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Business Segment Information
 3 Months Ended
Mar. 31, 2012
Business Segment Information [Abstract]  
Business Segment Information

15. 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 Technology and Parts Group ("EET&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 Best Available Control Technology ("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 March 31,  
(dollars in thousands)    2012     2011  

Net Sales

     

Engineering Equipment Technology and Parts

     

United States

    $ 18,921      $ 22,244   

Canada

      1,940        2,774   

China

      1,443        1,667   

Brazil

      121        120   

India

      0        91   
  

 

 

    

 

 

  

subtotal (a)

      22,425        26,896   

Contracting / Services (a)

      7,545        8,407   

Component Parts (a)

      5,448        4,749   

Corporate and other (a)

      24        329   

Eliminations

      (2,416 )      (4,425 ) 
  

 

 

    

 

 

  

Net sales

    $ 33,026      $ 35,956   
  

 

 

    

 

 

  

(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 March 31,  
(dollars in thousands)    2012     2011  

Net Operating Income (Loss)

     

Engineering Equipment Technology and Parts

    $ 3,305      $ 2,111   

Contracting / Services

      1,121        831   

Component Parts

      1,089        907   

Corporate and other (b)

      (1,695 )      (1,507 ) 

Eliminations

      (73 )      73   
  

 

 

    

 

 

  

Net operating income

    $ 3,747      $ 2,415   
  

 

 

    

 

 

  

  (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 and was sold in November 2011.

 

     Three months ended March 31,  
(dollars in thousands)    2012      2011  

Property and Equipment Additions

      

Engineering Equipment Technology and Parts

    $ 20       $ 54   

Contracting / Services

      16         9   

Component Parts

      27         0   

Corporate and other (c)

      10         97   
  

 

 

     

 

 

  

Property and equipment additions

    $ 73       $ 160   
  

 

 

     

 

 

  

  (c) Includes Corporate and Engineering Group property and equipment additions. The Engineering Group was sold in November 2011.

 

     Three months ended March 31,  
(dollars in thousands)    2012      2011  

Depreciation and Amortization

      

Engineering Equipment Technology and Parts

    $ 161       $ 229   

Contracting / Services

      56         57   

Component Parts

      49         41   

Corporate and other (d)

      52         50   
  

 

 

     

 

 

  

Depreciation and Amortization

    $ 318       $ 377   
  

 

 

     

 

 

  

  (d) Includes Corporate and Engineering Group depreciation and amortization. The Engineering Group was sold in November 2011.

 

(dollars in thousands)    March,
2012		     December 31,
2011		  

Identifiable Assets

     

Engineering Equipment Technology and Parts

    $ 44,169      $ 51,480   

Contracting / Services

      26,844        18,588   

Component Parts

      6,195        5,577   

Corporate and other (e)

      8,286        9,705   

Eliminations (f)

      (6,845 )      (6,005 ) 
  

 

 

    

 

 

  

Identifiable Assets (g)

    $ 78,649      $ 79,345   
  

 

 

    

 

 

  

  (e) Includes Corporate and Engineering Group identifiable assets. The Engineering Group was sold in November 2011. 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.

 

      March,
2012		      December 31,
2011		  
(dollars in thousands)      

Goodwill

      

Engineering Equipment Technology and Parts

    $ 14,741       $ 14,661   

Contracting / Services

      0         0   

Component Parts

      0         0   
  

 

 

     

 

 

  

Goodwill

    $ 14,741       $ 14,661   
  

 

 

     

 

 

  

 

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 March 31, 2012  
     Total      Less intra-
segment		     Less inter-segment sales     Net sales to
outside		  
(dollars in thousands)    sales      sales     EE&P     C/S     CP     Corp. (a)     customers  

Net Sales

                

Engineered Equipment Technology and Parts

                

United States

    $ 18,921       $ (247 )    $ —        $ (429 )   $ (5 )   $ —        $ 18,240   

Canada

      1,940         —          —          —          —          —          1,940   

China

      1,443         (723 )      —          —          —          —          720   

Brazil

      121         —          —          —          —          —          121   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

      22,425         (970 )      —          (429 )     (5 )     —          21,021   

Contracting / Services

      7,545         (34 )      (565 )     —          (283 )     (10 )     6,653   

Component Parts

      5,448         (81 )      —          —          —          —          5,367   

Corporate and other (a)

      24         —          —          —          —          (39 )     (15 )
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 35,442       $ (1,085 )    $ (565 )   $ (429 )   $ (288 )   $ (49 )   $ 33,026   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(a) Includes adjustment for revenue on intercompany jobs.

 

     Three months ended March 31, 2011  
     Total      Less intra-
segment		     Less inter-segment sales     Net sales to
outside		  
(dollars in thousands)    sales      sales     EE&P     C/S     CP     Corp. (a)     Customers  

Net Sales

                

Engineered Equipment Technology and Parts

                

United States

    $ 22,244       $ (2,347 )   $ —        $ (484 )   $ (9 )   $        $ 19,404   

Canada

      2,774         (22 )     —          —          —          —          2,752   

China

      1,667         (15 )     —          —          —          —          1,652   

Brazil

      120         —          —          —          —          —          120   

India

      91         —          —          —          —          —          91   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

      26,896         (2,384 )     —          (484 )     (9 )       24,019   

Contracting / Services

      8,407         (54 )     (1,191 )     —          (200 )      (5 )     6,957   

Component Parts

      4,749         (183 )       —          —          —          4,566   

Corporate and other (a)

      329         —            (19 )     —          104        414   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 40,381       $ (2,621 )   $ (1,191 )   $ (503 )   $ (209 )   $ 99      $ 35,956   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(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. The Engineering Group was sold in November 2011.