DALLAS, Nov. 8, 2017 /PRNewswire/ -- 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 first nine months of 2017.
Highlights of the Third Quarter 2017*
- Revenue of $85.0 million,
compared with $101.6 million
- Gross profit of $27.1 million
(31.9% margin), compared with $33.7
million (33.2% margin)
- Non-GAAP gross profit of $27.3
million (32.1% margin) compared with $33.9 million (33.4% margin)
- Operating income of $5.6 million
compared with $10.5 million
- Non-GAAP operating income of $5.3
million compared with $14.4
million
- Net income was $3.0 million,
compared with $5.8 million
- Non-GAAP net income of $1.2
million, compared with $8.2
million
- Net income per diluted share was $0.09, compared with $0.17
- Non-GAAP net income per diluted share of $0.03, compared with $0.24
- Adjusted EBITDA of $6.9 million,
compared with $16.2 million
- Bookings of $71.0
million
- Backlog of $153.9 million
* All comparisons are versus the comparable prior-year
period.
CECO's Chief Executive Officer Dennis
Sadlowski commented, "The third quarter of 2017 presented
continued challenges, including soft volume throughout the quarter
that led to disappointing results. Our served energy markets
are experiencing notable headwinds that we expect to continue into
2018. However, even with soft power generation and refinery
markets, we picked up key wins in those segments and our team
remains committed to market share penetration."
Mr. Sadlowski added, "We also concluded our strategic plan
assessment and have made several decisions together with our Board
to transform the business to win market share and create
value. We are implementing a restructuring program during the
fourth quarter to reduce costs by approximately $5-7 million per annum, and refocusing our
portfolio including exiting non-core and low critical mass
products. We also recently modified our debt covenants to
allow for flexibility to invest in a tough market cycle.
Additionally, our Board agreed to suspend the current quarterly
dividend so that cash can be used towards investment for growth in
people, systems and customer focused product innovation.
While we are not pleased with our results and the current state of
our core end-markets, we are committed to implementing the
necessary steps to transform the Company to once again realize
increasing profits and generating returns for all of our
stakeholders."
THIRD QUARTER RESULTS
Revenue in the third quarter of 2017 was $85.0 million, down 16.3% from $101.6 million in the prior-year period.
Operating income was $5.6 million
for the third quarter of 2017 (6.6% margin), compared with
$10.5 million in the prior-year
period (10.3% margin). Operating income on a non-GAAP basis
was $5.3 million for the third
quarter of 2017 (6.2% margin), compared with $14.4 million in the prior-year period (14.2%
margin).
Net income was $3.0 million for
the third quarter of 2017, compared with $5.8 million in the prior-year period. Net
income on a non-GAAP basis was $1.2
million for the third quarter of 2017, compared with
$8.2 million in the prior-year
period.
Net income per diluted share was $0.09 for the third quarter of 2017, compared
with net income per diluted share of $0.17 in the prior-year period. Non-GAAP net
income per diluted share was $0.03
for the third quarter of 2017, compared with $0.24 for the prior-year period.
Cash and cash equivalents were $24.6
million and bank debt was $119.5
million, as of September 30, 2017, compared with
$45.8 million and $126.4 million, respectively, as of December 31, 2016.
BACKLOG AND BOOKINGS
Total backlog at September 30, 2017 was $153.9 million as compared with $197.0 million on December
31, 2016, and $219.3 million
on September 30, 2016.
Bookings were $71.0 million for
the third quarter of 2017, compared with $96.2 million in the prior-year period.
Bookings were $242.2 million for the
first nine months of 2017 compared with $325.1 million for the prior-year period.
YEAR-TO-DATE RESULTS
Revenue in the first nine months of 2017 was $271.5 million, down 14.4% from $317.0 million in the prior-year period.
Operating income was $16.2 million
for the first nine months of 2017 (6.0% margin), compared with
$24.9 million in the prior-year
period (7.9% margin). Operating income on a non-GAAP basis
was $24.8 million for the first nine
months of 2017 (9.1% margin), compared with $38.2 million in the prior-year period (12.1%
margin).
Net income was $8.6 million for
the first nine months of 2017, compared with $12.9 million in the prior-year period. Net
income on a non-GAAP basis was $11.2
million for the first nine months of 2017, compared with
$21.5 million in the prior-year
period.
Net income per diluted share was $0.25 for the first nine months of 2017, compared
with net income per diluted share of $0.38 in the prior-year period. Non-GAAP net
income per diluted share was $0.32
for the first nine months of 2017, compared with $0.63 for the prior-year period.
