CECO Environmental (CECO) 14 Mar 222021 Q4 Earnings call transcript

Good morning. And welcome to CECO Environmental Conference Call. [Operator Instructions] Please note that this event is being recorded. I'd like to turn the conference over to Matt Eckl, Chief Financial Officer. Please go ahead.

us earnings CECO call. joining and fourth for XXXX year-end you on Environmental the quarter Thank

Chief On Todd Officer; Eckl, Gleason, call Chief Officer. the with Executive and me myself, today is Financial Matt

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

the in Gleason. comparable Executive We turn back today's non-GAAP with the over the GAAP of tables supplemental press to release Todd? have that, Officer, in slide I'll the Todd as call And Chief well as deck. reconciled numbers the and

start to the We're to good with Matt. Matt mentioned And along everyone. with follow presentation of Slide remarks. Thanks, going day X prepared our

this to earnings CECO that in show quarter year-over-year growth deliver previously highlighted would finish earnings release, financials we forecasted a and strong backlog the sequentially, had revenue in growing and and We chain, to strength it our continued there With As start orders foreseeable future. our morning's levels year-over-year both solid labor up in in continued the maintain strong expect our overall material is. revenue third and and pressures to remains backlog in inflationary the challenges global shortage. uncertain for supply doubt the No and we XXXX. growth

and to However, on strategically and debt. and generation the execution, we course, CECO of cash additional an quarter. provide focused repurchase project cash details highlight stock and will Matt price in around the cost finish our was additional remain flow utilization cash Down appropriate. generation of change to taking year our order as management, paydown

Number of marks Slide let's million. to detail. around right financials fourth grew fourth review the quarter more consecutive with X, $XX year-over-year. This $XX orders Turning quarter million XX% in Orders

just in was balanced orders digits, $XXX $XX of double were platforms million sales in produce QX. report million delivered during we to I $XX expected backlog we report the million, to quarter range revenues the in proud of that third our am to the earnings and up which how discuss sequentially will growth We minute. a majority We our our year-over-year. QX forecasted across of both

EBITDA, term facing we remain XXXX. the continued backlogs logistics Gross are the will third near costs gross other cautious, solid expect and helped up generate free approximately short revenue with Importantly, Cash we continue XXXX. an than margins million significantly were of around of deliver positive increasing further to cash in year-over-year was million and of of of $X.X of quarter revenue margins on year-over-year, supply flow remain when increase million to We over that to XXXX. The increase we to outside margins given quarter remain our our flows gross of to better ability significantly throughout record and level continue and focused even sustain $X.X the chain, growth. control. the $X items XX.X% compared challenges all deliver but third in

So, Number overall, as into to good and XXXX, X. finish a for to turn sequentially and great solid growth Please Slide shape XXXX move in beyond. improvement we

have say third release we we to we comments the is our margins. with continued and support and the committed transformation various momentum In on includes visually It and feel and and board, We flow, good we going a cash of delivering presentation. we we're do On for that one investments snapshots portfolio deliver we across left to growth will earnings provided outlook management few we improved that and the and EBITDA growth. organic the important good steady growth, a growth side, show on is quarter organic what CECO By programmatic say. know release, what our for sales from transformation, that XXXX delivered outlook shareholders. margins M&A. that in our against

topic We provide in continue today's will as presentation updates we on our our and to revisit later journey. commitments this

move Now Number let's X. Slide to

in the challenges. turn to long-cycle pressures very the were deaths backlog position volumes rebuild during year enter XXXX. it margin accomplished of our We certainly of As of are Please Slide as XXXX orders a XXXX That we But about significant year-over-year. company our grow result XXXX lower orders backlog as Because overcome was impacts XXXX, from was we XX% to lower could not we a from with almost portion XXXX. COVID-related EBITDA. good Number X. a navigating ended the was projects, depressed feel CECO’s full mission and starting we up as and well-discussed strong revenue critical

we why see are can built. by we momentum encouraged You the have

balanced Emissions Management of we well, that XX% a seven truly growth XX% to growth pipeline stronger platform have we growth platform future eight Filtration the year-over-year continued strong one Industrial for and as growth. much orders, the platforms orders over digits, to not their orders Separation very XXXX platforms profile. several grow growth, the grew platform. have and year XX% other For throughout build out expect as CECO was a through that poised that did double The platform our is and Air Yet, generated XXXX from

can You platform associated slide. read the with on each the commentary

other see we will then orders wrap over to hand will specifics Matt the You markets run to remain up of various XXXX to our going some and QX our Matt? comments. call more we good will overall. it now I financials have a grow I’m pulse and through confident book our on observations and with

