CECO Environmental Corp (CECO) 2013 Q4 法說會逐字稿

Good morning. My name is Derica, and I will be your conference operator today. At this time, I would like to welcome everyone to the CECO Environmental Corporation fourth-quarter and full-year 2013 earnings call. (Operator Instructions). Thank you.

早安.我叫德里卡 (Derica)，今天我將擔任您的會議接線生。現在，我歡迎大家參加 CECO 環境公司 2013 年第四季和全年財報電話會議。 （操作員指令）。謝謝。

I will now turn the call over to your host, Mr. Shawn Severson of Blueshirt Group -- CECO investor relations firm. Please go ahead.

現在我將電話轉給主持人，Blueshirt Group（CECO 投資者關係公司）的 Shawn Severson 先生。請繼續。

Thank you. Good morning, everyone. Thank you for joining us on CECO Environmental's conference call and webcast to discuss the financial results for the three months and full-year ended December 31, 2013. On the call with me today are Jeff Lang, President and CEO; Neal Murphy, Chief Financial Officer; and Ed Prajzner, our incoming CFO as announced in this morning's press release. Jeff and Neal will be reviewing the quarter and full-year results and will also provide an update on the Company's strategy and outlook.

謝謝。大家早安。感謝您參加 CECO Environmental 的電話會議和網路廣播，討論截至 2013 年 12 月 31 日的三個月和全年的財務業績。今天與我一起參加電話會議的有總裁兼首席執行官 Jeff Lang；尼爾·墨菲 (Neal Murphy)，首席財務官；以及我們即將上任的首席財務官 Ed Prajzner，正如今天上午的新聞稿中宣布的那樣。傑夫和尼爾將回顧本季和全年業績，並將提供有關公司策略和前景的最新資訊。

Please note the new addition to traditional reported GAAP earnings. We provide non-GAAP financial measures in our press release today to enable a better assessment of the ongoing nature of CECO's core operations. Jeff Lang's comments will primarily focus on these non-GAAP financial measures, and Neal will address differences between GAAP and non-GAAP financial measures in his remarks.

請注意傳統報告的 GAAP 收益中的新內容。我們在今天的新聞稿中提供了非 GAAP 財務指標，以便更好地評估 CECO 核心業務的持續性。 Jeff Lang 的評論將主要集中在這些非 GAAP 財務指標上，而 Neal 將在他的評論中討論 GAAP 和非 GAAP 財務指標之間的差異。

Following our prepared remarks, we will open the call to questions. This call is being webcast and can be accessed at CECO's website at cecoenviro.com. The webcast will be posted on CECO's website for replay approximately two hours following the end of this call. The replay will stay on the site for on-demand review over the next several months.

在我們準備好發言之後，我們將開始提問。本次電話會議正在進行網路直播，您可以透過 CECO 的網站 cecoenviro.com 觀看。網路直播將在本次電話會議結束後約兩小時發佈在 CECO 網站上重播。在接下來的幾個月裡，重播將保留在網站上以供點播。

Before we begin, I would like to caution investors about regarding forward-looking statements. Any statements made in today's presentation that are not based on historical facts are forward-looking statements. Such statements are based on certain estimates and expectations and are subject to a number of risks and uncertainties. Actual future results may vary materially from those expressed or implied by the forward-looking statements. We encourage you to read the risks described in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2012.

在我們開始之前，我想提醒投資者註意前瞻性陳述。今天的演示中任何不基於歷史事實的陳述均為前瞻性陳述。此類聲明是基於某些估計和預期，並受許多風險和不確定性的影響。未來的實際結果可能與前瞻性陳述所表達或暗示的結果有重大差異。我們鼓勵您閱讀我們提交給美國證券交易委員會 (SEC) 的文件中所述的風險，包括截至 2012 年 12 月 31 日的 10-K 表年度報告。

Except to the extent required by applicable security laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that we make here today whether as a result of new information, future events, or otherwise.

除適用安全法要求的範圍外，我們不承擔更新或公開修改我們今天在此做出的任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

Today's presentation will also include references to certain non-GAAP financial measures. We have reconciled the comparable GAAP and non-GAAP numbers in today's press release.

今天的演示也將提及某些非公認會計準則財務指標。我們在今天的新聞稿中核對了可比較的 GAAP 和非 GAAP 數字。

And with that, I'd like to turn it over -- turn the call over to Jeff to begin the discussions.

說完這些，我想把電話交給傑夫，開始討論。

Thank you, Sean, and good morning, everyone. We appreciate your continuing interest in CECO Environmental as we continue building a premier Company. I'll provide some financial review, and then Neal Murphy, our Chief Financial Officer, will discuss financial results in more detail. Also, Ed Prajzner, our new CFO, is joining us as well. I will then close with an update on the businesses and some other strategic highlights for the quarter, including the announcements of our exciting management changes.

謝謝你，肖恩，大家早安。我們感謝您對 CECO Environmental 的持續關注，我們將繼續打造一流的公司。我將提供一些財務審查，然後我們的財務長尼爾墨菲將更詳細地討論財務結果。此外，我們的新任財務長 Ed Prajzner 也將加入我們。最後，我將介紹本季的業務更新和其他一些策略亮點，包括我們令人興奮的管理層變動的公告。

Let's begin with a few financial highlights for the quarter. Revenue in the quarter increased $34 million to almost $70 million, or 100% better than the previous year. Recent acquisitions contributed to roughly $34 million to our quarter. All acquisitions are 100% fully integrated, and we are now operating as one CECO team.

讓我們先來看看本季的一些財務亮點。本季營收增加了 3,400 萬美元，達到近 7,000 萬美元，比前一年增長了 100%。最近的收購為我們的季度貢獻了約 3400 萬美元。所有收購均已 100% 完全整合，我們現在作為一個 CECO 團隊運作。

Bookings were almost $67 million for the quarter versus $26 million in 2012, an increase of roughly 150%. Our backlog remains strong, reaching $98.5 million in the quarter, up from $60 million in 2012 and essentially flat with Q3 of $100 million.

本季的預訂額接近 6,700 萬美元，而 2012 年同期的預訂額為 2,600 萬美元，成長了約 150%。我們的積壓訂單依然強勁，本季達到 9,850 萬美元，高於 2012 年的 6,000 萬美元，與第三季的 1 億美元基本持平。

Non-GAAP gross profit in fourth quarter increased $22 million from $11 million in the prior year. We basically doubled our gross profit dollars. Non-GAAP operating income increased to $9.4 million in the quarter, up from $4.5 million in the same period of 2012. And operating margins reached 13.6%, a new high for CECO as compared to 12.8% in 2012. And we are pretty excited about the 13.6% operating margins in the quarter. We think it symbolizes the Met-Pro CECO integration has been a success, and we are starting to see some of the benefits from that.

第四季非公認會計準則毛利較上年同期的 1,100 萬美元增加 2,200 萬美元。我們的毛利基本上翻了一番。本季非公認會計準則營業收入從 2012 年同期的 450 萬美元增至 940 萬美元。營業利益率達 13.6%，與 2012 年的 12.8% 相比，創下 CECO 的新高。我們對本季 13.6% 的營業利潤率感到非常興奮。我們認為這象徵著 Met-Pro CECO 整合取得了成功，我們開始看到由此帶來的一些好處。

Non-GAAP net income increased to $6.8 million in the quarter compared to $3.1 million last year; and non-GAAP net income per diluted increased to $0.26 in 2013 compared to $0.18, a 44% increase.

本季度非公認會計準則淨收入增至 680 萬美元，而去年同期為 310 萬美元； 2013 年非 GAAP 每股攤薄淨收益增至 0.26 美元，較 2013 年的 0.18 美元增長 44%。

In regard to the full-year highlights, revenues reached $197 million in 2013 versus $135 million in 2012. We continue to be very excited about building a larger, more profitable business, and we are trending in the right direction.

就全年亮點而言，2013 年的營收達到 1.97 億美元，而 2012 年為 1.35 億美元。我們繼續對打造更大、更有利可圖的業務感到非常興奮，我們正朝著正確的方向發展。

Total bookings in 2013 were $199 million versus $139.7 million in 2012, an increase of 42%. Note, full-year gross profit was up meaningfully, almost 50%, compared to last year, and we expect continued steady improvement in this key metric moving through 2014.

