10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File No. 0-7099

CECO ENVIRONMENTAL CORP.

(Exact name of registrant as specified in its charter)

Delaware	13-2566064
(State or other jurisdiction of Incorporation or organization)	(IRS Employer Identification No.)

4625 Red Bank Road, Cincinnati, Ohio	45227
(Address of principal executive offices)	(Zip Code)

(513) 458-2600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one)

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practical date: 26,442,164 shares of common stock, par value $0.01 per share, as of August 3, 2015.

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

For the quarter ended June 30, 2015

Table of Contents

Part I – Financial Information	2
Item 1. Financial Statements	2
Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014	2
Condensed Consolidated Statements of Income for the three-month and six-month periods ended June  30, 2015 and 2014	3
Condensed Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2015 and 2014	4
Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2015 and 2014	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures about Market Risk	33
Item 4. Controls and Procedures	33
Part II – Other Information	35
Item 1. Legal Proceedings	35
Item 1A. Risk Factors	35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3. Defaults Upon Senior Securities	35
Item 4. Mine Safety Disclosures	35
Item 5. Other Information	35
Item 6. Exhibits	36
Signatures	37

1

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)	(unaudited) JUNE 30, 2015			DECEMBER 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	17,089		$	19,362
Accounts receivable, net		65,767			58,394
Costs and estimated earnings in excess of billings on uncompleted contracts		31,810			24,371
Inventories, net		22,752			23,416
Prepaid expenses and other current assets		8,185			9,046
Prepaid income taxes		4,870			4,190
Assets held for sale		1,544			4,188
Total current assets		152,017			142,967
Property, plant and equipment, net		17,165			18,961
Goodwill		169,324			167,547
Intangible assets-finite life, net		52,420			58,398
Intangible assets-indefinite life		19,528			19,766
Deferred charges and other assets		6,287			6,726
	$	416,741		$	414,365
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of debt	$	12,317		$	8,887
Accounts payable and accrued expenses		56,504			51,462
Billings in excess of costs and estimated earnings on uncompleted contracts		14,177			14,597
Income taxes payable		759			405
Total current liabilities		83,757			75,351
Other liabilities		27,584			27,884
Debt, less current portion		99,373			103,541
Deferred income tax liability, net		25,471			26,365
Total liabilities		236,185			233,141
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $.01 par value; 10,000 shares authorized, none issued		—			—
Common stock, $.01 par value; 100,000,000 shares authorized, 26,432,447 and 26,404,869 shares issued in 2015 and 2014, respectively		264			264
Capital in excess of par value		169,935			168,886
Accumulated earnings		17,863			19,051
Accumulated other comprehensive loss		(7,150	)		(6,621	)
		180,912			181,580
Less treasury stock, at cost, 137,920 shares in 2015 and 2014		(356	)		(356	)
Total shareholders’ equity		180,556			181,224
	$	416,741		$	414,365

The notes to the condensed consolidated financial statements are an integral part of the above statements.

2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
(dollars in thousands, except per share data)	2015			2014			2015			2014
Net sales	$	86,961		$	66,641		$	167,946		$	123,811
Cost of sales		60,333			45,192			120,343			82,633
Gross profit		26,628			21,449			47,603			41,178
Selling and administrative expenses		14,443			11,685			28,104			23,364
Acquisition and integration expenses		962			170			1,293			240
Amortization and earn-out expenses		6,735			2,406			10,739			4,894
Income from operations		4,488			7,188			7,467			12,680
Other income (expense), net		562			(121	)		(1,174	)		(227	)
Interest expense		(1,174	)		(746	)		(2,134	)		(1,488	)
Income before income taxes		3,876			6,321			4,159			10,965
Income tax expense		1,772			1,828			1,857			3,451
Net income	$	2,104		$	4,493		$	2,302		$	7,514
Earnings per share:
Basic	$	0.08		$	0.18		$	0.09		$	0.29
Diluted	$	0.08		$	0.17		$	0.09		$	0.29
Weighted average number of common shares outstanding:
Basic		26,283,529			25,643,508			26,277,456			25,625,033
Diluted		26,627,051			26,107,648			26,643,857			26,111,683

The notes to the condensed consolidated financial statements are an integral part of the above statements.

3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
(dollars in thousands)	2015		2014		2015			2014
Net income	$	2,104	$	4,493	$	2,302		$	7,514
Other comprehensive income (loss):
Foreign currency translation		356		126		(529	)		(112	)
Other comprehensive income (loss)		356		126		(529	)		(112	)
Comprehensive income	$	2,460	$	4,619	$	1,773		$	7,402

The notes to the condensed consolidated financial statements are an integral part of the above statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	SIX MONTHS ENDED JUNE 30,
(dollars in thousands)	2015			2014
Cash flows from operating activities:
Net income	$	2,302		$	7,514
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,943			5,389
Loss (gain) on sale of property and equipment		225			(13	)
Non-cash interest expense included in net income		323			275
Share-based compensation expense		854			750
Bad debt expense		69			82
Inventory reserve expense		256			308
Deferred income taxes		(894	)		—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(7,442	)		2,984
Costs and estimated earnings in excess of billings on uncompleted contracts		(7,439	)		(4,105	)
Inventories		408			794
Prepaid expense and other current assets		181			(1,560	)
Deferred charges and other assets		361			80
Accrued litigation settlement		—			(2,536	)
Accounts payable and accrued expenses		2,704			(5,263	)
Billings in excess of costs and estimated earnings on uncompleted contracts		(420	)		(2,167	)
Income taxes payable		354			(794	)
Other liabilities		1,165			33
Net cash (used in) provided by operating activities		(50	)		1,771
Cash flows from investing activities:
Acquisitions of property and equipment		(341	)		(711	)
Proceeds from sale of property and equipment		2,396			7,124
Net cash provided by investing activities		2,055			6,413
Cash flows from financing activities:
Net borrowings (repayments) on revolving credit lines		3,469			(4,675	)
Repayments of debt		(4,452	)		(5,427	)
Proceeds from employee stock purchase plan and exercise of stock options		195			844
Repurchases of common stock		—			(973	)
Dividends paid to common shareholders		(3,490	)		(2,826	)
Net cash used in financing activities		(4,278	)		(13,057	)
Net decrease in cash and cash equivalents		(2,273	)		(4,873	)
Cash and cash equivalents at beginning of period		19,362			22,661
Cash and cash equivalents at end of period	$	17,089		$	17,788
Cash paid during the period for:
Interest	$	1,785		$	1,505
Income taxes	$	595		$	5,903

The notes to the condensed consolidated financial statements are an integral part of the above statements.

5

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Reporting for Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements of CECO Environmental Corp. and its subsidiaries (the “Company”, “we”, “us”, or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2015 and the results of operations and cash flows for the three-month and six-month periods ended June 30, 2015 and 2014. The results of operations for the three-month and six-month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year. The balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

These financial statements and accompanying notes should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC.

Unless otherwise indicated, all balances within tables are in thousands, except per share amounts.

During 2014, the Company completed four acquisitions, including i) in August 2014, HEE Environmental Engineering (“HEE”), ii) in September 2014, SAT Technology, Inc. (“SAT”), iii) in November 2014, Emtrol LLC (“Emtrol”), and iv) in December 2014, Jiangyin Zhongli Industrial Technology Co. Ltd. (“Zhongli”). The results of their operations have been consolidated with our results following the acquisition dates. For a more complete discussion of the transactions, refer to Note 16.

2. New Financial Accounting Pronouncements

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” ASU 2015-07 requires investments for which fair value is measured at net asset value per share (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy as defined under FASB Topic 820, “Fair Value Measurements.” The FASB issued the ASU to eliminate the diversity in practice resulting from the way in which investments measured at net asset value per share (or its equivalent) with future redemption dates are classified, and also to ensure that all investments categorized in the fair value hierarchy are classified using a consistent approach. ASU 2015-07 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The FASB issued the ASU to simplify the presentation of debt issuance costs, and to align with other existing FASB guidance. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue From Contracts With Customers.” ASU 2014-09 supersedes nearly all existing revenue recognition principles under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration an entity expects to be entitled to for those goods or services using a defined five step process. More judgment and estimates may be required to achieve this principle than under existing GAAP. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect upon initial adoption recognized at the date of adoption, which includes additional footnote disclosures. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and has not yet determined the method of adoption.

6

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

3. Accounts Receivable

(Table only in thousands)	June 30, 2015			December 31, 2014
Trade receivables	$	11,562		$	15,875
Contract receivables		55,125			43,218
Allowance for doubtful accounts		(920	)		(699	)
	$	65,767		$	58,394

The provision for doubtful accounts was $24,000 and $25,000 for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.1 million and $0.1 million for the six-month periods ended June 30, 2015 and 2014, respectively.

4. Costs and Estimated Earnings on Uncompleted Contracts

Revenues from contracts are recognized on the percentage of completion method, measured by the percentage of contract costs incurred to date compared to estimated total contract costs for each contract. This method is used because management considers contract costs to be the best available measure of progress on these contracts. Revenues are also recognized on a completed contract basis, when risk and title passes to the customer, which is generally upon shipment of product.

Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within the next twelve months.

(Table only in thousands)	June 30, 2015			December 31, 2014
Costs incurred on uncompleted contracts	$	114,248		$	97,979
Estimated earnings		29,890			28,328
		144,138			126,307
Less billings to date		(126,505	)		(116,533	)
	$	17,633		$	9,774
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	31,810		$	24,371
Billings in excess of costs and estimated earnings on uncompleted contracts		(14,177	)		(14,597	)
	$	17,633		$	9,774

5. Inventories

(Table only in thousands)	June 30, 2015			December 31, 2014
Raw materials	$	18,872		$	18,848
Work in process		2,342			2,644
Finished goods		2,361			2,492
Obsolescence allowance		(823	)		(568	)
	$	22,752		$	23,416

Amounts credited to the allowance for obsolete inventory and charged to cost of sales amounted to $0.1 million and $0.2 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.3 million and $0.3 million for the six-month periods ended June 30, 2015 and 2014, respectively.

7

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

6. Goodwill and Intangible Assets

(Table only in thousands)	Six months ended June 30, 2015						Year ended December 31, 2014
Goodwill / Tradename	Goodwill			Tradename			Goodwill			Tradename
Beginning balance	$	167,547		$	19,766		$	134,062		$	18,419
Acquisitions and related adjustments		2,488			—			34,638			1,730
Foreign currency translation		(711	)		(238	)		(1,153	)		(383	)
	$	169,324		$	19,528		$	167,547		$	19,766
(Table only in thousands)	As of June 30, 2015						As of December 31, 2014
Intangible assets – finite life	Cost			Accum. Amort.			Cost			Accum. Amort.
Patents	$	1,456		$	1,450		$	1,429		$	1,427
Employment agreements		647			513			693			433
Technology		7,905			2,786			8,317			2,290
Customer lists		58,024			13,136			58,617			8,959
Noncompetition agreements		1,120			146			1,118			34
Tradename		1,390			91			1,390			23
	$	70,542		$	18,122		$	71,564		$	13,166

Activity for the six months ended June 30, 2015 and 2014 is as follows:

(Table only in thousands)	2015			2014
Intangible assets – finite life, net at beginning of period	$	58,398		$	46,611
Amortization expense		(5,230	)		(3,593	)
Foreign currency adjustments		(748	)		(85	)
Intangible assets – finite life, net at end of period	$	52,420		$	42,933

Amortization expense of finite life intangible assets was $2.6 million and $1.8 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $5.2 million and $3.6 million for the six-month periods ended June 30, 2015 and 2014, respectively. Amortization over the next five years for finite life intangibles is expected to be $5.3 million for the remainder of 2015, $9.2 million in 2016, $7.9 million in 2017, $6.3 million in 2018, and $5.2 million in 2019.

The Company completes an annual (or more often if circumstances require) impairment assessment of its goodwill and indefinite life intangible assets. The Company did not identify any circumstances that would require an impairment assessment of its goodwill or indefinite life intangible assets as of June 30, 2015. A qualitative analysis, which included reviewing current year results for revenue and profit, was done for all reporting units. For four of our reporting units with total goodwill of $105.4 million as of December 31, 2014, the analysis led to the conclusion that it was not more likely than not that the fair value for these reporting units exceeded the carrying value. Accordingly, the first step of the two step goodwill impairment test as described in FASB ASC 350-20-35 was performed.

Under the first step, the estimated fair value of the reporting unit is calculated by the discounted cash flow method. The significant assumptions used under the discounted cash flow method are projected revenue, projected operational profit, terminal growth rates, and the cost of capital. Projected revenue, projected operational profit and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. Under this approach, the resultant estimated fair value of the reporting units exceeded its carrying value as of December 31, 2014 and no goodwill impairment charges were recorded.

For two of the reporting units tested under the first step, which carried combined goodwill of $90.9 million, the aggregate excess of fair value over their carrying value was only 3%. These two reporting units were acquired in the second half of fiscal 2013, and therefore the Company did not expect the fair value to be significantly in excess of the carrying value. Furthermore, there were no fundamental changes in the business or market that would indicate a significant decline in the fair value since the acquisition date. Management’s projections used to estimate the undiscounted cash flows included increasing sales volumes and operational improvements designed to reduce costs. Changes in any of the significant assumptions used, including if the Company does not successfully achieve its 2015 operating plan, can materially affect the expected cash flows, and such impacts can result in the requirement to proceed to a step 2 test and potentially a material non-cash impairment charge could result. Therefore, the key assumptions most susceptible to change are projected revenue and projected operational profit.

8

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

We determined that with other assumptions held constant, for the first reporting unit that carried $77.9 million of goodwill, a decrease in projected revenue growth rates of approximately 30 basis points or a decrease in projected operational profit of approximately 70 basis points would result in fair value of the reporting unit being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. Likewise, we determined that with other assumptions held constant, for the second reporting unit that carried $13.0 million of goodwill, a decrease in projected revenue growth rates of approximately 100 basis points or a decrease in projected operational profit of approximately 90 basis points would result in fair value of the reporting unit being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. The Company is not currently aware of any negative changes in its assumptions that could lead to the fair value of the reporting units being less than the carrying value.

This same qualitative analysis was done for all reporting units with indefinite life intangible assets. For five reporting units that had indefinite life intangible assets totaling $13.5 million as of December 31, 2014, the analysis led to the conclusion that it was not more likely than not that the fair value for these indefinite life intangible assets exceeded their carrying value. Accordingly, the Company estimated the fair value of the indefinite life intangible assets. The estimated fair value is calculated by the relief from royalty method. The significant assumptions used under the relief from royalty method are projected revenue, royalty rates, terminal growth rates, and the cost of capital. Projected revenue, royalty rates and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected royalty cash flows in the relief from royalty method. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected royalty cash flows. Under this approach, the resultant estimated fair value of the indefinite life intangible assets exceeded their carrying value as of December 31, 2014 and no impairment charges were recorded.

For three of the reporting units, which carried combined indefinite life intangible assets of $10.0 million, the aggregate excess of fair value over their carrying value was only 5%. These three reporting units were acquired in the second half of fiscal 2013, and therefore the Company did not expect the fair value to be significantly in excess of the carrying value. Furthermore, there were no fundamental changes in the businesses or markets that would indicate a significant decline in the fair value since the acquisition date. Management’s projections used to estimate the fair values included increasing sales volumes and operational improvements designed to reduce costs. Changes in any of the significant assumptions used, including if the Company does not successfully achieve its 2015 operating plan, can materially affect the expected cash flows, and such impacts can result in the requirement to proceed to a step 2 test and potentially can result in material non-cash impairment charges. Therefore, the key assumption most susceptible to change is projected revenue. We determined that with other assumptions held constant, for the first, second and third reporting units that carried $6.8 million, $2.3 million and $0.9 million, respectively, of indefinite life intangible assets, a decrease in projected revenue growth rates of approximately 70 basis points, 40 basis points and 160 basis points, respectively, would result in fair value of the indefinite life intangible assets being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. The Company is not currently aware of any negative changes in its assumptions that could lead to the fair value of the indefinite life intangible assets being less than the carrying value.

Two of the reporting units where the fair value was not significantly in excess of the carrying value had definite live intangible assets of $24 million as of December 31, 2014 which could be at risk of impairment if the Company does not successfully achieve its 2015 operating plan as described above. The Company will continue to assess the potential for impairment on a quarterly basis in fiscal 2015.

7. Accounts Payable and Accrued Expenses

	June 30, 2015		December 31, 2014
Trade accounts payable, including due to subcontractors	$	34,303	$	31,882
Compensation and related benefits		2,121		2,976
Accrued interest		38		193
Current portion of earn-out liability		13,205		8,738
Accrued warranty		778		936
Other accrued expenses		6,059		6,737
	$	56,504	$	51,462

9

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

8. Debt

Debt consisted of the following at June 30, 2015 and December 31, 2014:

(Table only in thousands)	June 30, 2015			December 31, 2014
Outstanding borrowings under Credit Facility (defined below). Term loan payable in quarterly principal installments of $2.2 million through September 2016, $2.8 million through September 2017, and $3.3 million thereafter with balance due upon maturity in August 2018.
- Term loan	$	85,690		$	90,072
- U.S. Dollar revolving loans		24,000			24,000
- Multi-currency revolving loans		—			—
- Unamortized debt discount		(1,551	)		(1,796	)
Total outstanding borrowings under Credit Facility		108,139			112,276
Outstanding borrowings (U.S. dollar equivalent) under Aarding Facility (defined below)		3,469			—
Outstanding borrowings (U.S. dollar equivalent) under Euro-denominated note payable to a bank, payable in quarterly installments of €25 ($28 as of June 30, 2015), plus interest, at a fixed rate of 3.82%, maturing January 2016. Collateralized by the Heerenveen, Netherlands building.		82			152
Total outstanding borrowings		111,690			112,428
Less: current portion		12,317			8,887
Total debt, less current portion	$	99,373		$	103,541

U.S. Debt

On August 27, 2013, the Company entered into a credit agreement (the “Credit Agreement”) with various lenders (the “Lenders”) and letter of credit issuers (each, an “L/C Issuer”), and Bank of America, N.A., as Administrative Agent (the “Agent”), swing line lender and an L/C Issuer, providing for various senior secured credit facilities (collectively, the “Credit Facility”) comprised of a $65.0 million senior secured term loan, a $70.5 million senior secured U.S. dollar revolving credit facility for U.S. dollar revolving loans with sub-facilities for letters of credit and swing-line loans, and a $19.5 million senior secured multi-currency revolving credit facility for U.S. dollar and specific foreign currency loans.

Concurrent with the closing of our Met-Pro Corporation (“Met-Pro”) acquisition on August 27, 2013, the Company borrowed $65.0 million in term loans and $52.0 million in U.S. dollar revolving loans and used the proceeds to (i) finance the cash portion of the acquisition, (ii) pay off certain outstanding indebtedness of the Company and its subsidiaries (including certain indebtedness of Met-Pro and its subsidiaries), and (iii) pay certain fees and expenses incurred in connection with the Credit Agreement and the acquisition.

On November 18, 2014, the Company amended the Credit Agreement. Pursuant to the amendment (i) certain lenders provided an additional term loan under the Credit Agreement in an aggregate principal amount of $35.0 million and certain lenders increased their revolving credit commitments in an aggregate principal amount of up to $15.0 million, and (ii) the Credit Agreement was amended to, among other things, (a) modify the calculation of Consolidated EBITDA to include certain pro forma adjustments related to certain acquisitions and other transactions, (b) modify the Consolidated Leverage Ratio covenant and (c) permit additional investments in foreign subsidiaries and additional indebtedness by foreign subsidiaries. The proceeds from the additional term loan were used primarily to finance the acquisition of Emtrol and related expenses. Additionally, the Company has the option to obtain additional commitments for either the U.S. dollar revolving credit facility or the term loan facility in an aggregate principal amount not to exceed $50.0 million.

As of June 30, 2015 and December 31, 2014, $8.3 million and $9.5 million of letters of credit were outstanding, respectively. Total unused credit availability under the Credit Facility was $72.7 million and $71.5 million at June 30, 2015 and December 31, 2014, respectively. Revolving loans may be borrowed, repaid and reborrowed until August 27, 2018, at which time all amounts borrowed pursuant to the Credit Facility must be repaid.

At the Company’s option, revolving loans and the term loans accrue interest at a per annum rate based on either the highest of (a) the federal funds rate plus 0.5%, (b) the Agent’s prime lending rate, and (c) one-month LIBOR plus 1.00%, plus a margin ranging from 0.5% to 1.5% depending on the Company’s consolidated leverage ratio (“Base Rate”), or a Eurocurrency Rate (as defined in the Credit Agreement) plus 1.5% to 2.5% depending on the Company’s consolidated leverage ratio. Interest on swing line loans is the Base Rate.

Accrued interest on Base Rate loans is payable quarterly in arrears on the last day of each calendar quarter and at maturity. Interest on Eurocurrency Rate loans is payable on the last date of each applicable Interest Period (as defined in the agreement), but in no event less than once every three months and at maturity. The weighted average interest rate on outstanding borrowings was 2.73% and 2.24% at June 30, 2015 and December 31, 2014, respectively.

10

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The Company has granted a security interest in substantially all of its assets to secure its obligations pursuant to the Credit Agreement. The Company’s obligations under the Credit Agreement are guaranteed by the Company’s U.S. subsidiaries and such guaranty obligations are secured by a security interest on substantially all of the assets of such subsidiaries, including certain real property. The Company’s obligations under the Credit Agreement may also be guaranteed by the Company’s material foreign subsidiaries to the extent no adverse tax consequences would result to the Company.

The Credit Agreement contains customary affirmative and negative covenants, including the requirement to maintain compliance with a consolidated leverage ratio of less than 3.25 and a consolidated fixed charge coverage ratio of more than 1.25. The Credit Agreement also includes customary events of default and the occurrence of an event of default could result in an increased interest rate equal to 2.0% above the applicable interest rate for loans, the acceleration of the Company’s obligations pursuant to the Credit Agreement and an obligation of the subsidiary guarantors to repay the full amount of the Company’s borrowings pursuant to the Credit Agreement.

As of June 30, 2015 and December 31, 2014, the Company was in compliance with all related financial and other restrictive covenants under the Credit Agreement.

