CECE - Earnings call transcript Q4 2017 | CECO Environmental Corp.

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Operator

Good morning, and welcome to the CECO Environmental Corp. Conference Call. All participants will be in listen-only mode. [Operator Instructions]. I would now like to turn the conference over to Matt Eckl, Chief Financial Officer. ahead. go Please

Matt Eckl

joining XXXX for the Environmental CECO Thank call. us quarter conference fourth you on

On is call Eckl, the today Chief and Executive Financial Matt Officer; Officer. Dennis Sadlowski, Chief

Actual have on materially or through vary by guide or also our the materials cecoenviro.com. The I'd note like uncertainties. our we XX-K Before along be The and the certain can discussion. read result section from statements. statements publicly forward-looking encourage financial slide our may obligation any filings earnings no results by year we help that presentation implied presentation, December call begin, on we the risks Investor to Relations presentation XXXX. provided you webcast, to accessed with will future SEC Form expressed caution the website. our We Except investors required estimates that to statements be forward-looking here not forward-looking a revise at presentation to the XX, laws, are extent Today's I for ended future statements in would undertake to to to in the based measures. those on the or we information, events facts whether and new to described update as made like of are of subject of make today, Any regarding include a references otherwise. will that securities non-GAAP applicable a also historical certain risks are and based Such statements. of today's number are expectations forward-looking presentation website statements. on

the the tables release and call And non-GAAP I'll slide in to turn as the the comparable well in numbers We of GAAP today's Dennis. have over now, the deck. back press supplemental as reconciled

Dennis Sadlowski

discussed actions, choices our go which off we aggressive tough kick summarizing challenges, faced Thanks to begun show company, will some and I quarter's that on Matt made actions aimed fourth fourth quarter have I results that down financial thoughts and most details path. go call strategy positive will specifics to by the good last achieved morning. I significant at into we our and and XXXX our review overall call results quarter full already returns. forward want then on we results will today's some and the year undertook have offering for regarding add the and already as transforming the XXXX. then

clear was to quarter non-GAAP did that Turning the drop $X.X is off to with and fourth a also it CECO struggle declined to XX% $XX.X as million year-over-year. about Slide million declined to of Revenue XX%. XXXX. X, in income Correspondingly it continued throughout operating

in quarter. positive the point to On is quarters book-to-bill time represents our a ratio the is inflection seven during the This it first increased $XX our million where than greater side, X. orders fourth because significant

For year XX% year. faced was these which $XXX all Clearly unexpected at the CECO the total XXXX, results down million, throughout disappointing, from our not were was that the given but challenges revenue XXXX.

and capacity investments. foresaw serve year, utilization of experienced years. in generation the steeper The strong downturns. reached niche their demand refinery the as increasingly in maximize into end in that we couple downturn First off a the continued lows the cyclone cyclical power after refinery maintenance we markets and historical Coming segment FCC operators to oil downturn gas deferred

bottomed slump and out we now seeing that recovering. indications may Fortunately, have is are this

and pockets of the continues through of XXXX and hand, should challenge industrial there because gas at outlook growth general other the the and did dampened [hardened] be which will for have the positive. segment, On projects. new to in construction We demand major oil least near-term segments power and continue mid-XXXX retrofit a mainstream generation achieve

these of to financial aging processes. and investments our XXXX, provisions we in both an and transparent of adjustments determining to by projects, each in financial in performance and a The along taken a write-down. receivables several dormant disciplined use segments. the of In impairment internal backlog. legacy firm and [charges] liability couple The We with goodwill are active against significant XXXX undertaken earnout also with moving also assure we adjustments aggressively market during year’s reduction removal standards reported orders the a backlog most target bad challenged was wins included share resulting debt for upgraded projects on

effort objectively most into for growth. number of of a geographies, declining XXXX. are comprehensive disparate to a also underinvestment capabilities our positive well years, that in focus inward The primary This accomplishments source pivotal support momentum in important and acquisitions, strategic concluded way predominantly markets, the We revenue. organizational of and key was decisions strategic and our assessment and the in this organic XXXX the of from suffered assessment that evaluate too completion with spring growth our on our forward One late for process. began we many assessment defined planning and way resulting opportunities

