CINCINNATI, March 7, 2013 /PRNewswire/ -- CECO
Environmental Corp. (NasdaqGM:CECE), a leading global provider
of air pollution control technology systems, product recovery and
filtration technology, today announced fourth quarter and full year
financial results for the period ended December 31, 2012.
Financial highlights for the fourth quarter of 2012 compared
to the fourth quarter of 2011 include:
Net sales were $34.3 million
compared to $37.8 million in the
comparable quarter, a decrease of 9.3%. The decrease in sales was
related to timing on projects in process and the schedule for
completion converting into revenue;
Gross profit was relatively unchanged at $11.2 million from $11.3
million in 2011;
Gross margin increased to 32.7% from 29.9%;
Operating income increased by 15.8% to $4.4 million from $3.8
million in 2011;
Operating margin increased to 12.8% from 10.1% in 2011;
Net income increased by 14.8% to $3.1
million compared to net income of $2.7 million in 2011;
Net income per diluted share was $0.18 compared to $0.17 in 2011;
Backlog as of December 31, 2012
was $59.5 million compared to
$54.9 million as of December 31, 2011;
Bookings in the fourth quarter were $26.3
million compared to $37.4
million in 2011. Year-to-date 2013 bookings are
approximately 20% higher than in the same period in 2012;
Cash and cash equivalents were $23.0
million as of December 31,
2012 compared to $12.7 million
as of December 31, 2011 with no bank
debt; and
On December 31, 2012, CECO
completed the acquisition of Adwest Technologies, Inc., a leader in
the design and manufacture of regenerative thermal oxidizers (RTOs)
for the global air pollution control market. Adwest generated
approximately $12 million in revenues
in 2012 and their entire management team, led by Craig Bayer, will continue in their roles.
Financial highlights for the twelve months ended December 31, 2012 compared to twelve months ended
December 31, 2011 include:
Net sales were $135.1 million
compared to $139.2 million in 2011, a
decrease of 2.9%;
Gross profit increased by 11% to $42.4
million from $38.2 million in
2011;
Gross margin increased to 31.4% from 27.4%;
Operating income increased by 34.7% to $16.7 million from $12.4
million in 2011;
Operating margin increased to 12.4% from 8.9% in 2011;
Net income increased 31.3% to $10.9
million compared to net income of $8.3 million in 2011;
Net income per diluted share was $0.65 compared to $0.51 in the previous year;
Cash provided by operations increased by 93.1% to $16.8 million compared to $8.7 million in 2011; and
Year-to-date bookings were $139.7
million compared to $139.8
million in 2011.
Subsequent Event
On March 4, 2013, CECO announced
it had acquired Aarding Thermal Acoustics B.V., one of the world
leaders in natural gas turbine exhaust systems and silencer
applications. Headquartered in the
Netherlands with a significant global sales footprint,
Aarding generated revenues of approximately $34 million in 2012. Aarding's principals,
Martin Pranger and Norbert Pieterse, will continue in their
leadership roles and will lead CECO's expanding global natural gas
business.
Quarterly Dividend
On March 6, 2013, CECO's Board of
Directors approved raising its quarterly dividend 11% to
$0.05 per share from the previous
quarterly dividend of $0.045 per
share. The dividend will be paid on March 28, 2013 to all shareholders of record at
the close of business on March 18,
2013. CECO initiated a Dividend Reinvestment Plan ("DRIP") in
2012 that provides for the voluntary reinvestment of dividends by
its stockholders.
"We are very pleased with CECO's results throughout 2012 as we
executed on our core goals including profitable growth, improving
margins and significant operating cash flow generation," commented
Jeff Lang, CECO's Chief Executive
Officer. "During 2012, we continued our focus on profitable
revenues as well as selling non-core assets that were not key to
our growth strategy. In addition, together with our recent
exciting acquisitions of both Aarding and Adwest, CECO is ideally
positioned within our industry to become the global leader in the
air pollution control sector."
Phillip DeZwirek, CECO's
Chairman, said "Our management team, our product breadth and our
engineering leadership have provided CECO with the necessary assets
to achieve above-average growth in both profitability and
shareholder value in 2013 and beyond. We are confident in our
long term prospects and have increased our dividend again to
provide additional value for our shareholders."
This news release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction, nor
shall there be any sale of these securities in any state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
CECO will host a conference call on Thursday, March 7, 2013 at 8:30 a.m. EST to review its financial results for
the quarter. Conferencing details are as follows:
Dial in
number:
|
800-706-7745
|
International dial in number:
|
617-614-3472
|
Participant passcode:
|
95570451
|
|
|
Replay:
|
888-286-8010
|
International:
|
617-801-6888
|
Passcode:
|
95746346
|
The call can be accessed at CECO's web site at
www.cecoenviro.com.
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, A.V.C.
