2014

CECO Environmental Reports First Quarter 2012 Results Earnings per Share Increases 50% Year-over-Year

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:

Dial in number: 

866-713-8562

International dial in number:

617-597-5310

Participant passcode: 

57024248



Replay:

888-286-8010

International:

617-801-6888

Passcode: 

75362924

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

CECO ENVIRONMENTAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)





Dollars in thousands, except per share data









THREE MONTHS ENDED
MARCH 31,


2012


2011

Net sales  

$   33,026


$   35,956

Cost of sales 

22,842


27,483

Gross profit  

10,184


8,473

Selling and administrative

6,341


5,947

Amortization 

96


111





Income from operations 

3,747


2,415

Other expense, net

(65)


(27)

Interest expense (including related party interest of $59 and $58, respectively)  

(271)


(290)





Income before income taxes   

3,411


2,098

Income tax expense  

1,366


840

Net income   

$    2,045


$    1,258





Per share data:




Basic net income

$      0.14


$      0.09

Diluted net income 

$      0.12


$      0.08





Weighted average number of common shares outstanding:




Basic 

14,527,371


14,313,851

Diluted   

17,128,134


17,093,235


CECO ENVIRONMENTAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)










Dollars in thousands, except per share data




















MARCH 31,
2012



  DECEMBER 31,    
2011


ASSETS









Current assets:









Cash and cash equivalents


$

19,860



$

12,724


Accounts receivable, net



20,268




23,109


Costs and estimated earnings in excess of billings on uncompleted contracts



6,274




10,643


Inventories, net



4,558




4,344


Prepaid expenses and other current assets



2,171




2,650


Total current assets



53,131




53,470





Property and equipment, net



5,502




5,651


Goodwill



14,741




14,661


Intangibles – finite life, net



432




526


Intangibles – indefinite life



3,226




3,218


Deferred income tax asset, net



848




848


Deferred charges and other assets



769




971




$

78,649



$

79,345














LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities:









Accounts payable and accrued expenses 


$

11,117



$

13,569


Billings in excess of costs and estimated earnings on uncompleted contracts



9,038




9,647


Accrued income taxes



807




393


Total current liabilities



20,962




23,609


Other liabilities



3,160




3,146


Convertible subordinated notes (including related parties notes of $3,950 in 2012 and 2011)



9,400




9,600


Total liabilities



33,522




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, 14,714,951 and 14,654,262 
    shares issued in 2012 and 2011, respectively



147




146


Capital in excess of par value



44,656




44,249


Accumulated earnings



2,834




1,301


Accumulated other comprehensive loss



(2,154)




(2,350)





45,483




43,346


Less treasury stock, at cost, 137,920 shares in 2012 and 2011, respectively



(356




(356)


Total shareholders' equity



45,127)




42,990




$

78,649



$

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.



RELATED LINKS
http://www.cecoenviro.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.