market proposition, First, efficient enable our help protect compass and that our it and environment. specifically on solutions setting value X, creating our as clean, industrial value. This more we Slide is safe customers’ that for consistently affirmed share shown growth our with winning shared

four quarter in winnable important represents share progress to some experiencing I a capital minutes targeting the range already how and decisions to We wide are to to X-X-X The and focus markets, in and have excited have We solutions our fluid compelling prospects. momentum. two will some defined on operational reallocation. direction, portfolio end and going our three important made change much quality name air prove, me X-X-X positive range wins enablers, fundamental confident of come through about strategy. supported of X catalyze call and we three value strategy. to markets operational strategy a operational core our to early creation what know reasons. the and our is how to actions progress strategy and intend take X-X-X forward. of seeing but concept handling it platforms. a in Second, a lead X-X-X for initiated strategy a and it in prioritize The lucrative adjustments we The thoughts positive strategy our fourth we shows we few framework investments operational remain about end our growth of our of Slide we has is still beginning our

global I winning planning offence. is we lifelong of at many setup X-X-X you fan, are matches, player know is formation soccer a First, this an the what in offensive that to CECO, and minded that and teamsport and am

entire and and resonates organization. our XXXX-person workforce efforts quickly X-X-X Second, and our focuses priorities throughout

the leadership strategy enablement operational and organization value build on on but sales an produce as every is for simplification to investing throughout is based X, and the training in focus implementation customers. all recognize slide an increased to and through that success the leadership, value excellence our about easy our that to our the process long-term positive hard of is day. driving innovation. to response It brand. and company Outside-in measure, each cultural behaviors the we shift creation committed undertaking an customers on outside-in this norms of listening generating to it and is ambitious about is management, building Moving enablers, a portfolio is four of Outside-in customers

as evaluating along and portfolio yielding reduction. team markets. regularly step win-win own the debt well and reinforced asset certainly the towards business or best us leadership us that units experienced, mindset but a has team, XXXX. units, become is directed add Porvair quarter important I by given objective and represents our an banking the plc niche it is another to match unit acquisition revenue longer of market our on CECO a as portfolio Active invest team decisive agreements led the in no to to passion in for to a for small quarterly know, discussions fit today, detail investment Environmental. required amplified small unit, in not initial some on don't an the in covered competition want will sale with with a residential and essential and our allocating our and We simply an well markets. few management. versus means as for the market where continual of The strategy I the accordance actions in upgraded you within been and attractiveness we also can on offerings returns, And be that all that outside owner that are is renewal transaction in to have to senior focused through proceeds we closed the market of February targeted industrial is the million on active we areas. about as our will thus, share. capable serves complacent transaction, win leadership filter history the clear who of in leaders underway, and bringing winnable more annual substantially CECO. Hopefully this net XX, have we which are clarity must X So to business line and a for that fits That we share already reshaped mentioned seriously acquirer, effort that It the either they We capital and throughout may our better our filtration next discuss on in for winning win the the share last on have we and a and well highest product a larger represents Keystone found supplemented progress to in with we customers. management area call.

interested our enabling We winning are But open of delivering complexity be terms through we very is on criteria CECO now, to market area focus reduce and action our of share. timing. to growth acquisitions, in organization. and inefficient future selective strengthening are in Simplification the organic value next right within by is still going and to

XX customers. Our to XX systems not ERP biggest only is CECO, barrier reduce a with to interactions also the but are legal which within and productive inefficient entities target

number entities solid progress fourth half. during here made is entities the cut eliminating to goal the we Our at least of quarter. by some XX And

On and achieve the have XXXX. side, of making good the are system ERP less one to efficient we end more two eliminated by progress

a This necessary there action. a innovation. theme but Finally is investment isn't

on of Innovation acquisitions gain As quarter’s innovative the and are I gain a this we pipeline call, mentioned most an results to require an overly in will traction fully growth edge. until likely becoming dependent have enabler ideas time as area on produce valuable of behind by fallen to last quantified.

our committed of end-markets With initiative the handling. markets; seize to goal three to the like a slump. with our power control industrial is create value. in rebound, investments energy, markets fluid end share discuss positioned And as air win compelling innovation making gen to X, prolonged our are pollution the I in be and some even We to will Slide and clean