QUARTERLY DIVIDENDS
On November 6, 2017, CECO's Board
of Directors reviewed the Company's dividend policy and determined
that it would be in the best interest of the stockholders to
discontinue quarterly cash dividends.
CONFERENCE CALL
A conference call is scheduled for today at 8:30 a.m. ET to discuss the third quarter 2017
results. The conference call may be accessed by dialing
+1.877.407.3982 (Toll-Free) in the U.S. and Canada or by dialing +1.201.493.6780 for
international calls. A replay will be available from
11:30 a.m. ET on November 8, 2017 until November 22, 2017 at 11:59
p.m. ET. The replay may be accessed by dialing
+1.844.512.2921 (Toll-Free) in the U.S. and Canada or by dialing +1.412.317.6671 for
international calls and entering passcode 13672530.
The live webcast and slides can also be accessed at
https://www.cecoenviro.com/events-calendar.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a global leader in air quality and fluid
handling serving the energy, industrial and other niche markets
through an attractive asset-light business model. CECO
provides innovative technology and application expertise that helps
companies grow their businesses with safe, clean, and more
efficient solutions to help protect our shared environment.
CECO serves both established and emerging industries in regions
around the world working to improve air quality, optimize the
energy value chain, and provide customized engineered solutions in
multiple applications that include oil and gas, power generation,
water and wastewater, battery production, poly silicon fabrication,
chemical and petrochem processing, along with a wide range of
others. CECO targets its $5 billion+ of installed base,
specifically to expand and grow a higher recurring revenue of
aftermarket products and services. CECO is listed on Nasdaq under
the ticker symbol "CECE." For more information, please visit
http://www.cecoenviro.com/.
Contact:
Matthew Eckl, Chief Financial
Officer
800.333.5475
investor.relations@onececo.com
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(dollars in
thousands, except per share data)
|
|
(unaudited)
SEPTEMBER 30, 2017
|
|
|
DECEMBER 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,567
|
|
|
$
|
45,824
|
|
Restricted
cash
|
|
|
873
|
|
|
|
1,498
|
|
Accounts receivable,
net
|
|
|
70,504
|
|
|
|
83,062
|
|
Costs and estimated
earnings in excess of billings on uncompleted contracts
|
|
|
39,964
|
|
|
|
38,123
|
|
Inventories,
net
|
|
|
21,750
|
|
|
|
21,487
|
|
Prepaid expenses and
other current assets
|
|
|
12,984
|
|
|
|
13,560
|
|
Prepaid income
taxes
|
|
|
1,300
|
|
|
|
1,590
|
|
Assets held for
sale
|
|
|
8,001
|
|
|
|
7,834
|
|
Total current
assets
|
|
|
179,943
|
|
|
|
212,978
|
|
Property, plant and
equipment, net
|
|
|
24,667
|
|
|
|
27,270
|
|
Goodwill
|
|
|
171,239
|
|
|
|
170,153
|
|
Intangible
assets-finite life, net
|
|
|
52,749
|
|
|
|
60,728
|
|
Intangible
assets-indefinite life
|
|
|
22,381
|
|
|
|
22,042
|
|
Deferred charges and
other assets
|
|
|
4,564
|
|
|
|
5,463
|
|
|
|
$
|
455,543
|
|
|
$
|
498,634
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
9,645
|
|
|
$
|
8,827
|
|
Accounts payable and
accrued expenses
|
|
|
77,655
|
|
|
|
95,610
|
|
Billings in excess of
costs and estimated earnings on uncompleted contracts
|
|
|
21,038
|
|
|
|
35,085
|
|
Note
payable
|
|
|
5,300
|
|
|
|
5,300
|
|
Income taxes
payable
|
|
|
924
|
|
|
|
1,536
|
|
Total current
liabilities
|
|
|
114,562
|
|
|
|
146,358
|
|
Other
liabilities
|
|
|
23,873
|
|
|
|
34,864
|
|
Debt, less current
portion
|
|
|
107,287
|
|
|
|
114,366
|
|
Deferred income tax
liability, net
|
|
|
12,754
|
|
|
|
12,964
|
|
Total
liabilities
|
|
|
258,476
|
|
|
|
308,552
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $.01
par value; 10,000 shares authorized, none issued
|
|
|
—
|
|
|
|
—
|
|
