November 03, 2005
CECO ENVIRONMENTAL REPORTS 26% INCREASE IN THIRD
QUARTER REVENUES AND 25% INCREASE IN PROFIT
NEW
YORK, November 03, 2005 - CECO
Environmental Corp. (NASDAQ:
CECE), a leading provider of air pollution control and industrial
ventilation systems today announced third quarter results for the period
ended September 30, 2005.
Revenues for the third quarter ended September 30, 2005 were $23.4 million
as compared to $18.6 million for the same period in 2004, an increase of 26%.
Sales increases from our fabrication activities as well as higher revenues
from equipment sales were the primary reason for this improvement.
Gross profit for the third quarter was $4.5 million (19.3%) as compared to
$3.5 million (19.0%) for the same period last year, an increase of 28%.
Operating income for the third quarter of 2005 was $1.3 million as compared
to $736,000 for the same period last year, an increase of 71%.
Other expense was $273,000 for the third quarter of 2005 compared to other
income of $19,000 for the same period last year. Other expense for the third
quarter of 2005 included a non-cash charge of $293,000 for a fair market
value adjustment in connection with the prior issuance of stock warrants.
Pre-tax income for the third quarter was $390,000 as compared to pre-tax
income of $86,000 for the same period in 2004. Net income for the third
quarter of 2005 was $355,000 or $.04 per basic share and $.03 per diluted
share as compared to net income of $285,000 or $.03 per basic and diluted
share for the same period in 2004.
This increase in net income for the quarter and decrease in the net loss for
the nine months ended September 30, 2005 was the result of improved operating
results and adjustment of the effective tax rate offset by the non-cash
expense for valuation of warrants.
The backlog as of September 30, 2005 increased by 7% to $22.2 million as
compared to $20.7 million at December 31, 2004.
President Rick Blum stated, "Our sales continue to grow with each successive
quarter of 2005 and our constant level of bookings throughout the first nine
months of 2005 has allowed us to maintain a consistent backlog in excess of
$20 million. With margins holding fairly constant we believe that our
improved performance will continue in the future."
Chairman and CEO, Phillip DeZwirek commented, " The increase in our operating
income for the second successive quarter overcomes the substantial and
irregular loss of the first quarter of 2005 and provides ongoing evidence
that we are positioned to continue producing improved financial results.
With our typically strong fourth quarter we are optimistic that 2005 will be
a significant improvement over the prior year."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is
North America's largest independent
air pollution control company.
Through its six subsidiaries
-- Busch, CECO Filters, CECOaire,
CECO Abatement Systems, kbd/Technic
and Kirk & Blum - CECO provides
a wide spectrum of air quality
services and products including:
industrial air filters, environmental
maintenance, monitoring and management
services, and air quality improvements
systems. CECO is a full-service
provider to the steel, military,
aluminum, automotive, aerospace,
semiconductor, chemical, cement,
metalworking, glass, foundry
and virtually all-industrial
process industries.
For more information on CECO
Environmental please visit the
company's website at http://www.cecoenviro.com |
