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ESCO Reports Third Quarter Fiscal 2022 Results

·20 min read

- Q3 2022 GAAP EPS $0.89 - Q3 Sales increase 21% to $219 Million - $255 Million in Q3 Orders / Book-to-bill of 1.16x -

St. Louis, Aug. 08, 2022 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the third quarter ended June 30, 2022 (Q3 2022) compared to the third quarter ended June 30, 2021 (Q3 2021).

Operating Highlights

  • Q3 2022 GAAP EPS was $0.89 per share compared to $0.57 in Q3 2021, an increase of 56 percent.   There were no adjustments to Q3 2022 earnings. Q3 2022 EPS of $0.89 increased $0.22 per share (33 percent) compared to Adjusted EPS of $0.67 per share in Q3 2021.

  • Q3 2022 Sales of $219.1 million increased $37.7 million (20.8 percent) compared to $181.4 million in Q3 2021.   Organic sales increased $25.1 million (13.8 percent) and recent acquisitions added $12.6 million (7.0 percent) of revenue growth in the quarter.

  • Q3 2022 Entered Orders increased $51.1 million (25 percent) over the prior year period to $254.9 million (book-to-bill of 1.16x), resulting in record backlog of $707 million.

  • Net cash provided by operating activities was $42 million YTD 2022, as operating working capital investments more than offset earnings increases.

  • Net debt (total borrowings less cash on hand) was $140 million, resulting in a 1.22x leverage ratio and $541 million in liquidity at June 30, 2022.

Vic Richey, Chairman and Chief Executive Officer, commented, “Our global team delivered a very strong quarter of sales, earnings, orders and backlog growth. Business conditions have remained strong and that helped drive a 21 percent sales increase and a 33 percent increase in Adjusted EPS.

“I am very pleased that we were able to deliver higher profit margins in line with pre-pandemic levels, while continuing to work through this challenging operational environment. To deliver these results, our teams continued to work diligently to find ways to reduce costs, redesign products, secure sourcing alternatives, and implement price increases to drive profit improvement. Through the combined efforts of employees across the company, we were able to support our customers and deliver strong results in the quarter.

“Our Q3 orders were excellent, particularly in our test and measurement, space, commercial aerospace, electric utility, and renewables end-markets. This broad and continuing orders growth across all three business segments shows the strength of our product offerings and end-markets. Our year-to-date orders of $716 million are up 33 percent over the prior year, and give us confidence in our growth outlook going forward.”

Segment Performance

Aerospace & Defense (A&D)

  • Sales increased $7.0 million (8 percent) to $92.6 million in Q3 2022 from $85.6 million in Q3 2021. The Q3 sales growth was primarily driven by commercial aerospace, which increased $8.4 million (35 percent) to $32.0 million. Commercial aerospace sales growth was driven by the 737 production ramp, increased MRO activity at Mayday, and the NEco acquisition. Higher Navy and space sales in the quarter were offset by lower defense aerospace and industrial sales compared to the prior year.

  • EBIT increased $4.0 million in Q3 2022 to $20.7 million (22.4 percent margin) from $16.7 million (19.6 percent margin) in Q3 2021. The margin increase was driven by higher volume, price increases and cost reductions, partially offset by material and wage inflation.

  • Entered Orders increased $15 million to $110 million in Q3 2022 (book-to-bill of 1.19x) compared to $95 million in Q3 2021. The orders strength was driven by funding for long lead material on the Space Launch System (SLS) shipsets 4-6 and the continuing recovery of commercial aerospace. The 16 percent increase in orders over the prior year quarter resulted in record backlog of $415 million.

Utility Solutions Group (USG)

  • Sales increased $19.5 million (41 percent) to $67.2 million in Q3 2022 from $47.7 million in Q3 2021. Recent acquisitions Phenix and Altanova contributed $11.6 million in revenue and Doble organic sales increased $4.8 million (12 percent). The organic sales growth was driven by a recovery in demand for services, and a strong quarter for Protection Testing and Morgan Schaffer products. In addition, NRG sales increased $3.1 million (37 percent) on continued strength in the renewables end-market.