The Company has paid $3.1 million of customary closing fees, arrangement fees, administration fees, letter of credit fees and commitment fees for the Credit Agreement and amendments thereto. As of June 30, 2015 and December 31, 2014, capitalized deferred financing costs of $0.5 million and $0.5 million, respectively, are included in deferred charges and other assets and $1.6 million and $1.8 million, respectively, are included as a discount to debt in the accompanying Condensed Consolidated Balance Sheets. Amortization expense was $0.1 million and $0.2 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.2 million and $0.3 million for the six-month periods ended June 30, 2015 and 2014, respectively, and is classified as interest expense.

Foreign Debt

The Company has a €10.5 million facilities agreement, originally dated August 17, 2012 (as amended from time to time), made between our Netherland’s subsidiaries ATA Beheer B.V. and Aarding Thermal Acoustics B.V., as borrowers and ING Bank N.V. as the lender (“Aarding Facility”). The facilities agreement includes a €7.0 million bank guarantee facility and a €3.5 million overdraft facility. The bank guarantee interest rate is the three months Euribor plus 265 basis points (2.65% as of June 30, 2015) and the overdraft interest rate is three months Euribor plus 195 basis points (1.95% as of June 30, 2015). All of the borrowers’ assets are pledged for this facility, and the borrowers’ solvency ratio must be at least 30% and net debt/last twelve months EBITDA less than 3.0. As of June 30, 2015 and December 31, 2014, the borrowers were in compliance with all related financial and other restrictive covenants, and expect continued compliance. As of June 30, 2015, €6.8 million ($7.5 million) of the bank guarantee and €3.1 million ($3.5 million) of the overdraft facility are being used by the borrowers. As of December 31, 2014, €5.5 million ($6.7 million) of the bank guarantee and none of the overdraft facility was being used by the borrowers. There is no stated expiration date on the facilities agreement.

9. Earnings and Dividends per Share

The computational components of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 are below.

	For the three-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,104		26,284	$	0.08
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		343		—
Diluted earnings and earnings per share	$	2,104		26,627	$	0.08

11

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

	For the three-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	4,493		25,644	$	0.18
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		464		(0.01	)
Diluted earnings and earnings per share	$	4,493		26,108	$	0.17

	For the six-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,302		26,277	$	0.09
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		367		—
Diluted earnings and earnings per share	$	2,302		26,644	$	0.09

	For the six-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	7,514		25,625	$	0.29
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		487		—
Diluted earnings and earnings per share	$	7,514		26,112	$	0.29

Options and warrants included in the computation of diluted earnings per share are calculated using the treasury stock method. For the three-month and six-month periods ended June 30, 2015, 1.2 million outstanding options and warrants were excluded from the computation of diluted earnings per share due to their having an anti-dilutive effect.

Holders of restricted stock awards participate in nonforfeitable dividend rights on a one-for-one basis with holders of common stock. Holders of these awards are not obligated to share in losses of the Company. Therefore, these share awards are included in the computation of basic earnings per share during periods of net income using the two-class method, but are excluded from such computation in periods of net loss. Should the Company declare a dividend on its common stock, the related dividend on shares of unvested restricted stock that are not expected to vest would be recorded as additional compensation expense and therefore excluded from the two-class method computations; however, there are no unvested restricted stock awards outstanding that are expected not to vest. Undistributed earnings included in the two-class method computations are allocated equally to each share of common stock outstanding, including all shares of unvested restricted common stock.

Once a restricted stock award vests, it is included in the computation of weighted average shares outstanding for purposes of basic and diluted earnings per share.

The Company declared and, on June 26, 2015, paid to common stockholders a quarterly dividend of $0.066 per share. The dividend policy and the payment of cash dividends under that policy are subject to the Board of Directors’ continuing determination that the dividend policy and the declaration of dividends are in the best interest of the Company’s stockholders. Future dividends and the dividend policy may be changed or cancelled at the Company’s discretion at any time. Payment of dividends is also subject to the continuing consent of lenders under our Credit Facility.

10. Share-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” which requires the Company to recognize compensation expense for stock-based awards, measured at the fair value of the awards at the grant date. The Company recognized expense of $0.4 million and $0.4 million during the three-month periods ended June 30, 2015 and 2014, respectively, and $0.9 million and $0.8 million during the six-month periods ended June 30, 2015 and 2014, respectively.

12

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

The weighted-average fair value of stock options granted during the six months ended June 30, 2015 and 2014 was estimated at $7.15 and $6.94 per option, respectively, using the Black-Scholes option-pricing model based on the following assumptions:

Expected Volatility: The Company utilizes a volatility factor based on the Company’s historical stock prices for a period of time equal to the expected term of the stock option utilizing weekly price observations. For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average volatility factor of 54% and 56%, respectively.

Expected Term: For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average expected term factor of 6.5 years and 6.2 years, respectively.

Risk-Free Interest Rate: The risk-free interest rate factor utilized is based upon the implied yields currently available on U.S. Treasury zero-coupon issues over the expected term of the stock options. For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average risk-free interest rate factor of 2.0% and 2.2%, respectively.

Expected Dividends: The Company utilized a weighted average expected dividend rate of 1.6% and 1.6% to value options granted during the six months ended June 30, 2015 and 2014, respectively.

The fair value of the stock options granted is recorded as compensation expense on a straight-line basis over the vesting periods of the options adjusted for the Company’s estimate of pre-vesting forfeitures. The pre-vesting forfeiture estimate is based on historical activity and is reviewed periodically and updated as necessary.

The Company received $0.1 million and $0.8 million in cash from employees and directors exercising options during the six months ended June 30, 2015 and 2014, respectively. The intrinsic value of options exercised during the six months ended June 30, 2015 and 2014 was $0.1 million and $1.2 million, respectively.

11. Stock Purchase

During the three-month period ended March 31, 2014, the Company repurchased 61,500 shares of common stock from a former director for a total cost of $1.0 million. The shares were immediately retired. There were no such repurchases during the three-month and six-month periods ended June 30, 2015, or the three-month period ended June 30, 2014.

12. Pension and Employee Benefit Plans

We sponsor several non-contributory defined benefit pension plans for certain union employees. All plans are funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974.

We also sponsor a postretirement health care plan for office employees retired before January 1, 1990. The plan allowed retirees who attained the age of 65 to elect the type of coverage desired.

Retirement and health care plan expense is based on valuations performed by plan actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following:

(Table only in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Pension plan:
Service cost	$	59		$	50		$	117		$	100
Interest cost		352			357			706			715
Expected return on plan assets		(503	)		(488	)		(1,005	)		(976	)
Amortization of net actuarial loss		64			44			129			88
Net periodic benefit gain	$	(28	)	$	(37	)	$	(53	)	$	(73	)
Health care plan:
Interest cost	$	2		$	1		$	3		$	3
Amortization of loss (gain)		1			(1	)		3			(3	)
Net periodic benefit cost (gain)	$	3		$	—		$	6		$	—

13

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

We made contributions to our defined benefit plans during the six months ended June 30, 2015 and 2014 totaling $0.4 million and $0.9 million, respectively. We anticipate contributing $0.2 million to fund the pension plans and $25,000 for the retiree health care plan during the remainder of 2015. The unfunded liability of the plans of $10.7 million and $11.1 million as of June 30, 2015 and December 31, 2014, respectively, is included in Other Liabilities on our Condensed Consolidated Balance Sheets.

13. Income Taxes

The Company files income tax returns in various federal, state and local jurisdictions. The Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2010.

The Company accounts for uncertain tax positions pursuant to ASC Topic 740, “Income Taxes.” As of June 30, 2015 and December 31, 2014, the liability for uncertain tax positions totaled approximately $1.2 million, which is included in Other Liabilities on our Condensed Consolidated Balance Sheets. The Company recognizes interest accrued related to uncertain tax positions in interest expense and penalties in income tax expense.

14. Financial Instruments

Our financial instruments consist primarily of investments in cash and cash equivalents, receivables and certain other assets, debt and accounts payable, which approximate fair value at June 30, 2015, due to their short-term nature or variable, market-driven interest rates.

At June 30, 2015 and December 31, 2014, we had cash and cash equivalents of $17.1 million and $19.4 million, respectively, of which $9.5 million and $11.7 million, respectively, was held outside of the United States, principally in the Netherlands, China, Great Britain, and Canada. Substantially all of the amounts held outside of the United States are intended to be indefinitely reinvested in foreign operations. Our current plans do not anticipate that we will need funds generated from foreign operations to fund our domestic operations. In the event funds from foreign operations are needed in the United States, any repatriation could result in the accrual and payment of additional U.S. income tax.

On March 31, 2014, Aarding entered into a one-month foreign exchange forward contract to manage exposure to foreign currency fluctuations on a U.S. dollar-denominated transaction totaling $5.5 million. The contract expired prior to June 30, 2015 and there are no such contracts outstanding as of June 30, 2015.

15. Commitments and Contingencies – Legal Matters

Our subsidiary, Met-Pro, beginning in 2002, began to be named in asbestos-related lawsuits filed against a large number of industrial companies including, in particular, those in the pump and fluid handling industries. In management’s opinion, the complaints typically have been vague, general and speculative, alleging that Met-Pro, along with the numerous other defendants, sold unidentified asbestos-containing products and engaged in other related actions which caused injuries (including death) and loss to the plaintiffs. Counsel has advised that more recent cases typically allege more serious claims of mesothelioma. The Company’s insurers have hired attorneys who, together with the Company, are vigorously defending these cases. Many cases have been dismissed after the plaintiff fails to produce evidence of exposure to Met-Pro’s products. In those cases where evidence has been produced, the Company’s experience has been that the exposure levels are low and the Company’s position has been that its products were not a cause of death, injury or loss. The Company has been dismissed from or settled a large number of these cases. Cumulative settlement payments from 2002 through June 30, 2015 for cases involving asbestos-related claims were $0.7 million, which, together with all legal fees other than corporate counsel expenses, have been paid by the Company’s insurers. The average cost per settled claim, excluding legal fees, was approximately $25,000.

Based upon the most recent information available to the Company regarding such claims, there were a total of 215 cases pending against the Company as of June 30, 2015 (with Connecticut, New York, Pennsylvania and West Virginia having the largest number of cases), as compared with 195 cases that were pending as of December 31, 2014. During the six months ended June 30, 2015, 27 new cases were filed against the Company, and the Company was dismissed from 7 cases and settled zero cases. Most of the pending cases have not advanced beyond the early stages of discovery, although a number of cases are on schedules leading to, or are scheduled for trial. The Company believes that its insurance coverage is adequate for the cases currently pending against the Company and for the foreseeable future, assuming a continuation of the current volume, nature of cases and settlement amounts. However, the Company has no control over the number and nature of cases that are filed against it, nor as to the financial health of its insurers or their position as to coverage. The Company also presently believes that none of the pending cases will have a material adverse impact upon the Company’s results of operations, liquidity or financial condition.

14

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

One of our subsidiaries, Fisher-Klosterman, Inc. (“FKI”), was a defendant in a products liability lawsuit filed in Harris County, Texas on August 23, 2010 by three Valero refining companies. The plaintiffs claimed that FKI (and its co-Defendants) used an allegedly defective refractory material included in cyclones it supplied to Valero that caused damages to refineries they own and operate. Plaintiffs claimed to have suffered property damages, including catalyst loss, regenerator repair costs, replacement part costs, damage to other property and business interruption loss. During the third quarter of 2014, the Company reached a settlement with the plaintiffs for $0.5 million and, accordingly, recorded a corresponding charge to operations. In addition, the Company reached an agreement with a supplier to recover $0.2 million related to this matter. The recovery was also recorded during the third quarter of 2014. The Company’s insurer, who had paid for the legal defense in this matter, initiated a new case in the Southern District of Ohio against the Company seeking, among other things, recoupment of past legal costs paid. The Company is vigorously disputing this claim and believes the insurer had the duty to defend the Company.

On October 3, 2014, Viron International (“Viron”) filed a complaint against us and our subsidiary, the Kirk and Blum Manufacturing Company (“Kirk & Blum”), in the United States District Court for the Western District of Texas (the “Court”) seeking damages against us and Kirk & Blum for alleged breach of contract. After a trial on January 12, 2015, on February 27, 2015, the Court issued Findings of Fact and Conclusions of Law that provide that we and Kirk & Blum breached our contract with Viron and that Viron is entitled to damages in the amount of approximately $0.6 million plus attorneys’ fees. Additionally, the Court concluded that we and Kirk & Blum are not entitled to an offset for the invoiced amounts of $0.2 million not paid by Viron under the contract. The Company is vigorously defending this claim and believes it has complied with the provisions of the contract.

The Company is also a party to routine contract and employment-related litigation matters and routine audits of state and local tax returns arising in the ordinary course of its business.

The final outcome and impact of open matters, and related claims and investigations that may be brought in the future, are subject to many variables, and cannot be predicted. In accordance with ASC 450, “Contingencies,” and related guidance, we record reserves for estimated losses relating to claims and lawsuits when available information indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. The Company expenses legal costs as they are incurred.

We are not aware of pending claims or assessments, other than as described above, which may have a material adverse impact on our liquidity, financial position, results of operations, or cash flows.

16. Acquisitions

Zhongli

On December 15, 2014, the Company acquired 100% of the equity interests of Zhongli for $7.0 million in cash. As additional consideration, the former owners are entitled to earn-out payments based upon a multiple of specified financial results through December 31, 2017. There is no maximum amount of earn-out, under the terms of the purchase agreement. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $17.1 million. During the six months ended June 30, 2015, the Company increased the earn-out by $4.5 million based on the estimated fair value at that date, for a total earn-out payable of $21.6 million at June 30, 2015. The earn-out adjustment is recorded as expense in “Amortization and earn-out expenses” on the Condensed Consolidated Statements of Income. The first year of the estimated earn-out payable of $9.5 million is recorded in “Accounts payable and accrued expenses” and the balance of $12.1 million is recorded in “Other liabilities” on the Condensed Consolidated Balance Sheets.

Zhongli is a leader in the design and manufacture of power industry damper, diverter and ball mill systems in China, which complements our Energy Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets (including cash of $1,025)	$	16,223
Property and equipment		1,477
Goodwill		4,752
Intangible – finite life, net		4,262
Intangible – indefinite life		960
Total assets acquired		27,674
Current liabilities assumed		(1,840	)
Deferred tax liabilities		(1,739	)
Net assets acquired	$	24,095

15

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Emtrol

On November 3, 2014, the Company acquired 100% of the membership interests of Emtrol. The Company paid cash at closing of $31.9 million, which was financed with additional debt. The Company also issued 453,858 shares of the Company’s common stock with an agreed upon value of $6.0 million computed based on the average closing price of the Company’s common stock for the thirty trading days immediately preceding the acquisition date. The shares of common stock issued to the former members contain restrictions on sale or transfer for periods ranging from one to two years from the acquisition date. Accordingly, the fair value of the common stock issued has been determined to be $5.8 million, which reflects the estimated fair value of the shares based on the closing price of the Company’s common stock on the acquisition date and a discount related to the sale and transfer restrictions.

Emtrol and its subsidiary are engaged in the business of designing and manufacturing of fluid catalytic cracking and industrial cyclone technology for a variety of industries including the refinery, petrochemical, and chemical sectors, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	9,922
Property and equipment		125
Goodwill		24,998
Intangible – finite life, net		12,890
Total assets acquired		47,935
Current liabilities assumed		(10,173	)
Net assets acquired	$	37,762

SAT

On September 26, 2014, the Company acquired 100% of the stock of SAT for $1.4 million in cash. The Company is holding back $0.2 million of this cash until certain working capital requirements are determined to be met, as defined in the agreement. As additional consideration, the former owners are entitled to earn-out payments upon the achievement of specified financial results through September 30, 2017. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $1.0 million, which is the maximum amount of the earnout. There were no adjustments to fair value of the earn-out at June 30, 2015 or December 31, 2014. The first year of the estimated earn-out payable of $0.3 million is recorded in “Accounts payable and accrued expenses” and the balance of $0.7 million is recorded in “Other liabilities” on the Consolidated Balance Sheets.

SAT is a leading provider of volatile organic compounds abatement solutions for the Chinese air pollution control market, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	1,679
Property and equipment		10
Goodwill		1,733
Intangible – finite life, net		840
Intangible – indefinite life		260
Total assets acquired		4,522
Current liabilities assumed		(1,847	)
Deferred tax liabilities		(275	)
Net assets acquired	$	2,400

HEE

On August 13, 2014, the Company acquired certain assets and liabilities of HEE for $7.0 million in cash. The Company also issued 34,626 shares of the Company’s common stock with an agreed upon value of $0.5 million computed based on the average closing price of the Company’s common stock for the thirty trading days immediately preceding the acquisition date. The shares of common stock issued to the former owners contain restrictions on sale or transfer for a period of six months from the

16

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

acquisition date. Accordingly, the fair value of the common stock issued has been determined to be $0.5 million, which reflects the estimated fair value of the shares based on the closing price of the Company’s common stock on the acquisition date and a discount related to the sale and transfer restrictions. As additional consideration, the former owners are entitled to earn-out payments upon the achievement of specified financial results through July 31, 2017. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $2.0 million, which is the maximum amount of the earnout. There were no adjustments to fair value of the earn-out at June 30, 2015 or December 31, 2014. The first year of the estimated earn-out payable of $0.7 million is recorded in “Accounts payable and accrued expenses” and the balance of $1.3 million is recorded in “Other liabilities” on the Consolidated Balance Sheets.

HEE is a leading North American designer and manufacturer of scrubbers and fans for the air pollution control market, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	913
Property and equipment		158
Goodwill		5,644
Intangible – finite life, net		2,690
Intangible – indefinite life		510
Total assets acquired		9,915
Current liabilities assumed		(415	)
Net assets acquired	$	9,500

The approximate fair values of the assets acquired and liabilities assumed related to the above acquisitions are based on preliminary estimates and assumptions. These preliminary estimates and assumptions could change significantly during the purchase price measurement period as we finalize the valuations of the assets acquired and liabilities assumed. Such changes could result in material variances between the Company’s future financial results, including variances in the estimated purchase price, fair values recorded and expenses associated with these items.

The following unaudited pro forma information represents the Company’s results of operations as if the HEE, SAT, Emtrol, and Zhongli acquisitions had occurred as of January 1, 2014:

(Table only in thousands, except per share data)	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Net sales	$	88,041	$	166,611
Net income		5,527		9,582
Earnings per share:
Basic	$	0.21	$	0.37
Diluted	$	0.21	$	0.36

The pro forma results have been prepared for informational purposes only and include adjustments to amortize acquired intangible assets with finite life, eliminate acquisition related expenses, reflect foregone interest income on cash paid for the acquisitions, reflect additional interest expense on debt used to fund the acquisitions, and to record the income tax consequences of the pro forma adjustments. Shares used to calculate the basic and diluted earnings per share were adjusted to reflect the additional shares of common stock issued to fund a portion of the acquisition price. These pro forma results do not purport to be indicative of the results of operations that would have occurred had the purchases been made as of the beginning of the periods presented or of the results of operations that may occur in the future.

Acquisition and integration expenses on the Condensed Consolidated Statements of Income are related to acquisition activities, which include retention, legal, accounting, banking, and other expenses.

17. Business Segment Information

The Company’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 Condensed Consolidated Statements of Income.

17

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Air Pollution Control Segment (“APC”)

Our Air Pollution Control Segment is comprised of Adwest, HEE-Duall Air and Odor Technologies, Busch, Emtrol-Buell, Flex-Kleen Dust Collection Technologies, FKI-Emtrol, Kirk & Blum, KB Duct, and SAT. This segment provides the design and manufacture of product recovery and air pollution control technologies that enable our customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. These products and solutions include chemical and biological scrubbers, fabric filters and cartridge collectors, thermal and catalytic oxidation systems, cyclones, separators, gas absorbers and industrial ventilation systems. This segment also provides component parts for industrial air systems and provides cost effective alternatives to traditional duct components, as well as custom metal engineered fabrication services. These products and services are applicable to a wide variety of industries.

Energy Segment (“Energy”)

Our Energy Segment is comprised of Aarding, Effox-Flextor, AVC, and Zhongli. This segment provides the design and manufacture of technologies for flue gas and diverter dampers, non-metallic expansion joints, natural gas turbine exhaust systems, and silencer and precipitator applications, primarily for coal-fired and natural gas power plants, refining, oil production and petrochemical processing, as well as a variety of other industries.

Fluid Handling and Filtration Segment (“FHF”)

Our Fluid Handling and Filtration Segment is comprised of Met-Pro Global Pump Solutions, Mefiag Filtration Solutions, Keystone Filtration Solutions, CECO Filters and Strobic Air Corporation. This segment provides the design and manufacture of technologies including high quality centrifugal pumps for corrosive, abrasive and high temperature liquids, filter products for air and liquid filtration, as well as product recovery equipment, and technologically advanced air movement and exhaust systems. These products are applicable to a wide variety of industries, particularly the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination and pharmaceutical markets.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management. The operating results of the segments are reviewed through to the “Income from operations” line on the Condensed Consolidated Statements of Income.