We have sizable these space have these currently identified markets of end-markets. of which competitive end each $X billion, attractive a in we and X% winnable about share. three represent Combined

energy So operational strategy winning and X-X-X it current CECO where fossil good our for clean there and there our micro-recession opportunity positioning power end-market, their the a clear are executed better if spite assisting of positions on the Clean we our gen gain prospects like is safe. plenty biggest news. focused segment, some of proposition the in share Environmental. energy and we company like our We with to potential. our to represents keep is customers a production over Moreover, is us

air to will during increasing have are ahead our poised work be industrial year. most also appears reminder exceed standards worthwhile. stringent, safety and to clearly because corporate, countries industrial A this area In regulatory been control and this the even me, us significant while our quality of XXXX for EHS in have is efficient. continue many significant the strong is worker In rates reiterate time. of to should we we pollution and optimism was making The I've just focus that that half it and improvements. giving makes developing under segment take to We extreme safe more simultaneously that pressure good while downturn. anomalous demand. and continue economic initiatives, an on we are standards dynamics opportunity are remain in responsibility working perhaps and becoming win such achieving uptick rebounding of customers, customers world, developed major refinery advantage India quality them are with In of requirements dynamics market growth, and economies with second sense help increased air social more China positive the air market XXXX, exciting. the the brief of our much and as these remain clean, over Our

we well. help as are to making investments outside So customers US incremental industrial the

robust target remained Our handling fluid indicators. industrial fairly in market with strong third

the growth built final space out represents equipment market and our Slide is market platform. X, value that win most just to global platforms the and our create Engineered Turning identified. largest three to competitive against share being I

blue-chip customers flows. cash our robust applications producing have and We and superior products

In are players in It and two up strong fact, engineering able we in surprising are that we of silencers, not is top for with well and market. and one as the power major generation cyclones, in we QX the as And NOx several back execution. reduction. SCRs soft to that wins refinery had both separators

Within global one and leading CECO solutions brand industrial as for focus. the market with our class to expand we involves expertise to to service realignment equipment forward, several the steps taking offer of outperform are have organization exploiting which quality, better of opportunity against best small regional we fragmented Peerless, most significant sales address a air a a important differentiation, in This market on portfolio SCR penetration win strengthen engineered allowed competitors. have awarded to aftermarket position exceptional our brands an Going NOx. solutions, the number customer of by our based and we ozone-depleting CECO such position of accounts XXXX. In brand but in SCR removal projects to leading

loyalty. We ensure improved taking are several to also steps customer

First, support technicians. are building our steadily lifetime air aftermarket qualified value field quality service through and teams

lastly maintenance and we upgrades, working call quicker e-parts center. a catalogs easier digital Second, through providing towards and we technical are are XXxX make helping and

like position for niche specialty and mission and water desalinization. delivery critical markets in Finally, petrochemical necessities where timely quality are we have specialty customers for a pumps, the pumps, high in end

times. Our underway that in deliver capital rolling configurator wasn't consistently as high-quality lead in will pump be well out we And made. new was the quite on plan we selection aids of reduced XXXX the pumps disappointing we helps manufacturing invest In that surprising this us performance headwinds later a is in several in customers that we faced it summary, year. and end-markets adjustments while our our given internal equipment

in CECO However, in market to confident our will turn better we that, are who a strategy it both we new and with that to our financial I transform and about to win share. X-X-X dialed deliver over will Matt, have Environmental excited with customers course value to And discuss results.