  • EBIT increased $4.9 million in Q3 2022 to $13.1 million from $8.2 million in Q3 2021. There were no adjustments to Q3 2022 EBIT of $13.1 million (19.5 percent margin), which increased $4.4 million from Q3 2021 Adjusted EBIT of $8.7 million (18.3 percent margin). The margin increase was primarily driven by leverage on higher revenue and price increases, partially offset by wage and material cost inflation.

  • Entered Orders increased $19 million to $74 million in Q3 2022 (book-to-bill of 1.11x). The orders strength was primarily driven by Altanova and Phenix, and a $5 million (49 percent) increase in renewables orders at NRG. The 34 percent increase in orders over the prior year quarter resulted in backlog of $124 million.

Test

  • Sales increased $11.1 million (23 percent) to $59.2 million in Q3 2022 from $48.1 million in Q3 2021, primarily due to increased power filter and test and measurement chamber volume.

  • EBIT increased $1.6 million in Q3 2022 to $8.4 million (14.1 percent margin) from $6.8 million (14.0 percent margin) in Q3 2021.   The increase in profitability was driven by leverage on higher sales and price increases, partially offset by material cost and wage inflation.

  • Entered Orders were $70 million in Q3 2022 (book-to-bill of 1.19x) compared to $53 million in Q3 2021. The order growth was driven by global demand for test and measurement projects.   The $17 million (32 percent) increase in orders over the prior year resulted in record backlog of $168 million.

Share Repurchase Program
As previously announced in our August 9, 2021 press release, the Company’s Board of Directors approved a new stock repurchase program. During Q3 2022, the Company repurchased approximately 28,500 shares for $2 million. As of June 30, 2022, the Company has repurchased approximately 257,500 shares for $20 million year-to-date.

Dividend Payment
The next quarterly cash dividend of $0.08 per share will be paid on October 18, 2022 to stockholders of record on October 4, 2022.

Business Outlook – 2022
Management’s expectations for 2022 remain consistent with the details outlined in our November 18, 2021 release.  Our 2022 guidance represented meaningful growth in sales, Adjusted EBIT, and Adjusted EBITDA across each of the Company’s business segments.

Our year-to-date results have been consistent with our guidance as presented in November. Our continuing order strength is driving revenue growth and margin expansion and gives us confidence that we are on track to deliver a solid Q4 in line with that initial guidance. Our expectation is for Q4 Adjusted EPS to be in the range of $1.12 to $1.18 per share, representing growth of 32 to 39 percent over the prior year. This remains consistent with our full year guidance but narrows the Adjusted EPS to a range of $3.12 to $3.18.

Conference Call
The Company will host a conference call today, August 8, at 4:00 p.m. Central Time, to discuss the Company’s Q3 2022 results. A live audio webcast and an accompanying slide presentation will be available on ESCO’s investor website at https://investor.escotechnologies.com. For those unable to participate, a webcast replay will be available after the call on ESCO’s investor website.

Forward-Looking Statements
Statements in this press release regarding the timing and magnitude of recovery in the Company’s end markets, the continuing impacts of COVID-19 on the Company’s results, sales, Adjusted SG&A, Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost reduction efforts, margins, growth, the financial success of the Company, the strength of its end markets, the outlook for the A&D, Test and USG segments, the ability to increase shareholder value, the timing and success of acquisition efforts, internal investments in new products and solutions, the impacts of inflation, the long-term success of the Company, and any other statements which are not strictly historical are “forward-looking” statements within the meaning of the safe harbor provisions of the federal securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021; the availability and acceptance of viable COVID-19 vaccines by enough of the U.S. and world’s population to curtail the pandemic; the continuing impact of the COVID-19 pandemic and the effects of known or unknown COVID-19 variants including labor shortages, facility closures, shelter in place policies or quarantines, material shortages, transportation delays, termination or delays of Company contracts, and the inability of our suppliers or customers to perform; the impacts of Executive Order 14042 and other vaccine mandates on our employees and businesses; the impacts of natural disasters on the Company’s operations and those of the Company’s customers and suppliers; the timing and content of future contract awards or customer orders; the appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties; the success of the Company’s acquisition efforts; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; changes in the costs and availability of certain raw materials; labor disputes; changes in U.S. tax laws and regulations; other changes in laws and regulations including but not limited to changes in accounting standards and foreign taxation; changes in interest rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration of recently acquired businesses.

