CECO Environmental(US:CECO)2021-05-05 16:00Financial 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].