CECO Environmental Corp. (Nasdaq: CECE), a leading global air quality and fluid handling company serving the energy, industrial and other niche markets, today reported its financial results for the third quarter and year-to-date of 2020.
Highlights of the Third Quarter 2020*
- Revenue of $77.4 million, compared with $85.3 million
- Gross profit of $24.8 million (32.0% margin), compared with $28.8 million (33.8% margin)
- Operating income of $1.0 million, compared with $4.1 million
- Non-GAAP operating income of $5.9 million, compared with $7.0 million
- Net loss of $(0.2) million, compared with net income $1.9 million
- Non-GAAP net income of $3.8 million, compared with $4.2 million
- Adjusted EBITDA of $7.3 million, compared with $8.4 million
- Net loss per diluted share was $(0.01), compared with net income per diluted share of $0.05
- Non-GAAP net income per diluted share of $0.11, compared with $0.12
- Bookings of $66.8 million, compared with $115.7 million
- Backlog of $189.1 million, compared with $204.6 million as of June 30, 2020
* All comparisons are versus the comparable prior-year period, unless otherwise stated
Todd Gleason, CECO's Chief Executive Officer, commented, "During the third quarter, the CECO team continued to deliver solid execution for our customers and the company started to see emerging momentum in various industrial markets. Additionally, the company maintained its focus on streamlining costs which partially offset declines in revenue. Unfortunately, the energy markets remain challenged as global capital spending continues to be disrupted by the impact of the COVID-19 pandemic."
Mr. Gleason added, "We expect the markets to remain choppy and uncertain in the near-term, but we believe we can maintain our customer-focused execution and cost management to deliver future solid results. The company is also launching new strategic growth programs to expand into adjacent markets and more repeatable revenue streams. Furthermore, the company has kicked-off our Environmental, Social and Governance (ESG) program which will highlight the many good and important areas of leadership CECO drives and is committed to advance across each component."
THIRD QUARTER RESULTS
Revenue in the third quarter of 2020 was $77.4 million, down 9.3% from $85.3 million in the prior-year period.
Operating income was $1.0 million for the third quarter of 2020, compared with $4.1 million in the prior-year period. Non-GAAP operating income was $5.9 million for the third quarter of 2020 (7.6% margin), compared with $7.0 million in the prior-year period (8.2% margin).
Net loss was $(0.2) million for the third quarter of 2020, compared with net income $1.9 million in the prior-year period. Net loss per diluted share was $(0.01) for the third quarter 2020, compared with net income per diluted share of $0.05 in the prior-year period.
Net income on a non-GAAP basis was $3.8 million for the third quarter of 2020, compared with $4.2 million in the prior-year period. Non-GAAP net income per diluted share was $0.11 for the third quarter of 2020, compared with $0.12 for the prior-year period.
Cash and cash equivalents were $44.5 million and bank debt was $77.9 million as of September 30, 2020, compared with $41.5 million and $79.5 million, respectively, as of June 30, 2020.
BACKLOG AND BOOKINGS
Total backlog at September 30, 2020 was $189.1 million as compared with $204.6 million on June 30, 2020 and $237.8 million on September 30, 2019. Backlog acquired from the Effox-Mader joint venture was $1.0 million.
Bookings were $66.8 million for the third quarter of 2020, compared with $115.7 million in the prior-year period. Bookings were $202.4 million for the first nine months of 2020, compared with $316.0 million in the prior year period.
YEAR-TO-DATE RESULTS
Revenue in the first nine months of 2020 was $233.1 million, down 7.7% from $252.5 million in the prior-year period.
Operating income was $9.7 million for the first nine months of 2020 (4.2% margin), compared with $11.0 million in the prior-year period (4.4% margin).??Operating income on a non-GAAP basis was $19.6 million for the first nine months of 2020 (8.4% margin), compared with $18.6 million in the prior-year period (7.4% margin).
Net income was $6.4 million for the first nine months of 2020, compared with $9.3 million in the prior-year period. Net income per diluted share was $0.18 for the first nine months of 2020, compared with $0.26 in the prior-year period.
Net income on a non-GAAP basis was $14.0 million for the first nine months of 2020, compared with $11.3 million in the prior-year period. Non-GAAP?net?income?per?diluted?share?was $0.40?for?the?first nine months of?2020,?compared?with $0.32?for?the?prior-year?period.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a global leader in air quality and fluid handling serving the energy, industrial and other niche markets. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean and more efficient solutions that help protect our shared environment. In regions around the world, CECO works to improve air quality, optimize the energy value chain and provide custom engineered solutions for applications including oil and gas, power generation, water and wastewater, battery production, poly silicon fabrication, chemical and petrochemical processing along with a range of others. CECO is listed on Nasdaq under the ticker symbol "CECE". For more information, please visit www.cecoenviro.com.