Non-GAAP Financial Measures
The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financials Measures, and “Adjusted EPS” as GAAP earnings per share (EPS) excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

ESCO, headquartered in St. Louis, Missouri: Manufactures highly-engineered filtration and fluid control products for the aviation, Navy, space and process markets worldwide, as well as composite-based products and solutions for Navy, defense and industrial customers; is the industry leader in RF shielding and EMC test products; and provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries. Further information regarding ESCO and its subsidiaries is available on the Company’s website at www.escotechnologies.com.  
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

 

Condensed Consolidated Statements of Operations (Unaudited)

 

(Dollars in thousands, except per share amounts)

 

  

 

 

 

 

 

 

Three Months
Ended
June 30, 2022

 

Three Months
Ended
June 30, 2021

 

 

 

 

 

 

 

 

 

 

Net Sales

$

219,066

 

 

181,394

 

Cost and Expenses:

 

 

 

 

 

 

Cost of sales

 

134,454

 

 

113,610

 

 

Selling, general and administrative expenses

 

47,479

 

 

42,882

 

 

Amortization of intangible assets

 

6,406

 

 

4,864

 

 

Interest expense

 

1,331

 

 

480

 

 

Other (income) expenses, net

 

(106

)

 

615

 

 

 

Total costs and expenses

 

189,564

 

 

162,451

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

29,502

 

 

18,943

 

Income tax expense

 

6,329

 

 

4,034

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

23,173

 

 

14,909

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

Diluted - GAAP

 

 

 

 

 

 

 

 

Net earnings

$

0.89

 

 

0.57

 

 

 

 

 

 

 

 

 

 

 

 

Diluted - As Adjusted Basis

 

 

 

 

 

 

 

 

Net earnings

$

0.89

 

 

0.67

(1

)

 

 

 

 

 

 

 

 

 

 

 

Diluted average common shares O/S:

 

25,950

 

 

26,214

 

 

 

 

 

 

 

 

 

 

(1

)

Q3 2021 Adjusted EPS excludes $0.10 per share of after-tax charges incurred at Corporate due to management transition and acquisition costs, and charges related to the USG (Morgan Schaffer) facility move.

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

 

Condensed Consolidated Statements of Operations (Unaudited)

 

(Dollars in thousands, except per share amounts)

 

  

 

 

 

 

 

 

Nine Months
Ended
June 30, 2022

 

Nine Months
Ended
June 30, 2021

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

601,004

 

 

509,962

 

 

Cost and Expenses:

 

 

 

 

 

 

Cost of sales

 

371,134

 

 

316,785

 

 

 

Selling, general and administrative expenses

 

142,073

 

 

122,628

 

 

 

Amortization of intangible assets

 

19,383

 

 

14,729

 

 

 

Interest expense

 

3,084

 

 

1,453

 

 

 

Other (income) expenses, net

 

(677

)

 

(1,265

)

 

 

 

Total costs and expenses

 

534,997

 

 

454,330

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

66,007

 

 

55,632

 

 

Income tax expense

 

14,727

 

 

12,501

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

51,280

 

 

43,131

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

Diluted - GAAP

 

 

 

 

 

 

 

 

Net earnings

$

1.97

 

 

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted - As Adjusted Basis

 

 

 

 

 

 

 

 

Net earnings

$

2.00

 

(1

)

1.75

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

Diluted average common shares O/S:

 

26,050

 

 

26,199

 

 

 

 

 

 

 

 

 

 

 

(1

)

YTD Q3 2022 Adjusted EPS excludes $0.03 per share of after-tax charges associated with the Altanova & Neco acquisition inventory step-up charges and Corporate acquisition related costs.

 

 

 

 

 

 

 

 

 

(2

)

YTD Q3 2021 Adjusted EPS excludes $0.10 per share consisting of after-tax charges incurred at Corporate due to management transition and acquisition costs, an ATM acquisition inventory step-up charge, and charges related to the USG (Doble Manta & Morgan Schaffer) facility consolidations, partially offset by the final settlement from the sale of the Doble Watertown facility.

