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UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

 

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): May 9, 2024

 

ESCO TECHNOLOGIES INC.

 (Exact Name of Registrant as Specified in Charter)

 

Missouri 1-10596 43-1554045
(State or Other (Commission (I.R.S. Employer
Jurisdiction of Incorporation) File Number) Identification No.)

 

9900A Clayton Road, St. Louis, Missouri 63124-1186
(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code: 314-213-7200

 

Securities registered pursuant to section 12(b) of the Act:

 

        Name of each exchange
Title of each class   Trading Symbol(s)   on which registered
Common Stock, par value $0.01 per share   ESE   New York Stock Exchange

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨   Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b))

 

¨   Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.113d-4 (c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).            Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

  

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

Today, May 9, 2024, the Registrant is issuing a press release (furnished as Exhibit 99.1 to this report) announcing its fiscal 2024 second quarter financial and operating results. See Item 7.01, Regulation FD Disclosure, below.

 

 

Item 7.01 Regulation FD Disclosure

 

Today, May 9, 2024, the Registrant is issuing a press release (furnished as Exhibit 99.1 to this report) announcing its fiscal 2024 second quarter financial and operating results. The press release will be posted on the Registrant’s investor website (https://investor.escotechnologies.com), although the Registrant reserves the right to discontinue that availability at any time.

 

The Registrant will conduct a related webcast conference call today at 4:00 p.m. Central Time. The conference call webcast will be available on the Registrant’s investor website (https://investor.escotechnologies.com). A slide presentation will be utilized during the call and will be posted on the website prior to the call. For those unable to participate, a webcast replay will be available after the call on the website, although the Registrant reserves the right to discontinue that availability at any time.

 

Item 9.01 Financial Statements and Exhibits

 

  (d) Exhibits

 

  Exhibit No. Description of Exhibit
  99.1 Press Release dated May 9, 2024
  104 Cover Page Inline Interactive Data File

 

Other Matters

 

The information in this report furnished pursuant to Item 2.02 and Item 7.01, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (“Exchange Act”) or otherwise subject to the liabilities of that section, unless the Registrant incorporates it by reference into a filing under the Securities Act of 1933 as amended or the Exchange Act.

 

Any references to the Registrant’s website address in this Form 8-K and the press release are included only as inactive textual references, and the Registrant does not intend them to be active links to its website. Information contained on the Registrant’s website does not constitute part of this Form 8-K or the press release.

 

 

 

 

SIGNATURE

 

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 hereunto duly authorized.

 

Date: May 9, 2024  
   
  ESCO TECHNOLOGIES INC.
   
  By: /s/Christopher L. Tucker
    Christopher L. Tucker
    Senior Vice President and Chief Financial Officer

 

 

 

Exhibit 99.1

 

NEWS FROM  

 

For more information contact:

Kate Lowrey - VP of Investor Relations

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

 

ESCO REPORTS SECOND QUARTER FISCAL 2024 RESULTS

 

- Q2 Sales increase 9% to $249 Million -

- Q2 GAAP EPS increases 30% to $0.90 -

- Q2 Adjusted EPS increases 24% to $0.94 -

 

ST. LOUIS, May 9, 2024 – ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter ended March 31, 2024 (Q2 2024).

 

Operating Highlights

 

Q2 2024 Sales increased $20.0 million (9 percent) to $249.1 million compared to $229.1 million in Q2 2023. Q2 organic sales increased $17.8 million (8 percent) and the MPE acquisition contributed $2.2 million (1 percent) of revenue in the quarter.

Q2 2024 GAAP EPS increased 30 percent to $0.90 per share compared to $0.69 per share in Q2 2023. Q2 2024 Adjusted EPS increased 24 percent to $0.94 per share compared to $0.76 per share in Q2 2023.

Q2 2024 Entered Orders decreased $12.5 million (5 percent) compared to the prior year period to $239.1 million (book-to-bill of 0.96x), resulting in ending backlog of $838 million.

Net cash provided by operating activities was $19 million YTD, an increase of $25 million compared to the prior year period, as cash flow was positively impacted by lower accounts receivable balances and higher earnings.

Net debt (total borrowings less cash on hand) was $132 million, resulting in a 0.86x leverage ratio and $553 million in liquidity as of March 31, 2024.