Matt Eckl

Thanks, Dennis.

will the highlight through non-GAAP of as As finer both performance I some of include fourth walk that GAAP for the and the full financials well points quarter I'll the year. XXXX, as

adjustments to transition, include design reminder, integration, and legacy earn-outs, non-GAAP a associated goodwill restructuring executive and limited asset As but and are with acquisition expenses repairs, impairments. intangible exits, our not facility

actions execution financial last restate the on restructuring impacted items be decisive provide intended initiated with our in already Dennis is to positive as we of continue performance. assessment core serve, below and business results. XX, strong is the quarter yielding referenced presentation and year non-GAAP is bridge to Our analysis by were trend markets but headwinds of non-GAAP in A QX outlined, appendix. results we and last Starting I'll Slide that our

power half lower Our of the based $XX.X XX% orders are primarily achieved Revenue and team orders last down it and as XX% was of quality refinery executes million, the generation in wins up at up market. during rebounding depressed backlog year-over-year in market at because million generation, $XX.X growth. XX% the slower was from share refinery which year-over-year Moreover, power sequentially gain air was on year. resulting first our

a operations restructuring this million. $X a I loss operating from aggressive QX of in XX% confident significantly have business quarter lower $X note from can versus the points that the a goodwill year-over-year. X.X million charge liability was margin reduction. on Our soft to was million receivable good and the down in on mix Overall, that Non-GAAP continue and down maintained project loss million solid pressure impairment, conversion model power million reflects non-GAAP improved margin on of profit $X.X of is flow of our produce certainly This solid was XX team remain Zhongli, will year-over-year pricing accounts collections. $X news reflects earn-out QX basis gross while $X.X mostly segment. GAAP operating we quarter, Cash in a in cash generation strong points volume. face the earnings. we and

our we are during resize cuts and mentioned call, all and last our in the I As GE, outlook restructuring on executed Siemens business to annualized $X resizing generate our power Mitsubishi generation during taking alignment million that our This with of follow reduction a workforce charge took closures. of $X.X period of to and need we in million will suit. that we savings. several include a site Accordingly, customers.

diluted reform quarter, loss in was share a contributed non-GAAP in the flow XXXX. positive] $X.XX [only to per Tax our $X.XX. cash earnings loss Finally, of our tax

of note, market up filtration million QX was $X most some due operating and quarter. increased. taken that specific segment were profit deck. improved volume the a ‘XX. the fourth pump full our addition summarizes our that year of on to sale $XX later as to handling $XX XXX with want adjustments X% this of in we softness in first refinery fluid financials orders sustain to XX million that strategy. to $X recovering With orders down expectations the of is from U.S. were million XX% market And flexible and in headwinds over onetime combination about by the million slide or which federal of In the of driven and non-cash GAAP the below Next, are reactions and positive international throughout adjustments appears significant or year-over-year be from market year-over-year QX end quarters. to XXXX similar add operation deep part are initiating I [drop] three market the

on our active in X.X improvement to XX.X% improved handling has mostly year-over-year margin business mix. fluid gross points the market services non-GAAP Our and

fluid was experience Non-GAAP EBITDA As from million of added in encouraging. trips plant we with compression and VP are reduced improved here a new the that $XX prior year. operational with share improvement manufacturing Anthony the XX% as I per the have earnings being industry. Ops with have made by diluted field QX Lisa plants and production slide coming the in am in primarily [indiscernible] touching rate. final from revenue. note Roccki management, the metrics net our our $X.XX in world to fresh to class and the adaption compared factors. want charge Squeal on to equipment, benefit I as but and wealth influenced excellence deployment rampancy, or at manager of new regional Adjusted are acts [indiscernible] signing roster really pleased both by ‘XX handling with lean our automotive manufacturing down The law year-over-year up million booked we wrap on in December. tax two tax driven by the X.X In talent $X.XX

related is X earnings. the This years. it tax charge million the First, transition was eight foreign payable to over on

is higher it re-measured In $X business to QX the XX% new refiners breakout by U.S. reduction QX three On perform Marathon, deferred fact combined. in but our and the sequentially. show XX the last tax Unlike ready top corporate The and built more deferred million different of System to am work gas provide natural for million U.S. products Emtrol-Buell excited program It support win we two XXXX our to soft XXXX guidance This saw to ever revenue that double-digit because for down the [indiscernible] for as orders fire Valero we is and strongest CECO quality Thompson] we offering tax last generation to simple the XXXX a them segment, turbine good to with a addressed maintenance XXXX in about demand the slump out [indiscernible] technical cycle was in quarter largest CapEx will natural positive. our as we I and team in orders and split news. orders growth add-on of [indiscernible] [brand starting the great the were and is This savings refinery QX in offsetting the be future provide expected other to estimate double-digit Glass is slide XXXX. markets. orders handing contracts sequentially, service. for rate. tax liability certainly of customer. up like XXXX is on one total Second, to in team quarters and is year-over-year XX, the fact we power is QX materiality. be are Despite like essentially U.S. flat initially Fluid in strategy we work to the orders increased specifically Phillips than gas SCR it were all year early and since were largest In have strengthened however, orders by beginning to can ordered remain through of size be the through QX quarter news tax X%