X grew that pleased growth segments wins Systems. the three with Middle several year-over-year as Slide were awarded Todd. orders, Handling water in acoustic and Engineered East. Systems solutions grew throughout in Thanks, Fluid are we for our Sequentially, we X% Engineered Starting both thermal and all sequential with treatment

QX of cost surging is Handling XX% versus we seasonally the same our are that versus that investments automotive we significant in up Fourth and spend given Fluid the years, petrochemical was by U.S. up markets, platform sequentially a Air was tough our last platform’s pleased we and Our increase Mefiag and in quarter respectively. bookings times serve position Dean and filters against down as customers’ with made haven’t growth, experiencing are quotes Both saw markets improve cut quarter year. CapEx results. in and our seen the X% XX% this up our It’s pumps of Industrial showing for comparisons, slowest to the CapEx competition. lead but cycles. these

to right in into the the all revenue XX% right, the off. see and our year-over-year XX% a pay we up start moved as labors On way, of up fruits big sequentially

and As significant. our Most came flow-through does, to turn from chain of time challenges with EBITDA Systems approximately into QX supply our slipped of as is out million long-cycle, But Todd backlog-based once of the to sequential to highlighted, it to subcontractors Engineered where takes business revenue loosen. $XX the started revenue. increase QX

countries work. material as inbound driving drawings signing subside are up revenue subcontractors which still and customers us customers cases are to clear getting to correlation between is quicker, is allowing opening While materials receipts This procure on COVID off recognition. our back sooner, a faster slow, and technical

our this For platforms, news. long-cycle is welcome

long-cycle grow an to margin revenue CECO, repeatable and with improved higher In valuation, more $XX must we reported businesses year-over-year. our X% how of our the organically recurring and short-cycle sequentially are inorganically. transform garner the short-cycle sales, To million company project the of economics even performing. astounding all XX% and appropriate but are platforms more revenue quarter, we our up and growing pleased pleased I’m businesses We see the

aftermarket For industrial parts sales, year-over-year, dust short-cycle equipment pumps of as million year, and includes well dampers and collectors, the services. we $XX up as like standard X% full which produced product

joints. GRC, in of the our valves past we control duckbill a on rubber and week, acquisition as products in announced closed expansion flow Just such leader

are economics for their to and more sales more $XXX our predictable, fantastic million portfolio superior revenues. CECO’s GRC XXXX. GRC short-cycle million mix adds add This in in approximately to shareholders excited increases of will $XX We contribute CECO short-cycle our to to approximately for also products. recurring

stated opportunities the double slide, what concentrate margins. stronger I in first Including future, businesses call. We continue will my for I to focus last on product with down aftermarket M&A higher on our earnings and

FX. growth $XX $XXX top XXXX. and slightly shows million line up Slide backlog our We year-over-year expect in on million, sequentially at is double-digit XX down

slowing down our at ratio book-to-bill shows $X billion at XXXX and X.X Our and XX-month was strong pipeline of turns growing. signs no in

is first today’s the While strong a we orders good months months would also the that been would visibility two have QX. very of I suggest rarely first to results, CECO the through this two quarter. QX focus at We highlight have of

metrics, to May. XX, a XX%. on X/X of QX, million was quarter’s $X to excited sales execution. and crested which in all the our rebounded and release a underperformance Slide thirds, across we OI QX are earnings QX in $X.X prior We XX.X%, improved heels back year margins bounce inflation described of X/X in strong performance. update sequentially nearly and good pricing, adjusted Gross saw an provide more the I at on on On on million, EBITDA on non-GAAP X/X In

months over backlog off still is each and for comment remains months Older XXXX, points sometimes old get booked new linger headwind international roll XX some margin pricing quarter, up gross do X in. to and back Larger in jobs basis years. last we jobs levels example, better. certain for with XX.X% projects often to to some projects a and take extend to time While over on from historical through It I’ll to two backlog to work will to XXX briefly. have higher-priced or from will revenue turned XXXX. roll projects third

more inelastic and pursuits. cyclone power introduced DNOx in FCC of actions number limited in We win Conversely, our solutions. the there pricing are and the key is some yet are broader competition rates additional generation, demand systems is have such executing given where for price our markets we like In engineered increases short-cycle as successful allocating businesses. and in strategy across confident markets capital we XXXX, another aggressive reason XXXX, short-cycle businesses multiple price M&A are in our

