CECO Environmental Corp. Files Q2 2024 10-Q
Ticker: CECO · Form: 10-Q · Filed: Jul 30, 2024 · CIK: 3197
Sentiment: neutral
Topics: 10-Q, financials, operations, credit-agreement
TL;DR
CECO's Q2 10-Q is in. Financials and operations detailed. Check credit and pension plans.
AI Summary
CECO Environmental Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial figures and segment performance are presented, along with information regarding credit agreements and pension plans.
Why It Matters
This filing provides investors with a detailed look at CECO's financial health and operational performance during the second quarter of 2024, impacting investment decisions.
Risk Assessment
Risk Level: medium — The filing contains standard financial reporting for a public company, including details on credit agreements and segment performance, which can introduce medium-level investment risk.
Key Numbers
- 2024-06-30 — Period End Date (Financial reporting period)
- 2024-01-01 — Period Start Date (Financial reporting period)
- 2023-04-01 — Prior Year Quarter Start (Comparative financial data)
- 2023-06-30 — Prior Year Quarter End (Comparative financial data)
- 2022-12-31 — Prior Year End (Retained Earnings reference)
Key Players & Entities
- CECO ENVIRONMENTAL CORP (company) — Filer
- 20240630 (date) — Period of Report
- 20240730 (date) — Filing Date
- DALLAS (location) — Business Address City
- CINCINNATI (location) — Mail Address City
- KemcoSystemsCoLlcMember (company) — Subsidiary/Member
- EngineeredSystemsMember (segment) — Operating Segment
FAQ
What is the primary business of CECO Environmental Corp.?
CECO Environmental Corp. is involved in industrial & commercial fans & blowers & air purifying equipment, as indicated by its SIC code 3564.
What period does this 10-Q filing cover?
This 10-Q filing covers the period ending June 30, 2024.
What is CECO's corporate structure mentioned in the filing?
The filing mentions CECO Environmental Corp. and a member entity named KemcoSystemsCoLlcMember.
Are there any specific operating segments highlighted?
Yes, the filing references 'EngineeredSystemsMember' as an operating segment.
What financial instruments or agreements are mentioned?
The filing mentions 'CreditAgreementMember' and 'SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember', indicating financial agreements and interest rate references.
Filing Stats: 4,573 words · 18 min read · ~15 pages · Grade level 14.7 · Accepted 2024-07-30 16:09:40
Key Financial Figures
- $0.01 — ch registered Common Stock, par value $0.01 per share CECO The NASDAQ Stock Mar
Filing Documents
- ceco-20240630.htm (10-Q) — 2064KB
- ceco-ex31_1.htm (EX-31.1) — 10KB
- ceco-ex31_2.htm (EX-31.2) — 10KB
- ceco-ex32_1.htm (EX-32.1) — 6KB
- ceco-ex32_2.htm (EX-32.2) — 6KB
- img58591874_0.jpg (GRAPHIC) — 2KB
- 0000950170-24-087850.txt ( ) — 8948KB
- ceco-20240630.xsd (EX-101.SCH) — 1167KB
- ceco-20240630_htm.xml (XML) — 1705KB
Financial Statements
Item 1. Financial Statements 2 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Shareholders' Equity for the six months ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20
Quantitative and Qualitative Disclosures about Market Risk
Item 3. Quantitative and Qualitative Disclosures about Market Risk 27
Controls and Procedures
Item 4. Controls and Procedures 28 Part II – Other Information 30
Legal Proceedings
Item 1. Legal Proceedings 30
Risk Factors
Item 1A. Risk Factors 30
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 30
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 30
Other Information
Item 5. Other Information 30
Exhibits
Item 6. Exhibits 31
Signatures
Signatures 32 1 CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES
– FINANC IAL INFORMATION
PART I – FINANC IAL INFORMATION
FINANC IAL STATEMENTS
ITEM 1. FINANC IAL STATEMENTS CONDENSED CONSOLIDA TED BALANCE SHEETS (in thousands, except per share data) (unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 36,523 $ 54,779 Restricted cash 391 669 Accounts receivable, net allowances of $ 6,582 and $ 6,460 126,974 112,733 Costs and estimated earnings in excess of billings on uncompleted contracts 55,378 66,574 Inventories, net 38,475 34,089 Prepaid expenses and other current assets 20,414 11,769 Prepaid income taxes 3,215 824 Total current assets 281,370 281,437 Property, plant and equipment, net 30,290 26,237 Right-of-use assets from operating leases 14,137 16,256 Goodwill 211,144 211,326 Intangible assets – finite life, net 46,086 50,461 Intangible assets – indefinite life 9,522 9,570 Deferred income taxes 263 304 Deferred charges and other assets 5,321 4,700 Total assets $ 598,133 $ 600,291 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of debt $ 10,580 $ 10,488 Accounts payable 90,944 87,691 Accrued expenses 44,736 44,301 Billings in excess of costs and estimated earnings on uncompleted contracts 59,851 56,899 Notes payable — 2,500 Income taxes payable 1,212 1,227 Total current liabilities 207,323 203,106 Other liabilities 11,196 12,644 Debt, less current portion 120,246 126,795 Deferred income tax liability, net 9,949 8,838 Operating lease liabilities 9,607 11,417 Total liabilities 358,321 362,800 Commitments and contingencies (See Note 14) Shareholders' equity: Preferred stock, $ .01 par value; 10,000 shares authorized, none issued — — Common stock, $ .01 par value; 100,000,000 shares authorized, 34,923,701 and 34,835,293 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 349 348 Capital in excess o