spot bright versus Another XXXX. orders was of increased XX% in their QX equality and sequentially both QX where

our see act line to share QX under free and paybacks starting bottom investment positive very growth are all equipment all segments new rebounding of spending are the in market sequential there was were a for increased for market The We combination orders capital reflecting enticing. signs. break were becoming tax

key we orders is XX, slide outlined and points two backlog revenue. There to here. Turning our

our First XXXX. since realized than the first we and notable that is quarter book-to-bill [one] first most ratio of greater

last slide quarters. a in seven we So broke that is

As a is point. with we growth. I see this strategy CECO believe to CFO underpinning pleased focus inflection in XXX are outside our

need. in Slide of The $X the our the driven million we of in the [indiscernible] sequential had XX% China result managing in trends will points XXXX is power were income improvement gross is solving year-over-year focus profit, margins year pressure culprit evidence to shift in of has we margins in in cancellations XX generation the our pollution good adjusted there the our gross prior and that XX.X%. that market challenging, non-GAAP are here. above news. dropped gross and operating is it China to as country's some deceleration shows But so and QX been The is cost down throughout a by impairment. and Volume up is XX.X% air turn. is X.X Second EBITDA. strong estimates pricing in goodwill at Full which

as need the for EBITDA look this right margins, at growth to business you However, our supports operating, sizing while data challenging invest in units. clearly

efforts that. just did Our restructuring QX

in and them place the there additional we in execute that plan China and we power in As pumps we we is to XX, model put consistency as sequentially. improvement inventory closely. improvement. slide asset cash The gen the collections. better free demonstrates significant for The for adjusted the specially cash swiftly room focus our flow the share reduction market consistent actions more the be monitor on And team's know CECO. On of is in receivable accounts and free receivable opportunity QX continue like of and areas flow strength

we has increased On top line our which XX the rate as have in had right our capital working declined.

sign However, capital [dollars] decline improved of QX. million efficiency. our That's versus capital sequentially on an a basis, X growth did trade working

XX, slide debt touch on I to Turning liquidity. will and

made we strides see to the reduce will On left you have considerable debt. our

We call. into in will Dennis effort will last this and next future. week unit to it went quarter's debt mentioned the in from proceeds the show sales up Keystone our now earlier continue reduction directly

maintain restructuring sale that banking side for with our management of leverage slide, right ample are further increased the advanced portfolio said improving complete in X.X ratio [indiscernible] that its working and strategy margins being the that will On covenant. of Keystone outlook we to has confident our

under-performance Zhongli XXXX some back to to on briefly partially structurally debt housekeeping on items the bad end up wrap provision. related GAAP booked our China goodwill Before performance offsetting liability an we I to increased with XX. want reduction Zhongli’s I to slide challenged impairment Dennis, earning our both turn Acknowledging our in our markets and it

With our is Obviously, the measure set out outset to context non-GAAP and I we maintain under-performed transparency in of still in want believe the XXXX CECO GAAP investors. clear variability what we was in results for year. the to the our do a preferred

orders improved on flow terms in cash increasing initiatives. Our positive QX segments, and in areas taken of showed actions all several key

of have will the it in still are I confident go operational long the course about that turn We the to charted am excited prospects Dennis. of but we XXX and way markets. With our and strategy to back I improving

