May 7, 2009
CECO ENVIRONMENTAL REPORTS
FIRST QUARTER 2009 RESULTS
Quarterly Gross Profit Increases by 38%
Operating Income Increases by $1.5 Million
CINCINNATI, OHIO, May 7, 2009 - CECO Environmental Corp. (NASDAQ: CECE),
a leading provider of industrial ventilation and pollution control systems,
today announced first quarter results for the period ended March 31, 2009.
Financial highlights for the first quarter of 2009 compared to the first quarter of
2008 include:
Gross profit increased by $2.4 million or 38.1% from $6.3 million to
$8.7 million;
Gross profit as a percentage of sales increased to 21.9% from 13.4%;
Operating income increased $1.5 million to $0.8 million from an operating loss of ($0.7 million)
in the first quarter of 2008;
Net income increased by $1.0 million to $0.4 million compared to a net
loss of ($0.6 million) in 2008;
Income per diluted share was $0.03 compared to a loss of ($0.04) per
diluted share in the prior year quarter; and
Net sales decreased by $7.1 million or 15.1% from $46.9 million to
$39.8 million.
Backlog as of March 31, 2009 was $63.2 million compared to $68.0 million as of December 31, 2008.
Richard Blum, President and COO stated, “We are especially pleased with the results for our
first quarter of 2009. The first quarter is typically our weakest quarter due to the seasonality
of our business. Of interest is the fact that over 18 percent of our backlog, and over 18 percent
of our bookings, as of the end of the first quarter were from customers outside the United States.
We did business with customers in 16 different countries in the first quarter. At the end of the
first quarter, the five largest components of our backlog were the power, refining, chemical, ethanol,
and steel industries.”
Chairman and CEO, Phillip DeZwirek, stated, “Although our revenues for the quarter were lower
compared to 2008 it is important to note that our gross profit and operating income are significantly
higher in the current quarter. Our recent series of acquisitions has resulted in an expansion of our
equipment group which is typically higher margin business and we expect this trend to continue. The
higher selling and administrative costs in this quarter are due to three new acquisitions not fully
reflected in the comparative quarter. The higher income is also the result of our aggressive cost
cutting program to reduce overhead costs in line with volume and to continue integration of our
acquisitions to eliminate duplication and one time charges. We anticipate that the full effect of
this cost cutting will be reflected in our fourth quarter.”
CECO will host a conference call on Thursday, May 7, 2009, at 10:30 a.m. EDT to review its
financial results for the quarter. Conferencing details are as follows:
Dial in number: 800.901.5247
International dial in number: 617.786.4501
Participant passcode: 98484209
Replay: 888-286-8010
International: 617-801-6888
Passcode: 14200214
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