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Business Segment Information (Unaudited)

(Dollars in thousands)

   

 

 

 

 

GAAP

 

As Adjusted

 

 

 

 

 

Q3 2022

 

Q3 2021

 

Q3 2022

 

Q3 2021

 

Net Sales

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense

$

92,606

 

 

85,576

 

 

92,606

 

 

85,576

 

 

 

USG

 

67,201

 

 

47,704

 

 

67,201

 

 

47,704

 

 

 

Test

 

59,259

 

 

48,114

 

 

59,259

 

 

48,114

 

 

 

 

Totals

$

219,066

 

 

181,394

 

 

219,066

 

 

181,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense

$

20,738

 

 

16,714

 

 

20,738

 

 

16,739

 

 

 

USG

 

13,135

 

 

8,227

 

 

13,135

 

 

8,710

 

 

 

Test

 

8,354

 

 

6,751

 

 

8,354

 

 

6,751

 

 

 

Corporate

 

(11,394

)

 

(12,269

)

 

(11,394

)

 

(9,246

)

 

 

 

Consolidated EBIT

 

30,833

 

 

19,423

 

 

30,833

 

 

22,954

 

 

 

 

Less: Interest expense

 

(1,331

)

 

(480

)

 

(1,331

)

 

(480

)

 

 

 

Less: Income tax expense

 

(6,329

)

 

(4,034

)

 

(6,329

)

 

(4,846

)

 

 

 

Net earnings

$

23,173

 

 

14,909

 

 

23,173

 

 

17,628

 

 

    

 

 

 

 

 

 

 

 

 

 

 

Note 1: Adjusted net earnings of $17.6 million in Q3 2021 excludes $0.10 per share of after-tax charges incurred at Corporate due to management transition and acquisition costs, and charges related to the USG (Morgan Schaffer) facility move.

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA Reconciliation to Net earnings:

 

 

 

Adjusted

 

Adjusted

 

 

 

 

 

Q3 2022

 

Q3 2021

 

Q3 2022

 

Q3 2021

 

Consolidated EBITDA

$

42,788

 

 

29,567

 

 

42,788

 

 

33,098

 

 

Less: Depr & Amort

 

(11,955

)

 

(10,144

)

 

(11,955

)

 

(10,144

)

 

Consolidated EBIT

 

30,833

 

 

19,423

 

 

30,833

 

 

22,954

 

 

Less: Interest expense

 

(1,331

)

 

(480

)

 

(1,331

)

 

(480

)

 

Less: Income tax expense

 

(6,329

)

 

(4,034

)

 

(6,329

)

 

(4,846

)

 

Net earnings

$

23,173

 

 

14,909

 

 

23,173

 

 

17,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Business Segment Information (Unaudited)

(Dollars in thousands)

   

 

 

 

 

GAAP

 

As Adjusted

 

 

 

 

 

YTD Q3 2022

 

YTD Q3 2021

 

YTD Q3 2022

 

YTD Q3 2021

 

Net Sales

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense

$

247,671

 

 

234,720

 

 

247,671

 

 

234,720

 

 

 

USG

 

194,877

 

 

141,799

 

 

194,877

 

 

141,799

 

 

 

Test

 

158,456

 

 

133,443

 

 

158,456

 

 

133,443

 

 

 

 

Totals

$

601,004

 

 

509,962

 

 

601,004

 

 

509,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense

$

45,042

 

 

41,980

 

 

45,377

 

 

42,365

 

 

 

USG

 

37,840

 

 

27,683

 

 

38,307

 

 

27,552

 

 

 

Test

 

20,813

 

 

17,781

 

 

20,813

 

 

17,781

 

 

 

Corporate

 

(34,604

)

 

(30,359

)

 

(34,299

)

 

(26,986

)

 

 

 

Consolidated EBIT

 

69,091

 

 

57,085

 

 

70,198

 

 

60,712

 

 

 

 

Less: Interest expense

 

(3,084

)

 

(1,453

)

 

(3,084

)

 

(1,453

)

 

 

 

Less: Income tax

 

(14,727

)

 

(12,501

)

 

(14,982

)

 

(13,335

)

 

 

 

Net earnings

$

51,280

 

 

43,131

 

 

52,132

 

 

45,924

 

 

    

 

 

 

 

 

 

 

 

 

 

 

Note 1: Adjusted net earnings of $52.1 million in YTD Q3 2022 excludes $0.03 per share of after-tax charges associated with the Altanova & Neco acquisition inventory step-up charges and Corporate acquisition related costs.