Eric Holzworth metal every documented case and that it and and inflationary two at teams. inflation, like the bit ensuring a Regarding to remains of and tracking of want we but monitor environment. organizations examples bid fluctuates. it they change to And leaders pricing a on we’ve steel again great CECO the nice in and navigating applaud regularly done are Kim of focus Steel challenge price project This softened platforms quote we our projects XXXX, Lindemann management be to job creatively started a percentage of as procurement we a getting will our high orders this the We’ve customers, climb that this a leaders project managing. in impacted component and management goes are year. continued end the of towards

are a CECO. personally for difference You making

talent inflation our reps the across extremely as areas materials, functional Beyond is costs managers, sales we’re important. labor and all retaining in well, seeing project

means that employees toughest been I to more norm. those a virtual companies our the for positions it are are company operate think are market-agnostic. has one number competition CECO, what most Ironically, becoming fungible especially recruiters environment with every And learning keep. seen post-COVID asset. highly end to talent, has increased At one in of retaining roles people and the

better work We opportunities environments new are more our ownership and team training to and with align benefits equity increases, greater development shareholders. with introducing hybrid entire more of lots higher and along merit

benefits execution project programs COO, remediate QX. some was and recruit The Ramesh, we’ll retain our productivity management in to We and commissioned chain. also root features led assessment in opportunities. to pleased execution FMEA our great We with reward, a and dove final third-party key completed even have to studies, enterprise-wide causes and critical supply more issues. talent look and XXXX. identify place I’m in add very third

housekeeping outcomes specifically lean ever material control. operations. shows EBITDA adjusted can the our effect persist, associated improvement the summarizes Xx comparisons. Non-GAAP and a availability prior didn’t few slightly quarter backs, up SG&A year were income summarize but Lastly, of our $XX course volume comp COVID pleased EBITDA in continuation Year-over-year, full sequentially, improved we period we challenges and expansion total. Supply The same in focused To repeat in leader challenging million hired XXXX. still in million LeComte, nearly operating flat I’m merit XXXX. many plus and XXXX incentive to chain that of sequentially, expect A logistics, great continuous $X at inflation, savings up we’ve items. of first results. we these the graphs, add one-time corrected XX non-GAAP see on in the of year we in because Edward EBITDA, subcontractor both fourth areas Slide with was headcount, on versus but down and

was excludes million these and and were M&A up lower year-over-year in margins. million items, it on the $X.X OI earn-out. hand, as such GAAP OI volume Non-GAAP non-recurring amortization, as on was $X.X other gross Restructuring expenses XXXX. down year-over-year, mostly First,

upper of Much view attributed this of milestones. side additional right. are Slide place, dollar. Everything to we’ve We a point flows on outlined was These is quarter. up that positioned Trade CECO against team on EPS the certain in $XX and is $X.XX performance. down bottom XXXX. and AR already to flow What turn improve cash right and up cash rupees year euros is million the $XX down table. full negatively the great was CECO I’d year-over-year, benign in in free the up investors in covered. precursors and territory projects right WIP $X.XX million is $X.XX denominated loss quarter manage $X.XX a meantime, in COVID at were year-over-year. data here of to capital the XXXX’s the did to are only to between non-GAAP XX Orders XXXX growth on million of Additionally, In foreign operations teams the quarter, weakened working choppy, to Slide in a we XXXX. was well remain to aging year. looking and In are provide AR. as the the source in that CECO’s my opinion, to in produce great $X but XX. cash largely free are of working and

Lastly, to Paul to And for announced executing thanks team us. is We ever for the amend on here. this leaders to and on the XXXX XXXX. M&A. program has Turner after back shape syndicate our Needham several in CECO for balance in with credit increasing actions Gohr, Thanks facility, concluded We our sheet in $X Slide worked Jennifer quarter. for share extend the it best XX, strategic authorization syndicate buyback our and the flexibility million October our our been partnership at

Lastly, paid in down million of we the $X.X debt quarter.

programs future believe stock We returning to of strategy. capital in will as we capital overall buyback our shareholders part evaluate allocation our as

of we M&A holding total of this that last the pipeline However, dry we week’s A are closing greater acquisition. returns. of generates is for believe currently a powder example great our healthy GRC

industrial is bolt-on water damper to mentioned, markets. leader for CECO expansion It’s joint platform a As economics flow the great and serving our solid GRC control and the a shareholder.

