CINCINNATI, Aug. 9, 2012 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM:CECE), a leading provider of air
pollution control technology and systems, today announced second
quarter and six-month results for the period ended June 30, 2012.
Financial highlights for the second quarter of 2012 compared
to the second quarter of 2011 include:
Net sales increased by 6% to $34.6
million compared to $32.5
million in the comparable quarter;
Gross profit increased by 21% to $10.5
million from $8.7 million;
Gross margin increased to 30.3% from 26.8%;
Operating income increased by 54% to $4.3
million from $2.8 million in
2011;
Operating margin increased to 12.4% from 8.6% in 2011;
Net income increased by 25% to $2.5
million compared to $2.0
million;
Net income per diluted share was $0.15 compared to $0.12 in 2011;
SG&A expenses remain fairly consistent as a percent of sales
at 17.9% compared to 17.5%;
Bookings increased by 22% to $40.9
million compared to $33.5
million in 2011;
Cash and cash equivalents remain strong at $19.8 million compared to $12.7 million as of December 31, 2011; and
Backlog as of June 30, 2012 was
$58.9 million compared to
$54.9 million as of December 31, 2011 and $52.6 million as of June
30, 2011.
Financial highlights for the six months ended June 30, 2012 compared to six months ended
June 30, 2011 include:
Net sales decreased by 1% to $67.6
million compared to $68.5
million for the comparable period in 2011;
Gross profit increased by 20% to $20.7
million from $17.2
million;
Gross margin increased to 30.6% from 25.1%;
Operating income increased by 51% to $8.0
million from $5.3 million in
2011;
Operating margin increased to 11.8% from 7.7% in 2011;
Net income increased by 41% to $4.5
million compared to net income of $3.2 million;
Net income per diluted share was $0.27 compared to $0.20 in the previous year;
SG&A expenses as a percent of sales increased slightly to
18.5% from 17.1%; and
Year-to-date bookings increased by 7% to $71.6 million compared to $66.8 million in 2011.
"We are very pleased with the results that CECO achieved in the
second quarter as the Company continued to realize improving
margins, profitability and bookings," commented CECO's Chief
Executive Officer, Jeff Lang.
"Of particular importance, the Company's increased bookings
momentum from our North America
and global customers in the second quarter has continued in the
current quarter. We expect this increase in bookings to
continue to generate improving results throughout 2012."
CECO will host a conference call on Thursday, August 09, 2012 at 8:30 a.m. EDT to review its financial results for
the quarter. Conferencing details are as follows:
Dial in
number:
866-700-7173
International dial in number: 617-213-8838
Participant
passcode: 32369324
Replay:
888-286-8010
International: 617-801-6888
Passcode: 93534382
This call is being webcast by Thomson/CCBN and can be accessed
at CECO's web site 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.
1-800-333-5475
|
CECO ENVIRONMENTAL CORP.
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands, except per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
JUNE 30,
|
SIX MONTHS ENDED
JUNE 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
sales
|
$ 34,592
|
|
$ 32,537
|
|
$ 67,618
|
|
$ 68,493
|
|
Cost of
sales
|
24,045
|
|
23,839
|
|
46,887
|
|
51,322
|
|
Gross
profit
|
10,547
|
|
8,698
|
|
20,731
|
|
17,171
|
|
Selling
and administrative
|
6,186
|
|
5,741
|
|
12,527
|
|
11,688
|
|
Amortization
|
76
|
|
112
|
|
172
|
|
223
|
|
Income
from operations
|
4,285
|
|
2,845
|
|
8,032
|
|
5,260
|
|
Other
income, net
|
1
|
|
360
|
|
(64)
|
|
333
|
|
Interest
expense (including related party interest of $59
and $59, and $118 and $118, respectively)
|
(266)
|
|
(284)
|
|
(537)
|
|
(574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations before income taxes
|
4,020
|
|
2,921
|
|
7,431
|
|
5,019
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
1,535
|
|
968
|
|
2,901
|
|
1,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 2,485
|
|
$ 1,953
|
|
$ 4,530
|
|
$ 3,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
Basic net
income
|
$ 0.17
|
|
$ 0.14
|
|
$ 0.31
|
|
$ 0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
net income
|
$ 0.15
|
|
$ 0.12
|
|
$ 0.27
|
|
$ 0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
14,615,913
|
|
14,334,116
|
|
14,571,642
|
|
14,324,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
17,211,339
|
|
17,141,633
|
|
17,169,674
|
|
17,117,440
|
|
|
|
|
|
|
|
|
|
CECO ENVIRONMENTAL CORP.
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
Dollars in
thousands, except per share data
|
|
|
|
|
|
|
|
|
|
|
|
JUNE
30,
2012
|
|
|
DECEMBER 31,
2011
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
19,779
|
|
|
$
|
12,724
|
|
|
Accounts receivable, net
|
|
|
18,335
|
|
|
|
23,109
|
|
|
Costs and estimated earnings in excess of billings
on
uncompleted
contracts
|
|
|
6,857
|
|
|
|
10,643
|
|
|
Inventories, net
|
|
|
4,490
|
|
|
|
4,344
|
|
|
Prepaid expenses and other current assets
|
|
|
3,313
|
|
|
|
2,650
|
|
|
Total current assets
|
|
|
52,774
|
|
|
|
53,470
|
|
|
|
|
|
Property
and equipment, net
|
|
|
5,345
|
|
|
|
5,651
|
|
|
Goodwill
|
|
|
14,668
|
|
|
|
14,661
|
|
|
Intangibles – finite life, net
|
|
|
350
|
|
|
|
526
|
|
|
Intangibles – indefinite life
|
|
|
3,217
|
|
|
|
3,218
|
|
|
Deferred
income tax asset, net
|
|
|
848
|
|
|
|
848
|
|
|
Deferred
charges and other assets
|
|
|
744
|
|
|
|
971
|
|
|
|
$
|
77,946
|
|
|
$
|
79,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
10,867
|
|
|
$
|
13,569
|
|
|
Billings in excess of costs and estimated
earnings on
uncompleted
contracts
|
|
|
6,706
|
|
|
|
9,647
|
|
|
Income taxes payable
|
|
|
1,272
|
|
|
|
393
|
|
|
Total current liabilities
|
|
|
18,845
|
|
|
|
23,609
|
|
|
Other
liabilities
|
|
|
3,165
|
|
|
|
3,146
|
|
|
Convertible subordinated notes (including related
parties notes
of $3,950 in 2012 and
2011)
|
|
|
9,160
|
|
|
|
9,600
|
|
|
Total liabilities
|
|
|
31,170
|
|
|
|
36,355
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Preferred
stock, $.01 par value; 10,000 shares authorized,
none issued
|
|
|
—
|
|
|
|
—
|
|
|
Common
stock, $0.01 par value; 100,000,000 share
authorized, 14,723,181 and 14,654,262
shares issued in
2012 and 2011
|
|
|
147
|
|
|
|
146
|
|
|
Capital in
excess of par value
|
|
|
44,672
|
|
|
|
44,249
|
|
|
Accumulated earnings
|
|
|
4,806
|
|
|
|
1,301
|
|
|
Accumulated other comprehensive loss
|
|
|
(2,493)
|
|
|
|
(2,350)
|
|
|
|
|
47,132
|
|
|
|
43,346
|
|
|
Less
treasury stock, at cost, 137,920 shares in 2012 and 2011
|
|
|
(356)
|
|
|
|
(356)
|
|
|
Total shareholders' equity
|
|
|
46,776
|
|
|
|
42,990
|
|
|
|
$
|
77,946
|
|
|
$
|
79,345
|
|
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.