| August
6, 2003
CECO ENVIRONMENTAL REPORTS SECOND
QUARTER
AND SIX MONTH RESULTS
NEW
YORK, August 6, 2003 - CECO
Environmental Corp. (NASDAQ:
CECE), a leading provider of
industrial ventilation and pollution
control systems, announced today
second quarter and six month
results for the period ending
June 30, 2003.
Revenues for the second quarter
were $17,754,000 compared with
$18,586,000 in the same period
in FY2002.
Second quarter FY2003 gross
profit was $3,162,000 (17.8%)
compared to $3,637,000 (19.6%)
during the second quarter of
2002.
CECO implemented a cost reduction
initiative during the second
quarter of FY2003, which is expected
to produce annualized cost savings
of $800,000 beginning in third
quarter. This initiative coupled
with initiatives previously announced
and implemented in FY2002 will
have reduced the Company's operating
expenses by nearly $2,800,000,
since early 2002, on an annualized
basis. As a result, Selling and
Administrative expenses decreased
by $507,000 to $2,546,000, during
the second quarter of 2003 compared
with $3,053,000 in the second
quarter of 2002.
Operating profit for the second
quarter FY2003 was $220,000 compared
to $131,000 during the comparable
period in FY2002.
Net loss for the quarter ended
June 30, 2003 was ($82,000) or
($0.01) per share compared to
a net loss of ($205,000) or ($0.02)
per share for the same period
in FY2002.
Orders booked during the second
quarter of FY2003 were $16,960,000
and $31,300,000 for the first
six months of 2003. This compares
to $18,100,000 and $37,600,000
during comparable FY2002 periods.
June 30, 2003, backlog was $13,200,000,
compared to $14,600,000 at December
31, 2002. CECO's booking rate
showed a favorable trend in the
first half of FY2003, as second
quarter bookings were $2,620,000
higher (18.3%) than in the first
quarter.
First half FY2003 net loss was
($331,000) or ($0.03) per share
compared with ($402,000) or ($0.04)
per share for the same period
last year.
As previously announced, CECO
completed the sale and leaseback
of its Conshohocken, Pennsylvania
property resulting in cash proceeds
of approximately $1,600,000;
a gain of $222,000 was recognized
during the second quarter of
FY2003.
The Company's outstanding senior
debt was $13,929,000 at June
30, 2003, compared with $14,284,000
at December 31, 2002, a reduction
of $355,000.
President, Richard Blum, stated, "We
are experiencing higher levels
of selling activities in our
organization. Some of the fruits
of our efforts can be seen in
our recently announced orders
totaling $3,900,000, which cover
a diverse industry group." Blum
added, "The momentum gained
through the higher activity level
together with our substantial
reduction in operating expenses
have positioned CECO to show
improvement in the second half
of FY2003."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is
North America's largest independent
air pollution control company.
Through its five subsidiaries
-- Busch, 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 |
