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Business Segment Information
9 Months Ended
Sep. 30, 2011
Business Segment Information [Abstract] 
Business Segment Information

6. Business Segment Information

CECO's operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the "Income from operations" line on the Statements of Income.

 

Engineered Equipment and Parts Group ("EE&P")

Our Engineered Equipment and Parts Group, located in the United States as well as Canada, Brazil, China, and India, is comprised of CECO Filters, Busch International, CECO Abatement, Effox, Fisher-Klosterman, Flextor and A.V.C. We enable our customers to meet BACT requirements and compliance targets for fumes, volatile organic compounds, process, and industrial odors. Our services eliminate toxic emission fumes and volatile organic compounds from large-scale industrial processes. We have a presence in the chemical processing, ethanol, paint booth emissions, wastewater treatment, and wood products industries.

Contracting/Services Group ("C/S")

Our Contracting/Services Group is comprised of the contracting/services operations of our Kirk & Blum divisions. We provide custom metal fabrication services at our Kirk & Blum Columbia, Tennessee and Louisville, Kentucky locations. These facilities are used to fabricate parts, subassemblies, and customized products for air pollution and non-air pollution applications from sheet, plate, and structurals.

Component Parts Group ("CP")

We market component parts for industrial air systems to contractors, distributors and dealers throughout the United States.

The accounting policies of the segments are the same as those in the consolidated financial statements.

Summary of Business by Segment

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
$ in thousands    2011     2010     2011     2010  

Net Sales

         

Engineered equipment and parts (EE&P)

         

United States

    $ 18,073      $ 17,345      $ 60,179      $ 56,301   

Canada

      1,490        3,426        5,852        9,543   

Brazil

      864        207        1,851        427   

China

      2,806        1,417        6,475        2,599   

India

      104        140        229        758   
  

 

 

    

 

 

    

 

 

    

 

 

  

subtotal (a)

      23,337        22,535        74,586        69,628   

Contracting / Services (C/S) (a)

      7,284        9,652        22,554        28,253   

Component Parts (CP) (a)

      5,282        4,363        14,585        13,158   

Corporate and other (a)

      253        383        880        1,151   

Eliminations

      (3,209 )     (3,073 )     (11,165 )     (8,533 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 32,947      $ 33,860      $ 101,440      $ 103,657   
  

 

 

    

 

 

    

 

 

    

 

 

  

(a)    The amounts presented above at the reportable business segment level include both external and intersegment net sales. See tables in the following section "Intra-segment and Inter-segment Revenues."

 

 

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
$ in thousands    2011     2010     2011     2010  

Net Operating Income (Loss)

         

Engineered equipment and parts

    $ 3,294      $ 2,125      $ 8,303      $ 6,970   

Contracting / Services

      903        479        2,281        88  

Component Parts

      820        804        2,674        1,850   

Corporate and other (b)

      (1,613 )     (1,772 )     (4,555 )     (5,102 )

Eliminations

      (94 )     (66 )     (133 )     (218 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net operating income

   $ 3,310      $ 1,570      $ 8,570      $ 3,588   
  

 

 

    

 

 

    

 

 

    

 

 

  

  (b) Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses. Also included are the operations of our Engineering Group, which is not significant to the overall operations of the Company.

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
$ in thousands   2011     2010     2011     2010  

Property and Equipment Additions

        

Engineered equipment and parts

   $ 78      $ 79      $ 144      $ 271   

Contracting / Services

     63        0        72        24   

Component Parts

     236        5        268        42   

Corporate and other (c)

     21        3        170        63   
 

 

 

    

 

 

    

 

 

    

 

 

  

Property and equipment additions

   $ 398      $ 87      $ 654      $ 400   
 

 

 

    

 

 

    

 

 

    

 

 

  

  (c) Includes Corporate and Engineering Group property and equipment additions.

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
$ in thousands    2011      2010      2011      2010  

Depreciation and Amortization

            

Engineered equipment and parts

    $ 174       $ 232       $ 618       $ 725   

Contracting / Services

      59         117         173         347   

Component Parts

      49         48         132         139   

Corporate and other (d)

      58         40         163         111   
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization

    $ 340       $ 437       $ 1,086       $ 1,322   
  

 

 

     

 

 

     

 

 

     

 

 

  

  (d) Includes Corporate and Engineering Group depreciation and amortization.

 

     September 30,
2011		     December 31,
2010		  

Identifiable Assets

     

Engineered equipment and parts

    $ 51,078      $ 51,004   

Contracting / Services

      15,686        14,009   

Component Parts

      5,424        4,613   

Corporate and other (e)

      8,216        7,953   

Eliminations (f)

      (6,107 )      (2,788 )
  

 

 

    

 

 

  

Identifiable assets (g)

   $ 74,297      $ 74,791   
  

 

 

    

 

 

  
  (e) Includes Corporate and Engineering Group identifiable assets. Corporate assets primarily consists of cash, income tax related assets, and intercompany note receivable.

 

  (f) Includes eliminations for intercompany trade accounts receivable, intercompany job revenue, and intercompany note receivable. Also includes reclassification of cash overdraft to liability.