The financial segment information is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015			2014
Net Sales (less intra-, inter-segment sales)
Air Pollution Control Segment	$	41,798	$	32,939	$	83,514		$	59,687
Energy Segment		27,303		16,835		51,652			32,116
Fluid Handling and Filtration Segment		17,745		16,650		32,939			32,145
Corporate and Other(1)		115		217		(159	)		(137	)
Net sales	$	86,961	$	66,641	$	167,946		$	123,811

⁽¹⁾  Includes adjustment for revenue on intercompany jobs.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Income from Operations
Air Pollution Control Segment	$	5,140		$	4,876		$	9,158		$	8,742
Energy Segment		215			1,596			635			3,983
Fluid Handling and Filtration Segment		4,431			3,069			7,387			5,740
Corporate and Other(2)		(5,074	)		(2,221	)		(8,891	)		(4,956	)
Eliminations		(224	)		(132	)		(822	)		(829	)
Income from operations	$	4,488		$	7,188		$	7,467		$	12,680

18

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

⁽²⁾  Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Property and Equipment Additions
Air Pollution Control Segment	$	17	$	132	$	81	$	268
Energy Segment		139		33		179		67
Fluid Handling and Filtration Segment		63		119		68		333
Corporate and Other		3		12		13		43
Property and equipment additions	$	222	$	296	$	341	$	711

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Depreciation and Amortization
Air Pollution Control Segment	$	1,104	$	383	$	2,257	$	778
Energy Segment		760		564		1,431		1,219
Fluid Handling and Filtration Segment		1,590		1,637		3,186		3,325
Corporate and Other		37		35		69		67
Depreciation and Amortization	$	3,491	$	2,619	$	6,943	$	5,389

	June 30, 2015		December 31, 2014
Identifiable Assets
Air Pollution Control Segment	$	132,457	$	133,899
Energy Segment		101,372		91,850
Fluid Handling and Filtration Segment		170,413		172,779
Corporate and Other(3)		12,499		15,837
Identifiable Assets	$	416,741	$	414,365

⁽³⁾  Corporate assets primarily consist of cash and income tax related assets.

	June 30, 2015		December 31, 2014
Goodwill
Air Pollution Control Segment	$	55,033	$	53,538
Energy Segment		17,060		16,778
Fluid Handling and Filtration Segment		97,231		97,231
Goodwill	$	169,324	$	167,547

19

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

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 June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF		Corp and Other		Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	43,833	$	(1,476	)	$	—		$	(559	)	$	—	$	—	$	41,798
Energy Segment		29,445		(1,560	)		(582	)		—			—		—		27,303
Fluid Handling and Filtration Segment		18,459		(699	)		(15	)		—			—		—		17,745
Corporate and Other(4)		—		—			—			—			—		115		115
Net Sales	$	91,737	$	(3,735	)	$	(597	)	$	(559	)	$	—	$	115	$	86,961

	Three Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	35,576	$	(2,461	)	$	—		$	(15	)	$	(161	)	$	—		$	32,939
Energy Segment		18,120		(1,284	)		(1	)		—			—			—			16,835
Fluid Handling and Filtration Segment		17,095		(402	)		(43	)		—			—			—			16,650
Corporate and Other(4)		—		—			—			—			—			217			217
Net Sales	$	70,791	$	(4,147	)	$	(44	)	$	(15	)	$	(161	)	$	217		$	66,641
	Six Months Ended June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	87,390	$	(3,283	)	$	—		$	(593	)	$	—		$	—		$	83,514
Energy Segment		54,526		(2,255	)		(619	)		—			—			—			51,652
Fluid Handling and Filtration Segment		34,193		(1,151	)		(103	)		—			—			—			32,939
Corporate and Other(4)		—		—			—			—			—			(159	)		(159	)
Net Sales	$	176,109	$	(6,689	)	$	(722	)	$	(593	)	$	—		$	(159	)	$	167,946

	Six Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	63,660	$	(3,490	)	$	—		$	(322	)	$	(161	)	$	—		$	59,687
Energy Segment		34,310		(2,193	)		(1	)		—			—			—			32,116
Fluid Handling and Filtration Segment		32,935		(747	)		(43	)		—			—			—			32,145
Corporate and Other(4)		—		—			—			—			—			(137	)		(137	)
Net Sales	$	130,905	$	(6,430	)	$	(44	)	$	(322	)	$	(161	)	$	(137	)	$	123,811

⁽⁴⁾  Includes adjustment for revenue on intercompany jobs.

20

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

18. Subsequent Events

On May 3, 2015, the Company entered into a definitive merger agreement to acquire PMFG, Inc. (“PMFG”). PMFG is a global provider of engineered equipment for the abatement of air pollution, the separation and filtration of contaminants from gases and liquids, and industrial noise control equipment. Pursuant to the terms of the merger agreement, the Company, through its wholly owned subsidiaries, will acquire all of the outstanding shares of PMFG common stock in a transaction valued at a total of approximately $150 million in the aggregate (equity value), or $6.85 per share. Under the terms of the merger agreement, PMFG’s stockholders may elect to exchange each share of PMFG common stock for either $6.85 in cash and/or shares of our common stock having an equivalent value based on the volume weighted average trading price of our common stock for the 15-trading day period ending on the trading day immediately preceding the closing of the merger, subject to a collar. Elections are subject to proration such that approximately 55% of PMFG’s outstanding shares will be exchanged for stock and 45% for cash.

The completion of the merger is subject to customary closing conditions including the approval of the stockholders of both the Company and PMFG. The Company has received a financing commitment from Bank of America Merrill Lynch, as Lead Arranger and Administrative Agent, to increase and amend the Credit Facility to fund the cash portion of the merger consideration.

The boards of directors of each of the Company and PMFG have unanimously approved the merger. CECO stockholders who own approximately 15% of the current voting power of the Company have signed voting agreements and irrevocable proxies to vote in favor of the merger.

This merger is expected to close in the third quarter of 2015.

21

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Company’s Condensed Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2015 and 2014 reflect the consolidated operations of the Company and its subsidiaries.

We are a leading global environmental technology company focused on critical solutions in the product recovery, air pollution control, fluid handling and filtration segments. Through our well-known brands including the “Effox-Flextor,” “Kirk & Blum,” “KB Duct,” “Fisher-Klosterman,” “Emtrol-Buell,” “FKI-Emtrol,” “AVC,” “Busch International,” “CECO Filters,” “Adwest,” “Aarding,” “HEE-Duall,” “Flex-Kleen,” “Bio-Reaction,” “Dean Pump,” “Fybroc,” “Sethco,” “Mefiag Filtration,” “Keystone Filter,” “Strobic Air”, “SAT Technology” and “Zhongli” tradenames; we provide a wide spectrum of products and services including dampers & diverters, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, exhaust systems, fluid handling equipment and plant engineered services and engineered design build fabrication. These products play a vital role in helping companies achieve exacting production standards, meeting increasing plant needs and stringent emissions control regulations around the globe. We believe that globally we serve the broadest range of markets and industries including power, municipalities, chemical, industrial manufacturing, refining, petrochemical, metals, minerals & mining, hospitals and universities. Therefore, our business is not concentrated in a single industry or customer. Demand for our products and services is created by increasingly strict Environmental Protection Agency mandated industry Maximum Achievable Control Technology standards and Occupational Safety and Health Administrative Agency established Threshold Limit Values, as well as existing pollution control and energy legislation.

We believe there will be an increase in the level of pollution control capital expenditures driven by an elevated focus on environmental issues such as global warming and energy saving alternatives, as well as a U.S. Government supported effort to reduce our dependence on foreign oil through the use of bio-fuels like ethanol and electrical energy generated by our abundant domestic supply of coal. We also feel that similar opportunities will continue to develop outside the United States. Much of our business is driven by various regulatory standards and guidelines governing air quality in and outside factories. Our Chinese operation is positioned to benefit from the tightening of air pollution standards by China’s Ministry of Environmental Protection.

We continue to focus on increasing revenues and profitability globally while continuing to strengthen and expand our presence domestically. Our operating strategy has historically involved horizontally expanding our scope of technology, products, and services through selective acquisitions and the formation of new business units that are then vertically integrated into our growing group of turnkey system providers. Our continuing focus will be on global growth, market coverage, and specifically expansion of our China operations. Operational excellence, margin expansion, after-market growth, and safety leadership are also critical to our growth strategy.

Operations Overview

We operate under a “hub and spoke” business model in which executive management, finance, administrative and marketing staff serves as the hub while the sales channels serve as spokes. We use this model throughout our operations. This has provided us with certain efficiencies over a more decentralized model. The Company’s division presidents and general managers are responsible for successfully running their operations, that is, sales, gross margins, manufacturing, pricing, purchasing, safety, employee development, and customer service excellence. The presidents work closely with our CEO on global growth strategies, operational excellence, and employee development. The headquarters (hub) focuses on enabling the core back-office key functions for scale and efficiency, that is, accounting, payroll, human resources/benefits, IT, safety support, audit controls, and administration. We have excellent organizational focus from headquarters throughout our divisional businesses with clarity and minimal duplicative work streams. We are structured for growth and will do future bolt-on acquisitions.

Our three reportable segments are: the Air Pollution Control Segment (“APC”), which produces various types of product recovery and air pollution control technologies; the Energy Segment, which produces customized solutions for the power and petrochemical industry; and the Fluid Handling and Filtration Segment (“FHF”), which produces high quality pump, filtration and fume exhaust solutions. It is through combining the efforts of some or all of these groups that we are able to offer complete turnkey systems to our customers and leverage the operational efficiencies between our family of companies.

Our contracts are obtained either through competitive bidding or as a result of negotiations with our customers. Contract terms offered by us are generally dependent on the complexity and risk of the project as well as the resources that will be required to complete the project. For example, a contract that can be performed primarily by subcontractors and that does not require us to use our fabrication and assembly facilities can be quoted at a lower gross margin than a more typical contract that will require additional factory overhead and administrative expenses. Our focus is on increasing our operating margins as well as our gross margin percentage, which translates into higher net income.

22

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Note Regarding Use of Non-GAAP Financial Measures

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These GAAP financial statements include certain charges the Company believes are not indicative of its ongoing operational performance.

As a result, the Company provides financial information in this MD&A that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides this supplemental non-GAAP financial information because the Company’s management utilizes it to evaluate its ongoing financial performance and the Company believes it provides greater transparency to investors as supplemental information to its GAAP results.

The Company has provided the non-GAAP financial measure of non-GAAP operating income as a result of items that the Company believes are not indicative of its ongoing operations. These include charges associated with the Company’s acquisition and integration of Aarding Thermal Acoustics B.V. (“Aarding”), Met-Pro Corporation (“Met-Pro”), HEE Environmental Engineering, LLC (“HEE”), SAT Technology, Inc. (“SAT”), Emtrol LLC (“Emtrol”), and Jiangyin Zhongli Industrial Technology Co. Ltd. (“Zhongli”) and the items described below in “Consolidated Results.” The Company believes that evaluation of its financial performance compared with prior and future periods can be enhanced by a presentation of results that exclude the impact of these items. As a result of the Company’s recently completed acquisitions, the Company has incurred substantial charges associated with the acquisition and integration of these companies. See Note 16 to the unaudited condensed consolidated financial statements for further information on these acquisitions.

Note Regarding Merger

On May 3, 2015, the Company entered into a definitive merger agreement to acquire PMFG, Inc. (“PMFG”). PMFG is a global provider of engineered equipment for the abatement of air pollution, the separation and filtration of contaminants from gases and liquids, and industrial noise control equipment. Pursuant to the terms of the merger agreement, the Company, through it’s wholly owned subsidiaries, will acquire all of the outstanding shares of PMFG common stock in a transaction valued at a total of approximately $150 million in the aggregate (equity value), or $6.85 per share. Under the terms of the merger agreement, PMFG’s stockholders may elect to exchange each share of PMFG common stock for either $6.85 in cash and/or shares of our common stock having an equivalent value based on the volume weighted average trading price of our common stock for the 15-trading day period ending on the trading day immediately preceding the closing of the merger, subject to a collar. Elections are subject to proration such that approximately 55% of PMFG’s outstanding shares will be exchanged for stock and 45% for cash.

The completion of the merger is subject to customary closing conditions including the approval of the stockholders of both the Company and PMFG. The Company has received a financing commitment from Bank of America Merrill Lynch, as Lead Arranger and Administrative Agent, to increase and amend the Credit Facility to fund the cash portion of the merger consideration.

The boards of directors of each of the Company and PMFG have unanimously approved the merger. CECO stockholders who own approximately 15% of the current voting power of the Company have signed voting agreements and irrevocable proxies to vote in favor of the merger.

This merger is expected to close in the third quarter of 2015.

For additional information related to the merger and the merger agreement, please refer to our Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on May 4, 2015. The foregoing description of the merger agreement is qualified in its entirety by reference to the full text of the merger agreement which is incorporated by reference as Exhibit 2.1 to this quarterly report on Form 10-Q.

23

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Results of Operations

Consolidated Results

Our Condensed Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2015 and 2014 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2015			2014			2015			2014
Net sales	$	86.9		$	66.6		$	167.9		$	123.8
Cost of sales		60.3			45.2			120.3			82.6
Gross profit	$	26.6		$	21.4		$	47.6		$	41.2
Percent of sales		30.6	%		32.1	%		28.3	%		33.3	%
Selling and administrative expenses	$	14.4		$	11.7		$	28.1		$	23.4
Percent of sales		16.6	%		17.6	%		16.7	%		18.9	%
Acquisition and integration expenses	$	1.0		$	0.2		$	1.3		$	0.2
Percent of sales		1.1	%		0.3	%		0.8	%		0.2	%
Amortization and earn-out expenses	$	6.7		$	2.4		$	10.7		$	4.9
Percent of sales		7.7	%		3.6	%		6.4	%		4.0	%
Operating income	$	4.5		$	7.2		$	7.5		$	12.7
Operating margin		5.2	%		10.8	%		4.5	%		10.3	%

To compare operating performance between the three-month and six-month periods ended June 30, 2015 and 2014, the Company has adjusted GAAP operating income to exclude expenses related to acquisition activities, which include retention, earn-out arrangements, amortization, legal, accounting, banking and other expenses. See “Note Regarding Use of Non-GAAP Financial Measures” above. The following table presents the reconciliation of GAAP operating income and GAAP operating margin to non-GAAP operating income and non-GAAP operating margin:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2015			2014			2015			2014
Operating income as reported in accordance with GAAP	$	4.5		$	7.2		$	7.5		$	12.7
Operating margin in accordance with GAAP		5.2	%		10.8	%		4.5	%		10.3	%
Plant, property and equipment valuation adjustment		0.1			0.1			0.3			0.3
Acquisition and integration expenses		1.0			0.2			1.3			0.2
Amortization and earn-out expenses		6.7			2.4			10.7			4.9
Non-GAAP operating income	$	12.3		$	9.9		$	19.8		$	18.1
Non-GAAP operating margin		14.1	%		14.9	%		11.8	%		14.6	%

Consolidated sales for the second quarter of 2015 increased $20.3 million, or 30.5%, to $86.9 million compared with $66.6 million in the second quarter of 2014. The increase is primarily attributable to Emtrol, acquired in November 2014, which contributed $8.3 million in sales, and Zhongli, acquired in December 2014, which contributed $8.4 million in sales for the second quarter of 2015. Additionally, the Aarding business increased sales $4.8 million and Buell-FKI increased sales by $2.2 million in the second quarter of 2015 compared with the second quarter of 2014. These increases were partially offset by decreases in sales of the Effox-Flextor business of $2.5 million, and the Kirk and Blum business of $2.3 million in the second quarter of 2015 compared with the second quarter of 2014.

Consolidated sales for the first six months of 2015 increased $44.1 million, or 35.6%, to $167.9 million compared with $123.8 million in the first six months of 2014. The increase is primarily attributable to Emtrol, acquired in November 2014, which contributed $18.7 million in sales, and Zhongli, acquired in December 2014, which contributed $15.7 million in sales for the first six months of 2015. Additionally, the Aarding business increased sales $9.6 million and Buell-FKI increased sales by $7.4 million in the first six months of 2015 compared with the first six months of 2014. These increases were partially offset by decreases in sales of the Effox-Flextor business of $5.5 million, the Adwest business of $2.4 million, and the Kirk and Blum business of $2.9 million in the first six months of 2015 compared with the first six months of 2014.

24

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Gross profit increased $5.2 million, or 24.1%, to $26.6 million in the second quarter of 2015 compared with $21.4 million in the same period of 2014. The increase is primarily attributable to Emtrol, which contributed $1.9 million in gross profit, and Zhongli, which contributed $2.2 million in gross profit for the second quarter of 2015. Gross profit as a percentage of sales was 30.6% in the second quarter 2015 compared with 32.1% in the second quarter of 2014. The lower gross profit margin in the second quarter of 2015 was primarily due to margins related to the Emtrol and Zhongli acquisitions, as well a decrease at the Aarding business.

Gross profit increased $6.4 million, or 15.6%, to $47.6 million in the first six months of 2015 compared with $41.2 million in the same period of 2014. The increase is primarily attributable to Emtrol, which contributed $3.8 million in gross profit, and Zhongli, which contributed $4.0 million in gross profit for the first six months of 2015. These increases were partially offset by a decrease in gross profit of the Effox-Flextor business of $3.1 million in the first six months of 2015 compared with the first six months of 2014. Gross profit as a percentage of sales was 28.3% in the first six months 2015 compared with 33.3% in the first six months of 2014. The lower gross profit margin in the first six months of 2015 was primarily due to margins related to the Emtrol and Zhongli acquisitions, as well decreases at the Aarding and Effox-Flextor businesses.

Orders booked were $74.6 million during the second quarter of 2015 and $168.5 million during the first six months of 2015, as compared with $57.7 million during the second quarter of 2014 and $121.3 million during the first six months of 2014. The increases in 2015 periods were primarily due to the 2014 acquisitions, which represented $19.4 million of total bookings in the second quarter of 2015 and $43.8 million of total bookings in the first six months of 2015.

Selling and administrative expenses increased $2.7 million to $14.4 million for the second quarter of 2015 compared with $11.7 million for the second quarter of 2014. The increase is primarily attributable to incremental selling and administrative expenses from the Emtrol and Zhongli acquisitions.

Selling and administrative expenses increased $4.7 million to $28.1 million for the first six months of 2015 compared with $23.4 million for the first six months of 2014. The increase is primarily attributable to incremental selling and administrative expenses from the Emtrol and Zhongli acquisitions.

Acquisition and integration expenses were $1.0 million and $0.2 million during the second quarter of 2015 and 2014, respectively, and $1.3 million and $0.2 million during the first six month of 2015 and 2014, respectively. The increase in such expenses are related primarily to the pending PMFG acquisition and included legal, accounting, banking and other expenses.

Amortization and earn-out expense was $6.7 million for the second quarter of 2015 compared with $2.4 million for the second quarter of 2014. The increase was primarily attributable to the Emtrol and Zhongli acquisitions. Included in the second quarter 2015 expense was $3.6 million, which related the fair value adjustment of the Zhongli earn-out during the period.

Amortization and earn-out expense was $10.7 million for the first six months of 2015 compared with $4.9 million for the first six months of 2014. The increase was primarily attributable to the Emtrol and Zhongli acquisitions. Included in the first six months of 2015 expense was $4.5 million, which related to the fair value adjustment of the Zhongli earn-out during the period.

Operating income decreased $2.7 million to $4.5 million in the second quarter of 2015 compared with $7.2 million during the same quarter of 2014. Emtrol contributed $1.0 million in operating income, while Zhongli had an operating loss of $1.8 million (inclusive of the $3.6 million fair value adjustment to the earn-out liability described above) for the second quarter of 2015. In addition, there were increases of in corporate level operating expenses, which were driven primarily by increasing the size of the Company from 2014 acquisitions, as well as the acquisition and integration expenses described above.

Operating income decreased $5.2 million to $7.5 million in the first six months of 2015 compared with $12.7 million during the same period of 2014. Emtrol contributed $1.8 million in operating income, while Zhongli had an operating loss of $1.3 million (inclusive of the $4.5 million fair value adjustment to the earn-out liability described above) for the second quarter of 2015. There was also a decrease in the operating income of the Effox-Flextor business of $3.1 million during the first six months of 2015. In addition, there were increases of in corporate level operating expenses, which were driven primarily by increasing the size of the Company due to the 2014 acquisitions, as well as the acquisition and integration expenses described above.

On a non-GAAP basis non-GAAP operating income was $12.3 million for the second quarter of 2015 compared with $9.9 million for the second quarter of 2014. The increase is primarily due to the increase in gross profit described above. Non-GAAP operating income as a percentage of sales decreased from 14.9% for the second quarter of 2014 to 14.1% for the second quarter of 2015.

25

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

On a non-GAAP basis non-GAAP operating income was $19.8 million for the first six months of 2015 compared with $18.1 million for the first six months of 2014. The increase is primarily due to the increase in gross profit described above. Non-GAAP operating income as a percentage of sales decreased from 14.6% for the first six months of 2014 to 11.8% for the first six months of 2015.

Other income/expense, net was $0.6 million of income in the second quarter of 2015 compared with $0.1 million of expense in the second quarter of 2014. The change was due primarily the effect of the strengthening of the Euro on an intercompany loan with a foreign subsidiary, which resulted in $0.6 million of income during the second quarter of 2015.

Other income/expense, net was $1.2 million of expense in the first six months of 2015 compared with $0.2 million in the first six months of 2014. The change was due primarily the effect of the weakening of the Euro on an intercompany loan with a foreign subsidiary, which resulted in $2.1 million of expense during the first six months of 2015. This expense was offset by net foreign currency exchange gains from normal business operations of $0.9 million.

Interest expense increased to $1.2 million in the second quarter of 2015 from $0.7 million in the second quarter of 2014. The increase is due primarily to borrowings incurred in connection with the Emtrol acquisition.

Interest expense increased to $2.1 million in the second quarter of 2015 from $1.5 million in the first six months of 2014. The increase is due primarily to borrowings incurred in connection with the Emtrol acquisition.

Income tax expense was $1.8 million for the second quarter of 2015 compared with $1.8 million for the same quarter of 2014. The effective income tax rate for the second quarter of 2015 was 45.7% compared with 28.9% for the comparable period of 2014. Income tax expense was $1.9 million for the first six months of 2015 compared with $3.5 million for the same period of 2014. The effective income tax rate for the first six months of 2015 was 44.7% compared with 31.5% for the comparable period of 2014. This rate increase for the three and six month periods is due primarily to permanent differences related to non-deductible acquisition and earn-out expenses. Our effective tax rate is affected by certain permanent differences, including non-deductible incentive stock-based compensation and acquisition related expenses, certain income tax reserves/deferrals, impact of foreign rate differences and tax holidays from foreign operations.