Dennis Sadlowski

market the In XX, is coating reinforce headwinds Matt. end market results our And intent update and momentum we XXXX despite highlight I by place sugar took our of a our operational since enhance positive XXXX there better. that last Thanks to early and closing XXX have and would our value. senior execute investments either our create of end Guided substantially enablers. strengthened We poor wins we share creation to team our enhance strategy or value and during the range win capability reshaped as like off we kicked to continued slide the actions begins. our to to. no then do With leadership to and outlook market to

responsive quality and larger in we active and portfolio in transaction applied customers gain to proceeds by potential up. with during the by our to increased the fourth to quarter We we orders began And results fourth The to seven now and people an helped recent and ERP. to was near and aftermarket in the additional investment organization location supports opportunities to unit extending improve value expertise our in more advantages XX pick making quarters. streamlining debt. efficient brand Keystone CECO The point quarter. market our positive in management sharp more inflection current realigning as specifically their and markets. differentiation is [indiscernible] of legal favorable entities performance eliminating platforms XX% points resulted unit product lifetime our a manufactured future. volume platforms for to more customer and sales drive serves And the be one more that underway several to service and technical end the the the sale downsizing the a to than also designed spread the three across conditions. in Our our filter and improving This our a in is investments forward adapt the have capital going by growth our new prioritized improve Investment as ratio the to common in than to sales implemented first lead offering book-to-bill focus time reducing involving team

Finally, we turning outlook mixture positives and on the XX, market me of with our XXXX to headwinds. slide a remarks began with few end as conclude let

As anticipated be nit rebounding. refinery appears sector we to the

market, the As since around. expect began for customers say refinery Matt have early to as XXXX. already it power XXXX just natural that the prepare throughout upcoming strongest generation to mentioned so pressed we gas I saw discussed I remain Emtrol-Buell hard based turn orders will

Moreover, Our industrial shares and same our for projects. with industrial the pump quarter well objective continue challenging off market wrap with XXXX slide XX, to growth reduction that pivotal our SCR kicked underlying the segment end gas did in and up fourth U.S. the air doubt as gain goes market customers. they of there gained But strategy traction was segments. general rebound. specialty XXXX will be oriented operational our tax be policy and the significant began should XXX To a and no is to operators our quality to board some as was strength year. [indiscernible] for XXXX. segments in are we to The Midstream continue mission silences

am have open up we certain would lot work questions. challenge. I the but now for a Thank of CECO is up the it do And to to We like Operator you. to that

Operator

Hannan Needham with first question & Company. Please [Operator go from Thank comes ahead. you. Instructions] Sean Our

Sean Hannan

me? Can folks folks. hear morning Good you

Dennis Sadlowski

morning Good Sean. Yes.

Matt Eckl

Sean. Hey

Sean Hannan

question so Good for here. the morning. taking much Thanks

as presentation the look have out at slide rebound actually question you you are first that towards you guide that for you model. be segments like appear it ‘XX, not guys a revenue ‘XX about I the and looking break at know for be if are Dennis if the all considering of here just something directionally seem to that that going So you does and I end you down put market like of is we should in so, kind but should looks these the thinking that

Dennis Sadlowski

Sean. Thanks

weather weather you say you you having joining power… me I let and stuff the Northeast first safely The there the getting are hope through and for thank in trouble us are

Sean Hannan

result. any a In case. as actually am I in stranded Toronto

Dennis Sadlowski

to the the turn areas we in I always hopefully said year's in that and well areas bookings numbers, takes of last be the I and being rebounding the year to say something to that lapping I of performance. say know the revenue the up start sorry you understand and that then I of increases as think be with stronger wouldn't I year throughout backlog own refinery far the bookings some would those I the pick look our so you portion we as in through higher looking long couple in have year’s that and other for outlook. year we half industrial That still in backlog product when of And that position Northeast markets weather quickly that. have a the the as half last and am up at But bookings how will tough will would others our to between tell we supports time of go so last our stranded relatively second before the segments as first increased we revenue the absolutely bookings it year’s the in came increases weeks. standpoint will outlook longer also what are comparables as colleagues we hear ahead good with as outlook last company cycle starting in to relative the we last see a strength for the the share in year's in ability say catches last yes some has that you from

Sean Hannan

Okay.

So points are ‘XX do market set of or mixed terms more for in relevant this Just dynamics? for I bookings for it make or this. new point there new understand is trying slide of is a a sure to we to Is that interpret this is this specific slide, revenues?

