November 12, 2007
CECO ENVIRONMENTAL REPORTS
RECORD THIRD QUARTER AND NINE MONTH 2007 RESULTS
Quarterly Revenues Increase 73% to $65.3 Million
Quarterly Operating Income Increases 141% to $4.1 Million
NEW YORK, November 12, 2007 -
CECO Environmental Corp (NASDAQ: CECE), a leading provider of industrial
ventilation and pollution control systems, today announced record third quarter
results for the period ended September 30, 2007.
Financial highlights for the third quarter of 2007 compared to the third quarter
of 2006 include:
Net sales increased 73% to $65.3 million;
Gross profit increased 84% to $11.2 million;
Operating income increased 141% to $4.1 million;
Operating margin increased from 4.4% to 6.3%;
Net income GAAP - $2.2 million, a 100% increase over 2006;
Net income non-GAAP - $2.2 million, a 214% increase over 2006 non-GAAP;
GAAP Earnings per diluted share increased 75% to $0.14 from $0.08 in 2006;
Non-GAAP Earnings per diluted share increased 180% to $0.14 from $0.05.
CECO's reported results for the three months ended September 30, 2006 included
$409,000 in net non-cash income from the valuation of warrants.
Financial highlights for the nine months ended September 30, 2007 compared to nine
months ended September 30, 2006 include:
Net sales increased 79% to $168.0 million;
Gross profit increased 82% to $28.9 million;
Operating income increased 172% to $9.8 million;
Net income GAAP - $4.5 million (increase of 137%);
Net income non-GAAP - $5.2 million (increase of 333%);
GAAP Earnings per diluted share - $0.33 (increase of 120%);
Non-GAAP Earnings per diluted share $0.38 (increase of 280%).
CECO's reported results for the nine months ended September 30, 2006 included
$663,000 in net non-cash income from the valuation of warrants and CECO's reported
results for the nine months ended September 30, 2007 include a non-cash interest
expense of $740,000 related to retirement of subordinated debt.
The adjustments to non-GAAP net income and non-GAAP earnings per diluted share are
detailed in the tables below.
Backlog as of September 30, 2007 was $94.4 million compared to $97.1 million as of
December 31, 2006.
Chairman and CEO, Phillip DeZwirek, stated, "Our third quarter results mark our
seventh consecutive quarter of record revenues and gross profitability. After
eliminating those certain non-cash income and expense items related to the valuation
of warrants and the related subordinated debt discount discussed above, our
adjusted results for the quarters and nine month periods more accurately reflect
our significant progress."
Mr. DeZwirek continued, "Our order flow this year has remained consistently strong
with bookings through October of over $165 million compared to $127 million through
October of 2006. Although bookings in 2006 included a large $50 million order
received in December, we are currently on pace to meet or exceed that level in
2007 without the benefit of a similar large single order."
Rick Blum, COO, commented, "It is also worth noting that we recently announced the
acquisition of GMD Environmental and that we continue to search for acquisition
candidates that fit into our turn-key strategy of horizontal and vertical
integration."
CECO will release earnings and hold its quarterly conference call to discuss third
quarter results on Monday, November 12, 2007. Earnings will be released at 8:30 a.m.
EST and the conference call will be held at 10:00 a.m. Eastern Standard Time
(9:00 a.m. Central Time).
Dial in number: 866.202.0886
International: 617.213.8841
Passcode: 49675017
Additional information on CECO's reported results, including a reconciliation of
the non-GAAP adjusted results, are included in the financial tables below.
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