CECO Environmental : Reports Second Quarter and Six Months 2017 Results

DALLAS, Texas, August 9, 2017 -- CECO Environmental Corp. (Nasdaq: CECE), a leading global energy, environmental, and industrial technology company, today reported its financial results for the second quarter and first six months of 2017.

CECO's Chief Executive Officer Dennis Sadlowski commented, 'The first half of 2017 was challenging and we are not satisfied with our overall results. However, even with the soft power generation and refinery markets, there are clear and compelling signs that our intense customer focus is gaining traction. We have had three consecutive quarters of modest bookings growth, which has been fueled by higher proposal win percentages, and includes several first-time customer wins. All of this suggests that we are gaining market share in support of our quest for organic growth. Notwithstanding, we believe near-term headwinds in a few key markets will continue to create challenges during the remainder of 2017.'

Mr. Sadlowski added, 'As our customers seek growth and expansion, we are increasingly well-suited to help them meet their environmental commitments with clean, safe, and more efficient products, services and solutions throughout their life cycle.'

SECOND QUARTER RESULTS

Revenue in the second quarter of 2017 was $93.9 million, down 16.4% from $112.3 million in the prior-year period.

Operating income was $9.3 million for the second quarter of 2017 (9.9% margin), compared with $8.6 million in the prior-year period (7.7% margin). Operating income on a non-GAAP basis was $9.4 million for the second quarter of 2017 (10.0% margin), compared with $13.0 million in the prior-year period (11.6% margin).

Net income was $5.5 million for the second quarter of 2017, compared with $4.0 million in the prior-year period. Net income on a non-GAAP basis was $2.9 million for the second quarter of 2017, compared with $7.3 million in the prior-year period.

Net income per diluted share was $0.16 for the second quarter of 2017, compared with net income per diluted share of $0.12 in the prior-year period. Non-GAAP net income per diluted share was $0.08 for the second quarter of 2017, compared with $0.21 for the prior-year period.

Cash and cash equivalents were $27.2 million and bank debt was $117.6 million, as of June 30, 2017, compared with $45.8 million and $126.4 million, respectively, as of December 31, 2016.

BACKLOG AND BOOKINGS

Total backlog at June 30, 2017 was $167.9 million as compared with $197.0 million on December 31, 2016, and $224.7 million on June 30, 2016. During the second quarter of 2017, $9.7 million of orders were taken out of backlog due to customer inactivity.

Bookings were $87.2 million for the second quarter of 2017, compared with $108.8 million in the prior-year period. Bookings were $171.2 million for the first six months of 2017 compared with $228.9 million for the prior-year period.

YEAR-TO-DATE RESULTS

Revenue in the first six months of 2017 was $186.5 million, down 13.4% from $215.4 million in the prior-year period.

Operating income was $10.6 million for the first six months of 2017 (5.7% margin), compared with $14.4 million in the prior-year period (6.7% margin). Operating income on a non-GAAP basis was $19.5 million for the first six months of 2017 (10.5% margin), compared with $23.9 million in the prior-year period (11.1% margin).

Net income was $5.5 million for the first six months of 2017, compared with $7.1 million in the prior-year period. Net income on a non-GAAP basis was $9.9 million for the first six months of 2017, compared with $13.4 million in the prior-year period.

Net income per diluted share was $0.16 for the first six months of 2017, compared with net income per diluted share of $0.21 in the prior-year period. Non-GAAP net income per diluted share was $0.29 for the first six months of 2017, compared with $0.39 for the prior-year period.

QUARTERLY DIVIDENDS

On August 7, 2017, CECO's Board of Directors approved a quarterly dividend of $0.075 per share. The dividend will be paid on September 29, 2017 to all stockholders of record on close of business on September 15, 2017. CECO initiated a Dividend Reinvestment Plan ('DRIP') in 2012 that provides for the voluntary reinvestment of dividends by its stockholders.

CONFERENCE CALL

A conference call is scheduled for today at 8:30 a.m. ET to discuss the second 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 1:30 p.m. ET on August 9, 2017 until August 23, 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 13667300.

The live webcast and slides can also be accessed at https://www.cecoenviro.com/events-calendar.

ABOUT CECO ENVIRONMENTAL

CECO is a diversified global provider of leading engineered technologies to the energy, environmental, and fluid handling and filtration industrial segments, targeting specific niche-focused end markets through an attractive asset-light business model. We provide a wide spectrum of products and services including dampers & diverters, cyclonic technology, thermal oxidizers, separation and filtration systems, selective catalytic reduction ('SCR') and selective non-catalytic reduction ('SNCR') systems, scrubbers, dampers and silencers, exhaust systems, fluid handling equipment and plant engineered services and engineered design build fabrication. CECO's products play a vital role in helping companies achieve exacting production standards, meeting increasing plant needs and stringent emissions control regulations around the globe. The company serves a broad range of markets and industries, including power, municipalities, chemical, industrial manufacturing, mid-stream pipeline natural gas transmission, refining, petrochemical, metals, minerals & mining companies, as well as hospitals and universities. 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