Ceco Environmental: Q1 Results
CINCINNATI - CECO Environmental Corp. (CECE), a leading global provider of air pollution control technology, systems and equipment, announced first quarter results for the period ended March 31, 2013.
Financial highlights for the first quarter of 2013 compared to the first quarter of 2012 include:
Net sales were $34.4 million as compared to $33.0 million in the same period of 2012;
Gross profit increased by 9.8%, to $11.2 million as compared to $10.2 million in 2012;
Gross margin increased to 32.6% compared to 30.9% for the same quarter in 2012;
Operating income decreased to $3.3 million in 2013 compared to $3.7 million in 2012; Non-GAAP operating income, adjusted for transaction related costs including legal, accounting, banking, retention payments, earn-out expenses and amortization of intangibles related to recent acquisitions, increased to $4.6 million compared to $3.8 million a 21.1% improvement;
Operating margin decreased to 9.6% from 11.2% in 2012; Non-GAAP operating margin, adjusted as noted above, increased to 13.4% compared to 11.5%;
Net income increased to $2.2 million in 2013 as compared to net income of $2.0 million in 2012; Non-GAAP net income, adjusted as noted above, increased to $3.3 million compared to $2.1 million;
Net income per diluted share was $0.12 in 2013 as compared to $0.12 in 2012; Non-GAAP net income per diluted share, adjusted as noted above, increased to $0.18 in 2013 compared to $0.13 in 2012.
Bookings were $37.6 million compared to $30.7 million in 2012, an increase of 22.5%; and
Backlog as of March 31, 2013 was $75.8 million compared to $59.5 million as of December 31, 2012 and $52.6 million as of March 31, 2012.
On April 22nd, CECO announced that it had entered into a definitive agreement to acquire Met-Pro Corporation (MPR). Met-Pro is a leading global, niche-oriented provider of product recovery, pollution control, fluid handling and filtration solutions across multiple diversified end-markets. Pursuant to the terms of the definitive agreement, CECO will acquire all of the outstanding shares of Met-Pro common stock in a cash and stock transaction valued at a total of approximately $210 million. The completion of the acquisition is subject to standard closing conditions including the approval of the stockholders of both CECO and Met-Pro. Please refer to our Current Report on Form 8-K filed with the SEC on April 22, 2013 and our other SEC filings for more information.
"I am once again very pleased with our results for the quarter as CECO continued to achieve significant improvements in margins and profitability," commented CECO's Chief Executive Officer, Jeff Lang. "We realized record gross and operating margins which was a direct result of our focus on operational excellence and the inclusion of our recent accretive acquisitions of both Adwest and Aarding. Our year-to-date bookings have increased substantially over the same period last year as new and existing customers placed substantial orders with us for their air pollution control needs around the world."
Mr. Phillip DeZwirek, CECO's Chairman commented, "We are very excited with the recent announced acquisition of Met-Pro Corporation which together with CECO will create the global platform in the growing air pollution control and product recovery technology sectors. The team has already identified significant cost and revenue synergies and expects once we close the transaction, the benefits from this acquisition will generate significant value for all our shareholders."
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading global provider of air pollution control technology. Through its subsidiaries – Aarding Thermal Acoustics, Adwest Technologies, Busch International, CECO Filters, CECO Abatement Systems, Kirk & Blum, Effox-Flextor, Fisher-Klosterman/Buell, CECO China and A.V.C. Specialists, CECO provides a wide spectrum of air quality products and services including engineered equipment, cyclones, scrubbers, dampers, diverters, RTO's, component parts and monitoring and management services. Industries served include refining, petro-chemical, power, aluminum, steel, automotive, chemical and large industrial processes. Revenue is approximately 75% from engineered equipment technology and 25% from parts, services and aftermarket. Global Growth, Operational Excellence, Margin Expansion, Safety, and Employee Development are CECO's core competencies and long term objectives.
For more information on CECO Environmental please visit the company's website at http://www.cecoenviro.com.
Jeff Lang, CECO Environmental Corp.