CINCINNATI, May 10, 2012 /PRNewswire/ -- CECO
Environmental Corp. (Nasdaq: CECE), a leading global provider
of air pollution control technology, systems and equipment, today
announced first quarter results for the period ended March 31, 2012.
Financial highlights for the first quarter of 2012 compared
to the first quarter of 2011 include:
Net sales were $33.0 million as
compared to $36.0 million in the same
period of 2011. The decline in revenues was a result of some
customer project delays and previously communicated product
portfolio improvements and divestitures;
Gross profit increased by 20%, to $10.2
million as compared to $8.5
million in 2011;
Gross margin increased to 30.9% compared to 23.6% for the same
quarter in 2011;
Operating income increased to $3.7
million in 2012 as compared to $2.4
million in 2011, a 54% improvement;
Operating margin increased to 11.2% from 6.7% in 2011;
Net income increased to $2.0
million in 2012 as compared to net income of $1.3 million in 2011;
Net income per diluted share increased to $0.12 in 2012 as compared to $0.08 in 2011;
Bookings were $30.7 million
compared to $33.3 million in
2011;
Cash and cash equivalents increased to $19.9 million compared to $12.7 as of December 31,
2011, with no bank debt; and
Backlog as of March 31, 2012 was
$52.6 million compared to
$54.9 million as of December 31, 2011 and $51.6 million as of March
31, 2011.
"I am once again very pleased with our results for the quarter
as CECO continued to achieve significant improvements in margins
and profitability," commented CECO's Chief Executive Officer,
Jeff Lang. "We realized record gross
and operating margins which was a direct result of our focus on
operational excellence, improved product mix and enhanced sales
pricing management. We are seeing positive activity from new
and existing customers as evidenced by our year to date bookings,
which as of today, are higher than the same period in 2011 and
which we believe will allow CECO to continue to generate improving
results for the remaining quarters of 2012."
CECO will host a conference call on Thursday, May 10, 2012 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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866-713-8562
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International dial in number:
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617-597-5310
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Participant passcode:
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57024248
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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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75362924
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This call is being webcast by Thomson/CCBN and can be accessed
at CECO's website at www.cecoenviro.com.
The webcast is also being distributed through the Thomson
StreetEvents Network. Individual investors can listen to the
call at www.earnings.com, Thomson's individual investor portal,
powered by StreetEvents. Institutional investors can access
the call via Thomson StreetEvents (www.streetevents.com), a
password-protected event management site.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading global provider of air pollution
control technology. Through its subsidiaries – Busch International,
CECO Filters, CECO Abatement Systems, Kirk & Blum,
Effox-Flextor, Fisher-Klosterman/Buell, CECO China and A.V.C.
Specialists – 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, aluminum, steel, automotive, chemical and
large industrial processes. Revenue from engineered equipment
technology is approximately 75% and 25% from parts, services and
aftermarket. 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.
Contact:
Corporate Information
Jeff Lang, CECO Environmental
Corp.
Email: investors@cecoenviro.com
1-800-333-5475
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CECO
ENVIRONMENTAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
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Dollars in
thousands, except per share data
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THREE
MONTHS ENDED
MARCH 31,
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2012
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2011
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Net
sales
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$ 33,026
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$ 35,956
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Cost of
sales
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22,842
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27,483
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Gross
profit
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10,184
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8,473
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Selling
and administrative
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6,341
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5,947
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Amortization
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96
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|
111
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|
|
|
|
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Income
from operations
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3,747
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2,415
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Other
expense, net
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(65)
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(27)
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Interest
expense (including related party interest of $59 and $58,
respectively)
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(271)
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(290)
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Income
before income taxes
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3,411
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|
2,098
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Income tax
expense
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1,366
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|
840
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Net
income
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$ 2,045
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$ 1,258
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Per share
data:
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|
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Basic net
income
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$ 0.14
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$ 0.09
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Diluted
net income
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$ 0.12
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$ 0.08
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Weighted
average number of common shares outstanding:
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Basic
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14,527,371
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14,313,851
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Diluted
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17,128,134
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17,093,235
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CECO
ENVIRONMENTAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
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Dollars in
thousands, except per share data
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|
|
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MARCH
31,
2012
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DECEMBER 31,
2011
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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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19,860
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$
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12,724
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Accounts receivable, net
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20,268
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23,109
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Costs and estimated earnings in excess of billings on
uncompleted contracts
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6,274
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10,643
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Inventories, net
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4,558
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4,344
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Prepaid expenses and other current assets
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2,171
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2,650
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Total current assets
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53,131
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53,470
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Property
and equipment, net
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5,502
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5,651
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Goodwill
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14,741
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14,661
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Intangibles – finite life, net
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432
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526
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Intangibles – indefinite life
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3,226
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3,218
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Deferred
income tax asset, net
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848
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848
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Deferred
charges and other assets
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769
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971
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$
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78,649
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$
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79,345
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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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11,117
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$
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13,569
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Billings in excess of costs and estimated earnings on
uncompleted contracts
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9,038
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9,647
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Accrued income taxes
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807
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393
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Total current liabilities
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20,962
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23,609
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Other
liabilities
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3,160
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3,146
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Convertible subordinated notes (including related
parties notes of $3,950 in 2012 and 2011)
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9,400
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9,600
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Total liabilities
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33,522
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36,355
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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, $0.01 par value; 100,000,000 shares authorized, 14,714,951
and 14,654,262
shares issued in 2012 and 2011,
respectively
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147
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146
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Capital in
excess of par value
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44,656
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44,249
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Accumulated earnings
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2,834
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1,301
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Accumulated other comprehensive loss
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(2,154)
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(2,350)
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45,483
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43,346
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Less
treasury stock, at cost, 137,920 shares in 2012 and 2011,
respectively
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(356
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|
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(356)
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Total shareholders' equity
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|
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45,127)
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|
|
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42,990
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$
|
78,649
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$
|
79,345
|
|
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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.