[First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%202024%20Performance%20Overview) [First Quarter Financial Highlights](index=1&type=section&id=1.1%20First%20Quarter%20Financial%20Highlights) CECO Environmental reported a 12% revenue increase to $126.3 million, a 40% rise in GAAP operating income, and a 36% increase in Adjusted EBITDA to $13.2 million, with free cash flow significantly improving Q1 2024 Key Financial Metrics | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (%) | | :-------------------- | :----------------- | :----------------- | :--------- | | Revenue | $126.3 | $112.6 | 12% | | Orders | $145.3 | N/A | N/A | | Net Income (GAAP) | $1.5 | $2.0 | -25% | | Net Income (Non-GAAP) | $4.0 | $3.6 | 11% | | GAAP EPS (Diluted) | $0.04 | $0.06 | N/A | | Non-GAAP EPS (Diluted) | $0.11 | $0.10 | N/A | | Adjusted EBITDA | $13.2 | $9.7 | 36% | | Operating Income (GAAP) | $7.7 | $5.5 | 40% | | Operating Income (Non-GAAP) | $10.2 | $7.7 | 32% | | Backlog | $389.5 | N/A | 9% | - Free cash flow significantly improved by **$12.6 million**, moving from **$(14.5) million** in Q1 2023 to **$(1.9) million** in Q1 2024[4](index=4&type=chunk)[7](index=7&type=chunk) [CEO Commentary and Strategic Outlook](index=1&type=section&id=1.2%20CEO%20Commentary%20and%20Strategic%20Outlook) CEO Todd Gleason noted record gross margins, a 1.2 book-to-bill ratio, near-record backlog, and $3 million in stock repurchases, expressing confidence in the sales pipeline and M&A funnel - Achieved **record gross margins**, demonstrating ongoing progress in driving operational excellence programs and steadily advancing and diversifying the overall portfolio[7](index=7&type=chunk) - The **book-to-bill ratio of 1.2** increased the backlog to near-record levels[7](index=7&type=chunk) - Repurchased **$3 million of stock** during the quarter as part of a disciplined capital allocation strategy[7](index=7&type=chunk) - Entered the second quarter with a near-record backlog and the largest, most balanced sales pursuit pipeline, including potentially record-sized energy transition opportunities and a replenished M&A funnel with attractive, strategic, growth businesses[7](index=7&type=chunk) [Full Year 2024 Guidance](index=1&type=section&id=1.3%20Full%20Year%202024%20Guidance) CECO Environmental reaffirmed its 2024 guidance, projecting revenue of $590-$610 million and Adjusted EBITDA of $67-$70 million, supported by a strong sales pipeline 2024 Full Year Guidance | Metric | 2024 Full Year Guidance | YoY Change (Midpoint) | | :---------------- | :---------------------- | :-------------------- | | Revenue | $590 - $610 million | ~10% | | Adjusted EBITDA | $67 - $70 million | ~20% | | Free Cash Flow | 50% - 70% of Adjusted EBITDA | N/A | - The company maintains high conviction in its full-year outlook, supported by a large sales pipeline, energy transition opportunities, and potential M&A additions[8](index=8&type=chunk) [About CECO Environmental](index=2&type=section&id=About%20CECO%20Environmental) [Company Overview](index=2&type=section&id=2.1%20Company%20Overview) CECO Environmental is a leading diversified industrial company providing global solutions for air, industrial water, and energy transition markets since 1966 - CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water, and energy transition markets globally, providing innovative solutions and application expertise[10](index=10&type=chunk) - CECO solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly-engineered applications across various industrial end markets[10](index=10&type=chunk) - Incorporated in **1966**, CECO's global headquarters is in Dallas, Texas, and the company is listed on Nasdaq under the ticker symbol "CECO"[10](index=10&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=4&type=section&id=3.1%20Consolidated%20Statements%20of%20Income) Net sales increased to $126.3 million, gross profit rose to $45.1 million, but net income decreased to $1.5 million, resulting in diluted EPS of $0.04 Consolidated Statements of Income Highlights (Three months ended March 31) | Metric (in thousands) | 2024 | 2023 | YoY Change | | :------------------------------------------ | :----- | :----- | :--------- | | Net sales | $126,332 | $112,563 | +12.2% | | Cost of sales | $81,200 | $77,670 | +4.5% | | Gross profit | $45,132 | $34,893 | +29.3% | | Selling and administrative expenses | $34,908 | $27,193 | +28.4% | | Income from operations | $7,686 | $5,461 | +40.7% | | Net income attributable to CECO Environmental