ESCO Technologies Inc.
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Exhibit 99.1

 

NEWS FROM

 

For more information contact:

Kate Lowrey - VP of Investor Relations

(314) 213-7277 / klowrey@escotechnologies.com

 

ESCO ANNOUNCES RECORD FOURTH QUARTER AND FISCAL 2022 RESULTS

- Q4 GAAP EPS $1.19 / Adjusted EPS $1.21 -

- FY 2022 Sales increase 20% to $858 Million -

- $135 Million in Cash Flow from Operations in FY 2022 -

 

ST. LOUIS, November 17, 2022 – ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the fourth quarter (Q4 2022) and fiscal year (FY 2022) ended September 30, 2022.

 

Operating Highlights

 

·Q4 2022 GAAP EPS increased $0.41 per share (53 percent) to $1.19 per share compared to $0.78 per share in Q4 2021. Q4 2022 Adjusted EPS increased $0.36 per share (42 percent) to $1.21 per share compared to $0.85 per share in Q4 2021.
·FY 2022 GAAP EPS increased $0.74 per share (31 percent) to $3.16 per share compared to $2.42 per share in FY 2021. FY 2022 Adjusted EPS increased $0.62 per share (24 percent) to $3.21 per share compared to $2.59 per share in FY 2021.
·Q4 2022 sales increased $51 million (25 percent) to $256 million compared to $205 million in Q4 2021. Organic sales increased $38 million (19 percent) and recent acquisitions added $13 million (6 percent) of revenue growth in the quarter.
·FY 2022 sales increased $142 million (20 percent) to $858 million. Organic sales increased $90 million (13 percent) and recent acquisitions added $52 million (7 percent) of revenue growth for the full year.
·Q4 2022 entered orders decreased $14 million (5 percent) compared to the prior year period to $245 million (book-to-bill of 0.95x). Full year 2022 entered orders increased $164 million (21 percent) to $961 million (book-to-bill of 1.12x) and resulted in record year-end backlog of $695 million.
·Net cash provided by operating activities was $94 million in Q4 and $135 million for the full year, resulting in an increase of $12 million (10 percent) over the prior year.
·Net debt (total borrowings less cash on hand) was $55 million, resulting in a leverage ratio of 0.78x and $589 million in available liquidity on September 30, 2022.

 

 

 

 

FY 2022 was a record year for sales, Adjusted EBIT, Adjusted EPS, cash flow from operations, entered orders, and year-end backlog. Entered orders were strong across our end-markets, with all three business segments reporting a book-to-bill greater than 1.1x. Overall, entered orders increased 21 percent compared to the prior year and drove record year-end backlog of $695 million. Cash flow from operations was $135 million with a 108 percent free cash flow conversion rate. Recovery in key end-markets combined with solid orders momentum drove meaningful growth and improved operating results during the year.

 

Vic Richey, Chairman and Chief Executive Officer, commented, “Given the continuing economic disruptions and global headwinds throughout the year, I am very pleased that we were able to deliver outstanding results from both a growth and profitability perspective. Despite considerable challenges, we were able to exceed our commitments as communicated at the start of the year. ESCO is an industry leader that serves healthy end-markets, and through the tremendous efforts of our employees we were able to deliver results we are all very proud of in 2022.”

 

Segment Performance

 

Aerospace & Defense (A&D)

 

·Q4 2022 sales increased $24 million (30 percent) to $104 million from $80 million in Q4 2021. Q4 sales growth was the result of strong demand across our commercial and defense aerospace, Navy, and space platforms. FY 2022 sales increased $37 million (12 percent) to $351 million, largely driven by commercial aerospace, which increased $30 million (32 percent) to $123 million. Higher Navy and space sales were partially offset by lower industrial sales compared to the prior year.
·Q4 2022 EBIT increased $8.7 million to $23.3 million from $14.6 million in Q4 2021. Adjusted EBIT increased $8.9 million in Q4 2022 to $23.6 million (22.7 percent margin) from $14.7 million (18.3 percent margin) in Q4 2021. FY 2022 EBIT increased $11.9 million to $68.4 million from $56.5 million in FY 2021. FY 2022 Adjusted EBIT increased $12.0 million to $69.0 million (19.6 percent margin) from $57.0 million (18.1 percent margin) in FY 2021. Margin increases for the quarter and year were driven by higher volumes and price increases, partially offset by inflationary pressures.
·Entered Orders increased $9 million to $97 million in Q4 2022. For the full year entered orders increased $55 million (16 percent) to $392 million (book-to-bill of 1.12). The orders strength was primarily driven by the continuing recovery of commercial aerospace and resulted in record year-end backlog of $408 million.

 

Utility Solutions Group (USG)

 

·Q4 sales increased $22 million (37 percent) to $83 million from $61 million in Q4 2021. Organic sales increased $12 million (21 percent) and recent acquisitions Phenix and Altanova contributed $10 million in revenue. FY 2022 sales increased $75 million (37 percent) to $278 million from $203 million in FY 2021. Doble organic sales increased $20 million (12 percent), NRG sales increased $8 million (24 percent), and Phenix and Altanova added $47 million, The organic sales growth was driven by increased electric utility spending and strong demand across our renewables product lines.

 

 

 

 

·Q4 2022 EBIT increased $6.5 million to $19.8 million from $13.3 million in Q4 2021. Adjusted EBIT increased $4.9 million in Q4 2022 to $19.8 million (23.7 percent margin) from $14.9 million (24.3 percent margin) in Q4 2021. FY 2022 EBIT increased $16.7 million to $57.6 million from $40.9 million in FY 2021. FY 2022 Adjusted EBIT increased $15.7 million to $58.1 million (20.9 percent margin) from $42.4 million (20.9 percent margin) in FY 2021. Adjusted EBIT increases for the quarter and year were largely driven by higher volumes and price increases, partially offset by inflationary pressures, increased travel and conference costs.
·Entered Orders decreased $8 million to $88 million in Q4 2022. Orders for the quarter were lower due to the timing of orders booked related to the backlog acquired with the Phenix and Altanova transactions in Q4 2021. For the full year entered orders increased $71 million to $315 million (book-to-bill of 1.13) and resulted in year-end backlog of $128 million. Orders strength was driven by contributions from Altanova and Phenix, increased electric utility spending and continuing growth in the demand for renewables.

 

Test

 

·Q4 2022 sales increased $5 million (8 percent) to $69 million from $64 million in Q4 2021, primarily due to increased medical and industrial shielding and power filter demand. FY 2022 sales increased $30 million (15 percent) to $228 million, driven by increased test and measurement projects, medical and industrial shielding, and power filter demand.
·Q4 2022 EBIT increased $1.9 million to $11.8 million (17.0 percent margin) from $9.9 million (15.3 percent margin) in Q4 2021. FY 2022 EBIT increased $5.0 million to $32.6 million (14.3 percent margin) from $27.6 million (14.0 percent margin) in FY 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 decreased $14 million to $59 million in Q4 2022. Orders were lower during the quarter primarily due to the timing of large power filter orders in Q4 2021. For the full year entered orders increased $38 million to $253 million (book-to-bill of 1.11) and resulted in record year-end backlog of $159 million. The orders strength was driven by medical shielding and global demand for test and measurement projects.

 

Share Repurchase Program

 

The Company did not repurchase any shares of stock during Q4 2022. During FY 2022 the Company repurchased approximately 257,500 shares for $20 million.

 

Dividend Payment

 

The next quarterly cash dividend of $0.08 per share will be paid on January 20, 2023 to stockholders of record on January 5, 2023.

 

 

 

 

2023 Annual Meeting

 

The 2023 Annual Meeting of the Company’s Shareholders will be held on February 3, 2023.

 

Business Outlook – FY 2023

 

Management expects continued growth in sales, Adjusted EBIT, and Adjusted EBITDA across each of the Company’s business segments in 2023.

 

Management’s expectations for growth in 2023 compared to 2022:

 

·Net sales are expected to grow 6 to 8 percent and be in the range of $910 to $930 million on a consolidated basis, with A&D growing 10 to 13 percent, USG growing 5 to 7 percent, and Test growing 3 to 5 percent.
·Adjusted EBIT is expected to increase approximately 10 to 15 percent with Adjusted EBIT margins increasing to 13.5 to 14.0 percent of sales.
·Adjusted EBITDA is expected to increase approximately 7 to 12 percent with Adjusted EBITDA margins increasing to 19.0 to 19.5 percent of sales.
·Interest expense is expected to increase approximately $4.3 million to over $9 million (due to higher interest rates) excluding the impact of any future acquisitions.
·The effective income tax rate is expected to be in the range of 22.5 to 23.5 percent in 2023.
·Management projects 2023 Adjusted EPS to increase 7.5 to 12 percent and be in the range of $3.45 to $3.60 per share. This projection reflects margin expansion on the anticipated sales growth, partially offset by increased interest expense.
·Management expects flat to slightly up Adjusted EPS of $0.46 - $0.52 in Q1 2023 compared to the prior year. Consistent with prior years, revenues and Adjusted EPS are expected to grow sequentially throughout the year.

 

Management Transition

 

As previously announced, Vic Richey will be retiring from his roles as CEO and President at the end of the calendar year. Mr. Richey will continue as Executive Chairman of the Board during a transition period as current USG President Bryan Sayler assumes the roles of ESCO CEO and President. Richey commented “It’s been a pleasure to work at ESCO for 37 years and an honor to serve as CEO for the past 20 years. We have accomplished a lot during this time, and I am very thankful to our employees who have shown extreme dedication and effort over the years. I’d also like to thank our Board of Directors for their ongoing support of the Company as we worked to create what ESCO is today. I’m very excited about the future of the Company. Bryan has over 25 years of leadership experience at ESCO and is uniquely qualified to lead the company moving forward.” Mr. Sayler is currently transitioning from his position as President of the USG segment and will assume the positions of CEO and President of ESCO on January 1, 2023. “As I step into my new role at ESCO, I’m excited for the opportunity to lead this vibrant organization as we continue to build upon the strong foundation established under Vic’s leadership,” said Sayler.

 

 

 

 

Conference Call

 

The Company will host a conference call today, November 17, at 4:00 p.m. Central Time, to discuss the Company’s Q4 and full year 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 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 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 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 Months
Ended
September 30,
2022
   Three Months
Ended
September 30,
2021
 
Net Sales  $256,498    205,478 
Cost and Expenses:          
Cost of sales   154,323    128,260 
Selling, general and administrative expenses   53,054    44,906 
Amortization of intangible assets   6,553    6,100 
Interest expense   1,767    802 
Other (income) expenses, net   373    371 
Total costs and expenses   216,070    180,439 
           
Earnings before income taxes   40,428    25,039 
Income tax expense   9,388    4,674 
           
Net earnings  $31,040    20,365 
           
Diluted EPS:          
Diluted - GAAP          
Net earnings  $1.19    0.78 
           
Diluted - As Adjusted Basis          
Net earnings  $1.21(1)   0.85(2)
           
Diluted average common shares O/S:   25,990    26,232 

 

(1)Q4 2022 Adjusted EPS excludes $0.02 per share of after-tax severance charges at VACCO and NRG and Corporate management transition costs.

 

(2)Q4 2021 Adjusted EPS excludes $0.07 per share of after-tax charges mainly consisting of purchase accounting adjustments related to the Phenix & Altanova acquisitions, acquisition costs at Corporate, and restructuring costs primarily within the USG segment.

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

 (Dollars in thousands, except per share amounts)

 

   Year Ended
September 30,
2022
   Year Ended
September 30,
2021
 
Net Sales  $857,502    715,440 
Cost and Expenses:          
Cost of sales   525,457    445,045 
Selling, general and administrative expenses   195,127    167,534 
Amortization of intangible assets   25,936    20,829 
Interest expense   4,851    2,255 
Other (income) expenses, net   (304)   (894)
Total costs and expenses   751,067    634,769 
           
Earnings before income taxes   106,435    80,671 
Income tax expense   24,115    17,175 
           
Net earnings  $82,320    63,496 
           
Diluted EPS:          
Diluted - GAAP          
Net earnings  $3.16    2.42 
           
Diluted - As Adjusted Basis          
Net earnings  $3.21(1)   2.59(2)
           
Diluted average common shares O/S:   26,067    26,225 

 

(1)FY 2022 Adjusted EPS excludes $0.05 per share of after-tax charges associated with the Altanova & Neco acquisition inventory step-up charges, severance charges at VACCO and NRG, Corporate acquisition costs and management transition costs.
  
(2)FY 2021 Adjusted EPS excludes $0.17 per share of after-tax charges mainly consisting of management transition and acquisition costs at Corporate, restructuring costs primarily within the USG segment, and purchase accounting adjustments related to the Phenix & Altanova acquisitions, 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 
   Q4 2022   Q4 2021   Q4 2022   Q4 2021 
Net Sales                    
Aerospace & Defense  $103,742    80,105    103,742    80,105 
USG   83,490    61,107    83,490    61,107 
Test   69,266    64,266    69,266    64,266 
Totals  $256,498    205,478    256,498    205,478 
                     
EBIT                    
Aerospace & Defense  $23,310    14,557    23,590    14,657 
USG   19,764    13,264    19,813    14,874 
Test   11,779    9,855    11,779    9,855 
Corporate   (12,658)   (11,835)   (12,428)   (11,181)
Consolidated EBIT   42,195    25,841    42,754    28,205 
Less: Interest expense   (1,767)   (802)   (1,767)   (802)
Less: Income tax expense   (9,388)   (4,674)   (9,517)   (5,218)
Net earnings  $31,040    20,365    31,470    22,185 

 

Note 1: Adjusted net earnings of $31.5 million in Q4 2022 exclude $0.4 million (or $0.02 per share) of after-tax severance charges at VACCO and NRG, and Corporate management transition costs.