    

 

 

 

 

 

 

 

 

 

 

 

Note 2: Adjusted net earnings of $45.9 million in YTD Q3 2021 excludes $0.10 per share consisting of after-tax charges incurred at Corporate due to management transition and acquisition costs, an ATM acquisition inventory step-up charge, and charges related to USG (Manta and Morgan Schaffer) facility consolidations, partially offset by the final settlement from the sale of the Doble Watertown facility.

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA Reconciliation to Net earnings:

 

 

 

Adjusted

 

Adjusted

 

 

 

 

 

YTD Q3 2022

 

YTD Q3 2021

 

YTD Q3 2022

 

YTD Q3 2021

 

Consolidated EBITDA

$

105,338

 

 

87,344

 

 

106,445

 

 

90,971

 

 

Less: Depr & Amort

 

(36,247

)

 

(30,259

)

 

(36,247

)

 

(30,259

)

 

Consolidated EBIT

 

69,091

 

 

57,085

 

 

70,198

 

 

60,712

 

 

Less: Interest expense

 

(3,084

)

 

(1,453

)

 

(3,084

)

 

(1,453

)

 

Less: Income tax expense

 

(14,727

)

 

(12,501

)

 

(14,982

)

 

(13,335

)

 

Net earnings

$

51,280

 

 

43,131

 

 

52,132

 

 

45,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

   

 

 

 

 

June 30,
2022

 

September 30,
2021

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

$

61,019

 

56,232

 

Accounts receivable, net

 

168,720

 

146,341

 

Contract assets

 

115,840

 

93,771

 

Inventories

 

178,168

 

147,148

 

Other current assets

 

29,718

 

22,662

 

 

Total current assets

 

553,465

 

466,154

 

Property, plant and equipment, net

 

155,961

 

154,265

 

Intangible assets, net

 

401,337

 

409,250

 

Goodwill

 

503,439

 

504,853

 

Operating lease assets

 

28,922

 

31,846

 

Other assets

 

9,562

 

10,977

 

 

 

$

1,652,686

 

1,577,345

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current maturities of long-term debt

$

20,000

 

20,000

 

Accounts payable

 

70,748

 

56,669

 

Contract liabilities

 

117,863

 

106,045

 

Other current liabilities

 

83,484

 

92,281

 

 

Total current liabilities

 

292,095

 

274,995

 

Deferred tax liabilities

 

82,580

 

73,560

 

Non-current operating lease liabilities

 

25,209

 

28,032

 

Other liabilities

 

41,920

 

47,062

 

Long-term debt

 

181,000

 

134,000

 

Shareholders' equity

 

1,029,882

 

1,019,696

 

 

 

$

1,652,686

 

1,577,345

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

   

 

 

 

 

Nine Months
Ended
June 30, 2022

 

Nine Months
Ended
June 30, 2021

Cash flows from operating activities:

 

 

 

 

Net earnings

$

51,280

 

 

43,131

 

Adjustments to reconcile net earnings to net cash

 

 

 

 

provided by operating activities:

 

 

 

 

Depreciation and amortization

 

36,247

 

 

30,259

 

Stock compensation expense

 

5,318

 

 

5,386

 

Changes in assets and liabilities

 

(60,172

)

 

2,520

 

Gain on sale of building and land

 

 

 

(1,950

)

Effect of deferred taxes

 

9,020

 

 

(3,946

)

Net cash provided by operating activities

 

41,693

 

 

75,400

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Acquisition of business, net of cash acquired

 

(15,592

)

 

(6,684

)

Capital expenditures

 

(25,893

)

 

(17,887

)

Additions to capitalized software

 

(9,359

)

 

(6,500

)

