DALLAS, Aug. 9, 2017 /PRNewswire/
-- Highlights of the Second Quarter 2017*
- Revenue of $93.9 million,
compared with $112.3 million
- Gross profit of $28.5 million
(30.4% margin), compared with $33.9
million (30.2% margin)
- Non-GAAP gross profit of $30.4
million (32.4% margin) compared with $34.0 million (30.3% margin)
- Operating income of $9.3 million
compared with $8.6 million
- Non-GAAP operating income of $9.4
million compared with $13.0
million
- Net income was $5.5 million,
compared with $4.0 million
- Non-GAAP net income of $2.9
million, compared with $7.3
million
- Net income per diluted share was $0.16, compared with $0.12
- Non-GAAP net income per diluted share of $0.08, compared with $0.21
- Adjusted EBITDA of $11.0 million,
compared with $15.5 million
- Bookings of $87.2 million
- Backlog of $167.9 million
- Debt repayment of $4.7
million
* All comparisons are versus the comparable prior-year
period.
CECO Environmental Corp. (Nasdaq: CECE), a leading global
energy, environmental, and industrial technology company, today
reported its financial results for the second quarter and first six
months of 2017.
CECO's Chief Executive Officer Dennis
Sadlowski commented, "The first half of 2017 was challenging
and we are not satisfied with our overall results. However,
even with the soft power generation and refinery markets, there are
clear and compelling signs that our intense customer focus is
gaining traction. We have had three consecutive quarters of modest
bookings growth, which has been fueled by higher proposal win
percentages, and includes several first-time customer wins. All of
this suggests that we are gaining market share in support of our
quest for organic growth. Notwithstanding, we believe near-term
headwinds in a few key markets will continue to create challenges
during the remainder of 2017."
Mr. Sadlowski added, "As our customers seek growth and
expansion, we are increasingly well-suited to help them meet their
environmental commitments with clean, safe, and more efficient
products, services and solutions throughout their life cycle."
SECOND QUARTER RESULTS
Revenue in the second quarter of 2017 was $93.9 million, down 16.4% from $112.3 million in the prior-year period.
Operating income was $9.3 million
for the second quarter of 2017 (9.9% margin), compared with
$8.6 million in the prior-year period
(7.7% margin). Operating income on a non-GAAP basis was
$9.4 million for the second quarter
of 2017 (10.0% margin), compared with $13.0
million in the prior-year period (11.6% margin).
Net income was $5.5 million for
the second quarter of 2017, compared with $4.0 million in the prior-year period. Net
income on a non-GAAP basis was $2.9
million for the second quarter of 2017, compared with
$7.3 million in the prior-year
period.
Net income per diluted share was $0.16 for the second quarter of 2017, compared
with net income per diluted share of $0.12 in the prior-year period. Non-GAAP net
income per diluted share was $0.08
for the second quarter of 2017, compared with $0.21 for the prior-year period.
Cash and cash equivalents were $27.2
million and bank debt was $117.6
million, as of June 30, 2017, compared with
$45.8 million and $126.4 million, respectively, as of December 31, 2016.
BACKLOG AND BOOKINGS
Total backlog at June 30, 2017 was $167.9 million as compared with $197.0 million on December
31, 2016, and $224.7 million
on June 30, 2016. During the second quarter of 2017,
$9.7 million of orders were taken out
of backlog due to customer inactivity.
Bookings were $87.2 million for
the second quarter of 2017, compared with $108.8 million in the prior-year period.
Bookings were $171.2 million for the
first six months of 2017 compared with $228.9 million for the prior-year period.
YEAR-TO-DATE RESULTS
Revenue in the first six months of 2017 was $186.5 million, down 13.4% from $215.4 million in the prior-year period.
Operating income was $10.6 million
for the first six months of 2017 (5.7% margin), compared with
$14.4 million in the prior-year
period (6.7% margin). Operating income on a non-GAAP basis
was $19.5 million for the first six
months of 2017 (10.5% margin), compared with $23.9 million in the prior-year period (11.1%
margin).
Net income was $5.5 million for
the first six months of 2017, compared with $7.1 million in the prior-year period. Net
income on a non-GAAP basis was $9.9
million for the first six months of 2017, compared with
$13.4 million in the prior-year
period.
Net income per diluted share was $0.16 for the first six months of 2017, compared
with net income per diluted share of $0.21 in the prior-year period. Non-GAAP net
income per diluted share was $0.29
for the first six months of 2017, compared with $0.39 for the prior-year period.
