UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.01 per share CECE The NASDAQ Stock Market LLC FORM 10-Q (Mark one) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securit ...

CECO Environmental Corp (CECE) Q2 2021 Earnings Conference Call August 3, 2021 8:30 AM ET Company Participants Steven Hooser - IR Todd Gleason - CEO & Director Matthew Eckl - CFO Conference Call Participants Amit Dayal - H.C. Wainwright & Co. Tate Sullivan - Maxim Group Tyler Bailey - Needham William Dezellem - Tieton Capital Management Operator Good morning and welcome to the CECO Environmental Second Quarter 2021 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Ste ...

Q2'21 Earnings Release August 3, 2021 CECC Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-07099 CECO ENVIRONMENTAL CORP. (Exact name of registrant as specified in its charter) Delaware 13-2566064 (State or other jurisdiction ...

16th Annual Needham Virtual Technology & Media Conference May 18, 2021 1 Forward Looking Statement and Non-GAAP Information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and simi ...

CECO Environmental Corp. (CECE) Q1 2021 Earnings Conference Call May 6, 2021 8:30 AM ET Company Participants Matt Eckl - Chief Financial Officer Todd Gleason - Chief Executive Officer Conference Call Participants Sameer Joshi - H.C. Wainwright Bill Dezellem - Tieton Capital Operator Good morning, ladies and gentlemen, and welcome to the CECO Environmental Q1 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opp ...

Q1'21 Earnings Call May 6th, 2021 CECCO 1 Forward-Looking Statements and Non-GAAP Information This presentation contains forward-looking statements with predictions, projections and other statements about future events. These statements are made on the basis of management's views and assumptions regarding future events and business performance. We use words such as "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "plan," "should" and similar expressions to identify fo ...

Financial Performance - Net sales for Q1 2021 decreased by $8.6 million, or 10.7%, to $71.9 million compared to $80.5 million in Q1 2020, primarily due to COVID-19 impacts on global demand [97]. - Gross profit for Q1 2021 decreased by $3.9 million, or 13.7%, to $24.4 million, with a gross profit margin of 33.9% compared to 35.2% in Q1 2020 [99]. - Operating income for Q1 2021 decreased by $1.1 million to $3.1 million, with a non-GAAP operating income of $5.0 million compared to $6.3 million in Q1 2020 [103]. - Engineered Systems segment net sales decreased by $8.5 million to $42.1 million in Q1 2021, primarily due to COVID-19 effects on demand [110]. - Industrial Process Solutions segment net sales remained consistent at $29.8 million in Q1 2021, with increases in VOC abatement solutions offsetting declines in other areas [112]. Expenses and Cost Management - Selling and administrative expenses decreased to $19.5 million in Q1 2021 from $22.0 million in Q1 2020, reflecting proactive cost reduction measures [101]. - Operating income for the Industrial Process Solutions segment increased by $0.7 million to $3.8 million in Q1 2021, attributed to reduced selling and administrative expenses [113]. - Interest expense decreased to $0.7 million in Q1 2021 from $1.0 million in Q1 2020, due to a reduced debt balance [104]. - Operating expenses for the Corporate and Other segment decreased by $0.4 million to $7.0 million in Q1 2021 compared to $7.4 million in Q1 2020 [114]. Tax and Financial Ratios - The effective income tax rate for Q1 2021 was 29.8%, higher than the 18.6% rate in Q1 2020, influenced by various permanent differences [105]. Backlog and Orders - Orders booked in Q1 2021 increased to $92.1 million from $75.7 million in Q1 2020, driven by growth in electric vehicle production and other end markets [100]. - Backlog increased to $203.1 million as of March 31, 2021, up from $183.1 million as of December 31, 2020, indicating a growth of approximately 10.9% [115]. Cash Flow and Working Capital - Net cash provided by operating activities was $9.9 million for the three months ended March 31, 2021, compared to $7.0 million in the prior year, a year-over-year increase of $2.9 million [128]. - Net cash used in investing activities was $42,000 for the three months ended March 31, 2021, compared to $(976,000) in the prior year [130]. - Net cash used in financing activities was $(4.2) million for the three months ended March 31, 2021, a decrease of $46.5 million compared to $42.3 million provided in the prior year [131]. - Working capital was $75.4 million as of March 31, 2021, compared to $74.1 million at December 31, 2020, reflecting an increase of 1.8% [120]. - Cash and cash equivalents totaled $40.9 million as of March 31, 2021, up from $36.0 million at December 31, 2020 [121]. Debt and Credit Facilities - Total outstanding borrowings under the Credit Facility decreased to $69.4 million as of March 31, 2021, from $72.6 million at December 31, 2020 [122]. - The carrying value of the Company's long-term debt was $70.6 million at March 31, 2021 [139]. - Total unused credit availability under the existing Credit Facility was $107.1 million as of March 31, 2021, compared to $104.7 million at December 31, 2020 [125].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-7099 CECO ENVIRONMENTAL CORP. Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.01 p ...

