Ceco Environmental: Q2 Results
ECO Environmental Corp., a leading provider of air pollution control systems, announced second quarter and six month results for the period ended June 30, 2011. Additionally, the Company announced approval by its Board of Directors of a share buyback program authorizing the purchase of up to 0.5 million shares of CECO common stock over an eighteen month period.
Financial highlights for the second quarter of 2011 compared to the second quarter of 2010 include:
Net sales were $32.5 million compared to $34.8 million in the comparable quarter;
Gross profit increased to $8.7 million from $8.4 million;
Gross margin increased to 26.8% from 24.1%;
Selling & administrative expenses were reduced by $1.2 million to $5.7 million;
Selling & administrative expenses as a percent of sales decreased from 19.8% to 17.5%;
Operating income increased to $2.8 million from $1.4 million in 2010;
Operating margin increased to 8.6% from 4.0% in 2010;
Net income was $2.0 million compared to net income of $0.6 million in 2010;
Net income per diluted share was $0.12 compared to net income per diluted share of $0.04 in 2010;
Bookings increased by 7% to $33.5 million compared to $31.3 million in 2010;
Cash and cash equivalents increased to $8.4 million with only $0.3 million in bank debt; and
Backlog as of June 30, 2011 was $52.6 million compared to $51.6 million as of March 31, 2011.
Financial highlights for the six months ended June 30, 2011 compared to six months ended June 30, 2010 include:
Net sales were $68.5 million compared to $69.8 million for the comparable period in 2010;
Gross profit increased to $17.2 million from $16.4 million;
Gross margin increased to 25.1% from 23.5%;
Selling & administrative expenses were reduced to $11.7 million from $14.1 million;
Selling & administrative expenses as a percent of sales decreased from 20.2% to 17.1%;
Operating income increased to $5.3 million from $2.0 million in 2010;
Operating margin increased to 7.7% from 2.9% in 2010;
Net income was $3.2 million compared to net income of $0.7 million in 2010;
Net income per diluted share was $0.20 compared to net income per diluted share of $0.05;
Year-to-date bookings increased by 14% to $66.8 million compared to $58.4 million in 2010.
Our year-over-year bookings have increased by 14% and we are showing significant increases in gross margins and operating margins for the three and six month periods ended June 30, 2011.
"I am very pleased with the results from the second quarter and the ongoing improvement in financial performance that the Company has achieved," commented CECO's Chief Executive Officer, Jeff Lang. "Our slightly lower revenues in the quarter are the result of our intentional pruning of lower margin customer segments from our backlog, primarily in our Contracting/Services Group. Nevertheless, we expect that revenues will increase as our domestic and global sales initiatives take effect."
Mr. Lang continued, "We continue to realize the positive results from global growth, streamlining and gross margin enhancement that we began implementing last year. Additionally, nearly 32% of our 2011 bookings were from international customers which provides further proof that our global expansion initiatives continue to be successful."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America's largest independent air pollution control company. CECO provides a wide spectrum of air quality services and products including: industrial air filters, environmental maintenance, monitoring and management services, and air quality improvement systems. CECO is a full-service provider to the steel, military, aluminum, automotive, ethanol, aerospace, electric power, 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.
Jeff Lang, CECO Environmental Corp.