QUARTERLY DIVIDENDS
On August 7, 2017, CECO's Board of
Directors approved a quarterly dividend of $0.075 per share. The dividend will be paid
on September 29, 2017 to all
stockholders of record on close of business on September 15, 2017. CECO initiated a
Dividend Reinvestment Plan ("DRIP") in 2012 that provides for the
voluntary reinvestment of dividends by its stockholders.
CONFERENCE CALL
A conference call is scheduled for today at 8:30 a.m. ET to discuss the second quarter 2017
results. The conference call may be accessed by dialing
+1.877.407.3982 (Toll-Free) in the U.S. and Canada or by dialing +1.201.493.6780 for
international calls. A replay will be available from
1:30 p.m. ET on August 9, 2017 until August 23, 2017 at 11:59
p.m. ET. The replay may be accessed by dialing
+1.844.512.2921 (Toll-Free) in the U.S. and Canada or by dialing +1.412.317.6671 for
international calls and entering passcode 13667300.
The live webcast and slides can also be accessed
at https://www.cecoenviro.com/events-calendar.
ABOUT CECO ENVIRONMENTAL
CECO is a diversified global provider of leading engineered
technologies to the energy, environmental, and fluid handling and
filtration industrial segments, targeting specific niche-focused
end markets through an attractive asset-light business model. We
provide a wide spectrum of products and services including dampers
& diverters, cyclonic technology, thermal oxidizers, separation
and filtration systems, selective catalytic reduction ("SCR") and
selective non-catalytic reduction ("SNCR") systems, scrubbers,
dampers and silencers, exhaust systems, fluid handling equipment
and plant engineered services and engineered design build
fabrication. CECO's products play a vital role in helping companies
achieve exacting production standards, meeting increasing plant
needs and stringent emissions control regulations around the globe.
The company serves a broad range of markets and industries,
including power, municipalities, chemical, industrial
manufacturing, mid-stream pipeline natural gas transmission,
refining, petrochemical, metals, minerals & mining companies,
as well as hospitals and universities. CECO targets its $5
billion+ of installed base, specifically to expand and grow a
higher recurring revenue of aftermarket products and services. CECO
is listed on Nasdaq under the ticker symbol "CECE." For more
information, please visit http://www.cecoenviro.com/.
Contact:
Matthew Eckl, Chief Financial
Officer
800.333.5475
investor.relations@onececo.com
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data)
|
|
(unaudited)
JUNE 30,
2017
|
|
|
DECEMBER 31,
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,166
|
|
|
$
|
45,824
|
|
Restricted
cash
|
|
|
1,150
|
|
|
|
1,498
|
|
Accounts receivable,
net
|
|
|
66,131
|
|
|
|
83,062
|
|
Costs and estimated
earnings in excess of billings on uncompleted contracts
|
|
|
40,774
|
|
|
|
38,123
|
|
Inventories,
net
|
|
|
21,931
|
|
|
|
21,487
|
|
Prepaid expenses and
other current assets
|
|
|
12,791
|
|
|
|
13,560
|
|
Prepaid income
taxes
|
|
|
1,064
|
|
|
|
1,590
|
|
Assets held for
sale
|
|
|
8,108
|
|
|
|
7,834
|