Corp. | $1,508 | $1,978 | -23.8% | | Diluted EPS | $0.04 | $0.06 | -33.3% | [Consolidated Balance Sheets](index=3&type=section&id=3.2%20Consolidated%20Balance%20Sheets) Total assets decreased to $589.0 million, total liabilities to $352.9 million, and shareholders' equity to $236.2 million as of March 31, 2024 Consolidated Balance Sheets Highlights (as of) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Cash and cash equivalents | $46,557 | $54,779 | $(8,222) | | Total current assets | $271,609 | $281,437 | $(9,828) | | Total assets | $589,020 | $600,291 | $(11,271) | | Total current liabilities | $196,310 | $203,106 | $(6,796) | | Total liabilities | $352,868 | $362,800 | $(9,932) | | Total shareholders' equity | $236,152 | $237,491 | $(1,339) | [Consolidated Statements of Cash Flows](index=5&type=section&id=3.3%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved to $1.2 million, while investing cash outflow decreased, and financing cash flow shifted to a $(6.5) million outflow Consolidated Statements of Cash Flows Highlights (Three months ended March 31) | Metric (in thousands) | 2024 | 2023 | Change | | :-------------------------------------------------- | :----- | :------- | :------- | | Net cash provided by (used in) operating activities | $1,224 | $(12,021) | +$13,245 | | Net cash used in investing activities | $(2,694) | $(26,655) | +$23,961 | | Net cash (used in) provided by financing activities | $(6,528) | $34,359 | $(40,887) | | Net decrease in cash, cash equivalents and restricted cash | $(8,420) | $(4,381) | $(4,039) | | Cash, cash equivalents and restricted cash at end of period | $47,028 | $42,204 | +$4,824 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=4.1%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP net income increased to $4.0 million, Adjusted EBITDA rose to $13.2 million, and free cash flow significantly improved to $(1.9) million in Q1 2024 Non-GAAP Net Income and Adjusted EBITDA (Three months ended March 31) | Metric (in millions) | 2024 | 2023 | Change | | :------------------- | :--- | :--- | :----- | | Net income (GAAP) | $1.5 | $2.0 | $(0.5) | | Non-GAAP net income | $4.0 | $3.6 | $0.4 | | Non-GAAP diluted EPS | $0.11 | $0.10 | $0.01 | | Adjusted EBITDA | $13.2 | $9.7 | $3.5 | Non-GAAP Operating Income and Margin (Three months ended March 31) | Metric (in millions, except ratios) | 2024 | 2023 | Change | | :---------------------------------- | :--- | :--- | :----- | | Operating income (GAAP) | $7.7 | $5.5 | $2.2 | | Operating margin (GAAP) | 6.1% | 4.9% | +1.2 pp | | Non-GAAP operating income | $10.2 | $7.7 | $2.5 | | Non-GAAP operating margin | 8.1% | 6.8% | +1.3 pp | Free Cash Flow Reconciliation (Three months ended March 31) | Metric (in millions) | 2024 | 2023 | Change | | :---------------------------------------- | :--- | :---- | :----- | | Net cash provided by operating activities | $1.2 | $(12.0) | +$13.2 | | Acquisitions of property and equipment | $(3.1) | $(2.5) | $(0.6) | | Free cash flow | $(1.9) | $(14.5) | +$12.6 | [Note Regarding Non-GAAP Financial Measures](index=7&type=section&id=4.2%20Note%20Regarding%20Non-GAAP%20Financial%20Measures) Non-GAAP measures offer insight into core operations by excluding specific items, are supplemental to GAAP, have limitations, and forward-looking non-GAAP measures are not reconciled due to unpredictability - Non-GAAP financial measures are provided to help individuals better assess the ongoing nature of CECO's core operations by excluding amounts included in GAAP[21](index=21&type=chunk) - Adjustments to non-GAAP measures typically exclude amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses, acquisition and integration expenses, foreign currency remeasurement, and other nonrecurring or infrequent items[22](index=22&type=chunk) - Non-GAAP financial measures are supplemental to, and not a substitute for, GAAP measures, have limitations, and may not be comparable to similarly titled measures of other companies[28](index=28&type=chunk) - Forward-looking non-GAAP measures were not reconciled to comparable GAAP financial measures because the reconciliation could not be performed without unreasonable efforts due to the unpredictability of certain impacting items[29](index=29&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) [Safe Harbor Statement](index=8&type=section&id=5.1%20Safe%20Harbor%20Statement) This safe harbor statement cautions that forward-looking statements, based on management's views, involve risks and uncertainties that