November 6, 2008
CECO ENVIRONMENTAL REPORTS
THIRD QUARTER AND NINE MONTH 2008 RESULTS
CINCINNATI, OHIO, November 6, 2008 - CECO Environmental Corp. (NASDAQ: CECE), a leading provider of industrial ventilation and pollution control systems, today announced third quarter results for the periods ended September 30, 2008.
Financial highlights for the third quarter of 2008 compared to the third quarter of 2007 include:
Net sales decreased from $65.3 million to $55.2 million
Gross profit increased from $11.2 million to $12.0 million
Gross profit as a percentage of sales increased by 4.6 percentage points from
17.1% to 21.7%
Selling and administrative costs increased $2.0 million to $8.7 million
Operating income decreased from $4.1 million to $2.4 million
Net income was $1.2 million compared to $2.2 million in 2007
Earnings per diluted share were $0.08 compared to $0.14 in 2007
Financial highlights for the nine months ended September 30, 2008 compared to nine months ended September 30, 2007 include:
Net sales decreased from $168.0 million to $159.5 million
Gross profit increased from $28.9 million to $29.4 million
Gross profit as a percentage of sales increased by 1.2 percentage points from
17.2% to 18.4%
Selling and administrative costs increased $5.5 million to $23.5 million
Operating income decreased from $9.9 million to $3.8 million
Net income was $1.7 million compared to $4.5 million in 2007
Earnings per diluted share were $0.11 compared to $0.33
Although sales for the quarter and nine month periods of 2008 were lower than the comparable 2007 periods, gross profits increased for both periods. Gross profits as a percentage of sales have increased significantly due to a shift in product mix to higher margin products.
The increase in selling and administrative expenses for the three and nine month periods is primarily the result of the addition of selling and administrative expenses from our string of recent acquisitions including the recently announced acquisitions of Flextor and AVC Specialists. The three months ended September 30, 2008 selling and administrative expenses include expenses from acquired companies of $1.9 million and the nine months ended September 30, 2008 selling and administrative expenses include expenses from acquired companies of $5.0 million. Selling and administrative expenses from our organic companies only increased slightly for both periods.
As mentioned previously, management is highly focused on reducing these costs and we will do so by integrating these new acquisitions into the CECO system while at the same time addressing the need for compliance with the increasingly demanding regulations affecting public companies.
Our backlog as of September 30, 2008 was $86.9 million compared to $85.5 million as of December 31, 2007.
Chairman and CEO, Phillip DeZwirek, stated, “Our order flow this year has remained consistently strong with bookings through September of over $148 million compared to $142 million through September of 2007. All the recent acquisitions that we’ve made have diversified our customer base and we feel that we are well positioned for what lies ahead. ”
President and Chief Operating Officer, Richard Blum, stated, “As we look forward to 2009, we know that some of the industries we serve may be affected by economic conditions. Our task will be to take advantage of the opportunities we find in the industries that are doing well. The major industries that we’ve gained access to through the acquisitions of Effox, Fisher Klosterman, Flextor and AVC Specialists are power, refining, mining, and chemicals. We feel that these industries have favorable near term prospects.”
CECO will host a conference call on Thursday, November 6, 2008 at 10:30 a.m. EST to review its financial results for the quarter. Conferencing details are as follows:
Dial in number: 866.356.4123
International dial in number: 617.597.5393
Participant pass code: 61142978
Replay: 888-286-8010
Pass code: 34814722
|
