September 30, 2011 was $55.3 million compared to $52.6 million as of June 30, 2011.





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;

Gross profit increased to $26.9 million from $24.2 million;

Gross margin increased to 26.5% from 23.3%;

Selling & administrative expenses as a percent of sales decreased to 17.8% from 20.1%;

Operating income increased to $8.6 million from $3.6 million in 2010;

Operating margin increased to 8.5% from 3.5% in 2010;

Net income was $5.5 million compared to net income of $1.4 million in 2010;

Net income per diluted share was $0.34 compared to net income per diluted share of $0.09;

Year-to-date bookings increased by 10% to $102.4 million compared to $93.5 million in 2010.





"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:



866-783-2142

International dial in number:



857-350-1601

Participant passcode:



52446760







Replay:



888-286-8010

International:



617-801-6888

Passcode:



78699339





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







































THREE MONTHS ENDED

SEPTEMBER 30,





NINE MONTHS ENDED

SEPTEMBER 30,







2011





2010





2011





2010



Net sales



$

32,947





$

33,860





$

101,440





$

103,657



Cost of sales





23,249







26,132







74,571







79,513





































Gross profit





9,698







7,728







26,869







24,144



Selling and administrative





6,270







6,648







17,958







20,786



Amortization





118







118







341







378



Gain on sale of operating equipment





0







(608)







0







(608)





































Income from operations





3,310







1,570







8,570







3,588



Other income, (expense) net





103







(68)







436







(121)



Interest expense (including related party interest of $59 and $58, and $177 and $171, respectively)





(296)







(341)







(870)







(942)





































Income from continuing operations before income taxes





3,117







1,161







8,136







2,525



Income tax expense





798







488







2,606







1,008





































Income from continuing operations





2,319







673







5,530







1,517



Income (loss) from discontinued operations, net of tax





0







10







0







(155)















































Net income



$

2,319





$

683





$

5,530





$

1,362















































Per share data:

































Basic income from continuing operations



$

0.16





$

0.05





$

0.39





$

0.11



Basic income (loss) from discontinued operations





0.00







0.00







0.00







(0.01)















































Basic net income



$

0.16





$

0.05





$

0.39





$

0.10















































Diluted income from continuing operations



$

0.14





$

0.05





$

0.34





$

0.10



Diluted income (loss) from discontinued operations





0.00









0.00







0.00







(0.01)















































Diluted net income



$

0.14





$

0.05





$

0.34





$

0.09















































Weighted average number of common shares outstanding:

































Basic





14,371,752







14,320,188







14,340,119







14,304,554





































Diluted





17,157,305







17,128,215







17,130,767







14,396,965











































CECO ENVIRONMENTAL CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

Dollars in thousands, except per share data























SEPTEMBER 30,

2011





DECEMBER 31,    

2010



ASSETS

















Current assets:

















Cash and cash equivalents



$

9,918





$

5,792



Accounts receivable, net





20,618







26,772



Costs and estimated earnings in excess of billings on uncompleted contracts





10,268







8,345



Inventories, net





5,056







4,432



Prepaid expenses and other current assets





2,605







2,509



Assets held for sale





0







526



Current assets of discontinued operations





67







76



Total current assets





48,532







48,452









Property and equipment, net





5,679







5,880



Goodwill





14,628







14,713



Intangibles – finite life, net





619







966



Intangibles – indefinite life





3,214







3,225



Deferred income tax asset, net





602







602



Deferred charges and other assets





1,023







953







$

74,297





$

74,791



























LIABILITIES AND SHAREHOLDERS' EQUITY

















Current liabilities:

















Accounts payable and accrued expenses  



$

12,000





$

17,041



Billings in excess of costs and estimated earnings on uncompleted contracts





8,494







7,810



Accrued income taxes





475







1,646



Total current liabilities





20,969







26,497



Other liabilities





2,212







2,320



Convertible subordinated notes (including related parties notes of $3,950)





10,100







10,800



Total liabilities





33,281







39,617









Shareholders' equity:

















Preferred stock, $.01 par value; 10,000 shares authorized, none issued













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





146







144



Capital in excess of par value





44,155







43,237



Accumulated deficit





(1,076)







(6,243)



Accumulated other comprehensive loss





(1,801)







(1,608)









41,424







35,530



Less treasury stock, at cost, 146,820 and 137,920 shares in 2011 and 2010, respectively





(408)







(356)



Total shareholders' equity





41,016







35,174







$

74,297





$

74,791



























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.

Copyright 2011 PR Newswire

CECO Environmental (NASDAQ:CECE)
Historical Stock Chart
From Dec 2024 to Jan 2025 Click Here for more CECO Environmental Charts.
CECO Environmental (NASDAQ:CECE)
Historical Stock Chart
From Jan 2024 to Jan 2025 Click Here for more CECO Environmental Charts.