Business Segments

The Company’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 unaudited Condensed Consolidated Statements of Income.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015			2014
Net Sales (less intra-, inter-segment sales)
Air Pollution Control Segment	$	41,798	$	32,939	$	83,514		$	59,687
Energy Segment		27,303		16,835		51,652			32,116
Fluid Handling and Filtration Segment		17,745		16,650		32,939			32,145
Corporate and Other(1)		115		217		(159	)		(137	)
Net sales	$	86,961	$	66,641	$	167,946		$	123,811

(1) Includes adjustment for revenue on intercompany jobs.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Income from Operations
Air Pollution Control Segment	$	5,140		$	4,876		$	9,158		$	8,742
Energy Segment		215			1,596			635			3,983
Fluid Handling and Filtration Segment		4,431			3,069			7,387			5,740
Corporate and Other(2)		(5,074	)		(2,221	)		(8,891	)		(4,956	)
Eliminations		(224	)		(132	)		(822	)		(829	)
Income from operations	$	4,488		$	7,188		$	7,467		$	12,680

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CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

(2) Includes corporate compensation, professional services, information technology, acquisitions and integration expenses, and other general and administrative corporate expenses.

Air Pollution Control Segment

Our APC Segment net sales increased $8.9 million to $41.8 million in the second quarter of 2015 compared with $32.9 million in the same period of 2014. The increase is primarily attributable to Emtrol, acquired in November 2014, which contributed $8.3 million, and SAT, acquired in September 2014, which contributed $0.7 million in sales for the second quarter of 2015. Additionally, the Buell-FKI business increased sales by $2.2 million in the second quarter of 2015 compared with the second quarter of 2014. These increases were partially offset by decreases in sales of the Adwest business of $1.2 million, and the Kirk and Blum business of $2.3 million in the second quarter of 2015 compared with the second quarter of 2014.

Our APC Segment net sales increased $23.8 million to $83.5 million in the first six months of 2015 compared with $59.7 million in the same period of 2014. The increase is primarily attributable to Emtrol, acquired in November 2014, which contributed $18.7 million, and SAT, acquired in September 2014, which contributed $1.5 million in sales for the first six months of 2015. Additionally, the Buell-FKI business increased sales by $7.4 million in the first six months of 2015 compared to the first six months of 2014. These increases were partially offset by decreases in sales of the Adwest business of $2.3 million and the Kirk and Blum business of $2.9 million in the first six months of 2015 compared with the first six months of 2014.

Operating income from APC increased $0.2 million to $5.1 million in the second quarter of 2015 from $4.9 million in the same period of 2014. This increase was primarily due to the Emtrol acquisition, which contributed $1.0 million in operating income, partially offset by a decrease in operating income of $0.4 million for the Kirk and Blum business.

Operating income from APC increased $0.5 million to $9.2 million in the first six months of 2015 from $8.7 million in the same period of 2014. This increase was primarily due to the Emtrol acquisition, which contributed $1.8 million in operating income, offset by decreases in operating income of $0.4 million in the Busch business and $0.8 million for the Adwest business.

Energy Segment

Our Energy Segment net sales increased $10.5 million to $27.3 million in the second quarter of 2015 compared with $16.8 million in the second quarter of 2014. The increase is primarily attributable to Zhongli, acquired in December 2014, which contributed $8.4 million in sales for the second quarter of 2015. Additionally, the Aarding business increased sales $4.8 million in the second quarter of 2015 compared with the second quarter of 2014. These increases were partially offset by a decrease in sales of the Effox-Flextor business of $2.5 million in the second quarter of 2015 compared with the second quarter of 2014.

Our Energy Segment net sales increased $19.5 million to $51.6 million in the first six months of 2015 compared with $32.1 million in the first six months of 2014. The increase is primarily attributable to Zhongli, acquired in December 2014, which contributed $15.7 million in sales for the first six months of 2015. Additionally, the Aarding business increased sales $9.6 million in the first six months of 2015 compared with the first six months of 2014. These increases were partially offset by a decrease in sales of the Effox-Flextor business of $5.5 million in the first six months of 2015 compared with the first six months of 2014.

Operating income for the Energy Segment was $0.2 million in the second quarter of 2015 compared with $1.6 million in the second quarter of 2014. There was a $0.3 million decrease in Effox-Flextor operating income, partially offset by an increase in operating income of $0.9 million in the Aarding business, as well as $1.9 million in operating loss from Zhongli which included a fair value adjustment of $3.6 million to the earn-out liability.

Operating income for the Energy Segment was $0.6 million in the first six months of 2015 compared with $4.0 million in the first six months of 2014. There was a $3.2 million decrease in Effox-Flextor operating income, partially offset by an increase in operating income of $1.3 million in the Aarding business, as well as $1.4 million in operating loss from Zhongli which included a fair value adjustment of $4.5 million to the earn-out liability.

Fluid Handling and Filtration Segment

Our FHF Segment net sales increased $1.0 million to $17.7 million in the second quarter of 2015 compared with $16.7 million in the second quarter of 2014. The increase was primarily due to an increase of $1.3 million in our Strobic Air business, partially offset by a decrease of $0.8 million in our CECO Filters business in the second quarter of 2015 compared with the second quarter of 2014.

27

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Our FHF Segment net sales increased $0.8 million to $32.9 million in the first six months of 2015 compared with $32.1 million in the first six months of 2014. The increase was primarily due to an increase of $1.8 million in our Strobic Air business, partially offset by a decrease of $1.2 million in our CECO Filters business in the first six months of 2015 compared with the second quarter of 2014.

Operating income for FHF was $4.4 million in the second quarter of 2015 compared with $3.1 million in the second quarter of 2014. This increase was due to increases in operating income in the Global Pump Solutions business and the Strobic Air business, partially offset by a decrease in operating income in our other filtration businesses.

Operating income for FHF was $7.4 million in the first six months of 2015 compared with $5.7 million in the first six months of 2014. This increase was due to increases in operating income in the Global Pump Solutions business and the Strobic Air business, partially offset by a decrease in operating income in our other filtration businesses.

Backlog

Backlog is a representation of the amount of revenue expected from complete performance of firm fixed-price contracts that have not been completed for products and services we expect to substantially deliver within the next twelve-month period. Our customers may have the right to cancel a given order, although historically cancellations have been rare. Our backlog as of June 30, 2015, was $140.6 million compared with $140.1 million as of December 31, 2014. Backlog is not defined by GAAP and our methodology for calculating backlog may not be consistent with methodologies used by other companies. There can be no assurances that backlog will be replicated, increased or translated into higher revenues in the future. The success of our business depends on a multitude of factors related to our backlog and the orders secured during the subsequent periods. Certain contracts are highly dependent on the work of contractors and other subcontractors participating in a project, over which we have no or limited control, and their performance on such project could have an adverse effect on the profitability of our contracts. Delays resulting from these contractors and subcontractors, changes in the scope of the project, weather, and labor availability also can have an effect on a contract’s profitability.

New Accounting Pronouncements

For information regarding recent accounting pronouncements, see Note 2 to the unaudited condensed consolidated financial statements within Item 1 of this Quarterly Report on Form 10-Q.

Liquidity and Capital Resources

Our principal sources of liquidity are cash flow from operations and available borrowings under our Credit Facility (defined below). Our principal uses of cash are operating costs, payment of principal and interest on our outstanding debt, dividends, working capital and other corporate requirements, including acquisitions.

At June 30, 2015 and December 31, 2014, cash and cash equivalents totaled $17.1 million and $19.4 million, respectively. As of June 30, 2015 and December 31, 2014, $9.5 million and $11.7 million, respectively, of our cash and cash equivalents were held by certain non-U.S. subsidiaries, as well as being denominated in foreign currencies.

On March 31, 2014, Aarding entered into a one-month foreign exchange forward contract to manage exposure to foreign currency fluctuations on a U.S. dollar-denominated transaction totaling $5.5 million. The contract expired prior to June 30, 2015 and there were no such outstanding contracts as of June 30, 2015.

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CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Debt consisted of the following at June 30, 2015 and December 31, 2014:

(Table only in thousands)	June 30, 2015			December 31, 2014
Outstanding borrowings under Credit Facility (defined below). Term loan payable in quarterly principal installments of $2.2 million through September 2016, $2.8 million through September 2017, and $3.3 million thereafter with balance due upon maturity in August 2018.
- Term loan	$	85,690		$	90,072
- U.S. Dollar revolving loans		24,000			24,000
- Multi-currency revolving loans		—			—
- Unamortized debt discount		(1,551	)		(1,796	)
Total outstanding borrowings under Credit Facility		108,139			112,276
Outstanding borrowings (U.S. dollar equivalent) under Aarding Facility (defined below)		3,469			—
Outstanding borrowings (U.S. dollar equivalent) under Euro-denominated note payable to a bank, payable in quarterly installments of €25 ($28 as of June 30, 2015), plus interest, at a fixed rate of 3.82%, maturing January 2016. Collateralized by the Heerenveen, Netherlands building.		82			152
Total outstanding borrowings		111,690			112,428
Less: current portion		12,317			8,887
Total debt, less current portion	$	99,373		$	103,541

U.S. Debt

On August 27, 2013, the Company entered into a credit agreement (the “Credit Agreement”) with various lenders (the “Lenders”) and letter of credit issuers (each, an “L/C Issuer”), and Bank of America, N.A., as Administrative Agent (the “Agent”), swing line lender and an L/C Issuer, providing for various senior secured credit facilities (collectively, the “Credit Facility”) comprised of a $65.0 million senior secured term loan, a $70.5 million senior secured U.S. dollar revolving credit facility for U.S. dollar revolving loans with sub-facilities for letters of credit and swing-line loans, and a $19.5 million senior secured multi-currency revolving credit facility for U.S. dollar and specific foreign currency loans.

Concurrent with the closing of the Met-Pro acquisition on August 27, 2013, the Company borrowed $65.0 million in term loans and $52.0 million in U.S. dollar revolving loans and used the proceeds to (i) finance the cash portion of the acquisition, (ii) pay off certain outstanding indebtedness of the Company and its subsidiaries (including certain indebtedness of Met-Pro and its subsidiaries), and (iii) pay certain fees and expenses incurred in connection with the Credit Agreement and the acquisition.

On November 18, 2014, the Company amended the Credit Agreement. Pursuant to the amendment (i) certain lenders provided an additional term loan under the Credit Agreement in an aggregate principal amount of $35.0 million and certain lenders increased their revolving credit commitments in an aggregate principal amount of up to $15.0 million, and (ii) the Credit Agreement was amended to, among other things, (a) modify the calculation of Consolidated EBITDA to include certain pro forma adjustments related to certain acquisitions and other transactions, (b) modify the Consolidated Leverage Ratio covenant and (c) permit additional investments in foreign subsidiaries and additional indebtedness by foreign subsidiaries. The proceeds from the additional term loan were used primarily to finance the acquisition of Emtrol and related expenses. Additionally, the Company has the option to obtain additional commitments for either the U.S. dollar revolving credit facility or the term loan facility in an aggregate principal amount not to exceed $50.0 million.

As of June 30, 2015 and December 31, 2014, $8.3 million and $9.5 million of letters of credit were outstanding, respectively. Total unused credit availability under the Credit Facility was $72.7 million and $71.5 million at June 30, 2015 and December 31, 2014, respectively. Revolving loans may be borrowed, repaid and reborrowed until August 27, 2018, at which time all amounts borrowed pursuant to the Credit Facility must be repaid.

29

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

At the Company’s option, revolving loans and the term loans accrue interest at a per annum rate based on either the highest of (a) the federal funds rate plus 0.5%, (b) the Agent’s prime lending rate, and (c) one-month LIBOR plus 1.00%, plus a margin ranging from 0.5% to 1.5% depending on the Company’s consolidated leverage ratio (“Base Rate”), or a Eurocurrency Rate (as defined in the Credit Agreement) plus 1.5% to 2.5% depending on the Company’s consolidated leverage ratio. Interest on swing line loans is the Base Rate.

Accrued interest on Base Rate loans is payable quarterly in arrears on the last day of each calendar quarter and at maturity. Interest on Eurocurrency Rate loans is payable on the last date of each applicable Interest Period (as defined in the agreement), but in no event less than once every three months and at maturity. The weighted average interest rate on outstanding borrowings was 2.73% and 2.24% at June 30, 2015 and December 31, 2014, respectively.

The Company has granted a security interest in substantially all of its assets to secure its obligations pursuant to the Credit Agreement. The Company’s obligations under the Credit Agreement are guaranteed by the Company’s U.S. subsidiaries and such guaranty obligations are secured by a security interest on substantially all of the assets of such subsidiaries, including certain real property. The Company’s obligations under Credit Agreement may also be guaranteed by the Company’s material foreign subsidiaries to the extent no adverse tax consequences would result to the Company.

The Credit Agreement contains customary affirmative and negative covenants, including the requirement to maintain compliance with a consolidated leverage ratio of less than 3.25 and a consolidated fixed charge coverage ratio of more than 1.25. The Credit Agreement also includes customary events of default and the occurrence of an event of default could result in an increased interest rate equal to 2.0% above the applicable interest rate for loans, the acceleration of the Company’s obligations pursuant to the Credit Agreement and an obligation of the subsidiary guarantors to repay the full amount of the Company’s borrowings pursuant to the Credit Agreement.

As of June 30, 2015 and December 31, 2014, the Company was in compliance with all related financial and other restrictive covenants under the Credit Agreement.

The Company has paid $3.1 million of other customary closing fees, arrangement fees, administration fees, letter of credit fees and commitment fees for the Credit Agreement and amendments thereto. As of June 30, 2015 and December 31, 2014, capitalized deferred financing costs of $0.5 million and $0.5 million, respectively, are included in deferred charges and other assets and $1.6 million and $1.8 million, respectively, are included as a discount to debt in the accompanying Condensed Consolidated Balance Sheets. Amortization expense was $0.1 million and $0.2 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.2 million and $0.3 million for the six-month periods ended June 30, 2015 and 2014, respectively, and is classified as interest expense.

Foreign Debt

The Company has a €10.5 million facilities agreement, originally dated August 17, 2012 (as amended from time to time), made between our Netherland’s subsidiaries ATA Beheer B.V. and Aarding Thermal Acoustics B.V., as borrowers and ING Bank N.V. as the lender (“Aarding Facility”). The facilities agreement includes a €7.0 million bank guarantee facility and a €3.5 million overdraft facility. The bank guarantee interest rate is the three months Euribor plus 265 basis points (2.65% as of June 30, 2015) and the overdraft interest rate is three months Euribor plus 195 basis points (1.95% as of June 30, 2015). All of the borrowers’ assets are pledged for this facility, and the borrowers’ solvency ratio must be at least 30% and net debt/last twelve months EBITDA less than 3.0. As of June 30, 2015 and December 31, 2014, the borrowers were in compliance with all related financial and other restrictive covenants, and expect continued compliance. As of June 30, 2015, €6.8 million ($7.5 million) of the bank guarantee and €3.1 million ($3.5 million) of the overdraft facility are being used by the borrowers. As of December 31, 2014, €5.5 million ($6.7 million) of the bank guarantee and none of the overdraft facility was being used by the borrowers. There is no stated expiration date on this facilities agreement.

30

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Total unused credit availability under our existing Credit Facility and other non-U.S. credit facilities and agreements, exclusive of any potential asset base limitations, is as follows:

($’s in millions)	June 30, 2015			December 31, 2014
Credit Facility, U.S. Dollar revolving loans	$	85.5		$	85.5
Draw down		(24.0	)		(24.0	)
Letters of credit open		(8.3	)		(9.5	)
Credit Facility, Multi-currency revolving facilities		19.5			19.5
Netherlands facilities (€10.5 million at June 30, 2015 and December 31, 2014 in U.S. Dollar equivalent)		11.7			12.8
Draw down		(3.5	)		—
Letters of credit open		(7.5	)		(6.7	)
Total unused credit availability	$	73.4		$	77.6

Overview of Cash Flows and Liquidity

	For the six months ended June 30,
($’s in thousands)	2015			2014
Net cash (used in) provided by operating activities	$	(50	)	$	1,771
Net cash provided by investing activities		2,055			6,413
Net cash used in financing activities		(4,278	)		(13,057	)
Net decrease in cash	$	(2,273	)	$	(4,873	)

For the six months ended June 30, 2015, $0.1 million of cash was used in operating activities compared with $1.8 million provided by operating activities in the prior year period. There was a $5.2 million decrease in net income between periods, which was offset by an increase in depreciation and amortization of $1.5 million, a decrease of $2.5 million in cash paid for legal settlements, an increase of $0.5 million in other asset and liabilities, and $1.5 million in reductions resulting from fluctuations in other working capital accounts during the first six months of 2015 compared with the same period in the prior year.

For the six months ended June 30, 2015, net cash provided by investing activities was $2.1 million compared with net cash provided by investing activities of $6.4 million in the prior year period. Cash provided by investing activities was primarily the result of proceeds from sales of property and equipment, including assets held for sale, totaling $2.4 million, offset by cash used for additions to property and equipment of $0.3 million. In the prior year period, cash provided by investing activities was primarily the result of proceeds from sales of property and equipment, including assets held for sale, totaling $7.1 million, partially offset by additions to property and equipment of $0.7 million.

For the six months ended June 30, 2015, financing activities used cash of $4.3 million due to net payments on credit facilities of $1.0 million and $3.5 million in dividends paid to common stockholders. For the six months ended June 30, 2014, financing activities used cash of $13.1 million due to debt repayments of $10.1 million, dividends paid of $2.8 million and repurchases of common stock totaling $1.0 million, partially offset by proceeds from the exercise of stock options and employee stock purchase plan of $0.8 million.

Our dividend policy and the payment of cash dividends under that policy are subject to the Board of Directors’ continuing determination that the dividend policy and the declaration of dividends are in the best interest of the Company’s stockholders. Future dividends and the dividend policy may be changed or cancelled at the Company’s discretion at any time. Payment of dividends is also subject to the continuing consent of our lender under our Credit Facility.

When we undertake large jobs, our working capital objective is to make these projects self-funding. We work to achieve this by obtaining initial down payments, progress billing contracts, when possible, utilizing extended payment terms from material suppliers, and paying sub-contractors after payment from our customers, which is an industry practice. Our investment in net working capital is funded by cash flow from operations and by our revolving line of credit.

31

CECO ENVIRONMENTAL CORP. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Critical Accounting Policies and Estimates

Management’s discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s condensed consolidated financial statements. The preparation of these financial statements requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses. Such estimates include revenue recognition, the valuation of trade receivables, inventories, goodwill, intangible assets, other long-lived assets, legal contingencies, guarantee obligations and assumptions used in the calculation of income taxes, and pension and post-retirement benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management monitors the economic conditions and other factors and will adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Management believes there have been no significant changes during the three and six month periods ended June 30, 2015 to the items that the Company disclosed as its critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects or future results of operations or financial position made in this Quarterly Report on Form 10-Q are forward-looking. We use words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “plan,” “should” and similar expressions to identify forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions that are subject to risks and uncertainties, many of which are beyond our control, which may cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements. Potential risks, among others, that could cause actual results to differ materially are discussed under “Part I – Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and under “Part II – Item 1A. Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and include, but are not limited to: the ability to successfully complete the acquisition of PMFG; factors related to our business, including economic and financial market conditions generally and economic conditions in our service areas; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for contract revenue; fluctuations in operating results from period to period due to seasonality of the business; the effect of growth on our infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation; changes in or developments with respect to any litigation or investigation; the potential for fluctuations in prices for manufactured components and raw materials; the substantial amount of debt incurred in connection with our recent acquisitions and our ability to repay or refinance it or incur additional debt in the future; the ability to successfully integrate recent acquisitions; the impact of federal, state or local government regulations; economic and political conditions generally; and the effect of competition in the product recovery, air pollution control, and fluid handling and filtration industries. Many of these risks are beyond management’s ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

32

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to certain market risks, primarily changes in interest rates. Market risk is the potential loss arising from adverse changes in market rates and prices, such as foreign currency exchange and interest rates. For the Company, these exposures are primarily related to changes in interest rates. We do not currently hold any derivatives or other financial instruments purely for trading or speculative purposes.

The carrying value of the Company’s long-term debt and current maturities of long-term debt was $113.2 million at June 30, 2015. Market risk was estimated as the potential decrease (increase) in future earnings and cash flows resulting from hypothetical 10% increase (decrease) in the Company’s estimated weighted average borrowing rate at June 30, 2015. Most of the interest on the Company’s debt is indexed to either the LIBOR or EURIBOR market rates. The estimated impact of a hypothetical 10% change in the estimated weighted average borrowing rate at June 30, 2015 is $0.3 million on an annual basis.

The Company has wholly-owned subsidiaries located in the Netherlands, Canada, the People’s Republic of China, Mexico, Great Britain, and Chile. In the past, we have not hedged our foreign currency exposure, and fluctuations in exchange rates have not materially affected our operating results. Future changes in exchange rates may positively or negatively impact our revenues, operating expenses and earnings. On March 31, 2014, Aarding entered into a one-month foreign exchange forward contract to manage exposure to foreign currency fluctuations on a U.S. dollar-denominated transaction totaling $5.5 million. The contract expired prior to June 30, 2015 and there are no such contracts outstanding as of June 30, 2015.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were not effective due to the material weakness in our internal control over financial reporting that existed as of June 30, 2015, as discussed below.

As previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, we identified significant deficiencies in the financial reporting close process related to the adequacy of accounting personnel and oversight, accounting for income taxes, and segregation of duties, among others, that, when taken in the aggregate, amounted to a material weakness in our internal control over financial reporting.

With respect to our internal control over financial reporting, these significant deficiencies have been discussed among management and our Audit Committee. Management intends to review, revise and improve our internal control over financial reporting until the material weaknesses in internal control over financial reporting has been eliminated.

Management’s specific remediation to address these significant deficiencies includes among other items: a) enhancing corporate financial reporting resources, particularly for oversight, process improvement and income tax review, b) improving segregation of duties, and c) reinforcing internal policies with all process owners.

We believe the remediation measures will strengthen our internal control over financial reporting and remediate the material weakness identified. However, as we are still assessing the design and operating effectiveness of these measures, the identified material weakness has not been fully remediated as of June 30, 2015. We will continue to monitor the effectiveness of these remediation measures and will make any changes and take such other actions that we deem appropriate.

33

We assessed the material weakness’ impact to the consolidated financial statements to ensure they were prepared in accordance with GAAP and present fairly the consolidated financial position, financial results of operations and cash flows as of and for the three months ended June 30, 2015. Based on these additional procedures and assessment, we concluded that the consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly, in all material aspects, our financial position, results of operations and cash flows for the periods presented.

Changes in Internal Control Over Financial Reporting

Other than the remediation measures noted above, during the three months ended June 30, 2015, there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting, except as described above.

Limitations on the Effectiveness of Controls

Control systems, no matter how well conceived and operated, are designed to provide a reasonable, but not an absolute, level of assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. The Company conducts periodic evaluations of its internal controls to enhance, where necessary, its procedures and controls.

34

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information with respect to legal proceedings can be found in Note 15 “Commitments and Contingencies – Legal Matters” to the Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes in the Company’s risk factors that we disclosed in “Part I – Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2014 and “Part II – Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

35

ITEM 6. EXHIBITS

2.1*	Agreement and Plan of Merger by and among PMFG, Inc., CECO Environmental Corp., Top Gear Acquisition Inc. and Top Gear Acquisition II LLC, dated as of May 3, 2015 (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed with the SEC on May 4, 2015 (File No. 000-07099)).
10.1	Commitment Letter, dated May 3, 2015, from Bank of America, NA and Merrill Lynch, Pierce, Fenner & Smith Incorporated (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on May 4, 2015 (File No. 000-07099)).
31.1	Rule 13(a)/15d-14(a) Certification by Chief Executive Officer
31.2	Rule 13(a)/15d-14(a) Certification by Chief Financial Officer
32.1	Certification of Chief Executive Officer (18 U.S. Section 1350)
32.2	Certification of Chief Financial Officer (18 U.S. Section 1350)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* The Company has omitted schedules and similar attachments to the subject agreement pursuant to Item 601(b) of Regulation S-K. The Company will furnish a copy of any omitted schedule or similar attachment to the SEC upon request.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CECO Environmental Corp.
By:	/s/    Edward J. Prajzner
	Edward J. Prajzner
	Chief Financial Officer and Secretary

Date: August 7, 2015

37

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeffrey Lang, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CECO Environmental Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Jeffrey Lang

Jeffrey Lang

Chief Executive Officer

Date: August 7, 2015

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Edward J. Prajzner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CECO Environmental Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Edward J. Prajzner

Edward J. Prajzner

Chief Financial Officer

Date: August 7, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CECO Environmental Corp. (the “Company”) on Form 10-Q for the three-month period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey Lang, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge and belief, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Jeffrey Lang

Jeffrey Lang

Chief Executive Officer

Date: August 7, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CECO Environmental Corp. (the “Company”) on Form 10-Q for the three-month period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Edward J. Prajzner, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge and belief, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Edward J. Prajzner

Edward J. Prajzner

Chief Financial Officer

Date: August 7, 2015

XML

Costs and Estimated Earnings on Uncompleted Contracts - Costs and Estimated Earnings on Uncompleted Contracts (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]
Costs incurred on uncompleted contracts	$ 114,248	$ 97,979
Estimated earnings	29,890	28,328
Contract Revenues	144,138	126,307
Less billings to date	(126,505)	(116,533)
Net bills receivable	17,633	9,774
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	31,810	24,371
Billings in excess of costs and estimated earnings on uncompleted contracts	(14,177)	(14,597)
Net bills receivable	$ 17,633	$ 9,774

XML

Pension and Employee Benefit Plans - Components of Pension and Employee Benefit Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 59	$ 50	$ 117	$ 100
Interest cost	352	357	706	715
Expected return on plan assets	(503)	(488)	(1,005)	(976)
Amortization of net actuarial loss	64	44	129	88
Net periodic benefit cost (gain)	(28)	(37)	(53)	(73)
Health Care Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	2	1	3	3
Amortization of loss (gain)	1	$ (1)	3	$ (3)
Net periodic benefit cost (gain)	$ 3		$ 6

XML

Debt - Summary of Debt (Parenthetical) (Detail) - Jun. 30, 2015 € in Thousands, $ in Thousands	EUR (€)	USD ($)
Debt Instrument [Line Items]
Outstanding borrowings under Euro denominated note payable to bank		$ 28
Term Loan [Member] | Debt Instrument, Redemption, through September 2016 [Member]
Debt Instrument [Line Items]
Outstanding borrowings under Euro denominated note payable to bank		$ 2,200
Term loans, year of maturity	2016-09	2016-09
Term Loan [Member] | Debt Instrument, Redemption, through September 2017 [Member]
Debt Instrument [Line Items]
Outstanding borrowings under Euro denominated note payable to bank		$ 2,800
Term loans, year of maturity	2017-09	2017-09
Term Loan [Member] | Debt Instrument, Redemption, through August 2018 [Member]
Debt Instrument [Line Items]
Outstanding borrowings under Euro denominated note payable to bank		$ 3,300
Term loans, year of maturity	2018-08	2018-08
U S Dollar Euro [Member]
Debt Instrument [Line Items]
Outstanding borrowings under Euro denominated note payable to bank | €	€ 25
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Interest rate	3.82%	3.82%
Term loans, year of maturity	2016-01	2016-01

XML

Business Segment Information - Net Sales and Income from Operation by Business Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net sales	$ 86,961	$ 66,641	$ 167,946	$ 123,811
Income from operations	4,488	7,188	7,467	12,680
Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	41,798	32,939	83,514	59,687
Income from operations	5,140	4,876	9,158	8,742
Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	27,303	16,835	51,652	32,116
Income from operations	215	1,596	635	3,983
Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales	17,745	16,650	32,939	32,145
Income from operations	4,431	3,069	7,387	5,740
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net sales	115	217	(159)	(137)
Income from operations	(5,074)	(2,221)	(8,891)	(4,956)
Inter-segment Elimination [Member]
Segment Reporting Information [Line Items]
Net sales	(3,735)	(4,147)	(6,689)	(6,430)
Income from operations	(224)	(132)	(822)	(829)
Inter-segment Elimination [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(1,476)	(2,461)	(3,283)	(3,490)
Inter-segment Elimination [Member] | Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(1,560)	(1,284)	(2,255)	(2,193)
Inter-segment Elimination [Member] | Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales	$ (699)	$ (402)	$ (1,151)	$ (747)

XML

Pension and Employee Benefit Plans - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan contributions	$ 400,000	$ 900,000
Unfunded liability plans	10,700,000		$ 11,100,000
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Anticipated contribution to fund the pension plan during the reminder of the fiscal year	200,000
Health Care Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Anticipated contribution to fund the pension plan during the reminder of the fiscal year	$ 25,000

XML

Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Trade accounts payable, including due to subcontractors	$ 34,303	$ 31,882
Compensation and related benefits	2,121	2,976
Accrued interest	38	193
Current portion of earn-out liability	13,205	8,738
Accrued warranty	778	936
Other accrued expenses	6,059	6,737
Accounts payable and accrued expenses	$ 56,504	$ 51,462

XML

Pension and Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Pension and Employee Benefit Expenses

The components of the expense consisted of the following:

(Table only in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Pension plan:
Service cost	$	59		$	50		$	117		$	100
Interest cost		352			357			706			715
Expected return on plan assets		(503	)		(488	)		(1,005	)		(976	)
Amortization of net actuarial loss		64			44			129			88
Net periodic benefit gain	$	(28	)	$	(37	)	$	(53	)	$	(73	)
Health care plan:
Interest cost	$	2		$	1		$	3		$	3
Amortization of loss (gain)		1			(1	)		3			(3	)
Net periodic benefit cost (gain)	$	3		$	—		$	6		$	—

XML

Business Segment Information - Intra-Segment and Inter-Segment Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net sales	$ 86,961	$ 66,641	$ 167,946	$ 123,811
Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	41,798	32,939	83,514	59,687
Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	27,303	16,835	51,652	32,116
Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales	17,745	16,650	32,939	32,145
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net sales	115	217	(159)	(137)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net sales	91,737	70,791	176,109	130,905
Operating Segments [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	43,833	35,576	87,390	63,660
Operating Segments [Member] | Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	29,445	18,120	54,526	34,310
Operating Segments [Member] | Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales	18,459	17,095	34,193	32,935
Inter-segment Elimination [Member]
Segment Reporting Information [Line Items]
Net sales	(3,735)	(4,147)	(6,689)	(6,430)
Inter-segment Elimination [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(597)	(44)	(722)	(44)
Inter-segment Elimination [Member] | Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(559)	(15)	(593)	(322)
Inter-segment Elimination [Member] | Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales		(161)		(161)
Inter-segment Elimination [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net sales	115	217	(159)	(137)
Inter-segment Elimination [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(1,476)	(2,461)	(3,283)	(3,490)
Inter-segment Elimination [Member] | Air Pollution Control Segment [Member] | Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(559)	(15)	(593)	(322)
Inter-segment Elimination [Member] | Air Pollution Control Segment [Member] | Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales		(161)		(161)
Inter-segment Elimination [Member] | Energy Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(1,560)	(1,284)	(2,255)	(2,193)
Inter-segment Elimination [Member] | Energy Segment [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(582)	(1)	(619)	(1)
Inter-segment Elimination [Member] | Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(699)	(402)	(1,151)	(747)
Inter-segment Elimination [Member] | Fluid Handling and Filtration Segment [Member] | Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Net sales	(15)	(43)	(103)	(43)
Inter-segment Elimination [Member] | Corporate and Other [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net sales	$ 115	$ 217	$ (159)	$ (137)

XML

Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Fair Value Of Financial Instruments [Line Items]
Cash and cash equivalents	$ 17,089	$ 19,362	$ 17,788		$ 22,661
Cash held internationally, principally in Netherlands, China, Great Britain, and Canada	$ 9,500	$ 11,700
Foreign Exchange Contract [Member]
Fair Value Of Financial Instruments [Line Items]
U.S. dollar-denominated transaction total				$ 5,500

XML

Business Segment Information - Property and Equipment Additions, Depreciation and Amortization and Identifiable Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Property and equipment additions	$ 222	$ 296	$ 341	$ 711
Depreciation and amortization	3,491	2,619	6,943	5,389
Identifiable Assets	416,741		416,741		$ 414,365
Air Pollution Control Segment [Member]
Segment Reporting Information [Line Items]
Property and equipment additions	17	132	81	268
Depreciation and amortization	1,104	383	2,257	778
Identifiable Assets	132,457		132,457		133,899
Energy Segment [Member]
Segment Reporting Information [Line Items]
Property and equipment additions	139	33	179	67
Depreciation and amortization	760	564	1,431	1,219
Identifiable Assets	101,372		101,372		91,850
Fluid Handling and Filtration Segment [Member]
Segment Reporting Information [Line Items]
Property and equipment additions	63	119	68	333
Depreciation and amortization	1,590	1,637	3,186	3,325
Identifiable Assets	170,413		170,413		172,779
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Property and equipment additions	3	12	13	43
Depreciation and amortization	37	$ 35	69	$ 67
Identifiable Assets	$ 12,499		$ 12,499		$ 15,837

XML

New Financial Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

New Financial Accounting Pronouncements Adopted

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” ASU 2015-07 requires investments for which fair value is measured at net asset value per share (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy as defined under FASB Topic 820, “Fair Value Measurements.” The FASB issued the ASU to eliminate the diversity in practice resulting from the way in which investments measured at net asset value per share (or its equivalent) with future redemption dates are classified, and also to ensure that all investments categorized in the fair value hierarchy are classified using a consistent approach. ASU 2015-07 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The FASB issued the ASU to simplify the presentation of debt issuance costs, and to align with other existing FASB guidance. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

XML

Earnings and Dividends per Share - Number of Shares Outstanding for Calculation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Basic net income and earnings per share, Numerator (Income)	$ 2,104	$ 4,493	$ 2,302	$ 7,514
Common stock equivalents arising from stock options and employee stock purchase plan, Numerator (Income)	0	0	0	0
Diluted earnings (loss) and earnings (loss) per share, Numerator (Income)	$ 2,104	$ 4,493	$ 2,302	$ 7,514
Basic net income and earnings per share, Denominator (Shares)	26,283,529	25,643,508	26,277,456	25,625,033
Common stock equivalents arising from stock options and employee stock purchase plan, Denominator (Shares)	343,000	464,000	367,000	487,000
Diluted earnings and earnings per share, Denominator (Shares)	26,627,051	26,107,648	26,643,857	26,111,683
Basic net income and earnings per share, Per Share Amount	$ 0.08	$ 0.18	$ 0.09	$ 0.29
Common stock equivalents arising from stock options and employee stock purchase plan, Per Share Amount		(0.01)
Diluted earnings and earnings per share, Per Share Amount	$ 0.08	$ 0.17	$ 0.09	$ 0.29

XML

Goodwill and Intangible Assets - Goodwill / Tradename (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, beginning balance	$ 167,547	$ 134,062
Goodwill, acquisitions and related adjustments	2,488	34,638
Goodwill, foreign currency translation	(711)	(1,153)
Goodwill, ending balance	169,324	167,547
Tradename, beginning balance	19,766	18,419
Tradename, acquisitions and related adjustments		1,730
Tradename, foreign currency translation	(238)	(383)
Tradename, ending balance	$ 19,528	$ 19,766

XML

Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract receivables	$ 55,125	$ 43,218
Allowance for doubtful accounts	(920)	(699)
Accounts receivable, Total	65,767	58,394
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 11,562	$ 15,875

XML

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Recognized share-based compensation awards	$ 0.4	$ 0.4	$ 0.9	$ 0.8
Weighted-average fair value of stock options granted			$ 7.15	$ 6.94
Expected Volatility Rate			54.00%	56.00%
Expected Term Period			6 years 6 months	6 years 2 months 12 days
Risk-Free Interest Rate			2.00%	2.20%
Expected dividend rate			1.60%	1.60%
Cash received from employees and directors stock option exercised			$ 0.1	$ 0.8
Intrinsic value of option exercised			$ 0.1	$ 1.2

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Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing - HEE (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 169,324	$ 167,547	$ 134,062
HEE [Member]
Business Acquisition [Line Items]
Current assets	913
Property and equipment	158
Goodwill	5,644
Intangible - finite life, net	2,690
Intangible - indefinite life	510
Total assets acquired	9,915
Current liabilities assumed	(415)
Net assets acquired	$ 9,500

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Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing - Zhongli (Parenthetical) (Detail) $ in Thousands	Jun. 30, 2015 USD ($)
Zhongli [Member]
Business Acquisition [Line Items]
Cash	$ 1,025

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Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Unamortized debt discount	$ (1,551)	$ (1,796)
Total outstanding borrowings	111,690	112,428
Less: current portion	12,317	8,887
Total debt, less current portion	99,373	103,541
Term Loan [Member]
Debt Instrument [Line Items]
Total outstanding borrowings	85,690	90,072
US Dollar Borrowings [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Total outstanding borrowings	108,139	112,276
US Dollar Borrowings [Member] | U.S. Dollar Revolving Loans [Member]
Debt Instrument [Line Items]
Total outstanding borrowings under Credit Facility	24,000	24,000
U S Dollar Euro [Member]
Debt Instrument [Line Items]
Total outstanding borrowings	82	$ 152
Aarding Thermal Acoustics B.V. ("Aarding") [Member] | US Dollar Borrowings [Member]
Debt Instrument [Line Items]
Total outstanding borrowings	$ 3,469

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Accounts Receivable

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Accounts Receivable

3. Accounts Receivable

(Table only in thousands)	June 30, 2015			December 31, 2014
Trade receivables	$	11,562		$	15,875
Contract receivables		55,125			43,218
Allowance for doubtful accounts		(920	)		(699	)
	$	65,767		$	58,394

The provision for doubtful accounts was $24,000 and $25,000 for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.1 million and $0.1 million for the six-month periods ended June 30, 2015 and 2014, respectively.

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Acquisitions (Emtrol) - Additional Information (Detail) - Emtrol [Member] - USD ($) $ in Millions	Nov. 03, 2014	Nov. 02, 2014
Business Acquisition [Line Items]
Membership interest acquired	100.00%
Consideration paid in cash for acquisition	$ 31.9
Shares issued for acquired subsidiary	453,858
Trading day period	30 days
Value assigned to the equity issued	$ 5.8	$ 6.0
Minimum [Member]
Business Acquisition [Line Items]
Restrictions on sale or transfer for periods range	1 year
Maximum [Member]
Business Acquisition [Line Items]
Restrictions on sale or transfer for periods range	2 years

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Goodwill and Intangible Assets - Intangible Assets - Finite Life (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Cost	$ 70,542	$ 71,564
Accumulated Amortization	18,122	13,166
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,456	1,429
Accumulated Amortization	1,450	1,427
Employment Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	647	693
Accumulated Amortization	513	433
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	7,905	8,317
Accumulated Amortization	2,786	2,290
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	58,024	58,617
Accumulated Amortization	13,136	8,959
Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,120	1,118
Accumulated Amortization	146	34
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,390	1,390
Accumulated Amortization	$ 91	$ 23

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill / Tradename

(Table only in thousands)	Six months ended June 30, 2015						Year ended December 31, 2014
Goodwill / Tradename	Goodwill			Tradename			Goodwill			Tradename
Beginning balance	$	167,547		$	19,766		$	134,062		$	18,419
Acquisitions and related adjustments		2,488			—			34,638			1,730
Foreign currency translation		(711	)		(238	)		(1,153	)		(383	)
	$	169,324		$	19,528		$	167,547		$	19,766

Intangible Assets - Finite Life

(Table only in thousands)	As of June 30, 2015				As of December 31, 2014
Intangible assets – finite life	Cost		Accum. Amort.		Cost		Accum. Amort.
Patents	$	1,456	$	1,450	$	1,429	$	1,427
Employment agreements		647		513		693		433
Technology		7,905		2,786		8,317		2,290
Customer lists		58,024		13,136		58,617		8,959
Noncompetition agreements		1,120		146		1,118		34
Tradename		1,390		91		1,390		23
	$	70,542	$	18,122	$	71,564	$	13,166

Summary of Finite Lived Intangible Assets Activities

Activity for the six months ended June 30, 2015 and 2014 is as follows:

(Table only in thousands)	2015			2014
Intangible assets – finite life, net at beginning of period	$	58,398		$	46,611
Amortization expense		(5,230	)		(3,593	)
Foreign currency adjustments		(748	)		(85	)
Intangible assets – finite life, net at end of period	$	52,420		$	42,933

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Inventories (Tables)

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Summary of Inventories

(Table only in thousands)	June 30, 2015			December 31, 2014
Raw materials	$	18,872		$	18,848
Work in process		2,342			2,644
Finished goods		2,361			2,492
Obsolescence allowance		(823	)		(568	)
	$	22,752		$	23,416

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Liability for uncertain tax positions totaled	$ 1.2	$ 1.2

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Goodwill and Intangible Assets - Finite Lived Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets - finite life, Beginning of period			$ 58,398	$ 46,611
Amortization expense	$ (2,600)	$ (1,800)	(5,230)	(3,593)
Foreign currency adjustments			(748)	(85)
Intangible assets - finite life, End of period	$ 52,420	$ 42,933	$ 52,420	$ 42,933

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Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2015

Payables and Accruals [Abstract]

Summary of Accounts Payable and Accrued Expenses

	June 30, 2015		December 31, 2014
Trade accounts payable, including due to subcontractors	$	34,303	$	31,882
Compensation and related benefits		2,121		2,976
Accrued interest		38		193
Current portion of earn-out liability		13,205		8,738
Accrued warranty		778		936
Other accrued expenses		6,059		6,737
	$	56,504	$	51,462

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Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following at June 30, 2015 and December 31, 2014:

(Table only in thousands)	June 30, 2015			December 31, 2014
Outstanding borrowings under Credit Facility (defined below). Term loan payable in quarterly principal installments of $2.2 million through September 2016, $2.8 million through September 2017, and $3.3 million thereafter with balance due upon maturity in August 2018.
- Term loan	$	85,690		$	90,072
- U.S. Dollar revolving loans		24,000			24,000
- Multi-currency revolving loans		—			—
- Unamortized debt discount		(1,551	)		(1,796	)
Total outstanding borrowings under Credit Facility		108,139			112,276
Outstanding borrowings (U.S. dollar equivalent) under Aarding Facility (defined below)		3,469			—
Outstanding borrowings (U.S. dollar equivalent) under Euro-denominated note payable to a bank, payable in quarterly installments of €25 ($28 as of June 30, 2015), plus interest, at a fixed rate of 3.82%, maturing January 2016. Collateralized by the Heerenveen, Netherlands building.		82			152
Total outstanding borrowings		111,690			112,428
Less: current portion		12,317			8,887
Total debt, less current portion	$	99,373		$	103,541

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New Financial Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

New Financial Accounting Pronouncements

2. New Financial Accounting Pronouncements

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” ASU 2015-07 requires investments for which fair value is measured at net asset value per share (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy as defined under FASB Topic 820, “Fair Value Measurements.” The FASB issued the ASU to eliminate the diversity in practice resulting from the way in which investments measured at net asset value per share (or its equivalent) with future redemption dates are classified, and also to ensure that all investments categorized in the fair value hierarchy are classified using a consistent approach. ASU 2015-07 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The FASB issued the ASU to simplify the presentation of debt issuance costs, and to align with other existing FASB guidance. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue From Contracts With Customers.” ASU 2014-09 supersedes nearly all existing revenue recognition principles under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration an entity expects to be entitled to for those goods or services using a defined five step process. More judgment and estimates may be required to achieve this principle than under existing GAAP. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect upon initial adoption recognized at the date of adoption, which includes additional footnote disclosures. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and has not yet determined the method of adoption.

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Earnings and Dividends per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Number of Shares Outstanding for Calculation of Earnings (Loss) Per Share

The computational components of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 are below.

	For the three-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,104		26,284	$	0.08
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		343		—
Diluted earnings and earnings per share	$	2,104		26,627	$	0.08

	For the three-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	4,493		25,644	$	0.18
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		464		(0.01	)
Diluted earnings and earnings per share	$	4,493		26,108	$	0.17

	For the six-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,302		26,277	$	0.09
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		367		—
Diluted earnings and earnings per share	$	2,302		26,644	$	0.09

	For the six-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	7,514		25,625	$	0.29
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		487		—
Diluted earnings and earnings per share	$	7,514		26,112	$	0.29

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Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventory, Net [Abstract]
Raw materials	$ 18,872	$ 18,848
Work in process	2,342	2,644
Finished goods	2,361	2,492
Obsolescence allowance	(823)	(568)
Inventory, net	$ 22,752	$ 23,416

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Stock Purchase - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Equity [Line Items]
Repurchased shares of common stock	0	0	61,500	0
Repurchased common stock value					$ 973
Former Director [Member]
Equity [Line Items]
Repurchased common stock value			$ 1,000

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Business Segment Information - Goodwill (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill
Goodwill	$ 169,324	$ 167,547	$ 134,062
Air Pollution Control Segment [Member]
Goodwill
Goodwill	55,033	53,538
Energy Segment [Member]
Goodwill
Goodwill	17,060	16,778
Fluid Handling and Filtration Segment [Member]
Goodwill
Goodwill	$ 97,231	$ 97,231

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 17,089	$ 19,362
Accounts receivable, net	65,767	58,394
Costs and estimated earnings in excess of billings on uncompleted contracts	31,810	24,371
Inventories, net	22,752	23,416
Prepaid expenses and other current assets	8,185	9,046
Prepaid income taxes	4,870	4,190
Assets held for sale	1,544	4,188
Total current assets	152,017	142,967
Property, plant and equipment, net	17,165	18,961
Goodwill	169,324	167,547
Intangible assets-finite life, net	52,420	58,398
Intangible assets-indefinite life	19,528	19,766
Deferred charges and other assets	6,287	6,726
Total assets	416,741	414,365
Current liabilities:
Current portion of debt	12,317	8,887
Accounts payable and accrued expenses	56,504	51,462
Billings in excess of costs and estimated earnings on uncompleted contracts	14,177	14,597
Income taxes payable	759	405
Total current liabilities	83,757	75,351
Other liabilities	27,584	27,884
Debt, less current portion	99,373	103,541
Deferred income tax liability, net	25,471	26,365
Total liabilities	$ 236,185	$ 233,141
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value; 10,000 shares authorized, none issued
Common stock, $.01 par value; 100,000,000 shares authorized, 26,432,447 and 26,404,869 shares issued in 2015 and 2014, respectively	$ 264	$ 264
Capital in excess of par value	169,935	168,886
Accumulated earnings	17,863	19,051
Accumulated other comprehensive loss	(7,150)	(6,621)
Stockholders' equity before treasury stock	180,912	181,580
Less treasury stock, at cost, 137,920 shares in 2015 and 2014	(356)	(356)
Total shareholders' equity	180,556	181,224
Total liabilities and shareholders' equity	$ 416,741	$ 414,365

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Amortization expense of finite life intangible assets	$ 2,600,000	$ 1,800,000	$ 5,230,000	$ 3,593,000
Amortization expense of finite life intangibles for 2015	5,300,000		5,300,000
Amortization expense of finite life intangibles for 2016	9,200,000		9,200,000
Amortization expense of finite life intangibles for 2017	7,900,000		7,900,000
Amortization expense of finite life intangibles for 2018	6,300,000		6,300,000
Amortization expense of finite life intangibles for 2019	5,200,000		5,200,000
Goodwill	169,324,000		169,324,000		$ 167,547,000	$ 134,062,000
Indefinite-lived intangible assets	19,528,000		19,528,000		19,766,000	18,419,000
Definite-lived intangible assets	52,420,000	$ 42,933,000	52,420,000	$ 42,933,000	58,398,000	$ 46,611,000
Reporting Unit One [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Goodwill	77,900,000		$ 77,900,000
Goodwill impairment charges					0
Decrease in projected revenue growth rate			0.30%
Decrease in projected operational profit			0.70%
Indefinite-lived intangible assets	6,800,000		$ 6,800,000
Reporting Unit One [Member] | Indefinite-lived Intangible Assets [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Decrease in projected revenue growth rate			0.70%
Reporting Unit Two [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Goodwill	13,000,000		$ 13,000,000		$ 90,900,000
Estimated fair value of goodwill exceeds from its carrying value					3.00%
Decrease in projected revenue growth rate			1.00%
Decrease in projected operational profit			0.90%
Indefinite-lived intangible assets	2,300,000		$ 2,300,000
Indefinite life intangible assets, impairment charges					$ 0
Definite-lived intangible assets					$ 24,000,000
Reporting Unit Two [Member] | Indefinite-lived Intangible Assets [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Decrease in projected revenue growth rate			0.40%
Three Reporting Units [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Estimated fair value of goodwill exceeds from its carrying value					5.00%
Indefinite-lived intangible assets	$ 900,000		$ 900,000		$ 10,000,000
Three Reporting Units [Member] | Indefinite-lived Intangible Assets [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Decrease in projected revenue growth rate			1.60%
Four Reporting Units [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Goodwill					105,400,000
Five Reporting Units [Member]
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Indefinite-lived intangible assets					$ 13,500,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 2,302	$ 7,514
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,943	5,389
Loss (gain) on sale of property and equipment	225	(13)
Non-cash interest expense included in net income	323	275
Share-based compensation expense	854	750
Bad debt expense	69	82
Inventory reserve expense	256	308
Deferred income taxes	(894)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(7,442)	2,984
Costs and estimated earnings in excess of billings on uncompleted contracts	(7,439)	(4,105)
Inventories	408	794
Prepaid expense and other current assets	181	(1,560)
Deferred charges and other assets	361	80
Accrued litigation settlement		(2,536)
Accounts payable and accrued expenses	2,704	(5,263)
Billings in excess of costs and estimated earnings on uncompleted contracts	(420)	(2,167)
Income taxes payable	354	(794)
Other liabilities	1,165	33
Net cash (used in) provided by operating activities	(50)	1,771
Cash flows from investing activities:
Acquisitions of property and equipment	(341)	(711)
Proceeds from sale of property and equipment	2,396	7,124
Net cash provided by investing activities	2,055	6,413
Cash flows from financing activities:
Net borrowings (repayments) on revolving credit lines	3,469	(4,675)
Repayments of debt	(4,452)	(5,427)
Proceeds from employee stock purchase plan and exercise of stock options	195	844
Repurchases of common stock		(973)
Dividends paid to common shareholders	(3,490)	(2,826)
Net cash used in financing activities	(4,278)	(13,057)
Net decrease in cash and cash equivalents	(2,273)	(4,873)
Cash and cash equivalents at beginning of period	19,362	22,661
Cash and cash equivalents at end of period	17,089	17,788
Cash paid during the period for:
Interest	1,785	1,505
Income taxes	$ 595	$ 5,903

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Acquisitions (Zhongli) - Additional Information (Detail) - Zhongli [Member] - USD ($)		6 Months Ended
	Dec. 15, 2014	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Equity interests acquired	100.00%
Consideration paid in cash for acquisition	$ 7,000,000
Earn out payment upon attainment of specified financial targets through December 31, 2017	0
Earn out expenses	$ 17,100,000	$ 4,500,000
First year estimated earn-out payable		9,500,000	$ 9,500,000
Remainder of estimated earn-out payable		12,100,000	$ 12,100,000
Total earn-out payable		$ 21,600,000

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Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Net Sales and Income from Operation by Business Segment

The financial segment information is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015			2014
Net Sales (less intra-, inter-segment sales)
Air Pollution Control Segment	$	41,798	$	32,939	$	83,514		$	59,687
Energy Segment		27,303		16,835		51,652			32,116
Fluid Handling and Filtration Segment		17,745		16,650		32,939			32,145
Corporate and Other(1)		115		217		(159	)		(137	)
Net sales	$	86,961	$	66,641	$	167,946		$	123,811

(1) Includes adjustment for revenue on intercompany jobs.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Income from Operations
Air Pollution Control Segment	$	5,140		$	4,876		$	9,158		$	8,742
Energy Segment		215			1,596			635			3,983
Fluid Handling and Filtration Segment		4,431			3,069			7,387			5,740
Corporate and Other(2)		(5,074	)		(2,221	)		(8,891	)		(4,956	)
Eliminations		(224	)		(132	)		(822	)		(829	)
Income from operations	$	4,488		$	7,188		$	7,467		$	12,680

(2) Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

Property and Equipment Additions, Depreciation and Amortization and Identifiable Assets

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Property and Equipment Additions
Air Pollution Control Segment	$	17	$	132	$	81	$	268
Energy Segment		139		33		179		67
Fluid Handling and Filtration Segment		63		119		68		333
Corporate and Other		3		12		13		43
Property and equipment additions	$	222	$	296	$	341	$	711

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Depreciation and Amortization
Air Pollution Control Segment	$	1,104	$	383	$	2,257	$	778
Energy Segment		760		564		1,431		1,219
Fluid Handling and Filtration Segment		1,590		1,637		3,186		3,325
Corporate and Other		37		35		69		67
Depreciation and Amortization	$	3,491	$	2,619	$	6,943	$	5,389

	June 30, 2015		December 31, 2014
Identifiable Assets
Air Pollution Control Segment	$	132,457	$	133,899
Energy Segment		101,372		91,850
Fluid Handling and Filtration Segment		170,413		172,779
Corporate and Other(3)		12,499		15,837
Identifiable Assets	$	416,741	$	414,365

(3) Corporate assets primarily consist of cash and income tax related assets.

Goodwill

	June 30, 2015		December 31, 2014
Goodwill
Air Pollution Control Segment	$	55,033	$	53,538
Energy Segment		17,060		16,778
Fluid Handling and Filtration Segment		97,231		97,231
Goodwill	$	169,324	$	167,547

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 June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF		Corp and Other		Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	43,833	$	(1,476	)	$	—		$	(559	)	$	—	$	—	$	41,798
Energy Segment		29,445		(1,560	)		(582	)		—			—		—		27,303
Fluid Handling and Filtration Segment		18,459		(699	)		(15	)		—			—		—		17,745
Corporate and Other(4)		—		—			—			—			—		115		115
Net Sales	$	91,737	$	(3,735	)	$	(597	)	$	(559	)	$	—	$	115	$	86,961

	Three Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	35,576	$	(2,461	)	$	—		$	(15	)	$	(161	)	$	—		$	32,939
Energy Segment		18,120		(1,284	)		(1	)		—			—			—			16,835
Fluid Handling and Filtration Segment		17,095		(402	)		(43	)		—			—			—			16,650
Corporate and Other(4)		—		—			—			—			—			217			217
Net Sales	$	70,791	$	(4,147	)	$	(44	)	$	(15	)	$	(161	)	$	217		$	66,641
	Six Months Ended June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	87,390	$	(3,283	)	$	—		$	(593	)	$	—		$	—		$	83,514
Energy Segment		54,526		(2,255	)		(619	)		—			—			—			51,652
Fluid Handling and Filtration Segment		34,193		(1,151	)		(103	)		—			—			—			32,939
Corporate and Other(4)		—		—			—			—			—			(159	)		(159	)
Net Sales	$	176,109	$	(6,689	)	$	(722	)	$	(593	)	$	—		$	(159	)	$	167,946

	Six Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	63,660	$	(3,490	)	$	—		$	(322	)	$	(161	)	$	—		$	59,687
Energy Segment		34,310		(2,193	)		(1	)		—			—			—			32,116
Fluid Handling and Filtration Segment		32,935		(747	)		(43	)		—			—			—			32,145
Corporate and Other(4)		—		—			—			—			—			(137	)		(137	)
Net Sales	$	130,905	$	(6,430	)	$	(44	)	$	(322	)	$	(161	)	$	(137	)	$	123,811

⁽⁴⁾  Includes adjustment for revenue on intercompany jobs.

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Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing - SATTi (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 169,324	$ 167,547	$ 134,062
SAT Technology, Inc. ("SAT") [Member]
Business Acquisition [Line Items]
Current assets	1,679
Property and equipment	10
Goodwill	1,733
Intangible - finite life, net	840
Intangible - indefinite life	260
Total assets acquired	4,522
Current liabilities assumed	(1,847)
Deferred tax liabilities	(275)
Net assets acquired	$ 2,400

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Acquisitions

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisitions

16. Acquisitions

Zhongli

On December 15, 2014, the Company acquired 100% of the equity interests of Zhongli for $7.0 million in cash. As additional consideration, the former owners are entitled to earn-out payments based upon a multiple of specified financial results through December 31, 2017. There is no maximum amount of earn-out, under the terms of the purchase agreement. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $17.1 million. During the six months ended June 30, 2015, the Company increased the earn-out by $4.5 million based on the estimated fair value at that date, for a total earn-out payable of $21.6 million at June 30, 2015. The earn-out adjustment is recorded as expense in “Amortization and earn-out expenses” on the Condensed Consolidated Statements of Income. The first year of the estimated earn-out payable of $9.5 million is recorded in “Accounts payable and accrued expenses” and the balance of $12.1 million is recorded in “Other liabilities” on the Condensed Consolidated Balance Sheets.

Zhongli is a leader in the design and manufacture of power industry damper, diverter and ball mill systems in China, which complements our Energy Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets (including cash of $1,025)	$	16,223
Property and equipment		1,477
Goodwill		4,752
Intangible – finite life, net		4,262
Intangible – indefinite life		960
Total assets acquired		27,674
Current liabilities assumed		(1,840	)
Deferred tax liabilities		(1,739	)
Net assets acquired	$	24,095

Emtrol

On November 3, 2014, the Company acquired 100% of the membership interests of Emtrol. The Company paid cash at closing of $31.9 million, which was financed with additional debt. The Company also issued 453,858 shares of the Company’s common stock with an agreed upon value of $6.0 million computed based on the average closing price of the Company’s common stock for the thirty trading days immediately preceding the acquisition date. The shares of common stock issued to the former members contain restrictions on sale or transfer for periods ranging from one to two years from the acquisition date. Accordingly, the fair value of the common stock issued has been determined to be $5.8 million, which reflects the estimated fair value of the shares based on the closing price of the Company’s common stock on the acquisition date and a discount related to the sale and transfer restrictions.

Emtrol and its subsidiary are engaged in the business of designing and manufacturing of fluid catalytic cracking and industrial cyclone technology for a variety of industries including the refinery, petrochemical, and chemical sectors, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	9,922
Property and equipment		125
Goodwill		24,998
Intangible – finite life, net		12,890
Total assets acquired		47,935
Current liabilities assumed		(10,173	)
Net assets acquired	$	37,762

SAT

On September 26, 2014, the Company acquired 100% of the stock of SAT for $1.4 million in cash. The Company is holding back $0.2 million of this cash until certain working capital requirements are determined to be met, as defined in the agreement. As additional consideration, the former owners are entitled to earn-out payments upon the achievement of specified financial results through September 30, 2017. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $1.0 million, which is the maximum amount of the earnout. There were no adjustments to fair value of the earn-out at June 30, 2015 or December 31, 2014. The first year of the estimated earn-out payable of $0.3 million is recorded in “Accounts payable and accrued expenses” and the balance of $0.7 million is recorded in “Other liabilities” on the Consolidated Balance Sheets.

SAT is a leading provider of volatile organic compounds abatement solutions for the Chinese air pollution control market, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	1,679
Property and equipment		10
Goodwill		1,733
Intangible – finite life, net		840
Intangible – indefinite life		260
Total assets acquired		4,522
Current liabilities assumed		(1,847	)
Deferred tax liabilities		(275	)
Net assets acquired	$	2,400

HEE

On August 13, 2014, the Company acquired certain assets and liabilities of HEE for $7.0 million in cash. The Company also issued 34,626 shares of the Company’s common stock with an agreed upon value of $0.5 million computed based on the average closing price of the Company’s common stock for the thirty trading days immediately preceding the acquisition date. The shares of common stock issued to the former owners contain restrictions on sale or transfer for a period of six months from the acquisition date. Accordingly, the fair value of the common stock issued has been determined to be $0.5 million, which reflects the estimated fair value of the shares based on the closing price of the Company’s common stock on the acquisition date and a discount related to the sale and transfer restrictions. As additional consideration, the former owners are entitled to earn-out payments upon the achievement of specified financial results through July 31, 2017. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $2.0 million, which is the maximum amount of the earnout. There were no adjustments to fair value of the earn-out at June 30, 2015 or December 31, 2014. The first year of the estimated earn-out payable of $0.7 million is recorded in “Accounts payable and accrued expenses” and the balance of $1.3 million is recorded in “Other liabilities” on the Consolidated Balance Sheets.

HEE is a leading North American designer and manufacturer of scrubbers and fans for the air pollution control market, which complements our Air Pollution Control Segment businesses. The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	913
Property and equipment		158
Goodwill		5,644
Intangible – finite life, net		2,690
Intangible – indefinite life		510
Total assets acquired		9,915
Current liabilities assumed		(415	)
Net assets acquired	$	9,500

The approximate fair values of the assets acquired and liabilities assumed related to the above acquisitions are based on preliminary estimates and assumptions. These preliminary estimates and assumptions could change significantly during the purchase price measurement period as we finalize the valuations of the assets acquired and liabilities assumed. Such changes could result in material variances between the Company’s future financial results, including variances in the estimated purchase price, fair values recorded and expenses associated with these items.

The following unaudited pro forma information represents the Company’s results of operations as if the HEE, SAT, Emtrol, and Zhongli acquisitions had occurred as of January 1, 2014:

(Table only in thousands, except per share data)	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Net sales	$	88,041	$	166,611
Net income		5,527		9,582
Earnings per share:
Basic	$	0.21	$	0.37
Diluted	$	0.21	$	0.36

The pro forma results have been prepared for informational purposes only and include adjustments to amortize acquired intangible assets with finite life, eliminate acquisition related expenses, reflect foregone interest income on cash paid for the acquisitions, reflect additional interest expense on debt used to fund the acquisitions, and to record the income tax consequences of the pro forma adjustments. Shares used to calculate the basic and diluted earnings per share were adjusted to reflect the additional shares of common stock issued to fund a portion of the acquisition price. These pro forma results do not purport to be indicative of the results of operations that would have occurred had the purchases been made as of the beginning of the periods presented or of the results of operations that may occur in the future.

Acquisition and integration expenses on the Condensed Consolidated Statements of Income are related to acquisition activities, which include retention, legal, accounting, banking, and other expenses.

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Basis of Reporting for Consolidated Financial Statements - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014 Acquisition
Adjusted Earnings Before Interest Taxes Depreciation And Amortization And Other Non Cash Items [Abstract]
Number of acquisitions	4

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Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

18. Subsequent Events

On May 3, 2015, the Company entered into a definitive merger agreement to acquire PMFG, Inc. (“PMFG”). PMFG is a global provider of engineered equipment for the abatement of air pollution, the separation and filtration of contaminants from gases and liquids, and industrial noise control equipment. Pursuant to the terms of the merger agreement, the Company, through its wholly owned subsidiaries, will acquire all of the outstanding shares of PMFG common stock in a transaction valued at a total of approximately $150 million in the aggregate (equity value), or $6.85 per share. Under the terms of the merger agreement, PMFG’s stockholders may elect to exchange each share of PMFG common stock for either $6.85 in cash and/or shares of our common stock having an equivalent value based on the volume weighted average trading price of our common stock for the 15-trading day period ending on the trading day immediately preceding the closing of the merger, subject to a collar. Elections are subject to proration such that approximately 55% of PMFG’s outstanding shares will be exchanged for stock and 45% for cash.

The completion of the merger is subject to customary closing conditions including the approval of the stockholders of both the Company and PMFG. The Company has received a financing commitment from Bank of America Merrill Lynch, as Lead Arranger and Administrative Agent, to increase and amend the Credit Facility to fund the cash portion of the merger consideration.

The boards of directors of each of the Company and PMFG have unanimously approved the merger. CECO stockholders who own approximately 15% of the current voting power of the Company have signed voting agreements and irrevocable proxies to vote in favor of the merger.

This merger is expected to close in the third quarter of 2015.

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Acquisitions - Information of Company's Results of Operations (Detail) - Jun. 30, 2014 - USD ($) $ / shares in Units, $ in Thousands	Total	Total
Business Acquisition, Pro Forma Information [Abstract]
Net sales	$ 88,041	$ 166,611
Net income	$ 5,527	$ 9,582
Earnings per share:
Basic	$ 0.21	$ 0.37
Diluted	$ 0.21	$ 0.36

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Basis of Reporting for Consolidated Financial Statements

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Reporting for Consolidated Financial Statements

1. Basis of Reporting for Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements of CECO Environmental Corp. and its subsidiaries (the “Company”, “we”, “us”, or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2015 and the results of operations and cash flows for the three-month and six-month periods ended June 30, 2015 and 2014. The results of operations for the three-month and six-month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year. The balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

These financial statements and accompanying notes should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC.

Unless otherwise indicated, all balances within tables are in thousands, except per share amounts.

During 2014, the Company completed four acquisitions, including i) in August 2014, HEE Environmental Engineering (“HEE”), ii) in September 2014, SAT Technology, Inc. (“SAT”), iii) in November 2014, Emtrol LLC (“Emtrol”), and iv) in December 2014, Jiangyin Zhongli Industrial Technology Co. Ltd. (“Zhongli”). The results of their operations have been consolidated with our results following the acquisition dates. For a more complete discussion of the transactions, refer to Note 16.

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	26,432,447	26,404,869
Treasury stock, shares	137,920	137,920

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Stock Purchase

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Stock Purchase

11. Stock Purchase

During the three-month period ended March 31, 2014, the Company repurchased 61,500 shares of common stock from a former director for a total cost of $1.0 million. The shares were immediately retired. There were no such repurchases during the three-month and six-month periods ended June 30, 2015, or the three-month period ended June 30, 2014.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	CECE
Entity Registrant Name	CECO ENVIRONMENTAL CORP
Entity Central Index Key	0000003197
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,442,164

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Pension and Employee Benefit Plans

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Employee Benefit Plans

12. Pension and Employee Benefit Plans

We sponsor several non-contributory defined benefit pension plans for certain union employees. All plans are funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974.

We also sponsor a postretirement health care plan for office employees retired before January 1, 1990. The plan allowed retirees who attained the age of 65 to elect the type of coverage desired.

