) declared its first quarter 2013 results. The company reported
an adjusted net income of 18 cent per share, beating Zacks
Consensus Estimate of 15 cents per share by 20%. Earnings were
also up 38.5% year over year, as compared with 13 cents in the
first quarter of 2012. However, GAAP net income per share
remained flat year over year at 12 cents.
The company reported net sales of $34.4 million, up 4.07% year
over year from $33.0 million in the year-earlier
quarter. This increase in sales was primarily attributable
to the 19.7% growth in revenue in the Engineered Equipment
Technology and Parts Group (EET&P). This was partially offset
by a 41.8% decrease in the Contracting/Services Group (C/S). New
Order Bookings were up 22.5% annually to $37.6 million. The
increased bookings resulted mainly from the company's recent
Engineered Equipment Technology and Parts Group
) net sales increased by $4.1 million or by 19.6% to $25.0
million compared with $20.9 million in the same quarter last
year. This increase is mainly attributable to CECO's recent
acquisitions of Adwest and Aarding along with a revenue increase
from China operations. However, this was partially offset by a
$2.2 million decrease in revenues from the Fisher-Klosterman
division. Operating income from the group increased 30.3% year
Contracting / Services Group
) reported net sales of $4.1 million during the quarter compared
with $7.1 million in the same period of 2012. The year-over-year
decrease was a result of the decline in volume during the
quarter. Operating income also dipped to $0.6 million compared
with $1.1 million in the year-ago quarter.
Component Parts Group
) net sales were flat at $5.1 million. However, operating income
for the quarter reduced marginally to $0.9 million compared with
$1.1 million in the first quarter of 2012. This was due to
increased competitive pricing pressure faced by the company in
Income and Expense
Gross profit increased by 9.8% to $11.2 million in the quarter
compared with $10.2 million in 2012. Selling and administrative
expenses were marginally up by 4.8% during the quarter. However,
acquisition related expenses totaled $1.1 million related to the
Aarding acquisition and Met-Pro transaction.
As on March 31, 2013, the balance of cash and cash equivalents
were $6.9 million with a long-term debt of $0.8 million.
Interest expense was low at $97,000 in the quarter from
$271,000 in the first quarter of 2012. The decrease resulted from
the continued conversion of CECO's subordinated debt into equity
since the first quarter of 2012. All the remaining notes were
converted in 2012.
CECO, which is among the prominent air-pollution control
technology products and services, currently has a Zacks Rank #1
(Strong Buy). Other industry participants worth mentioning
include Calgon Carbon (
), Fuel-Tech, Inc.(
) and Industrial Services of America, Inc. (
), all having Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
FUEL TECH INC (FTEK): Free Stock Analysis
INDUSTRIAL SVCS (IDSA): Free Stock Analysis
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