Common stock, $.01 par
value; 100,000,000 shares authorized, 34,699,316 and
34,300,209 shares issued at
September 30, 2017 and December 31, 2016, respectively
|
|
|
347
|
|
|
|
343
|
|
Capital in excess of
par value
|
|
|
247,601
|
|
|
|
244,878
|
|
Accumulated
loss
|
|
|
(41,079)
|
|
|
|
(41,741)
|
|
Accumulated other
comprehensive loss
|
|
|
(9,446)
|
|
|
|
(13,042)
|
|
|
|
|
197,423
|
|
|
|
190,438
|
|
Less treasury stock,
at cost, 137,920 shares at September 30, 2017 and December 31,
2016
|
|
|
(356)
|
|
|
|
(356)
|
|
Total shareholders'
equity
|
|
|
197,067
|
|
|
|
190,082
|
|
|
|
$
|
455,543
|
|
|
$
|
498,634
|
|
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
|
THREE MONTHS
ENDED SEPTEMBER 30,
|
|
|
NINE MONTHS
ENDED
SEPTEMBER 30,
|
|
(dollars in
thousands, except per share data)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net sales
|
|
$
|
84,987
|
|
|
$
|
101,596
|
|
|
$
|
271,508
|
|
|
$
|
317,029
|
|
Cost of
sales
|
|
|
57,854
|
|
|
|
67,920
|
|
|
|
183,960
|
|
|
|
217,837
|
|
Gross
profit
|
|
|
27,133
|
|
|
|
33,676
|
|
|
|
87,548
|
|
|
|
99,192
|
|
Selling and
administrative expenses
|
|
|
21,958
|
|
|
|
19,549
|
|
|
|
66,690
|
|
|
|
60,625
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
163
|
|
|
|
—
|
|
|
|
524
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(455)
|
|
|
|
3,465
|
|
|
|
4,623
|
|
|
|
13,176
|
|
Income from
operations
|
|
|
5,630
|
|
|
|
10,499
|
|
|
|
16,235
|
|
|
|
24,867
|
|
Other (expense)
income, net
|
|
|
(110)
|
|
|
|
14
|
|
|
|
141
|
|
|
|
395
|
|
Interest
expense
|
|
|
(1,595)
|
|
|
|
(1,913)
|
|
|
|
(4,951)
|
|
|
|
(5,995)
|
|
Income before income
taxes
|
|
|
3,925
|
|
|
|
8,600
|
|
|
|
11,425
|
|
|
|
19,267
|
|
Income tax
expense
|
|
|
889
|
|
|
|
2,774
|
|
|
|
2,865
|
|
|
|
6,349
|
|
Net income
|
|
$
|
3,036
|
|
|
$
|
5,826
|
|
|
$
|
8,560
|
|
|
$
|
12,918
|
|
Net income (loss)
attributable to noncontrolling interest
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
(36)
|
|
Net income
attributable to CECO Environmental Corp.
|
|
$
|
3,036
|
|
|
$
|
5,804
|
|
|
$
|
8,560
|
|
|
$
|
12,954
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.17
|
|
|
$
|
0.25
|
|
|
$
|
0.38
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
0.17
|
|
|
$
|
0.25
|
|
|
$
|
0.38
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,518,622
|
|
|
|
33,983,708
|
|
|
|
34,403,720
|
|
|
|
33,952,768
|
|
Diluted
|
|
|
34,621,883
|
|
|
|
34,354,687
|
|
|
|
34,665,053
|
|
|
|
34,211,067
|
|
CECO ENVIRONMENTAL
CORP. AND SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
|
|
|
Three Months
Ended September 30,
|
|
|
Nine Months
Ended September 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Gross profit as
reported in accordance with GAAP
|
|
$
|
27.1
|
|
|
$
|
33.7
|
|
|
$
|
87.5
|
|
|
$
|
99.2
|
|
Gross profit margin
in accordance with GAAP
|
|
|
31.9
|
%
|
|
|
33.2
|
%
|
|
|
32.2
|
%
|
|
|
31.3
|
%
|
Legacy design
repairs
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
0.5
|
|
Non-GAAP gross
profit
|
|
$
|
27.3
|
|
|
$
|
33.9
|
|
|
$
|
90.0
|
|
|
$
|
99.8
|
|
Non-GAAP gross
profit margin
|
|
|
32.1
|
%
|
|
|
33.4
|
%
|
|
|
33.1
|
%
|
|
|
31.5
|
%
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Operating income as
reported in accordance with GAAP
|
|
$
|
5.6
|
|
|
$
|
10.5
|
|
|
$
|
16.2
|
|
|
$
|
24.9
|
|
Operating margin in
accordance with GAAP
|
|
|
6.6
|
%
|
|
|
10.3
|
%
|
|
|
6.0
|
%
|
|
|
7.9
|
%
|
Legacy design
repairs
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
0.5
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.0)
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
0.5
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(0.5)
|
|
|
|
3.5
|
|
|
|
4.6
|
|
|
|
13.2
|
|
Executive transition
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
—
|
|
Facility exit
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
