CINCINNATI, Nov. 7, 2012 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM: CECE), a leading provider of air
pollution control technology and systems, today announced third
quarter and nine-month results for the period ended September 30, 2012.
Financial highlights for the third quarter of 2012 compared
to the third quarter of 2011 include:
Net sales were $33.1 million
compared to $32.9 million in the
comparable quarter, an increase of 0.5%;
Gross profit increased by 8.6% to $10.5
million from $9.7 million;
Gross margin increased to 31.8% from 29.4%;
Operating income increased by 28.4% to $4.3
million from $3.3 million in
2011;
Operating margin increased to 12.8% from 10.0% in 2011;
Net income increased by 40.9% to $3.3
million compared to $2.3
million;
Net income per diluted share was $0.19 compared to $0.14 in 2011;
SG&A expenses remain fairly consistent as a percent of sales at
18.7% compared to 19.0%;
Bookings increased by 17.4% to $41.8
million compared to $35.6
million in 2011;
Cash and cash equivalents remain strong at $24.5 million compared to $12.7 million as of December 31, 2011; and
Backlog as of September 30, 2012 was
$67.6 million compared to
$54.9 million as of December 31, 2011 and $55.3 million as of September 30, 2011.
Q3 2012 includes a $0.5 million net
benefit from the US R&D tax credit for Fiscal Year 2011
relating to our innovative product technologies.
Financial highlights for the nine months ended September 30, 2012 compared to nine months ended
September 30, 2011 include:
Net sales were $100.7 million
compared to $101.4 million for the
comparable period in 2011, a decrease of 0.7%;
Gross profit increased by 16.3% to $31.3
million from $26.9
million;
Gross margin increased to 31.0% from 26.5%;
Operating income increased 43.3% to $12.3
million from $8.6 million in
2011;
Operating margin increased to 12.2% from 8.4% in 2011;
Net income increased 41.0% to $7.8
million compared to net income of $5.5 million;
Net income per diluted share was $0.47 compared to $0.34 in the previous year;
SG&A expenses as a percent of sales increased slightly to 18.6%
from 17.8%; and
Year-to-date bookings increased by 10.7% to $113.4 million compared to $102.4 million in 2011.
"We are very pleased with the results that CECO achieved
in the third quarter and year to date as the Company continued to
realize improving margins, greater profitability and increasing
bookings," commented CECO's Chief Executive Officer, Jeff Lang. "The Company's significant booking
momentum from our North America
and international customers coupled with our management team's
focus on cost containment and margin improvement contributed
to CECO's substantial growth in operating cash flow and continued
operational excellence. We are ideally positioned for future
organic and inorganic growth opportunities during the rest of 2012
and into 2013."
CECO will host a conference call on Wednesday, November 7, 2012 at 8:30 a.m. EST to review its financial results for
the quarter. Conferencing details are as follows:
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Dial in
number:
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866-356-4441
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International dial in number:
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617-597-5396
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Participant
passcode:
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80596185
|
|
|
|
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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97031195
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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 global leader providing air pollutions
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
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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,
|
|
2012
|
2011
|
2012
|
2011
|
|
Net
sales
|
$ 33,102
|
$ 32,947
|
$ 100,720
|
$ 101,440
|
|
Cost of
sales
|
22,574
|
23,249
|
69,461
|
74,571
|
|
|
|
|
|
|
Gross
profit
|
10,528
|
9,698
|
31,259
|
26,869
|
|
Selling
and administrative
|
6,197
|
6,270
|
18,724
|
17,958
|
|
Amortization
|
80
|
118
|
252
|
341
|
|
|
|
|
|
|
Income
from operations
|
4,251
|
3,310
|
12,283
|
8,570
|
|
Other
(expenses) income, net
|
(69)
|
103
|
(133)
|
436
|
|
Interest
expense (including related party interest of $60 and
$59, and $178 and $177,
respectively)
|
(291)
|
(296)
|
(828)
|
(870)
|
|
|
|
|
|
|
Income
from operations before income taxes
|
3,891
|
3,117
|
11,322
|
8,136
|
|
|
|
|
|
|
Income tax
expense
|
623
|
798
|
3,524
|
2,606
|
|
|
|
|
|
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Net
income
|
$ 3,268
|
$ 2,319
|
$ 7,798
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$ 5,530
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|
|
|
|
|
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Per share
data:
|
|
|
|
|
|
Basic net
income
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$ 0.22
|
$ 0.16
|
$ 0.53
|
$ 0.39
|
|
|
|
|
|
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Diluted
net income
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$ 0.19
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$ 0.14
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$ 0.47
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$ 0.34
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|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
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Basic
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14,630,264
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14,371,752
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14,591,325
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14,340,119
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|
|
|
|
|
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Diluted
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17,258,552
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17,157,305
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17,199,337
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17,130,767
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CECO ENVIRONMENTAL CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
Dollars in
thousands, except per share data
|
|
|
SEPTEMBER
30,
2012
|
|
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DECEMBER 31,
2011
|
|
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ASSETS
|
|
|
|
|
|
|
|
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Current
assets:
|
|
|
|
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|
|
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Cash and cash equivalents
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$
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24,455
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$
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12,724
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Accounts receivable, net
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21,281
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|
|
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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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7,057
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|
|
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10,643
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Inventories, net
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4,292
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|
|
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4,344
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|
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Prepaid expenses and other current assets
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2,399
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|
|
|
2,650
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|
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Total current assets
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59,484
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53,470
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Property
and equipment, net
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5,128
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5,651
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Goodwill
|
|
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14,777
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|
|
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14,661
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Intangibles – finite life, net
|
|
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274
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|
|
|
526
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Intangibles – indefinite life
|
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3,230
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|
|
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3,218
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|
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Deferred
income tax asset, net
|
|
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848
|
|
|
|
848
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|
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Deferred
charges and other assets
|
|
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714
|
|
|
|
971
|
|
|
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$
|
84,455
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|
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$
|
79,345
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|
|
|
|
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS' EQUITY
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|
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|
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Current
liabilities:
|
|
|
|
|
|
|
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Accounts payable and accrued
expenses
|
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$
|
12,101
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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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8,501
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|
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9,647
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Income taxes payable
|
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1,531
|
|
|
|
393
|
|
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Total current liabilities
|
|
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22,133
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|
|
|
23,609
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Other
liabilities
|
|
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3,197
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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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8,760
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9,600
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Total liabilities
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34,090
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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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—
|
|
|
Common
stock, $0.01 par value; 100,000,000 shares
authorized, 14,849,502 and 14,654,262
shares issued in
2012 and 2011
|
|
|
148
|
|
|
|
146
|
|
|
Capital in
excess of par value
|
|
|
45,393
|
|
|
|
44,249
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|
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Accumulated earnings
|
|
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7,410
|
|
|
|
1,301
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Accumulated other comprehensive loss
|
|
|
(2,230)
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|
|
|
(2,350)
|
|
|
|
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50,721
|
|
|
|
43,346
|
|
|
Less
treasury stock, at cost, 137,920 shares in 2012 and
2011
|
|
|
(356)
|
|
|
|
(356)
|
|
|
Total shareholders' equity
|
|
|
50,365
|
|
|
|
42,990
|
|
|
|
$
|
84,455
|
|
|
$
|
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.