margin lower of debt to inexpensive our on laser-focused profiles accretive medium-sized with capital using leaders sales, acquisitions intensity. smaller and more to cost higher make industrial are We short-cycle of

and million one funnel just we opportunities several in M&A is GRC closure bring current over $XXX to expect of is XXXX. to in Our well

hot. more As we wrap been I’m CECO’s XXXX, had I before. excited ever is The about future than demand market

Our balance sheet is healthy.

growing CECO’s and is elaborate in adjacencies more what ahead. transformative Todd on see We’re Todd? will we new underway. journey

excited and our with am Matt. agree. XXXX I beyond. and Thanks, pleased XXXX I results for

let’s number go Now Slide to XX.

a quarterly back sales. have $XX future around reflected average in our we of today, highlighting been side here, the as to which of revenue we And the of level highlighted XXXX. that orders of XXXX quarter is $XX is general left fourth which outlook of start million The million, that summary provided produce is in On concept, November quarters.

We than costs, confident flow in outlook. directional which gross about expected in there also are to that greater that aware relate the XX% this to quarter. do in-period margins feel did given to and ebb we return quarter. Certainly, takes which any and we to The also we range, balance the continue reiterates fourth quarterly puts of are this in slide

Additionally, we strategic to we feel other offset with We inflation. and to aim and our good acknowledge persistent confident very challenges of and But to M&A these short-term remain chains many management, supply challenges committed growth in in with ability cost actions. deliver.

number XX. Turning to Slide

we releases press are showing of earlier discussed to tie areas we To X have thematic transformation. this in several in this regarding for of back demonstrating CECO’s year. Here, Slide this the strategic show some additional reason already CECO QX on slide snapshots distributed we traction presentation,

We stated M&A. when action publicly accretive were would to have strategic, that start we we ready,

accretive and already completed announced of GRC. As Matt covered, the we then acquisition

robust a updates targets, we’ll on to pipeline continue our progress. of provide We have transparent M&A and

this and a Peerless project announced on the project. solutions snapshot project to sustainable of projects publicly the world. CECO’s array CECO’s geothermal win represents engineered previously and energy term our We’ve transition. more all to QX, from initiatives relates This the In in portfolio. geothermal this energy Another large internal participate we branded with taking over already off other large focus actively energy slide investments highlighted in

energy winning and numerous that projects transitions. other bidding actively are We to relate

future investments. project and other It have advantage. solving highly experience of our time energy exciting to complex carbon hydrogen, a real to in expect diverse biogas position you is wins capture engineered can the the challenges leadership solutions, markets. an and diverse CECO’s hear engineering about Given is decades related

up We Now, XXXX. Slide XX. progress with let’s in wrap made great

also And glad in are more is we are doing our and diverse a it in entered our of are and already There stronger we $X last backlog small, rearview opportunities opportunities, big of pursuing significant year. winning robust. XXXX and We enter a We in sales remains over billion job with mirror. great than pipeline XXXX. that

solid pipeline in As growth will That steady Matt our active of backlog a our feel. That growth. our deliver us expectation. to we fast XXXX. we are confidence very some mentioned, activity expected a and will And off we lot to is M&A start, adding organic obviously gives add

are our We sharing publishing look very and that close to inaugural to ESG ESG targets forward our We goals, objectives, and announcement report. commitments.

healthy report continual grow first be commitment and steady acquirers markets. with in committed emerging a will our of our sheet, move just organically towards investing more journey we And transformation, CECO strategic Our to to programmatic be and accretive sustainability. balance one and to is expect step to sustainable into transactions.

line the thought. open questions, last let one we to me share Before just

troubled Ukraine. in We situation are by the certainly

While major under it of with being a Russia, not displaced CECO material to impact are is and Ukraine personal leadership and siege. the certainly exposure in On millions a or people perspective, to are direct that our does thoughts have business global a markets.

to lend a can evaluating We We return CECO piece. pray are way for support.

line. Our and up people. the Operator? we’ll hearts certainly welcome With are with the we open your that, Ukrainian questions,

Please Jim [Operator & Needham Instructions] ahead. Ricchiuti from go with comes question Our Company. first

a QX. Thank way, – couple of morning. questions. Question on Congratulations, improved results you. Good the by the

be could much they there opportunities sounds cross-selling. recognizing. on It you I’m skewed of wonder potential a share that for how they’re of kind from more have backlog talk short-cycle the that overlap And what see like you with standpoint also about wondering more little if GRC. if might business I you business. towards bit First customer us could

