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GLV Inc, Canada
COMPANY WATCH
Ceco Environmental Corp, USA
GLV Inc, Canada
Key Figures (US$ million) Second quarter ended 30.6 2012
2011
Net Sales
34.6
32.5
Cost of Sales
24.0
23.8
Gross Profit
10.5
Operating Income
Key Figures (C$ million) First quarter ended 30.6 2012
2011
147.5
150.4
8.7
Revenues Of Which: Ovivo Pulp & Paper
85.5 54.2
89.5 51.3
4.3
2.8
Cost of Contracts and Goods Sold
113.5
118.4
Income before Tax
4.0
2.9
Gross Profit
34.0
32.0
Net Income
2.5
2.0
5.0
4.0
Six months ended 30.6 2012
2011
EBITDA Of Which: Ovivo Pulp &Paper
3.1 4.2
3.5 2.2
Net Sales
67.6
68.5
Net Earnings/(Loss)
(5.5)
(4.1)
Cost of Sales
46.9
51.3
Gross Profit
20.7
17.2
Operating Income
8.0
5.3
Income before Tax
7.4
5.0
Net Income
4.5
3.2
COMMENT COMMENT Air pollution control manufacturer Ceco Environmental has posted net sales for the second quarter of fiscal 2012 of US$34.6 million, an increase of 6.5% on the year earlier. Net income was also up, increasing 25.0% to US$2.5 million. In contrast, results for the corresponding six month saw net sales 1.3% easier at US$67.6 million, although net income was 40.6% higher at US$4.5 million. “We are very pleased with the results that Ceco achieved in the second quarter as the company continued to realise improving margins, profitability and bookings,” Ceco’s CEO, Jeff Lang, said. “Of particular importance, the company’s increased bookings momentum from our North America and global customers in the second quarter has continued in the current quarter. We expect this increase in bookings to continue to generate improving results throughout 2012.”
September 2012
The company made good gains in profitability for the period compared with a year earlier. Gross profit increased 20.7% to US$10.5 million, with the associated gross margin increasing to 30.3% from 26.8%. Similarly, operating income registered a 53.6% year-on-year uplift to US$4.3 million with the operating margin increasing to 12.4% from 2011’s 8.6%. Order activity was also stronger with bookings increasing 22% on a year ago to US$40.9 million, while the backlog at period end was up 7.3% at US$58.9 million. Since the end of the quarter, Ceco has announced several new orders totalling US$9.8 million that have come from the chemical industry in China as well as power, natural gas, chemical, refining and steel customers in the USA. ■ www.cecoenviro.com
GLV has posted revenues of C$147.5 million for the first quarter of fiscal 2012, a decrease of 1.9% on the year earlier. Sales in the company’s water treatment segment Ovivo were down 4.5% on a year earlier at C$85.5 million, while Pulp & Paper revenues were 5.7% stronger at C$54.2 million. EBITDA for Ovivo was down 11.4% at C$3.1 million, while it was up 90.9% to C$4.2 in the Pulp & Paper division. The company said Ovivo’s performance was hampered in the quarter by a low initial backlog, as well as lower sales volume in the electronics and metals market. The Pulp and Paper segment’s operating results for the period showed a sharp improvement over the previous fiscal year, mainly due to a higher backlog entering the period. GLV posted an overall net loss for the period of C$5.5 million, down from a loss of C$4.1 million recorded in the 2011 period. The decline, which came despite higher overall EBITDA and lower
amortisation costs, stemmed primarily from foreign exchange losses and higher income tax expenses. Towards the end of the quarter GLV announced changes to the Ovivo leadership team and changes to its business strategy. This repositioning will reduce the workforce by approximately 10% for all of the group’s subsidiaries, generating annual savings of about C$8 million. Related restructuring costs, mainly comprising severance payments, are estimated at approximately C$4 million and will be recognised in the coming quarters of the current fiscal year. “GLV is undergoing a major shift during this quarter with the announcement to refocus its water treatment operations, targeting four promising markets,” the company’s president and CEO, Richard Verreault, said. “I’m confident that this repositioning will spearhead a return to sustained profitability for the corporation, and its long-term development. ■ www.glv.com
