CECO Environmental Corp.
Revenue for the three-month period ended March 31, 2005 was $15.1 million compared to $14.1 million during the same quarter in 2004. Increased sales from our component parts and duct products lines partially offset by lower construction revenues accounted for most of the increase in sales.
Nearly all of CECO's operations showed increased bookings in 2005 as orders booked increased by 14% during the first quarter of 2005. In total, orders increased by $2.1 million to $17.1 million in 2005 compared to $15.0 million in the same quarter of 2004.
Richard Blum, President, stated, "The increase in bookings continues into 2005 and we feel confident that our results for 2005 will be favorably affected."
First quarter FY2005 gross profit was $2.2 million (14.4%) compared to $2.7 million (19.4%) during the first quarter in 2004. Gross margin in 2005 decreased due to lower contribution margins in our contracting group and increases in material prices.
Selling and administrative expenses were $2.8 million during the first quarter of 2005 compared to $2.6 million in the same period of 2004. Cost reduction initiatives implemented in 2004 were offset by non-recurring relocation expenses and increased compensation costs in the first quarter of 2005.
Operating loss for the first quarter FY2005 was $960,000 compared to an operating loss of $169,000 during the comparable period in 2004.
Net loss for the quarter ended March 31, 2005 was $632,000 or $0.06 per share compared to net loss of $421,000 or $0.04 per share for the same period in 2004.
Chairman and CEO, Phillip DeZwirek, commented, "Although the first quarter results were disappointing, we are encouraged by the significant increase in new business from a variety of different industries. Our backlog continues to be maintained and we anticipate improved financial performance in the second half of 2005 as these orders are completed."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America's largest independent air pollution control company. Through its six subsidiaries -- Busch, CECOaire, 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/ .
Contact: Corporate Information Phillip DeZwirek, CECO Environmental Corp. Email:
firstname.lastname@example.org-CECO CECO Environmental Corp. Condensed Consolidated Statement of Operations (in thousands, except share and per share data) (unaudited) Three months ended 31-March-05 31-March-04 Net sales $15,055 $14,074 Cost of sales 12,882 11,341 Gross Profit 2,173 2,733 Selling and administrative 2,841 2,575 Depreciation & amortization 292 327 Operating loss (960) (169) Interest expense & other income (547) (596) Loss before income taxes (1,507) (765) Income tax benefit (875) (344) Net loss $(632) $(421) Per Share Data (basic & diluted): Net loss per share $(0.06) $(0.04) Weighted average shares outstanding: Basic and diluted 9,993,260 9,984,974
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: Corporate Information, Phillip DeZwirek of CECO Environmental
Corp., +1-800-606-CECO, or
Web site: http://www.cecoenviro.com/