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements show decreased net sales and income, with improved operating cash flow and increased total assets [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$422.1 million** by September 30, 2020, driven by acquisitions, while liabilities and equity also saw slight increases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $44,537 | $35,602 | | Accounts receivable, net | $58,274 | $68,434 | | Goodwill | $161,352 | $152,020 | | **Total assets** | **$422,090** | **$408,637** | | **Liabilities & Equity** | | | | Total current liabilities | $110,035 | $115,188 | | Debt, less current portion | $73,626 | $63,001 | | **Total liabilities** | **$220,494** | **$215,620** | | **Total shareholders' equity** | **$201,596** | **$193,017** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $0.2 million** in Q3 2020 on **$77.4 million** net sales, reflecting a decline from the prior year Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2020 | Q3 2019 | 9 Months 2020 | 9 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $77,425 | $85,266 | $233,081 | $252,456 | | Gross profit | $24,810 | $28,777 | $78,905 | $84,056 | | Income from operations | $1,018 | $4,059 | $9,651 | $10,965 | | Net (loss) income attributable to CECO | $(239) | $1,931 | $6,431 | $9,310 | | Diluted (Loss) earnings per share | $(0.01) | $0.05 | $0.18 | $0.26 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$9.1 million** for the nine months ended September 30, 2020, despite increased investing activities Cash Flow Summary (in thousands) | Activity | Nine months ended Sep 30, 2020 | Nine months ended Sep 30, 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $9,115 | $(633) | | Net cash used in investing activities | $(8,165) | $(3,237) | | Net cash provided by (used in) financing activities | $7,783 | $(9,881) | | **Net increase (decrease) in cash** | **$9,390** | **$(14,199)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the impact of COVID-19, recent acquisitions, debt structure, ongoing legal contingencies, and varied segment performance - The company acquired 100% of Environmental Integrated Solutions (EIS) for **$10.3 million** in cash on June 4, 2020. This acquisition added **$7.0 million** in goodwill and **$4.8 million** in finite-life intangible assets[72](index=72&type=chunk)[73](index=73&type=chunk) - On July 31, 2020, the company entered into a joint venture with Mader Holdings L.P., contributing its Effox-Flextor damper business. CECO holds a **70% equity** and **50% voting interest** and consolidates the entity. The transaction added **$2.0 million** in goodwill[75](index=75&type=chunk)[77](index=77&type=chunk) - As of September 30, 2020, **201 asbestos-related cases** were pending against the company's subsidiary, Met-Pro. Cumulative settlement payments since 2002 total **$3.1 million**, with insurers covering **$2.9 million**. Management believes its insurance coverage is adequate and the cases will not have a material adverse impact[65](index=65&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) Segment Net Sales (in thousands) | Segment | Q3 2020 | Q3 2019 | 9 Months 2020 | 9 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Energy Solutions | $49,709 | $48,847 | $149,429 | $154,606 | | Industrial Solutions | $18,716 | $26,983 | $55,736 | $65,920 | | Fluid Handling Solutions | $9,000 | $9,436 | $27,916 | $31,930 | Segment Income from Operations (in thousands) | Segment | Q3 2020 | Q3 2019 | 9 Months 2020 | 9 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Energy Solutions | $7,276 | $7,633 | $24,479 | $23,275 | | Industrial Solutions | $101 | $2,794 | $1,593 | $3,911 | | Fluid Handling Solutions | $1,438 | $818 | $4,878 | $4,657 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of COVID-19 on sales and profitability, highlighting cost reduction measures, improved liquidity, and a decrease in backlog - The company has taken proactive cost reduction measures in response to COVID-19, including headcount reductions, lower discretionary spending, temporary salary reductions for senior management, and a temporary furlough for U.S. employees[97](index=97&type=chunk) - On July 6, 2020, Todd Gleason became the new Chief Executive Officer, succeeding Dennis Sadlowski. The company incurred **$1.5 million** in executive transition expenses in Q3 2020 related to this change[100](index=100&type=chunk)[106](index=106&type=chunk) [Consolidated Results of Operations](index=21&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net sales declined in Q3 2020 and the first nine months due to market