|
Total current
assets
|
|
|
179,115
|
|
|
|
212,978
|
|
Property, plant and
equipment, net
|
|
|
25,532
|
|
|
|
27,270
|
|
Goodwill
|
|
|
170,847
|
|
|
|
170,153
|
|
Intangible
assets-finite life, net
|
|
|
55,449
|
|
|
|
60,728
|
|
Intangible
assets-indefinite life
|
|
|
22,268
|
|
|
|
22,042
|
|
Deferred charges and
other assets
|
|
|
5,149
|
|
|
|
5,463
|
|
|
|
$
|
458,360
|
|
|
$
|
498,634
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
7,742
|
|
|
$
|
8,827
|
|
Accounts payable and
accrued expenses
|
|
|
81,592
|
|
|
|
95,610
|
|
Billings in excess of
costs and estimated earnings on uncompleted contracts
|
|
|
23,545
|
|
|
|
35,085
|
|
Note
payable
|
|
|
5,300
|
|
|
|
5,300
|
|
Income taxes
payable
|
|
|
322
|
|
|
|
1,536
|
|
Total current
liabilities
|
|
|
118,501
|
|
|
|
146,358
|
|
Other
liabilities
|
|
|
25,326
|
|
|
|
34,864
|
|
Debt, less current
portion
|
|
|
107,045
|
|
|
|
114,366
|
|
Deferred income tax
liability, net
|
|
|
12,870
|
|
|
|
12,964
|
|
Total
liabilities
|
|
|
263,742
|
|
|
|
308,552
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $.01
par value; 10,000 shares authorized, none issued
|
|
|
—
|
|
|
|
—
|
|
Common stock, $.01 par
value; 100,000,000 shares authorized, 34,626,715 and
34,300,209 shares issued at June 30, 2017
and December 31, 2016, respectively
|
|
|
346
|
|
|
|
343
|
|
Capital in excess of
par value
|
|
|
246,974
|
|
|
|
244,878
|
|
Accumulated
loss
|
|
|
(41,501)
|
|
|
|
(41,741)
|
|
Accumulated other
comprehensive loss
|
|
|
(10,845)
|
|
|
|
(13,042)
|
|
|
|
|
194,974
|
|
|
|
190,438
|
|
Less treasury stock,
at cost, 137,920 shares at June 30, 2017 and December 31,
2016
|
|
|
(356)
|
|
|
|
(356)
|
|
Total shareholders'
equity
|
|
|
194,618
|
|
|
|
190,082
|
|
|
|
$
|
458,360
|
|
|
$
|
498,634
|
|
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
JUNE 30,
|
|
|
SIX MONTHS
ENDED
JUNE 30,
|
|
(dollars in
thousands, except per share data)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net sales
|
|
$
|
93,870
|
|
|
$
|
112,258
|
|
|
$
|
186,521
|
|
|
$
|
215,433
|
|
Cost of
sales
|
|
|
65,384
|
|
|
|
78,328
|
|
|
|
126,106
|
|
|
|
149,917
|
|
Gross
profit
|
|
|
28,486
|
|
|
|
33,930
|
|
|
|
60,415
|
|
|
|
65,516
|
|
Selling and
administrative expenses
|
|
|
21,476
|
|
|
|
20,131
|
|
|
|
44,732
|
|
|
|
41,076
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
324
|
|
|
|
—
|
|
|
|
361
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(2,245)
|
|
|
|
4,914
|
|
|
|
5,078
|
|
|
|
9,711
|
|
Income from
operations
|
|
|
9,255
|
|
|
|
8,561
|
|
|
|
10,605
|
|
|
|
14,368
|
|
Other income
(expense), net
|
|
|
360
|
|
|
|
(399)
|
|
|
|
251
|
|
|
|
381
|
|
Interest
expense
|
|
|
(1,645)
|
|
|
|
(1,980)
|
|
|
|
(3,356)
|
|
|
|
(4,082)
|
|
Income before income
taxes
|
|
|
7,970
|
|
|
|
6,182
|
|
|
|
7,500
|
|
|
|
10,667
|
|
Income tax
expense
|
|
|
2,484
|
|
|
|
2,145
|
|
|
|
1,976
|
|
|
|
3,575
|
|
Net income
|
|
$
|
5,486
|
|
|
$
|
4,037
|
|
|
$
|
5,524
|
|
|
$
|
7,092
|
|
Net loss attributable
to noncontrolling interest
|
|
$
|
—
|
|
|
$
|
(13)
|
|
|
$
|
—
|
|
|
$
|
(58)
|
|
Net income
attributable to CECO Environmental Corp.
