Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CECO ENVIRONMENTAL CORP | d393441d8k.htm |
Exhibit 99.1
| NasdaqGM:CECE | NEWS RELEASE |
CECO ENVIRONMENTAL REPORTS
SECOND QUARTER AND SIX MONTH 2012 RESULTS
Company Achieves Quarterly Earnings Per Share of $0.15
CINCINNATI, OHIO, August 09th, 2012—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 millon 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 shares 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.