Non-GAAP operating
income
|
|
$
|
5.3
|
|
|
$
|
14.4
|
|
|
$
|
24.8
|
|
|
$
|
38.2
|
|
Non-GAAP operating
margin
|
|
|
6.2
|
%
|
|
|
14.2
|
%
|
|
|
9.1
|
%
|
|
|
12.1
|
%
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
(dollars in
millions)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net income as
reported in accordance with GAAP
|
|
$
|
3.0
|
|
|
$
|
5.8
|
|
|
$
|
8.6
|
|
|
$
|
12.9
|
|
Legacy design
repairs
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
Inventory valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Plant, property and
equipment valuation adjustment
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
0.5
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.0)
|
|
Acquisition and
integration expenses
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
0.5
|
|
Amortization and
earn-out (income) expenses, net
|
|
|
(0.5)
|
|
|
|
3.5
|
|
|
|
4.6
|
|
|
|
13.2
|
|
Executive transition
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
—
|
|
Facility exit
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
Foreign currency
remeasurement
|
|
|
(0.5)
|
|
|
|
(0.2)
|
|
|
|
(2.0)
|
|
|
|
(0.6)
|
|
Tax benefit of
adjustments
|
|
|
(1.0)
|
|
|
|
(1.3)
|
|
|
|
(4.0)
|
|
|
|
(4.1)
|
|
Non-GAAP net
income
|
|
$
|
1.2
|
|
|
$
|
8.2
|
|
|
$
|
11.2
|
|
|
$
|
21.5
|
|
Depreciation
|
|
|
1.0
|
|
|
|
1.2
|
|
|
|
3.0
|
|
|
|
3.4
|
|
Non-cash stock
compensation (excluding executive transition costs)
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
1.8
|
|
|
|
1.7
|
|
Other (income) /
expense
|
|
|
0.6
|
|
|
|
0.2
|
|
|
|
1.8
|
|
|
|
0.2
|
|
Gain on insurance
settlement
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.0
|
|
Interest
expense
|
|
|
1.6
|
|
|
|
1.9
|
|
|
|
5.0
|
|
|
|
6.0
|
|
Income tax
expense
|
|
|
1.9
|
|
|
|
4.1
|
|
|
|
6.9
|
|
|
|
10.5
|
|
Adjusted
EBITDA
|
|
$
|
6.9
|
|
|
$
|
16.2
|
|
|
$
|
29.7
|
|
|
$
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.17
|
|
|
$
|
0.25
|
|
|
$
|
0.38
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
0.17
|
|
|
$
|
0.25
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
|
$
|
0.24
|
|
|
$
|
0.33
|
|
|
$
|
0.63
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.24
|
|
|
$
|
0.32
|
|
|
$
|
0.63
|
|
NOTE REGARDING NON-GAAP FINANCIAL
MEASURES
CECO is providing certain non-GAAP historical financial measures
as presented above as the Company believes that these figures are
helpful in allowing individuals to better assess the ongoing nature
of CECO's core operations. A "non-GAAP financial measure" is a
numerical measure of a company's historical financial performance
that excludes amounts that are included in the most directly
comparable measure calculated and presented in the GAAP statement
of operations.
Non-GAAP gross profit, Non-GAAP operating income, non-GAAP net
income, non-GAAP gross profit margin, non-GAAP operating margin,
non-GAAP earnings per basic and diluted share and adjusted EBITDA,
as we present them in the financial data included in this press
release, have been adjusted to exclude the effects of expenses
related to legacy design repairs, inventory valuation adjustments,
property, plant and equipment valuation adjustments, gains from
insurance settlements, acquisition and integration expense
activities including retention, legal, accounting, banking,
amortization and contingent earn-out expenses, foreign currency
re-measurement, intangible asset impairment, legal reserves,
executive transition expenses, facility exit expenses, other
nonrecurring or infrequent items and the associated tax benefit of
these items. Management believes that these items are not
necessarily indicative of the Company's ongoing operations and
their exclusion provides individuals with additional information to
compare the Company's results over multiple periods.