|
|
$
|
5,486
|
|
|
$
|
4,050
|
|
|
$
|
5,524
|
|
|
$
|
7,150
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.21
|
|
Diluted
|
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.21
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,473,688
|
|
|
|
33,946,117
|
|
|
|
34,345,317
|
|
|
|
33,937,128
|
|
Diluted
|
|
|
34,806,808
|
|
|
|
34,161,543
|
|
|
|
34,685,687
|
|
|
|
34,139,087
|
|
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Gross profit as
reported in accordance with GAAP
|
|
$
|
28.5
|
|
|
$
|
33.9
|
|
|
$
|
60.4
|
|
|
$
|
65.5
|
|
Gross profit margin
in accordance with GAAP
|
|
|
30.4
|
%
|
|
|
30.2
|
%
|
|
|
32.4
|
%
|
|
|
30.4
|
%
|
Legacy design
repairs
|
|
|
1.8
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
0.3
|
|
Non-GAAP gross
profit
|
|
$
|
30.4
|
|
|
$
|
34.0
|
|
|
$
|
62.7
|
|
|
$
|
65.9
|
|
Non-GAAP gross
profit margin
|
|
|
32.4
|
%
|
|
|
30.3
|
%
|
|
|
33.6
|
%
|
|
|
30.6
|
%
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Operating income as
reported in accordance with GAAP
|
|
$
|
9.3
|
|
|
$
|
8.6
|
|
|
$
|
10.6
|
|
|
$
|
14.4
|
|
Operating margin in
accordance with GAAP
|
|
|
9.9
|
%
|
|
|
7.7
|
%
|
|
|
5.7
|
%
|
|
|
6.7
|
%
|
Legacy design
repairs
|
|
|
1.8
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
0.3
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
(1.0)
|
|
|
|
—
|
|
|
|
(1.0)
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
0.4
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(2.2)
|
|
|
|
4.9
|
|
|
|
5.1
|
|
|
|
9.7
|
|
Executive transition
expenses
|
|
|
0.4
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
—
|
|
Facility exit
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
Non-GAAP operating
income
|
|
$
|
9.4
|
|
|
$
|
13.0
|
|
|
$
|
19.5
|
|
|
$
|
23.9
|
|
Non-GAAP operating
margin
|
|
|
10.0
|
%
|
|
|
11.6
|
%
|
|
|
10.5
|
%
|
|
|
11.1
|
%
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net income as
reported in accordance with GAAP
|
|
$
|
5.5
|
|
|
$
|
4.0
|
|
|
$
|
5.5
|
|
|
$
|
7.1
|
|
Legacy design
repairs
|
|
|
1.8
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
0.3
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
(1.0)
|
|
|
|
—
|
|
|
|
(1.0)
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
0.4
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(2.2)
|
|
|
|
4.9
|
|
|
|
5.1
|
|
|
|
9.7
|
|
Executive transition
expenses
|
|
|
0.4
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
—
|
|
Facility exit
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
Foreign currency
remeasurement
|
|
|
(1.2)
|
|
|
|
0.5
|
|
|
|
(1.5)
|
|
|
|
(0.4)
|
|
Tax benefit of
adjustments
|
|
|
(1.5)
|
|
|
|
(1.6)
|
|
|
|
(3.0)
|
|
|
|
(2.8)
|
|
Non-GAAP net
income
|
|
$
|
2.9
|
|
|
$
|
7.3
|
|
|
$
|
9.9
|
|
|
$
|
13.4
|
|
Depreciation
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
2.1
|
|
|
|
2.2
|
|
Non-cash stock
compensation (excluding executive transition costs)
|
|
|
0.7
|
|
|
|
0.5
|
|
|
|
1.2
|
|
|
|
1.1
|
|
Other (income) /
expense
|
|
|
0.8
|
|
|
|
(0.1)
|
|
|
|
1.2
|
|
|
|
—
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.0
|
|
Interest
expense
|
|
|
1.6
|
|
|
|
2.0
|
|
|
|
3.4
|
|
|
|
4.1
|
|
Income tax
expense
|
|
|
4.0
|
|
|
|
3.8
|
|
|
|
5.0
|
|
|
|
6.4
|
|
Adjusted
EBITDA
|
|
$
|
11.0
|
|
|
$
|
15.5
|
|
|
$
|
22.8
|
|
|
$
|
28.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.21
|
|
Diluted
|
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
0.39
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.21
|
|
|
$
|
0.29
|
|
|
$
|
0.39
|
|
NOTE REGARDING NON-GAAP FINANCIAL
MEASURES
CECO is providing certain non-GAAP historical financial measures
as presented above as the Company believes that these figures are
helpful in allowing individuals to better assess the ongoing nature
of CECO's core operations. A "non-GAAP financial measure" is a
numerical measure of a company's historical financial performance
that excludes amounts that are included in the most directly
comparable measure calculated and presented in the GAAP statement
of operations.
Non-GAAP gross profit, Non-GAAP operating income, non-GAAP net
income, non-GAAP gross profit margin, non-GAAP operating margin,
non-GAAP earnings per basic and diluted share and adjusted EBITDA,
as we present them in the financial data included in this press
release, have been adjusted to exclude the effects of expenses
related to legacy design repairs, inventory valuation adjustments,
property, plant and equipment valuation adjustments, gains from
insurance settlements, acquisition and integration expense
activities including retention, legal, accounting, banking,
amortization and contingent earn-out expenses, foreign currency
re-measurement, intangible asset impairment, legal reserves,
executive transition expenses, facility exit expenses, other
nonrecurring or infrequent items and the associated tax benefit of
these items. Management believes that these items are not
necessarily indicative of the Company's ongoing operations and
their exclusion provides individuals with additional information to
compare the Company's results over multiple periods.