may cause actual results to differ materially - Statements in the Press Release, other than historical fact, are forward-looking statements based on management's views and assumptions regarding future events and business performance[24](index=24&type=chunk) - Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially, including factors such as economic conditions, dependence on fixed-price contracts, supply chain challenges, litigation, fluctuations in raw material prices, inflationary pressures, debt, government regulations, and catastrophic events[24](index=24&type=chunk) - Investors are cautioned not to place undue reliance on such forward-looking statements, and the company undertakes no obligation to update or review them, except as required under federal securities laws[24](index=24&type=chunk)

DALLAS, April 16, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (NASDAQ:CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announced that it will report its first quarter 2024 financial results on April 30, 2024, premarket. The Company will also host its earnings call starting at 8:30 a.m. Eastern Time (7:30 a.m. CT). The Company's financial results and presentation will be posted on its website at www. ...

Topline growth balanced across Air-Water-Energy Strong Backlog Conversion Delivering Double-Digit Y/Y & TTM Growth 11 Q4'23 Backlog* Remains at Record Levels $203 $210 $219 $214 $283 $289 $278 $312 $356 $391 $394$371 $92 $86 $93 $91 $161 $114 $102 $151 $146 $163 $146 $128 $72 $79 $80 $94 $92 $105 $108 $116 $113 $129 $149 $154 $211 $290 $378 Company Record Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Backlog Orders Revenue 2021 2022 2023 1.1x 1.2x 1.1x B2B •Up 19% YoY, ~70%+ conver ...

CECO Environmental Corp. (NASDAQ:CECO) Q4 2023 Earnings Conference Call March 5, 2024 8:30 AM ET Company Participants Steven Hooser - IR Todd Gleason - President & CEO Peter Johansson - Chief Financial & Strategy Officer Conference Call Participants Rob Brown - Lake Street Capital Markets Aaron Spychalla - Craig-Hallum Bobby Brooks - Northland Capital Markets Jim Ricchiuti - Needham and Company Bill Dezellem - Tieton Capital Management Amit Dayal - H.C. Wainwright Operator Good morning, and welcome to the C ...

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, 2023 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. Identification No.) Delaware 13-2566064 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer 14651 North Dallas Parkway Suite 500 Dallas, Texas 75254 (Ad ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Q4 2023 Financial Highlights](index=1&type=section&id=Q4%202023%20Financial%20Highlights) CECO Environmental reported strong fourth-quarter 2023 results, with significant year-over-year growth in revenue, non-GAAP net income, Adjusted EBITDA, and free cash flow, alongside a substantial increase in backlog - Backlog increased by **19%** to **$370.9 million**[18](index=18&type=chunk) - Orders for the quarter were **$128.3 million**[11](index=11&type=chunk) | Metric | Q4 2023 (Millions) | Q4 2022 (Millions) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | | Revenue | $153.7 | $116.4 | +32 | | Net Income (GAAP) | $3.9 | $8.3 | -53 | | Net Income (Non-GAAP) | $10.1 | $7.4 | +36 | | Adjusted EBITDA | $19.4 | $13.0 | +49 | | Free Cash Flow | $12.2 | $9.0 | +36 | | GAAP EPS (Diluted) | $0.11 | $0.24 | -54.17 | | Non-GAAP EPS (Diluted) | $0.28 | $0.21 | +33.33 | [Full Year 2023 Financial Highlights](index=1&type=section&id=Full%20Year%202023%20Financial%20Highlights) For the full year 2023, CECO Environmental achieved record revenues, strong growth in Adjusted EBITDA and free cash flow, and increased orders, reflecting successful operational execution and strategic initiatives - Full year orders increased by **11%** to **$582.8 million**[11](index=11&type=chunk) | Metric | FY 2023 (Millions) | FY 2022 (Millions) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | | Revenue | $544.8 | $422.6 | +29 | | Net Income (GAAP) | $12.9 | $17.4 | -26 | | Net Income (Non-GAAP) | $26.6 | $25.9 | +3 | | Adjusted EBITDA | $57.7 | $42.2 | +37 | | Free Cash Flow | $36.2 | $27.2 | +33 | | GAAP EPS (Diluted) | $0.37 | $0.50 | -26 | | Non-GAAP EPS (Diluted) | $0.75 | $0.74 | +1.35 | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Todd Gleason highlighted the company's successful transformation, record financial performance driven by a balanced portfolio, and sustained growth from organic sales and strategic M&A, along with global