 

Bryan Sayler, Chief Executive Officer and President, commented, “Q2 was a solid quarter highlighted by both top and bottom-line growth. Revenue grew 9 percent as we continue to see favorable dynamics in our key aerospace, Navy and utility end markets. The sales performance translated to the bottom line very well as Adjusted EPS increased 24 percent compared to the prior year quarter.”

 

 

 

 

Segment Performance

 

Aerospace & Defense (A&D)

 

Sales increased $15.7 million (16 percent) to $114.7 million in Q2 2024 from $99.0 million in Q2 2023. Sales growth was driven by strength across Navy, commercial aerospace, and defense aerospace programs.

Q2 2024 EBIT increased $4.6 million to $23.4 million from $18.8 million in Q2 2023. Adjusted EBIT increased $4.0 million in Q2 2024 to $23.6 million (20.6 percent margin) from $19.6 million (19.8 percent margin) in Q2 2023. Margin improvement was driven by leverage on revenue growth and price increases, partially offset by inflationary pressures and mix.

Entered Orders increased $4 million (4 percent) to $116 million in Q2 2024 compared to $112 million in Q2 2023. The increase in orders was primarily driven by strength in OEM and aftermarket orders for both commercial and defense aerospace. The orders in the quarter resulted in a segment book-to-bill of 1.01x and ending backlog of $562 million.

 

Utility Solutions Group (USG)

 

Sales increased $8.1 million (10 percent) to $87.3 million in Q2 2024 from $79.2 million in Q2 2023. Doble’s sales increased by $6.3 million (10 percent) driven by a strong quarter for services and cybersecurity/compliance (DUCe) solutions. NRG sales increased $1.8 million (13 percent) driven by higher demand for solar products.

EBIT increased $3.5 million (25 percent) in Q2 2024 to $17.6 million (20.1 percent margin) from $14.1 million (17.8 percent margin) in Q2 2023. There were no adjustments in either period. Margin improvement was driven by mix from increased service business, leverage on revenue growth, and price increases, partially offset by inflationary pressures.

Entered Orders decreased $6 million (7 percent) to $79 million in Q2 2024. Orders were down slightly at Doble and continued to moderate at NRG. NRG’S orders were extremely strong in FY’23 driven by a unique surge related to large orders at extended lead-times as customers managed supply chain concerns and order activity related to Inflation Reduction Act spending. We expect orders for the renewables business to rebound as the market digests last year’s elevated activity level and new projects are defined and implemented. The segment book-to-bill was 0.91x in the quarter, resulting in ending backlog of $119 million.

 

 

 

 

RF Test & Measurement (Test)

 

Sales decreased $3.9 million (8 percent) to $47.1 million in Q2 2024 from $51.0 million in Q2 2023. Organic sales decreased $6.1 million primarily related to lower wireless, filters and acoustic volume, partially offset by $2.2 million of revenue related to the MPE acquisition which was completed in Q1 2024.
 In line with our prior communication, our Test Segment’s revenue continued to be somewhat soft in Q2. While sales were down compared to the prior year, they increased 16 percent sequentially.

EBIT decreased $1.7 million in Q2 2024 to $5.5 million from $7.2 million in Q2 2023. Adjusted EBIT decreased $1.5 million in Q2 2024 to $5.7 million (12.2 percent margin) from $7.2 million (14.2 percent margin) in Q2 2023. Margin was impacted by lower volume and inflationary pressures, largely mitigated by price increases and cost reduction actions.

Entered Orders decreased $11 million (21 percent) to $44 million in Q2 2024. The decrease was primarily related to lower wireless demand and delays on a few large projects, partially offset by higher OTC filter, MPE, and services orders. The segment book-to-bill was 0.93x in the quarter, resulting in ending backlog of $156 million.

 

Share Repurchase Program

 

During Q2 2024, the Company repurchased approximately 72,000 shares for $7.2 million.

 

Dividend Payment

 

The next quarterly cash dividend of $0.08 per share will be paid on July 19, 2024 to stockholders of record on July 3, 2024.

 

Business Outlook – 2024

 

Year-to-date performance has tracked to expectations and full year adjusted earnings per share guidance is being maintained in the range of $4.15 to $4.30 (12 to 16 percent growth). This represents ESCO’s third year in a row of double-digit earnings growth. This outlook is based on sales in line with our initial guidance range of $1.02 to $1.04 billion (7 to 9 percent annual growth). Management’s expectation is for Q3 Adjusted EPS in the range of $1.16 to $1.22.

