6.5.2003: Meldung: CECO Environmental: First Quarter Results
Revenue for the three-month period ended March 31, 2003 was $15,201,000 compared to $18,879,000 during the same quarter in 2002.
First quarter FY2003 gross profit was $3,069,000 (20.2%) compared to $3,838,000 (20.3%) during the first quarter in 2002. Strong project management coupled with reduced factory overhead expenses maintained CECO"s gross margin in this competitive economic environment. Management"s cost- containment plans implemented in 2002 were instrumental in reducing factory overhead expenses in the current quarter.
Selling and administrative expenses decreased by $540,000 to $2,542,000 during the first quarter of 2003 from $3,082,000 in the same period of 2002. FY2003 will benefit from two previously announced cost reduction initiatives (principally through efficiencies and consolidation of functions) that were implemented during May and September of 2002. Annualized cost savings of $2,000,000 are expected, which began during the third quarter of 2002.
Operating profit for the first quarter FY2003 was $124,000 compared to $299,000 during the comparable period in 2002.
Net loss for the quarter ended March 31, 2003 was ($249,000) or ($0.03) per share compared to net loss of ($197,000) or ($0.02) per share for the same period in 2002.
Orders booked during the first quarter of 2003 were $14,350,000 compared to $19,530,000 in the same quarter of 2002. March 31, 2003, backlog was $13,500,000, compared to $14,600,000 at December 31, 2002. First quarter FY2003 bookings included $5,725,000 in previously announced contracts spanning diverse industry market sectors; $2,750,000 order for an automotive parts foundry located in Mexico, $1,600,000 order for a rubber manufacturer, $875,000 order for a steel mill and a $500,000 order for a power generation utility.
President, Richard Blum, stated, "We are seeing the sales opportunities throughout the industrial market sector improving. The decline in our first quarter bookings reflected the reluctance of many of our current and prospective customers to spend needed capital expenditures in this current economic environment." Blum added, "We are realizing the benefits of our cost reduction initiatives in reduced operating costs. Economic uncertainties aside, we are continuing to target further efficiencies and cost reductions throughout CECO."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America"s largest independent air pollution control company. Through its five subsidiaries -- Busch, CECO Filters, 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/.
Phillip DeZwirek, CECO Environmental Corp.
CECO Environmental Corp.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three months ended
Net sales $15,201 $18,879
Cost of sales 12,132 15,041
Gross Profit 3,069 3,838
Selling and administrative 2,542 3,082
Depreciation and amortization 403 457
Operating income 124 299
Interest expense & other income (593) (683)
Income (loss) before income taxes (469) (384)
Income tax benefit 220 187
Net income (loss) ($249) ($197)
Per Share Data (basic & diluted):
Net income (loss) per share ($0.03) ($0.02)
Weighted average shares outstanding:
Basic and diluted 9,589.736 9,581.105
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, include changes in market conditions in the industries in which the Company operates. 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.
Source: CECO Environmental Corp.
Phillip DeZwirek, CECO Environmental Corp.