Yes. it hand I on the quarter. Matt. provide comments over Couple Thanks, well. the to of He’ll color Jim. appreciate as comments and I’ll additional

sales and of think, bring in projects, suppose, But and parts infrastructure projects big a a but as is we both our other They channel our the We’ve I our utilizing line as first GRC got So force to of a channels, always just aggressively. East opportunity world. projects. in larger some internationally and out Middle developed overlap through CECO all, our the well customers. had branch to the of there’s especially international lot product the here, haven’t large chance

So, themselves. we’ll they’ve good, And leverage a be distribution that. able got to really strong

that expanding ability through our bring, really whether our We’ll products in investing. distribution, we water, see Historically they to don’t. to continue it’s well just infrastructure area been is we’ve which control flow invest. projects So established our an

I a a really balance between think we’re Obviously, nice larger organization. So, two. much the it’s

and some accelerate of we’ve sheet anything balance want to to add Matt, So, certain areas help investments. strength that? got if scale you also to

Jim. backlog, $X million of

Yes. Thank you.

talk How just to Got that it. the that QX you slipped if And of wonder the you a extent all from alluded we’re that about what that? of could I you Thanks. the light ongoing much in bit to ship that? And hearing material to you of shortages. seen have able all to issues little already Were revenues slippage chain additional about supply QX.

Yes, that we’re projects around. seems we seeing quarter, like it have every move –

quarter. mean, just So, quarter, pushed million and when a I we out got of third the then – that say of the we captured around in we I I out third few – say as $XX And fourth the just we lost million from approximately well. that, pushed would quarter. that had I revenue we that mean, pushed captured got probably lost, mentioned

that So away. it's these mean are projects quarter. choppy Jim. That We're first the it doesn't still in experiencing going

a We year, just confidence million, your customers, to project have of whether have come to other in, we're then products right? those teams your when quarter to supply wait it's $XX worth it for dynamics, everything have go $X to And – we wait the Every suppliers you're has all in when but and chain project in amount to of quarter their to a million have business, for you not of ready in. revenue. we and have, are every tremendous seems our but

have like marketplace, it's lot but variables really the at momentum we play. of choppy. a We the in So there's

term? final Got thinking at do. should have the some How the pricing some question into underway way and of You're One to jump about to some from any in gross though you've of improvement margins? beginning I queue. back initiatives margins actions other margin. obviously it. you're may if gross presumably And benefit before get Nice about gross the taken I'll near I we you be think

Yes.

I just think cost that's going a you paying short – it's at but choppy, like what to the period new little to happened the a us time. whether too, be saw very of continues continue because the throw we're continues challenges at nickel of, to market We market said, to much of how increases, in pump. all – in terms in just

work have we adjust for our logistics. across work our that, So to with suppliers,

So of a doing to environment creates times. getting I a job through we're now little at our nice backlog, we're has of in right think of course, where which an price, flow an imbalance bit

think bit year. little Could down you our a our want at. it we'll of think a was flat. to nice improvement long-term experience gross again, being we're through the as where sequentially. as and slightly those that way margins get So be if up about work But back But we aspirations is it currently

So the appreciate we comment.

lot. Thanks a

comes ahead. Sameer Please question H.C. Wainwright. Joshi from with next Our go

good for good progress. and my thanks questions. morning Yes. And congratulations the taking Again, for

numbers? that recognized the you we it is XQ to historically XQ. in near-term Should some add in be that from the XQ XQ significantly XQ, lower of had of low-quarter a to that to the And sort spillage year. expect you For

Yes.

bit said, companies a point proven a through choppy an the we the SG&A. from happened we to of accruals increase of as more supply execute again, of sort I there our or said, projects in our just going costs and first all lot ability that you like lot out going feel, we which start chain around quarter. have quarter terms quarter things. a sometimes great little historically, There's inflation. little to these – trend the a We're quarter working in we think have first than from say had is there's quarter we've every, sequentially, little that every lot just to be if a cost at And the will But but some have. first pressures we XXXX. sequentially, or just have quarters we but probably bit of certainly different are on the reset through They reflect proven. I the it's quarter, first our trend more historic to first year. be of a nothing certainly company fourth and quarter, of a There's And an like to bit first in should the a be like probably you as that's year go I a companies, of a – has your lower about

share seen, trend? Is quick a QRC granularity Understood. – acquisition. that And that – you on question in can then the year there any the just a have GRC, you there is that on business sequential and over that improvement

flat in They're the infrastructure strong, water orders a improvement through with is out with business. it. really seasonality that coming every decent spending Year-over-year, is backlog with ending No year and There we single the and based of especially sequential are expecting that's expected quarter. happening growth pretty are the pretty bill a business market. associated

the front. then M&A And one just Great. on

to you're you reiterated quarters? looking to aspirations? of You longer-term active small have mid- midsized that the at couple – term these in Do Or next are opportunities. any longer may discussions materialize

Yes. to not to programmatic. be we description looking than give at We're say, But huge we're going what probably will other in pipeline. our of a

a focus we are margin accretive leadership our expect have transition. table. We seat that's us to leadership continue that short-cycle in industrial transactions more at perspective, sales; energy at the the give already areas areas. looking from going are to our a We think of we air, where that expand in are Those industrial seat table. at We're the invest and water

also All to to protecting people, commitment of environment protecting looking and our the protecting the bolster continue strong our of just equipment. we're at things sort industrial

as staying a size like small we're really for to fashion. because but where speak, direction So at we right now. the just to medium-sized M&A. so true to We'll us moment our swim at right These of looking in to shape lane, of the in that just deals steady we portfolio continue kind transactions, on we're that's look our are transaction larger

Thanks. questions another offline. I’ll it. Got take Thanks.

[Operator from go Instructions] Tieton Our next ahead. question Bill Please with comes Capital. Dezellem

Thank you.

of with you detail this we little please if year. Would a could, begin, that? behind strength and Let's more orders January February provide the

for Bill, of the our good to Thanks most balanced Pretty across Todd. platforms. is speak This Broad-based, with you. question.

As that. our so XXXX, strong. about maintains QX talking we've been stayed demonstrated throughout pipeline We've

And Starting in energy or see our two patience first up say in the to and show we of really the certain is transition three stay starting first suggest are balanced perspective. in as the had to would jobs quarter the the strong number I we've energy we So of bookings quarter seen platforms. that to order – first focused things the quarter proof in in our areas, the we've of a as bookings. is first most quarter some across that of months from years a that two of two think would larger months

and and to longer in you term? what then term like And you would what GRC relative more to that acquisition all and add you. Thank Great. to the brings near it

a of something positioned I for in the their is the leadership we right the opportunity. think well that think the and business their there They it's with fantastic. can is work position the and to that, focus. could it's their team its market and their size partner a size operations, be projects. take and both there's across They feel that opportunities right in in We investment growth of we really lot sense that challenges. opportunities advantage and the But understand the Xx markets, a is, us their of great are And market. that both

bring you make that's double you acquisition, plus. whenever a an strong in leadership, So

Great. Thank you.

Thanks, Bill.

a Sameer is question next Wainwright. Our ahead. with Joshi follow-up Please go H.C. from

will margins then at margins Yes. consider Thanks. can at the look And missing you I'm it know I sales better. of be levels, six two months to cycle three earlier. short XX just sorry if to Or cycles upwards cycle, mentioned But are question historical maybe better, levels, quick we But are less two you can quantify? but at short or because the the the months longer for current should much – price a years, question it you not nine should this than like but how months? margins it? – and how and can we cycle, on you

would around short months. – quantify typically two. sales four of We cycle right It's than less we to X.X

filters, pumps, them. So out aftermarket gathering build services, and something, turning we going

at pricing how seen around and we goes and to we've to increases X%. X% letters we've actually look realized from sent price the When probably X% customers, X%. where we've as of had range far multiple to anywhere measure it, we As

So price it's short of very increases. the strong cycle on been acceptance

it. Got Thanks.

closing our concludes This now back to conference the question-and-answer Todd would like session. any I Gleason remarks. for to over turn

forward here professionals look the and term the active at medium of organization challenges CECO. support and got like to always, each we communities share bit us to and lot customers articulated, thanks everyone and focus questions, to be as dedicated a team for continuing enter a longer remains XXXX. the short, our continue navigate I and We've the Sarah, continues other. Matt starting as Again, choppiness as well. progress this to to We M&A, for now appreciate to and marketplace. serve our your our growth little coupled more great That, a be to just – Again, Thanks, that participation good to of pipeline hopefully have morning a we our really with trajectory leadership we to in think strong. us the for and

you So with Thanks few of next we with lot. today, days. we'll the many a speaking look forward end and throughout that, to

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

may You disconnect. now