 

Conference Call

 

The Company will host a conference call today, May 9, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2024 results. A live audio webcast and an accompanying slide presentation will be available on ESCO’s investor website. 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 Management’s intentions, expectations and guidance for fiscal 2024, including restructuring and cost reduction efforts, sales, orders, revenues, margin, earnings, Adjusted EPS, 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, 2023 and the following: the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely 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 or data breaches; the availability of selected acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment 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 and performance 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 Financial 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 an industry leader in designing and manufacturing RF test and measurement products and systems; 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
March 31,
2024
   Three
Months
Ended
March 31,
2023
 
Net Sales  $249,129    229,136 
Cost and Expenses:          
Cost of sales   152,347    142,296 
Selling, general and administrative expenses   55,097    53,877 
Amortization of intangible assets   8,572    7,030 
Interest expense   3,226    2,269 
Other expenses (income), net   666    314 
Total costs and expenses   219,908    205,786 
           
Earnings before income taxes   29,221    23,350 
Income tax expense   6,002    5,472 
           
Net earnings  $23,219    17,878 
           
Earnings Per Share (EPS)          
           
Diluted - GAAP  $0.90    0.69 
           
Diluted - As Adjusted Basis  $0.94(1)   0.76(2)
           
Diluted average common shares O/S:   25,847    25,895 

 

  (1) Q2 2024 Adjusted EPS excludes $0.04 per share of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges and $0.02 of restructuring charges (primarily severance) within the Test and A&D segments.
     
  (2) Q2 2023 Adjusted EPS excludes $0.07 per share of after-tax charges consisting of: $0.04 of executive management transition costs at Corporate, $0.02 of CMT acquisition inventory step-up charges and $0.01 of restructuring charges within the A&D segment.

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

 (Dollars in thousands, except per share amounts)  

 

   Six Months
Ended
March 31,
2024
   Six Months
Ended
March 31,
2023
 
Net Sales  $467,443    434,637 
Cost and Expenses:          
Cost of sales   286,498    268,679 
Selling, general and administrative expenses   109,065    105,179 
Amortization of intangible assets   16,440    13,891 
Interest expense   5,893    3,927 
Other expenses (income), net   872    712 
Total costs and expenses   418,768    392,388 
           
Earnings before income taxes   48,675    42,249 
Income tax expense   10,287    9,644 
           
Net earnings  $38,388    32,605 
           
Earnings Per Share (EPS)          
           
Diluted - GAAP  $1.49    1.26 
           
Diluted - As Adjusted Basis  $1.56(1)   1.36(2)
           
Diluted average common shares O/S:   25,846    25,919 

 

  (1) YTD Q2 2024 Adjusted EPS excludes $0.07 per share of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs and $0.02 of restructuring charges (primarily severance) within the Test and A&D segments.
     
  (2) YTD Q2 2023 Adjusted EPS excludes $0.10 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 and $0.02 of restructuring charges within the A&D segment.

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Business Segment Information (Unaudited)

(Dollars in thousands)

 

   GAAP   As Adjusted 
    Q2 2024    Q2 2023    Q2 2024    Q2 2023 
Net  Sales                    
Aerospace & Defense  $114,701    98,982    114,701    98,982 
USG   87,309    79,161    87,309    79,161 
Test   47,119    50,993    47,119    50,993 
Totals  $249,129    229,136    249,129    229,136 
                     
EBIT                    
Aerospace & Defense  $23,377    18,795    23,640    19,595 
USG   17,575    14,061    17,575    14,061 
Test   5,542    7,226    5,745    7,226 
Corporate   (14,047)   (14,463)   (13,262)   (12,963)
Consolidated EBIT   32,447    25,619    33,698    27,919 
Less: Interest expense   (3,226)   (2,269)   (3,226)   (2,269)
Less: Income tax expense   (6,002)   (5,472)   (6,290)   (6,001)
Net earnings  $23,219    17,878    24,182    19,649 

 

Note 1: Adjusted net earnings of $24.2 million in Q2 2024 exclude $0.04 per share of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges and $0.02 of restructuring charges (primarily severance) within the Test and A&D segments.

 

Note 2: Adjusted net earnings of $19.6 million in Q2 2023 exclude $0.07 per share of after-tax charges consisting of: $0.04 of executive management transition costs at Corporate, $0.02 of CMT acquisition inventory step-up charges and $0.01 of restructuring charges within the A&D segment.