expansion - CECO is transforming its portfolio into a leader across industrial air, industrial water, and energy transition markets[2](index=2&type=chunk) - Three acquisitions completed in 2023 are delivering outstanding results[2](index=2&type=chunk) - The operating model produced record-breaking revenues, gross profits, and adjusted EBITDA, along with strong free cash flow[11](index=11&type=chunk) - Growth is sustained by double-digit organic sales increases, supported by accretive M&A execution[11](index=11&type=chunk) - Sustained investment in global footprint and capabilities has improved international sales mix and opened new geographic markets[12](index=12&type=chunk) [Company Overview](index=1&type=section&id=Company%20Overview) [Business Description](index=1&type=section&id=Business%20Description) CECO Environmental is a leading environmentally focused industrial company providing innovative solutions globally across industrial air, industrial water, and energy transition markets - CECO Environmental is a leading environmentally focused, diversified industrial company[4](index=4&type=chunk)[10](index=10&type=chunk) - Serves industrial air, industrial water, and energy transition markets globally, offering innovative solutions and application expertise[4](index=4&type=chunk) - Solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly-engineered applications in various industrial end markets[4](index=4&type=chunk) - Key end markets include power generation, hydrocarbon processing, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals and steel production, beverage can, and water/wastewater treatment[4](index=4&type=chunk) - CECO is listed on Nasdaq under the ticker symbol 'CECO,' incorporated in 1966, with global headquarters in Dallas, Texas[4](index=4&type=chunk) [Strategic Initiatives](index=1&type=section&id=Strategic%20Initiatives) CECO is actively transforming its portfolio and expanding its global presence through strategic acquisitions and investments to strengthen its leadership in key environmental and industrial markets - CECO is mindfully transforming its portfolio to be a well-positioned leader across industrial air, industrial water, and the energy transition[2](index=2&type=chunk) - Completed three acquisitions in 2023, which are delivering outstanding results in strategically focused niche markets[2](index=2&type=chunk) - Sustained investment to expand global footprint and capabilities has improved international sales mix and opened new geographic markets[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of CECO Environmental's financial position at December 31, 2023, compared to December 31, 2022, detailing assets, liabilities, and shareholders' equity | (dollars in thousands) | 2023 | 2022 | | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :------ | :------ | | **ASSETS** | | | | Cash and cash equivalents | $54,779 | $45,522 | | Accounts receivable, net | 112,733 | 83,086 | | Total current assets | 281,437 | 240,658 | | Goodwill | 211,326 | 183,197 | | Total assets | $600,291| $504,721| | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Current portion of debt | $10,488 | $3,579 | | Accounts payable | 87,691 | 73,407 | | Total current liabilities | 203,106 | 146,700 | | Debt, less current portion | 126,795 | 107,625 | | Total liabilities | 362,800 | 286,573 | | Total shareholders' equity | 237,491 | 218,148 | | Total liabilities and shareholders' equity | $600,291| $504,721| [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income present CECO Environmental's financial performance for the three months and year ended December 31, 2023, compared to the prior year, highlighting revenue, gross profit, operating income, and net income | (in thousands, except share and per share data) | Three months ended December 31, 2023 | Three months ended December 31, 2022 | Year ended December 31, 2023 | Year ended December 31, 2022 | | :---------------------------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------- | :--------------------------- | | Net sales | $153,711 | $116,402 | $544,845 | $422,627 | | Cost of sales | 100,526 | 78,706 | 373,829 | 294,402 | | Gross profit | 53,185 | 37,696 | 171,016 | 128,225 | | Selling and administrative expenses | 36,862 | 26,667 | 122,944 | 93,473 | | Income from operations | 12,652 | 8,438 | 34,569 | 22,161 | | Interest expense | (3,918) | (1,930) | (13,416) | (5,419) | | Income before income taxes | 9,776 | 10,701 | 21,525 | 23,689 | | Income tax expense | 5,447 | 2,139 | 7,024 | 5,426 | | Net income | 4,329 | 8,562 | 14,501 | 18,263 | | Net income attributable to CECO Environmental Corp. | $3,879 | $8,295 | $12,911 | $17,417 | | Diluted EPS | $0.11 | $0.24 | $0.37 | $0.50 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows detail the cash generated and used by CECO Environmental's operating, investing, and financing activities for the years ended December 31, 2023 and 2022 | (dollars in thousands) | Year ended December 31, 2023 | Year ended December 31, 2022 | | :----------------------------------------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $44,647 | $29,649 | | Net cash used in investing activities | $(56,486) | $(48,257) | | Net cash provided by (used in) financing activities | $21,144 | $38,176 | | Effect of exchange rate changes on cash and cash equivalents | $(442) | $(4,978) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $8,863 | $14,590 | | Cash, cash equivalents and restricted cash at end of year | $55,448 | $46,585 | | Cash paid for Interest | $12,098 | $5,007 | | Cash paid for Income taxes | $9,916 | $5,378 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Purpose](index=10&type=section&id=Definition%20and%20Purpose) CECO Environmental uses non-GAAP financial measures to provide a clearer view of its core operations by excluding certain non-recurring or non-operational items, aiding in period-over-period comparisons - Non-GAAP measures exclude items such as amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses, acquisition and integration expenses, foreign currency remeasurement, and other nonrecurring or infrequent items[8](index=8&type=chunk) - Management believes these exclusions provide additional information for better comparison of the Company's results over multiple periods and for evaluating ongoing financial performance[8](index=8&type=chunk) - These figures are considered helpful in allowing individuals to better assess the ongoing nature of CECO's core operations[25](index=25&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Reconciliations are provided for key non-GAAP metrics, including free cash flow, non-GAAP net income, Adjusted EBITDA, and non-GAAP operating income, to their most directly comparable GAAP financial measures for both quarterly and full-year periods Free Cash Flow Reconciliation (in millions) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net cash provided by operating activities | $15.1 | $10.0 | $44.6 | $29.6 | | Acquisitions of property and equipment | (2.9) | (1.0) | (8.4) | (3.4) | | Free cash flow | $12.2 | $9.0 | $36.2 | $27.2 | Non-GAAP Net Income and Adjusted EBITDA Reconciliation (in millions) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net income (GAAP) | $3.9 | $8.3 | $12.9 | $17.4 | | Amortization and earnout expenses | 2.2 | 1.9 | 8.2 | 6.8 | | Acquisition and integration expenses | 0.3 | 0.7 | 2.5 | 4.5 | | Restructuring expenses | 1.1 | — | 1.3 | 0.1 | | Tax benefit (expense) of adjustments | 3.6 | 0.3 | 1.2 | (2.8) | | Non-GAAP net income | $10.1 | $7.4 | $26.6 | $25.9 | | Adjusted EBITDA | $19.4 | $13.0 | $57.7 | $42.2 | Non-GAAP Operating Income Reconciliation (in millions) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Operating income (GAAP) | $12.7 | $8.4 | $34.6 | $22.2 | | Amortization and earnout expenses | 2.2 | 1.9 | 8.2 | 6.8 | | Acquisition and integration expenses | 0.3 | 0.7 | 2.5 | 4.5 | | Restructuring expenses | 1.1 | — | 1.3 | 0.1 | | Non-GAAP operating income | $16.3 | $11.0 | $48.1 | $34.8 | [Limitations of Non-GAAP Measures](index=10&type=section&id=Limitations%20of%20Non-GAAP%20Measures) CECO emphasizes that non-GAAP financial measures are supplemental, not substitutes for GAAP, and may not fully reflect all business costs or be comparable to other companies' metrics. Forward-looking non-GAAP measures are not reconciled to GAAP due to inherent unpredictability - Non-GAAP financial measures are not calculated in accordance with GAAP and should be considered supplemental, not as a substitute for or superior to GAAP measures[35](index=35&type=chunk) - These measures have limitations as they do not reflect all costs associated with the operations of the business as determined in accordance with GAAP[35](index=35&type=chunk) - Non-GAAP financial measures used by CECO may not be comparable to similarly titled measures of other companies[35](index=35&type=chunk) - Forward-looking non-GAAP measures are not reconciled to comparable GAAP financial measures due to the inability to predict