| May
17, 2004
CECO ENVIRONMENTAL REPORTS FIRST
QUARTER RESULTS
NEW
YORK, May 17, 2004 - CECO Environmental
Corp. (NASDAQ: CECE), a leading provider of
industrial ventilation and pollution
control systems, today announced
first quarter results for the
period ended March 31, 2004.
Revenue for the three-month
period ended March 31, 2004 was
$14,146,000 compared to $15,201,000
during the same quarter in 2003.
CECO's component parts and duct
product lines posted improved
sales over 2003 while construction
revenues accounted for the decline.
Nearly all of CECO's operations
showed increased bookings in
2004 as orders booked increased
by 5% during the first quarter
of 2004. It is important to note,
that 2003 included one $2.8 million
order with no comparably sized
orders in 2004. In total, orders
increased by $650,000 to $15,000,000
in 2004 compared to $14,350,000
in the same quarter of 2003.
Richard Blum, President, stated, "our
bellwether, component parts,
posted a 20% increase in orders,
followed by credible increases
in orders at most of our other
operations. Our pipeline of major
projects not yet awarded is healthy,
despite the fact that the bookings
of these orders are currently
lagging." Blum added, "we
are seeing pockets of increased
industrial activity that we're
pursuing as well as developing
international opportunities.
However, our top-line has been
somewhat hampered by delays in
capital spending for major projects,
due to the current economic environment."
First quarter FY2004 gross profit
was $2,805,000 (19.8%) compared
to $3,069,000 (20.2%) during
the first quarter in 2003. Gross
margin in 2004 remained relatively
consistent in the face of a difficult
economic environment because
of increased construction margins
along with reduced factory overhead
spending.
Selling and administrative expenses
were $2,575,000 during the first
quarter of 2004 compared to $2,542,000
in the same period of 2003. Additional
costs reduction opportunities
are being evaluated for implementation
in the second quarter of FY2004.
Operating loss for the first
quarter FY2004 was ($189,000)
compared to an operating profit
of $124,000 during the comparable
period in 2003.
Net loss for the quarter ended
March 31, 2004 was ($381,000)
or ($0.04) per share compared
to net loss of ($249,000) or
($0.03) per share for the same
period in 2003.
Chairman and CEO, Phillip DeZwirek,
commented, "we continue
to maintain the company's focus
on reducing leverage, refinancing
the bank debt and increasing
profitability. These objectives
are paramount." |