2013 年的總預訂額為 1.99 億美元，而 2012 年為 1.397 億美元，成長了 42%。值得注意的是，與去年相比，全年毛利大幅成長近 50%，我們預計這項關鍵指標在 2014 年將持續穩定改善。

I also want to highlight some additional full-year financial metrics, as 2013 was a significant year in the evolution of our Company. We increased our revenue to $197 million, and we now have a stronger, better, larger platform that, organically, is -- could potentially reach the $300 million mark.

我還想強調一些額外的全年財務指標，因為 2013 年是我們公司發展過程中重要的一年。我們的收入增加到了 1.97 億美元，現在我們擁有一個更強大、更好、更大的平台，從有機角度來看，這個平台有可能達到 3 億美元大關。

In combination with the substantial growth in revenue, we are also able to expand our non-GAAP operating margins for the full year to 13.1% versus 12.6% in 2012, and we grew non-GAAP operating income to $25 million. This also translated into roughly $0.98 in EPS for the year versus $0.65 in 2012.

除了營收大幅成長之外，我們還能夠將全年非 GAAP 營業利潤率從 2012 年的 12.6% 擴大至 13.1%，非 GAAP 營業收入則成長至 2,500 萬美元。這也意味著今年的每股收益約為 0.98 美元，而 2012 年的每股收益為 0.65 美元。

The integration of Met-Pro has gone well. We have achieved over $9 million of synergies. We have sold non-core assets. We're also in the process of selling non-core real estate. We consolidated three manufacturing facilities already. We merged our two main offices. The Met-Pro main facility is under contract to be sold in 30 days. We streamlined duplicative functions. There were some reductions in force. And we continue to move to an asset-light manufacturing strategy with 50% internal and 50% external manufacturing to provide maximum flexibility and a much lower shop operating cost.

Met-Pro 的整合進展順利。我們已經實現了超過900萬美元的協同效應。我們已經出售了非核心資產。我們也正在出售非核心房地產。我們已經合併了三家製造工廠。我們合併了兩個主要辦公室。根據合同，Met-Pro 主設施將在 30 天內出售。我們簡化了重複的功能。軍隊人數有所減少。我們繼續轉向輕資產製造策略，其中 50％ 為內部製造，50％ 為外部製造，以提供最大的靈活性和更低的車間營運成本。

Overall, I'm very proud to say we have delivered and even exceeded our integration plan and processes -- that the Company is now aligned and operating as one business.

總的來說，我很自豪地說，我們已經實現甚至超越了我們的整合計劃和流程——公司現在已經協調一致並作為一個整體運作。

Operational excellence in the lean business model remained a key area of our competitive advantage. We have launched several key initiatives while maintaining our lean SG&A model, which is under 19% for the full-year 2013. Note that this SG&A level was achieved while integrating Met-Pro, which historically runs at a much higher SG&A level.

精實商業模式中的卓越營運仍然是我們競爭優勢的關鍵領域。我們推出了多項重要舉措，同時維持了精實的銷售、一般和行政管理費用模式，2013 年全年該模式低於 19%。需要注意的是，這項銷售、一般和行政管理費用水準是在整合 Met-Pro 時實現的，而 Met-Pro 歷史上的銷售、一般和行政管理費用水準要高得多。

Despite modest global business conditions in the fourth quarter, we continue to show solid year-over-year progress in key financial metrics with a continued focus on positioning CECO for future global growth. And the team CECO has done a very good job in 2013, and we are very excited about 2014.

儘管第四季全球商業環境溫和，但我們的主要財務指標仍同比穩步增長，並繼續致力於為 CECO 未來的全球成長做好準備。 CECO 團隊在 2013 年表現非常出色，我們對 2014 年充滿期待。

I'd also like to address some significant leadership changes at the CFO position. Neal Murphy joined CECO as our CFO in August of 2013, roughly seven months ago with the exciting transformative Met-Pro CECO merger. We truly thank Neal for his leadership during the important merger transition. He has been integral to the CECO Met-Pro merger and played a key role in the successful integration of the two companies that are now operating successfully as one CECO Company well ahead of schedule.

我還想談談財務長職位的一些重大領導變動。大約七個月前，隨著令人興奮的 Met-Pro CECO 合併，Neal Murphy 於 2013 年 8 月加入 CECO 擔任我們的財務長。我們真誠感謝尼爾在重要的合併過渡期間所扮演的領導角色。他是 CECO Met-Pro 合併案中不可或缺的一部分，並在兩家公司的成功整合中發揮了關鍵作用，目前兩家公司已提前作為 CECO 公司成功運營。

We have also made great strides in building out our senior leadership team to support growth and global expansion in our future. Our incoming CFO, Ed Prajzner, is clearly part of that foundation. Ed came to us as part of the Met-Pro merger and is one of several key individuals who have joined our leadership team from recent acquisitions. We are very excited to have Ed step into this very important executive leadership role. Actually, Ed was recruited into Met-Pro as the future CFO succession strategy two years ago. And we are very excited about his financial leadership capabilities. My compliments to Neal Murphy and Ray De Hont in recruiting Ed.

我們還在建立高階領導團隊方面取得了長足進步，以支持我們未來的成長和全球擴張。我們即將上任的財務長 Ed Prajzner 顯然是該基金會的一部分。 Ed 是 Met-Pro 合併的一部分加入我們的，也是透過最近的收購加入我們領導團隊的幾位關鍵人物之一。我們非常高興 Ed 能夠擔任這項非常重要的執行領導職務。事實上，兩年前 Ed 就被招募進 Met-Pro 擔任未來的 CFO 繼任策略。我們對他的財務領導能力感到非常興奮。我向 Neal Murphy 和 Ray De Hont 表示讚賞，並感謝他們招募了 Ed。

I will now turn the call over to Neal for a more detailed review of the financial results for the quarter.

現在我將把電話轉給尼爾，讓他更詳細地審查本季的財務結果。

Great. Thank you, Jeff. And good morning, everyone. As mentioned earlier, I will highlight both GAAP and non-GAAP performance for the quarter. Non-GAAP adjustments include acquisition and integration expenses; the impact of acquisition asset valuation adjustments on the income statement, which results in higher levels of depreciation and amortization; and earn-out payments to the principles awarding.

偉大的。謝謝你，傑夫。大家早安。如前所述，我將重點介紹本季的 GAAP 和非 GAAP 表現。非公認會計準則調整包括收購和整合費用；收購資產估值調整對損益表的影響，導致折舊和攤銷水準上升；並向授予原則支付獲利款項。

A $1 million legal reserve has also been established during the quarter with regard to legacy legal matters and has been excluded in calculating non-GAAP income. Our non-GAAP financial presentation is intended to provide better trend analysis and assessment of core business performance.

本季也針對遺留法律事務設立了 100 萬美元的法律儲備金，但在計算非 GAAP 收入時並未計入。我們的非公認會計準則財務報告旨在提供更好的趨勢分析和核心業務績效評估。

Let's now turn to Q4. Revenue in the quarter was [$68.7 million], a $34.4 million, or just over 100%, improvement from the same period last year. Recent acquisitions of Adwest, Aarding, and Met-Pro contributed $34.3 million of revenue for the quarter. Pro forma revenue for the third quarter, assuming Met-Pro had been acquired as of the beginning of that quarter, was $65 million. So our Q4 shows some nice quarter-over-quarter growth.

現在讓我們轉到第四季。本季營收為 [6,870 萬美元]，比去年同期成長 3,440 萬美元，增幅略高於 100%。最近收購的 Adwest、Aarding 和 Met-Pro 為本季貢獻了 3,430 萬美元的收入。假設 Met-Pro 在第三季初就被收購，則第三季的預計收入為 6,500 萬美元。因此，我們的第四季度顯示出良好的環比增長。

Gross margin was 31.3% versus 32.6% in Q4 this year. Non-GAAP gross margin adjusted for inventory valuation and property plant and equipment valuation costs was 32.4%, essentially flat with a very strong Q4 last year. Non-GAAP gross margin was up strongly from 30.8% in the third quarter of this year. And we expect that the upward trend that we saw in the fourth quarter will continue into 2014 as we have a full-year of Met-Pro results.