Management utilizes this information to evaluate its ongoing
financial performance. Our financial statements may continue to be
affected by items similar to those excluded in the non-GAAP
adjustments described above, and exclusion of these items from our
non-GAAP financial measures should not be construed as an inference
that all such costs are unusual or infrequent.
Non-GAAP gross profit, non-GAAP operating income, non-GAAP net
income, non-GAAP gross profit margin, non-GAAP operating margin,
non-GAAP earnings per basic and diluted share, adjusted EBITDA,
adjusted EBITDA margin, adjusted free cash flow and adjusted net
free cash flow are not calculated in accordance with GAAP, and
should be considered supplemental to, and not as a substitute for,
or superior to, financial measures calculated in accordance with
GAAP. Non-GAAP financial measures have limitations in that they do
not reflect all of the costs associated with the operations of our
business as determined in accordance with GAAP. As a result, you
should not consider these measures in isolation or as a substitute
for analysis of CECO's results as reported under GAAP.
Additionally, CECO cautions investors that non-GAAP financial
measures used by the Company may not be comparable to similarly
titles measures of other companies.
In accordance with the requirements of Regulation G issued by
the Securities and Exchange Commission, non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income, non-GAAP gross
profit margin, non-GAAP operating margin, non-GAAP earnings per
basic and diluted share, adjusted EBITDA, adjusted EBITDA margin,
adjusted free cash flow and adjusted net free cash flow stated in
the tables above present the most directly comparable GAAP
financial measure and reconcile to the most directly comparable
GAAP financial measures. Adjusted free cash flow and adjusted
net free cash flow have limitations due to the fact that they do
not represent the residual cash flow available for discretionary
expenditures since they do not take into account debt service
requirements or other non-discretionary expenditures that are not
deducted from these measures.
SAFE HARBOR
Any statements contained in this press release other than
statements of historical fact, including statements about
management's beliefs and expectations, are forward-looking
statements and should be evaluated as such. These statements are
made on the basis of management's views and assumptions regarding
future events and business performance. Words such as "estimate,"
"believe," "forecast", "anticipate," "expect," "intend," "plan,"
"target," "project," "should," "may," "will" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements (including oral representations) involve
risks and uncertainties that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such statements. These risks and
uncertainties include, but are not limited to: our ability to
successfully realize the expected benefits of our restructuring
program; our ability to successfully integrate acquired businesses
and realize the synergies from acquisitions, as well as a number of
factors related to our business including economic and financial
market conditions generally and economic conditions in CECO's
service areas; dependence on fixed price contracts and the risks
associated therewith, including actual costs exceeding estimates
and method of accounting for contract revenue; fluctuations in
operating results from period to period due to cyclicality or
seasonality of the business; the effect of growth on CECO's
infrastructure, resources, and existing sales; the ability to
expand operations in both new and existing markets; the potential
for contract delay or cancellation; liabilities arising from faulty
services or products that could result in significant professional
or product liability, warranty, or other claims; changes in or
developments with respect to any litigation or investigation;
failure to meet timely completion or performance standards that
could result in higher cost and reduced profits or, in some cases,
losses on projects; the potential for fluctuations in prices for
manufactured components and raw materials; the substantial amount
of debt incurred in connection with our acquisitions and our
ability to repay or refinance it or incur additional debt in the
future; the impact of federal, state or local government
regulations; economic and political conditions generally; and the
effect of competition in the environmental, energy and fluid
handling and filtration industries. These and other risks and
uncertainties are discussed in more detail in CECO's filings with
the Securities and Exchange Commission, including our reports on
Form 10-K and Form 10-Q. Many of these risks are beyond
management's ability to control or predict. 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. Investors are cautioned not to place
undue reliance on such forward-looking statements as they speak
only to our views as of the date the statement is made. All
forward-looking statements attributable to CECO or persons acting
on behalf of CECO are expressly qualified in their entirety by the
cautionary statements and risk factors contained in this press
release and CECO's respective filings with the Securities and
Exchange Commission. Furthermore, forward-looking statements speak
only as of the date they are made. Except as required under the
federal securities laws or the rules and regulations of the
Securities and Exchange Commission, CECO undertakes no obligation
to update or review any forward-looking statements, whether as a
result of new information, future events or otherwise.
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SOURCE CECO Environmental Corp.