CECO Environmental Corp.
Amounts for 2003 have been restated to reflect the changes as described in our Form 8-K filed with the Securities and Exchange Commission on February 8, 2005.
Revenues were $21,655,000 for the fourth quarter and $69,366,000 for FY2004 compared to $18,868,000 and $68,159,000 during the same periods in FY2003. CECO reported that most of the increase came in the fourth quarter from larger contracts in addition to increased sales resulting from the recent upturn in the U.S. economy. Smaller orders, such as replacement products, custom fabrication and service work, from CECO's large customer base remained relatively strong in 2004.
Gross profit was $3,632,000 (16.8%) during the fourth quarter of FY2004 and $13,095,000 (18.9%) for FY2004 compared to gross profit of $3,987,000 (21.1%) and $13,011,000 (19.1%) during the same periods in FY2003. The gross margin percentage decreased by 4.3 points during the fourth quarter of FY2004 and .2 points in FY2004 due to lower margins realized in CECO's construction operations, unusual inventory and workers compensation adjustments and increased material costs.
Operating profit generated during the fourth quarter of FY2004 was $525,000 and $1,185,000 in FY2004 compared to $810,000 and $1,364,000 during the comparable periods in FY2003.
CECO reported pretax earnings during the fourth quarter of 2004 of $17,000 and a pretax loss of ($1,176,000) for FY2004 compared to $167,000 and ($1,034,000) for the same periods in FY2003.
Fourth quarter FY2004 was negatively affected by an unfavorable tax adjustment resulting in a net loss of ($510,000) or ($0.05) per share compared to net income of $108,000 or $0.01 per share during the fourth quarter of 2003. FY2004 net loss was ($928,000) or ($0.09) per share compared with ($667,000) or ($0.07) per share for the same period last year.
Orders booked during the fourth quarter of FY2004 were $24,900,000 and $82,800,000 for FY2004. This represents an 88% increase compared to $13,200,000 for the fourth quarter of 2003 and a 36% increase compared to $61,000,000 for FY2003. Backlog was $20,700,000 at December 31, 2004.
Chairman and CEO, Phillip DeZwirek, stated that, "The fourth quarter of 2004 is an indication of what the future holds for CECO. The accounting controls improvements and strong bookings formed the foundation for 2005 and we have not been disappointed. Ending 2004 with a backlog almost triple that at the end of 2003 has created a momentum in 2005 so that our backlog continues to be maintained."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America's largest independent air pollution control company. Through its six subsidiaries -- Busch, CECO Filters, CECOaire, 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/
Contact: Corporate Information Phillip DeZwirek, CECO Environmental Corp. Email:
email@example.com-CECO CECO Environmental Corp. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) Three months Twelve months ended ended 12/31/2004 12/31/2003* 12/31/2004 12/31/2003* Net sales $21,655 $18,868 $69,366 $68,159 Cost of sales 18,023 14,881 56,271 55,148 Gross Profit 3,632 3,987 13,095 13,011 Selling & Administrative 2,823 2,871 10,656 10,402 Depreciation & amortization 284 306 1,254 1,245 Operating income 525 810 1,185 1,364 Interest (expense) & other income (508) (643) (2,361) (2,398) Income (loss) before tax 17 167 (1,176) (1,034) Income tax (expense) benefit (527) (59) 248 367 Net income (loss) $(510) $108 $(928) $(667) Per share data Net income (loss) per basic share (0.05) 0.01 (0.09) (0.07) Net income (loss) diluted share (0.05) 0.01 (0.09) (0.07) Weighted average shares outstanding Basic 9,991,901 9,852,280 9,989,666 9,852,280 Diluted 10,770,809 9,852,280 9,989,666 9,852,280 * As Restated
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.
CONTACT: Phillip DeZwirek, CECO Environmental Corp., +1-800-606-CECO, or
Web site: http://www.cecoenviro.com/