 

EBITDA Reconciliation to Net earnings:          Q2 2024 -   Q2 2023 - 
   Q2 2024   Q2 2023   As Adjusted   As Adjusted 
Consolidated EBITDA  $46,550    38,162    47,174    40,462 
Less: Depr & Amort   (14,103)   (12,543)   (13,476)   (12,543)
Consolidated EBIT   32,447    25,619    33,698    27,919 
Less: Interest expense   (3,226)   (2,269)   (3,226)   (2,269)
Less: Income tax expense   (6,002)   (5,472)   (6,290)   (6,001)
Net earnings  $23,219    17,878    24,182    19,649 

 

 

 

 

 ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Business Segment Information (Unaudited)

(Dollars in thousands)

 

   GAAP   As Adjusted 
   YTD   YTD   YTD   YTD 
   Q2 2024   Q2 2023   Q2 2024   Q2 2023 
Net  Sales                    
Aerospace & Defense  $209,434    181,965    209,434    181,965 
USG   170,293    150,206    170,293    150,206 
Test   87,716    102,466    87,716    102,466 
Totals  $467,443    434,637    467,443    434,637 
                     
EBIT                    
Aerospace & Defense  $40,040    31,331    40,303    32,330 
USG   35,200    30,192    35,320    30,192 
Test   7,321    12,637    7,797    12,637 
Corporate   (27,993)   (27,984)   (26,557)   (25,691)
Consolidated EBIT   54,568    46,176    56,863    49,468 
Less: Interest expense   (5,893)   (3,927)   (5,893)   (3,927)
Less: Income tax expense   (10,287)   (9,644)   (10,815)   (10,401)
Net earnings  $38,388    32,605    40,155    35,140 

 

Note 1: Adjusted net earnings of $40.2 million in YTD 2024 exclude $0.07 per share of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs and $0.02 of restructuring costs (primarily severance) within the Test and A&D segments.

 

Note 2: Adjusted net earnings of $35.1 million in YTD 2023 exclude $0.10 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 and $0.02 of restructuring charges within the A&D segment.

 

EBITDA Reconciliation to Net earnings:          YTD   YTD 
   YTD   YTD   Q2 2024 -   Q2 2023 - 
   Q2 2024   Q2 2023   As Adj   As Adj 
Consolidated EBITDA  $82,123    71,086    83,582    74,378 
Less: Depr & Amort   (27,555)   (24,910)   (26,719)   (24,910)
Consolidated EBIT   54,568    46,176    56,863    49,468 
Less: Interest expense   (5,893)   (3,927)   (5,893)   (3,927)
Less: Income tax expense   (10,287)   (9,644)   (10,815)   (10,401)
Net earnings  $38,388    32,605    40,155    35,140 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

 

   March 31,
2024
   September 30,
2023
 
Assets          
Cash and cash equivalents  $59,436    41,866 
Accounts receivable, net   187,535    198,557 
Contract assets   139,303    138,633 
Inventories   211,338    184,067 
Other current assets   24,310    17,972 
Total current assets   621,922    581,095 
Property, plant and equipment, net   161,811    155,484 
Intangible assets, net   414,872    392,124 
Goodwill   535,661    503,177 
Operating lease assets   38,322    39,839 
Other assets   11,603    11,495 
   $1,784,191    1,683,214 
           
Liabilities and Shareholders' Equity          
Current maturities of long-term debt  $20,000    20,000 
Accounts payable   81,961    86,973 
Contract liabilities   107,357    112,277 
Other current liabilities   79,612    95,401 
Total current liabilities   288,930    314,651 
Deferred tax liabilities   80,648    75,531 
Non-current operating lease liabilities   35,444    36,554 
Other liabilities   41,759    43,336 
Long-term debt   171,000    82,000 
Shareholders' equity   1,166,410    1,131,142 
   $1,784,191    1,683,214 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

 

   Six Months
Ended
March 31, 2024
   Six Months
Ended
March 31, 2023
 
Cash flows from operating activities:          
Net earnings  $38,388    32,605 
Adjustments to reconcile net earnings to net cash          
provided (used) by operating activities:          
Depreciation and amortization   27,555    24,910 
Stock compensation expense   4,144    5,309 
Changes in assets and liabilities   (47,869)   (67,140)
Effect of deferred taxes   (2,981)   (1,145)
Net cash provided (used) by operating activities   19,237    (5,461)
           