毛利率為 31.3%，而今年第四季為 32.6%。經庫存估價及物業、廠房及設備估價成本調整後的非公認會計準則毛利率為 32.4%，與去年第四季的強勁表現基本持平。非公認會計準則毛利率較今年第三季的30.8%大幅上升。我們預計，由於 Met-Pro 全年業績良好，第四季度的上升趨勢將持續到 2014 年。

Selling and administrative expenses -- excluding deal costs, earn-outs, legal reserves, and other non-GAAP expenses set forth in our press release today -- increased $6.8 million to $13.1 million and decreased as a percentage of revenue to just under 19% compared to 19.5% last year. As Jeff mentioned earlier, this SG&A percentage reduction was achieved while integrating Met-Pro in Q4, and Met-Pro historically had a significantly higher SG&A model than CECO.

銷售和管理費用（不包括交易成本、盈利能力、法定儲備金以及我們今天新聞稿中列出的其他非 GAAP 費用）增加了 680 萬美元，達到 1,310 萬美元，佔收入的百分比從去年的 19.5% 下降至略低於 19%。如同 Jeff 先前所提到的，這筆銷售、一般及行政費用百分比的降低是在第四季度整合 Met-Pro 時實現的，而且 Met-Pro 歷來的銷售、一般及行政費用模型明顯高於 CECO。

Operating margin was 5.4% in the quarter, down from 12.8% in Q4 of last year. Non-GAAP operating margin, adjusted for the items mentioned in my comments regarding gross profit and SG&A, was 13.6%.

本季營業利益率為 5.4%，低於去年第四季的 12.8%。根據我在評論中提到的毛利和銷售、一般及行政費用（SG&A）項目進行調整後，非公認會計準則營業利潤率為 13.6%。

We will strive for continued incremental improvement in operating margins going forward, given our operational excellence and consolidation initiatives. The heavy lifting from a cost synergy perspective is essentially complete and reflected in our Q4 results.

鑑於我們卓越的營運和整合舉措，我們將繼續努力提高未來的營業利潤率。從成本綜效的角度來看，繁重的工作已基本完成，並反映在我們的第四季業績中。

Other income and expense was $0.8 million, or approximately $0.02 per diluted share for the fourth quarter and attributable to foreign-exchange gains. Net income per diluted share was $0.11 compared to $0.18 in 2012 Q4. Non-GAAP net income per diluted share, adjusted as previously noted, increased to $0.26 in 2013 compared to $0.18 in 2012, just over a 44% increase.

第四季度其他收入和支出為 80 萬美元，或每股攤薄收益約 0.02 美元，歸因於外匯收益。每股攤薄淨收益為 0.11 美元，而 2012 年第四季為 0.18 美元。經前文所述調整後，2013 年非公認會計準則每股攤薄淨收益增至 0.26 美元，而 2012 年為 0.18 美元，增幅略高於 44%。

Let's now turn to full-year performance. In 2013, revenue increased $62.3 million, or just over 46%, to $197.3 million compared to $135.1 million in the prior year. Acquisitions contributed approximately $68 million in revenue in 2013. Net income was $6.6 million as compared to $10.9 million in 2012. Non-GAAP net income increased 84% to $20.4 million. Non-GAAP diluted earnings per share increased 15.8% to $0.98 compared with 65% -- $0.65 per diluted share in the prior-year period.

現在讓我們來看看全年業績。 2013 年，收入增加了 6,230 萬美元，略高於 46%，達到 1.973 億美元，而上一年的收入為 1.351 億美元。 2013 年，收購貢獻了約 6,800 萬美元的收入。淨收入為 660 萬美元，而 2012 年為 1,090 萬美元。非公認會計準則淨收入成長 84%，達到 2,040 萬美元。非公認會計準則每股攤薄收益成長 15.8% 至 0.98 美元，去年同期每股攤薄收益成長 65% 至 0.65 美元。

Let's now turn to the balance sheet and cash flows. Cash and cash equivalents at December 31, 2013 was $22.7 million, which is essentially the same as compared to December 31, 2012. The Company had outstanding borrowings under lines of credit and term loans of $88.9 million, which was primarily used for the acquisition of Met-Pro. And capital expenditures in the fourth quarter were minimal. Net debt decreased from $78 million at the beginning of the fourth quarter to $66.1 million at the end of the fourth quarter as we continued to make strides in reducing debt from the Met-Pro transaction.

現在讓我們來看看資產負債表和現金流量。 2013 年 12 月 31 日的現金及現金等價物為 2,270 萬美元，與 2012 年 12 月 31 日基本持平。該公司在信用額度和定期貸款下的未償還借款為 8,890 萬美元，主要用於收購 Met-Pro。第四季的資本支出很少。由於我們繼續大力減少 Met-Pro 交易產生的債務，淨債務從第四季初的 7,800 萬美元減少到第四季末的 6,610 萬美元。

A couple of comments for modeling purposes. Our pro forma 2013 revenue, including acquisitions and excluding the sale of a non-core business which was consummated at the very beginning of 2014, is approximately [$268 million], and this should be the baseline when modeling 2014 revenue growth. Our strong fourth quarter provides nice momentum heading into 2014. Our tax rate was unusually low in 2013 given -- driven primarily by research and developmental credits and is expected to return to historical levels in 2014.

為了建模目的，提出幾點評論。我們 2013 年的預期營收（包括收購但不包括 2014 年初完成的非核心業務出售）約為 [2.68 億美元]，這應該是模擬 2014 年營收成長的基準。我們強勁的第四季為進入2014年提供了良好的勢頭。 2013年我們的稅率異常低——主要受到研發信貸的推動——預計2014年將恢復到歷史水準。

I'd like to take a moment to introduce Ed Prajzner, our new CFO. Ed and I have worked very closely together for the last two years. I've been extremely impressed by his intellect, his leadership ability, and his technical skills. Ed is primed and ready to step into the CFO role of CECO, and I'm very excited for him, and the transition is going very smoothly. Ed will do a great job as your next CFO.

我想花點時間介紹一下我們的新任財務長 Ed Prajzner。過去兩年來，艾德和我一直密切合作。他的才智、領導能力和技術技能給我留下了深刻的印象。艾德已經準備好擔任 CECO 的財務長一職，我為他感到非常興奮，過渡進展非常順利。艾德將出色地擔任你們的下一任財務長。

Thank you, Neal and Jeff. Good morning, everyone. I'm extremely pleased to become CECO's CFO. I have been with CECO through the transformative merger with Met-Pro over the past seven months now, and I am very excited about the future for CECO. I look forward to working with Jeff and the leadership team and the Board in the future. Thank you Jeff, Neal.

謝謝你，尼爾和傑夫。大家早安。我非常高興成為 CECO 的財務長。在過去的七個月裡，我一直在 CECO 工作，經歷了與 Met-Pro 的變革性合併，我對 CECO 的未來感到非常興奮。我期待未來與傑夫、領導團隊和董事會合作。謝謝傑夫、尼爾。

And with that, I'd like to turn the call back to Jeff before we open it up to questions.

在我們開始提問之前，我想把電話轉回給傑夫。

Thank you, Neal and Ed. We are continuing to implement our strategic initiatives and build a great foundation to create more shareholder value in the future. We have an even broader, stronger portfolio today than we did a year ago, and I'm very impressed with the integration of our recent acquisitions. We still have significant opportunity in front of us to create more shareholder value, and I want to highlight some of the key initiatives for 2014 and beyond.

謝謝你，尼爾和埃德。我們正在繼續實施我們的策略性舉措，並為未來創造更多的股東價值奠定良好的基礎。與一年前相比，我們今天的產品組合更加廣泛、更加強大，而且我們最近的收購整合給我留下了深刻的印象。我們面前仍然有巨大機會創造更多的股東價值，我想強調一下2014年及以後的一些關鍵舉措。

As we discussed in Q3, we have simplified and streamlined our organization of business into three core strategic technologies -- one, air pollution control; two, energy; and three, fluid handling and filtration. To facilitate the new structure, we have made a number of management and leadership enhancements as outlined in our press release. Ed Prajzner, Jerry D'Alterio, and Brent Becker are strong emerging talents -- strong emerging leadership talents within the CECO organization, which will be additive to our existing senior leadership team.

正如我們在第三季所討論的，我們已將業務組織簡化並精簡為三大核心戰略技術——一是空氣污染控制；二、能源；第三，流體處理和過濾。為了促進新結構的實施，我們做出了一些管理和領導方面的改進，如新聞稿中所述。 Ed Prajzner、Jerry D'Alterio 和 Brent Becker 都是 CECO 組織內實力雄厚的新興領導者才，他們將增強我們現有的高階領導團隊。

I'm very proud of what we accomplished in 2013 that we have successfully doubled the size of our business and our profitability but even more excited about our future in the next few years. We now have a substantial platform from which to take our business to even higher levels and reach our target aspiration of $100 million in EBITDA.

