- CECO Environmental Corp CECE reported third-quarter revenue of $79.97 million, an increase of 3.3% year-over-year, missing the consensus of $81.3 million.
- Adjusted EPS decreased to $0.01 from $0.11 in 3Q20, missing the consensus of $0.11
- The gross margin contracted by 360 bps to 28.4%. The adjusted operating income decreased to $1.8 million from $5.6 million a year ago, while the corresponding margin contracted by 530 bps to 2.3%.
- Adjusted EBITDA was $3.5 million, compared to $7.3 million in 3Q20, and margin contracted by 505 bps to 4.4%.
- Bookings improved 39% to $92.6 million, compared with $66.8 million last year. The backlog was $219.1 million, compared with $183.1 million as of December 31, 2020.
- Bank Debt of $67 million, compared with $74 million as of December 31, 2020. The company held $34.5 million in cash and equivalents as of September 30, 2021.
- The company repurchased ~521,000 shares of common stock at $3.7 million during the quarter.
- "Unfortunately, in the third quarter, we could not overcome challenges associated with lower-margin projects booked in late 2020, various short-term execution issues associated with supply chain and logistics costs, customer delays, and labor shortages," said CEO Todd Gleason.
- "As the fourth quarter continues to progress, we are confident we will achieve improved volumes and margins, which we expect to result in revenues up double-digits and adjusted EBITDA to more than double sequentially from the third quarter," Gleason added.
- CECO also announced that Richard F. Wallman, former CFO of Honeywell International Inc HON, has joined the company's board of directors.
- Price Action: CECE shares are trading lower by 3.62% at $7.23 on the last check Monday.
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