Retirement and health care plan expense is based on valuations performed by plan actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following:

(Table only in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Pension plan:
Service cost	$	59		$	50		$	117		$	100
Interest cost		352			357			706			715
Expected return on plan assets		(503	)		(488	)		(1,005	)		(976	)
Amortization of net actuarial loss		64			44			129			88
Net periodic benefit gain	$	(28	)	$	(37	)	$	(53	)	$	(73	)
Health care plan:
Interest cost	$	2		$	1		$	3		$	3
Amortization of loss (gain)		1			(1	)		3			(3	)
Net periodic benefit cost (gain)	$	3		$	—		$	6		$	—

We made contributions to our defined benefit plans during the six months ended June 30, 2015 and 2014 totaling $0.4 million and $0.9 million, respectively. We anticipate contributing $0.2 million to fund the pension plans and $25,000 for the retiree health care plan during the remainder of 2015. The unfunded liability of the plans of $10.7 million and $11.1 million as of June 30, 2015 and December 31, 2014, respectively, is included in Other Liabilities on our Condensed Consolidated Balance Sheets.

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Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 86,961	$ 66,641	$ 167,946	$ 123,811
Cost of sales	60,333	45,192	120,343	82,633
Gross profit	26,628	21,449	47,603	41,178
Selling and administrative expenses	14,443	11,685	28,104	23,364
Acquisition and integration expenses	962	170	1,293	240
Amortization and earn-out expenses	6,735	2,406	10,739	4,894
Income from operations	4,488	7,188	7,467	12,680
Other income (expense), net	562	(121)	(1,174)	(227)
Interest expense	(1,174)	(746)	(2,134)	(1,488)
Income before income taxes	3,876	6,321	4,159	10,965
Income tax expense	1,772	1,828	1,857	3,451
Net income	$ 2,104	$ 4,493	$ 2,302	$ 7,514
Earnings per share:
Basic	$ 0.08	$ 0.18	$ 0.09	$ 0.29
Diluted	$ 0.08	$ 0.17	$ 0.09	$ 0.29
Weighted average number of common shares outstanding:
Basic	26,283,529	25,643,508	26,277,456	25,625,033
Diluted	26,627,051	26,107,648	26,643,857	26,111,683

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

(Table only in thousands)	Six months ended June 30, 2015						Year ended December 31, 2014
Goodwill / Tradename	Goodwill			Tradename			Goodwill			Tradename
Beginning balance	$	167,547		$	19,766		$	134,062		$	18,419
Acquisitions and related adjustments		2,488			—			34,638			1,730
Foreign currency translation		(711	)		(238	)		(1,153	)		(383	)
	$	169,324		$	19,528		$	167,547		$	19,766
(Table only in thousands)	As of June 30, 2015						As of December 31, 2014
Intangible assets – finite life	Cost			Accum. Amort.			Cost			Accum. Amort.
Patents	$	1,456		$	1,450		$	1,429		$	1,427
Employment agreements		647			513			693			433
Technology		7,905			2,786			8,317			2,290
Customer lists		58,024			13,136			58,617			8,959
Noncompetition agreements		1,120			146			1,118			34
Tradename		1,390			91			1,390			23
	$	70,542		$	18,122		$	71,564		$	13,166

Activity for the six months ended June 30, 2015 and 2014 is as follows:

(Table only in thousands)	2015			2014
Intangible assets – finite life, net at beginning of period	$	58,398		$	46,611
Amortization expense		(5,230	)		(3,593	)
Foreign currency adjustments		(748	)		(85	)
Intangible assets – finite life, net at end of period	$	52,420		$	42,933

Amortization expense of finite life intangible assets was $2.6 million and $1.8 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $5.2 million and $3.6 million for the six-month periods ended June 30, 2015 and 2014, respectively. Amortization over the next five years for finite life intangibles is expected to be $5.3 million for the remainder of 2015, $9.2 million in 2016, $7.9 million in 2017, $6.3 million in 2018, and $5.2 million in 2019.

The Company completes an annual (or more often if circumstances require) impairment assessment of its goodwill and indefinite life intangible assets. The Company did not identify any circumstances that would require an impairment assessment of its goodwill or indefinite life intangible assets as of June 30, 2015. A qualitative analysis, which included reviewing current year results for revenue and profit, was done for all reporting units. For four of our reporting units with total goodwill of $105.4 million as of December 31, 2014, the analysis led to the conclusion that it was not more likely than not that the fair value for these reporting units exceeded the carrying value. Accordingly, the first step of the two step goodwill impairment test as described in FASB ASC 350-20-35 was performed.

Under the first step, the estimated fair value of the reporting unit is calculated by the discounted cash flow method. The significant assumptions used under the discounted cash flow method are projected revenue, projected operational profit, terminal growth rates, and the cost of capital. Projected revenue, projected operational profit and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. Under this approach, the resultant estimated fair value of the reporting units exceeded its carrying value as of December 31, 2014 and no goodwill impairment charges were recorded.

For two of the reporting units tested under the first step, which carried combined goodwill of $90.9 million, the aggregate excess of fair value over their carrying value was only 3%. These two reporting units were acquired in the second half of fiscal 2013, and therefore the Company did not expect the fair value to be significantly in excess of the carrying value. Furthermore, there were no fundamental changes in the business or market that would indicate a significant decline in the fair value since the acquisition date. Management’s projections used to estimate the undiscounted cash flows included increasing sales volumes and operational improvements designed to reduce costs. Changes in any of the significant assumptions used, including if the Company does not successfully achieve its 2015 operating plan, can materially affect the expected cash flows, and such impacts can result in the requirement to proceed to a step 2 test and potentially a material non-cash impairment charge could result. Therefore, the key assumptions most susceptible to change are projected revenue and projected operational profit. We determined that with other assumptions held constant, for the first reporting unit that carried $77.9 million of goodwill, a decrease in projected revenue growth rates of approximately 30 basis points or a decrease in projected operational profit of approximately 70 basis points would result in fair value of the reporting unit being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. Likewise, we determined that with other assumptions held constant, for the second reporting unit that carried $13.0 million of goodwill, a decrease in projected revenue growth rates of approximately 100 basis points or a decrease in projected operational profit of approximately 90 basis points would result in fair value of the reporting unit being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. The Company is not currently aware of any negative changes in its assumptions that could lead to the fair value of the reporting units being less than the carrying value.

This same qualitative analysis was done for all reporting units with indefinite life intangible assets. For five reporting units that had indefinite life intangible assets totaling $13.5 million as of December 31, 2014, the analysis led to the conclusion that it was not more likely than not that the fair value for these indefinite life intangible assets exceeded their carrying value. Accordingly, the Company estimated the fair value of the indefinite life intangible assets. The estimated fair value is calculated by the relief from royalty method. The significant assumptions used under the relief from royalty method are projected revenue, royalty rates, terminal growth rates, and the cost of capital. Projected revenue, royalty rates and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected royalty cash flows in the relief from royalty method. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected royalty cash flows. Under this approach, the resultant estimated fair value of the indefinite life intangible assets exceeded their carrying value as of December 31, 2014 and no impairment charges were recorded.

For three of the reporting units, which carried combined indefinite life intangible assets of $10.0 million, the aggregate excess of fair value over their carrying value was only 5%. These three reporting units were acquired in the second half of fiscal 2013, and therefore the Company did not expect the fair value to be significantly in excess of the carrying value. Furthermore, there were no fundamental changes in the businesses or markets that would indicate a significant decline in the fair value since the acquisition date. Management’s projections used to estimate the fair values included increasing sales volumes and operational improvements designed to reduce costs. Changes in any of the significant assumptions used, including if the Company does not successfully achieve its 2015 operating plan, can materially affect the expected cash flows, and such impacts can result in the requirement to proceed to a step 2 test and potentially can result in material non-cash impairment charges. Therefore, the key assumption most susceptible to change is projected revenue. We determined that with other assumptions held constant, for the first, second and third reporting units that carried $6.8 million, $2.3 million and $0.9 million, respectively, of indefinite life intangible assets, a decrease in projected revenue growth rates of approximately 70 basis points, 40 basis points and 160 basis points, respectively, would result in fair value of the indefinite life intangible assets being equal to its carrying value, which would require us to perform a step 2 test for this reporting unit. The Company is not currently aware of any negative changes in its assumptions that could lead to the fair value of the indefinite life intangible assets being less than the carrying value.

Two of the reporting units where the fair value was not significantly in excess of the carrying value had definite live intangible assets of $24 million as of December 31, 2014 which could be at risk of impairment if the Company does not successfully achieve its 2015 operating plan as described above. The Company will continue to assess the potential for impairment on a quarterly basis in fiscal 2015.

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Inventories

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Inventories

5. Inventories

(Table only in thousands)	June 30, 2015			December 31, 2014
Raw materials	$	18,872		$	18,848
Work in process		2,342			2,644
Finished goods		2,361			2,492
Obsolescence allowance		(823	)		(568	)
	$	22,752		$	23,416

Amounts credited to the allowance for obsolete inventory and charged to cost of sales amounted to $0.1 million and $0.2 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.3 million and $0.3 million for the six-month periods ended June 30, 2015 and 2014, respectively.

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Business Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Business Segment Information

17. Business Segment Information

The Company’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 Condensed Consolidated Statements of Income.

Air Pollution Control Segment (“APC”)

Our Air Pollution Control Segment is comprised of Adwest, HEE-Duall Air and Odor Technologies, Busch, Emtrol-Buell, Flex-Kleen Dust Collection Technologies, FKI-Emtrol, Kirk & Blum, KB Duct, and SAT. This segment provides the design and manufacture of product recovery and air pollution control technologies that enable our customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. These products and solutions include chemical and biological scrubbers, fabric filters and cartridge collectors, thermal and catalytic oxidation systems, cyclones, separators, gas absorbers and industrial ventilation systems. This segment also provides component parts for industrial air systems and provides cost effective alternatives to traditional duct components, as well as custom metal engineered fabrication services. These products and services are applicable to a wide variety of industries.

Energy Segment (“Energy”)

Our Energy Segment is comprised of Aarding, Effox-Flextor, AVC, and Zhongli. This segment provides the design and manufacture of technologies for flue gas and diverter dampers, non-metallic expansion joints, natural gas turbine exhaust systems, and silencer and precipitator applications, primarily for coal-fired and natural gas power plants, refining, oil production and petrochemical processing, as well as a variety of other industries.

Fluid Handling and Filtration Segment (“FHF”)

Our Fluid Handling and Filtration Segment is comprised of Met-Pro Global Pump Solutions, Mefiag Filtration Solutions, Keystone Filtration Solutions, CECO Filters and Strobic Air Corporation. This segment provides the design and manufacture of technologies including high quality centrifugal pumps for corrosive, abrasive and high temperature liquids, filter products for air and liquid filtration, as well as product recovery equipment, and technologically advanced air movement and exhaust systems. These products are applicable to a wide variety of industries, particularly the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination and pharmaceutical markets.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management. The operating results of the segments are reviewed through to the “Income from operations” line on the Condensed Consolidated Statements of Income.

The financial segment information is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015			2014
Net Sales (less intra-, inter-segment sales)
Air Pollution Control Segment	$	41,798	$	32,939	$	83,514		$	59,687
Energy Segment		27,303		16,835		51,652			32,116
Fluid Handling and Filtration Segment		17,745		16,650		32,939			32,145
Corporate and Other(1)		115		217		(159	)		(137	)
Net sales	$	86,961	$	66,641	$	167,946		$	123,811

(1) Includes adjustment for revenue on intercompany jobs.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Income from Operations
Air Pollution Control Segment	$	5,140		$	4,876		$	9,158		$	8,742
Energy Segment		215			1,596			635			3,983
Fluid Handling and Filtration Segment		4,431			3,069			7,387			5,740
Corporate and Other(2)		(5,074	)		(2,221	)		(8,891	)		(4,956	)
Eliminations		(224	)		(132	)		(822	)		(829	)
Income from operations	$	4,488		$	7,188		$	7,467		$	12,680

(2) Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Property and Equipment Additions
Air Pollution Control Segment	$	17	$	132	$	81	$	268
Energy Segment		139		33		179		67
Fluid Handling and Filtration Segment		63		119		68		333
Corporate and Other		3		12		13		43
Property and equipment additions	$	222	$	296	$	341	$	711

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Depreciation and Amortization
Air Pollution Control Segment	$	1,104	$	383	$	2,257	$	778
Energy Segment		760		564		1,431		1,219
Fluid Handling and Filtration Segment		1,590		1,637		3,186		3,325
Corporate and Other		37		35		69		67
Depreciation and Amortization	$	3,491	$	2,619	$	6,943	$	5,389

	June 30, 2015		December 31, 2014
Identifiable Assets
Air Pollution Control Segment	$	132,457	$	133,899
Energy Segment		101,372		91,850
Fluid Handling and Filtration Segment		170,413		172,779
Corporate and Other(3)		12,499		15,837
Identifiable Assets	$	416,741	$	414,365

(3) Corporate assets primarily consist of cash and income tax related assets.

	June 30, 2015		December 31, 2014
Goodwill
Air Pollution Control Segment	$	55,033	$	53,538
Energy Segment		17,060		16,778
Fluid Handling and Filtration Segment		97,231		97,231
Goodwill	$	169,324	$	167,547

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 June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF		Corp and Other		Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	43,833	$	(1,476	)	$	—		$	(559	)	$	—	$	—	$	41,798
Energy Segment		29,445		(1,560	)		(582	)		—			—		—		27,303
Fluid Handling and Filtration Segment		18,459		(699	)		(15	)		—			—		—		17,745
Corporate and Other(4)		—		—			—			—			—		115		115
Net Sales	$	91,737	$	(3,735	)	$	(597	)	$	(559	)	$	—	$	115	$	86,961

	Three Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	35,576	$	(2,461	)	$	—		$	(15	)	$	(161	)	$	—		$	32,939
Energy Segment		18,120		(1,284	)		(1	)		—			—			—			16,835
Fluid Handling and Filtration Segment		17,095		(402	)		(43	)		—			—			—			16,650
Corporate and Other(4)		—		—			—			—			—			217			217
Net Sales	$	70,791	$	(4,147	)	$	(44	)	$	(15	)	$	(161	)	$	217		$	66,641
	Six Months Ended June 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	87,390	$	(3,283	)	$	—		$	(593	)	$	—		$	—		$	83,514
Energy Segment		54,526		(2,255	)		(619	)		—			—			—			51,652
Fluid Handling and Filtration Segment		34,193		(1,151	)		(103	)		—			—			—			32,939
Corporate and Other(4)		—		—			—			—			—			(159	)		(159	)
Net Sales	$	176,109	$	(6,689	)	$	(722	)	$	(593	)	$	—		$	(159	)	$	167,946

	Six Months Ended June 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			APC			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Air Pollution Control Segment	$	63,660	$	(3,490	)	$	—		$	(322	)	$	(161	)	$	—		$	59,687
Energy Segment		34,310		(2,193	)		(1	)		—			—			—			32,116
Fluid Handling and Filtration Segment		32,935		(747	)		(43	)		—			—			—			32,145
Corporate and Other(4)		—		—			—			—			—			(137	)		(137	)
Net Sales	$	130,905	$	(6,430	)	$	(44	)	$	(322	)	$	(161	)	$	(137	)	$	123,811

⁽⁴⁾  Includes adjustment for revenue on intercompany jobs.

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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The Company files income tax returns in various federal, state and local jurisdictions. The Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2010.

The Company accounts for uncertain tax positions pursuant to ASC Topic 740, “Income Taxes.” As of June 30, 2015 and December 31, 2014, the liability for uncertain tax positions totaled approximately $1.2 million, which is included in Other Liabilities on our Condensed Consolidated Balance Sheets. The Company recognizes interest accrued related to uncertain tax positions in interest expense and penalties in income tax expense.

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Earnings and Dividends per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings and Dividends per Share

9. Earnings and Dividends per Share

The computational components of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 are below.

	For the three-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,104		26,284	$	0.08
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		343		—
Diluted earnings and earnings per share	$	2,104		26,627	$	0.08

	For the three-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	4,493		25,644	$	0.18
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		464		(0.01	)
Diluted earnings and earnings per share	$	4,493		26,108	$	0.17

	For the six-month period ended June 30, 2015
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	2,302		26,277	$	0.09
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		367		—
Diluted earnings and earnings per share	$	2,302		26,644	$	0.09

	For the six-month period ended June 30, 2014
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	7,514		25,625	$	0.29
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		487		—
Diluted earnings and earnings per share	$	7,514		26,112	$	0.29

Options and warrants included in the computation of diluted earnings per share are calculated using the treasury stock method. For the three-month and six -month periods ended June 30, 2015, 1.2 million outstanding options and warrants were excluded from the computation of diluted earnings per share due to their having an anti-dilutive effect.

Holders of restricted stock awards participate in nonforfeitable dividend rights on a one-for-one basis with holders of common stock. Holders of these awards are not obligated to share in losses of the Company. Therefore, these share awards are included in the computation of basic earnings per share during periods of net income using the two-class method, but are excluded from such computation in periods of net loss. Should the Company declare a dividend on its common stock, the related dividend on shares of unvested restricted stock that are not expected to vest would be recorded as additional compensation expense and therefore excluded from the two-class method computations; however, there are no unvested restricted stock awards outstanding that are expected not to vest. Undistributed earnings included in the two-class method computations are allocated equally to each share of common stock outstanding, including all shares of unvested restricted common stock.

Once a restricted stock award vests, it is included in the computation of weighted average shares outstanding for purposes of basic and diluted earnings per share.

The Company declared and, on June 26, 2015, paid to common stockholders a quarterly dividend of $0.066 per share. The dividend policy and the payment of cash dividends under that policy are subject to the Board of Directors’ continuing determination that the dividend policy and the declaration of dividends are in the best interest of the Company’s stockholders. Future dividends and the dividend policy may be changed or cancelled at the Company’s discretion at any time. Payment of dividends is also subject to the continuing consent of lenders under our Credit Facility.

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Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing - Zhongli (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 169,324	$ 167,547	$ 134,062
Zhongli [Member]
Business Acquisition [Line Items]
Current assets (including cash of $1,025)	16,223
Property and equipment	1,477
Goodwill	4,752
Intangible - finite life, net	4,262
Intangible - indefinite life	960
Total assets acquired	27,674
Current liabilities assumed	(1,840)
Deferred tax liabilities	(1,739)
Net assets acquired	$ 24,095

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Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2015

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

7. Accounts Payable and Accrued Expenses

	June 30, 2015		December 31, 2014
Trade accounts payable, including due to subcontractors	$	34,303	$	31,882
Compensation and related benefits		2,121		2,976
Accrued interest		38		193
Current portion of earn-out liability		13,205		8,738
Accrued warranty		778		936
Other accrued expenses		6,059		6,737
	$	56,504	$	51,462

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Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt

8. Debt

Debt consisted of the following at June 30, 2015 and December 31, 2014:

(Table only in thousands)	June 30, 2015			December 31, 2014
Outstanding borrowings under Credit Facility (defined below). Term loan payable in quarterly principal installments of $2.2 million through September 2016, $2.8 million through September 2017, and $3.3 million thereafter with balance due upon maturity in August 2018.
- Term loan	$	85,690		$	90,072
- U.S. Dollar revolving loans		24,000			24,000
- Multi-currency revolving loans		—			—
- Unamortized debt discount		(1,551	)		(1,796	)
Total outstanding borrowings under Credit Facility		108,139			112,276
Outstanding borrowings (U.S. dollar equivalent) under Aarding Facility (defined below)		3,469			—
Outstanding borrowings (U.S. dollar equivalent) under Euro-denominated note payable to a bank, payable in quarterly installments of €25 ($28 as of June 30, 2015), plus interest, at a fixed rate of 3.82%, maturing January 2016. Collateralized by the Heerenveen, Netherlands building.		82			152
Total outstanding borrowings		111,690			112,428
Less: current portion		12,317			8,887
Total debt, less current portion	$	99,373		$	103,541

U.S. Debt

On August 27, 2013, the Company entered into a credit agreement (the “Credit Agreement”) with various lenders (the “Lenders”) and letter of credit issuers (each, an “L/C Issuer”), and Bank of America, N.A., as Administrative Agent (the “Agent”), swing line lender and an L/C Issuer, providing for various senior secured credit facilities (collectively, the “Credit Facility”) comprised of a $65.0 million senior secured term loan, a $70.5 million senior secured U.S. dollar revolving credit facility for U.S. dollar revolving loans with sub-facilities for letters of credit and swing-line loans, and a $19.5 million senior secured multi-currency revolving credit facility for U.S. dollar and specific foreign currency loans.

Concurrent with the closing of our Met-Pro Corporation (“Met-Pro”) acquisition on August 27, 2013, the Company borrowed $65.0 million in term loans and $52.0 million in U.S. dollar revolving loans and used the proceeds to (i) finance the cash portion of the acquisition, (ii) pay off certain outstanding indebtedness of the Company and its subsidiaries (including certain indebtedness of Met-Pro and its subsidiaries), and (iii) pay certain fees and expenses incurred in connection with the Credit Agreement and the acquisition.

On November 18, 2014, the Company amended the Credit Agreement. Pursuant to the amendment (i) certain lenders provided an additional term loan under the Credit Agreement in an aggregate principal amount of $35.0 million and certain lenders increased their revolving credit commitments in an aggregate principal amount of up to $15.0 million, and (ii) the Credit Agreement was amended to, among other things, (a) modify the calculation of Consolidated EBITDA to include certain pro forma adjustments related to certain acquisitions and other transactions, (b) modify the Consolidated Leverage Ratio covenant and (c) permit additional investments in foreign subsidiaries and additional indebtedness by foreign subsidiaries. The proceeds from the additional term loan were used primarily to finance the acquisition of Emtrol and related expenses. Additionally, the Company has the option to obtain additional commitments for either the U.S. dollar revolving credit facility or the term loan facility in an aggregate principal amount not to exceed $50.0 million.

As of June 30, 2015 and December 31, 2014, $8.3 million and $9.5 million of letters of credit were outstanding, respectively. Total unused credit availability under the Credit Facility was $72.7 million and $71.5 million at June 30, 2015 and December 31, 2014, respectively. Revolving loans may be borrowed, repaid and reborrowed until August 27, 2018, at which time all amounts borrowed pursuant to the Credit Facility must be repaid.