 

  (g) The Company has revised its business segment reporting primarily to exclude nontrade accounts receivable in order to better reflect the manner in which such assets are reviewed by management.

 

Goodwill

      

Engineered equipment and parts

    $ 14,628       $ 14,713   

Contracting / Services

      —           —     

Component Parts

      —           —     
  

 

 

     

 

 

  

Goodwill

    $ 14,628       $ 14,713   
  

 

 

     

 

 

  

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

 

     Three months ended September 30, 2011  
     total      less intra-
segment		     less inter-segment sales     net sales to
outside		  
$ in thousands    sales      sales     EE&P     C/S     CP     Corp. (a)     customers  

Net Sales

 

          

Engineered equipment and parts (EE&P)

                

United States

    $ 18,073       $ (669 )    $ —        $ (279 )    $ —        $ —        $ 17,125   

Canada

      1,490         —          —          —          —          —          1,490   

Brazil

      864         —          —          —          —          —          864   

China

      2,806         (1,272 )      —          —          —          —          1,534   

India

      104         —          —          —          —          —          104   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

      23,337         (1,941 )      —          (279 )      —          —          21,117   

Contracting / Services (C/S)

      7,284         (13 )      (536 )      —          (42 )      (8 )      6,685   

Component Parts (CP)

      5,282         (71 )      (46 )      (207 )      —          —          4,958   

Corporate and other (a)

      253         —          —          (3 )      —          (63 )      187   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 36,156       $ (2,025 )    $ (582 )    $ (489 )    $ (42 )    $ (71 )    $ 32,947   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs.
     Three months ended September 30, 2010  
            less intra-                              net sales to  
     total      segment     less inter-segment sales     outside  
$ in thousands    sales      sales     EE&P     C/S     CP      Corp. (a)     Customers  

Net Sales

                 

Engineered equipment and parts (EE&P)

                 

United States

    $ 17,345       $ (194 )    $ —        $ (648 )    $ —         $ (3 )    $ 16,500   

Canada

      3,426         —          —          —          —           —          3,426   

Brazil

      207         —          —          —          —           —          207   

China

      1,417         —          —          —          —           —          1,417   

India

      140         —          —          —          —           —          140   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

subtotal

      22,535         (194 )      —          (648 )      —           (3 )      21,690   

Contracting / Services (C/S)

      9,652         (99 )      (1,536 )      —             (22 )      7,995   

Component Parts (CP)

      4,363         (154 )      (5 )      (340 )      —           —          3,864   

Corporate and other (a)

      383         —          (7 )      (29 )      —           (36 )      311   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net sales

    $ 36,933       $ (447 )    $ (1,548 )    $ (1,017 )    $ —         $ (61 )    $ 33,860   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs.

 

     Nine months ended September 30, 2011  
            less intra-           net sales to  
     total      segment     less inter-segment sales     outside  
$ in thousands    sales      Sales     EE&P     C/S     CP     Corp. (a)     Customers  

Net Sales

 

          

Engineered equipment and parts (EE&P)

                

United States

    $ 60,179       $ (3,495 )    $ —        $ (2,754 )    $ —        $ —        $ 53,930   

Canada

      5,852         —          —          —          —          —          5,852   

Brazil

      1,851         —          —          —          —          —          1,851   

China

      6,475         (1,798 )      —          —          —          —          4,677   

India

      229         —          —          —          —          —          229   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

subtotal

      74,586         (5,293 )      —          (2,754 )      —          —          66,539   

Contracting / Services (C/S)

      22,554         (82 )      (1,761 )      —          (42 )      (53 )      20,616   

Component Parts (CP)

      14,585         (336 )      (123 )      (639 )      —          —          13,487   

Corporate and other (a)

      880         —          —          (42 )      —          (40 )      798   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 112,605       $ (5,711 )    $ (1,884 )    $ (3,435 )    $ (42 )    $ (93 )    $ 101,440   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs.

 

     Nine months ended September 30, 2010  
            less intra-                              net sales to  
     total      segment     less inter-segment sales     outside  
$ in thousands    sales      Sales     EE&P     C/S     CP      Corp. (a)     Customers  

Net Sales

                 

Engineered equipment and parts (EE&P)

                 

United States

    $ 56,301       $ (1,536 )    $ —        $ (1,089 )    $ —         $ (3 )    $ 53,673   

Canada

      9,543         —          —          —          —           —          9,543   

Brazil

      427         —          —          —          —           —          427   

China

      2,599         (173 )      —          —          —           —          2,426   

India

      758         —          —          —          —           —          758   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

subtotal

      69,628         (1,709 )      —          (1,089 )      —           (3 )      66,827   

Contracting / Services (C/S)

      28,253         (328 )      (3,225 )      —             (92 )      24,608   

Component Parts (CP)

      13,158         (535 )      (67 )      (1,229 )      —           —          11,327   

Corporate and other (a)

      1,151         —          (82 )      (122 )      —           (52 )      895   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net sales

    $ 112,190       $ (2,572 )    $ (3,374 )    $ (2,440 )    $ —         $ (147 )    $ 103,657   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs.