ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today
reported its operating results for the third quarter ended June 30,
2023 (Q3 2023).
Operating Highlights
- Q3 2023 GAAP EPS increased 21 percent to $1.08 per share
compared to $0.89 per share in Q3 2022. Q3 2023
Adjusted EPS increased 22 percent to $1.09 per share compared to
$0.89 per share in Q3 2022.
- Q3 2023 Sales increased $29.6 million (13.5 percent) to $248.7
million compared to $219.1 million in Q3 2022.
- Q3 2023 Entered Orders decreased $41.6 million (16 percent)
versus the prior year period to $213.3 million (book-to-bill of
0.86x), resulting in ending backlog of $705 million.
Continuing strength in commercial aerospace, utilities and
renewables orders were more than offset by timing related to a few
large orders in Q3 2022 that did not repeat.
- Net cash provided by operating activities was $29 million YTD
2023. Cash flow improved in the quarter but was negatively impacted
by higher working capital requirements (higher accounts receivable
related to increased sales and higher inventory related to timing
and supply chain issues), along with higher interest and tax
payments compared to the prior year.
- Net debt (total borrowings less cash on hand) was $92 million,
resulting in a 0.71x leverage ratio and $595 million in liquidity
at June 30, 2023.
Bryan Sayler, Chief Executive Officer and President, commented,
“Q3 was another strong quarter with a number of positive
developments. Sales increased 14 percent on the strength of
continuing momentum in our aerospace, utility, and renewables
end-markets. A&D and USG both again delivered double digit
revenue growth and our Adjusted EBIT and Adjusted EPS both
increased over 20 percent compared to the prior year. We delivered
130 basis points of Adjusted EBIT margin improvement, driven by
leverage on aerospace and USG revenue growth, and at Test where we
did a great job delivering higher margins on lower sales.
“My transition to the CEO role has gone very well. The quality
of our businesses continues to shine and it’s a pleasure to work
with such a talented team. We have a committed group of employees
that work diligently to drive growth and deliver solid operating
results for our company and our shareholders. I want to thank our
employees for their dedication as we all work and grow together as
a team.”
Segment Performance
Aerospace & Defense (A&D)
- Sales increased $10.9 million (12 percent) to $103.5 million in
Q3 2023 from $92.6 million in Q3 2022. Sales growth was driven by
commercial and defense aerospace, partially offset by lower Navy
and space sales in the quarter. Commercial aerospace increased $7.6
million (24 percent) and defense aerospace increased $6.7 million
(54 percent) in the quarter.
- Q3 2023 EBIT increased $1.0 million to $21.7 million (20.9
percent margin) from $20.7 million (22.4 percent margin) in Q3
2022. There were no adjustments to earnings in either
period. The Q3 margin was negatively impacted by lower
space and Navy volume and margin erosion on certain space
development contracts, which more than offset leverage on aerospace
growth in the quarter.
- Entered Orders decreased $28 million (26 percent) to $82
million in Q3 2023 compared to $110 million in Q3 2022.
The decrease was primarily driven by a $30 million space order (SLS
long lead material) that occurred in Q3 2022. Aerospace order
strength continued but was mostly offset by a shift in the timing
of Virginia Class submarine orders to later in the year. Ending
backlog of $414 million has increased $5 million compared to the
prior year end.
Utility Solutions Group (USG)
- Sales increased $22.8 million (34 percent) to $90.0 million in
Q3 2023 from $67.2 million in Q3 2022. Doble’s sales increased by
$17.6 million (32 percent) driven by a strong quarter for services,
offline testing, protection testing and condition
monitoring. NRG sales increased $5.2 million (45
percent) on continued broad strength across the renewables
end-market.
- EBIT increased $7.3 million in Q3 2023 to $20.4 million from
$13.1 million in Q3 2022. Adjusted EBIT increased $7.4 million (56
percent) in Q3 2023 to $20.5 million (22.8 percent margin) from
$13.1 million (19.5 percent margin) in Q3 2022. Margins were
favorably impacted by leverage on higher revenue and price
increases, partially offset by the impacts of wage and material
cost inflation and increased commissions, travel, and tradeshow
expenses.
- Entered Orders increased $11 million (15 percent) to $86
million in Q3 2023. Doble orders increased by $2 million (3
percent) and NRG orders increased by $9 million (67 percent). The
strength in renewables orders was driven by continuing momentum in
wind and solar project pipelines. Ending backlog of $138 million
has increased $10 million compared to the prior year end.
Test
- Sales decreased $4.0 million (7 percent) to $55.3 million in Q3
2023 from $59.3 million in Q3 2022. Lower test and measurement
volume in China and the U.S and lower filter sales domestically
were partially offset by a strong quarter in EMEA and increased
service revenue.
- EBIT increased $0.2 million in Q3 2023 to $8.6 million (15.6
percent margin) from $8.4 million (14.1 percent margin) in Q3
2022. There were no adjustments in either period. The
Q3 margin improvement was driven by price increases and cost
reduction efforts, which more than offset the impact of lower
volume and wage and material cost inflation.
- Entered Orders decreased $24.4 million to $45.9 million in Q3
2023 compared to $70.3 million in Q3 2022. The decrease was
primarily due to several large test and measurement orders booked
in Q3 2022, and lower test and measurement orders in China related
to the resurgence of COVID earlier this year. Ending backlog of
$153 million has decreased $5 million compared to the prior year
end.
Share Repurchase ProgramDuring Q3 2023, the
Company repurchased approximately 2,000 shares for $0.2 million.
Year-to-date, the company has repurchased approximately 140,000
shares for $12.4 million.
Dividend PaymentThe next
quarterly cash dividend of $0.08 per share will be paid on October
17, 2023 to stockholders of record on October 3, 2023.
Business Outlook –
2023 On the strength of our
results year-to-date and our expectations for the fourth quarter,
we are again raising our full year earnings guidance. We expect Q4
Adjusted EPS in the range of $1.17 to $1.23 which results in
Adjusted 2023 EPS in the range of $3.62 to $3.68 (13 to 15 percent
growth). This is based on sales in a range of $940 to $950 million
(10 to 11 percent annual growth).
Conference CallThe Company
will host a conference call today, August 8, at 4:00 p.m. Central
Time, to discuss the Company’s Q3 2023 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
StatementsStatements in this press release regarding
Management’s expectations for fiscal 2023, the effects of
continuing inflationary pressures, higher interest rates, pressures
related to supply chain performance and labor shortages; our
expectations and guidance for 2023 including sales and sales
trends; revenues and revenue growth, earnings and Adjusted EPS,
Adjusted EBIT and Adjusted EBITDA margin; the effects of
acquisitions; and any other statements which are not strictly
historical, are “forward-looking statements” within the meaning of
the safe harbor provisions of the U.S. 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, 2022; the effects of a resurgence
of the COVID-19 pandemic, or the emergence of another pandemic,
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 climate
change and related regulation of greenhouse gases; 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 MeasuresThe 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 Financial
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 and EBITDA are also 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.
About ESCO TechnologiesESCO is a global
provider of highly engineered products and solutions serving
diverse end-markets. It manufactures filtration and fluid control
products for the aviation, Navy, space, and process markets
worldwide and composite-based products and solutions for Navy,
defense, and industrial customers. ESCO is the industry leader in
RF shielding and EMC test products; and provides diagnostic
instruments, software and services to industrial power users and
the electric utility and renewable energy industries. Headquartered
in St. Louis, Missouri, ESCO and its subsidiaries have offices and
manufacturing facilities worldwide. For more information on ESCO
and its subsidiaries, visit 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 MonthsEndedJune 30, 2023 |
|
Three MonthsEndedJune 30, 2022 |
|
|
|
|
|
|
|
|
Net Sales |
$ |
248,749 |
|
219,066 |
|
Cost and
Expenses: |
|
|
|
|
|
Cost of sales |
|
147,274 |
|
134,454 |
|
|
Selling, general
and administrative expenses |
|
55,376 |
|
47,479 |
|
|
Amortization of
intangible assets |
|
7,132 |
|
6,406 |
|
|
Interest
expense |
|
2,495 |
|
1,331 |
|
|
Other expenses
(income), net |
|
966 |
|
(106 |
) |
|
|
Total costs and
expenses |
|
213,243 |
|
189,564 |
|
|
|
|
|
|
|
|
|
Earnings before
income taxes |
|
35,506 |
|
29,502 |
|
Income tax
expense |
|
7,563 |
|
6,329 |
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
27,943 |
|
23,173 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP |
$ |
1.08 |
|
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - As Adjusted
Basis |
$ |
1.09 |
(1 |
) |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted average common shares
O/S: |
|
25,827 |
|
25,950 |
|
|
|
|
|
|
|
|
|
(1 |
) |
Q3 2023 Adjusted EPS
excludes $0.01 per share of after-tax charges consisting mainly of
Corporate acquisition related costs. |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
|
Condensed Consolidated Statements of Operations (Unaudited) |
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
Nine MonthsEndedJune 30, 2023 |
|
Nine MonthsEndedJune 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
683,386 |
|
601,004 |
|
|
Cost and
Expenses: |
|
|
|
|
|
|
Cost of sales |
|
415,953 |
|
371,134 |
|
|
|
Selling, general
and administrative expenses |
|
160,555 |
|
142,073 |
|
|
|
Amortization of
intangible assets |
|
21,023 |
|
19,383 |
|
|
|
Interest
expense |
|
6,422 |
|
3,084 |
|
|
|
Other expenses
(income), net |
|
1,678 |
|
(677 |
) |
|
|
|
Total costs and
expenses |
|
605,631 |
|
534,997 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes |
|
77,755 |
|
66,007 |
|
|
Income tax
expense |
|
17,207 |
|
14,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
60,548 |
|
51,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - GAAP |
$ |
2.34 |
|
1.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted - As Adjusted
Basis |
$ |
2.45 |
(1 |
) |
2.00 |
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted average common shares
O/S: |
|
25,890 |
|
26,050 |
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
YTD Q3 2023 Adjusted
EPS excludes $0.11 per share of after-tax charges consisting of
$0.06 of executive management transition costs at Corporate, $0.02
of CMT acquisition inventory step-up charges, $0.02 of
restructuring charges within the A&D segment and $0.01 of
Corporate acquisition related costs. |
|
|
|
|
|
|
|
|
|
(2 |
) |
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. |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Condensed Business Segment Information (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
GAAP |
|
As Adjusted |
|
|
|
|
|
Q3 2023 |
|
Q3 2022 |
|
Q3 2023 |
|
Q3 2022 |
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
Aerospace &
Defense |
$ |
103,469 |
|
|
92,606 |
|
|
103,469 |
|
|
92,606 |
|
|
|
USG |
|
89,966 |
|
|
67,201 |
|
|
89,966 |
|
|
67,201 |
|
|
|
Test |
|
55,314 |
|
|
59,259 |
|
|
55,314 |
|
|
59,259 |
|
|
|
|
Totals |
$ |
248,749 |
|
|
219,066 |
|
|
248,749 |
|
|
219,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
Defense |
$ |
21,665 |
|
|
20,738 |
|
|
21,665 |
|
|
20,738 |
|
|
|
USG |
|
20,351 |
|
|
13,135 |
|
|
20,481 |
|
|
13,135 |
|
|
|
Test |
|
8,643 |
|
|
8,354 |
|
|
8,643 |
|
|
8,354 |
|
|
|
Corporate |
|
(12,658 |
) |
|
(11,394 |
) |
|
(12,438 |
) |
|
(11,394 |
) |
|
|
|
Consolidated EBIT |
|
38,001 |
|
|
30,833 |
|
|
38,351 |
|
|
30,833 |
|
|
|
|
Less: Interest expense |
|
(2,495 |
) |
|
(1,331 |
) |
|
(2,495 |
) |
|
(1,331 |
) |
|
|
|
Less: Income tax expense |
|
(7,563 |
) |
|
(6,329 |
) |
|
(7,643 |
) |
|
(6,329 |
) |
|
|
|
Net earnings |
$ |
27,943 |
|
|
23,173 |
|
|
28,213 |
|
|
23,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: Adjusted
net earnings of $28.2 million in Q3 2023 exclude $0.01 per share of
after-tax charges consisting mainly of Corporate acquisition
related costs. |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Reconciliation to Net earnings: |
|
|
|
Q3 2023 - |
|
Q3 2022 - |
|
|
|
|
|
Q3 2023 |
|
Q3 2022 |
|
As Adj |
|
As Adj |
|
Consolidated EBITDA |
$ |
50,790 |
|
|
42,788 |
|
|
51,140 |
|
|
42,788 |
|
|
Less:
Depr & Amort |
|
(12,789 |
) |
|
(11,955 |
) |
|
(12,789 |
) |
|
(11,955 |
) |
|
Consolidated EBIT |
|
38,001 |
|
|
30,833 |
|
|
38,351 |
|
|
30,833 |
|
|
Less:
Interest expense |
|
(2,495 |
) |
|
(1,331 |
) |
|
(2,495 |
) |
|
(1,331 |
) |
|
Less:
Income tax expense |
|
(7,563 |
) |
|
(6,329 |
) |
|
(7,643 |
) |
|
(6,329 |
) |
|
Net earnings |
$ |
27,943 |
|
|
23,173 |
|
|
28,213 |
|
|
23,173 |
|
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Condensed Business Segment Information (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
GAAP |
|
As Adjusted |
|
|
|
|
|
YTDQ3 2023 |
|
YTDQ3 2022 |
|
YTDQ3 2023 |
|
YTDQ3 2022 |
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
Aerospace &
Defense |
$ |
285,434 |
|
|
247,671 |
|
|
285,434 |
|
|
247,671 |
|
|
|
USG |
|
240,172 |
|
|
194,877 |
|
|
240,172 |
|
|
194,877 |
|
|
|
Test |
|
157,780 |
|
|
158,456 |
|
|
157,780 |
|
|
158,456 |
|
|
|
|
Totals |
$ |
683,386 |
|
|
601,004 |
|
|
683,386 |
|
|
601,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
Defense |
$ |
52,996 |
|
|
45,042 |
|
|
53,995 |
|
|
45,377 |
|
|
|
USG |
|
50,543 |
|
|
37,840 |
|
|
50,673 |
|
|
38,307 |
|
|
|
Test |
|
21,280 |
|
|
20,813 |
|
|
21,280 |
|
|
20,813 |
|
|
|
Corporate |
|
(40,642 |
) |
|
(34,604 |
) |
|
(38,129 |
) |
|
(34,299 |
) |
|
|
|
Consolidated EBIT |
|
84,177 |
|
|
69,091 |
|
|
87,819 |
|
|
70,198 |
|
|
|
|
Less: Interest expense |
|
(6,422 |
) |
|
(3,084 |
) |
|
(6,422 |
) |
|
(3,084 |
) |
|
|
|
Less: Income tax expense |
|
(17,207 |
) |
|
(14,727 |
) |
|
(18,045 |
) |
|
(14,982 |
) |
|
|
|
Net earnings |
$ |
60,548 |
|
|
51,280 |
|
|
63,352 |
|
|
52,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: Adjusted
net earnings of $63.4 million in YTD Q3 2023 exclude $0.11 per
share of after-tax charges consisting of $0.06 of executive
management transition costs at Corporate, $0.02 of CMT acquisition
inventory step-up charges, $0.02 of restructuring charges within
the A&D segment and $0.01 of Corporate acquisition related
costs. |
|
|
|
|
|
|
|
|
|
|
|
|
Note 2: Adjusted
net earnings of $52.1 million in YTD Q3 2022 exclude $0.03 per
share of after-tax charges associated with the Altanova & NEco
acquisition inventory step-up charges and Corporate acquisition
related costs. |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Reconciliation to Net earnings: |
|
|
|
|
|
|
|
|
|
|
|
YTDQ3 2023 |
|
YTDQ3 2022 |
|
YTD Q3 2023-As Adj |
|
YTD Q3 2022-As Adj |
|
Consolidated EBITDA |
$ |
121,876 |
|
|
105,338 |
|
|
125,518 |
|
|
106,445 |
|
|
Less:
Depr & Amort |
|
(37,699 |
) |
|
(36,247 |
) |
|
(37,699 |
) |
|
(36,247 |
) |
|
Consolidated EBIT |
|
84,177 |
|
|
69,091 |
|
|
87,819 |
|
|
70,198 |
|
|
Less:
Interest expense |
|
(6,422 |
) |
|
(3,084 |
) |
|
(6,422 |
) |
|
(3,084 |
) |
|
Less:
Income tax expense |
|
(17,207 |
) |
|
(14,727 |
) |
|
(18,045 |
) |
|
(14,982 |
) |
|
Net
earnings |
$ |
60,548 |
|
|
51,280 |
|
|
63,352 |
|
|
52,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
June 30,2023 |
|
September 30,2022 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
56,052 |
|
97,724 |
|
Accounts
receivable, net |
|
192,146 |
|
164,645 |
|
Contract
assets |
|
128,284 |
|
125,154 |
|
Inventories |
|
192,493 |
|
162,403 |
|
Other current
assets |
|
24,847 |
|
22,696 |
|
|
Total current assets |
|
593,822 |
|
572,622 |
|
Property, plant
and equipment, net |
|
155,337 |
|
155,973 |
|
Intangible assets,
net |
|
398,418 |
|
394,464 |
|
Goodwill |
|
505,590 |
|
492,709 |
|
Operating lease
assets |
|
40,314 |
|
29,150 |
|
Other assets |
|
10,028 |
|
9,538 |
|
|
|
$ |
1,703,509 |
|
1,654,456 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Current maturities
of long-term debt |
$ |
20,000 |
|
20,000 |
|
Accounts
payable |
|
76,761 |
|
78,746 |
|
Contract
liabilities |
|
122,526 |
|
125,009 |
|
Other current
liabilities |
|
89,664 |
|
94,374 |
|
|
Total current liabilities |
|
308,951 |
|
318,129 |
|
Deferred tax
liabilities |
|
78,585 |
|
82,023 |
|
Non-current
operating lease liabilities |
|
36,815 |
|
24,853 |
|
Other
liabilities |
|
44,115 |
|
48,294 |
|
Long-term
debt |
|
128,000 |
|
133,000 |
|
Shareholders'
equity |
|
1,107,043 |
|
1,048,157 |
|
|
|
$ |
1,703,509 |
|
1,654,456 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Consolidated Statements of Cash Flows (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
Nine MonthsEndedJune 30, 2023 |
|
Nine MonthsEndedJune 30, 2022 |
Cash flows from operating
activities: |
|
|
|
|
Net earnings |
$ |
60,548 |
|
|
51,280 |
|
Adjustments to reconcile net
earnings to net cash |
|
|
|
|
(used) provided by operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
37,699 |
|
|
36,247 |
|
Stock compensation expense |
|
7,007 |
|
|
5,318 |
|
Changes in assets and
liabilities |
|
(72,346 |
) |
|
(60,172 |
) |
Effect of deferred taxes |
|
(3,706 |
) |
|
9,020 |
|
Net cash provided by operating
activities |
|
29,202 |
|
|
41,693 |
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Acquisition of business, net of
cash acquired |
|
(17,694 |
) |
|
(15,592 |
) |
Capital expenditures |
|
(16,993 |
) |
|
(25,893 |
) |
Additions to capitalized
software |
|
(9,263 |
) |
|
(9,359 |
) |
Net cash used by investing
activities |
|
(43,950 |
) |
|
(50,844 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from long-term debt |
|
88,000 |
|
|
111,000 |
|
Principal payments on long-term
debt and short-term borrowings |
|
(93,000 |
) |
|
(64,000 |
) |
Dividends paid |
|
(6,189 |
) |
|
(6,219 |
) |
Purchases of common stock into
treasury |
|
(12,401 |
) |
|
(19,878 |
) |
Other |
|
(2,557 |
) |
|
(2,787 |
) |
Net cash (used) provided by
financing activities |
|
(26,147 |
) |
|
18,116 |
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents |
|
(777 |
) |
|
(4,178 |
) |
|
|
|
|
|
Net (decrease) increase in cash
and cash equivalents |
|
(41,672 |
) |
|
4,787 |
|
Cash and cash equivalents,
beginning of period |
|
97,724 |
|
|
56,232 |
|
Cash and cash equivalents, end of
period |
$ |
56,052 |
|
|
61,019 |
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Other Selected Financial Data (Unaudited) |
(Dollars in thousands) |
|
Backlog And Entered Orders - Q3 2023 |
|
Aerospace & Defense |
|
USG |
|
Test |
|
Total |
|
Beginning Backlog
- 4/1/23 |
$ |
435,246 |
|
|
142,696 |
|
|
162,919 |
|
|
740,861 |
|
|
Entered
Orders |
|
81,936 |
|
|
85,510 |
|
|
45,851 |
|
|
213,297 |
|
|
Sales |
|
|
(103,469 |
) |
|
(89,966 |
) |
|
(55,314 |
) |
|
(248,749 |
) |
|
Ending Backlog -
6/30/23 |
$ |
413,713 |
|
|
138,240 |
|
|
153,456 |
|
|
705,409 |
|
|
|
|
|
|
|
|
|
|
|
|
Backlog And Entered Orders - YTD Q3 2023 |
|
Aerospace & Defense |
|
USG |
|
Test |
|
Total |
|
Beginning Backlog
- 10/1/22 |
$ |
408,269 |
|
|
128,156 |
|
|
158,597 |
|
|
695,022 |
|
|
Entered
Orders |
|
290,878 |
|
|
250,256 |
|
|
152,639 |
|
|
693,773 |
|
|
Sales |
|
|
(285,434 |
) |
|
(240,172 |
) |
|
(157,780 |
) |
|
(683,386 |
) |
|
Ending Backlog -
6/30/23 |
$ |
413,713 |
|
|
138,240 |
|
|
153,456 |
|
|
705,409 |
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP Financial Measures (Unaudited) |
|
EPS – Adjusted
Basis Reconciliation – Q3 2023 |
|
|
|
|
EPS – GAAP Basis – Q3
2023 |
$ |
1.08 |
|
|
Adjustments (defined
below) |
|
0.01 |
|
|
EPS – As Adjusted Basis – Q3
2023 |
$ |
1.09 |
|
|
|
|
|
|
|
Adjustments
exclude $0.01 per share consisting mainly of Corporate |
|
|
acquisition related costs in
the third quarter of 2023. |
|
|
|
|
The $0.01 of EPS
adjustments per share consists of $350K of pre-tax charges |
|
offset by $80K of tax benefit
for net impact of $270K. |
|
|
|
|
|
|
|
|
EPS – Adjusted
Basis Reconciliation – YTD Q3 2023 |
|
|
|
|
EPS – GAAP Basis – YTD Q3
2023 |
$ |
2.34 |
|
|
Adjustments (defined
below) |
|
0.11 |
|
|
EPS – As Adjusted Basis – YTD
Q3 2023 |
$ |
2.45 |
|
|
|
|
|
|
|
Adjustments
exclude $0.11 per share consisting of executive management
transition costs |
|
at Corporate, CMT
acquisition inventory step-up charges and restructuring charges
within |
|
the A&D
segment, and Corporate acquisition costs in the first nine months
of 2023. |
|
The $0.11 of EPS
adjustments per share consists of $3,642K of pre-tax charges |
|
offset by $838K of tax benefit
for net impact of $2,804K. |
|
|
|
|
|
|
|
|
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. |
|
|
|
SOURCE
ESCO Technologies Inc.Kate Lowrey, Vice President of Investor
Relations, (314) 213-7277
Grafico Azioni ESCO Technologies (NYSE:ESE)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni ESCO Technologies (NYSE:ESE)
Storico
Da Giu 2023 a Giu 2024