我對我們2013年的成就感到非常自豪，我們成功地將業務規模和盈利能力翻了一番，但我對未來幾年的未來更加興奮。我們現在擁有一個堅實的平台，可以將我們的業務提升到更高的水平，並實現 1 億美元的 EBITDA 目標。

I would like to take a couple of minutes to outline some of the key initiatives we are focusing on in our three-year plan to create shareholder value, and then we'll open up for any questions you may have.

我想花幾分鐘時間概述我們在三年計畫中為創造股東價值而重點關注的一些關鍵舉措，然後我們將回答你們的任何問題。

First, operational excellence. This is a never-ending, meticulous effort to enable increased margins over the next few years. We expect this will continue to drive margins, growth, and operational -- operating margins in the neighborhood of 15% and provide a structural, disciplined process as we run our business and grow revenues going forward.

第一，卓越營運。這是一項永無止境的、細緻的努力，旨在在未來幾年內提​​高利潤率。我們預計這將繼續推動利潤率、成長和營運——營業利潤率達到 15% 左右，並在我們開展業務和增加未來收入時提供結構化、規範的流程。

Number two, sales excellence. We continue to make strides in our sales initiative, our end-user growth, and market coverage expansion. Simply put, we are focused on more organic sales growth, and that is the principal theme behind our 2014 and 2015 sales excellence initiative.

第二，銷售卓越。我們在銷售計劃、最終用戶成長和市場覆蓋範圍擴大方面繼續取得進展。簡而言之，我們專注於更有機的銷售成長，這是我們 2014 年和 2015 年銷售卓越計畫背後的主要主題。

Number three, our One-CECO sales initiative. As we move ahead to build and grow the CECO platform, it is critical we create more value for our customers in market expansion, given the great best-available air pollution control technologies we now have to expand our customer base. We have consolidated our air pollution control products under a single One-CECO sales focus in order to become -- in order to provide a unified front-end solution provider to our customers. I believe this will provide us with a competitive advantage in the industry and a way for us to create market share, expand our margins -- and make no mistake, we do have the best available air pollution control technology in the market.

第三，我們的One-CECO銷售計劃。隨著我們不斷建構和發展 CECO 平台，鑑於我們現在擁有最優秀的空氣污染控制技術來擴大我們的客戶群，我們在市場擴張中為客戶創造更多價值至關重要。我們將空氣污染控制產品整合到單一的 One-CECO 銷售中心下，以便成為—為我們的客戶提供統一的前端解決方案提供者。我相信這將為我們在行業中提供競爭優勢，並為我們創造市場份額、擴大利潤提供途徑——毫無疑問，我們確實擁有市場上最好的空氣污染控制技術。

We measure the One-CECO sales initiative every week. Our team is tied to it from a growth and a compensation perspective. We've had a dozen One-CECO wins over the past few months, and the One-CECO sales dashboard is up to well over 150 new incremental proposals, RFQ's.

我們每週都會衡量 One-CECO 的銷售情況。從成長和薪酬的角度來說，我們的團隊與它緊密相連。在過去的幾個月裡，我們已經贏得了十幾個 One-CECO 項目，而 One-CECO 銷售儀表板上已經有超過 150 個新的增量提案和 RFQ。

Number four, China. Although CECO China continues to evolve as an important factor in our future growth strategy, we continue to explore every avenue of growth in China. New products, sales excellence, sales resources, in-country sales partnerships and sales alliances, and we continue to study smart acquisitions. To ensure China is a pillar in our future growth, we've launched new products and we've added numerous sales engineers last year, and we've expanded our manufacturing facility twice.

第四名，中國。儘管 CECO 中國作為我們未來成長策略的一個重要因素不斷發展，但我們仍將繼續探索中國市場的每個成長途徑。新產品、卓越的銷售、銷售資源、國內銷售夥伴關係和銷售聯盟，我們也將繼續研究明智的收購。為了確保中國成為我們未來成長的支柱，我們去年推出了新產品，增加了大量銷售工程師，並且兩次擴建了製造工廠。

And our team in China is growing. As mentioned in our organizational press release, we are excited that Brent Becker has joined the CECO leadership team, who is living in Shanghai, to lead, manage, and grow our CECO Asia business.

我們在中國的團隊正在不斷壯大。正如我們組織新聞稿中提到的那樣，我們很高興 Brent Becker 加入了居住在上海的 CECO 領導團隊，領導、管理和發展我們的 CECO 亞洲業務。

Number five, growing our reoccurring revenue base. We have well over $3 billion of installed engineered equipment running around the world. We will continue to target this opportunity and expand our presence. Today, around 1/3 of our business is reoccurring in nature, and over the next handful of years we want to grow that to 50%. Reoccurring revenue expands margins, improves predictability in our business, and generate high free cash flow.

第五，擴大我們的經常性收入基礎。我們已在世界各地安裝了價值超過 30 億美元的工程設備。我們將繼續抓住這個機會並擴大我們的影響力。如今，我們約有三分之一的業務屬於重複性業務，在未來幾年內，我們希望將這一比例成長到 50%。經常性收入擴大了利潤率，提高了業務的可預測性，並產生了高自由現金流。

And lastly, M&A. We continue to believe the acquisition market is fertile, attractive, and a key strategic opportunity for CECO. We have built a great platform on which to be an industry leader, and we will continue to look for attractive, accretive, smart, bolt-on acquisitions as one element of our long-term strategy.

最後是併購。我們仍然相信收購市場是肥沃的、有吸引力的，並且是 CECO 的關鍵策略機會。我們已經建立了一個成為產業領導者的優秀平台，我們將繼續尋找有吸引力的、增值的、明智的、附加的收購作為我們長期策略的一個要素。

The CECO team is becoming very efficient at successfully integrating acquisitions and managing those businesses into our platform and our successful processes. Our team has never been stronger as I enter my fifth year at the helm.

CECO 團隊在成功整合收購並將這些業務管理到我們的平台和成功流程方面變得非常有效率。在我執掌公司第五年之際，我們的團隊從未如此強大。

Please note the five or six core fundamental areas of focus should not be new to our employees, investors, or key stakeholders. We've been making headway on many of these for several years now with much more ahead.

請注意，五到六個核心基本關注領域對於我們的員工、投資者或主要利害關係人來說應該並不新鮮。幾年來，我們在許多方面已經取得了進展，並且未來將有更多的進展。

I also want to provide some color around the outlook of our three core technology segments, which we shared with you in Q3. And as we move through 2014, we will be reporting out in these three segments. The air pollution control segment accounts for roughly 40% of our revenues and includes a diverse set of excellent technologies used in many large industrial plants. Chemical plants, petrochemical plants, utilities, refineries, large automotive, large municipalities, alternative energy, and metals. The broad drivers for end-market growth in these segments are generally large industrial activity levels. We expect the air pollution control market will grow globally at a higher rate than GDP as we read various industries industry indices.

我也想對我們在第三季與大家分享的三個核心技術領域的前景做一些介紹。隨著 2014 年的到來，我們將分三個部分進行報告。空氣污染控制部門約占我們收入的 40%，包括許多大型工業工廠使用的多種優秀技術。化工廠、石化廠、公用事業、煉油廠、大型汽車、大型市政當局、替代能源和金屬。這些領域終端市場成長的廣泛驅動力通常是大規模的工業活動水準。根據我們閱讀的各個行業指數，我們預期全球空氣污染控制市場的成長速度將高於 GDP 的成長速度。

Number two, our energy segment. The energy segment is roughly 30% of our revenues and includes a variety of products used primarily in the power generation markets. These include traditional, coal, and natural gas power facilities. The key end-market drivers for this segment include global natural gas and traditional utility plants.

第二，我們的能源部門。能源部門約占我們收入的 30%，包括主要用於發電市場的各種產品。其中包括傳統、煤炭和天然氣發電設施。該領域的主要終端市場驅動因素包括全球天然氣和傳統公用事業工廠。

And thirdly, fluid handling and filtration. This segment accounts for approximately 30% of our revenues and is comprised of a dozen key industries, as I mentioned above. Around the world with best-in-class brands, high-performance recognition, and severe-duty applications.