Dennis Sadlowski

markets who and our end our you we market and this to linked we be what’s to depiction directional and and What that we we all follow the that share information. should our end bookings those is in where follow view give attempted and where activity our way indicator would see either view of are be of we of how or to market so happening some markets point even perform gaining here the do end an you for would provided new the company Yes. what’s where orders the with in others better can aggregate out then of

about yes something to translates it bookings before translates outlook is this so first then And which to sales.

Sean Hannan

Okay.

that feel stabilizes, A, hit So the point? that could for that? you sense inflection when an if B, are Do Dennis when opportunity of your a generation can handle said thoughts I pickups end what market power on has being maybe ask perhaps, you that some or through an you have do looking or bookings of some either within shares on

Dennis Sadlowski

Yes.

our what hearing gen are opportunities So in you and from I from we of in tell what aggregate are has the bigger seeing. power market resembled that the we OEMs pipeline would the market of kind

softer. So to continued it's a last year and year down spring starting late maybe be it's lot

said, that bookings our in Now actually see can the quarter fourth you were up.

conditions continue solution up That are and in applications of we what gen are the needing likely in are variety is shares. deliver so the it's much because even a we what really they great pipeline we in XXXX segment that of who the the have who confident part the to who stand that can technology, understand fourth tough do, however, behind we dial picking people quarter subdued in to So anticipating. best customers of who applications experiencing and through what in power are on will absolutely is that's

are they the projects we company to to pipeline therefore get for execute the ability will result bookings we actual well showing have in continue be and that to is a if some but gain Our be aggregate. funded both on the could likely and share chart our fairly matching of overall subdued do the what sizable but

Sean Hannan

All helpful. That's here Okay. way. right. Two more pop of then I will the questions and out

sense first months quarter question or far? to last an the second into the the not in front understanding through could when you and there Thanks this that a revenue continued seeing holding of on time lag based we What a necessarily point off quarter. but activity then is terms thus bookings revenue you are again. March can now our inflection the the taking where uptake to trend Is that inflection folks. you of do thus go point from start you the be what opportunity two two far we bookings are be is have could well, say for seeing June there the on a activity so of So much anything to green

Dennis Sadlowski

Yes.

of on quarter juncture. are might we unlike as this months you So the into that amount I two is second can comment as new best are year. don't you dynamics talk asked all we your question that part Matt let outlined segments They we is Normally page the the are since of we at that about in activity are the on I can asked And both positive momentum showing domestic. the say market support. showing about I the decent but

mentioned well. that best in across is there gen the are already and picking our again I going us oil support on through focus in of coming on. Power good our some shape is work organization in what ago a reliability seeing we team work are very are and people we against great do very have have support segment that good the can still middle We they up the and there in I team year projects a the the there mentioned expectations gas in and East and board trust the pickup but of refinery to as the not seeing

have there is to we but picking up. degree of muted so expectations a a And lot activity

is bag. with our areas actually that few There metals that could favor. So The yes on they create momentum could on I XXX tax mix movement. say in are significant has a

the us. That to impact an question the parent. that's Those and planning there of NLMK in bit therefore is think perhaps are immensely a anything little to I XXX forward is settle XX% number bag. time get so their about off a can same investments slabs Russian the could payback we improved and to early that pace It's will subsidiary investing is translate they But if those of to project create how I customers where and and is think with. on based way mix subject segment of the think who million Russian revenue the at least are investing. and premises at planning what investments whole the and the was metals Sean but We I it that too will bookings when have one from ability it important could a move sorry in help too tear some on bringing on say

Matt Eckl

Sure.

will three months the we orders depending basically from booked we can businesses of upon to mix start So it anywhere placed to on which that think on. nine orders those revenue of are recognize

booking to QX can QX for were argue to say you see hey we may recognizing back If QX. revenue and be in and where early look you orders then maybe the QX these that start

say inflection half So I is probably middle in the of the point the would Sean. first

Sean Hannan

Thank so Okay. very Very That's much. good. helpful. you

Dennis Sadlowski

Okay.

Operator

Sweeney Gerry with from comes Capital question next Our Instructions] [Operator ROTH Partners.

Gerry Sweeney

Good morning Matt and Dennis.

Dennis Sadlowski

Hey Good Gerry. morning.