Filtration Industry Analyst
9
Ceco Environmental Corp, USA
GLV Inc, Canada
Key Figures (US$ million) Second quarter ended 30.6 2012
2011
Net Sales
34.6
32.5
Cost of Sales
24.0
23.8
Gross Profit
10.5
Operating Income
Key Figures (C$ million) First quarter ended 30.6 2012
2011
147.5
150.4
8.7
Revenues Of Which: Ovivo Pulp & Paper
85.5 54.2
89.5 51.3
4.3
2.8
Cost of Contracts and Goods Sold
113.5
118.4
Income before Tax
4.0
2.9
Gross Profit
34.0
32.0
Net Income
2.5
2.0
5.0
4.0
Six months ended 30.6 2012
2011
EBITDA Of Which: Ovivo Pulp &Paper
3.1 4.2
3.5 2.2
Net Sales
67.6
68.5
Net Earnings/(Loss)
(5.5)
(4.1)
Cost of Sales
46.9
51.3
Gross Profit
20.7
17.2
Operating Income
8.0
5.3
Income before Tax
7.4
5.0
Net Income
4.5
3.2
COMMENT COMMENT Air pollution control manufacturer Ceco Environmental has posted net sales for the second quarter of fiscal 2012 of US$34.6 million, an increase of 6.5% on the year earlier. Net income was also up, increasing 25.0% to US$2.5 million. In contrast, results for the corresponding six month saw net sales 1.3% easier at US$67.6 million, although net income was 40.6% higher at US$4.5 million. “We are very pleased with the results that Ceco achieved in the second quarter as the company continued to realise improving margins, profitability and bookings,” Ceco’s CEO, Jeff Lang, said. “Of particular importance, the company’s increased bookings momentum from our North America and global customers in the second quarter has continued in the current quarter. We expect this increase in bookings to continue to generate improving results throughout 2012.”
September 2012
The company made good gains in profitability for the period compared with a year earlier. Gross profit increased 20.7% to US$10.5 million, with the associated gross margin increasing to 30.3% from 26.8%. Similarly, operating income registered a 53.6% year-on-year uplift to US$4.3 million with the operating margin increasing to 12.4% from 2011’s 8.6%. Order activity was also stronger with bookings increasing 22% on a year ago to US$40.9 million, while the backlog at period end was up 7.3% at US$58.9 million. Since the end of the quarter, Ceco has announced several new orders totalling US$9.8 million that have come from the chemical industry in China as well as power, natural gas, chemical, refining and steel customers in the USA. ■ www.cecoenviro.com
GLV has posted revenues of C$147.5 million for the first quarter of fiscal 2012, a decrease of 1.9% on the year earlier. Sales in the company’s water treatment segment Ovivo were down 4.5% on a year earlier at C$85.5 million, while Pulp & Paper revenues were 5.7% stronger at C$54.2 million. EBITDA for Ovivo was down 11.4% at C$3.1 million, while it was up 90.9% to C$4.2 in the Pulp & Paper division. The company said Ovivo’s performance was hampered in the quarter by a low initial backlog, as well as lower sales volume in the electronics and metals market. The Pulp and Paper segment’s operating results for the period showed a sharp improvement over the previous fiscal year, mainly due to a higher backlog entering the period. GLV posted an overall net loss for the period of C$5.5 million, down from a loss of C$4.1 million recorded in the 2011 period. The decline, which came despite higher overall EBITDA and lower
amortisation costs, stemmed primarily from foreign exchange losses and higher income tax expenses. Towards the end of the quarter GLV announced changes to the Ovivo leadership team and changes to its business strategy. This repositioning will reduce the workforce by approximately 10% for all of the group’s subsidiaries, generating annual savings of about C$8 million. Related restructuring costs, mainly comprising severance payments, are estimated at approximately C$4 million and will be recognised in the coming quarters of the current fiscal year. “GLV is undergoing a major shift during this quarter with the announcement to refocus its water treatment operations, targeting four promising markets,” the company’s president and CEO, Richard Verreault, said. “I’m confident that this repositioning will spearhead a return to sustained profitability for the corporation, and its long-term development. ■ www.glv.com
Filtration Industry Analyst
9