DALLAS , May 10, 2022
/PRNewswire/ -- CECO Environmental Corp. (Nasdaq:
CECE) ("CECO" or the "Company"), a leading
environmentally focused, diversified industrial company whose
solutions protect people, the environment, and industrial
equipment, today announced that its Board of Directors (the
"Board") has authorized a share repurchase program under which CECO
may repurchase up to $20 million of
its outstanding shares of common stock through April 30, 2025.
Todd Gleason, CECO's Chief
Executive Officer, commented, "CECO is in great position to deliver
strong organic growth, increased profitability, and strong free
cash flows. We believe our current stock price represents an
attractive valuation for our capital allocation strategy.
Returning cash to stockholders through a prudent share repurchase
plan, coupled with a focused acquisition program, is important to
optimize long-term stockholder returns. The Board's approval
of our share repurchase program reflects our confidence in CECO's
strategic growth prospects and the health of our financial
performance and balance sheet."
The share repurchase program is designed to return value to CECO
stockholders, offset dilution from share issuances, and reduce
share count over time. The $20
million authorization represents approximately 12 percent of
outstanding shares based on the closing stock price of $4.75 as of May 4,
2022. The authorization permits the Company to repurchase
shares in the open market, through accelerated share repurchases,
block trades, 10b5-1 plans, or through privately negotiated
transactions in accordance with applicable laws, rules, and
regulations.
The timing and amount of any future repurchases will be
determined by the Company's management at its discretion based on
several factors, including ongoing assessments of the capital needs
of the business, the market price of the company's common stock,
and general market considerations. The share repurchase program may
be modified, extended, or terminated by the Board at any
time.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a
global leader in industrial air quality and water treatment,
serving a diversified set of niche markets through an attractive
asset-light business model. Providing innovative technology and
application expertise, CECO helps companies grow their business
with safe, clean, and more efficient solutions that help protect
our shared environment. In regions around the world, CECO works to
improve air quality, optimize the energy value chain, and provide
custom engineered systems for applications including power
generation, petrochemical processing, general industrial, refining,
midstream oil & gas, electric vehicle production, poly silicon
fabrication, battery recycling, and wastewater treatment along with
a wide range of other applications. CECO is listed on Nasdaq under
the ticker symbol "CECE". For more information, please visit
www.cecoenviro.com.
SAFE HARBOR
Any statements contained in this Press
Release, other than statements of historical fact, including
statements about management's beliefs and expectations, are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, both as amended, and should be evaluated as such.
These statements are made on the basis of management's views and
assumptions regarding future events and business performance. We
use words such as "believe," "expect," "anticipate," "intends,"
"estimate," "forecast," "project," "will," "plan," "should" and
similar expressions to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties that may
cause actual results to differ materially from any future results,
performance or achievements expressed or implied by such
statements. Potential risks and uncertainties, among others, that
could cause actual results to differ materially are discussed under
"Part I – Item 1A. Risk Factors" of CECO's Annual Report on Form
10-K for the fiscal year ended December 31,
2021 and include, but are not limited to: the sensitivity of
our business to economic and financial market conditions generally
and economic conditions in CECO's service areas; dependence on
fixed price contracts and the risks associated therewith, including
actual costs exceeding estimates and method of accounting for
revenue; the effect of growth on CECO's infrastructure, resources,
and existing sales; the ability to expand operations in both new
and existing markets; the potential for contract delay or
cancellation as a result of on-going or worsening supply chain
challenges; liabilities arising from faulty services or products
that could result in significant professional or product liability,
warranty, or other claims; changes in or developments with respect
to any litigation or investigation; failure to meet timely
completion or performance standards that could result in higher
cost and reduced profits or, in some cases, losses on projects; the
potential for fluctuations in prices for manufactured components
and raw materials, including as a result of tariffs and surcharges;
the substantial amount of debt incurred in connection with our
strategic transactions and our ability to repay or refinance it or
incur additional debt in the future; the impact of federal, state
or local government regulations; our ability to repurchase shares
of our common stock and the amounts and timing of repurchases, if
any; economic and political conditions generally; our ability to
successfully realize the expected benefits of our restructuring
program; our ability to successfully integrate acquired businesses
and realize the synergies from strategic transactions; and
unpredictability and severity of catastrophic events, including
cyber security threats, acts of terrorism or outbreak of war or
hostilities or public health crises, such as uncertainties
regarding the extent and duration of impacts of matters associated
with the novel coronavirus ("COVID-19"), as well as management's
response to any of the aforementioned factors. Many of these
risks are beyond management's ability to control or predict. 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. Investors are
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. Furthermore, forward-looking statements speak
only as of the date they are made. Except as required under the
federal securities laws or the rules and regulations of the
Securities and Exchange Commission, we undertake no obligation to
update or review any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
Matthew Eckl,
Chief Financial Officer
(888) 990-6670
investor.relations@onececo.com
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SOURCE CECO Environmental Corp.