Management utilizes this information to evaluate its ongoing
financial performance. Our financial statements may continue to be
affected by items similar to those excluded in the non-GAAP
adjustments described above, and exclusion of these items from our
non-GAAP financial measures should not be construed as an inference
that all such costs are unusual or infrequent.
Non-GAAP gross profit, non-GAAP operating income, non-GAAP net
income, non-GAAP gross profit margin, non-GAAP operating margin,
non-GAAP earnings per basic and diluted share, adjusted EBITDA,
adjusted EBITDA margin, adjusted free cash flow and adjusted net
free cash flow are not calculated in accordance with GAAP, and
should be considered supplemental to, and not as a substitute for,
or superior to, financial measures calculated in accordance with
GAAP. Non-GAAP financial measures have limitations in that they do
not reflect all of the costs associated with the operations of our
business as determined in accordance with GAAP. As a result, you
should not consider these measures in isolation or as a substitute
for analysis of CECO's results as reported under GAAP.
Additionally, CECO cautions investors that non-GAAP financial
measures used by the Company may not be comparable to similarly
titles measures of other companies.
In accordance with the requirements of Regulation G issued by
the Securities and Exchange Commission, non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income, non-GAAP gross
profit margin, non-GAAP operating margin, non-GAAP earnings per
basic and diluted share, adjusted EBITDA, adjusted EBITDA margin,
adjusted free cash flow and adjusted net free cash flow stated in
the tables above present the most directly comparable GAAP
financial measure and reconcile to the most directly comparable
GAAP financial measures. Adjusted free cash flow and adjusted
net free cash flow have limitations due to the fact that they do
not represent the residual cash flow available for discretionary
expenditures since they do not take into account debt service
requirements or other non-discretionary expenditures that are not
deducted from these measures.
SAFE HARBOR
Any statements contained in this press release other than
statements of historical fact, including statements about
management's beliefs and expectations, are forward-looking
statements and should be evaluated as such. These statements are
made on the basis of management's views and assumptions regarding
future events and business performance. Words such as "estimate,"
"believe," "anticipate," "expect," "intend," "plan," "target,"
"project," "should," "may," "will" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements (including oral representations) involve risks and
uncertainties that may cause actual results to differ materially
from any future results, performance or achievements expressed or
implied by such statements. These risks and uncertainties include,
but are not limited to: liabilities arising from faulty services or
products that could result in significant professional or product
liability, warranty, or other claims; our ability to successfully
integrate acquired businesses and realize the synergies from
acquisitions, as well as a number of factors related to our
business including economic and financial market conditions
generally and economic conditions in CECO's service areas;
dependence on fixed price contracts and the risks associated
therewith, including actual costs exceeding estimates and method of
accounting for contract revenue; fluctuations in operating results
from period to period due to cyclicality or seasonality of the
business; the effect of growth on CECO's infrastructure, resources,
and existing sales; the ability to expand operations in both new
and existing markets; the potential for contract delay or
cancellation; changes in or developments with respect to any
litigation or investigation; failure to meet timely completion or
performance standards that could result in higher cost and reduced
profits or, in some cases, losses on projects; the potential for
fluctuations in prices for manufactured components and raw
materials; the substantial amount of debt incurred in connection
with our acquisitions and our ability to repay or refinance it or
incur additional debt in the future; the impact of federal, state
or local government regulations; economic and political conditions
generally; and the effect of competition in the environmental,
energy and fluid handling and filtration industries. These and
other risks and uncertainties are discussed in more detail in
CECO's filings with the Securities and Exchange Commission,
including our reports on Form 10-K and Form 10-Q. Many of these
risks are beyond management's ability to control or predict. 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. Investors are
cautioned not to place undue reliance on such forward-looking
statements as they speak only to our views as of the date the
statement is made. All forward-looking statements attributable to
CECO or persons acting on behalf of CECO are expressly qualified in
their entirety by the cautionary statements and risk factors
contained in this press release and CECO's respective filings with
the Securities and Exchange Commission. Furthermore,
forward-looking statements speak only as of the date they are made.
Except as required under the federal securities laws or the rules
and regulations of the Securities and Exchange Commission, CECO
undertakes no obligation to update or review any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE CECO Environmental Corp.