 

Note 2: Adjusted net earnings of $22.2 million in Q4 2021 exclude $1.8 million (or $0.07 per share) of after-tax charges mainly consisting of purchase accounting adjustments related to the Phenix & Altanova acquisitions, and acquisition costs at Corporate.

 

           Adjusted   Adjusted 
EBITDA Reconciliation to Net earnings:  Q4 2022   Q4 2021   Q4 2022   Q4 2021 
Consolidated EBITDA  $54,291    37,631    54,850    39,995 
Less: Depr & Amort   (12,096)   (11,790)   (12,096)   (11,790)
Consolidated EBIT   42,195    25,841    42,754    28,205 
Less: Interest expense   (1,767)   (802)   (1,767)   (802)
Less: Income tax expense   (9,388)   (4,674)   (9,517)   (5,218)
Net earnings  $31,040    20,365    31,470    22,185 

 

 

 

 

SCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Business Segment Information (Unaudited)

(Dollars in thousands)

 

   GAAP   As Adjusted 
   FY 2022   FY 2021   FY 2022   FY 2021 
Net Sales                    
Aerospace & Defense  $351,413    314,824    351,413    314,824 
USG   278,367    202,908    278,367    202,908 
Test   227,722    197,708    227,722    197,708 
Totals  $857,502    715,440    857,502    715,440 
                     
EBIT                    
Aerospace & Defense  $68,352    56,536    68,967    57,021 
USG   57,604    40,948    58,120    42,427 
Test   32,592    27,636    32,592    27,636 
Corporate   (47,262)   (42,194)   (46,727)   (38,167)
Consolidated EBIT   111,286    82,926    112,952    88,917 
Less: Interest expense   (4,851)   (2,255)   (4,851)   (2,255)
Less: Income tax   (24,115)   (17,175)   (24,499)   (18,553)
Net earnings  $82,320    63,496    83,602    68,109 

 

Note 1: Adjusted net earnings of $83.6 million in FY 2022 exclude $1.3 million (or $0.05 per share) of after-tax charges associated with the Altanova & Neco acquisition inventory step-up charges, severance charges at VACCO and NRG, and Corporate acquisition and management transition costs.

 

Note 2: Adjusted net earnings of $68.1 million in FY 2021 exclude $4.6 million ($0.17 per share) of after-tax charges mainly consisting of management transition and acquisition costs at Corporate, restructuring costs primarily within the USG segment, and purchase accounting adjustments related to the Phenix & Altanova acquisitions, partially offset by the final settlement from the sale of the Doble Watertown facility.

 

           Adjusted   Adjusted 
EBITDA Reconciliation to Net earnings:  FY 2022   FY 2021   FY 2022   FY 2021 
Consolidated EBITDA  $159,629    124,975    161,295    130,966 
Less: Depr & Amort   (48,343)   (42,049)   (48,343)   (42,049)
Consolidated EBIT   111,286    82,926    112,952    88,917 
Less: Interest expense   (4,851)   (2,255)   (4,851)   (2,255)
Less: Income tax expense   (24,115)   (17,175)   (24,499)   (18,553)
Net earnings  $82,320    63,496    83,602    68,109 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

 

   September 30,
2022
   September 30,
2021
 
Assets          
Cash and cash equivalents  $97,724    56,232 
Accounts receivable, net   164,645    146,341 
Contract assets   125,154    93,771 
Inventories   162,403    147,148 
Other current assets   22,696    22,662 
Total current assets   572,622    466,154 
Property, plant and equipment, net   155,973    154,265 
Intangible assets, net   394,464    409,250 
Goodwill   492,709    504,853 
Operating lease assets   29,150    31,846 
Other assets   9,538    10,977 
   $1,654,456    1,577,345 
           
Liabilities and Shareholders' Equity          
Current maturities of long-term debt  $20,000    20,000 
Accounts payable   78,746    56,669 
Contract liabilities   125,009    106,045 
Other current liabilities   94,374    92,281 
Total current liabilities   318,129    274,995 
Deferred tax liabilities   82,023    73,560 
Non-current operating lease liabilities   24,853    28,032 
Other liabilities   48,294    47,062 
Long-term debt   133,000    134,000 
Shareholders' equity   1,048,157    1,019,696 
   $1,654,456    1,577,345 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Dollars in thousands)

 