第三，流體處理和過濾。正如我上面提到的，這一部分約占我們收入的 30%，由十幾個關鍵產業組成。在全球範圍內擁有一流的品牌、高性能認可和嚴苛的應用。

All three segments have significant runway to grow globally and meet our future margin expectations and growth strategies.

所有三個部門都具有在全球範圍內實現成長的巨大潛力，並能滿足我們未來的利潤預期和成長策略。

In summary, I would like to say that we are all very excited about our team, our Company's current platform, and our future opportunities to create shareholder value. We will continue to focus on our mid- to long-term goal of building a $100 million EBITDA business within our core business and related technologies, and we believe we have established a solid, strategic pathway to achieve our goals.

總而言之，我想說，我們都對我們的團隊、我們公司目前的平台以及我們未來創造股東價值的機會感到非常興奮。我們將繼續專注於我們的中長期目標，即在我們的核心業務和相關技術中打造 1 億美元的 EBITDA 業務，並且我們相信我們已經建立了一條堅實的戰略路徑來實現我們的目標。

We look forward to talking with you and answering any questions you may have. So operator, please open up for any questions.

我們期待與您交談並回答您的任何問題。接線員，如有任何問題請隨時提問。

(Operator Instructions). Rob Stone, Cowen.

（操作員指令）。羅布·斯通，考恩。

Congratulations on getting so much done. My first question, Jeff is with respect to the operating margin goal, II think going from 13.6% to 15% in future years. Do you expect that to come principally from higher gross margins or further operating synergies? And how should we think about that for this year, for instance? Thanks.

恭喜你完成了這麼多工作。我的第一個問題，傑夫，關於營業利潤率目標，我認為未來幾年將從 13.6% 上升到 15%。您是否認為這主要來自於更高的毛利率或進一步的營運綜效？例如，我們今年該如何考慮這個問題？謝謝。

Well, growing operating margins is something we are all very focused on and, quite honestly, the general managers are compensated on. But the answer is -- the first part of that would be the One-CECO air pollution control technology growth, I think, has a lot of value creation over the next couple of years. We've got a long way to go to create -- to sell more products and to combine the solution of the various technologies. We've made a lot of headway there, but we're not even 50% of where we need to be in terms of growing the One-CECO.

嗯，提高營業利潤率是我們大家都非常關注的事情，坦白說，這也是總經理獲得薪資的標準。但答案是——其中的第一部分是One-CECO空氣污染控制技術的成長，我認為，在未來幾年將創造許多價值。我們還有很長的路要走才能創造——銷售更多的產品並結合各種技術的解決方案。我們在那裡已經取得了很大進展，但就 One-CECO 的發展而言，我們還未達到所需目標的 50%。

I do think there's a little bit of synergies left, a little bit of streamlining, but I also think we'll see some uptick in gross profit. And with the sales excellence driving global revenue, we should see a little bit of operating leverage on the P&L. So, those three or four things would probably be the drivers of achieving our operating margin aspirations, Rob.

我確實認為還存在一些協同效應，一些精簡措施，但我還認為我們會看到毛利上升。隨著銷售業績的優異推動全球營收的成長，我們應該會看到損益表上出現一些營運槓桿。所以，這三、四件事可能是實現我們營業利潤率目標的驅動力，羅布。

Okay. My second question is with respect to bookings and the backlog, you know, relatively flat Q3 versus Q4. But you mentioned that trends have been improving. Can you provide any more color on how bookings are proceeding this quarter and from which industries or geographies? Thanks.

好的。我的第二個問題是關於預訂和積壓訂單，您知道，第三季與第四季相比相對持平。但您提到趨勢正在改善。您能否提供更多關於本季預訂情況以及來自哪些行業或地區的資訊？謝謝。

You know, we are starting the year pretty solid -- pretty solid with bookings. We picked up some nice momentum in Q4. Q4 bookings were up both with the acquisition bookings and legacy CECO bookings. So we are pretty pleased with Q4 bookings, and that carries forward into Q1 of this year.

您知道，我們今年的開局相當不錯——預訂量相當不錯。我們在第四季度獲得了一些良好的發展勢頭。第四季的預訂量隨著收購預訂量和傳統 CECO 預訂量均增加。因此，我們對第四季度的預訂情況非常滿意，這種滿意將延續到今年第一季。

China, we picked up some nice bookings in China. Our parts activity and our contract services business picked up some nice business. And our quotation activities today are slightly stronger than they were in Q4. But I would say that activity is in contract services, our cyclone business in China. But I'm pretty encouraged by all segments, Rob.

中國，我們在中國獲得了一些不錯的預訂。我們的零件業務和合約服務業務獲得了一些不錯的業績。我們今天的報價活動比第四季略強。但我想說的是，這項活動涉及合約服務，也就是我們在中國的旋風業務。但是我對所有部分都感到非常鼓舞，羅布。

Great. Thank you. I'm going to jump back in the queue.

偉大的。謝謝。我要重新回到佇列中。

Sean Hannan, Needham and Company.

漢南 (Sean Hannan)，尼德漢姆公司。

So I have a number of questions here. I'm going to ask something quickly for Neal Neal as well as then for Jeff. Neal, I'm sorry, you had mentioned a few factors to consider where we should start our baseline as we think about revenues for 2014. Can you repeat that for us?

所以我這裡有幾個問題。我要快速詢問 Neal Neal 和 Jeff 一些問題。尼爾，很抱歉，您提到了我們在考慮 2014 年收入時應該考慮的幾個因素，我們應該從哪裡開始製定基準。您能再說一次嗎？

And then Jeff, on an aggregate level, I don't think that we saw organic growth in terms of revenues. You obviously targeted that in your key initiatives. But can you perhaps call out at a business level what may have had organic growth in the quarter versus what contracted and maybe any additional commentary for puts and takes of that? And then I've got a follow-up to that. Thanks.

傑夫，從總體來看，我認為我們並沒有看到收入的自然成長。您顯然在您的主要舉措中瞄準了這一點。但是，您能否從業務層面說明本季哪些業務可能實現了有機成長，哪些業務出現了萎縮，以及對此有何補充評論？然後我會對此進行跟進。謝謝。

Sure, go ahead, Neal.

當然，請說吧，尼爾。

Sure, so let me start, Sean. The baseline -- if you looked at our pro forma 2013 revenues carving out a non-core water treatment chemicals business that we sold at the very beginning of 2014, the pro forma revenue would be $260 million. So that's sort of the 12-month baseline for 2013. And as I mentioned, we've got some nice momentum with just under $69 million of Q4 sales. But for modeling purposes, the $260 million is a good baseline number.

當然，那麼讓我開始吧，肖恩。基準－如果您查看我們 2013 年的預測收入，剔除我們在 2014 年初出售的非核心水處理化學品業務，預測收入將為 2.6 億美元。這就是 2013 年 12 個月的基準。正如我所提到的，我們第四季的銷售額略低於 6,900 萬美元，發展勢頭良好。但就建模目的而言，2.6 億美元是一個很好的基準數字。

Okay. Thanks. And then Jeff, I don't know if you have any comments around that organic question.

好的。謝謝。然後傑夫，我不知道你對這個有機問題有什麼評論。

Yes, I think the Q4 was quite strong for us. We're pretty pleased with Q4. I think have a -- we're pretty excited about 2014. But regarding the quarter, our energy sector, EFFOX and Aarding, had a very good quarter. Principally, EFFOX had a record year. Our cyclone technology group which is FisherKlosterman and Buhl, had a great quarter and a very good year. So they had a big pickup in Q4. And our parts ducting business did quite nicely in Q4. And then China, China had a strong Q4 as well. So those are the things that, from an uptick in Q4, carried us.

是的，我認為第四季對我們來說相當強勁。我們對第四季非常滿意。我認為——我們對 2014 年感到非常興奮。但就本季而言，我們的能源部門 EFFOX 和 Aarding 表現非常好。總體而言，EFFOX 今年取得了創紀錄的成績。我們的旋風技術團隊 FisherKlosterman 和 Buhl 在本季度取得了出色的成績，並且度過了非常好的一年。因此他們在第四季度取得了巨大的成長。我們的零件管道業務在第四季度表現相當不錯。然後是中國，中國第四季也表現強勁。因此，從第四季開始，這些就是推動我們前進的因素。

Okay. And then as you had identified this in the key initiatives, can you elaborate a little bit more for us for how you expect to drive your organic growth? Is this really in capturing what may materialize in broader growth within the environment? Or in the absence of what we should see as a broader pickup in that environment, is there really more of a share capture and better penetration that you expect or anticipate? Any color around that would be helpful.