weakness, impacting gross margin and non-GAAP operating income - Orders booked were **$66.8 million** in Q3 2020, a significant decrease from **$115.7 million** in Q3 2019, primarily due to the impact of the COVID-19 pandemic on refinery, midstream oil and gas, and pollution control end markets[110](index=110&type=chunk) Reconciliation of GAAP to Non-GAAP Operating Income (in millions) | Metric | Q3 2020 | Q3 2019 | 9 Months 2020 | 9 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Operating income (GAAP)** | **$1.0** | **$4.1** | **$9.7** | **$11.0** | | Operating margin (GAAP) | 1.3% | 4.8% | 4.2% | 4.4% | | Amortization & earnout | $2.1 | $2.2 | $5.5 | $6.5 | | Restructuring expenses | $0.9 | $0.7 | $1.8 | $1.0 | | Acquisition & integration | $0.4 | $— | $1.1 | $— | | Executive transition | $1.5 | $— | $1.5 | $— | | **Non-GAAP operating income** | **$5.9** | **$7.0** | **$19.6** | **$18.6** | | Non-GAAP operating margin | 7.6% | 8.2% | 8.4% | 7.4% | [Business Segments Analysis](index=24&type=section&id=Business%20Segments%20Analysis) Segment performance varied in Q3 2020, with Energy Solutions sales up but income down, Industrial Solutions sales and income significantly lower, and Fluid Handling Solutions improving income despite lower sales - Energy Solutions Q3 sales increased due to strength in SCR and acoustical technologies for power generation, offset by a **$5.1 million** decrease in midstream oil & gas equipment sales[124](index=124&type=chunk) - Industrial Solutions Q3 sales decreased primarily due to a **$13.7 million** drop in air pollution control technologies, partially offset by **$5.3 million** in sales from the new EIS acquisition[127](index=127&type=chunk) - Fluid Handling Solutions Q3 operating income increased by **$0.6 million** despite lower sales, driven by cost reductions and improved efficiency from capital investments[132](index=132&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with increased working capital and cash, despite higher debt from acquisitions, maintaining compliance with debt covenants - Backlog decreased to **$189.1 million** as of September 30, 2020, from **$216.6 million** as of December 31, 2019, reflecting lower order intake and **$7.4 million** in order cancellations from industrial customers exposed to aerospace end markets[136](index=136&type=chunk) - Cash flow from operations improved by **$9.7 million** year-over-year for the first nine months of 2020, primarily due to better accounts receivable management and collections[149](index=149&type=chunk) Total Unused Credit Availability (in millions) | Description | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Credit Facility, revolving loans | $140.0 | $140.0 | | Draw down | $(31.0) | $(18.5) | | Letters of credit open | $(6.9) | $(11.0) | | **Amount available based on borrowing limitations** | **$75.8** | **$82.3** | [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on its debt, with a **$0.2 million** estimated annual impact from a 10% rate change - The company's primary market risk exposure is to interest rate changes on its **$77.9 million** of debt[156](index=156&type=chunk)[157](index=157&type=chunk) - A hypothetical **10% change** in the estimated weighted average borrowing rate at September 30, 2020, would impact earnings and cash flows by an estimated **$0.2 million** annually[157](index=157&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control over financial reporting - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2020[161](index=161&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q3 2020 that materially affected, or are reasonably likely to materially affect, these controls[162](index=162&type=chunk) Part II [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, primarily asbestos-related lawsuits, with details referenced in Note 13 of the financial statements - For information regarding legal proceedings, the report refers to Note 13 of the Condensed Consolidated Financial Statements[165](index=165&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to previous filings, including the 2019 Form 10-K - No material changes in risk factors were reported compared to the 2019 Form 10-K and previous 2020 Form 10-Q filings[166](index=166&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO agreements and officer certifications - Key exhibits filed include the Separation and Consulting Agreement with former CEO Dennis Sadlowski and the Employment Agreement with new CEO Todd Gleason[174](index=174&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to SEC rules are included as exhibits[175](index=175&type=chunk)