At the Company’s option, revolving loans and the term loans accrue interest at a per annum rate based on either the highest of (a) the federal funds rate plus 0.5%, (b) the Agent’s prime lending rate, and (c) one-month LIBOR plus 1.00%, plus a margin ranging from 0.5% to 1.5% depending on the Company’s consolidated leverage ratio (“Base Rate”), or a Eurocurrency Rate (as defined in the Credit Agreement) plus 1.5% to 2.5% depending on the Company’s consolidated leverage ratio. Interest on swing line loans is the Base Rate.

Accrued interest on Base Rate loans is payable quarterly in arrears on the last day of each calendar quarter and at maturity. Interest on Eurocurrency Rate loans is payable on the last date of each applicable Interest Period (as defined in the agreement), but in no event less than once every three months and at maturity. The weighted average interest rate on outstanding borrowings was 2.73% and 2.24% at June 30, 2015 and December 31, 2014, respectively.

The Company has granted a security interest in substantially all of its assets to secure its obligations pursuant to the Credit Agreement. The Company’s obligations under the Credit Agreement are guaranteed by the Company’s U.S. subsidiaries and such guaranty obligations are secured by a security interest on substantially all of the assets of such subsidiaries, including certain real property. The Company’s obligations under the Credit Agreement may also be guaranteed by the Company’s material foreign subsidiaries to the extent no adverse tax consequences would result to the Company.

The Credit Agreement contains customary affirmative and negative covenants, including the requirement to maintain compliance with a consolidated leverage ratio of less than 3.25 and a consolidated fixed charge coverage ratio of more than 1.25. The Credit Agreement also includes customary events of default and the occurrence of an event of default could result in an increased interest rate equal to 2.0% above the applicable interest rate for loans, the acceleration of the Company’s obligations pursuant to the Credit Agreement and an obligation of the subsidiary guarantors to repay the full amount of the Company’s borrowings pursuant to the Credit Agreement.

As of June 30, 2015 and December 31, 2014, the Company was in compliance with all related financial and other restrictive covenants under the Credit Agreement.

The Company has paid $3.1 million of customary closing fees, arrangement fees, administration fees, letter of credit fees and commitment fees for the Credit Agreement and amendments thereto. As of June 30, 2015 and December 31, 2014, capitalized deferred financing costs of $0.5 million and $0.5 million, respectively, are included in deferred charges and other assets and $1.6 million and $1.8 million, respectively, are included as a discount to debt in the accompanying Condensed Consolidated Balance Sheets. Amortization expense was $0.1 million and $0.2 million for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.2 million and $0.3 million for the six-month periods ended June 30, 2015 and 2014, respectively, and is classified as interest expense.

Foreign Debt

The Company has a €10.5 million facilities agreement, originally dated August 17, 2012 (as amended from time to time), made between our Netherland’s subsidiaries ATA Beheer B.V. and Aarding Thermal Acoustics B.V., as borrowers and ING Bank N.V. as the lender (“Aarding Facility”). The facilities agreement includes a €7.0 million bank guarantee facility and a €3.5 million overdraft facility. The bank guarantee interest rate is the three months Euribor plus 265 basis points (2.65% as of June 30, 2015) and the overdraft interest rate is three months Euribor plus 195 basis points (1.95% as of June 30, 2015). All of the borrowers’ assets are pledged for this facility, and the borrowers’ solvency ratio must be at least 30% and net debt/last twelve months EBITDA less than 3.0. As of June 30, 2015 and December 31, 2014, the borrowers were in compliance with all related financial and other restrictive covenants, and expect continued compliance. As of June 30, 2015, €6.8 million ($7.5 million) of the bank guarantee and €3.1 million ($3.5 million) of the overdraft facility are being used by the borrowers. As of December 31, 2014, €5.5 million ($6.7 million) of the bank guarantee and none of the overdraft facility was being used by the borrowers. There is no stated expiration date on the facilities agreement.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

10. Share-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” which requires the Company to recognize compensation expense for stock-based awards, measured at the fair value of the awards at the grant date. The Company recognized expense of $0.4 million and $0.4 million during the three-month periods ended June 30, 2015 and 2014, respectively, and $0.9 million and $0.8 million during the six-month periods ended June 30, 2015 and 2014, respectively.

The weighted-average fair value of stock options granted during the six months ended June 30, 2015 and 2014 was estimated at $7.15 and $6.94 per option, respectively, using the Black-Scholes option-pricing model based on the following assumptions:

Expected Volatility: The Company utilizes a volatility factor based on the Company’s historical stock prices for a period of time equal to the expected term of the stock option utilizing weekly price observations. For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average volatility factor of 54% and 56%, respectively.

Expected Term: For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average expected term factor of 6.5 years and 6.2 years, respectively.

Risk-Free Interest Rate: The risk-free interest rate factor utilized is based upon the implied yields currently available on U.S. Treasury zero-coupon issues over the expected term of the stock options. For the six months ended June 30, 2015 and 2014, the Company utilized a weighted-average risk-free interest rate factor of 2.0% and 2.2%, respectively.

Expected Dividends: The Company utilized a weighted average expected dividend rate of 1.6% and 1.6% to value options granted during the six months ended June 30, 2015 and 2014, respectively.

The fair value of the stock options granted is recorded as compensation expense on a straight-line basis over the vesting periods of the options adjusted for the Company’s estimate of pre-vesting forfeitures. The pre-vesting forfeiture estimate is based on historical activity and is reviewed periodically and updated as necessary.

The Company received $0.1 million and $0.8 million in cash from employees and directors exercising options during the six months ended June 30, 2015 and 2014, respectively. The intrinsic value of options exercised during the six months ended June 30, 2015 and 2014 was $0.1 million and $1.2 million, respectively.

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Acquisitions (SAT) - Additional Information (Detail) - SAT Technology, Inc. ("SAT") [Member] - USD ($)		6 Months Ended	12 Months Ended
	Sep. 26, 2014	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Equity interests acquired	100.00%
Cash paid on acquisition	$ 1,400,000
Cash held back	200,000
Earn out expenses	$ 1,000,000	$ 0	$ 0
First year estimated earn-out payable		300,000
Remainder of estimated earn-out payable		$ 700,000

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Acquisitions (HEE) - Additional Information (Detail) - HEE [Member] - USD ($)		6 Months Ended	12 Months Ended
	Aug. 13, 2014	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Cash paid on acquisition	$ 7,000,000
Company's common stock	34,626
Fair value of common stock issued	$ 500,000
Earn out expenses	$ 2,000,000	$ 0	$ 0
Trading day period	30 days
Restrictions on sale or transfer for periods range	6 months
First year estimated earn-out payable		700,000
Remainder of estimated earn-out payable		$ 1,300,000
Thirty Trading Days [Member]
Business Acquisition [Line Items]
Fair value of common stock issued	$ 500,000

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Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing - Emtrol (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 169,324	$ 167,547	$ 134,062
Emtrol [Member]
Business Acquisition [Line Items]
Current assets	9,922
Property and equipment	125
Goodwill	24,998
Intangible - finite life, net	12,890
Total assets acquired	47,935
Current liabilities assumed	(10,173)
Net assets acquired	$ 37,762

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

Information of Company's Results of Operations

The following unaudited pro forma information represents the Company’s results of operations as if the HEE, SAT, Emtrol, and Zhongli acquisitions had occurred as of January 1, 2014:

(Table only in thousands, except per share data)	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Net sales	$	88,041	$	166,611
Net income		5,527		9,582
Earnings per share:
Basic	$	0.21	$	0.37
Diluted	$	0.21	$	0.36

Zhongli [Member]

Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing

The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets (including cash of $1,025)	$	16,223
Property and equipment		1,477
Goodwill		4,752
Intangible – finite life, net		4,262
Intangible – indefinite life		960
Total assets acquired		27,674
Current liabilities assumed		(1,840	)
Deferred tax liabilities		(1,739	)
Net assets acquired	$	24,095

Emtrol [Member]

Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing

The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	9,922
Property and equipment		125
Goodwill		24,998
Intangible – finite life, net		12,890
Total assets acquired		47,935
Current liabilities assumed		(10,173	)
Net assets acquired	$	37,762

SAT Technology, Inc. ("SAT") [Member]

Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing

The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	1,679
Property and equipment		10
Goodwill		1,733
Intangible – finite life, net		840
Intangible – indefinite life		260
Total assets acquired		4,522
Current liabilities assumed		(1,847	)
Deferred tax liabilities		(275	)
Net assets acquired	$	2,400

HEE [Member]

Fair Values of Assets Acquired and Liabilities Assumed at Date of Closing

The following table summarizes the approximate fair values of the assets acquired and liabilities assumed at the date of closing.

(Table only in thousands)
Current assets	$	913
Property and equipment		158
Goodwill		5,644
Intangible – finite life, net		2,690
Intangible – indefinite life		510
Total assets acquired		9,915
Current liabilities assumed		(415	)
Net assets acquired	$	9,500

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Earnings and Dividends per Share - Additional Information (Detail) - $ / shares		3 Months Ended	6 Months Ended
	Jun. 26, 2015	Jun. 30, 2015	Jun. 30, 2015
Earnings And Dividends Per Share [Abstract]
Shares not included in computation of diluted Earning per share		1,200,000	1,200,000
Non forfeitable dividend rights with holders of common stock			One-for-one basis
Number of unvested restricted stock awards outstanding that are expected not to vest		0	0
Common Stock, dividends, per share, declared	$ 0.066
Common Stock, dividends, per share, Paid	$ 0.066

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Commitments and Contingencies - Legal Matters

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies - Legal Matters

15. Commitments and Contingencies – Legal Matters

Our subsidiary, Met-Pro, beginning in 2002, began to be named in asbestos-related lawsuits filed against a large number of industrial companies including, in particular, those in the pump and fluid handling industries. In management’s opinion, the complaints typically have been vague, general and speculative, alleging that Met-Pro, along with the numerous other defendants, sold unidentified asbestos-containing products and engaged in other related actions which caused injuries (including death) and loss to the plaintiffs. Counsel has advised that more recent cases typically allege more serious claims of mesothelioma. The Company’s insurers have hired attorneys who, together with the Company, are vigorously defending these cases. Many cases have been dismissed after the plaintiff fails to produce evidence of exposure to Met-Pro’s products. In those cases where evidence has been produced, the Company’s experience has been that the exposure levels are low and the Company’s position has been that its products were not a cause of death, injury or loss. The Company has been dismissed from or settled a large number of these cases. Cumulative settlement payments from 2002 through June 30, 2015 for cases involving asbestos-related claims were $0.7 million, which, together with all legal fees other than corporate counsel expenses, have been paid by the Company’s insurers. The average cost per settled claim, excluding legal fees, was approximately $25,000.

Based upon the most recent information available to the Company regarding such claims, there were a total of 215 cases pending against the Company as of June 30, 2015 (with Connecticut, New York, Pennsylvania and West Virginia having the largest number of cases), as compared with 195 cases that were pending as of December 31, 2014. During the six months ended June 30, 2015, 27 new cases were filed against the Company, and the Company was dismissed from 7 cases and settled zero cases. Most of the pending cases have not advanced beyond the early stages of discovery, although a number of cases are on schedules leading to, or are scheduled for trial. The Company believes that its insurance coverage is adequate for the cases currently pending against the Company and for the foreseeable future, assuming a continuation of the current volume, nature of cases and settlement amounts. However, the Company has no control over the number and nature of cases that are filed against it, nor as to the financial health of its insurers or their position as to coverage. The Company also presently believes that none of the pending cases will have a material adverse impact upon the Company’s results of operations, liquidity or financial condition.

One of our subsidiaries, Fisher-Klosterman, Inc. (“FKI”), was a defendant in a products liability lawsuit filed in Harris County, Texas on August 23, 2010 by three Valero refining companies. The plaintiffs claimed that FKI (and its co-Defendants) used an allegedly defective refractory material included in cyclones it supplied to Valero that caused damages to refineries they own and operate. Plaintiffs claimed to have suffered property damages, including catalyst loss, regenerator repair costs, replacement part costs, damage to other property and business interruption loss. During the third quarter of 2014, the Company reached a settlement with the plaintiffs for $0.5 million and, accordingly, recorded a corresponding charge to operations. In addition, the Company reached an agreement with a supplier to recover $0.2 million related to this matter. The recovery was also recorded during the third quarter of 2014. The Company’s insurer, who had paid for the legal defense in this matter, initiated a new case in the Southern District of Ohio against the Company seeking, among other things, recoupment of past legal costs paid. The Company is vigorously disputing this claim and believes the insurer had the duty to defend the Company.

On October 3, 2014, Viron International (“Viron”) filed a complaint against us and our subsidiary, the Kirk and Blum Manufacturing Company (“Kirk & Blum”), in the United States District Court for the Western District of Texas (the “Court”) seeking damages against us and Kirk & Blum for alleged breach of contract. After a trial on January 12, 2015, on February 27, 2015, the Court issued Findings of Fact and Conclusions of Law that provide that we and Kirk & Blum breached our contract with Viron and that Viron is entitled to damages in the amount of approximately $0.6 million plus attorneys’ fees. Additionally, the Court concluded that we and Kirk & Blum are not entitled to an offset for the invoiced amounts of $0.2 million not paid by Viron under the contract. The Company is vigorously defending this claim and believes it has complied with the provisions of the contract.

The Company is also a party to routine contract and employment-related litigation matters and routine audits of state and local tax returns arising in the ordinary course of its business.

The final outcome and impact of open matters, and related claims and investigations that may be brought in the future, are subject to many variables, and cannot be predicted. In accordance with ASC 450, “Contingencies,” and related guidance, we record reserves for estimated losses relating to claims and lawsuits when available information indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. The Company expenses legal costs as they are incurred.

We are not aware of pending claims or assessments, other than as described above, which may have a material adverse impact on our liquidity, financial position, results of operations, or cash flows.

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Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Summary of Accounts Receivable

(Table only in thousands)	June 30, 2015			December 31, 2014
Trade receivables	$	11,562		$	15,875
Contract receivables		55,125			43,218
Allowance for doubtful accounts		(920	)		(699	)
	$	65,767		$	58,394

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Debt - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 EUR (€)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 EUR (€)	Dec. 31, 2014 USD ($)	Nov. 18, 2014 USD ($)	Aug. 27, 2013 USD ($)	Aug. 17, 2012 EUR (€)
Line of Credit Facility [Line Items]
Increased credit facility commitment for either revolving credit facility or term loan facility									$ 50,000,000
Unused credit availability under credit facility						$ 72,700,000		$ 71,500,000
Weighted average interest rate on outstanding borrowings					2.73%	2.73%	2.24%	2.24%
Maximum consolidated leverage ratio					3.25	3.25
Minimum fixed charge coverage ratio			1.25
Increased interest rate of loan due to default					2.00%	2.00%
Other expenses for credit agreement						$ 3,100,000
Capitalized deferred financing costs						500,000		$ 500,000
Unamortized debt discount						(1,551,000)		(1,796,000)
Amortization expense	$ 100,000	$ 200,000	$ 200,000	$ 300,000
Aarding Thermal Acoustics B.V. ("Aarding") [Member]
Line of Credit Facility [Line Items]
Facilities agreement, amount | €											€ 10,500,000
Maximum debt as proportion of EBITDA											3.0
Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.50%
One-Month LIBOR [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Bank Overdrafts [Member] | Aarding Thermal Acoustics B.V. ("Aarding") [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities					€ 3,100,000	$ 3,500,000	€ 0	0
Weighted average interest rate on outstanding borrowings					1.95%	1.95%
Facilities agreement, amount | €											€ 3,500,000
Debt instrument variable interest rate description			Three months Euribor plus 195 basis points
Term Loan [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities										$ 65,000,000
Increased credit facility commitment for either revolving credit facility or term loan facility									35,000,000
Term Loan [Member] | Met-Pro Corporation [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities										65,000,000
U.S. Dollar Revolving Loans [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities										70,500,000
Increased credit facility commitment for either revolving credit facility or term loan facility									$ 15,000,000
U.S. Dollar Revolving Loans [Member] | Met-Pro Corporation [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities										52,000,000
Multi-currency Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities										$ 19,500,000
Letters of Credit [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities						$ 8,300,000		9,500,000
Bank Guarantees [Member] | Aarding Thermal Acoustics B.V. ("Aarding") [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount outstanding under the credit facilities					€ 6,800,000	$ 7,500,000	€ 5,500,000	$ 6,700,000
Weighted average interest rate on outstanding borrowings					2.65%	2.65%
Facilities agreement, amount | €											€ 7,000,000
Debt instrument variable interest rate description			Three months Euribor plus 265 basis points
Minimum [Member] | Cross Currency Interest Rate Contract [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.50%
Minimum [Member] | Aarding Thermal Acoustics B.V. ("Aarding") [Member]
Line of Credit Facility [Line Items]
Borrowers solvency ratio											30.00%
Minimum [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.50%
Maximum [Member] | Cross Currency Interest Rate Contract [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.50%
Maximum [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.50%

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Inventories - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Inventory Disclosure [Abstract]
Amounts credited to the allowance for obsolete inventory	$ 100	$ 200	$ 256	$ 308

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 2,104	$ 4,493	$ 2,302	$ 7,514
Other comprehensive income (loss):
Foreign currency translation	356	126	(529)	(112)
Other comprehensive income (loss)	356	126	(529)	(112)
Comprehensive income	$ 2,460	$ 4,619	$ 1,773	$ 7,402

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Costs and Estimated Earnings on Uncompleted Contracts

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Costs and Estimated Earnings on Uncompleted Contracts

4. Costs and Estimated Earnings on Uncompleted Contracts

Revenues from contracts are recognized on the percentage of completion method, measured by the percentage of contract costs incurred to date compared to estimated total contract costs for each contract. This method is used because management considers contract costs to be the best available measure of progress on these contracts. Revenues are also recognized on a completed contract basis, when risk and title passes to the customer, which is generally upon shipment of product.

Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within the next twelve months.

(Table only in thousands)	June 30, 2015			December 31, 2014
Costs incurred on uncompleted contracts	$	114,248		$	97,979
Estimated earnings		29,890			28,328
		144,138			126,307
Less billings to date		(126,505	)		(116,533	)
	$	17,633		$	9,774
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	31,810		$	24,371
Billings in excess of costs and estimated earnings on uncompleted contracts		(14,177	)		(14,597	)
	$	17,633		$	9,774

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Commitments and Contingencies - Additional Information (Detail)		3 Months Ended	6 Months Ended	150 Months Ended
	Oct. 03, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Cases	Jun. 30, 2015 USD ($) Cases	Dec. 31, 2014 Cases
Commitments and Contingencies Disclosure [Abstract]
Cumulative settlement payments for cases involving asbestos-related claims		$ 500,000		$ 700,000
Average cost per settled claim excluding legal fees			$ 25,000	$ 25,000
Number of claims pending | Cases			215	215	195
Number of new cases filed | Cases			27
Number of cases dismissed | Cases			7
Number of cases settled | Cases			0
Settlement recovering expense		$ 200,000
Loss amount awarded for damage	$ 600,000
Loss amount not paid under the contract	$ 200,000
Loss contingency settlement terms			After a trial on January 12, 2015, on February 27, 2015, the Court issued Findings of Fact and Conclusions of Law that provide that we and Kirk & Blum breached our contract with Viron and that Viron is entitled to damages in the amount of approximately $0.6 million plus attorneys' fees. Additionally, the Court concluded that we and Kirk & Blum are not entitled to an offset for the invoiced amounts of $0.2 million not paid by Viron under the contract.
Assessment regarding Loss contingency impact Description			We are not aware of pending claims or assessments, other than as described above, which may have a material adverse impact on our liquidity, financial position, results of operations, or cash flows.

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Business Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015 Segment
CECO Group, Inc. [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	3

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Costs and Estimated Earnings on Uncompleted Contracts (Tables)

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Costs and Estimated Earnings on Uncompleted Contracts

Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within the next twelve months.

(Table only in thousands)	June 30, 2015			December 31, 2014
Costs incurred on uncompleted contracts	$	114,248		$	97,979
Estimated earnings		29,890			28,328
		144,138			126,307
Less billings to date		(126,505	)		(116,533	)
	$	17,633		$	9,774
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	31,810		$	24,371
Billings in excess of costs and estimated earnings on uncompleted contracts		(14,177	)		(14,597	)
	$	17,633		$	9,774

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Subsequent Events - Additional Information (Detail) - May. 03, 2015 - PMFG, Inc. [Member] - USD ($) $ / shares in Units, $ in Millions	Total
Subsequent Event [Line Items]
Purchase price of acquired entity	$ 150
Purchase price per share of acquired entity	$ 6.85
Number of trading period considered for computing share price of reporting entity	15 days
Percentage of shares exchanged for cash of acquired entity	45.00%
Percentage of shares exchanged for stock of acquired entity	55.00%
Percentage of shareholder voted in favor of business acquisition transaction	15.00%

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Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Receivables [Abstract]
Provision for doubtful accounts	$ 24	$ 25	$ 100	$ 100

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Financial Instruments

6 Months Ended

Jun. 30, 2015

Investments, All Other Investments [Abstract]

Financial Instruments

14. Financial Instruments

Our financial instruments consist primarily of investments in cash and cash equivalents, receivables and certain other assets, debt and accounts payable, which approximate fair value at June 30, 2015, due to their short-term nature or variable, market-driven interest rates.

At June 30, 2015 and December 31, 2014, we had cash and cash equivalents of $17.1 million and $19.4 million, respectively, of which $9.5 million and $11.7 million, respectively, was held outside of the United States, principally in the Netherlands, China, Great Britain, and Canada. Substantially all of the amounts held outside of the United States are intended to be indefinitely reinvested in foreign operations. Our current plans do not anticipate that we will need funds generated from foreign operations to fund our domestic operations. In the event funds from foreign operations are needed in the United States, any repatriation could result in the accrual and payment of additional U.S. income tax.

On March 31, 2014, Aarding entered into a one-month foreign exchange forward contract to manage exposure to foreign currency fluctuations on a U.S. dollar-denominated transaction totaling $5.5 million. The contract expired prior to June 30, 2015 and there are no such contracts outstanding as of June 30, 2015.