好的。然後，正如您在關鍵舉措中提到的那樣，您能否為我們詳細闡述您希望如何推動有機成長？這是否真的能夠捕捉到環境中更廣泛的成長中可能實現的東西？或者，在我們所看到的這種環境下沒有出現更廣泛的回升的情況下，是否真的會出現您所期望或預期的更多市場份額和更好的滲透率？周圍的任何顏色都會有幫助。

Yes, sure. Growing our organic growth is probably our top priority. We spent a few years doing some pretty good things on the operational excellence side. Right now, sales excellence is a priority across the organization. So every sales leader, general manager, and the hundreds of sales engineers we have are very focused on pulling in more business organically. We have sales dashboard set up each week to go through them to make sure the organization is doing all they can to capture good business globally. We've added sales capacity and some sales leadership. So that's a top priority.

是的，當然。促進我們的有機成長可能是我們的首要任務。我們花了幾年時間在卓越營運方面做了一些相當不錯的事情。目前，卓越的銷售業績是整個組織的首要任務。因此，我們的每一位銷售主管、總經理以及數百名銷售工程師都非常注重自然地吸引更多業務。我們每週都會設定銷售儀表板來檢查它們，以確保組織盡其所能在全球範圍內獲得良好的業務。我們增加了銷售能力和一些銷售領導力。所以這是首要任務。

As part of that, part of sales excellence is this whole One-CECO sales initiative we launched with the acquisition and merger. We have a dozen excellent air pollution control technologies that were being sold independently over their life. Now we are bringing those together under one focus, one roof if you will, and that's created a whole host of activity for us.

作為其中的一部分，卓越銷售的一部分是我們透過收購和合併推出的整個 One-CECO 銷售計劃。我們有十幾種優秀的空氣污染控制技術，這些技術在其整個生命週期中都被獨立銷售。現在，我們將它們集中到一個焦點，或者說一個屋簷下，這為我們創造了大量的活動。

As I mentioned, over the past few months we've created well over 150 new RFQ's just on that One-CECO air pollution control technology initiative. And we've closed probably a dozen or more One-CECO air pollution control projects. And this is incremental given the CECO Met-Pro merger. So that's a very important focus in the organization in growing organically. And I could -- I can share with you some of the dashboard and some of the metrics we use if you need that.

正如我所提到的，在過去的幾個月裡，我們僅針對 One-CECO 空氣污染控制技術計畫就創建了超過 150 個新的 RFQ。我們可能已經關閉了十幾個甚至更多的One-CECO空氣污染控制項目。鑑於 CECO Met-Pro 合併，這是增量。因此，這是組織有機成長的一個非常重要的重點。如果您需要的話，我可以與您分享一些儀表板和我們使用的一些指標。

Okay. That's something perhaps I can follow-up on. Last question for the moment and I'll jump back in the queue. You had some pushes or some order delays that you had talked about from your third quarter, and I also believe some of that may have happened a little bit in the fourth quarter, at least earlier on. Can you characterize or quantify how much of that has now been realized now that we are kind of through two months of the first quarter now in 2014? And what are the expectations for how some of that actually either comes through if there is anything remaining? Thanks.

好的。我或許可以跟進此事。這是目前的最後一個問題，我將重新回到隊列中。您在第三季度談到了一些訂單推遲或延遲的情況，而且我相信其中一些情況可能在第四季度，至少在早些時候已經出現過。 2014 年第一季已經過去兩個月了，您能否描述或量化目前已實現的目標有多少？如果還有剩餘的話，對於其中一部分的實際實現有什麼期望？謝謝。

Yes, sure, Sean. We had a rock-solid Q4. The business has performed very well both in bookings and in project execution and in gross profit. And we did message, there was three or four important jobs in Q3 that got pushed into Q4, and those took place. So, we finished up Q4 quite well. We pulled in a few jobs from Q3, and now we turn the page into 2014 and we start our bookings and billings and our sales excellence.

是的，當然，肖恩。我們的第四季表現十分穩健。該業務在預訂量、專案執行量和毛利方面均表現非常出色。我們確實傳達了這樣的訊息：第三季度有三、四項重要工作被推遲到了第四季度，而這些工作也確實完成了。所以，我們很好地完成了第四季的任務。我們從第三季接手了一些工作，現在我們翻開 2014 年的新篇章，開始實現預訂、帳單和銷售卓越。

So, yes, there was a few jobs that carried into Q4, but we are now finished with that. And with $100 million in backlog, we're pretty excited of getting that process equal to or better margins than we booked it with. And we're pretty excited about our first couple of months of bookings.

所以，是的，有一些工作延續到了第四季度，但我們現在已經完成了。由於有 1 億美元的積壓訂單，我們非常高興能夠讓流程的利潤率達到或超過我們預定的水平。我們對前幾個月的預訂情況感到非常興奮。

Okay, great. Thanks for all the color.

好的，太好了。感謝所有的色彩。

(Operator Instructions). [Jerry] Clayton, [Boenning].

（操作員指令）。 [傑瑞] 克萊頓，[博寧]。

Congratulations. It looks like you're starting -- you're executing very well on the integration side. A couple of quick questions specifically about the Met-Pro side, revenue coming in at about $23 million. I was curious as to how you felt about that revenue. And it seems maybe flat to down a little bit. I know it sounds like you also divested of a business line in there. Curious as to how you can get some of that business jump-started up and running a little bit more. Any thoughts on that?

恭喜。看起來你們已經開始了——你們在整合方面做得非常好。我特別想問幾個關於 Met-Pro 方面的快速問題，其收入約為 2300 萬美元。我很好奇您對這筆收入有何感受。看起來可能持平或略有下降。我知道這聽起來好像你也剝離了其中的一條業務線。好奇您如何讓部分業務更快速地啟動和運行。對此有什麼想法嗎？

Well, I'll say a couple of comments, and I'm sure Neal will add in. But that was Met-Pro's best quarter of the year. We're pretty excited about how they performed. Right now, we are blending the businesses together as One-CECO. We don't talk too much about Met-Pro or Aarding because the businesses are feathered together. Some of the Met-Pro businesses are integrated with the legacy CECO businesses and so forth and so on. They are part of the sales excellence; we have a good team on the field, and we're pretty excited about what we are quoting and we are booking right now.

好吧，我會說幾點評論，我相信尼爾也會補充。但這是 Met-Pro 今年最好的季度。我們對他們的表現感到非常興奮。目前，我們正在將這些業務整合為One-CECO。我們不會多談論 Met-Pro 或 Aarding，因為這兩家公司的業務是緊密相連的。 Met-Pro 的一些業務與傳統的 CECO 業務等進行了整​​合。他們是銷售卓越的一部分；我們在球場上擁有一支優秀的團隊，我們對現在的報價和預訂感到非常興奮。

Prior to this week we measured all of the businesses' RFQ's in Q1 versus Q4. And, probably, you know three quarters out of three quarters of them show an uptick in RFQ activity. So we're pretty excited about 2014, and I think Met-Pro is going to be a huge part of that.

在本週之前，我們衡量了所有企業第一季與第四季的 RFQ。而且，您可能知道其中四分之三的 RFQ 活動有所增加。所以我們對 2014 年感到非常興奮，我認為 Met-Pro 將在其中發揮重要作用。

Okay. Then --

好的。然後 -

Okay. (Inaudible) I would just add, Jerry, that it's good, solid revenue, profitable revenue, and really a lot of, call it, just singles and doubles. The big events didn't occur. But a lot of the just the day-to-day business was very solid.

好的。 （聽不清楚）傑瑞，我只想補充一點，這是很好的、穩定的收入，有利可圖的收入，而且真的有很多，可以稱之為單打和雙打。大事沒有發生。但很多日常業務都非常穩健。

I've got it. I understand that well. Okay. And then on the M&A front, any area that is going to be of particular interest of the three new I guess the APC and fluid handling, et cetera?