   Year Ended
September 30,
2022
   Year Ended
September 30,
2021
 
Cash flows from operating activities:          
Net earnings  $82,320    63,496 
Adjustments to reconcile net earnings to net cash provided by operating activities:          
Depreciation and amortization   48,343    42,049 
Stock compensation expense   7,320    6,914 
Changes in assets and liabilities   (11,654)   15,671 
Gain on sale of building and land   0    (1,950)
Effect of deferred taxes   8,946    (3,041)
Net cash provided by operating activities   135,275    123,139 
           
Cash flows from investing activities:          
Acquisition of business, net of cash acquired   (10,906)   (168,903)
Capital expenditures   (32,101)   (26,705)
Additions to capitalized software   (12,912)   (8,783)
Proceeds from sale of building and land   0    1,950 
Net cash used by investing activities   (55,919)   (202,441)
           
Cash flows from financing activities:          
Proceeds from long-term debt   116,000    216,000 
Principal payments on long-term debt and short-term borrowings   (117,000)   (124,368)
Dividends paid   (8,268)   (8,336)
Purchases of common stock into treasury   (19,878)   0 
Other   (2,976)   (1,823)
Net cash (used) provided by financing activities   (32,122)   81,473 
           
Effect of exchange rate changes on cash and cash equivalents   (5,742)   1,501 
           
Net increase in cash and cash equivalents   41,492    3,672 
Cash and cash equivalents, beginning of period   56,232    52,560 
Cash and cash equivalents, end of period  $97,724    56,232 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Other Selected Financial Data (Unaudited)

(Dollars in thousands)

 

Backlog And Entered Orders - Q4 2022  Aerospace & Defense   USG   Test   Total 
Beginning Backlog - 7/1/22  $414,521    123,850    168,429    706,800 
Entered Orders   97,490    87,796    59,434    244,720 
Sales   (103,742)   (83,490)   (69,266)   (256,498)
Ending Backlog - 9/30/22  $408,269    128,156    158,597    695,022 

 

Backlog And Entered Orders - FY 2022  Aerospace & Defense   USG   Test   Total 
Beginning Backlog - 10/1/21  $367,216    91,631    133,176    592,023 
Entered Orders   392,466    314,892    253,143    960,501 
Sales   (351,413)   (278,367)   (227,722)   (857,502)
Ending Backlog - 9/30/22  $408,269    128,156    158,597    695,022 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (Unaudited)

 

EPS – Adjusted Basis Reconciliation – Q4 2022     
EPS – GAAP Basis – Q4 2022  $1.19 
Adjustments (defined below)   0.02 
EPS – As Adjusted Basis – Q4 2022  $1.21 
      
Adjustments exclude $0.02 per share consisting of after-tax severance charges at VACCO and NRG and Corporate management transition costs.     
The $0.02 of EPS adjustments per share consists of $0.6 million of pre-tax charges offset by $0.2 million of tax benefit for net impact of $0.4 million.     
      
EPS – Adjusted Basis Reconciliation – FY 2022     
EPS – GAAP Basis – FY 2022  $3.16 
Adjustments (defined below)   0.05 
EPS – As Adjusted Basis – FY 2022  $3.21 
      
Adjustments exclude $0.05 per share consisting of Altanova & Neco acquisition inventory step-up charges, severance charges at VACCO and NRG, Corporate acquisition costs and management transition costs.     
The $0.05 of EPS adjustments per share consists of $1.7 million of pre-tax charges offset by $0.4 million of tax benefit for net impact of $1.3 million     
      
EPS – Adjusted Basis Reconciliation – Q4 2021     
EPS GAAP Basis – Q4 2021  $0.78 
Adjustments (defined below)   0.07 
EPS – As Adjusted Basis – Q4 2021  $0.85 
      
Adjustments exclude $0.07 per share consisting of purchase accounting adjustments, acquisition costs at Corporate, and restructuring costs primarily within the USG segment.     
The $0.07 of EPS adjustments per share consists of $2.3 million of pre-tax charges offset by $0.5 million of tax benefit for net impact of $1.8 million.     
      
EPS – Adjusted Basis Reconciliation – FY 2021     
EPS – GAAP Basis – FY 2021  $2.42 
Adjustments (defined below)   0.17 
EPS – As Adjusted Basis – FY 2021  $2.59 
      
Adjustments exclude $0.17 per share consisting of management transition and acquisition costs, restructuring costs primarily within the USG segment, and purchase accounting adjustments partially offset by the settlement from sale of Doble Watertown facility.     
The $0.17 of EPS adjustments per share consists of $6.0 million of pre-tax charges offset by $1.4 million of tax benefit for net impact of $4.6 million.