Cash flows from investing activities:          
Acquisition of business, net of cash acquired   (56,179)   (17,901)
Capital expenditures   (16,301)   (10,305)
Additions to capitalized software   (5,912)   (5,918)
Net cash used by investing activities   (78,392)   (34,124)
           
Cash flows from financing activities:          
Proceeds from long-term debt   154,000    68,000 
Principal payments on long-term debt and short-term borrowings   (65,000)   (60,000)
Dividends paid   (4,125)   (4,128)
Purchases of common stock into treasury   (7,189)   (12,217)
Other   (1,432)   (2,374)
Net cash provided (used) by financing activities   76,254    (10,719)
           
Effect of exchange rate changes on cash and cash equivalents   471    801 
           
Net increase (decrease) in cash and cash equivalents   17,570    (49,503)
Cash and cash equivalents, beginning of period   41,866    97,724 
Cash and cash equivalents, end of period  $59,436    48,221 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Other Selected Financial Data (Unaudited)

(Dollars in thousands)

 

Backlog And Entered Orders - Q2 2024  A&D   USG   Test   Total 
Beginning Backlog - 1/1/24  $560,893    127,439    159,436    847,768 
Entered Orders   116,110    79,025    43,937    239,072 
Sales   (114,701)   (87,309)   (47,119)   (249,129)
Ending Backlog - 3/31/24  $562,302    119,155    156,254    837,711 

 

Backlog And Entered Orders - YTD Q2 2024  A&D   USG   Test   Total 
Beginning Backlog - 10/1/23  $484,069    133,459    154,834    772,362 
Entered Orders   287,667    155,989    89,136    532,792 
Sales   (209,434)   (170,293)   (87,716)   (467,443)
Ending Backlog - 3/31/24  $562,302    119,155    156,254    837,711 

 

 

 

 

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (Unaudited)

 

EPS – Adjusted Basis Reconciliation – Q2 2024     
EPS – GAAP Basis – Q2 2024  $0.90 
Adjustments (defined below)   0.04 
EPS – As Adjusted Basis – Q2 2024  $0.94 
      
Adjustments exclude $0.04 per share consisting of: $0.02 of MPE acquisition backlog charges and $0.02 of restructuring charges (primarily severance) within the Test and A&D segments in the second quarter of 2024.     
The $0.04 of EPS adjustments per share consists of $1,251K of pre-tax charges offset by $288K of tax benefit for net impact of $963K.     
      
EPS – Adjusted Basis Reconciliation – Q2 2023     
EPS – GAAP Basis – Q2 2023  $0.69 
Adjustments (defined below)   0.07 
EPS – As Adjusted Basis – Q2 2023  $0.76 
      
Adjustments exclude $0.07 per share consisting of executive management transition costs at Corporate, CMT acquisition inventory step-up charges and restructuring charges within the A&D segment in the second quarter of 2023.     
The $0.07 of EPS adjustments per share consists of $2,300K of pre-tax charges offset by $529K of tax benefit for net impact of $1,771K.     
      
EPS – Adjusted Basis Reconciliation – YTD Q2 2024     
EPS – GAAP Basis – YTD Q2 2024  $1.49 
Adjustments (defined below)   0.07 
EPS – As Adjusted Basis – YTD Q2 2024  $1.56 
      
Adjustments exclude $0.07 per share consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs, and $0.02 of restructuring charges (primarily severance) within the Test and A&D segments in the first six months of 2024.     
The $0.07 of EPS adjustments per share consists of $2,295K of pre-tax charges offset by $528K of tax benefit for net impact of $1,767K.     
      
EPS – Adjusted Basis Reconciliation – YTD Q2 2023     
EPS – GAAP Basis – YTD Q2 2023  $1.26 
Adjustments (defined below)   0.10 
EPS – As Adjusted Basis – YTD Q2 2023  $1.36 
      
Adjustments exclude $0.10 per share consisting of executive management transition costs at Corporate, CMT acquisition inventory step-up charges and restructuring charges within the A&D segment in the first six months of 2023.     
The $0.10 of EPS adjustments per share consists of $3,292K of pre-tax charges offset by $757K of tax benefit for net impact of $2,535K.