我明白了。我非常理解這一點。好的。然後在併購方面，我猜這三個新領域中哪個領域會引起特別的興趣，例如 APC 和流體處理等等？

You know, Jerry, we are a big believer in all three of those segments. The air pollution control technology globally, the energy sector, and the fluid handling. All three of those businesses have nice runway, excellent margin expansion capabilities -- and so we're looking at all three of those. We have eight or nine -- the Board has eight or nine strict criteria for what we acquire in terms of how it fits, the accretiveness, how we can run the business, and the platform. So the pipeline is full but we have some pretty strict requirements.

你知道，傑瑞，我們對這三個部分都非常相信。全球空氣污染控制技術、能源領域與流體處理。這三項業務都擁有良好的發展前景和出色的利潤擴張能力——因此，我們正在關注這三項業務。董事會對我們收購的項目有八、九個嚴格的標準，包括如何適合、增值、如何經營業務、平台。因此，管道已滿，但我們有一些非常嚴格的要求。

But the short answer is we are very committed to all three sectors, both organic growth, sales excellence, and then bolt-on accretive acquisitions.

但簡而言之，我們非常致力於所有三個領域，包括有機成長、卓越銷售以及附加增值收購。

Got it. All right, I appreciate it. Thank you.

知道了。好的，我很感激。謝謝。

Rob Crystal, Goldman Sachs.

高盛的羅布·克里斯托（Rob Crystal）。

I have two questions. One, I guess was hoping you could update us if you are ahead of target or you are above your synergy target would be the first one. And then the second one would be -- I didn't quite follow the question about the baseline revenue for 2014. Was that $260 million before organic growth and/or contraction? Thanks.

我有兩個問題。首先，我希望你能告訴我們你是否提前實現了目標，或者你是否超過了你的協同目標。然後第二個問題是──我不太明白關於 2014 年基準收入的問題。在有機成長和/或收縮之前，這個數字是 2.6 億美元嗎？謝謝。

We believe we are well ahead of our synergy target. Obviously, we are very streamlined and very synergy focused on all acquisitions, and we hope to pick up more throughout 2014. But the bulk of it is complete.

我們相信我們已經遠遠超越了我們的協同目標。顯然，我們對所有收購都非常精簡，並且非常注重協同效應，我們希望在 2014 年實現更多收購。但大部分收購已經完成。

And one of the things to remember -- I know we closed on the acquisition on August 31, but in reality, when we announced the merger in April the team spent several months preparing. So we are well ahead of the synergies.

需要記住的一件事是——我知道我們在 8 月 31 日完成了收購，但實際上，當我們在 4 月宣布合併時，團隊花了幾個月的時間來準備。因此我們在協同效應方面已經遙遙領先。

Regarding your other question, given what -- given the divestiture -- the divesting of a certain business, we are coming up with a run rate of about $260 million before organic growth.

關於您的另一個問題，考慮到剝離——剝離某項業務，我們得出的有機增長前的運行率約為 2.6 億美元。

Thanks. That was very helpful.

謝謝。這非常有幫助。

We said differently if all the businesses had been part of CECO from January 1 and if our Pristine business, which is the business -- the non-core business which we sold had been excluded, the 2013 revenues would've been $260 million. And, again, we have just had a stronger second half and had a particularly strong fourth quarter.

我們的說法有所不同，如果從 1 月 1 日起所有業務都成為 CECO 的一部分，並且我們的 Pristine 業務（即我們出售的非核心業務）被排除在外，那麼 2013 年的收入將達到 2.6 億美元。而且，我們剛剛度過了一個更加強勁的下半年，第四季度表現尤為強勁。

Thank you, Jeff. Thank you, Neal.

謝謝你，傑夫。謝謝你，尼爾。

(Operator Instructions). William Bremer, Maxim Group.

（操作員指令）。威廉‧布雷默，馬克西姆集團。

Good morning, Jeff. Nicely done.

早安，傑夫。做得好。

Thank you. Good morning, Bill.

謝謝。早安，比爾。

Maybe just give us a little bit of a recap what you are seeing globally on the political front in terms of some of the regulations that may impact your business long-term.

也許您可以向我們簡單回顧一下您在全球範圍內看到的政治形勢，即一些可能對您的業務產生長期影響的法規。

Sure. We are seeing some very nice ministry changes in China. So we are very excited about our opportunity there. That's why we keep expanding our footprint and expanding our facility and adding products into the China market. So the China EPA ministry has enacted some significant things that will help us and help their country.

當然。我們看到中國政府部門正在發生一些非常好的變化。因此，我們對在那裡獲得的機會感到非常興奮。這就是我們不斷擴大業務範圍、擴大設施並在中國市場添加產品的原因。因此，中國環保部頒布了一些重要的法規，這些法規將對我們和他們的國家都有幫助。

We are seeing a little bit in India. Europe has always been very stringent, but I would say Asia would be number one. And we are always excited about the continuation of the regulations here in the United States as well.

我們在印度看到了一些。歐洲一直非常嚴格，但我想說亞洲是第一名。我們也一直對這些法規在美國的延續感到興奮。

Okay, great. Thank you. That's all I have.

好的，太好了。謝謝。這就是我所擁有的一切。

Rob Stone, Cowen.

羅布·斯通，考恩。

Jeff, just a follow-up on your comment about recurring revenue, about 1/3 targeting 60%. Can you say in which of the three segments, the way you will report the business now, you have the most opportunity to grow? Or how much recurring revenue is in the three segments today? Thanks.

傑夫，我只是想跟進一下你關於經常性收入的評論，大約 1/3 的目標是 60%。您能否說出在現在報告業務的這三個部分中，哪一個部分最有成長機會？或者說，目前這三個部分的經常性收入有多少？謝謝。

Yes. I would say the contract services and the component parts business and the fabrics -- the engineered ducting business is principally our highest reoccurring revenue business with the opportunity to grow. That is separate from our OEM business. So contract and our parts business is one we continue to invest in which drives the reoccurring revenue for us and will help us achieve our 50% aspiration. And separately, we have the divisions, the OEMs, that provide the parts and services to the 3 billion-plus installed base. I would say the OEM side of it is a growth opportunity for us. But I would say the parts -- the component parts and the contract services and the ducting business can grow at a faster rate. And if you blend those two together over the next few years, both the organic and potential inorganic activities, that's how we'll achieve our 50%.

是的。我想說的是，合約服務、零件業務和織物——工程管道業務主要是我們經常性收入最高的業務，並且具有成長機會。這與我們的 OEM 業務是分開的。因此，我們將繼續投資合約和零件業務，這將為我們帶來經常性收入，並幫助我們實現 50% 的目標。另外，我們還有部門和 OEM，為超過 30 億的用戶提供零件和服務。我想說 OEM 方面對我們來說是一個成長機會。但我想說的是，零件、合約服務和管道業務可以以更快的速度成長。如果在未來幾年內將有機活動和潛在的無機活動結合起來，我們就能實現 50% 的目標。

But it is an important metric for the team, and it's very important to our long-term strategy to reach that kind of reoccurring level.

但對於團隊來說，這是一個重要的指標，對於我們的長期策略來說，達到這種重複水準非常重要。

I know you're not carving out Met-Pro as a stand-alone entity anymore, but can you say roughly how much of Met-Pro's business historically was recurring revenue?

我知道您不再將 Met-Pro 拆分為獨立實體，但您能否大致說一下 Met-Pro 歷史上有多少業務是經常性收入？

It actually was pretty close to CECO's from a pure OEM parts and service perspective. They were in that 30% range. We -- CECO had the contract services in a separate component parts ducting business that provided that reoccurring revenue stream. But from an OEM basis, OEM versus aftermarket, they were roughly 70%-30%, not too far from the CECO model.

從純 OEM 零件和服務的角度來看，它實際上與 CECO 非常接近。他們處於 30% 的範圍內。我們－CECO 在單獨的零件管道業務中擁有合約服務，可提供經常性收入來源。但從 OEM 基礎來看，OEM 與售後市場的比例約為 70%-30%，與 CECO 模式相去不遠。

Great. And my final question is with respect to the debt that you took on for the acquisition. Any update on how long you think it might take to extinguish that?

偉大的。我的最後一個問題是關於您為收購而承擔的債務。您認為需要多長時間才能消除這種影響？

Well, I will say we are on track for what we aspired -- what we messaged in August and potentially before that. We'd like to be -- have a debt to EBITDA ratio of about a 1X by the end of the year. And that's our aspiration. I think we are on track to do that.