certain impacting items with reasonable certainty without unreasonable efforts[9](index=9&type=chunk) [Financial Outlook & Guidance](index=3&type=section&id=Financial%20Outlook%20%26%20Guidance) [2024 Full Year Guidance](index=3&type=section&id=2024%20Full%20Year%20Guidance) CECO Environmental has raised its full-year 2024 guidance for revenue and Adjusted EBITDA, while reaffirming its free cash flow outlook, driven by a strong backlog and operational excellence Updated 2024 Full Year Guidance | Metric | Previous Guidance (Millions) | Updated Guidance (Millions) | YoY Growth (Midpoint) | | :-------------- | :--------------------------- | :-------------------------- | :-------------------- | | Revenue | $575 to $600 | $590 to $610 | ~10% | | Adjusted EBITDA | $65 to $70 | $67 to $70 | ~19% | | Free Cash Flow | 50% to 70% of Adjusted EBITDA | 50% to 70% of Adjusted EBITDA | Reaffirmed | - The updated outlook reflects expectations based on a tremendous backlog, commercial and operational excellence programs, which are expected to drive robust organic growth and further operating margin expansion[20](index=20&type=chunk) - A healthy balance sheet provides optionality for internal growth programs and potential accretive M&A opportunities to advance leadership positions[20](index=20&type=chunk) [Investor Information](index=4&type=section&id=Investor%20Information) [Earnings Conference Call Details](index=4&type=section&id=Earnings%20Conference%20Call%20Details) Details for the conference call to discuss fourth quarter and full year 2023 financial results, including access information and replay availability - A conference call was scheduled for March 5, 2024, at 8:30 a.m. ET to discuss the financial results[13](index=13&type=chunk) - The call can be accessed via webcast on the Investor Relations portion of the company's website (https://investors.cecoenviro.com) or directly at https://edge.media-server.com/mmc/p/7wfof7nx[13](index=13&type=chunk) - A replay of the conference call will be available on the Company's website for one year[30](index=30&type=chunk) [Investor Relations Contact](index=4&type=section&id=Investor%20Relations%20Contact) Contact information for CECO Environmental's Chief Financial and Strategy Officer and external Investor Relations representatives - Company Contact: Peter Johansson, Chief Financial and Strategy Officer, **888-990-6670**, investor.relations@onececo.com[4](index=4&type=chunk) - Investor Relations Contact: Steven Hooser and Jean Marie Young, Three Part Advisors, LLC, **214-872-2710**, investor.relations@onececo.com[14](index=14&type=chunk) [Forward-Looking Statements & Safe Harbor](index=11&type=section&id=Forward-Looking%20Statements%20%26%20Safe%20Harbor) [Forward-Looking Statements & Risk Factors](index=11&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines the nature of forward-looking statements within the report, emphasizing that actual results may differ materially due to various risks and uncertainties, and cautions investors against undue reliance - Statements in the press release, other than historical facts, are forward-looking statements, identified by words such as 'believe,' 'expect,' 'anticipate,' 'intends,' 'estimate,' 'forecast,' 'project,' 'will,' 'plan,' 'should' and similar expressions[27](index=27&type=chunk) - Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance, or achievements expressed or implied[27](index=27&type=chunk) - Potential risks include sensitivity to economic and financial market conditions, dependence on fixed price contracts, effects of growth, ability to expand operations, contract delays or cancellations due to supply chain issues, liabilities from faulty services/products, litigation, fluctuations in material prices, inflationary pressures, debt, government regulations, share repurchases, restructuring program success, M&A integration, and catastrophic events[27](index=27&type=chunk) - Investors are cautioned not to place undue reliance on such forward-looking statements, and the company undertakes no obligation to update or review them, except as required by federal securities laws[27](index=27&type=chunk)

DALLAS, Feb. 19, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announced that it will report its fourth quarter and full year 2023 financial results on March 5, 2024, premarket and will also host a webcast and conference call at 8:30 a.m. Eastern Time. The Company’s financial results and presentation will be posted on its website at www.cecoenv ...

