Share prices of
CECO Environmental Corp.
) increased 13.6% to close at $18.64 on Mar 7 after the company
declared its fourth-quarter and full-year 2013 results on Mar 6.
The company reported adjusted net income of 26 cents per share,
beating the Zacks Consensus Estimate of 20 cents per share by
30%. Earnings were also up 44.4% year over year, compared with 18
cents in the fourth quarter of 2012.
For full-year 2013, the company reported adjusted earnings of
98 cents per share, reflecting a year-over-year increase of 50.8%
from the earnings of 65 cents in 2012.
The growth in earnings was driven by the company's persistent
focus on diligent operational execution and its cost optimization
initiatives. The company is also streamlining its business by
divesting some of its non-core businesses.
The company reported net sales of $68.7 million, up 100.2%
year over year from $34.3 million in the year-earlier quarter.
This increase in sales was primarily driven by successful
integration of the company's recent acquisitions like the
Aarding, Adwest and Met-Pro Corporation. These acquisitions
contributed as much as $34.3 million to the quarter's revenues,
out of which $23.3 million is attributable to sales in Met-Pro.
However, revenues fell short of the Zacks Consensus Estimate of
New order bookings were up 154% annually to $66.8 million in
the quarter. For 2013, the new order bookings were at $199.2
million compared with $139.7 million in 2012.
Backlog at the end of the year was $98.5 million, a
significant increase from the 2012 figure of $59.5 million.
However, the backlog decreased slightly from $100.4 million in
the third quarter of 2013. The company's acquisitions contributed
as much as $37.1 million to backlog.
Income and Expense
Gross profit increased by 92% to $21.5 million in the quarter
compared with $11.2 million in the prior-year quarter. Selling
and administrative expenses were $13.1 million during the
quarter, up about 95.5%. Acquisition-related expenses totaled
$0.6 million in the quarter.
Exiting the year, the balance of cash and cash equivalents was
$22.7 million, a decrease from $23.0 million in the prior year.
The company had a debt (excluding current portion) of $79
million. The company had no bank debt in 2012.
Interest expenses increased to $0.8 million in the quarter
from $0.3 million in the prior-year quarter.
The company's board of directors has approved a dividend of 5
cents a share payable on Mar 31, to shareholders of record on Mar
The company remains positive about the scope of growth in
2014. It's 'One-CECO' sales initiative is expected to drive up
the company's profits going forward. Moreover, CECO's
strengthening position in China is encouraging.
CECO currently carries a Zacks Rank #3 (Hold).
Performance of Some Other Stocks in the Pollution
Calgon Carbon Corporation
) reported fourth-quarter 2013 earnings of 20 cents per share
compared with 16 cents per share in the year-ago quarter. The
quarterly results beat the Zacks Consensus Estimate by a
Tetra Tech Inc
) reported fiscal first-quarter 2014 earnings of 42 cents per
share, beating the Zacks Consensus Estimate of 38 cents. Earnings
increased 2.4% from the prior-year figure of 41 cents a
) reported fiscal second-quarter 2014 (ended Jan 31, 2014) pro
forma earnings of 82 cents a share, 2.5% above the Zacks
Consensus Estimate of 80 cents. Earnings for the quarter also
beat the prior-year quarter's earnings of 73 cents a share by
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PALL CORP (PLL): Free Stock Analysis Report
TETRA TECH NEW (TTEK): Free Stock Analysis
To read this article on Zacks.com click here.