好吧，我想說的是，我們正在朝著我們所期望的方向前進——我們在八月以及可能在那之前就表達了這樣的信息。我們希望到今年年底，債務與 EBITDA 比率達到 1 倍左右。這就是我們的願望。我認為我們正在朝著這個目標前進。

Great. Thank you, Jeff.

偉大的。謝謝你，傑夫。

(Operator Instructions). Sean Hannan, Needham and Company.

（操作員指令）。漢南 (Sean Hannan)，尼德漢姆公司。

Just taking a follow-up. Just a follow-up on some of the key initiatives here. So China -- what is your viewpoint today in terms of having the right product or offering there? How do you feel you need to expand or build that? Is there anything you can elaborate on for that overall approach as you identified it as a key initiative? Thanks.

只是進行跟進。這只是對這裡的一些關鍵舉措的後續跟進。那麼中國—就目前在中國提供合適的產品或服務而言，您有何看法？您覺得需要如何擴展或建構它？由於您認為這是一項關鍵舉措，您能否詳細說明一下這個整體方法？謝謝。

Sure. Great question. Something we talk about frequently. First off, we sell filters -- two types of filter technology -- two types of cyclone technology and dampers and diverters in China. Those are our core business, and we are gearing up to sell more and more of those deeper into the China markets.

當然。好問題。我們經常談論的事情。首先，我們在中國銷售過濾器——兩種過濾技術——兩種旋風技術以及阻尼器和分流器。這些都是我們的核心業務，我們正準備將越來越多的產品深入中國市場。

What we've also done in the last quarter is we've launched the Met-Pro dust collector technology and the Met-Pro Duall scrubber technology into China. So we can sell it, market it, fabricate it, and administrate it all in China. That's our primary focus.

我們在上個季度也向中國推出了 Met-Pro 除塵器技術和 Met-Pro Dualll 洗滌器技術。因此我們可以在中國銷售、行銷、製造和管理它。這是我們的主要關注點。

But there are a few things with Rotary -- RTO oxidizer technologies. There are some dust collector technologies that we are forming strategic alliances with a few companies. So right now we have a few sales alliance agreements between CECO and some Chinese -- a couple of Chinese companies that will help us sell more and gain channel and gain more access to end-users.

但是旋轉-RTO氧化器技術存在一些問題。我們正在與一些公司就一些除塵器技術建立策略聯盟。因此，目前我們與 CECO 和一些中國公司簽訂了銷售聯盟協議——幾家中國公司將幫助我們增加銷售量、獲得管道並獲得更多最終用戶。

We're also looking at some other damper technologies to support our EFFOX business. We are looking at a host of filter technologies that we'd like to either form strategic alliances or potentially a small bolt-on. And the more we do that with alliances and adding resources, we gain deeper access into channels.

我們也正在研究一些其他阻尼器技術來支援我們的 EFFOX 業務。我們正在研究一系列過濾技術，希望與其形成策略聯盟或進行小規模的附加合作。我們透過聯盟和增加資源做得越多，就越能深入管道。

Some of the markets are wide open to us and we are doing well. Some of the markets you have to go through design institutes which we are slowly and surely penetrating. But those are little bit more challenging; those are little more controlled industries. We keep hiring tier 1 sales engineers and adding rep agents.

有些市場對我們敞開了大門，而且我們做得很好。有些市場需要透過設計院才能進入，而我們正在緩慢而穩定地滲透這些市場。但這些都更具挑戰性；這些是受控程度稍高的行業。我們不斷招募一級銷售工程師並增加銷售代理。

But there's a host of products we'd like to add to our portfolio in China, just for the China market. But at the same time, there's a few products that -- a few world-class products Met-Pro has that are now -- we now just launched into China. So we are looking for some nice organic growth from that.

但我們希望在中國的產品組合中增加大量產品，專門針對中國市場。但與此同時，Met-Pro 的一些世界級產品才剛進入中國市場。因此，我們希望從中實現一些良好的有機成長。

Okay. That's actually very helpful. And then, last question here. We've heard a lot about the synergies that you've been reaching that we are getting as a consequence of the Met-Pro deal. You've also made some comments, Jeff, that you are well ahead on the synergy targets. Just want to see if we can get a little bit more clarification from a cost standpoint as well as from a revenue standpoint. Are there more costs synergies that may come and materialize here in 2014 is a consequence? What have we realized thus far -- I know you've commented we've exceeded that $9 million target.

好的。這確實非常有幫助。然後，這是最後一個問題。我們聽到了很多關於你們透過 Met-Pro 交易所取得的協同效應的消息。傑夫，你也發表了一些評論，說你在協同目標方面遙遙領先。只是想看看我們是否可以從成本和收入的角度獲得更多的說明。 2014 年是否會出現更多的成本綜效並實現？到目前為止我們實現了什麼——我知道您已經評論說我們已經超出了 900 萬美元的目標。

And then, on the revenue front, is there a way we can perhaps elaborate on that as well? We are hearing that they are advancing. Is this in terms of business to bid on? Is this clearly materializing in actual bookings? Or are we talking about that we are actually getting some revenue contribution from that in some of the specific businesses at this point in time? Thanks.

那麼，在收入方面，我們是否可以詳細說明一下？我們聽說他們正在前進。這是就業務競標而言的嗎？這在實際預訂中是否明顯實現？或者我們說的是，我們實際上目前從某些特定業務中獲得了一定的收入貢獻？謝謝。

Well, first off, our aspirations for organic revenue growth are above average. That's part of our sales excellence team. That's part of our annual operating plan. So we are looking for significant, significant growth.

首先，我們對有機收入成長的期望高於平均值。這是我們卓越銷售團隊的一部分。這是我們年度營運計劃的一部分。因此，我們期待實現顯著的成長。

Secondarily, regarding the synergy piece, I would use -- in your modeling, I would use 19%. I would use slightly less than 19% in your SG&A modeling for 2014. That's a good number. If you look at where the businesses -- the two businesses were in 2012 and you calculate that, that total SG&A number, we are basically at that synergy number if you add on the Adwest and Aarding. So I would use that 19% for modeling purposes.

其次，關於協同效應部分，我會使用——在您的建模中，我會使用 19%。我會在您 2014 年的銷售、一般和行政費用模型中使用略低於 19% 的數字。這是一個不錯的數字。如果你看一下這兩家公司在 2012 年的業務狀況，然後計算一下銷售、一般及行政費用總額，再加上 Adwest 和 Aarding，我們基本上就達到了協同效應數。所以我會將這 19% 用於建模目的。

If we have -- there's a couple of plants -- continuing plant consolidations that will bring us a little bit of cost out, but I wouldn't put some big points on the board for that. But there is some stranded cost we'll see. We're in the process of selling three or four facilities. So that would be some stranded operating costs for that, but not a whole lot. But we continue to meticulously look for ways of running leaner, smarter, and faster because that's what our shareholders expect of us.

如果我們有——有幾家工廠——繼續進行工廠合併，這將為我們帶來一點成本，但我不會為此在董事會上提出很大的要求。但我們會看到一些擱淺成本。我們正在出售三到四個設施。因此，這會產生一些擱淺的營運成本，但不會太多。但我們將繼續精心尋找更精簡、更聰明、更快速的營運方式，因為這是我們股東對我們的期望。

And I think we are in real good shape now. Now the organization is focused on sales excellence and the One-CECO. I do think the One-CECO sales initiative for the air pollution control business is a way to drive revenue, provide a broader solution to the end-users. And if we do that right, we should see a little bit of pickup in margin as we go through 2014. I hope that helps you, Sean.

我認為我們現在的狀態非常好。現在該組織專注於卓越銷售和 One-CECO。我確實認為針對空氣污染控制業務的 One-CECO 銷售計劃是一種增加收入的方式，可以為最終用戶提供更廣泛的解決方案。如果我們做得對，到 2014 年，我們應該會看到利潤率略有回升。希望這對你有幫助，肖恩。

That does. Thanks very much, Jeff.

確實如此。非常感謝，傑夫。

We have cleared the queue. (Operator Instructions). There are no callers in queue at this time. I would now like to turn the call back to Mr. Jeff Lang for any closing remarks.

我們已經清理了隊列。 （操作員指令）。此時隊列中沒有呼叫者。現在我想請 Jeff Lang 先生做最後發言。

Thank you for joining our call today. We look forward to talking with you in the future. Thank you.

感謝您今天參加我們的電話會議。我們期待將來與您交談。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。