DALLAS, Feb. 19, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (NASDAQ:CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announced that it will report its fourth quarter and full year 2023 financial results on March 5, 2024, premarket and will also host a webcast and conference call at 8:30 a.m. Eastern Time. The Company's financial results and presentation will be posted on its website at www.cecoenvi ...

Financial Data and Key Metrics Changes - CECO reported record revenues of approximately $149 million for Q3 2023, representing a 38% year-over-year growth and the highest quarterly sales in company history [16][63] - The trailing 12-month revenue reached $508 million, a 27% increase compared to the previous 12-month period [34] - Adjusted EBITDA for Q3 2023 was $15.1 million, a 64% increase year-over-year, with an adjusted EBITDA margin of 10.1%, up 160 basis points from the prior year [36][79] - Free cash flow generated in Q3 was approximately $28.5 million, following $10 million in Q2, marking a significant recovery from a negative cash flow in Q1 2023 [49][87] - The company raised its full-year 2023 revenue guidance to a range of $525 million to $550 million, indicating a 25% increase at the midpoint year-over-year [25][57] Business Line Data and Key Metrics Changes - CECO's orders for Q3 2023 totaled approximately $145 million, marking the fifth highest quarterly bookings level in company history [15][31] - The company has maintained a book-to-bill ratio of approximately 1.2x over the past 12 months, supporting a record backlog of $394 million, which is a 42% increase year-over-year [44][81] - The industrial water segment has grown to represent nearly one-third of CECO's overall business mix, highlighting a strategic shift since 2020 [52] Market Data and Key Metrics Changes - CECO's sales pipeline has expanded to approximately $3 billion, more than double the size from 2020 [44] - The company is experiencing strong demand in various end markets, including industrial air and energy transition sectors, driven by global infrastructure investments and regulatory changes [75][116] Company Strategy and Development Direction - CECO is focused on long-term sustainable performance and has raised its full-year guidance multiple times throughout 2023, indicating confidence in future growth [6][5] - The company is actively pursuing programmatic M&A to enhance its market position and expand its service offerings [90][132] - Investments in new technologies and operational upgrades are being prioritized to improve efficiency and customer service [14][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining growth in 2024, forecasting revenue between $575 million and $600 million, representing approximately 10% growth [28][57] - The company is well-positioned to capitalize on government investments and market dynamics related to the energy transition [58][137] - Management emphasized the importance of maintaining a balanced approach to growth, focusing on both organic and acquisition-driven strategies [112][134] Other Important Information - CECO's cash position at the end of Q3 was $48.5 million, with net borrowings of approximately $31 million to support growth investments [71][72] - The company is committed to maintaining a leverage ratio below its credit facility limits, with gross debt at $135.5 million [72][88] Q&A Session Summary Question: What are the expectations for EBITDA margins as growth continues? - Management indicated a long-term target for EBITDA margins in the mid-teens, driven by double-digit top-line growth and operational efficiencies [100] Question: How is the current interest rate environment affecting deal structuring? - Management acknowledged that while higher interest rates make deals more expensive, strong free cash flow generation will help manage debt and interest expenses [107][125] Question: What is the outlook for bookings and project timing in 2024? - Management expects a balanced distribution of bookings throughout the year, with no significant seasonal effects anticipated [122]

| --- | --- | |-----------------------------------------------------------------------------|-------| | (in thousands) | | | Current assets (including accounts receivable, net of $2,467) | $ | | Property and equipment | | | Intangible - finite life | | | Goodwill | | | Total assets acquired | | | Current liabilities assumed | | | Deferred income tax liability | | | Net assets acquired | $ | During the three and nine months ended September 30, 2023, Wakefield accounted for $4.8 million and $10.3 million in r ...