Proceeds from sale of building and land

 

 

 

1,950

 

Net cash used by investing activities

 

(50,844

)

 

(29,121

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from long-term debt

 

111,000

 

 

80,000

 

Principal payments on long-term debt and short-term borrowings

 

(64,000

)

 

(94,368

)

Dividends paid

 

(6,219

)

 

(6,249

)

Purchases of common stock into treasury

 

(19,878

)

 

 

Other

 

(2,787

)

 

(1,674

)

Net cash provided (used) by financing activities

 

18,116

 

 

(22,291

)

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(4,178

)

 

1,811

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

4,787

 

 

25,799

 

Cash and cash equivalents, beginning of period

 

56,232

 

 

52,560

 

Cash and cash equivalents, end of period

$

61,019

 

 

78,359

 

    

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Other Selected Financial Data (Unaudited)

(Dollars in thousands)

   

Backlog And Entered Orders - Q3 2022

 

Aerospace & Defense

 

USG

 

Test

 

Total

 

Beginning Backlog - 4/1/22

$

396,902

 

 

116,676

 

 

157,371

 

 

670,949

 

 

Entered Orders

 

110,225

 

 

74,375

 

 

70,317

 

 

254,917

 

 

Sales

 

 

(92,606

)

 

(67,201

)

 

(59,259

)

 

(219,066

)

 

Ending Backlog - 6/30/22

$

414,521

 

 

123,850

 

 

168,429

 

 

706,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Backlog And Entered Orders - YTD Q3 2022

 

Aerospace & Defense

 

USG

 

Test

 

Total

 

Beginning Backlog - 10/1/21

$

367,216

 

 

91,631

 

 

133,176

 

 

592,023

 

 

Entered Orders

 

294,976

 

 

227,096

 

 

193,709

 

 

715,781

 

 

Sales

 

 

(247,671

)

 

(194,877

)

 

(158,456

)

 

(601,004

)

 

Ending Backlog - 6/30/22

$

414,521

 

 

123,850

 

 

168,429

 

 

706,800

 

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (Unaudited)

 

 

 

 

 

EPS – Adjusted Basis Reconciliation – YTD Q3 2022

 

 

 

 

EPS – GAAP Basis – YTD Q3 2022

$

1.97

 

 

Adjustments (defined below)

 

0.03

 

 

EPS – As Adjusted Basis – YTD Q3 2022

$

2.00

 

 

 

 

 

 

 

Adjustments exclude $0.03 per share consisting of Altanova & Neco acquisition inventory

 

step-up charges and Corporate related acquisition costs in the first nine months of 2022.

 

The $0.03 of EPS adjustments per share consists of $1,107K of pre-tax charges

 

offset by $255K of tax benefit for net impact of $852K.

 

 

 

 

 

 

 

 

EPS – Adjusted Basis Reconciliation – Q3 2021

 

 

 

 

EPS GAAP Basis – Q3 2021

$

0.57

 

 

Adjustments (defined below)

 

0.10

 

 

EPS – As Adjusted Basis – Q3 2021

$

0.67

 

 

 

 

 

 

 

Adjustments exclude $0.10 per share consisting of management transition and

 

acquisition costs, and USG facility consolidation charges in the third quarter of 2021.

 

The $0.10 of EPS adjustments per share consists of $3.5 million of pre-tax charges

 

offset by $0.8 million of tax benefit for net impact of $2.7 million.

 

 

 

 

 

 

 

EPS – Adjusted Basis Reconciliation – YTD Q3 2021

 

 

 

 

EPS – GAAP Basis – YTD Q3 2021

$

1.65

 

 

Adjustments (defined below)

 

0.10

 

 

EPS – As Adjusted Basis – YTD Q3 2021

$

1.75

 

 

 

 

 

 

 

Adjustments exclude $0.10 per share consisting of management transition and

 

acquisition costs, USG facility consolidation charges and ATM inventory step-up

 

charge in the first nine months of 2021.

 

 

 

 

The $0.10 of EPS adjustments per share consists of $3.6 million of pre-tax charges

 

offset by $0.8 million of tax benefit for net impact of $2.8 million.

 

 


SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277