Specialists and the recent acquisitions of Aarding and Adwest, 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 is approximately 75% from engineered
equipment technology 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
DECEMBER 31,
|
|
|
TWELVE MONTHS ENDED
DECEMBER 31,
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Net
sales
|
$
|
34,332
|
|
|
$
|
37,752
|
|
|
$
|
135,052
|
|
|
$
|
139,192
|
|
Cost of
sales
|
|
23,148
|
|
|
|
26,453
|
|
|
|
92,609
|
|
|
|
101,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
11,184
|
|
|
|
11,299
|
|
|
|
42,443
|
|
|
|
38,168
|
|
Selling
and administrative
|
|
6,705
|
|
|
|
7,401
|
|
|
|
25,429
|
|
|
|
25,359
|
|
Amortization
|
|
79
|
|
|
|
100
|
|
|
|
331
|
|
|
|
441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
|
4,400
|
|
|
|
3,798
|
|
|
|
16,683
|
|
|
|
12,368
|
|
Other
income, (expense) net
|
|
(19)
|
|
|
|
16
|
|
|
|
(152)
|
|
|
|
452
|
|
Interest
expense (including related party interest of
$39 and
$60, and $217 and $237, respectively)
|
|
(340)
|
|
|
|
(267)
|
|
|
|
(1,168)
|
|
|
|
(1,137)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations before income taxes
|
|
4,041
|
|
|
|
3,547
|
|
|
|
15,363
|
|
|
|
11,683
|
|
Income tax
expense
|
|
989
|
|
|
|
805
|
|
|
|
4,513
|
|
|
|
3,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
3,052
|
|
|
$
|
2,742
|
|
|
$
|
10,850
|
|
|
$
|
8,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.73
|
|
|
$
|
0.58
|
|
Diluted
net income
|
$
|
0.18
|
|
|
$
|
0.17
|
|
|
$
|
0.65
|
|
|
$
|
0.51
|
|
|
|
|
|
Weighted
average number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,473,944
|
|
|
|
14,523,776
|
|
|
|
14,813,186
|
|
|
|
14,386,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
17,363,121
|
|
|
|
17,109,306
|
|
|
|
17,246,058
|
|
|
|
17,115,284
|
|
|
CECO
ENVIRONMENTAL CORP.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
|
Dollars in
thousands, except per share data
|
|
|
|
DECEMBER
31,
2012
|
|
|
DECEMBER 31,
2011
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
22,994
|
|
|
$
|
12,724
|
|
Accounts receivable, net
|
|
|
29,499
|
|
|
|
23,109
|
|
Costs and estimated earnings in excess of billings
on
uncompleted contracts
|
|
|
5,747
|
|
|
|
10,643
|
|
Inventories, net
|
|
|
3,898
|
|
|
|
4,344
|
|
Prepaid expenses and other current assets
|
|
|
2,183
|
|
|
|
2,650
|
|
Total current assets
|
|
|
64,321
|
|
|
|
53,470
|
|
|
|
|
Property
and equipment, net
|
|
|
4,885
|
|
|
|
5,651
|
|
Goodwill
|
|
|
19,548
|
|
|
|
14,661
|
|
Intangibles – finite life, net
|
|
|
1,283
|
|
|
|
526
|
|
Intangibles – indefinite life
|
|
|
3,526
|
|
|
|
3,218
|
|
Deferred
income tax asset, net
|
|
|
0
|
|
|
|
848
|
|
Deferred
charges and other assets
|
|
|
541
|
|
|
|
971
|
|
|
|
$
|
94,104
|
|
|
$
|
79,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
14,543
|
|
|
$
|
13,569
|
|
Billings in excess of costs and estimated
earnings
on uncompleted contracts
|
|
|
11,368
|
|
|
|
9,647
|
|
Accrued income taxes
|
|
|
1,079
|
|
|
|
393
|
|
Total current liabilities
|
|
|
26,990
|
|
|
|
23,609
|
|
Other
liabilities
|
|
|
4,992
|
|
|
|
3,146
|
|
Deferred
income tax liability, net
|
|
|
128
|
|
|
|
0
|
|
Convertible subordinated notes (including related
parties notes of $3,950 in 2011)
|
|
|
0
|
|
|
|
9,600
|
|
Total liabilities
|
|
|
32,110
|
|
|
|
36,355
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
Preferred
stock, $.01 par value; 10,000 shares authorized,
none issued
|
|
|
—
|
|
|
|
—
|
|
Common
stock, $0.01 par value; 100,000,000 shares authorized,
17,096,543 and 14,654,262 shares issued in 2012 and
2011, respectively
|
|
|
171
|
|
|
|
146
|
|
Capital in
excess of par value
|
|
|
54,800
|
|
|
|
44,249
|
|
Accumulated earnings
|
|
|
9,691
|
|
|
|
1,301
|
|
Accumulated other comprehensive loss
|
|
|
(2,312)
|
|
|
|
(2,350)
|
|
|
|
|
62,350
|
|
|
|
43,346
|
|
Less
treasury stock, at cost, 137,920 shares in 2012 and 2011,
respectively
|
|
|
(356)
|
|
|
|
(356)
|
|
Total
shareholders' equity
|
|
|
61,994
|
|
|
|
42,990
|
|
|
|
$
|
94,104
|
|
|
$
|
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.