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Prepared By R.R. Donnelley Financial -- Form 8-K
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  11/08/2006
 
CECO ENVIRONMENTAL CORP
(Exact name of registrant as specified in its charter)
 
Commission File Number:  0-7099
 
DE
  
13-2566064
(State or other jurisdiction of
  
(IRS Employer
incorporation)
  
Identification No.)
 
3120 Forrer Street, Cincinnati, OH 45209
(Address of principal executive offices, including zip code)
 
(416) 593-6543
(Registrant’s telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Information to be included in the report

 
Item 2.02.    Results of Operations and Financial Condition
 
On November 8, 2006, the registrant issued a press release announcing its financial results for the third quarter and nine months ended September 30, 2006. A copy of the press release is attached as Exhibit 99.1 to this current report.

The information in this Item 2.02, and Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 
 
Item 9.01.    Financial Statements and Exhibits
 
99.1 Press Release issued November 8, 2006
 

 

Signature(s)
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
      
 
CECO ENVIRONMENTAL CORP
 
 
Date: November 08, 2006
     
By:
 
/s/    Dennis W. Blazer
               
Dennis W. Blazer
               
CFO and Vice President-Finance and Administration
 
 

 

Exhibit Index
 
Exhibit No.
  
Description
EX-99.1
  
Press Release
May 7, 2003

NASDAQ:CECE NEWS RELEASE

CECO ENVIRONMENTAL REPORTS RECORD QUARTERLY AND

NINE MONTH REVENUE AND OPERATING INCOME

REVENUES INCREASED BY OVER 60% FOR BOTH PERIODS

OPERATING INCOME INCREASED BY 32% FOR THE QUARTER

OPERATING INCOME INCREASED BY 142% FOR THE NINE MONTH PERIOD

NEW YORK, November 08, 2006 - CECO Environmental Corp. (NASDAQ:CECE), a leading provider of air pollution control and industrial ventilation systems, today announced record revenues and net income for the three and nine months ended September 30, 2006.

Financial highlights:

$ in 000's

Three months ended September 30

2006

2005

$

change

%

change

Net sales

$ 37,734

$ 23,442

$14,292

61.0%

Gross profit

6,142

4,524

1,618

35.8%

Operating income

1,664

1,257

407

32.4%

Other income (expense)1

409

(273)

682

n/a

Income before income tax

1,613

390

1,223

314%

Income tax expense

546

35

511

1460%

Net income

$1,067

$355

$712

201%

Nine months ended September 30

2006

2005

$

change

%

change

Net sales

$ 93,861

$ 58,512

$35,349

60.4%

Gross profit

15,878

10,965

4,913

44.8%

Operating income

3,600

1,489

2,111

141.8%

Other income (expense)1

703

(197)

900

n/a

Income (loss) before income tax

2,746

(524)

3,270

n/a

Income tax expense (benefit)

853

(482)

1,335

n/a

Net income (loss)

$1,893

$(42)

$1,935

n/a

Note:

1 Other income (expense) was $409,000 in the third quarter of 2006 compared to other expense of ($273,000) in the third quarter of 2005. $432,000 of third quarter 2006 income was the result of the exercise of 100,600 warrants issued in December 2001 offset by other expenses of $23,000. Other income for the nine months ended September 30, 2006 was $703,000 compared to other expense of ($197,000) in 2005. $727,000 of nine month 2006 income was the result of the exercise of 348,567 warrants issued in December 2001 offset by $24,000 of other expenses.

 

 

 

 

Our backlog as of September 30, 2006 was $50.1 million compared to $28.9 million as of December 31, 2005.

President, Rick Blum stated "We continue to be pleased with our 2006 results. Although our margins as a percentage of sales are lower than prior periods, the change is due primarily to a changing product mix and the negative impact of one large underperforming project which reduced our overall margins by approximately one percentage point for both the quarter and the nine month period. Despite these factors, our gross profits have increased significantly."

Chairman and CEO, Phillip DeZwirek commented "Our order flow this year has remained consistently strong with bookings through October of over $126 million compared to $69.5 million through October of 2005. We anticipate that the fourth quarter will reflect this continuing upward trend in revenues and profits."

ABOUT CECO ENVIRONMENTAL

CECO Environmental Corp. is North America's largest independent air pollution control company. Through its seven subsidiaries -- Busch, CECOaire, CECO Filters, CECO Abatement Systems, kbd/Technic, Kirk & Blum and H. M. White, Inc. -- 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, ethanol, 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: investors@cecoenviro.com

1-800-606-CECO

 

 

 

CECO Environmental Corp.

Condensed Consolidated Statement of Operations

($'s in thousands, except per share data)

(unaudited)
 

Three months ended

Nine months ended

  
 

30-Sept-06

30-Sept-05

30-Sept-06

30-Sept-05

Net sales

$37,734

$23,442

$93,861

$58,512

Cost of sales

31,592

18,918

77,983

47,547

Gross profit

6,142

4,524

15,878

10,965

Selling and administrative

4,185

2,974

11,400

8,600

Depreciation and amortization

293

293

878

876

Operating income

1,664

1,257

3,600

1,489

Other income (expense)

409

(273)

703

(197)

Interest expense

(460)

(594)

(1,557)

(1,816)

Income (loss) before income taxes

1,613

390

2,746

(524)

Income tax provision (benefit)

546

35

853

(482)

Net income (loss)

$1,067

$355

$1,893

($42)

Per share data:

 

    

Basic net income (loss)

$.09

$.04

$.17

$ .00

Diluted net income (loss)

$.08

$.03

$.15

$ .00

Weighted average shares outstanding:

Basic

 

 

11,412,369

 

 

9,993,260

 

 

11,185,464

 

 

9,993,260

Diluted

13,033,824

11,169,034

12,778,806

9,993,260

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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