Gerry Sweeney

little going challenged increase develop? this on to the have at Dennis calls dynamic capture to some the that maybe is slide front. the I sales advance. can organic maybe were the apologize see but uptake bit of that some you improvements obviously this some and dynamics back some other curious market to opportunities just was right on to of in But XX apologize. CECO are anything starting place so slide done starting to I but and we Do add of in changes lot as of sales of due a also historically to then to if people market end some improved just [indiscernible] I jumping CECO you a sort the I

Dennis Sadlowski

Yes.

So Gerry. thanks

question like like. is the to well both coverage the the the organic a have as the really as end, front people and about we and properly are do the we that we pool talent growth in So sales the right positioning have

project for that control client it that but that announcement we would we the A really that's you team expansion really of the together better to absolutely engineers, wins. an expertise equipment project a was come past sure it referred to that and was depth I Matt and than we commercial the help our the silencer are have this platform and [indiscernible] them joints reduce chain who on that dampers led number so [indiscernible] utilizing And that depth Ozone great have globally our that demonstrating we on entire had expertise particular a peerless within of exhaust on team what unit. we in really brief from stack lot expertise the and supplying behind tell of SCR a make a uses have

So because really the end reduction. it was integrated hit front peerless win for was the core technology [indiscernible] with company the

industrial only leader application build ability customers a still supplementing that kind industrial I people quality collect reading it near commercial what to in with we where the area product is our upgrading and And with is as gives for can line recognized So an within are not but understand and of process shares gain will turning the and the very leader team and well. be that quality ultimately optimism clean solutions we we When to both are. as variety flex apply that's across in we doing the future quality adding we our that whatever the adverse air work can that to am out needs I now be another right industries segment team we over those go of talented air but me solution really unit with a air have are right the earlier the so as that's going to where that those customers team continue their and invest we to in experts that of to continuing oxidizer lot key market. be only that of an kind things and line and are the does not key set

Gerry Sweeney

Refinery possible? -- I pressure were What apologize up down. this of like think couple you Got an that business is the talked that was an give levels maybe business back XX a year. million or could if back with XX it come you little it this annualized much And think be and then turnarounds million remind maybe historical went to run of picking lot that. I million the something maybe I And detail around would round can that XX obviously which Could now that could idea if us was rate a it of business certainly from [entire] year. wins. me like last but on to sounds even of under bit about how

Dennis Sadlowski

Yes.

comments of make Let me a there quickly. just couple

understatement under I XX call the year that think be would the were low of [indiscernible] a we experiencing demand. was in new because pressure

believe we XX enormous were where an it I data in drop enormous bookings even bookings of was a in so went million and suggest think -- we period would we drop had we share. market to from four and gained ‘XX so with neighborhood our And few that I actually a points the and XX of in had ‘XX million quarters in straight

said, will you in market was to performance and this a So a if operated neighborhood the two issue. we gradually over That that year of over and annually a XX an million XX period months that think not look the longer issue businesses strengthening and back much really and we history term quarter as those hope can demand we and way are the of rest into some work continue that to the ‘XX. did its in up seeing so now we right that into and that pretty quarter the good levels what something very fourth

Gerry Sweeney

it. Got

appreciate really you. I Okay. it. Thank

Dennis Sadlowski

to rebuilding be I to revenue backlog early few the execute all that quite year [indiscernible] that of and we quite most year of projects areas have of our period. last and so ship least at the that that month where no will did a of projects Yes. to XX is optimism lot in translates before it is Again a caution over in we the one

Gerry Sweeney

you Great. Great. very Thank much.

Operator

[Operator am I further seeing questions. Instructions] At no time this

Sadlowski Dennis the would back for I turn conference So to like over to remarks. closing

Dennis Sadlowski

the XXX in joining so. giving look Thank Okay. next What we and our we to storm on update you are to momentum days are We and areas. investing and strategy again good pretty some look hit again forward we our our behind you as or you all I progress forward call. for in again you experiencing again talk affected those you. XX specially I to thank sharing us further major of

Operator

now concluded. Thank attending you presentation. for is today's conference The

may You disconnect. now

CECO Environmental (CECO) 8 Mar 182017 Q4 Earnings call transcript